December 01, 2003 Recent News
Healthy Lifestyle Scores Higher in Consumer Survey
Companies see profitable market for convenience foods
UK: Eating on-the-go increases despite lack of healthy products
FDA re-examines 'serving sizes,' may change misleading labels
UK FSA to debate options for children’s food ads
Divided EU to make second attempt to lift GMO ban
Healthy Lifestyle Scores Higher in Consumer Survey
The latest American Customer Satisfaction study indicates that Americans may be getting tired of junk food. The findings suggest that companies whose products are linked to obesity and other health conditions are scoring lower than they have in the past. And food companies with healthy food products saw higher scores. The survey asks customers to rate their experiences with specific products from Luna Bars to Addidas shoes. They are asked to rate only products purchased or consumed in the past month and the results are aggregated to create an overall score for each manufacturer. The current results also suggest that consumers are looking to for "instant-gratification" and convenience. Soft drinks saw the biggest drop in their scores. Major breweries also saw their scores suffer as the satisfaction with microbrew increased.
(Excerpted from the Wall Street Journal, 11/13/03)
Companies see profitable market for convenience foods
Information Resources data indicates that consumers are willing to pay 2-3 times more per serving for the same food if it is packaged conveniently. According to the president of Campbell Soup's soup division, the market for convenience foods is growing 14%-16% a year. Because of longer working hours, worsening traffic, etc., consumers tend to rate convenience higher than nutritional considerations, a Packaged Facts editor says. It is also putting increasing pressure on taste as the main reason to buy. Where food companies used to focus on taste, they may now concentrate on the convenience aspect and regain market share lost to restaurant takeout.
(Extracted from Food & Drink Weekly, 11/10/2003)
UK: Eating on-the-go increases despite lack of healthy products
The biggest on-the-go consumers in Europe are consumers in the UK. More than 22% of all eating occasions are happening on-the-go in the UK. Throughout the rest of Europe meals consumed on-the-go is only 15%. According to a new Datamonitor study finding healthy on-the-go products proves to be quite a challenge. "Food and drink manufacturers are under pressure to respond to the growing potential of legislative and consumer backlash as well as tobacco-type industry lawsuits as the obesity epidemic gains political momentum. Manufacturers will need to market a broader range of healthy offerings if they are to appear credible in the eyes of consumers" comments Dominick Nosalik, consumer analyst at Datamonitor and author of the report. However, in the UK it seems the need for convenience may mean the healthy food concerns may be overlooked. The lack of on-the-go healthy products is the biggest barrier to healthy eating. Consumers are very concerned about self-managing their health through diet and exercise. Most manufacturers and retailers are not offering consumers the right healthy food products. Diet products are the most available, however, weight control is their second concern. They are more concerned with the overall healthiness of the food they eat and are looking for products that support long-term health and wellness as opposed to weight loss.
(Excerpted from just-food.com, 11/14/03)
FDA re-examines 'serving sizes,' may change misleading labels
In the government's latest move to stem the growing problem of obesity, the Food and Drug Administration (FDA) is seriously considering a change in food labels to spell out nutrition information for the entire package, not just for sometimes misleading "serving sizes." Such a move could have an enormous impact on food companies. Label changes, which affect nearly every category of packaged food and beverages, can be expensive to implement. More broadly, food companies would come under pressure to downsize their products.
(Extracted from The Wall Street Journal, 11/20/03)
UK FSA to debate options for children’s food ads
The Food Standards Agency (FSA) in the UK issued a paper on the actions and options possible for promoting foods that would improve the eating habits and health of children. The paper suggests conducting research, promoting existing guidelines and new regulations. Advertising, displays in stores, labeling and loyalty programs are also suggested. Next year, following public discussion the FSA board will decide which of the proposed policy options to recommend to the government. FSA published a research paper by Professor Gerard Hastings, "Does Food Promotion Influence Children? A Systematic Review of Evidence" in Sept 2003. He concluded that advertising to children does affect their choice of foods both for specific brands and specific foods. "We already know that many children's diets contain more fat, sugar and salt than is recommended. We know that the level of obesity in children is rising and in the words of the Chief Medical Officer, is a health time bomb that could explode. By 2010 it could cost 3.6 billion pounds a year and be very significant factoring the ill health of thousands of people and their families. This is why the agency is encouraging a wide debate on the options for action that could make a difference. Doing nothing is not an option," said Sir John Krebs, chair of the FSA.
(Extracted from Just-Food.com, 11/10/03)
Divided EU to make second attempt to lift GMO ban
Despite fierce consumer opposition to genetically modified organisms (GMOs), the European Commission will put the issue to a vote in two weeks. The outcome could either be a spectacular backfire for the Commission, a stalemate to be resolved by EU ministers, or the end of the unofficial ban that sparked international action against the EU by Argentina, Canada and the United States.
(Extracted from Reuters News, 11/25/03)
