May 09, 2003 Recent News
Snack- aholic Brits break European records
Cereal bars: they're not just for breakfast anymore
What's the future for functional nutrients?
Obesity: an issue of national importance
Evolution of American eating habits - an interview with Harry Balzer
Consumers accept organics; confused by GM foods
Iowa State University: Researchers developing risk analysis tool for biopharm crop production
American snacking trends
As Americans continue to be an on-the-move population, snacks and portable foods have replaced "at least two of the three" traditional daily meals, with the country's snack consumption reaching 6.5 billion pounds in 2002, a 1.4% increase from the year before. The Snack Food Association cites health consciousness, an aging population, rising health care costs and a perceived connection between diet and well being as trend drivers. However, some snack companies see positive nutritional benefits as a fringe benefit. Acrylamide as a recent health issue is also a minor issue to American snack makers, as it is not a controllable ingredient. Trans fat content is a much bigger issue because it can be changed for the better. Frito-Lay has made a commitment to stop using hydrogenated oils in snack products in early 2003, and the article notes that "where Frito goes - with market share exceeding 60% - the industry tends to follow." A recent Food Marketing Institute study indicated that over 60% of American shoppers believe organic foods are a healthier choice, but snack manufacturers are not heading that direction, seeing that market as regionally influenced. Flavor, fun and convenience continue to make up the major trends in the snack food industry.
(Extracted from Baking & Snack, 2/1/2003)
Snack- aholic Brits break European records
The British account for 51% of the savory snacks market in Europe, followed by Germany with 18%, France 14%, Spain 9% and Italy 8%. As in the US, snacking between meals is increasing with busy lifestyles. The UK sales of savory snacks grew by 18% from 1997-2002. The UK market for crisps and savory snacks is estimated to be worth 4 billion euros. Crisp's remain the UK's favourite snack and are 47% of the total savory snacks market. However, alternative snacks such as pouch packed yogurt, cookies and candy are starting to eat into the UK snack market. Other Europe snack markets are growing as well. The Italian market has grown by 57% and Spanish market by 58%. Again driven by the busy urban lifestyles of two income families. The French like to eat biscuits and nuts before a meal, but they are not yet big between meal snackers. The snack market in the UK is expected to rise by 12% in the next four years. There is also expected to be strong market expansion in France (37%), Italy (33%) and Spain (22%) over the next four years. However, continual new product development is needed to keep the interest of young consumers and keep the growth in the European snack market on target.
(Extracted from Just-food.com, 5/2/2003)
Cereal bars: they're not just for breakfast anymore
Cereal bars make up part of a $1.6 billion food bar market in the US, and the market has seen double-digit growth in retail sales each year for the past decade. About a third of American adults are likely to skip breakfast, while snacks have become a daily routine for many of them. Those most likely to skip breakfast are in the 18-34 age group, which represents about 70 million Americans. The cereal bar category has several strong competitors, however. In the breakfast category, the most popular product is ready-to-eat (RTE) cereals, which are consumed 110 times a year per capita in the US, according to recent research. The RTE cereals are consumed for breakfast about 90% of the time, 4% at lunch or dinner and the remainder as a snack. In the 52 weeks ending August 10, 2002, there was no growth in total retail sales of RTE cereals, according to ACNielsen data; but RTE cereals are still the third most popular product sold in in supermarkets in terms of dollar sales, behind carbonated drinks and milk. Consumers are looking for low calorie cereals packed with vitamins, minerals and proteins, making such products as Cheerios, Raisin Bran, Corn Flakes and Rice Krispies the most popular. Hot cereals are also growing in popularity, with slightly less than 20% of people consuming them for breakfast. Cereal bars must also compete with such baked goods as sweet rolls, bagels, toaster pastries and other baked breakfast goods, which are often perceived as providing more energy and being more filling than cereals and cereal bars. Initially, energy and nutrition bars were consumed by athletes, but now they have moved into the general population. Food bars are often high in sugar and saturated fats, though manufacturers also say they are high in nutrients and in line with government regulations regarding sugar and fat levels. Food bars are also finding their way into retail outlets. Food bars are becoming popular in the rest of the world as well as in the US. In Argentina, food bar sales grew over 160% in 2000 and increases in the country are projected at 30% a year over the next several years. Analyst Gregg Palazzolo believes that, while there is still growth potential in cereal bars, the increases will shrink as the market matures; and industry experts say no one segment will have an advantage over the other.
