Patty Johnson, Global Food & Drink Analyst

According to press reports, global sales of wholegrain foods are projected to reach $26.7 billion by 2017 with the United States the largest single market.
In the US, there were almost 10 times more food launches containing wholegrains in 2012 than 2002. This innovation was mainly centred on the breakfast cereal and bakery categories – though side dishes were also a focus of launches. In 2012, side dishes accounted for 8% of all wholegrain launches and rice dishes in particular saw a seven-fold increase between 2004 and 2011.

The US rice market was worth £1.9billion in 2010, thanks to a value CAGR of 6.5% in the previous five years. New rice launches in the US are increasingly using wholegrains, and the share of all US rice launches claiming to be wholegrain rose from 9% in 2006 to 26% in the 10 months to October 2012.



The popularity of brown rice in America was boosted by its association with wholegrains in 2008 when the US Food and Drug Administration (FDA) allowed brown rice food labels to carry the wholegrain health claim.

According to the USA Rice Federation, brown rice is one of the most heart-friendly forms of rice as it is naturally low calorie, and contains no cholesterol, sodium or trans-fats.

Brown rice is considered a 100% wholegrain food and a half-cup serving is equivalent to a portion of wholegrain. The 2010 dietary guidelines for Americans suggest that the average adult should eat between 6 (women) to 10 (men) ounces of grains per day.

Consumers looking for healthier options

Over two-thirds (67%) of US adults claim to choose healthier foods in an effort to stay well and whole foods products such as brown rice are seen as a particularly good source of fibre.

Rice’s link with wholegrain health claims gives it a strong position. wholegrain. Across all US packaged foods, 65% of US adults see wholegrain as one of their key purchase drivers, with women and those aged 55-64 most likely to look for this. More US adults agree it is important for food to be wholegrain than to be reduced calorie or low fat (both 49%).

More, however, needs to be done by rice producers to position rice as a good source of wholegrains. Fewer adults currently agree that wholegrain is an important part of their decision making processed for rice than for general packaged foods.
Currently, 56% of US adults claim to look for wholegrain in their choice of packaged rice. However, this remains the fourth most important driver for rice in the US behind price, quality and branding, and it is also the most important health statement.

There is a fair amount of trust among consumers for on-pack or in-store health claims, with 38% of adults agreeing that they trust labels or signs in grocery stores that designate some products as healthier than others.
However, many producers of wholegrain rice are still not communicating many of the health benefits wholegrain can provide. Less than a quarter (24%) of launches since 2008 claim low cholesterol, only 22% claim to be low in trans fats and only 13% claim to be high in fibre.

Innovations focus on speed of cooking to appeal to new consumers
More than half of US adults aged between 55 and 74 years old eat brown rice, compared to only 43% of 18 to 24 year-olds, as price and time to cook reduce its appeal to younger consumers.

By 2015, population forecasts predict there will be an extra 24 million 55- to 74-year-olds in the US, accounting for 21% of the population.
Given older consumers are more likely to eat brown or wholegrain rice because of its perceived health benefits, this suggests that there should be a sustained increase in demand for brown and wholegrain rice in the next few years.

However, recognising that many younger consumers now lack the time and skill to cook from scratch, the majority of new wholegrain rice launches focus on speed and ease of cooking. Microwavable claims have appeared on almost two-thirds (63%) of wholegrain rice launches since January 2008, while time/speed claims have occurred on more than 40% of all new launches, making these the most frequently occurring claims after wholegrain.

While ease of cooking offers a time saving benefit, health remains the main consumer reason for purchasing wholegrain rice. New product launches need to ensure that health messages are not reduced in importance to appeal to more time-pressed consumers.

If you want to know more about how Mintel can help your business, please contact us here.

Mintel Group Limited

351 West Hubbard Street Suite 801

Chicago, Illinois USA 60654

	Lu Ann Williams Head of Research, Innova Market Insights

Innova Market Insights
Marketing 22
6921 RE Duiven
The Netherlands

Tel:  +31 26 319 2000
Fax: +31 26 319 2009
luann.williams@innovami.com 

	Ger Standhardt Manager Knowledge Development & Projects, NVC

The NVC World Review on Supply Chain Applications of RFID and Sensors in Packaging will be introduced on 13- 14th November 2012 at Hi Ni NuW Europe.

Other subjects that will also be covered are packaging innovation and the new ISO Standards for Packaging and the Environment.

For more information please contact Ger Standhardt, via g.standhardt@nvc.nl or +31-(0)182-512411.

		DEBORAH CROSS, Food Analyst

 
Since 2011, Denmark and several other countries have attempted to curb the growing obesity epidemic by introducing health-related food taxes, or “fat taxes”. Euromonitor International research reports more than 35% of consumers are classed as obese in Mexico and the US, calorific intakes have increased in many countries since 2006 and the numbers of overweight consumers are growing fastest in developing countries. As such, there is no time to lose. Decisive measures must certainly be taken by both the food industry and governments to prevent obesity getting an even bigger girth.

By forcing consumers to pay a levy on food products with higher fat content to subsidise future healthcare costs, Denmark’s ground-breaking food tax system has led the world in a regulatory approach. Other countries have followed this example, most recently Peru, and the topic is also under discussion in Ireland and the UK. By its nature, taxation fuels controversy. It also has serious flaws in targeting the consumer, rather than the food industry. Realistically, obesity cannot be curbed by taxation alone.

Taxation: The food industry doesn’t like it

Widespread negative perceptions and reactions to health-related taxes are evident, where the tax is commonly regarded as a revenue-generation exercise by governments in a time of fiscal uncertainty. The basic question of how an enforced tax can be a motivator for personal behavioural change is difficult to answer, but governments are right not to trust businesses to sort out the problem alone.

Industry leaders are concerned these taxes will stifle investment, discourage innovation and reduce competitiveness. Certainly, the Danish tax is complex to work out as it must be calculated for every food and then passed on to consumers. Hence the Danish Government itself is now considering revoking the tax. Industry experts have also warned that the impact of the tax will be felt the hardest by low income families, and will discourage further work in development of healthy food products.

Adopting a broad and diverse control strategy maximises benefits

Although both government and food industry actions are important, combinations of different measures applied together are potentially much better suited to tackling obesity, rather than taxation alone. Raising health awareness appears to be more beneficial, suggesting that an educational approach could have advantages.

Several campaigns are already underway. Change 4 life is a governmental initiative campaign in the UK, emphasising the importance of movement and activity in combination with increasing consumption of healthy foods, reducing saturated fat content and also eating five fruits or vegetables per day. Commencing in January 2009, it is organised by the UK Department of Health, with the slogan “eat well, move more, live longer”.

Access to healthier food choices is also important. As of 2012, for example, the mayor of New York now employs vegetable sellers to distribute fruit and vegetables in disadvantaged areas, helping increase the availability of such produce to the general public.

Present industry-government initiatives

Initiatives to strengthen and target responsible advertising to children under 12 are also proving successful. The European Platform for Action on Diet, Physical Activity and Health was set up in 2007, and companies including Kellogg, Nestlé, PepsiCo, Mars and Kraft Foods have all signed up. As companies develop their own nutritional standards and some define unhealthy products differently, the process is not ideal but the initiative has worked. Independent annual reports from agencies and companies including Price Waterhouse Coopers have reported around 93% compliancy with the self-regulatory process.

Product reformulations within the last 5-10 years have further tightened up an industry which previously relied too heavily on fat, sugar and salt for flavour. Going forward, healthier reformulated baked goods and biscuits from UK companies now have largely met or exceeded agreed government targets, which may themselves need tightened. Companies such as United Biscuits have reformulated entire biscuit and snack product ranges, significantly reducing saturated and trans-fats, sugar and salt content. Many food suppliers are also engaged and focussed on providing healthier ingredients. In New York, calorie contents are posted in foodservice outlets to improve the transparency of information, which consumers can then use to aid their choices.

