food and ugust/ beverage a innovation frito-lay call stack

Starting at the end of August, Frito-Lay is

rolling out across the U.S. Lay’s Stax, potato

crisps stacked in a portable, resealable, crush-

resistant container, taking on P&G’s Pringles

head-to-head.

“Lay’s Stax potato crisps offer the great taste

that consumers expect from Lay’s, America’s

favorite potato chip,” says Stephen Quinn, chief

marketing officer, Frito-Lay. “Its convenient

packaging also expands the Lay’s brand’s already

broad appeal to a new audience.”

“Our superior frontline sales force will be

placing Lay’s Stax potato crisps on store shelves

across the nation,” said Tom Greco, senior vice

president, sales, Frito-Lay North America. “This

means consumers will have an unmatched snack

experience available on a daily basis.”

Lay’s Stax crisps will be available on store

shelves nationwide in four flavors: Original, Sour

Cream & Onion, Barbecue and Cheddar, with

Original in 6 oz. and the flavors in 5 3/4 oz.

canisters. Lay’s Stax potato crisps is another

Frito-Lay offering with zero grams of trans fat.

With $800 million in sales, Frito-Lay is the

top-selling branded range in the $2.7 billion US

potato chip business (AC Nielsen), but it has not

had a rival for Pringles which is the clear leader

in the $300 million market for crisps, with

Pringles commanding about 60% of sales of pre-

formed, stacked potato chips in a can.

Lay’s Stax crisps will be supported by a fully

integrated launch program including print and

television advertising as well as coupon inserts,

product sampling and in-store merchandising – a

launch marketing package estimated to be

costing $50 million.

The television advertising will feature

magician Dana Carvey as different characters in

an entertaining commercial showing how

creative you can get with a “deck” of Lay’s Stax

potato crisps. The 30 second spot is set to break

on September 21, 2003 during the Emmy

Awards.

P&G tried to stall the introduction of Stax by

filing in 2000 – then later

dropping – a patent-

infringement lawsuit.

Now, the packaged goods

giant says it will beef-up

Pringles marketing to

protect the sales share of

its 34-year-old brand,

though it would not say

how much more it will

spend. Last year, P&G

spent $30 million on

Pringles advertising.

It will truly be a

battle of the crisp

giants. “The idea

is that Lay’s is

available in Stax,”

Quinn says. “This

is not like any

Lay’s you’ve seen

before.” ■

5Food and

Beverage

Innovation

Au

gu

st/

Sep

tem

ber

Functional foods in SpainSpanish consumers are eating healthier, but rather than simply

returning to the traditional Mediterranean diet, many are looking toconvenient answers. This has resulted in Spain becoming one of themost innovative and fastest growing markets for functional foods.

Obesity responsibilitiesMany food companies have been on the defensive in recent years in

response to public concerns about the obesity epidemic. Now they areturning on the offensive – at least in voicing their side. New productinnovations are just one part of the complex challenges obesity poses.

Innovation celebrationThe food industry is not renowned for providing many new

innovations in a short period of time. However, a look at 75 years ofinnovation at General Mills, for example indicates that long-terminnovation can often be just as exciting.

Powerful fatty acidStudies continue to link Conjugated Linoleic Acid (CLA) with a

reduction of body fat mass and an increase in lean body mass. Theingredient is now also making the shift from dietary supplements tofunctional foods.

17

21

25

34

Contents in this issue

Americans in huge numbers – between 15

million to 30 million according to some

estimates – are turning to low-carb, high protein

diets to lose weight.

Pioneered by diet guru Dr. Robert Atkins back

in 1972, his approach to eating looks destined to

go mainstream. There are already 200 low-carb

specialty shops, low-carb websites are increasing,

and restaurants are offering low-carb menu

options. In addition, mainstream food companies

are introducing a host of low-carb lines driven by

demand from retailers like Safeway, who are

planning to expand low-carb offerings

throughout its 1,700 U.S. and Canadian stores. ■

Low-carb craze

Alcoholic soft drinks63

Lager88

Ales and stouts50

Cider and perry12

Specialty107*

Specialty beers dominate new product launchesCategories of new beer and cider introductions

*9 of the 107 specialty beers surveyed were positioned as either low andIight, functional and fortified or natural and organic

Analysis of 320 worldwide beer launches (January-July 2003)Source: Innova WIN database

Pri

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Frito-Lay call stack snacks war

Innova_005_Augustus '03 04-09-2003 15:22 Pagina 1

2 August/September 2003 innova

Contents

EditorialEditorial Director: Michael Heasman, PhDEmail: [email protected] Assistant: Robin WyersEmail: [email protected]: +31 26 319 0652Senior Analysts: Norma Sarma, Lu Ann Williams

ContributorsMichael Fitzpatrick, Ed Ogiba, Ron McMillan, Henk W Hoogenkamp

Subscriptions & administrationFor subscription information or questions:Tel: +31 26 319 0650Fax: +31 26 319 0659E-mail: [email protected]

Annual subscription feePublished 10 times a year1 year: €895/ US$ 955 / £5402 years: €1565/ US$ 1675/ £940

Publisher: Patrick MannionEmail: [email protected]: +31 26 319 0653

Innova Market Insights BVMarketing 226921 RE DuivenThe NetherlandsTel: +31 26 319 0650Fax: +31 26 319 0659E-mail: [email protected]

Companies in this issue7 Eleven Inc. 6A&W All American Restaurants 13, 14Abbott Laboratories 3Adirondack Pure Springs Mt. Water Co. Inc. 8ADM 5AFC Enterprises 10Albertson's 10Amway de Espana 18Anheuscher Busch 36Atkins Nutritionals 6Baja Fresh 13Becks 36BioDelivery Sciences International, Inc. 12 Bitburger 37Bodyonics Ltd. 8Boioral Nutrient Delivery 12Bravo 36Bravo! Foods International Corp. 8BTG 12Buca Inc. 14Burger King 13, 24Cadbury's 24California Walnut Commission 7Canadian Canola Growers Association 11Carbsense Foods Inc. 4Cargill Health & Food Technolgies 29Carlsberg Breweries 37Carrefour 10ChampionLyte Beverages Inc. 6ChampionLyte Holdings Inc. 6Chili's 14China Bistro Inc. 14Chipotle 13Circle Group Holdings, Inc. 12 Coca-Cola 8, 18, 24Cognis Health & Nutrition 34Cohen Marketing Services 12Colorful Harvest 7ConAgra Foods 10

Costco 10Cytodyne Technologies 34Daehnfeldt 7D'Amico & Sons 13Danone 18, 23Dean Foods 5Del Taco Inc. 13Dhul 18Dreyer's Grand Ice Cream 10Dutch Farms 8Einstein Brothers 13Equi's Ice Cream 5Farmer's Snack 28Felsenkeller 37Fiber Gel Technologies, Inc. 12 Fleishman-Hillard 24Frito-Lay 1, 22Gatz Altbier 37General Mills 25Gilde and Hannover Breweries 36Golden Corral 14Good-Humor-Breyer's 22 Grocery Manufacturers of America 9Group EFO 18Grupo Leche Pascual 18Hannen Alt 37Hartwall 27Healthy Gourmet Delivery 3Heineken 36Heinz 10Holsten 36Home Depot 10Horizon Organic Holding Corp. 5IHOP Corp. 14Industrias Rodriguez 18Interbrew 36Island Way Sorbet 6JC Penney 10Jordans 27Kagome 5

Kellogg's 4, 27Kelsen Bisca 27Kemin Foods 5KFC 13, 14KFC 24Kinder 24Kmart 10Kraft Foods 21, 32Kroger 10Kyowa Hakko Kogyo Co., Ltd. 12Lifeway Foods Inc. 4Loders Croklaan Lipid Nutrition 34Long John Silver's 13, 14LSG Sky Chefs 13Mars 24McDonald's Corp. 13, 14, 24, 31McVitie's 27Merit Distribution Services 10Monsanto 29Natural Inc. 34Nestle Holdings 10, 24Ocean Spray Ingredient Technology Group 27Omnicom Group 24Orafti 18PepsiCo. 23, 24Pharmanutrients 34Pilgrim's Pride Corp. 10Pizza Hut 13, 14, 32PriceSmart 10 Proctor & Gamble 1, 8Puleva Biotech 18Puleva Food 18Radeberger 37Regal Trade & Consult 29Rexall/Sundown 6Ross Products 3Ruby Tuesday 14SABMiller PLC 36Safeway 1

Safeway 10Sam's Club 10Save-a-Lot 4Sear, Rosebuck and Company 10Seattle Coffee Co. 10Shepherdboy Ltd. 27 Slim-Fast Foods Co. 22 Sloan Trends and Solutions Inc. 32Snyders 6Sonic 14Southwest Foods 6Specialty Foods Group Inc. 6Starbucks Corp. 10, 14Subway 14Sunflower 10Swift & Company 6Swift Transportation Co. 10T.G.I. Friday's 13Taco Bell 13Taco John's International Inc. 13Target 10The Boston Beer Co. 6The Hain Celestial Group 6, 29Tuborg 37Unilever 22Vie de France 13VOIC 11Wacker Specialties 29Wal-mart 10, 22, 24Weider Nutrition International 35Wendy's International Inc. 13White Wave 5Whole Foods 5Wild Oats 10Wild Oats 5Wolfgang Puck Express 13Yum Brands Inc. 13YUM! Brands Inc. 14ZonePerfect Nutrition Company 3