(Extracted from Cereal Foods World, 3/1/2003)
What's the future for functional nutrients?
National Starch's European Nutrition Business Development Manager, Pauline Taggart, notes that "'whole grain" is a major buzz word for cereals, and heart health and digestive health "may continue to be principal themes." It is necessary to maintain eating quality while "invisibly" improving nutritional content. Health claims, an important factor in marketing, must be phrased so consumers can easily understand the health benefit. Too much science on the label, or non-credible or incomprehensible claims, will be confusing. Convenience is also a big factor, and new formats, e.g., breakfast bars, are continually being developed. Consumers devote only an average of 15 minutes to breakfast. Consumers with a specific health need will pay the premium associated with functional breakfast cereals, but the majority are price conscious. Wellness benefits sell better than future disease prevention. Manufacturers of functional ingredients for breakfast cereals must understand how extensive cereal processing can be. She notes also that credible dose-tolerance clinical studies are required for new micronutrients. Taste and texture are said to be well understood by consumers, and bioavailability is known mostly by nutritionists. As the market continues to grow, bioavailability will become more important and will provide differentiation between ingredients.
(Extracted from Functional Foods & Nutraceuticals, 3/1/2003)
Obesity: an issue of national importance
This column on science, communications and government relations focuses on obesity as a US health crisis and the governmental responses to it in recent years. The Centers for Disease Control and Prevention (CDC) attributed in excess of 300,000 deaths each year to obesity, and totaled the costs of treating obesity in 2000 at $117 billion. The causes of obesity and overweight are a combination of sedentary lifestyle and changing dietary habits as technology advances to provide more labor-saving devices and larger food portions that are readily available for low cost. Programs to address these issues are being implemented across a range of agencies and government levels. Congress has appropriated increasing amounts of funding for CDC, USDA, US Dept. of Education and US Dept. of Health & Human Services programs targeting obesity, physical inactivity and unhealthy eating. State-level legislation is geared at increasing taxes on junk foods and soft drinks, restricting food advertising geared toward children, tightening rules on the nutritional content of school lunches or banning the sale of soft drinks and some "unhealthy" foods at schools.
(Extracted from Food Technology, 2/1/2003)
Balancing price and quality
The Grocery Manufacturers of America conducted a nationwide omnibus survey in Feb. 2003 of 1,000 American adults on their purchasing habits and dietary perceptions. When asked why people buy their favorite brands, 26% cited quality as the reason (down from 28% in 2002), 23% said "familiarity" (down from 35% in 2002), 15% claimed "nostalgia" or that it was what was used in their home as a child, and 11% responded "it is inexpensive (up from 6% in 2002)." When asked about dietary changes, two-thirds (67%) had no plans to change their diets, down from 71% in 2002, 12% have already made changes (up from 8% in 2002), and the same number both years, 12%, said they plan to change, but have not done so yet. The survey results downplay the effect of the media on consumers' food choices. On the issue of acrylamide in food, seven out of ten respondents in 2002 said they had not heard of the issue, while in the latest survey, eight of ten had not. The GMA survey also asked about who is responsible for obesity and the majority of respondents said it is an individual responsibility. Over 80% blame an individually controlled factor, such as not enough exercise or too much television, for obesity, 5% blame larger portion sizes or the "fast food phenomenon" and 4% blame the food manufacturers.