Reformulation and product development

As food prices are key indicators of personal food preferences, taxation could perhaps be applied to subsidise the costs of healthy produce, like fruit and vegetables, instead of towards healthcare costs. Consuming a healthier, nutritionally-beneficial diet supplying extra vitamins and minerals could help stave off future healthcare costs, while benefiting primary production industries with less advertising muscle. In food preparation, manufacturers could make their products healthier by incorporating more vegetables into the formulations. Separately, the realisation of the Olympic and Paralympic legacies from London 2012 to increase participation in sport represents a complementary direction for national governments to pursue, in partnership with industry sponsors.

Regardless of health-related food taxes, governments should prioritise tackling obesity by educational initiatives and creative approaches in product development, targeting smaller businesses as well as the global companies. While certainly not dismissing regulation as a control measure, expansion of healthy snack product ranges should first be considered. The availability and ease of purchase of healthy foods as alternatives in both foodservice and convenience retail outlets should be increased, as these are still significantly less visible in the market. Finally, independent national bodies also certainly have a useful role to play in enforcement and monitoring, if given the powers to shape industry and government activities.

Deborah Cross,

Food Analyst

	Lu Ann Williams Head of Research, Innova Market Insights

Innova Market Insights
Marketing 22
6921 RE Duiven
The Netherlands

Tel:  +31 26 319 2000
Fax: +31 26 319 2009
luann.williams@innovami.com 

	Harry B. Rice, GOED

To date, more peer-reviewed published clinical studies have investigated the benefits of the long-chain omega-3s EPA & DHA than any other nutraceutical ingredient. With more than 22,000 peer-reviewed publications, covering research across the life cycle (pregnancy, lactation, infancy, childhood, adulthood, and aging) and representing numerous conditions (e.g. cardiovascular disease, dementia, depression, diabetes, neurodevelopment, inflammation, maternal health, respiratory diseases, surgery/trauma, etc…), there is no sign of a slow-down. As much as we know about the benefits of EPA and DHA for human health, there’s even more that is not known. We are just beginning to understand their potential value.  

GOED
Global Organization for EPA, DHA Omega 3s
801-474-2570
Salt lake City  UT  84092
United States

 

	Ger Standhardt Manager Knowledge Development & Projects, NVC

The NVC World Review on Supply Chain Applications of RFID and Sensors in Packaging will be introduced on 13- 14th November 2012 at Hi Ni NuW Europe.

Other subjects that will also be covered are packaging innovation and the new ISO Standards for Packaging and the Environment.

For more information please register today or contact Ger Standhardt, via g.standhardt@nvc.nl or +31-(0)182-512411.

	Sarah Theodore, Global Food and Drink Analyst

Mintel Group Limited

351 West Hubbard Street Suite 801

Chicago, Illinois USA 60654

	EWA HUDSON, Global Head of Health and Wellness Research

In regulatory terms, 2012 has already been a very busy year in the EU. Industry is busily preparing to comply with the new Food Information for Consumers Regulation (FIR) alongside the recently formalised positive list of generic health claims, which offers opportunities industry-wide but also finally closes the door on many long-used health claims.

Regulation 1924/2006 on nutrition and health claims made on foods

Without doubt, the most long awaited aspect of this legislation was the publication of the Article 13.1 list of approved generic health claims. Regulation 432/2012 was published on 16 May 2012, giving the food industry until 14 December 2012 to ensure that all claims are compliant with the approved list – just 222 claims. Claims made on foods after this date that are not in compliance with the regulation will be liable to enforcement action. This should not come as a great surprise to the food industry as the opinions of EFSA (European Food Safety Authority) have been published for some time, but there was no cut-off date for non-compliant claims until this regulation was formalised. Some 1,719 claims have been categorised as non-authorised under Article 13.1. Authorised claims are largely limited to vitamins and minerals, some essential fatty acids and fibre. Non-authorised claims controversially include all probiotic claims.

This final formalisation of the generic claims into law would appear to give the green light to the use of all authorised claims on appropriate foods, although one of the unresolved elements of the regulation is nutrient profiles. The absence of nutrient profiles could potentially result in claims made on 'inappropriate' foods (for example vitamin claims on high sugar confectionery), and some areas of industry feel that they are working in a very difficult position concerning the re-branding of products using authorised claims, only for that to potentially be threatened should profiling emerge over the next couple of years. The European Commission reported earlier this year that nutrient profiling will be reconsidered after the publication of Regulation 432/2012. Well, that time is now, so one to watch in the near future.

Article 13.5, covering claims based on new scientific data, still includes just one authorisation for water soluble tomato concentrate I & II for normal platelet aggregation and healthy blood flow. The 26 rejections in this category include some general wellbeing claims, some probiotic digestive health and respiratory tract health claims and several claims related to reducing hunger, appetite, body fat, waist circumference and resculpting body shape.

Article 14.1(a) claims covering the reduction of disease risk have so far resulted in seven authorisations and 15 rejections. There are only two key areas of health covered by the authorisations - reduction of cholesterol and its association with coronary heart disease (plant sterols, plant stanols, plant sterol esters, plant stanol esters and oat beta-glucan) and reduction of dental carries/tooth demineralisation with sugar-free chewing gum and xylitol. Interestingly, the reduction of cholesterol claim was not authorised for soy protein in spite of its previously accepted benefit in this area. Reduction of urinary tract infection (UTI) claims were not approved for Ocean Spray cranberry juice or a food supplement containing cranberry extract (Uroval), but the company Medical Brands has recently achieved an approved medical claim for cranberry and UTI under the Medical Devices Regulation. Other non-authorised claims include water related to reduced dehydration and concomitant performance reduction, Actimel L casei in reducing Clostridium difficile and diarrhoea and added calcium to fruit juices to reduce dental carries.

Article 14.1(b) on children's health and development saw 11 authorisations and 36 rejections. However, the authorised claims are limited – five relate calcium, vitamin D, phosphorus and protein to bone development. DHA (Docosahexaenoic acid) is approved in three claims for brain and visual development for infants, and iodine and ALA/LA (alpha-linolenic acid/linoleic acid) both contribute towards normal growth and iron for cognitive development. All other claims related to brain development, cognitive function, concentration, learning, relaxation, immune support and digestive health were not authorised. The dairy '3-a-day' claim for maintaining healthy body weight and dental health was also rejected, as was the Kinder chocolate claim helping children to grow. All probiotic claims for children were also rejected.

Claims authorised or rejected under Article 13.5 or 14.1 were published under various regulations and are also subject to a 6-month cut-off period for non-authorised claims. All of the claims (including Article 13.1) can be found on the European Commission's register of health claims http://ec.europa.eu/nuhclaims/. It should be remembered that authorised claims are still subject to use only in compliance with other factors laid down in the claims regulation. These include appropriate nutrition labelling, use of required accompanying statements, generic health statements backed up by related authorised claims and appropriate warnings for over-use/avoidance. The European Commission is currently drafting guidelines on the implementation of these rules. There are still claims being considered by EFSA and the EC for which transition periods for those that may be rejected have yet to be established.

For nutrition claims, there was much controversy over the rejection of two new claims by MEPs early in 2012. The claims on 'percentage less', eg 'now with 15% less sugar' and 'no added salt', were vetoed as Parliament felt that these claims would be confusing to consumers and would essentially reward unhealthy products with claims. The European Commission and food industry, on the other hand, feel that the ability to highlight gradual reformulations, as opposed to the sometimes unachievable jump to 'low' products with a 30% reduction in eg sugar or fat, would be beneficial to consumers in making healthier choices.