International news1. Frito-Lay call stack snacks war

Company watch3. Abbott Laboratories emerging as global

nutritional leader

Product and company news4. Lifeway foods expand La Fruta line

5. Dean Foods buys Horizon Organic

New juices high in antioxidants

6. 7-Eleven introduces gourmet sorbet in fruit

shells

Deli meats partnership

News & trends7. More health boosts to natural foods – in this

case walnuts

New fresh produce for colorful, healthy

phytonutrients

Beverage update8. Cloudy days for P & G and Sunny Delight

Another juice drink runs dry

Trendwatch9. Organic Trade Association launches “Organic

for Kids” promotion

Let’s do lunch – unless you’re a British

worker

Consumers fight obesity with healthy

alternatives

Retail watch10. US retailers remain inventive to stay relevant

Supermarkets active in M & A transactions

Wal-Mart opens Beijing store

Healthy eating without the premium

Market trends11. Industry urges loosening of Canadian

vegetable oil regulations

29.How a barbecue impacts the Californian food

company

“Next generation” functional

beverages alliance

Technology innovation12. Cholesterol-lowering ingredient from Japan

Omega-3 as stable, dry powder

Double the soy protein in baked and snack

foods

Foodservice13. Mexican food keeps Yum Brands! satiated

In-Flight-Café to give airline passengers a

food choice

14. Impressive growth in US foodservice

Consumer trends15. Singles spend on themselves

16. Marketers failing to cash in on the gray pound

Functional foods17. Spain’s food and health trends

Innovation research19. Why new products succeed or fail in the

marketplace

Health claims20.A, B, C, D claims

Hot topics21. Companies face up to obesity responsibilities

24.World’s children at risk from junk food

manufacturing

Wal-Mart to invest in “reputation research”

Innovation celebration25. 75 years of innovation in the kitchen and

beyond

Ingredients case study27. Cranberry ingredients open up European

innovation trend

Food futures30. GMO controversy heightens

Nutrition trends31. Downsizing super-sized foods

Ingredient innovation34. Fighting fat with a fatty acid


Abbott Laboratories is potentially one of the

most important large functional food and

nutritional companies emerging in the world

today.

The global, broad-based health care company

is devoted to the discovery, development,

manufacture and marketing of pharmaceuticals,

nutritionals, and medical products, including

devices and diagnostics. The company employs

approximately 70,000 people and markets its

products in more than 130 countries. In 2002,

the Abbott’s sales were $17.7 billion.

Abbott has been active in a couple of areas

over the past few weeks to strengthen its

nutritional positioning. Perhaps the most

significant development is its agreement in July

to acquire the ZonePerfect Nutrition Company.

ZonePerfect Nutrition, based in Beverly, Mass.,

markets a line of healthy and nutritious products

for active people. The acquisition will expand

Abbott’s Ross Products Division into the weight

control categories.

Under the terms of the agreement, Abbott

will acquire all of the equity of ZonePerfect

Nutrition, a privately held company, for

approximately $160 million in cash. Founded in

1996, ZonePerfect Nutrition markets its products

through major food, drug and mass

merchandisers across the United States as well as

through its direct to consumer program.

ZonePerfect Nutrition’s product formulations

conform to a 40/30/30 carbohydrate, protein and

dietary fat ratio. The brand is squarely positioned

in the center of the rapidly growing healthy living

and weight control categories.

“The acquisition of ZonePerfect Nutrition

provides us with the fastest growing brand of

nutritional bars, and it affords the opportunity to

expand Abbott’s leading position in the medical

nutritional category into the healthy living

segment,” said Mark F. Gorman, vice president,

medical nutritionals, Abbott Laboratories. “The

healthy living category is growing very rapidly,

and Abbott is uniquely positioned to deliver high-

quality nutritional solutions to consumers in this

segment.”

“Our mission of providing ‘Nutrition for a

Time-Starved World’ underlines our success in

nutritional bars,” said Christopher P. Baker, chief

executive officer, ZonePerfect Nutrition.

In addition, switched on to consumer food

trends, Abbott is making a significant market

statement by changing from its well-established

cans to its ground-breaking Ensure consumer

product, and relauching the entire Ensure

nutritionals range in re-closable plastic bottles, a

first in the adult nutritional category.

The company says this is in response to

consumer demand for greater ease and

portability, and the new re-closable bottle offers a

more convenient way to enjoy Ensure. In fact,

consumer research for the company showed an

overwhelming preference for the re-closable

bottle versus the existing can.

“Through extensive consumer research, we

found our users wanted, and needed, a more

convenient nutrition option to fuel their active

lifestyles,” said Mark F. Gorman, vice president,

medical nutritionals, Abbott Laboratories. “Our

reclosable and portable Ensure bottle easily fits

into the lifestyles of busy, active adults, offering

them a delicious new nutritional option.”

Abbott’s Ross Products Division plans to

introduce the new Ensure re-closable bottle to all

of its existing retail sales outlets, including drug,

food, mass merchandisers and club stores. The

remaining varieties of the Ensure product line –

Ensure Plus, Ensure High Protein, Ensure High

Calcium, and Ensure Fiber With FOS – are

expected to be available in the re-closable bottle

over the next 18 months.

Abbott pioneered the market for adult

nutritionals more than three decades ago.

Abbott’s existing adult nutritional family of

products includes Ensure, a source of complete

balanced nutrition; Glucerna, a nutritional

product line for people with diabetes; and

ProSure, a specialized nutritional product for

people with cancer. www.ross.com ■

3innova August/September 2003

Company watch

Abbott Laboratories emergingas global nutritional leader

The original Ensure can

Gourmet meals-on-wheels with anutritional twist is the latest food fad forsome up-market consumers in downtownDetroit. All the meals delivered by HealthyGourmet Delivery are based on the ZoneDiet developed by Dr. Barry Sears, whichbecame popular when Hollywood starsstarted following the dietary regime.

But Healthy Gourmet Delivery co-founder Philip Ross explained, it’s reallyjust a matter of people wanting to havegood-tasting and nutritious food preparedfor them in imaginative ways.

“It’s really for anyone who wants toexperience the benefits of a properlybalanced diet,” Ross said. “We want to bea personal chef to anyone who would liketo eat well, lose weight and have moreenergy without having to do the shopping,cooking or cleaning up.”

Customers can visit the company’swebsite or call and choose from four mealplans, offering high-end foods such asflank steaks and fish, or vegetarian. Thediet is heavy with high-fiber fresh fruit andvegetables to provide carbohydrates andprotein. The business is projecting revenues

of more than $500,000. And the menu is far from ordinary fare.

Recent breakfast offerings included char-grilled white peach with fresh berry creamand turkey sausage, carrot and zucchinipancakes and smoked Norwegian salmonwith scrambled eggs.

Among lunch offerings were roastedstuffed Pablano peppers with baby wildrice and cheese, fresh seafood Gazpacho,and seared shrimp and scallops. For dinner,customers received selections featuringroast rose lamb, top round with Merlotdemi-glace, herb and lemon marinatedpickerel, and grilled baby artichoke hearts.

For around $40 a day, customers receivethree prepared and packaged meals andtwo snacks, from garden veggie burgers tostufffed silver dollar mushrooms with pinenut basil pesto. Or they can have mealsdelivered five or seven days a week totheir home or office within a limited area.Meals are delivered in sealed and insulatedcooler bags and come in disposable,microwave plastic containers, which can berecycled.www.healthygourmetdelivery.com

Firm offers gourmet meals-on-wheels based on Zone Diet


Kellogg’s have launched a nutritious

alternative to adult chocolate candy bars called

Krave. With nearly half the fat of leading candy

bars, as well as being a good source of protein and

calcium, Kellogg’s Krave snack bars claim to help

satisfy chocolate cravings and give bodies a boost.

Krave snack bars contain 11 essential vitamins and

minerals and 50% of daily value of antioxidants,

vitamins A, C and E, and have nearly as much

calcium as a cup of low fat cottage cheese.

According to recent Kellogg’s research, 47% of

women named chocolate as the food they crave

most and 6 out of 10 described chocolate as a

food that they “love.” Additionally, a similar study

found that 75% of cravings could be satisfied by

chocolate alone, and that 43% manage their

cravings by eating just a little bit of chocolate.

Finally, women listed weight gain (83%) and


Product and company news

Lifeway Foods, Inc. is expanding its La

Fruta(TM) product line, a drinkable yogurt

specifically designed to appeal to Hispanic

consumers. The La Fruta beverage now will be

available in horchata and tres leche flavors, as

well as the original four fruit-based varieties. The

company is also introducing a spreadable cheese

in the tres leche flavor, under the La Fruta brand.

The product additions reflect La Fruta’s

success since it was introduced in strawberry,

banana-strawberry, mango and pina colada

varieties in 2001. La Fruta is now sold across the

US through the Save-a-Lot chain and other retail

and specialty grocery stores in Hispanic

neighborhoods, with distribution continuing to

expand. The new La Fruta products are expected

to appear on store shelves by early September.

