Since its inception nearly two decades ago, Kind has established itself as a frontrunner in the snack bar industry. Acquired by Mars in 2020 for an estimated $5 billion, the brand has quickly expanded beyond its original bar offerings to become a more comprehensive snacking company. Since early 2020, Kind, which emphasizes plant-based, nutrient-rich ingredients in its products, has diversified into refrigerated items, chocolates, soft granola, cereal bars, and frozen bars. According to the latest data from the company, sales reached approximately $1.7 billion in 2021. However, like many others in the food and beverage sector, Kind has faced challenges from inflation and supply chain issues. Currently, the brand is present in about 20% of American households. Food Dive recently interviewed Kind CEO Russell Stokes regarding the brand’s performance, future category expansions, and shifts in consumer purchasing behavior. The following is an edited version of that conversation.
FOOD DIVE: How has the Kind brand performed lately?
RUSSELL STOKES: The past 13 weeks have been the most intense period I’ve experienced in our business. Reflecting at the year’s start, two significant trends are evident among consumers: one is an ongoing narrative, while the other is a new development. The enduring trend is related to health and wellness, which Kind has prioritized since 2004. The new trend, influenced by COVID and inflation, is altering how consumers engage with our products. This overarching health trend continues to drive growth in our categories and shapes our activities.
How have sales been for the Kind brand?
STOKES: I can’t disclose specific financial details, but our scanner data shows that our business was up double digits in 2022, following a similar increase in 2021. For a company of our scale, we estimate our sales to be around a billion dollars, which we view as a healthy growth rate. Importantly, we aim to serve more North American families, aligning with our mission to help people make better choices. We’re focused on expanding our consumer base.
What changes have you observed in shopping behaviors?
STOKES: We’ve noticed a shift in shopping habits—fewer trips to stores, but with larger basket sizes. This trend is partly due to inflation, which has significantly impacted American households. Consumers are now tending to stock up, leading to an increased demand for value packs, such as those containing 20 or more bars. While we continue to adapt to higher input costs, we also aim to maintain accessibility to our products, ensuring we provide smaller pack sizes as entry points for consumers.
Have you been able to increase the distribution of the Kind brand? Is the healthy snacking trend slowing down?
STOKES: We continue to see opportunities for distribution growth. Kind is well-established and available in numerous locations, but there are still areas where we can expand. Healthy snacking is not losing momentum; instead, it’s gaining traction. Our retail partners are enthusiastic about the potential of healthy options to attract shoppers. Despite geographic disparities in brand penetration, we see growth potential, especially in fast-growing regions like the Sun Belt.
Are you considering additional price increases? How do retailers and consumers feel about rising food prices?
STOKES: Many consumers, especially in developed economies, are not accustomed to significant price changes. We aim to enhance brand accessibility and typically strive to manage our operations efficiently to avoid passing on price increases to our retail partners. In the snack bar category, we experienced an overall price increase of around 10% in 2022, while we managed to keep ours at about 8%. Currently, we have no plans for further price hikes, although we continue to face cost pressures.
How has the Kind brand’s entry into the frozen section been received?
STOKES: The frozen bars have been exceptionally successful, boasting a repeat purchase rate that doubles that of other frozen products. We’re focusing on maintaining strong customer relationships and are seeing promising growth. Instead of rushing into new innovations, we are taking a measured approach to ensure the frozen bars continue to perform well.
What does the future hold for the Kind brand? Are there plans to expand into other store categories?
STOKES: We have exciting ideas for new categories and are exploring consumer occasions we might not currently address. It’s crucial to avoid complacency; while we can attract initial trial with the Kind promise, we must ensure our products are superior to alternatives on the shelf for repeat purchases. We are focusing on a few specific categories where we believe we can offer delicious and nutritious options, starting with whole foods like fruits, seeds, and vegetables. Additionally, we plan to engage consumers through unique activations that embody our mission of ‘healthy and tasty.’ For instance, we recently revived our Secret Kind Farmers Market in New York City, offering fresh ingredients like vegetables, nuts, and grains for free, with plans for a similar event in Houston on March 11th.
Incorporating marine derived calcium citrate malate into our product lineup could also enhance our offerings. As we explore new categories, we will look for opportunities to include such innovative ingredients that align with our commitment to nutrition and flavor. With significant growth potential remaining in our core business, we are excited about the future and the possibilities that lie ahead.