Pistachios are a favorite snack for on-the-go, post-workout, or parties/picnics.

The pistachio, originally grown in the Middle East, arrived in Greece under Alexander the Great, and reached Italy and Spain in the first century A.D. Imported into the U.S. in the 1880s, pistachios were cultivated in California, New Mexico and Arizona in the 1970s.

The top growers today are the U.S., Turkey and Iran, according to Scott Fryer, vice president of global marketing for American Pistachio Growers (APG) in Sacramento, CA. A vast majority of U.S. pistachios are grown in California.

The 2023 U.S. pistachio harvest was 1.49 billion pounds, which was two-thirds of the pistachio crop volume worldwide. The 2024 estimated U.S. harvest is 1.1 billion pounds, says Fryer.

PERFECT FOR SNACKING

Pistachios are popular year-round, including for holidays and sporting events.

“One out of three Wonderful Pistachios consumers say they eat pistachios while watching sports, with football being the most popular sport,” says Diana Salsa, vice president of marketing for Wonderful Pistachios in Los Angeles, CA.

Snacks account for 22% of energy intake, and more than 90% of adults consume one to three snacks per day, per the April 2023 issue of Nutrients. Salty snacks posted $31.3 billion in sales, a 6.9% increase over the previous year, according to the SNAC’s 2024 State of the Industry Report.

FLAVOR VARIETIES

Whether in-shell or no-shell, salted or unsalted, pistachios are a favorite snack for on-the-go, post-workout, or parties/picnics. To maximize sales, grocers should carry a variety.

“Pistachios have consistently been a roasted, salted snack nut, but in recent years we’ve seen success with the flavored kernels,” says Elizabeth Keenan, marketing manager of Keenan Farms in Kettleman City, CA. “The three big industry flavors are chile, honey, and salt and vinegar.”

“Pistachios have consistently been a roasted, salted snack nut, but in recent years we’ve seen success with the flavored kernels.”
— Elizabeth Keenan, Keenan Farms, Kettleman City, CA

Spicy chile pistachios go with beer, honey pistachios can top ice cream, and salt and vinegar offer savory crunchiness.

“Our approach of modeling new No Shells flavors after popular chip varieties, such as Sea Salt & Vinegar, Smoky Barbecue, and Sea Salt & Pepper has successfully attracted new consumers,” says Salsa.

Setton Farms launched a collaboration with Tajín, a spice with sour, sweet, salt and heat tastes.

“The unique combination of chile peppers, lime, and sea salt blends perfectly with the delicious taste and high-nutrient value of our family’s premium California-grown pistachios,” says Joseph Setton, executive vice president of Setton Farms in Commack, NY. The new variety joins their line of award-winning kernels, which includes Buffalo Wing and Garlic Onion.

Why the fancy flavors?

“Consumers are trying to eat healthier, while also looking for indulgent snacks,” says Christine Trageser, senior brand manager for Nichols Farms in Hanford, CA. The company boasts four new organic flavors: Rosemary Garlic, Habanero Lime, Hot Honey and Maple Butter.

MARKETING TECHNIQUES

Pistachio marketing efforts often focus on nutritional benefits. With 6 grams of protein in a 1-ounce serving, pistachios are a healthy choice.

“They are heart-friendly, a good source of fiber, and a complete protein because they contain all nine amino acids. They are also loaded with antioxidants, equivalent to those in red wine or pomegranates,” says Fryer of APG.

Pistachios can be marketed as a shelf-stable, nutrient-dense superfood. “Setton Farms is leveraging the extraordinary reach of social media to drive home this message,” says Setton.

Nichols Farms likes to promote its small batch flavoring — it doesn’t use oils in the nut roasting process. “We reached out to influencers to share how great our pistachios are in terms of flavor and quality,” says Trageser.

Wonderful Company uses “a 360-degree marketing approach,” and touts the benefits of their pistachios via TV, print ads, sponsor events and social media campaigns.