“We created La Fruta to tap into the fastest-

growing demographic market in the United

States, and it has proved to be an exceptionally

strong addition to our product portfolio,” said

Julie Smolyansky, President of Lifeway Foods.

“We expect the two new flavors and the new

cheese to help us continue to build the brand and

drive additional revenues among Hispanic

customers.”

La Fruta is a variation on Lifeway Kefir. La

Fruta contains essential vitamins, one-third of an

individual’s daily calcium needs, 8 grams of

protein, and “good” bacteria in the form of live

and active cultures that have been shown to

promote gastrointestinal health and other health

benefits.

Lifeway is a manufacturer of cultured,

probiotic and functional food products in the

health food industry, and is America’s leading

supplier of the cultured dairy product known as

kefir. The Company markets 12 flavors of kefir

and does a successful business exporting its

products to Canada. ■

Carbsense Foods, Inc., a manufacturer of all

natural, reduced-carbohydrate foods is introducing

21 new reduced-carbohydrate products. “We are

passionate about the low-carb category, and rolling

out 21 new SKUs is evidence that we’re strongly

committed to maintaining our leadership

position,” says Carbsense Marketing V.P., Kevin

Dalrymple.

Jim Haun, President of Carbsense Foods, adds,

“Launching 21 new items of this caliber in such a

short period of time may be unprecedented.” The

new products launched under the Carbsense

brands are Aramana and MiniCarb, and include

soy energy bars, pasta meal mixes, granola, hot

cereal, soy tortilla chips, soy pretzels and baking

mixes.

According to the Natural Marketing Institute’s

Health and Wellness Trends Report 2003, nearly

two-thirds of the US population consumed low-

carbohydrate and high-protein foods in 2002.

Additionally, the report indicates that 21 per cent of

all US households increased their use of low-carb

foods last year.

Carbsense Foods, incorporated in 2001, claims

a two-tier formula for their success, as Dalrymple

explains: “The leaders in our company are firmly

committed to low-carb eating in our own lives

[note: Dalrymple himself has dropped 40 lbs., now

comfortably below his weight as a high school

athlete]. We understand the wants and needs of

our customers. Secondly, with experience as senior

executives with some of the nation’s largest food

manufacturers, we’ve been able to create an

efficient manufacturing and logistic network that

enables us to typically ship orders the same day

they are received from anywhere in the country.” ■

21 new reduced carb products in one go!

health (42%) as the top reasons for worrying

about eating chocolate.

Available across the US, Kellogg’s Krave snack

bars can be found in the granola/cereal bar

section of major supermarkets and grocery stores

in two flavors, Chocolate Delight and Chocolate

Peanut. Chocolate delight features whipped

chocolate blended with toasted grains and toffee

bits in a chocolate coating, while chocolate peanut

flavor includes chewy nougat with crispy rice,

caramel and chopped peanuts in a chocolate

coating. ■

Conquer chocolate cravings with Krave

Lifeway Foods expandLa Fruta line

Grecian Delight Foods, a leadingmanufacturer and marketer of authenticMediterranean foods, is introducing a full-line retail offering to be branded Opaa! TheOpaa! line features gyros kits & entrées, pitabreads & chips, dips & sauces, and dressings& toppings.

Made from classic recipes with traditionalingredients and spices, this complete linemakes it easier for consumers to enjoyrestaurant quality Mediterranean meals athome, the company says.

Opaa! is strategically designed to capturemore of the growth in the Mediterraneancategory; a $1 billion market with projected50% growth in the next 10 years. And,Opaa! is being positioned to take advantageof the health benefits of the Mediterraneandiet.

Since its founding in 1974 by PeterParthenis, Grecian Delight has grown to over180 employees, including in-house researchchefs and food technology professionals,and has a state-of-the-art 200,000squarefoot production facility in the suburbsof Chicago. See www.greciandelight.com.

Mediterranean classics



Products and company news

FloraGLO brand lutein extends GRASstatus to new food categories

FloraGLO brand lutein has earnedexpanded GRAS (Generally Recognized AsSafe) status for increased inclusionamounts in its current GRAS foodcategories and for use as an ingredient innew food categories.

The new food categories include: bottledwater; carbonated beverages; instant andregular hot cereals; chewing gum; saladdressings; frozen yogurt; hard candy;energy, sport or isotonic drinks; vegetabledrinks; chewy and nougat candy; fruitsnacks; and infant/toddler foods (notincluding infant formula). Kemin Foods hasnow attained GRAS status for FloraGLOLutein in more food categories than anyother lutein ingredient manufacturer.

FloraGLO Lutein is the first luteinproduct with GRAS status, which itachieved in June 2001 for inclusion inbreakfast and granola bars, energy bars,energy drinks, fruit drinks, fruit juice, mealreplacement drinks, mixed vegetable juice,cereals and soy milk. In June 2002FloraGLO Lutein gained GRAS status foradditional product categories includingtomato-based pasta sauce, snack crackers,canned soups, ready-to-drink teas,refrigerated yogurt, liquid, frozen andpowdered egg substitute mixtures andfermented milk beverages.

The GRAS inclusion level for FloraGLOLutein among these products has nowbeen increased by a range of up to 200%.Lutein inclusion allowances per serving(Reference Amounts CustomarilyConsumed or RACC) now range from 0.3milligrams to 3 milligrams. The FloraGLO

Lutein inclusion allowancelimit for medical foods hasbeen increased to 20milligrams per day.

New zero and reduced trans-fat oils

The Archer Daniels Midland Companyhas launched NovaLipid, its brand namefor zero and reduced trans-fat oils andshortenings. NovaLipid’s range of oils andshortenings can be used in margarine,baking, frying, confectionery, snack andcereal products.

“With the introduction of the NovaLipidline, ADM can now provide customers withthe most complete range of options forzero and reduced trans-fat products,” saidPaul B. Mulhollem, President and ChiefOperating Officer of ADM.

Ingredients Dean Foods buys HorizonOrganic

The United States largest dairy company,

Dean Foods consolidated its hold on the organics

industry with a $216 million deal to buy

Longmont-based Horizon Organic Holding Corp.

The deal caps a $420 million spending spree that

gives Dean Foods control of two of the nation’s

largest organic brands, Horizon and Boulder-

based tofu and soy-milk maker White Wave.

Analysts said Dean’s acquisition of Horizon

Organic validates the fast growth and perceived

financial potential of the organic foods sector.

Dean had held a 13% stake in Horizon since

Horizon’s initial public stock offering in 1998.

Dean will pay $24 a share for the remaining 87%

of Horizon Organic.

“This is an indication of the maturation of the

organic industry,” said Dave Carter, chairman of

the National Organic Standards Board, an arm of

the US Department of Agriculture. “Some very

large companies, in this case Dean Foods, are

becoming important players in the organic foods

industry.”

Natural products stores such as Whole Foods

and Wild Oats logged $512 million in organic

dairy sales in 2002, up 17% from last year.

Organic non dairy beverages, which includes soy

milk, also grew 17% to $275 million, according to

The Natural Foods Merchandiser. Horizon sells

organic milk in about 62% of the nation’s

supermarkets. Horizon had revenue of $187.5

million and a net loss of $33,000 last year.

Chuck Marcy, president and chief executive of

Horizon, said he is pleased with Dean’s offer and

comforted by the way Dean handled the White

Wave acquisition last year – keeping White

Wave’s management structure intact and

allowing a degree of autonomy. “Dean buys

companies, and they work with the (existing)

management teams to grow them by working

with the strengths of the companies,” Marcy said.

While Dean Foods will increase Horizon’s

milk penetration to 70% or 80% of

supermarkets, Marcy said a bigger boost will

occur in Horizon’s organic butter, cheese and

yogurt lines, which now have a considerably

smaller presence in stores. ■

Three new vegetable juices from Japanese-

based company Kagome are now available in the

United States. The juices naturally provide a

supply of phytonutrients, containing the powerful

antioxidants lycopene and beta-carotene.

Kagome’s juices are made with patented

processes such as its low-heat pureeing Reverse

Osmosis method that retains the purest, most

natural flavors and colors of the tomatoes. Other

tomato processing methods can diminish a

juice’s color and flavor. Each 8-fluid-ounce

serving of True Vegetable Garden contains

approximately 23 milligrams of lycopene, Sweet

Summer Tomato Juice contains approximately 25

milligrams of lycopene and the Carrot Ginger

Zinger contains approximately 22 milligrams of

beta-carotene.

Founded in 1899 by Ichitaro Kanie, a

Japanese pioneer in tomato cultivation, Kagome

has grown to become the dominant producer of

tomato products and a major producer of other

vegetable and fruit foods in Japan.

All three Kagome juice varieties are made

with 100% juice, are lower in sodium and

calories and naturally fat-free. They do not

contain any artificial additives, preservatives or

added sugars. Kagome’s juices are part of the “5

A Day” for Better Health program, the nation’s

largest public-private nutrition education

initiative, with the goal of increasing fruit and

vegetable consumption to “5 A Day” for 75% of

Americans by 2010. ■

New juices high in antioxidants

Equi’s Ice Cream, of Hamilton, Lanarkshire,

has introduced an A.C.E. sorbet after David Equi

got the idea on a trip to Italy. The ice cream

company has created the sorbet with the added

antioxidant vitamins that is fat free, to try and

tackle west Scotland’s poor health record.

