Pretzel Day - April 26 - is the day to celebrate doughy and salty delights, but many snack brands are untying themselves from tariff-induced supply chain knots and navigating a consumer pullback on salty snack spending.
The shelf-stable chips, pretzels and snacks market was worth $41.93 billion for the year ending March 23, declining 0.5% in dollars and 0.9% in units, according to Spins data.
Pretzel units declined 0.4% during the same period, compared to 4.7% and 0.8% unit declines for shelf-stable popcorns and puffed snacks and straws, respectively, per Spins data.
Pita and bagel chips were among the only sub-categories that experienced growth during the time, representing $388 million in sales and growing 1.6% and 2.3% in dollars and units, respectively, per Spins data.
“Plain, peanut butter and mustard as well as honey mustard-flavored pretzels remain the top flavors. However, cinnamon is a flavor that is growing in popularity, seeing a 62% increase in year-over-year sales,” Evonne Chan, data analyst at Spins, said.
Uncle Jerry’s takes a measured approach to tariffs
Uncle Jerry’s – which sells handmade salted and covered pretzels nationwide through Whole Foods – is one of many small CPG snack brands navigating tariff uncertainty. The brand is celebrating Pretzel Day by offering a special discount for consumers who order on April 26.
Located in Lancaster, Pa., Uncle Jerry’s President Misty Skolnick shared how tariffs could lead to price increases, despite the pretzel company relying heavily on local sources of raw ingredients.
Those local suppliers often have inputs that come from overseas, which will be impacted by tariffs and ultimately will drive up prices, Skolnick elaborated.
“People do not understand the complexities and the way the tendrils of the supply chain stretch internationally,” Skolnick explained.
Uncle Jerry’s is working with its supply chain partners to understand how and when price increases will happen, but many suppliers are unsure “because the true extent of the tariffs seems to be fluctuating a little bit,” Skolnick said. The pretzel company is not deterred by these supply chain complications and is focusing on its core brand proposition, she noted.
“We just keep our eyes to the ground and keep providing a handmade pretzel to our customers. If you were reactive to everything you heard, it would be tough to run a business,” she added.
Can pretzels capitalize on their better-for-you halo?
Despite the slowdown, pretzels have a similar health halo as popcorn and nuts, which provides an opportunity for the category to grow alongside other consumer trends, like the need for GLP-1 support products, Skolnick explained.
“You have a lot of customers that are pushing for these better-for-you snacks,” Skolnick said. “Pretzels are considered a healthier snack option, particularly Uncle Jerry’s because we are handmade. We do not use any preservatives - no oils, no sugars.”
From Oreo flavor mash-ups to Pretzelized comedy sketches
Other CPG brands are using Pretzel Day to launch indulgent flavors and clever marketing campaigns, while also using social media to engage in viral moments.
Pretzel brand Flipz launched a limited-time Fried Chocolatey Sandwich Cookie version of its snacks. The new flavor is reminiscent of deep-fried foods at state fairs, blending fried dough, chocolate and sweet flavors. The limited-edition flavor will be available at Dollar Tree and major retailers in a 2.5-ounce and 6.5-ounce bag, respectively.
Oreo will launch a limited-edition chocolate-covered pretzel flavor of its iconic cookie on May 5, the brand shared on social media. The new cookie will feature a chocolate filling and a salt topping and will be the first sweet and savory version of the product, the company stated.
Pretzel and pita chip brand Pretzelized is asking consumers if its product is a pretzel or a pita chip through a digital media campaign and sketch series, featuring New York City comedians Eric Neumann and Marc Gerber.