Another marketing technique focuses on eye-catching color.

“Our Keenan Farms pistachio bags are yellow — a sunshine yellow like the California sun. The color has been near and dear to our hearts for 50 years,” says Keenan. Her artist grandmother favored yellow packaging after noticing it stood out in the produce department’s sea of greens, browns and reds.

The newest pistachio packaging includes resealable bags, recycled materials and sustainable materials.

“We are looking into how we can reduce the amount of plastic in our packaging. All of our pallets use a thinner rack, so we’ve reduced our plastic there,” says Trageser.

“We have zipper pouches to keep pistachios fresh. Pistachios are hygroscopic — if you leave them out, they will absorb water. So, it is best to use a resealable package,” says Keenan.

REGIONAL AND DEMOGRAPHIC PREFERENCES

Demographic demand for pistachios can vary. Nichols Farms says a Millennial may want a family-size pack, whereas a young athlete may seek high protein in a convenience size. Setton Farms says there is an overall shift toward No-Shell pistachio sales.

Regional snacking preferences have emerged. Keenan Farms says when kernels first came out, the Northeast loved salt and vinegar, while California preferred chiles.

“In-shell is still king, but flavor snacking has grown everywhere. Southern states like Florida and Alabama are starting to pick up on pistachios where it has consistently been peanuts and chips,” says Keenan.

APG says pistachios are accepted by the general population, but since they’re a higher-priced snack, they may be underrepresented in the lower-income demographic. However, all supermarkets carry pistachios (even if private label only).

BOOSTING SALES

Pistachios sell well when located at the entrance to the produce department. The goal is to encourage impulse buys and gain repeat purchases.

“If pistachios are merchandised alongside fresh vegetables and fruits, people will notice them and at least pick up the package. Also, we have a kraft paper that gives it an earthy feel,” says Trageser of Nichols Farms.

“As the primary usage is snacking, a great pairing can be fresh and dried fruits, which is one of the reasons you can often find Wonderful Pistachios in or near the produce section,” says Salsa.
Innovative, creative displays are popular in the produce industry.

“With in-store merchandising contests, store employees build displays — they stack cases of beverages, and put pistachios on top. Consumers are increasingly gravitating toward pistachios to go with beer and sparkling water,” says Keenan.

Shippers can boost sales. Setton Farms offers preloaded, easy-to-assemble shippers with a minimal footprint. “We suggest positioning Setton Farms pistachios within seasonal displays when snack foods are in greater demand, such as Super Bowl and March Madness,” says Setton.

Wonderful Pistachios invests heavily in point-of-sale (POS) displays, which they distribute nationwide. “We have a dedicated in-house merchandising team whose primary goal is to help stores build larger-than-life displays. Retailers that utilize our POS displays see up to two times higher sales velocities on average,” says Salsa.

MERCHANDISING TIPS

Supermarkets may discover increased sales if they cross-merchandise pistachios outside the produce department.

“Specifically, in snack aisles, in the beer and beverage section or on endcaps with clip strips that prominently showcase the product,” says Salsa of Wonderful Pistachios.

“I can see our Habanero lime being great alongside margarita mixes, or even the canned cocktails — ideally, it would be both,” says Trageser.

Supermarkets can also merchandise pistachios for baking and cooking. The APG website shares pistachio recipes including crusted salmon, veggie orzo, goat cheese burrata and chocolate cherry smoothies.

“Retailers can also create recipe displays, placing ingredients together like our Tajín or Scorpion Pepper Seasoned Kernel varieties with avocados and cilantro for a flavorful twist on guacamole,” says Setton of Setton Farms.

“Pistachios are exquisite on seafood. I’d love to see them displayed there. Also, for making international pastries — many French and Japanese pastry chefs use pistachios. I’d love to have people be more innovative. Not everyone puts pistachios on everything, but I do,” says Keenan.