Mr Equi, believes it will appeal to figure-

conscious adults. The third-generation Italian,

whose grandfather Peter founded the cafe in

Hamilton in 1922, took the idea home with him

from a trade fair and was soon working on a

winning recipe for the lemon, orange and fresh

pink grapefruit sorbet. He added vitamins A, C

and E in powdered form and tested it on staff

and family before deciding to begin selling the

product.

He said: “In Italy, you get a number of things

with added vitamins and when I was at a big

trade show recently, lots of people were going for

this. Usually fat-free things are disgusting and do

not have a lot of flavor, but this is sharp and has a

nice citrus flavor. ■

Scottish ACE sorbet

Sun Sweet prune juice containing

Kemin Food’s lutein



Products and company news

YoCarb low carbohydrate yogurt

SouthWestFoods in Tyler,Texas, the makersof LeCarb FrozenDessert andLeCarb DairyDrink, low-carb

ice cream and milk alternatives, has nowintroduced YoCarb cultured dairy blend, aninnovative low-carbohydrate culturedproduct, which the company claims is thefirst of its kind in the world.

With 80% less sugar than regular low-fat yogurt and a maximum of 4 grams ofcarbohydrates per serving, YoCarb ispositioned as a practical replacement foryogurt fans and a healthy addition to low-carb and diabetic diets.

YoCarb contains half the calories ofregular low-fat yogurt, and has the lowestcombination of carbs, fat and calories ofany yogurt-like cultured dairy blend. Theproducts sweetened with Splenda.

“This is the third product in a low-carbohydrate line produced specifically tomeet the needs of the growing carb-conscious market,” said Fred Calvert,senior vice president SouthWest Foods.The company expects to introduce a low-carbohydrate frozen bar in the near future.

Atkins Nutritionals promotes sugar-free sports drink

ChampionLyte Beverages, Inc., a whollyowned subsidiary of ChampionLyteHoldings, Inc. has said that it sports drinkChampionLyte sports drink will be soldthrough the Atkins Nutritionals, Inc.website and promoted in the its cataloguefrom September. ChampionLyte Beverages,Inc. was recently established tomanufacture, market, sell and distributeChampionLyte, the first completely sugar-free entry in the multi-billion dollar isotonicsports drink market.

Boston Beer test marketing SamAdams light draft

The Boston Beer Co. is test marketingSam Adams Light draft beer in six cities.The draft is being test marketed inOrlando, Fla., Phoenix, San Francisco,Cleveland, Indianapolis and Hollywood,Calif. Sam Adams Light was launched in2001 and is sold in stores. The draft beer issold in bars and is drawn from kegs intoglasses. Sam Adams Light beer accountsfor about 25% of the brewer’s volume.Sam Adams Light is targeted to consumerswho drink light beers and “better beers.”

Products

Sorbet isn’t just for palate-cleansing at fancy

restaurants anymore – 7-Eleven, Inc. is

introducing the unique frozen gourmet dessert

in its stores this month.

Being manufactured by Island Way Sorbet,

the product doesn’t come in a paper bowl or on a

stick. Each of the five fruit flavors is served in its

own fruit shell. The fresh fruit is cut in half,

hollowed out and made into sorbet, returned to

its fruit shell and flash frozen. A spoon is

enclosed in each package. Flavors include orange,

lemon, apple, pineapple and coconut. Suggested

retail prices are $1.29 for lemon, orange and

apple and $1.99 for pineapple and coconut.

Four of the fruit varieties are low in calories

and fat, ranging from 50 to 70 calories, with 7 to

13 calories from fat. The coconut sorbet has 170

calories. The product is also being positioned as a

healthy alternative to full-fat ice creams.

Better-for-you natural and organic snacks

7-Eleven is revamping its snacking “image” by

offering several varieties of natural, low-fat and

organic chips from manufacturers likes The Hain

Celestial Group, Snyders and Rexall/Sundown.

Snacks and chips is an important business for 7-

Eleven, and the company believes that many

customers are looking for a healthier alternative

to the traditional offerings.

But 7-Eleven is making sure it follows market

trends – better-for-you snacks have become the

fastest-growing new business segment within the

US snack industry.

And as 7-Eleven Snack Master Kennith Fries

points out: “On any given day, 15 million

Americans are on the Atkins diet. One reason the

Atkins approach may have proved so popular is

that dieters didn’t feel like they were doing

without their favorite foods.”

“You basically have two types of customers

who are looking at labels, those who want to lose

weight and those who want to eat healthier,”

Fries said. “We want to duplicate the success

we’ve had since first introducing nutritional bars

with these better-for-you offerings in all areas of

the store.”

Fries considers the new natural and organic

as a category entirely different to the energy,

protein, weight-loss bars, beverages and snacks

that 7-Eleven already carries. All told, Fries

estimates that today’s typical 7- Eleven store

carries close to 100 different foods and beverages

that appeal to a health-conscious consumer.

But don’t write off all traditional convenience

store food items as less healthy choices. Even

some of those are showing up on high-protein

diets. Jerky is experiencing a resurgence in

popularity, since the high-protein diet craze

started. “The jerky snack section is another one

that is growing, and we’re looking at new jerky

products to add.”

7-Eleven offers first liquid-filled breath mint

7-Eleven Inc. is introducing what is said to be

the first liquid-filled breath mint in the US.

Available nationally at up to 5,300 participating 7-

Eleven stores, Momints is said to deliver a

“burst” of peppermint flavor that instantly

freshens breath. Encased in a patent-pending EZ

Slide pack, Momints’ tapered-edge packaging

allows the mints to be inconspicuously tucked

into even the tightest of jeans.

“Momints is the first product in what I think

will become the next major segment in the

breath mint market: liquid-filled mint capsules,”

said Derek Schmitt, confectionery category

manager, 7-Eleven, Inc. “Like breath strips

during the last two years, Momints represents

the next substantial evolution of breath mint

technology. After 18 months of product

development, Momints enters the $1 billion retail

market for mints and gums in the United States.

Momints is manufactured by Yosha! Enterprises

Inc. ■

7-Eleven introduces gourmetsorbet in fruit shells

Swift & Company and Specialty Foods Group,

Inc. (SFG) have signed an exclusive agreement to

produce a broad line of premium deli meats under

the Swift Premium brand that will be distributed

throughout to retail and food service outlets,

starting this autumn.

Under the terms of the agreement, SFG will

manufacture, market and distribute a broad array

of deli products, which include premium dry

sausages, smoked and cooked meats and deli sticks

and loaves. Swift described the deal as the first step

in a comprehensive plan to expand the Swift

Premium brand name into a variety of processed

meat products.

Swift & Company is the US’s third-largest beef,

pork and lamb processor, serving retail grocery

chains, wholesalers and foodservice venues with a

wide variety of products under the Swift Premium

and Swift brands. Based in Greeley, Colorado, the

company also owns Australia Meat Holdings, the

leading beef processor in Australia, and employs

more than 21,200 people worldwide. Specialty

Foods Group, Inc. is a subsidiary operating

company of Specialty Foods Group Income Fund

and an independent US producer and marketer of

premium brand processed meat products. ■

Deli meats partnership



News & trends

Colorful Harvest of Monterey, California, an

offshoot of Minneapolis-based Green Giant,

latest product offering is Fresh Merced Red corn,

an example of new crops bred through traditional

means – not by genetic engineering – to make

vegetables and fruits more nutritious. On the

way are purple broccoli, yellow carrots, red-leafed

spinach and orange cauliflower.

An increasing number of farmers are

experimenting with crops in new colors,

encouraged by heightened interest in “functional

foods.”

“What you are doing is adding color to the

plate,” said Santa Barbara-based Larry Kampa,

head of North America sales and marketing for

Danish company Daehnfeldt, which developed a

purple cauliflower and plans the first large

planting of an orange variety this summer in

California. “The consumer for the most part is

always looking for something a little new and

exciting to serve,” he said.

They’re spurred by a nationwide “five a day”

TV ad campaign by the Produce for Better

Health Foundation and books such as The Color

Code: A Revolutionary Eating Plan for Optimum

Health.

The red corn doesn’t look any different from

typical corn, except that the corn tassels are red

when the stalks are young. But inside, kernels

are deep red on top and white underneath, the

product of eight years of breeding by Oxnard-

based Seminis Vegetable Seeds in Nampa, Idaho.

Studies are planned for this summer, that

Merced Red partners hope will show the corn has

highly elevated levels of the naturally occurring

phytonutrient anthocyanin, the source of the red

in red cabbage and red wine grapes. That would

allow Colorful Harvest to promote the benefits of

plant-based compounds that are thought to

promote health.

At Daehnfeldt, the company’s colored

cauliflower is being developed, using traditional

breeding techniques, to emphasize naturally

occurring pigments, such as anthocyanin

(purple) and beta carotene (orange). One study

showed the purple variety, called Graffiti, has

approximately 200 times the amount of

anthocyanin in white cauliflower. ■

New fresh produce for colorful, healthy phytonutrients

The US Food and Drug Administration (FDA)

affirmed the health claim, “Supportive but not

conclusive research shows that eating 1.5 ounces

per day of walnuts as part of a diet low in

saturated fat and cholesterol may reduce the risk

of heart disease. See nutrition information for fat

content.” This FDA decision comes in response

to a petition filed by the California Walnut

Commission, which highlights a body of

international scientific research substantiating

the specific benefit of consuming walnuts as part

of a heart healthy diet in reducing the risk of

heart disease. The body of evidence suggests that

the nutritional composition of walnuts contribute

to these heart health benefits.

