Though I hate to be timely with all the news about RXBar, let’s talk about nut butters.
The simple and portable snack pack is an easy way to snack on the go.
We have three products that showcase single serve nut butters in 3 different ways. Probably the leader of this category is Justin’s, which focuses on being simple. One could say they were one of the pioneers in the clean label movement.
With Justin’s being so popular, it makes sense that other companies are to follow, but what unique twist can they use to get into the market? Barney’s is another popular butter and uses background color as its main differentiator from Justin’s. Barney’s also showcases their certifications such as Kosher and Sustainability, which might attract a certain type of shopper.
Recent player RXBar comes in with a more value-added approach to their nut butters. It’s been about 9 months since RXBar unveiled their nut butter sku and I honestly don’t hear much about it. The bars are still front and center when it comes to the company’s brand. Perhaps this might be a small reason on why the layoffs have happened, but who knows?
Single serving products will keep on rising in popularity, but how many players in the nut butter category can there be? Right now, the differentiation is easy to spot, but at what point does it become a brand battle?
Fierce competition for something as simple as nut butter is inevitable, but that’s ok. You probably have a favorite cookie brand or a favorite bread brand, or maybe you buy products that are gluten-free, or have more protein or are more sustainable. Heck, some people are devoted to a specific taste, like a crunchy cookie or just a very delicious one. I myself are partial to Chips Ahoy cookies. Brands find ways to give value to their customers as long as they align with the people they serve.
Here’s Carrie’s thoughts
RXBAR just announced the May launch of its new peanut & almond butter line… but is there enough room in the ever-crowding nut butter category? The leading brands are right on trend with their ingredients and messaging – and, as of now, there’s just enough differentiation for each to thrive. But what will happen as new entrants begin to overlap with and confuse these identities? Will consumers still be able to pick up on differences? Ultimately, as in any crowded category, demand will consolidate and focus the market. Who will rise as winners – and who will be pushed out?
