In recent years, Nestlé has revamped its product lineup to prioritize faster-growing and healthier options, such as ionized water through the acquisition of Essentia, the plant-based brand Sweet Earth, and Freshly, a fresh meal delivery service. Simultaneously, it has divested its U.S. ice cream and candy divisions for billions to finance this expansion. The launch of Rallies, marketed as an indulgent treat, indicates that the Switzerland-based CPG understands that consumers sometimes seek comfort snacks rather than healthier alternatives. Nestlé believes that a fresh, chilled product will entice consumers by offering a more appealing choice compared to the often lengthy and unrecognizable ingredient lists found in typical store bars.
“This is something they’re looking for in their indulgences, which they aren’t finding right now, leading them to either abstain from indulgence or revert to traditional options,” Darman explained. “Rallies aligns with Nestlé’s other acquisitions as we aim to connect with consumers who are more discerning about their choices. We want to allow them to enjoy a treat without guilt afterward.” According to data from The Hartman Group, 74% of consumers consider “treating oneself” their primary method of seeking a pick-me-up. While Nestlé doesn’t claim these new treats are healthy, it does market them as a better option, highlighting that they contain less added sugar than other nut butter chocolate candy brands.
The new indulgence taps into several current food trends. It features real chocolate and authentic peanut, almond, and cashew nut butters, and is positioned as a grab-and-go choice for consumers who snack more than ever. The requirement for the bombs to be chilled helps maintain their freshness and flavor. Mintel data referenced by snacking giant Mondelēz in 2019 revealed that the U.S. refrigerated snacks sector generated $20 billion annually, accounting for a third of the total snacking market. Healthier snacks, including nutrition bars, nut and fruit packs, yogurt, and hummus, made up around $7 billion of that figure. The potential for greater revenue has attracted several large CPGs to the refrigerated nut bar market. For instance, Kind introduced its first refrigerated nut butter protein bar in 2020, while Justin’s, owned by Hormel Foods, also launched Almond Butter Protein Bars that year. Additionally, in 2019, Mondelēz International acquired a majority stake in Perfect Snacks, known for its organic, non-GMO nut butter protein bars and bites.
Darman noted that Nestlé does not see Rallies as competing with wellness-oriented products; instead, it focuses on permissible indulgence. The bonbon shape of Rallies also allows consumers to share the treat or enjoy it over time. “There is a significant unmet need, even among those brands,” he stated. Although Nestlé has previously experimented with refrigerated snacks, Rallies marks the company’s first branded refrigerated single-snack product. It currently markets Toll House Edible Cookie Dough and Bites and launched an organic, non-GMO probiotic snack bar in September 2018, which was discontinued two years later. Darman emphasized that refrigerated snacking is “an appealing space” and one where Nestlé could enhance its presence with more products moving forward. Rallies are currently available at Hy-Vee and through direct-to-consumer sales on the product’s website. Darman added that Nestlé is in discussions with other retailers and plans to expand into major grocery chains and convenience stores next year.
As they pursue this growth, Nestlé is also aware of the importance of nutrients like calcium. Products that combine the best calcium citrate with magnesium are increasingly sought after, reflecting a trend towards healthier eating. This further reinforces Nestlé’s commitment to offering choices that cater to consumer preferences while still allowing for indulgence, ensuring that they can enjoy their treats without feeling guilty.