The 1.5 ounces of walnuts cited by the FDA

also more than fulfills the daily requirement of

essential omega-3 fatty acids. Among tree nuts,

walnuts are distinctive because of their

concentration of omega-3 fatty acids.

California’s walnut industry sets the world

quality standard and accounts for more than

99% of the commercial US supply and the

majority of the world trade. www.walnuts.org ■

More health boosts to natural foods – inthis case walnuts

Two new heart-healthy peanut varieties

developed by the US Agriculture Department

and university researchers are expected to reach

grocery shelves next year. The peanuts contain

high levels of oleic acid, the healthful

monounsaturated fat.

One of the new varieties, the Olin, is a type

of Spanish peanut – a small round nut covered

with reddish-brown skin. Spanish peanuts often

are used to make candy and peanut butter, as

well as salted nuts. The other, the Tamrun OL

01, is a kind of runner peanut. Runners are

mostly used in peanut butter.

Oleic acid appears in most peanuts. A

handful, 10 grams, of conventional roasted

peanuts can contain 5 grams of fat, 55% of

which is oleic acid. Conventional peanuts also

contain as much as 20% saturated fat.

The new peanuts contain much more oleic

acid. Of the 5 grams of fat in a 10-gram handful,

as much as 75% of the fat is oleic. They still

contain 20% saturated fat.

Seeds are already commercially available,

and some farmers planted them this year.

Officials expect the new peanuts to start

showing up in products on grocery shelves in

2004.

The two peanuts were created through plant

breeding. To come up with the Olin, Melouk

said breeders at Texas A&M University crossed a

peanut called the Tamspan 90 with an unnamed

high oleic line. For the Tamrun OL 01, they

crossed a relative, the Tamrun 96, with the high

oleic line. The entire effort took 10 years.

The new peanuts are the latest development

in peanut research by the Agriculture

Department’s Agricultural Research Service.

The agency recently began trying to help the 1.5

million people who are allergic to peanuts by

breeding a hypoallergenic variety. ■

Peanuts are also good for the heart



Beverage update

Adirondack Pure Springs Mt. Water Co.,Inc. new beverage “Pinnacle WOW”Energie High Drink, its new venture withnutritional supplement companyBodyonics, Ltd., is being distributed inGreat Earth Vitamin Stores giving theproduct distribution from New York toCalifornia.

Adirondack Pure Springs President &CEO, David Sackler said: “Great EarthVitamin Stores, with nearly 200 storesthroughout the country, has been aroundfor thirty years, is a strong, reputable namein the nutritional retail industry, and hasbeen recently selected as one of the “Top200” by Franchise Times magazine.”

Pinnacle WOW, or “Whacked OutWater,” is the first energy high drink thatis non-carbonated, sugar-free, calorie-free,and infused with caffeine from naturalsources, including Yerba Mate, Guarana,and Kola Nut, to provide a “great tasting”energy rush. Pinnacle WOW retails for 99cents per bottle in General NutritionCenters and Great Earth Vitamin Stores,and is available in 8 ounce PET bottles intwo flavors, Rockin’ Raspberry and SinfullyCitrus.

Being Looney pays off

Bravo! Foods International Corp., abrand development and marketingcompany that holds the Looney Tunes(TM)license to manufacture, promote anddistribute brand flavored milks, isexpanding the rollout of its Slammersbrand vitamin fortified flavored milk.

The company is using the Dutch Farmsdistribution system, whose core servicearea is the 150 mile radius around theChicago region, but also makes deliveriestwo to three times a week to the Jewelsand Dominicks supermarket chains and toover 700 independent grocers in 32 states.

Roy Warren, Bravo! Foods’ CEO, said:“Our national footprint is almostcomplete. We will soon have productdistribution throughout the US, Mexicoand Canada. Our initial rollout with DutchFarms has been highly successful with salesper store running twice our historicalaverage. We are very encouraged by thisprogress and look forward to introducingour low fat, vitamin fortified no sugaradded Slim Slammers line into thismarket.”

Bravo! Foods holds a license fromWarner Bros. Consumer Products to utilizethe Looney Tunes(TM) characters andnames on milk products throughout thefifty US States, Puerto Rico, the US VirginIslands, Canada, China and Mexico.

WOW sets to wow from New York to California

Procter & Gamble is looking to sell off its

top juice brands in a strategic overview of its

business activities as the company explores

alternatives with respect to its Sunny Delight

and Punica juice drink brands. P&G will

consider various alternative structures to

increase shareholder value, which could include

a sale of the brands and related assets.

Additionally, the company is seeking partners,

licensees, or other ways to commercialize its

considerable nutrition technologies.

“Exploring strategic options for P&G’s

business is an ongoing process. P&G’s strategy

for sustained growth is focused on building

from the core. A key element of our strategic

focus involves tough choices that enable us to

re-deploy resources and invest in core and new

businesses. This is one of those tough but right

choices,” said A.G. Lafley, P&G chairman,

president and chief executive.

“The Sunny Delight and Punica businesses

have made significant progress on delivering a

better cost structure, better brand equity and are

leading brands in their home markets,” said

Jorge P. Montoya, president of P&G’s global

snacks and beverages business. “However, while

the juice based market is large, the business

model is better for companies that have chosen

juice beverages as a corporate priority.”

Lafley added, “Following this decision, we’re

now focused on growing our snacks and coffee

businesses, where P&G has two billion dollar

brands with strong equities. Both Folgers and

Pringles have proprietary technology, a robust

innovation pipeline and solid business plans.”

P&G is now soliciting offers for the

refrigerated drink/juice businesses and will

consider sale or alternative offers for the

businesses as a group or as individual units.

About Sunny Delight, Punica and the Nutrition

Technologies

Originally created in Florida in 1964, Sunny

D is a leading brand in the US, Canada, Spain,

Portugal, the United Kingdom and France.

Since acquiring Sunny D in 1989, P&G has

more than quadrupled the sales of the brand

through geographic expansion, new flavors and

packages, and effective marketing. The brand’s

line-up includes Tangy Florida Style, Smooth

California Style, Tropical Caribbean, a calcium

fortified version, a new Lemonade and a variety

of sizes, including the fast selling new 333ml

Big D sports bottle.

Punica is a leading brand sold primarily in

Germany. Since acquiring Punica in 1984, P&G

has more than tripled the sales of the brand

through several innovations, including the

recent launch of Schorle and Tea and Fruit

flavors, and new PET packaging forms.

P&G’s nutrition technologies are extensive

and cover a wide variety of food and beverage

products enhancing both performance and

taste. ■

Cloudy days for P&G andSunny Delight

Coca-Cola is phasing out much of its Fruitopia

line of drinks after nearly a decade of unsuccessful

attempts to build the brand. Coke, which already

has begun making the change, is revamping a few

Fruitopia flavors under the better-known Minute

Maid label.

In the future, the old Fruitopia line will be

available only in Canada, where it has been

relatively successful, and in the United States as a

fountain drink. The partial demise of Fruitopia,

first reported by Beverage Digest and confirmed

by Coke, marks the end of an effort that started in

1994.

Fruitopia was intended to be a rival to the

Snapple juggernaut, coupling a hippie-ish image

with Coke’s distribution muscle. Fruitopia was one

of many pet projects of Coke’s former marketing

chief, Sergio Zyman. The company spent untold

sums on Fruitopia, including an initial marketing

budget of $30 million. The much-hyped brand got

plenty of attention. It was one of Time magazine’s

top new products of the year in 1994, along with

items such as the Wonderbra.

In 1997, Fruitopia entered the pantheon of

popular culture by being mentioned on The

Simpsons television show. The gag: A mock ad

said Fruitopia was made by hippies but

“distributed by a heartless, multinational

corporation.”

Even at its peak in 1999, Fruitopia was a

minor brand, with US sales of 44 million cases,

according to Beverage Digest. By 2002, Fruitopia

had trailed off to 19 million cases, less than such

small-time soft drinks as Coke’s 23-million-case

Fresca.

“In the US, Fruitopia gained modest traction,

but the 2001 introduction of the similar Minute

Maid line blew it away, due largely to the strength

of the Minute Maid name,” said John Sicher,

editor and publisher of Beverage Digest.

While Coke de-emphasizes Fruitopia, Pepsi has

changes afoot as well. It plans to drop its

FruitWorks line of products, along with Lipton

Brisk lemonade. Beverage Digest reported that

Pepsi plans to start a new line of similar drinks

under the Tropicana name. ■

Another juice drink runs dry


UK workers have no time for a lunch break is

the worrying picture painted by the results of an

ICM poll commissioned by the Public and

Commercial Services Union (PCS).

Over half the UK workforce (57%) take less

than thirty minutes for their lunch-break at work

(the legal minimum for an average working day).

62% of those surveyed said they skipped lunch or

lunched at their desk at least once a week, with

one in five saying they did this everyday. To

highlight the survey results, the Union hosted a

picnic in the park in London to raise awareness

on the long hours culture and to launch its work

life balance campaign.