Vitamins and minerals and other substances added to foods and food supplements

While there continues to be no progress on the key outstanding topic concerning these two particular pieces of legislation – the setting of maximum levels of vitamins and minerals for fortification or food supplements where there may be concerns for consumer safety - steps have been taken concerning the first substances to be considered under Article 8 of Regulation 1925/2006 on fortification. Article 8 covers substances which may be prohibited, restricted or placed under Commission scrutiny. The European Commission has passed on its first request from a Member State to EFSA for assessment of Ephedra species and yohimbe (Pausinystalia yohimbe). At present, Directive 2002/46 on food supplements very specifically covers only vitamins and minerals, and in 2008 the Commission declared that the inclusion of other substances in the directive was not considered necessary. It will be worth noting whether, if the two substances under assessment are placed into Annex III of Regulation 1925/2006, this has any impact on the food supplements directive.

Regulation on Food Information for Consumers (Food Labelling)

Regulation 1169/2011 on food information for consumers was finally published at the close of 2011, completely overhauling food labelling and bringing it into the format of a regulation for the first time. One of the key features of the regulation will be the mandatory nutrition labelling on almost all pre-packed foods from 13 December 2016, within a new prescribed format. This means that although a very high percentage of foods already carry voluntary nutrition labelling according to Directive 90/496, all of these foods will be required to change their packaging to comply with new format and content. Foods that are already accompanied by a nutrition panel must also comply with the changes by 13 December 2014, a full two years before other foods not already carrying voluntary labelling. The nutrition panel will now mandatorily consist of energy, fat, saturates, carbohydrate, sugars, protein and salt (note the removal of fibre and the movement of protein further down the panel), with voluntary provision for monounsaturates, polyunsaturates, polyols, starch, fibre and vitamins and minerals. Information will be provided per 100g/ml and may also be provided as a percentage of the reference intakes, which are laid out in Annex XIII. Nutrition information per portion may also be provided, and there is provision for the European Commission to look into setting portion sizes within the legislation, although the scale of this task is undeniably huge and is therefore not subject to any deadline.

The regulation also allows for the provision of nutritional information on the front of pack (so-called FOP labelling). It was long thought that the European Commission would actually dictate the format that this was to take, favouring the extensively used 'GDA' scheme. In fact, the regulation only dictates that front of pack labelling, if used, must include energy (must always be declared per 100g/ml) with or without the following nutrients - fat, saturates, sugars and salt. All FOP declarations may also be according to the percentage reference intakes or per portion. Additional forms such as colour coding, graphic or symbolic forms are also permitted. Member States must monitor use of FOP and the Commission will produce a report on the potential need for regulated measures by December 2017. Therefore, aside from prescribing the nutrients and mandatory energy declaration, harmonisation of FOP labelling is no further forward. The UK has taken this opportunity to once again consult on the potential for one uniform scheme, as other countries may also undertake to do.

Other issues that the regulation mandates that the European Commission is to review include the possible mandatory declaration of trans fats (already the subject of many years of debate), the notorious 'may contain' labelling for allergens, 'vegetarian/vegan' labelling and setting reference intakes for specific population groups, including children.

Organic

At this time, the new organic regulation 835/2007 has had time to bed in, and it is now mandatory for organic food (at least 95% organic) to carry the prescribed EU logo, which may exist alongside other organic logos. Also in March 2012, detailed rules for organic wines were published in Regulation 203/2012, and shall apply from 1 August 2012. Other organic news is that the EU and US have set up a trade agreement for organic foods. This means that foods certified as organic in the EU may be exported to the US without the need for re-certification, and vice versa. This is a welcome agreement, not only in lifting trade barriers but also improving consumer confidence in the status of imported organic products.

Novel foods and foods from cloned animals

The novel foods regulation has been in place since 1997, and has long been considered a stifling element on innovation, for everything from newly engineered food ingredients to traditional foods from non-EU countries. This is of particular interest in the health and wellness arena as many exotic fruits are found to offer health opportunities, but with two onerous regulations to gain approval (novel foods and health claims) it is often insurmountable to bring them to market. A review of the regulation has been underway for many years, with a revised regulation proposed in 2008. This was rejected in March 2011 when the European Parliament and Council failed to reach agreement at what was expected to be the final stage of the process. Current status suggests there is likely to be a new draft published in 2013 alongside a draft regulation for food products from cloned animals. Food ingredients developed from nanotechnology fall within the current novel foods regulation, and the European Commission is mandated to consider the necessity for specific labelling for such ingredients under the Food Information Regulation. It is also hoped that the new draft will offer a more accessible route to approval for traditional foods from outside the EU.

Summary

In summary, it is all systems go for the health and wellness industry with the formalisation of generic health claims, the transition to new format nutrition labelling and a more relaxed than anticipated approach to front of pack labelling. Nutrient profiles and portion sizes are still looming in the background but are so long overdue that any short-term activity seems unlikely.

Ewa Hudson,

Global Head of Health and Wellness Research

	Lu Ann Williams Head of Research, Innova Market Insights

Innova Market Insights
Marketing 22
6921 RE Duiven
The Netherlands

Tel:  +31 26 319 2000
Fax: +31 26 319 2009
luann.williams@innovami.com 

	Béatrice de REYNAL,  Nutritionist, NutriMarketing

You may think it is, but it is not. Researchers from Boston Children's Hospital , have found that all your calories do not act equal, depending on the types of calories you take, the way your body uses them, particularly if you went already on diets.

One of the main reasons – everybody knows that- is that dieting slows down your metabolism. Before a diet, your body might have needed 2000 Calories, but after dieting, only 1600 calories will be enough as your body has learned to reduce its energy expenditure.

But what Cara Ebbeling shows is the impact of the way you are preparing your food on your metabolism. Processed foods and simple carbohydrates with a High Glycemic index (GI) can slow down your metabolism too.

As a fact, 200 calories of corn flakes (GI 93) can trigger more weight gain compared to 200 calories of chick peas humus (GI 6).

GI is not the main indicator. The choice of cooking modes, the way food are prepared (peeling, frying, boiling, minced, chopped, jerky, halting, …) is impacting the calorie account as well.

Our prehistoric ancestors have revolutionised their diet and life expectancy discovering fire. Cooking can draw more energy.

The way you are preparing your food is pretty important. During a long cooking at high temperature, potatoes will infuse much more calories than the same amount of raw potatoes. A long cooking pie with lots of grounded meat, minced ingredients… will lead to much more calories than eating more simply.

The more you break down cellular walls, the more matter you may give to your intestinal cells and enzymes.

If you mash you food thoroughly before eating them, you may release all the calories they content to your body. But if you eat, chewing yourself your vegetables, fruit, meat and fish, then, your body will take only a part of the edible energy. For your balance: reduce the cooking time and chew!

Béatrice de Reynal

Nutritionist

	Marcia Mogelonsky, Director of Insight, Mintel Food and Drink

The US cereal market should be buoyed by consumers’ attitudes towards food and eating habits. Sixty-five percent of adults aged 18+ agree that they are trying to include more fiber in their diets and 46% consider “nutritional value” to be the most important factor when choosing foods.

When it comes to ranking ingredients themselves, consumers consider fiber to be as important an attribute as added vitamins and minerals and as wholegrain. Fiber ranks above a number of no/low/reduced attributes, demonstrating its significance in consumers’ food choices; it shares top position among consumers as an attribute related to nutrition they want to see in their foods. Sixty-five percent of consumers look for foods high in vitamins/minerals, fiber, and wholegrain, according to a recent Mintel survey.

Fiber has become a “go to” ingredient for consumers of all ages.  The nutrient used to be connected almost exclusively to digestive health and regularity and high-fiber products tended to be identified with seniors seeking natural laxatives. But, fiber has transitioned to a younger crowd, which looks to it for satiety and energy.

American consumers also strongly support the importance of eating breakfast, ranking it as the most important meal of the day. While just 16% of consumers consider lunch to be the most important meal, and only 17% feel the same way about dinner, 58% consider breakfast to be the top meal of the day, according to Mintel.

