Product Autopsy: Snackwell Cookies (1992 - 2022)
As some of us may recall, the 1990’s was the age of the ‘Fat Free’ everything! Fat in any form was the enemy. We know now that some fat is good for us, trans fats have been banned, and we can also enjoy some saturated fat in moderation. This led to a lot of brands offering “healthier” fat-free versions of products that were already successful, as well as brands entering the market focused on this fat-free trend.
In retrospect, this may have contributed to the obesity epidemic we are dealing with today, as these products were all high in carbohydrates and sugar - which was not a marketed concern back then. With this climate, cookies like the Snackwells had a chokehold on Americans.
Discontinued in 2022, we are going to perform an autopsy on the Snackwell Cookies to both reflect on why they were successful and what led to their demise.
Initial Success
The Snackwell Cookie was marketed as a healthy cookie, fitting the fat free trend of the 1990s. With fat being demonized as the root of poor health and beauty standards pushing being as thin as possible - this was a perfect storm for sweet treats that could offer you delicious flavor and decadence without the fat. Having a “diet” cookie also meant people would devour many in a sitting, since you know..they were healthy.
And this high level of consumption was apparent by looking at their sales in the mid-nineties. Nabisco was seeing great success, with Snackwells bringing in $490 million in 1995. This led to a new term - “The Snackwell Effect.” This is when dieters would eat more than a reasonable serving of cookies if they were ‘diet’ cookies vs. if they were the typical full fat cookies.
Arguably this was some great marketing and innovation that was perfectly matched to the market trends. Even if this trend had negative effects on health in the long-term, we have to acknowledge this is a great example of a product development success.
The Turning Point
As the low-fat trend waned, Snackwell faced challenges in adapting to changing consumer preferences. Research was coming out that suggested that not all fat was the enemy and consumers wanted products with health benefits outside the elimination of just fat and calories. The initial allure of guilt-free indulgence was no longer enough to sustain the brand's momentum.
Recipe Controversy and Increasing Competition
In an attempt to stay relevant with the changing trends and try to address complaints about flavor, the Snackwells formula was updated in 2019. They added fat into the recipe, which alienated any consumer base they still had. They also didn’t add much to attract a new customer base.
In retrospect, it looks like they decided to make changes without understanding who their customer base was and what new customers they could attract away from the stiff competition. Knowing your audience before you make changes to your products is detrimental. While the trends are changing, that doesn’t mean the main audience you serve CARES about those new trends. An example of this would be why the most popular Pizza Rolls are not suddenly being updated to be clean label and organic. Their consumer base doesn’t seek to eat those for health reasons. While you could assume the Snackwell consumer cares about health, you have to consider whether it's actually about health benefits or the perception of health benefits.
By the time the formula was being updated in 2019, there were also many more brands on the market and the definition of healthy had been evolving for years. As consumer preferences shifted towards cleaner ingredients and authentic flavors, Snackwell faced a dilemma. Should the brand stick to its nostalgic roots, attempting to recapture the magic that once defined its success, or should it embrace innovation and adapt to the evolving market? Unfortunately, Snackwell struggled to find a balance, ultimately falling behind the curve. Hard to capture an audience with nostalgia that just didn’t taste good or offer benefits this new audience cared about.
Autopsy Results
The demise of Snackwell Cookies serves as a cautionary tale for product developers and marketers. Sustainable success in the health food industry requires not only an understanding of current trends but also an ability to adapt and innovate as the consumer's expectations and demands change. Nostalgia alone does not sustain a product over the long term - competition will always come along and do something better. As we bid farewell to Snackwell Cookies, let us reflect on the importance of staying attuned to the ever-changing tastes and preferences of the modern consumer and never make assumptions about your audience.
Prevent your brand and products from becoming a distant memory - book a free consultation with us today to see how we can optimize your product development and marketing for a sustainable future!