Commenting on the findings Mark Serwotka,

PCS general secretary, said: “The survey findings

confirm what we already knew – long hours

working in Britain is reaching epidemic

proportions. British workers take shorter lunch

breaks, less holiday and work far longer hours

than our European counterparts.

“A half an hour lunch break is the legal

minimum for an average working day, but

shockingly over half the UK workforce take less

than this. Twenty percent never take a lunch

break at all. This sort of work pressure is not

healthy for the employee and it is not healthy for

business.

“The Public and Commercial Services Union

hosted the picnic in the park to encourage


Trendwatch

Consumers throughout the US are

recognizing the severity of the obesity problem

and migrating toward better-for-you products and

“light, lean, low and less-of” brands. According to

the newest issue of GMA/IRI Times & Trends,

supermarket sales of better-for-you foods, which

include soy products, nutritional/energy/wellness

bars, weight-control items and bottled energy,

sport and water beverages, have averaged 18%

growth over the past five years.

In addition, sales of “light, lean, low and less-

of” brands increased 6.7% to $5.9 billion during

2002, and the sales of popular weight

management beverages grew from $6.7 billion in

2001 to $7 billion in 2002.

“Products geared toward healthful eating

including lower-fat, no-fat and reduced sodium

meals, snacks and drinks experienced significant

growth over the past few years,” said Mike

Diegel, director, communications for the Grocery

Manufacturers of America. “This is clearly a sign

that consumers are more aware of the

importance of nutrition and a balanced diet. The

food industry will continue to address this

demand by offering more of these alternatives.”

The increased public attention to health and

nutrition is evident in the sales of products

containing soy, which has grown an impressive

60.7% over the past five years. In addition, sales

of nutritional/energy/health bars have

experienced a similar boost, rising 38% over the

same period. ■

Consumers fight obesitywith healthy alternatives

An Organic Family Menu Guide by celebrity

chefs, tips for getting organic food into the

schools, and a cost analysis showing organic, non

conventional foods as a bargain, are the key

components of the Organic for Kids program

launched in August by the US Organic Trade

Association (OTA).

“Choosing organic food is an easy way for

parents to protect their families while giving

them delicious foods and an understanding of

the need to protect our environment. The OTA’s

‘Organic for Kids’ program helps parents

incorporate organic food into their children’s

lives both at home and at school,” said Katherine

DiMatteo, OTA’s executive director.

DiMatteo noted that children are especially

vulnerable to pesticides, and says that organic

agriculture minimizes their exposure to toxic and

persistent pesticides in the foods they eat, the soil

in which they play, the air they breathe and the

water they drink. Children who have organic

diets have lower pesticide residues in their urine

than children fed conventionally grown foods,

according to recent research conducted by

scientists at the University of Washington.

Celebrated organic chef Nora Pouillon of

Washington, D.C. headed a team of organic chefs

from across the country, who contributed family-

friendly organic recipes for breakfast, lunch and

dinner, as well as personal anecdotes and

shopping and preparation tips. The chefs include

Akasha Richmond and Jesse Cool from the West,

Scott Uehlein from the Southwest, Odessa Piper

from the Midwest, and Michel Nischan and

Pouillon from the East.

“Food brings families together,” said Nora in

her introduction to the guide. “Now, with the

help of this Organic Family Menu Guide, you can

make organic food a part of your life. You will be

giving your children delicious, healthful meals,

and teaching them an invaluable life lesson about

where food comes from and how we can work

together to protect the earth.”

Getting organic food into the schools

A tool kit of resources to help parents get

organic foods into their children’s school is

offered in a series of articles provided by Elaine

Marie Lipson, author of The Organic Foods

Sourcebook. The kit includes “Eleven Tips for

Change” for getting organic foods into the

schools. These advise parents to do their

homework, avoid attacking foodservice staff, and

“start small, but don’t think small.” An

educational handout for parents to distribute –

“Organic Food and Children” covers the meaning

of “organic” and explains why organic foods may

matter most to children. Extensive resources

listings are provided as well. ■

Organic Trade Association launches“Organic for Kids” promotion

employees and their employers to take a lunch

break. The event is part of the union’s wider

Work/Life Balance campaign which aims to

address these issues and provide some positive

solutions.”

ICM Research interviewed a random selection

of 565 adults aged 18+ in full or part time work,

by telephone between the 20th and 22nd of June

2003. Interviews were conducted across the

country and the results weighted to the profile of

all adults. ■

Let’s do lunch – unless you’re a British worker



Retail watch

Supermarkets form the single largest sector

among the US Top 100 retailers with 26 of the

spots, according to STORES Magazine’s annual

Top 100 Retailers survey. In response to the

competition Wal-Mart has brought to the

grocery segment, supermarkets have adapted by

expanding their non-food offerings and

becoming mini-supercenters.

The survey says that retailers are looking to

new ideas and new tactics to remain

competitive. And, despite the year’s struggles,

some retailers are thriving. “A sluggish

economy, threats of terrorism, and a pending

war with Iraq made 2002 an extremely

challenging year for retail,” said Rick Gallagher,

STORES publisher and NRF Vice President.

“Most retailers have realized the need to

reevaluate their merchandising, their

marketing, and everything in between. The best

retailers understand that to remain competitive

they must continually reinvent themselves, and

we’ve seen some great creativity this year.”

Arkansas-based Wal-Mart leads the list as the

US’s largest retailer with 2002 sales of $246.5

billion, a 12.2% increase over the previous year.

Wal-Mart has generated enough grocery sales to

qualify as the largest US seller of supermarket

merchandise, but is expanding on new ideas to

grow the company even more. Recently, Wal-

Mart introduced a brand exclusive, the

Signature line from Levi’s. Additionally, Wal-

Mart is testing the online rental of DVDs.

Home Depot retained its place as the

second-largest US retailer, with 2002 sales of

$58.2 billion, an 8.8% increase over 2001.

Kroger preserved its number three status with

sales of $51.8 billion, a 3.3% increase over the

previous year.

A high rate of growth due to continued

success from a designer-oriented strategy sped

Target to the fourth-highest position, bumping

Sear, Roebuck,and Company to the number 5

spot. Costco advanced to the number six slot, up

two notches from 2002, ahead of Albertson’s

(no. 7) and Safeway (no. 8).

Rounding out the Top 10 retailers, JC

Penney advanced to the number nine position

(from no. 10 in 2002) due to the success of its

Eckerd’s drug stores. Kmart, which recently

emerged from bankruptcy, dropped to number

10 from seventh position.

Dollar stores continued high levels of growth

in 2002, growing by double-digit percentages

and significantly advancing in their individual

rankings from 2001.

Further information: 2003 Triversity Top 100

Retailers ranking is published in STORES

magazine (July issue) the official magazine of

the National Retail Federation. ■

US retailers remain inventive to stay relevant

Supermarkets were one of the few sectors of

the food industry actively acquiring or merging

with other companies in the first half of 2003,

racking up 20 deals, up from 12 during the first

six months of 2002.

On the whole, food industry merger and

acquisition activity was tepid in the first half of

2003. The Food Institute tracked 194 transactions,

down 11% from the same period in 2002 and a

drop of 34% from the first six months of 2001.

M&A activity among food processing firms held

steady – at 46 deals versus 49 during the first

half of 2002, but investment firms/banks, which

were striking a record number of deals in 2002,

slowed their pace, making 13 purchases, about

half of their level of activity from the first half of

2002, noted Catherine Pfister, Managing Editor,

at the Elmwood Park, NJ-based trade association.

Notable deals completed by the end of the

second quarter saw the FTC approval of the $2.8

billion merger of Nestle Holdings and Dreyer’s

Grand Ice Cream, after the firms agreed to shed

three Dreyer’s ice cream brands and Nestle’s US

distribution assets. Wal-Mart Stores agreed to sell

its McLane food distribution unit to Warren

Buffett’s Berkshire Hathaway and announced

plans to sell its Merit Distribution Services

business to Swift Transportation Co. Starbucks

Corp. disclosed a deal to acquire Seattle Coffee

Co. from AFC Enterprises in a $72 million

transaction, while Pilgrim’s Pride Corp. agreed to

buy the chicken operations of ConAgra Foods for

$590 million deal, making it the No. 2 US

chicken producer. ■

Supermarkets active in M&Atransactions

A new retail concept has been introduced into

the Southwest of the US, aimed at attracting

shoppers who want high quality foods at

discounted prices. Sunflower is a private company

started by Mike Gilliland and Libby Cook, a

husband-and-wife team that also co-founded Wild

Oats Markets. Gilliland and Cook, who are no

longer involved in Wild Oats, a publicly traded

company started in 1987, opened their first

Sunflower store in Albuquerque in July 2002 and

generated more than $10 million in sales in its

first year. They plan to open four to six stores a

year in Arizona for the next few years, the

founders say. As noted by its slogan, “Serious

food, silly prices,” the company wants shoppers

seeking high-quality foods at discounted prices.

The company plans to keep prices lower by

purchasing in volume from distributors, buying

fresh produce directly from growers and

aggressively managing costs, Millsap said.