Cereal is well positioned to capitalize on consumers’ desire for more fiber in their diets and for their propensity to rely on breakfast as their “important meal.” More than eight in ten breakfast eaters (84%) include cereal in that meal, and one of the main reasons they do so is to benefit from the satiety attributes of a high-fiber cereal. Forty-two percent of breakfast eaters choose cereal because it helps manage health concerns, many of which are answered by an increase in fiber consumption.

While the cereal industry has the potential to realize appreciable gains because of the US consumer’s heightened interest in fiber, however, there are equally high fiber competitors that could present it with a serious challenge. Cereal bars, for example, have also ratcheted up their high fiber credentials, as has bread (which often translates to toast at breakfast) and other bread products such as bagels.

It would seem that cereal has little to fear from these competitors, because of its significant penetration in the US market. But, it is notable that only a third of cereal eaters name the product as their “favourite breakfast food.” This suggests that they could be tempted to move away from cereal, even high-fiber cereal, if other products satisfied their desire for a healthy and quick breakfast, two of the major attributes they accord to breakfast cereal cereal.

This is especially true as both cereal and cereal bars are faced with a new competitor, the fiber-rich breakfast biscuit. In Europe, the growing popularity of this type of breakfast solution, represented primarily by Kraft’s Belvita, has met with mixed success. In the US, Belvita’s success cannot be adequately measured yet, as the product was introduced to the market less than a year ago. But, the fact that two-thirds of cereal eaters seem to be invested in the category without a major amount of enthusiasm suggests that the new product may siphon off some of the cereal industry’s user base. The industry may want to consider innovating more around totally new products or ingredients, rather than simply “fibering-up” current SKUs in order to recapture and re-involve more consumers.

Mintel Group Limited

351 West Hubbard Street Suite 801

Chicago, Illinois USA 60654

	Adam Ismail, GOED

Are omega-3s poised for growth in Europe again?

Growth rates in the European nutritional market have fallen during the past few years and omega-3s are certainly no exception to this trend. In a report commissioned by GOED, Frost & Sullivan estimated that consumption in Europe is only going to increase 2.6% in coming years. Much of this has been attributed to uncertainty about health claims. A good chunk of the industry’s growth has always come from new product launches, so it makes sense that if it is unclear how to market new products, companies will be less likely to launch products until that uncertainty is cleared up.

Yet Frost & Sullivan’s growth forecasts are based mainly on interviews conducted with industry members, and after all, this is just a forecast. And now with the recent EFSA opinions for omega-3s, we have multiple Article 13 and 14 claims approved, we have a Nutrient Reference Value (NRV), and consumer awareness is already high. So does this mean that growth in the omega-3 market can start increasing again?

In the fortified food market, Europe was an early innovator with omega-3s, but new product launches virtually came to a halt with the financial crisis in 2008. Fast forward four years and we now have consumers who are aware of omega-3s, a way to communicate the benefits to them (claims), and guidance on inclusion levels (NRVs). However, there are multiple food categories in countries throughout Europe where leading brands are not leveraging omega-3s. Food companies should look at this as a prime opportunity to differentiate from their competition. We have consistently seen that in concentrated categories of the food market, a first mover advantage is important. When you have 2-3 leading brands in a category like juices, the brand owners are generally trying to manage their own brand identities and equity as distinct entities from their competitors. So trying to leverage omega-3s into your products could provide some sustainable differentiation for your brand.

Supplement companies have some unique opportunities for new product launches as well. One of the challenges in omega-3s is bringing new users to the category. There is a portion of this non-user base that does not like the technical features of many omega-3 supplements, including pill size, taste, etc. With the new NRV of 250 mg per day, companies can make once-per-day products based on a real nutritional value, but more importantly, they can also use highly concentrated oils to deliver this NRV in a capsule that is one-third the size of a typical fish oil capsule. With new emulsion technologies and new sources of omega-3s, companies also have the opportunity to bring to Europe exciting new products that have found traction in markets around the world. There are also multiple new opportunities for brain and heart health products that are now differentiated from most other nutritional supplements that do not have approved claims. All of this will appeal to new omega-3 consumers and should provide some interesting value for existing users as well.

GOED
Global Organization for EPA, DHA Omega 3s
801-474-2570
Salt lake City  UT  84092
United States

 

	Ewa Hudson Global Head of Health & Wellness Research Euromonitor International

Vegetables, with their high vitamin and mineral content, are strongly associated with healthy diets. Their share of the fruit/vegetable juice category remains minimal, but with fruit juice gaining a more unhealthy reputation due to its high sugar content, vegetable-based varieties should capitalise on this bad press.

Vegetable juice blends have for a long time been associated with niche health food cafés and juice kiosks, enjoying little shelf space in major supermarkets and hypermarkets. The best-known brand V8, from Campbell Soup Co, the ninth largest health and wellness (HW) juice player globally, commands only a 1% share of the category. However, the interest in vegetable juice is evident as the brand's sales stood at US$475 million in 2010 and saw absolute value growth of US$181 million over 2005-2010.

HW juice is set to see absolute value growth of US$6.8 billion over 2010-2015. This strong consumer demand highlights that there is still room for new brands to grow. Interestingly, this growth is set to be driven by emerging market regions such as Asia Pacific, Eastern Europe and Latin America. At present, however, HW juice retail sales are dominated by the North American market.

Regional Absolute Value Growth of HW Juice 2010-2015

 
Key: AP = Asia Pacific, AUS = Australasia, EE = Eastern Europe, LA = Latin America, MEA = Middle East & Africa, NA = North America, WE = Western Europe

Lower sugar content

Fruit/vegetable juice has long been associated with health benefits. A study in 2006 found that there was no evidence that fruit/vegetable juice was less beneficial in terms of reducing the risks of developing cancer or cardiovascular disease than whole fruits and vegetables. In addition, just like fruit juice, a 200ml glass of vegetable juice is equivalent to one of your 'five-a-day'.
In comparison to fruits, vegetables tend to have a lower simple sugar content and therefore a reduced glycaemic response (the rate at which glucose is released into the blood). The sugar content of apple juice and orange juice, two of the most common fruit flavours, is 11.9g/100ml and 10.6g/100ml, respectively, for not from concentrate juice. On the other hand, tomato juice and V8 juice have 4.2g/100ml and just 3.2g/100ml, respectively.
A high intake of sugar is considered harmful to health due to links with chronic health problems such as obesity, type 2 diabetes and cardiovascular disease, all of which are rising and increasingly significant public health concerns not just in developed market but worldwide. In addition, vegetables are less acidic and thus could be more attractive to those consumers concerned about the acid erosion of their teeth.
Big brands showing signs of delving further into vegetable juice
Manufacturers have begun to offer more variety in the way of vegetable juice. The Coca-Cola Co's brand Pocket Garden Blendie, for example, which launched in France in 2011, includes varieties such as courgette, carrot, tomato and Thai (a mixed vegetable blend of cauliflower, rutabaga, celery and onions).
Other companies include UK-based James White Drinks with its Big Tom (tomato) and Beet It! (beetroot) juice and the Yasai Seikatsu brand from Japan's Kagome Co Ltd. The latter is so popular in its local market that it is even sold in branches of McDonald's.
The Coca-Cola Co’s Pocket Garden Blendie Product Range

 
Private label not shy to experiment with vegetable juice

In addition to branded products, private label has also entered the vegetable juice arena. In 2011, private label held an 11% share of global fruit/vegetable juice sales, and whilst the majority of this share is accounted for by fruit juice, private label does offer a number of vegetable variants. Sainsbury's, the UK's third largest grocery retailer, has a beetroot, blackcurrant and apple juice while Tesco offers a tropical carrot juice. Both mix well-loved fruit juice flavours with less common vegetable flavours to attract a wider audience. This strategy is important in attracting consumers to a category that remains unfamiliar to many.
Sainsbury’s Beetroot, Blackcurrant & Apple Juice

Keep your eye on these flavours As demand for vegetable juice increases, this could open the door to flavour innovation. At present, the most common vegetable juice flavours are tomato, beetroot and carrot, all of which have numerous health benefits thanks to their high vitamin and mineral content. In addition, these flavours have a somewhat sweeter taste in comparison with other vegetables. Nevertheless, in the future, other flavours such as courgette, spinach, cucumber, pumpkin, kale, celery and parsley, be it as single flavours or as part of a blend of flavours, could have a greater presence.