(Extracted from FoodNavigator.com, 3/14/2003)
Evolution of American eating habits - an interview with Harry Balzer
In an interview, Harry Balzer, vice president of the NPD Group's Food Consulting Services for over 20 years and author of NPDFoodworld's Annual Report on Eating Patterns in America, discusses the evolution of American eating habits. In the recently released report, Balzer sees several developments. He expects much of the food industry's prospective growth to be connected to the continuing decline in meals prepared at home. Such emerging segments as fast casual will replace the home-cooked meal, though the report did note a drop in that segment's sales-growth rate. He still expects that area between the quick-service restaurants (QSRs) and casual dining to continue growth. Balzer cites efforts by Panera Bread and Chipotle to provide fast-casual variety and fresh food options, but he says fast casual could have a problem because its heaviest users are the 18-34 age group, which is less well off financially than the baby boomers. Fast casual must respond to this price challenge as well as to the QSRs. With casual-dining outlets and supermarkets both going into the take-home-prepared-food market, there will be a struggle for market share. According to the eating pattern report, QSRs still make up 86% of meals taken home from restaurants. Balzer also cites consumers' concerns about healthy eating but notes that what people say they want and how they behave often diverge. He sees foodservice as in a good position to appeal to Americans' true desire to eat more healthily and points out Subway, with its "Lose weight with me" promotion. He also sees growth potential in products that have recently been in a decline, such as vegetables and hamburgers. The report found that restaurant operations right after September 11, 2001 experienced one of its strongest quarters ever, with a 6% increase; and then about mid-July 2002, weekly sales began to soften. That makes Balzer uneasy about consumers' discretionary spending habits. Despite that, he does not expect consumers to break the habit of eating out, especially considering their interest in meals prepared outside the home. The fact that the restaurant business has been growing has led to a misconception, he says. The growth has come more from take-home than from sit-down business, and most people consume most of their food in their houses.
(Extracted from Restaurants & Institutions, 4/1/2003)
Consumers accept organics; confused by GM foods
"Shopping for Health 2002," a study on genetically modified and organic foods sponsored by the Food Marketing Institute and Prevention Magazine was released in December 2003. Princeton Survey Research Associates performed the study in February 2002 by conducting telephone interviews with a nationally representative sample of 1,000 US adults. A summary of the survey said, "U.S. consumers are divided and confused on the issue of bioengineered foods." Thirty-seven percent of respondents agreed that GE foods are acceptable, while 46% disagreed. When the purpose of the genetic modification was given (i.e. pesticide reduction or increased yield), acceptance increased to over 60%. However, 65% said scientists don't have enough information to be able to control the effects of gene modification on food and 60% wanted to know if foods have GM content. Younger shoppers are more accepting of GM foods, with 45% of "generation X and Y" respondents comfortable with GM food content, compared to only 37% of baby boomers and 29% of "mature" shoppers. Regarding organic foods, 61% of US shoppers thought organic foods were healthier choices, 57% had purchased organic food in the last six months or used them for health maintenance, and 27% had purchased organic breads, cereals or pastas. Organic shopping appears to be a regional occurrence, with the highest percentage of organic purchases in the West (38%), followed by the Northeast (35%), the South (31%) and the Midwest (26%).
(Extracted from Baking & Snack, 2/1/2003)
Iowa State University: Researchers developing risk analysis tool for biopharm crop production
Iowa State is hoping to determine the risks from genetically modified plants grown for pharmaceuticals. The team will be made up of researchers from Iowa State, the University of Iowa and Montana State University. They are going to determine a risk development tool based on science to be used for public policy decisions regarding pharma crops. The test will identify contamination risks and points where scientific safeguards are needed. The tool will be used to test safety risks of two selected proteins that could be used to produce biopharmaceuticals in corn. These pharma crops could provide significant economic potential for farmers. According to Manjit Misra, professor of agricultural biosystems engineering and director of the Seed Science Center at Iowa State; "instead of saying we should or shouldn't grow pharmaceutical crops in food producing areas, we're using science to determine which ones are safe to grow in food-producing areas, which ones should be grown in other states and which ones should not be grown in the open environment at all." The researchers will follow the National Research Council's established risk analysis procedures to develop the model. Currently 34 to 40 plant-made pharmaceuticals and industrial products are near commercialization and the USDA and US Drug Administration are proposing zero tolerance for the inadvertent introduction of these products into the food and feed supplies. The project at Iowa State " will take the approach that tolerance levels should be defined for each pharmaceutical or industrial product and relate to any potential health or environmental hazard the product might pose," said Misra. (Extracted from Biotech Week April 16, 2003)