Sunflower Markets will face competition from

other chains looking to serve a similar niche. The

most recent entry is Sprouts Farmers Market, a

California-based grocery chain, which opened a

store in Chandler last year and one in Scottsdale

this year. Sprouts officials have said they wanted

18 Valley stores in seven years. ■

Wal-Mart, the world’s biggest retailer, opened

its first outlet in China’s capital Beijing this

summer, making its inaugural foray into a major

Chinese city after setting up 22 stores elsewhere

in the country.

The opening represents a new step in Wal-

Mart’s penetration of the Chinese retail market,

seven years after it opened its first China outlet

in the southern city of Shenzhen. Wal-Mart

operates about 3,200 Wal-Mart and Sam’s Club

stores in the United States and more than 1,200

stores worldwide, including outlets in Germany,

Great Britain, Brazil, Argentina and South Korea.

Already the single largest buyer of Chinese

products, the company is rapidly becoming one

of the biggest sellers to the Chinese, too. If Wal-

Mart were a nation, it would be China’s eighth-

largest export destination.

Many of the best-known American food

products on sale in the Beijing outlet are made in

China. The Heinz baby food came from the

southern city of Guangzhou, the Budweiser beer

was brewed in Wuhan in the country’s center,

and the Tang drink mix comes from Tianjin, just

east of Beijing.

France’s Carrefour and PriceSmart of the

United States already have Beijing stores. Local

competitors are also getting into the business

too, including one called Wu Mart, located about

five minutes from the Wal-Mart store. ■

Wal-Martopens Beijingstore

Healthy eating without the premium



Market trends

The Vegetable Oil Industry of Canada

(VOIC), representing canola growers across

Canada, oilseed processors and manufacturers of

oilseed-based food products, such as canola-

based margarines and cooking oils, has asked

the Federal and Provincial Ministers of

Agriculture to complete long overdue

commitments to eliminate regulations that

discriminate against vegetable oil-based

alternatives to dairy products.

Ernie Doerksen of the Canadian Canola

Growers Association, a member of VOIC, said:

“Current nutrition recommendations support the

reduction of saturated “animal-based” fat and its

substitution with polyunsaturated and

monounsaturated [plant-based] fats found in

vegetable oils such as canola based products. Yet,

the marketing of vegetable-oil based alternative

foods is seriously hampered by differing

provincial regulations that were to have been

eliminated almost six years ago under the

Agreement on Internal Trade.”

Under the Agreement on Internal Trade

(AIT), agriculture ministers committed to

harmonize margarine standards and standards

regarding dairy blends (mixtures of butter and

margarine) and vegetable oil-based alternatives to

dairy products by September 1, 1997 but have

failed to do so in the almost six years that have

elapsed since the deadline. In addition, Ministers

were to have reviewed the scope and coverage of

the Agriculture Chapter of the AIT by September

1, 1997, but have repeatedly deferred that

commitment.

Members of VOIC presented Ministers in

advance of their July 8th annual meeting in

Winnipeg, a study from Finland that

demonstrates the significance of changes in the

choice of spread from high to low-in-saturated

fat products, and the impact on the rate of death

due to coronary heart disease. In 1972, 90% of

those studied used butter on bread and the

corresponding rate of death from coronary heart

disease was 671 persons per 100,000. In 1992,

20% used butter, with the majority using low-fat

spreads, margarine and blends with a

corresponding rate of death from coronary heart

disease of 324 per 100,000, a decline of more

than 50%.

Results of a Harvard University Study

conducted in the 1970s and 1980s, focusing on

90,000 women and 50,000 men and

subsequently verified by a 1989 National

Academy of Sciences report, found that the

incidence of heart disease was strongly

influenced by the type of dietary fat consumed.

Consumption of plant-based polyunsaturates and

monounsaturates decreased the risk, while

consumption of saturated fat increased the risk.

According to Health Canada, cardiovascular

disease results in $7.3 billion in direct costs and

$16.9 billion in indirect costs per year in Canada.

Recently, the Minister of Health, the Honourable

Anne McLellan observed that “…the

consequences of poor dietary habits are

significant, not only for individual Canadians’

health, but also for the welfare of the health

system itself…. The economic burden of a poor

diet alone is estimated to be $6.3 billion annually

in Canada, including direct health care costs of

$1.8 billion.”

Eliminating regulatory discrimination against

vegetable oil-based alternative foods would also

address the needs of the 20% of Canadians who

are dairy-intolerant. Up to 95% of adult Asians

are dairy-intolerant, 74% of First Nations People,

70% of the black community, and 15% of

Caucasians. As indicated by the recently released

2001 census data, visible minorities – two thirds

of whom are Chinese, South Asian and black –

now comprise 13.44% of the population

compared to 11.2% in 1996. Hence, Canada’s

dairy-intolerant sub-population is becoming

increasingly significant as a percentage of the

total population.

“Ministers of Agriculture are strongly

encouraged to address commitments under the

AIT that will improve the health of Canadians,

reduce health care costs to treat diet-related

illnesses, particularly cardiovascular disease, and

address the needs of the increasingly large dairy

intolerant population in Canada,” added

Doerksen.

In a letter to Industry Minister Allan Rock,

the Federal Agriculture Minister, Lyle Vanclief,

states that the objective of the Federal

government’s Agriculture Policy Framework

(APF) is to make Canada a world leader in food

safety, innovation and environmentally

responsible production. Yet, the APF is silent on

the elimination of internal trade barriers to

develop the domestic market. ■

Industry urges loosening of Canadian vegetable oil regulations

To protect Americans from the possibilityof eating food contaminated bybioterrorists, businesses and individuals whoproduce, import or distribute food will haveto meet four new requirements imposed bythe US Food and Drug Administration, theagency announced in August.

One rule holds that foreign and domesticfacilities that manufacture, process, pack orhold food to be consumed by humans oranimals in the United States, be required toregister with the agency.

The Food and Drug Administration (FDA)also wants to be given prior notice beforefood is imported or offered for import intothe United States.

Another rule would require specificrecords about a food’s “immediate previoussources and immediate subsequentrecipients” to be kept and retained. Retailfood operations are exempted frommaintaining records on immediate

subsequent recipients, when food is solddirectly to consumers.

A fourth rule would identify procedures.The secretary of Health and HumanServices, through the FDA, would take tostop foods “that present a serious healththreat to humans or animals” from enteringthe US food system.

The proposed rules, mandated by theBioterrorism Act of 2002, are expected togo into effect on December 12. The agencysaid it is currently reviewing publiccomments on the proposals.

Imported food from foreign facilities thatare required to register but have not doneso will be held at the port of entry until thefacility is registered. In addition, the agencywarned, it is a prohibited act to fail toregister if required to do so, which couldsubject the owner, operator, or agent-in-charge of the facility to criminal or civilpenalties.

The new requirement would apply to allaffected facilities for all foods and animalfeed products regulated by the FDA,including dietary supplements, infantformula, beverages – including alcoholicbeverages and food additives.

Some facilities would be exempt from thenew rules – farms, restaurants, certain petfood entities, retail food establishments,non-profit establishments that prepare orserve food, fishing vessels not engaged inprocessing, and facilities regulatedexclusively by the US Department ofAgriculture. Foreign facilities would beexempt “if the food from the facilityundergoes significant further processing orpackaging by another facility outside of theUnited States,” the FDA said.

The agency said it expects the finalregistration requirements will be publishedby mid-October. Source: Environment NewsService. www.ens-newswire.com

Tougher US food import controls aimed at bioterrorists



Technology innovation

Japanese company Kyowa Hakko Kogyo Co.,

Ltd., has developed a liquid version of CSPHP, its

popular cholesterol-lowering food ingredient and

is looking for new markets in Europe and North

America.

This technological breakthrough means that

food and drinks manufacturers can make

functional beverages that dramatically lower

cholesterol levels. The company says that since

its release in Japan in 2001 in powder form,

CSPHP has become a popular ingredient for

functional foods among Japanese consumers.

“We believe that CSPHP-containing drinks

will appeal more to consumers in the US and

Europe, where functional beverages are more

common than functional foods,” said Tadayasu

Furukawa, President of Kyowa Hakko’s Food

Company. “It requires such small volumes and is

so stable that almost any manufacturer can

incorporate it into their products. We think this

unique product will add real impetus to the

overall functional beverage market.”

Kyowa Hakko released a mild yogurt-flavored

CSPHP drink in Japan in May 2003. The

Company plans to market the liquid CSPHP

technology in the US through New York-based

Kyowa Hakko U.S.A., Inc.

CSPHP is a novel cholesterol-lowering

compound that combines soy protein hydrolyzate

and soy phospholipids to block the absorption of

harmful LDL cholesterol in the intestine. CSPHP

also has a unique property that promotes the

production of healthy HDL cholesterol.

Controlled trials indicated that 3 grams of

CSPHP taken every day for one month reduced

LDL-cholesterol by 17%, compared to a 13%

reduction with the same quantity of plant sterol

ester. In the same trials, a daily intake of 25

grams of soy protein resulted in a reduction of

LDL-cholesterol by only 10%.