	Lu Ann Williams Head of Research, Innova Market Insights

I recently bought a few magazines as I stood in line at a grocery store in the US. One of them is called “Clean Eating” – a publication I am not familiar with. I looked in the colophon to discover that this is already volume five and it’s a Canadian magazine distributed in the US. There is a section in the colophon called “What is Clean Eating.” The answer: “clean foods contain just one or two ingredients.” OK – I get it, this magazine is for that very small niche of extremely committed consumers but I am surprised that this magazine is sold by the check out in Publix. 

“Clean eating” as defined by the magazine is fine for those who want to do it, but it could also be seen as more criticism of processed food. I recently saw another media show pontificating about the evils of food but there wasn’t a food industry representative on the panel. Surely it’s time for the industry to share some positive messages about food processing. So, here are some of my insights. 

I am a scratch cook by nature but I work, travel a lot and have three young kids. We are healthy eaters but take a moderation approach – we like dessert. During the week, frozen vegetables are my best friend. The ones I buy are portioned packed – one bag feeds five and fits into a single pan perfectly. Thank you Green Giant and Bonduelle! I love beans with a nice bite but never remember to soak them and wouldn’t have time to boil them for 1.5 hours in any case. No problem. I can buy chickpeas and lentils that aren’t drowning in water and salt and still have bite. Thank you (again) Bonduelle for those delicious steamed (new technology) canned chickpeas. I am also trying to eat more fish, tuna is my favorite, I can eat it straight from the can, or now, a pouch (new and increasingly popular packaging technology) and also without a wet mess thanks to John West’s new steamed cooked tuna that is sold without brine (another new technology). 

There can be many positive messages for processed food around sustainability, reduced food waste, improved nutrition quality, better taste and last but not least, the absolute need for processed food in a world with a rapidly growing population. 

The natural trend has dominated product launches over the past few years and we don’t see any slowdown but there are opportunities outside a natural claim. Natural can be defined as “anti-processed” and this is where there is room to help educate consumers that processed isn’t a bad word. This is where messaging around new technologies plays a role. 

Some foods that use a novel process may well be far more natural and require less/no preservatives than the conventional variants they are challenging. These products are also dominating from a taste perspective. Metten Fleischwaren has introduced its “Delicious Country Sausages” innovation, with wieners, bockwurst and poultry sausages. The products are pasteurized in a new beaker using plastic with the patented PermaSafe technology [Weidenheimmer], and can be stored ambient for up to 6 months. The beakers feature a large clear window so you can see the product (windows – another packaging trend for natural positioning). 

In Spain, Isabel now offers a new Naturfresh Tuna in Olive Oil. The company claim that this product offers “the best and most tender tuna loins” these are produced using a method that is 100% natural, without using preservatives and presented in new packaging that is more convenient and practical. The new, gentler sterilization process allows the tuna to remain softer and fresher. The company is keen to market the use of this exclusive technology through the highlighting of the NaturFresh logo on the packaging.  

And what about the adoption of high pressure processing (HPP) solutions, in order to significantly extend the shelf-life of products from prepared meats to fruit juices? The use of this technology, which has been cleverly adopted by juice brands such as So Natural (Portugal) and Fruity-Line (Netherlands), can indirectly help to reduce the waste that comes in the fresh juice category, due to the extended shelf-life. 

The food industry is being bashed over and over but there have been so many new technologies that bring consumers nutritious foods in a convenient format but we never hear about these on the news. Also at the time of a US drought and another looming food crisis on the horizon, shouldn’t we think about the positive role that technology can have in cleverly dealing with resources? The food industry is part of the solution and the onus is on us to get that message across by communicating the benefits of true breakthroughs that can help tackle the real problems we will have to deal with as the world’s population continues to grow.

Innova Market Insights
Marketing 22
6921 RE Duiven
The Netherlands

Tel:  +31 26 319 2000
Fax: +31 26 319 2009
luann.williams@innovami.com 

	Ger Standhardt Manager Knowledge Development & Projects, NVC

The New ISO world standards for packaging and the environment are on their way and NVC Netherlands Packaging Centre has played an active role in their development. How important are these standards, why is NVC so involved and where are the benefits for my company?

Standardisation is the process of developing joint agreements between different companies from one or more sectors to stimulate economic, social and environmental development. Standardisation is an absolute necessity for the supply chain of packaged products and the recycling of the emptied packages after use of the products. They provide tools for companies to demonstrate company performance in an objective way to its internal and external stakeholders, for instance in conjunction with the well-known ISO 9000 series on quality management.

Packaging plays a critical role in almost every industry, every sector and every supply chain. Appropriate packaging is essential to prevent loss of goods and as a result decrease impact on the environment and makes a positive contribution towards achieving a sustainable society. This group of ISO standards and supporting reports provides a set of procedures which aim to reduce environmental impact, support innovation in product, packaging and the supply chain; avoid undue restrictions on the use of packaging; and prevent barriers and restrictions to trade.

In May 2012 the final texts of the ISO world standards on packaging and the environment were released for translation and publication in October later this year. The standards address Optimization of the packaging system, Reuse, Material recycling, Energy recovery and Composting, as well as the way these aspects are related to each other. Every responsible retailer, manufacturer and packaging supplier can implement the standards in their management system and thereby take responsibility for their specific part in the sustainable innovation of packages, packaged products, retail and recycling. The new standards will be available by October 2012 via the national standardisation institutes which together constitute the worldwide International Standardization Organisation ISO.

One of the presentations during the NVC Innovation Briefs at Hi Ni NuW Europe 2012 will be about the implementation of these new standards for packaging and the environment. Other subjects that will also be covered are active & intelligent packaging and packaging innovation. For more information please contact Ger Standhardt, via g.standhardt@nvc.nl or +31-(0)182-512411.
 

	Béatrice de REYNAL,  Nutritionist, NutriMarketing

Each food industry professional knows how the colour, appearance, noise, smell … influence gustative pleasure and food preferences. But no one knew that they influenced nutritional choices.

The fragrant smells of family recipes are strong enough to trigger appetite, at any level of satiety. On the contrary, everyone have experienced odourless period of time, with runny nose, when food desire is gone.

Besides that, as a nutritionist, I know how dangerous can be a buffet for nutritional balance. One is tempted by exaggerated servings of food that he is not used to. So what will happen if you go close to a “smelling home made buffet”?

According to a new study, the smell of melon from a buffet of starters will encourage you to choose the salad rather than the salami. On the dessert buffet, the smell of pears leads to a low-in-calorie dessert, while, on the other hand, the scent of strawberries leads to cakes & sweets (61% of the participants who have smell a strawberry aroma have chosen to eat sugary stuff). Could this be the memory of the strawberry flavoured sweets of childhood?

These are the results of the Science Centre of taste and nutrition of INRA in Dijon: the smells are olfactory starters that influence eating behaviours, but not always in the same way. They are strongly impacted by the food culture of each eater, an intimate past made up of words, aromas, memories associated with family or social circles.
More generally, this study deals with complex components such as food memory, taste & olfactory sensations, cognitive psychology, and cultural choices.

Would the secret of a balanced diet remain in the scents of the atmosphere and the smell that pervade our living spaces?

A new way for professionals, who would be able to offer "healthy atmospheres".

	Lynn Dornblaser  Director of Innovation & Insight, Mintel

It’s actually a pretty obvious idea: do not over-consume any one food or drink to help achieve optimal health. However, with all the fad diets, celebrity weight-loss plans, and weight-loss surgery, it seems that, at least in the US market, that idea of moderation may have been forgotten.

However, we do see that consumers “get” the idea of moderation. Mintel’s research shows that, in the US market, fully 90% of consumers say that living a healthy life is all about moderation. The importance of diet and exercise ranks much lower. However, it’s obvious that what consumers say does not always translate into what they do, as is clearly proven here by the ever-increasing obesity rates.

Although they are hard to quanitify, as they can comprise many things, we do see increasing numbers of new product introductions that help consumers moderate.  When looking at new product introductions that help consumers moderate their consumption, we tend to see them fall into three main areas.

Controlling what you consume is made easier when the products are in individual portions. The success we have seen in previous years with products like Kraft’s 100 Calorie Packs illustrate that point quite well. But what we are seeing increasingly on the market are products that perhaps offer a bit of an indulgence while still being individually packaged. For example, General Mills offers Pillsbury Maple Burst’n frozen microwaveable pancakes in a multipack of single-serve bags so that consumers can control the amount they consume.

Sometimes, moderation can be achieved if the product offers the ultimate flavor or taste sensation. For example, in the US we see a line of chocolates from Montezuma’s that are intended to “subtly satisfy” through intense flavor. Some of the flavors include ones that combine mango and chili peppers, or strawberry and peppercorns.

Lastly, products that offer a sense of satiety can help consumers moderate. Satiety is often accomplished via a blend of protein and carbohydrates, to satisfy and help consumers feel fuller. In Canada, SunRype offers its Just Fruit & Grains bar, which is 70% fruit and 30% grains.

	Ewa Hudson Global Head of Health & Wellness Research Euromonitor International

Like a number of “superfruits”, cherries boast formidable antioxidant content. However, it appears that they may have more specific health benefits to offer in a number of very promising growth areas, such as sports nutrition, pain management and combating sleeplessness.

Cherries more dynamic than blueberries and cranberries
Cherries are enjoying a surge in popularity. Euromonitor International's fresh food statistics show that global volume sales of fresh cherries rose by 17% over the 2006-2011 review period, outperforming other high-end fresh fruit “treats” like strawberries and grapes. In 2011, cherries emerged as the second most dynamic fresh fruit category, achieving a 4% volume gain, ahead of cranberries/blueberries.

Global volume sales of cherries amounted to 1.3 million tonnes in 2011, which was only marginally below that of cranberries/blueberries and less than half of the volumes achieved by strawberries. Although an ongoing hit with consumers, the market for fresh cherries remains constrained by both seasonality and a short shelf life. Unlike some types of berries, such as strawberries, blueberries and raspberries, which are also highly perishable but whose seasonality can be artificially prolonged, for example through the use of polytunnels, cherries only manage to make a comparatively short-lived annual appearance.

Luckily, in order to enjoy the taste and health benefits of cherries, consumers are not limited to eating them in their fresh state, but can resort to frozen, dried and powdered formats as well as drinking cherry juice. Needless to say, this inherent versatility is good news for a range of players engaged in the health and wellness industry.

Antioxidants and beyond
As already alluded to, cherries are high in antioxidants. This goes particularly for tart cherries (also often referred to as “sour” cherries). Contrary to what one might expect, tart cherries have the same natural sugar content as sweet cherries but contain more sour and bitter tasting phytochemicals – the very substances which afford them their antioxidant prowess.

The ORAC (Oxygen Radical Absorbance Capacity, a measure of the antioxidant potency of foods) value of fresh tart cherries is around 1,500. For comparison, fresh strawberries hover around the 1,000 mark, and cranberries come in just below tart cherries. Blueberries, which are famed for being antioxidant powerhouses, achieve an ORAC value of around 2,400.

Their high antioxidant content makes cherries and cherry products instant candidates for several health and wellness positioning platforms, including cardiovascular health, brain health and memory, beauty from within and anti-ageing. Being a rich source of carotenoids (which are grouped in with antioxidants) means that cherries potentially also lend themselves well to a vision health positioning.

In recent years, several pieces of research have emerged which indicate that cherries may hold promise for three further – and potentially very popular – health and wellness applications. They may provide relief from pain and inflammation, act as a sleep aid and become a rising star in the area of sports nutrition.


Relief for painful joints
Fresh cherries are a traditional remedy for alleviating the pain associated with gout and arthritis. Some research has shown that they help the body excrete excess uric acid, which causes gout, and also that certain phytochemicals present in cherries may combat the inflammation responsible for arthritic pain.

Anti-inflammatory drugs currently constitute the mainstay medical treatment for arthritis management, and consumers are always looking for natural alternatives, enabling them to reduce the amount of medication they are taking, and cherry products may prove to be an ideal and highly palatable adjunct.

Driven by global population ageing, bone and joint health is destined to become an important positioning platform. For the 32 markets covered by Euromonitor International's in-depth health and wellness research, sales of foods and beverages with a prime positioning focus on bone and joint health amounted to US$13.8 billion in 2010.

Sleeping pills are not the answer
Insomnia is a prominent health issue. Euromonitor International's consumer health data show that calming and sleeping products were the eighth most popular type of OTC medication purchased in 2011 at a global level. The category accrued worldwide value sales of nearly US$1.7 billion, registering a value growth rate of 36% over the 2006-2011 review period.

Sleep difficulties, which affect most people at some point in their lives, are of serious detriment to health and wellbeing as well as productivity. Due to concerns about side effects, many consumers turn to natural remedies before considering the more medicalised end of OTC products or, as a last resort, opting for prescription medication.

In February 2012, the prestigious British Medical Journal (BMJ) published a study which is bound to send droves of consumers searching for natural alternatives to hypnotics, the medical term for prescription sleeping pills.

The study examined the medical records of over 10,500 patients across the US and discovered that the incidence of early death increased more than three-fold in people who had been prescribed more than 18 pills a year. The incidence of cancer, in particular, was found to be elevated in patients taking sleeping pills, including zolpidem, temazepam, other benzodiazepines, barbiturates and sedative antihistamines.

Cherries and cherry products could well play a part in satisfying the growing need for natural sleeping aids. In August 2011, the European Journal of Nutrition published another piece of research backing up cherries' sleep-enhancing properties. Tart cherries, like the Montmorency variety used in this study, contain high levels of melatonin, a substance intricately involved in the regulation of human sleep patterns. The researchers concluded that the ingestion of tart cherry juice concentrate did indeed improve sleep duration and quality in healthy men and women.

Cherries still missing from the sports nutrition market
On the sports nutrition front, cherries and cherry products may have an application in speeding up post-exercise recovery and improving performance. The American College of Sports Medicine published an article in August 2011 in its journal Medicine & Science in Sports & Exercise which suggested that cherry juice was able to reduce muscle damage caused by intensive strength exercise. The researchers stipulated that this effect was due to cherry juice's high antioxidant content attenuating the oxidative damage caused by this type of exercise.

At present, cherry ingredients are not commonly employed as functional ingredients by mainstream sports product manufacturers. For example, GlaxoSmithKline's Lucozade branded sports drinks, despite offering cherry flavour varieties, makes nothing of cherries' potential in the realm of post-exercise muscle recovery. Lucozade Sport Lite Cherry, launched in the UK in August 2011, only contains cherry flavouring, as does Lucozade Body Fuel Drink Cherry.

Cherry juice positioned as a functional product is being left to specialist producers. UK-based CherryActive, founded in 2005, for instance, offers CherryActive Concentrate made from Montmorency cherry juice, available bottled or in pouches. The product is primarily positioned at the sports nutrition market, although the company makes reference to joint health, sleep and other antioxidant-related health benefits. In addition to juice, CherryActive also offers freeze-dried powdered cherries in capsules and dried Montmorency cherries for snacking.

In the future, we should start to see more mainstream products in the sports drinks arena, such as, for example, sports drinks employing a significant proportion of cherry juice in order to appeal to people seeking sports drinks with a more natural positioning. Protein shakes with added cherry powder (from freeze-dried cherries) and snack bars with dried cherries and/or cherry powder are also likely to appeal to consumers interested in sports nutrition products.

Cherry juice hard to find
Although a number of packaged food and beverage categories will be able to benefit from the rise of the cherry as a superfruit, it is the fruit/vegetable juice category which holds the most promise. Fruit juice is widely perceived as being almost as “natural” as the fresh fruit, while having the added advantage of year-round availability. The cherry juice category is only just emerging, with many gaps waiting to be filled.

For instance, it is currently a challenge to find 100% cherry juice on retailer shelves. Cherry juice products, even those consisting of 100% fruit juice, tend to be blended products, ie consisting of a mixture of fruit juices. Ocean Spray Cranberries Inc launched its new Ocean Spray Cherry range in February 2012, with the tagline “Real Cherries. Real Good”. The four new offerings are juice drinks, combining cherry juice with other juices, such as cranberry and orange.

UK-based Cherrygood Ltd, whose range of cherry juices is available from most of the country's major supermarkets, and which makes much of the health and wellness benefits of cherry juice in its marketing, launched Cherrygood Premium Cherry in January 2012. The product is promoted as possessing “a higher antioxidant content than any other leading chilled juice”, devoid of additives, preservatives, sugar and 100% natural. However, its cherry juice content is just 40%, with the rest consisting of apple juice.

Even Voelkel, a German beverage company specialising in high-quality natural and organic juices, only offers cherry juice as a combination product of apple and cherry juice.

The issue hinges on both taste and price. Pure 100% cherry juice has quite a strong taste, which is not unpleasant, but it may not be appreciated by all consumers. It is also expensive to produce. The 100% cranberry juice category remains a niche for those same reasons. Pure cranberry juice is mainly purchased on medicinal grounds by women suffering from recurring urinary tract infections.

However, 100% or near-100% cherry juice has much greater potential than the cranberry equivalent. Compared to cranberry juice, which centres its high antioxidant value on urinary tract health, cherry juice's health and wellness remit is far broader, encompassing more mainstream health concerns like insomnia and pain management.

In the past, when cherry juice was mainly purchased because of its flavour, a satisfactory flavour profile could be achieved with a fairly low proportion of cherry juice (or none at all!), and consumers had no or few qualms about this. Now, however, with cherry's unstoppable emergence as a superfruit sporting a number of specific health benefits, a growing number of consumers will start to seek out products with high cherry juice content, and will be happy to contend with the more robust flavour.
 

	Lu Ann Williams Head of Research, Innova Market Insights

For those of you who missed the IFT Annual meeting in Las Vegas, and as a consequence, the Innova Market insights Taste The Trend pavilion, I’d like to share one of our most exciting features. Our team of analysts put together a timeline of decades of dairy innovation.

Dairy is probably my favorite department when I go grocery shopping every week. I buy pouches, tubes, tubs, cartons – a different product for every member of my household. As an American living in Europe, I see the reaction of visiting friends and family to European dairy products and I am sometimes asked, why don’t products in the US taste like these? Well, I can now tell them that they soon will. After so many years of telling people about what I see as the biggest gap in the US industry, it’s great to see that the American dairy shelves are expanding and there are so many new entrants to the market.

For example, just this week, Pepsi and Muller announced that their US joint venture, Muller Quaker Dairy, was entering the US dairy market with a number of premium yogurt products. The companies claim that Muller Quaker Dairy will satisfy the increasing demand for value-added dairy products in the US, “where variety and innovation within the category lags behind other regions, especially Europe.” Pepsi already holds a strong international presence in dairy, acquiring Wimm-Bill-Dann, Russia's largest dairy company, in 2011 and has been part of a successful joint venture with Almarai, Saudi Arabia's largest dairy company, since 2009. The announcement came just a couple of weeks after Pepsi’s arch soft drinks rival Coca-Cola signed a deal with Fair Oaks Farms Brands to distribute the Core Power range of high-protein energy drinks in the US, to signal its move into the fortified dairy product sector. Core Power will be stocked in about 10,000 grocery, convenience and specialty stores.

But it’s just the beginning – there is so much more that can be done. Any American who hasn’t been to Europe or hasn’t been lately, just go to a large supermarket in Mexico, the dairy shelves there are very similar to the European ones.

A key insight that we have offered our customers this year is that the traditional lower consumption of yogurt in the US compared to Europe may well be down to the formulation of the products themselves, which has given an opportunity for brands positioned on a more premium platform.

At Taste the Trend 2012, we made some predictions about what we can expect to see in the US dairy cabinet in 2020 and here’s a few of them:

Cultures are the New Supers: we are just beginning to see expanded interest in new cultures associated with specific regions like kefir, lassi and tan. And the next generation probiotics will offer consumers new benefits in areas such as allergies and weight management.

Allergic Proaction: for those with dairy allergies, there will be a groundswell in new dairy alternative products like almond milk.

Bid Towards Hybrid: the distinction between functional and indulgent will continue to blur. We’ll also see energy ingredients enter the category.

All Terrain Indulgence: fridge-free-on-the-go dairy innovation will untether dairy from the fridge permitting portability and more dairy for consumers in developing countries.

Ken Powell, the chairman and CEO of General Mills was on television this week and spoke about the company’s plan to expand their dairy offerings around the world. It’s great to have predictions validated by an industry leader so watch out for new products from Yoplait this year. New innovations will include Yoplait Greek 100 – a 100-calorie Greek yogurt that is the only Greek yogurt endorsed by Weight Watchers with a PointsPlus value of 2 per serving. Also new is Yoplait Simplait – a yogurt crafted from six simple, all-natural ingredients.

It is so exciting to see that there is so much room for real innovation in dairy. A walk around this year’s IFT Food Expo revealed that suppliers are pushing through innovation and that new ideas can go far outside the box, or for that matter the traditional dairy cabinet. The spectacular rise of Greek yogurt has been the key US dairy story in the last two years, but now the industry is looking at other innovations. New prototypes from the US Dairy Export Council included a portable chewy snack, made with whey protein and whole milk, that has been dried and shaped to resemble beef jerky. It’s a good source of protein (9 grams) for any active consumer who wants a convenient and satisfying snack. Talk about pushing the boundaries to get a vegetarian protein boost!

The key reason for the success of Greek yogurt in the US, which now reportedly accounts for 35 percent of total American yogurt sales [Bernstein Research], is its promotion on a protein platform. When I spoke at this year’s IFT Conference, I pointed out that most of the estimated 78 million US aging baby boomers have at least one chronic condition, with the most prevalent being arthritis (50 percent), followed by hypertension (34 percent), heart disease (32 percent), cancer (23 percent) and diabetes (19 percent). Many of these same consumers report that concerns about losing health insurance is pushing them to control their current condition – or prevent future conditions – through fortified foods or dietary supplements. I believe that the next wave of products will be geared toward consumers worried about losing muscle mass as they age. Humans lose muscle tissue as they age, and their body fat increases, making foods with high protein content of great interest to consumers.

Innova Market Insights also reported a surge in global demand for protein products at this year’s Taste the Trend Pavilion, noting that intellectual property development and patent activity is on the rise. We found that traditional areas like soy wheat, lupin and chickpeas are being examined again as healthy and sustainable solutions.

But there will always be a role for dairy proteins in helping to fill the protein gap, even if it is in the form of a meat alternative. The question will be just which dairy products triumph, so that they will still be suitable and relevant enough to make up part of the 2020 US dairy cabinet. Clever formulation and marketing will be central to success.

 
Innova Market Insights
Marketing 22
6921 RE Duiven
The Netherlands

Tel:  +31 26 319 2000
Fax: +31 26 319 2009
luann.williams@innovami.com 

by: Julian Mellentin, Editor-in-Chief, New Nutrition Business

For over a decade suppliers of protein have wrestled – unsuccessfully - with how to take protein away from its association with the body-building market and win more mainstream acceptance for protein-fortified foods and beverages.

After many years of waiting, at last awareness of protein is beginning to rise, helped by several boosts to protein’s image as a valuable part of a diet that helps people manage their weight.

The biggest of these was the publication in the New England Journal of Medicine of the world’s largest diet study. Called Diogenes, it investigated the optimum diet for preventing and treating obesity.  The researchers found that high-protein, low-glycemic index (GI) diets were the most effective for weight management

Weight management plans as various as Weight Watchers and Slimming World are already giving protein more emphasis and we have seen research that shows consumer knowledge is advancing far more rapidly than most food industry executives realise.

In Finland, for example, Valio Dairy – one of the world’s most sophisticated and innovative dairy companies - found that among more than 1,000 consumers 70% were either paying attention to the levels of protein in their diet or wanted to get more protein into their diet.

Before this survey was carried out, Valio was already aware that protein was of growing interest to Finnish consumers. But it was nonetheless surprised at the extent of this interest. “I thought: ‘I can’t believe this, it cannot be true’,” said Taru Pilvi, who is vice-president, Blue Ocean, at Valio.

In response Valio developed PROfeel, a high-protein dairy range designed to appeal not so much to committed athletes and body-builders – as is the case with many other protein products – but to the wider population.

 “We have found there is a big need for products like this,” Pilvi says. “We have seen people’s consumption patterns shift towards products like quark and cottage cheese, which contain high amounts of protein naturally. But natural quark and cottage cheese get kind of boring and don’t taste too good. So there is a need, which has not been fulfilled.”

The next year will see dairy protein gain ground even more, driven by:
•    a change in the scientific test methods for protein, which show that dairy protein is much better absorbed by the human body than other types of protein, giving dairy a big marketing advantage
•    major dairy companies, such as Arla, introducing new forms of protein which are clinically proven to be rapidly absorbed by the human body, thus making them even more effective.

Tipping points are often subtle things and this is no exception. This trend will continue but it will evolve slowly. The wisest companies will take action now.

By Chris Brockman, Mintel Senior Global Food & Drink Analyst.

Chia (also known as Salvia hispanica) is a summer annual herbaceous plant belonging to the mint family that develops seeds. The seed of thechia plant has a long history of consumption in Latin America and was a major part of the Aztec diet.

More recently, the seeds are gaining prominence for their health properties. The most significant health benefit that is now being promoted is that the seeds are a rich source of omega-3 fatty acid. They are also a source of fiber and rich in numerous other vitamins and minerals. Although they are largely unknown in Europe so far, chia seeds were approved in 2009 as a novel food in the EU for use in bread products up to 5%.

Globally, chia seeds have been most commonly seen to date in new launches of snack bars and some other snack and cereal products. Launch activity has been heavily centred in the Americas given the region’s familiarity with the ingredient. Latin America in particular is where bakery products incorporating chia seed have been mainly seen. In Europe usage of chia seed has been very limited to date, although it has appeared in a few bread launches.

Explaining the limited take-up by bread producers to date is the limited availability and therefore subsequent high cost of chia seed. It is likely the ingredient will take time to develop until supply improves. Chia can be viewed as similar to flaxseed which is also a source of omega-3 but which is considerably cheaper, indeed the two seeds are often combined together. Flaxseed has also taken time to see building usage in bread and bakery products, only reaching significant usage in recent years. Bread buyers in the main are very price sensitive and although a move to healthier breads has been seen, price is a limiting factor. Almost seven in ten UK bread consumers for example see price as an important issue when buying bread, versus three in ten who view healthiness as an important issue. Over half of UK bread buyers would eat healthier bread, but only if it were less expensive.

	Lu Ann Williams Head of Research, Innova Market Insights

There is a perfect storm brewing…an obesity crisis turning into a healthcare catastrophe, governments staring into a budget abyss and a gutsy, forward thinking politician talking about his next food target, large servings of sugary beverages. And on top of that, well produced documentaries are appearing on TV in the US and in Europe about obesity targeted at the food industry. I think we are at a point of no return. There have been constant sources of pressure from industry groups and people like Jamie Oliver and Michelle Obama, but this time it will be different.
 
I manage a team of analysts that spend every day looking at what is happening in the food industry. Health, wellness, nutrition, better-for-you, these are by far the most important topics we deal with, every day; the industry is focused on it. We have tracked over 600,000 new food & beverage product launches since 2008. Over 30% of new products launched since 2009 in Europe and the US have at least one health promoting positioning (I excluded things organic, natural, gluten free.)  The sector is making big efforts to improve nutrition quality but getting little credit for it.
The food industry is the focus for blame but the fingers should be pointed at the others involved. Consumers are living in a state of denial. Sixty percent of US shoppers surveyed by Health Focus International in 2010 were overweight but only thirty-two percent claim to be overweight. Forty-three percent said it is possible to be overweight and healthy. The numbers in Europe are only slightly less worrying. The same survey found that 47% of European shoppers were overweight or obese. Yet only 5% say weight is a primary reason to eat healthier and only 29% claimed to be overweight. Why then do 94% claim to be trying to either maintain or lose weight?
 
And the governments? What about home-economics, health and physical education classes at school? These programs have been cut back in many schools and schools have also turned to vending machines to raise extra funds. Education or lack of it when it comes to food, is a big issue.
 
“Big Food” as the industry is now being called, is not entirely to blame for obesity. The food industry has done a lot already and is actively working on ways to improve the health profile of products while still creating products that consumers will eat. But in terms of our perfect storm, look what happened with trans fat. Michael Bloomberg brought this to public attention but the industry was prepared. One of my colleagues wrote an article in 1995 about “trans isomers” and we started tracking what was happening then. Suppliers had trans fat free oils ready and waiting in the wings and when the issue came to a head, the industry had solutions available. Bloomberg’s latest move is outlawing the sale of any soft drink over 16-ounces in a bid to help curb obesity. It follows a strong 2011 campaign to help tackle salt consumption in New York City. New York has long been a forerunner when it comes to public health implementation (e.g. smoking bans in public places), so expect other US regions and European states to follow.
 
The European food industry will argue that it is taking a proactive approach to encouraging healthier eating, through reformulation and fortification, but that innovation is being stifled by misguided regulation. The European Parliament’s rejection of “percentage less” claims earlier this year is fair enough, as noting the reduction in fat, sugar or salt (e.g. “20% less sugar”) compared to a previous formulation can be misleading. But the potential of making this claim was at least stimulating the food industry to make these formulation tweaks and seek out innovative solutions from ingredient suppliers. Without the potential of making such a claim, is there really an incentive for manufacturers to make the switch, apart from being good corporate citizens?
 
The mass omission of generic Article 13 claims on the European Commission’s “Union List” of health claims [just over 220 approved and more than 2,000 rejected] is another case in point. Consumer protection from misleading claims is the key aim, but by placing the same substantiation requirements behind nutritional ingredients as to pharmaceuticals, there was little hope of high approval anyway for non-vitamins. The pharma industry has far longer patent protection than the food industry and the danger of the strict enforcement of this regulation is again that there is no incentive for suppliers to innovate.
The finger of blame for the obesity epidemic has long been pointed at food industry. Recent programs such as Big Food and The Men Who Made Us Fat will hardly quell that perception. But governments and other policy makers have also failed and oversee a new generation that will soon have lower life expectancies than that of their parents for the first time ever, due to their lifestyle choices.
 
My message to the industry is that we have crossed the tipping point. Sugar will be a big part of the discussion. Maybe it’s time to get together and do a better job of explaining all the efforts that are being made to improve the nutrition quality of food, to innovate with new health promoting ingredients and do it better than was done during the pink slime crises – Jamie Oliver made it on TV more than a year before the topic erupted in the media. Obesity and sugar are hot media topics now so be prepared.