Kyowa Hakko describes itself as an industry

leading global supplier to the food,

pharmaceutical and chemical industries, with net

sales in the fiscal year ending March 31, 2003 of

359 billion yen. The Company was established in

1949 and is headquartered in Tokyo. Areas of

expertise include the development and

application of fermentation technology, and new

forms of biotechnology. Kyowa Hakko’s core

pharmaceutical research focuses on drug

discovery using antibody-based technologies and

on developing therapeutic agents for cancer and

allergies. ■

Cholesterol-lowering ingredient from Japan

BioDelivery Sciences International, Inc.

through its subsidiary, Bioral Nutrient Delivery,

LLC (BND), has utilized its licensed and patented

technology, Bioral Delivery, to formulate an

Omega-3 fatty acid oil as a stable, dry powder

known as Bioral Omega-3.

Potential use for the delivery system is in

goods that are then baked or cooked, such as

cakes, muffins, pasta noodles, soups and cookies.

Other potential applications may include the use

of Bioral Omega-3 by manufacturers of cereals,

chips, and candy bars. In addition, the Company

has added the Bioral Omega-3 formulation to

beverages such as soy milk, milk, liquid yogurt,

grapefruit and orange juice, smoothies, sports

drinks, soft drinks, coffee, iced coffees, and other

beverages, in each case without altering taste or

odor.

The Company cautions though that all the

testing to date has been performed on a small

scale and there can be no assurances that Bioral

Omega-3 will scale and perform as well in a larger

production setting.

The development of Bioral Omega-3 is part of

a larger effort by BND to utilize the company’s

licensed encochleation technology platform to

enable BND to encapsulate or “wrap” a selected

nutrients into a crystalline structure, termed a

“cochleate” cylinder, for use in processed foods

and beverages. BND was formed on January 8,

2003 for the purpose of exploiting this application

of the Company’s licensed technology. Effective

April 1, 2003, the Company sub-licensed its

encochleation technology to BND for this purpose.

BND intends to identify food and beverage

manufacturers as potential licensees of its sub-

licensed technology, who will apply the

encochleating technology to their products. ■

Omega-3 as stable, dry powder

BTG, a global technology commercialization

company, and Cohen Marketing Services have

announced an agreement allowing BTG to

commercialize a technology that enables higher

soy content in several food product categories,

including baked goods, snack foods (chips,

cookies), and any other dough-based specialty

foods.

Because foods made with soy protein may

lower cholesterol and generally have lower

amounts of saturated fat, consumers have

embraced soy products and are demanding a

broader array of foods containing this ingredient.

In 2001, sales of soy foods in the US totaled $3.2

billion, up 17% over the year before, according to

a study by market research firms SPINS and

Soyatech.

Currently, very few dough and baked products

contain soy because dough made with a high

amount of soy could not be formulated properly

to meet the demands of food manufacturers.

This company’s soy dough formulation is said to

enable food manufacturers to more than double

the amount of soy in baked foods while providing

the consistency and texture consumers have

come to expect in these food products. ■

Double the soy protein inbaked and snack foods

Fiber Gel Technologies, Inc., a whollyowned subsidiary of Circle GroupHoldings, Inc., has successfully completedits pilot production of Ztrim, which canreplace up to 50% of fats and calories inprocessed and fast foods, withoutcompromising the taste and texturequalities consumers are accustomed to.Fiber Gel owns the exclusive, worldwidelicense for all fields of use to Z-Trim, anall-natural, carbohydrate-based fatreplacement developed by theAgricultural Research Service of theUnited States Department of Agriculture.Z-Trim can be used to decrease fat andcalories and increase insoluble healthyfiber in foods. The target markets for Z-Trim include: dairy (cheeses, dips,spreads) baked goods & confectionery(breads, cookies, candies, cakes, pies),cereals, pasta, snack foods (chips,crackers, energy bars), meats (burgers,lunch meats, deli meats, sausages, hotdogs, fish dogs), beverages (energydrinks, shakes, beers, weight-loss drinks),face and hand lotions.

Fiber Gel began sample production inApril 2003 of Z-Trim and has entered intomutual non-disclosure agreements anddiscussions with Nestle, McDonald’s,Mitsubishi Australia, Manildra Mills andProctor & Gamble to pursue potentialopportunities for Z-Trim. Fiber Gel alsoreceived a request from a large Canadianbrewing company to provide a low-calorie lager formula using Z-Trim.www.ztrim.com

Fiber-based fat replacer ready for market



Foodservice

Taco Bell, best known for selling tacos and

burritos for less than $1, has gone upscale by

introducing a $2.99 Chicken Caesar Grilled Stuft

Burrito and the Southwest Steak Border Bowl for

$3.49 and in so doing has gone from the weakest

to the strongest of the fast-food chains owned by

Yum Brands Inc.

Yum Brands, formerly known as Tricon

Global Restaurants, was spun off in 1997 by

PepsiCo Inc. Yum Brands also owns KFC and

Pizza Hut, and last year it added seafood chain

Long John Silver’s and A&W All-American

Restaurants.

Taco Bell is the nation’s largest Mexican fast-

food chain and fifth-largest fast-food company in

the United States, with $5.2 billion in sales last

year. But within Mexican fast food, Taco Bell is

pretty much the category, with nearly a 70%

market share, according to Technomic

Information Services, a Chicago restaurant

consulting firm. Smaller competitors are

privately held Del Taco Inc. of Lake Forest, Calif.,

and Taco John’s International Inc. of Cheyenne,

Wyo.

Much of the growth in Mexican restaurants is

seen at the higher-priced end. Last year, sales at

the McDonald’s Corp.-owned Chipotle chain rose

55% to $225 million, and sales at Wendy’s

International Inc.’s Baja Fresh chain gained 41%,

to $249 million.

At Taco Bell, its new goals were to have

cleaner, nicer-looking restaurants, and offer

higher-priced items with better ingredients.

“We’re repositioning the brand,” said Greg

Creed, Taco Bell’s chief marketing officer.

Earlier the company had a major headache

sorting out many financially troubled Taco Bell

franchises. In an 18-month span from 2000 until

the fall of 2001, Taco Bell’s same-store sales kept

falling. Some franchisees fell into bankruptcy,

and others, buried under debt from a recent

expansion push, pleaded for help from the

company.

Taco Bell ended up restructuring deals with

nearly 1,800 of its restaurants, or almost 30% of

the chain. The company bought 147 restaurants

for $76 million, spent an additional $28 million

to purchase land, buildings and equipment from

52 others, and committed $45 million for future

franchise capital expenditures. The company also

set up a $15 million loan program to help

troubled franchisees.

Rolling out a higher-price menu helped boost

Taco Bell’s average sales to $964,000 per

restaurant last year – nearly on par with rival

Burger King – and up 7.6% from $896,000 in

2000. Taco Bell also cut 25 seconds from its

delivery time at the drive-through windows,

which accounts for 66% of Taco Bell sales. ■

Mexican food keeps Yum Brands! satiated

US airlines are testing the concept of selling

in-flight meals to coach-class passengers rather

than giving them no food choices at all.

The idea is being pioneered by LSG Sky

Chefs, the world’s largest supplier of airplane

food, who want to sell high-quality boxed meals

to coach passengers who have been sadly

abused, or abandoned, by airline foodservice.

Under LSG’s concept, which half a dozen

airlines including America West Airlines,

Northwest Airlines, US Airways, Delta Air Lines

and United Airlines, have been testing off and

on since last year, the choice is still limited, but

the prospects are better because the new meals

are made in close cooperation with take-out

restaurant brands that are partners with LSG.

The idea of selling in-flight meals began to

take hold early last year when America West

Airlines, followed by Northwest Airlines, US

Airways, Delta Air Lines and United Airlines,

began test-marketing it on selected routes.

Hoping to create what Stephan Egli, LSG

Sky Chefs senior vice president for global

marketing, called a paradigm shift in airline

foodservice, LSG Sky Chefs did intensive

research and development on a food-for-sale

program called In-Flight Cafe.

Recently, US Airways became the first

carrier to offer the In-Flight Cafe meals in coach

seats on most domestic flights of 700 miles or

more. Lunch or dinner costs $10; breakfast is

$7. (Traditional foodservice remains free in

business class and first class.)

LSG, which currently produces more than

364 million traditional in-flight meals a year for

260 airlines worldwide, had been hammered by

meal cutbacks and the steep decline in the

number of flights after 9/11, Mr. Egli said.

“We went out, did some market research

over a year ago,” he said. “We asked, ‘Will you

pay for food on an airplane?’ Three-quarters

said they would, if there was no free meal being

served and if the food was good. The approach

we’re taking is it cannot be airplane food. It has

to be a much higher level of quality.”

So LSG began seeking brand-licensing

agreements with prominent take-out retailers,

who sent their own chefs to work with LSG

chefs to develop menus with signature dishes.

LSG’s initial restaurant partners are D’Amico &

Sons, T.G.I. Friday’s, Einstein Brothers,

Wolfgang Puck Express and Vie de France.

“The best way to do it is use established

brands because people are familiar with

Einstein, with T.G.I. Friday’s, with Wolfgang

Puck,” Mr. Egli said. “We sell it as a meal under

our licensing agreements, but everything is still

produced in our kitchens.”

If all goes well, LSG plans to soon add 10 or

15 more restaurant brands to its portfolio and

start rotating them across different airlines,

ensuring that frequent fliers will not grow

bored. ■

In-Flight-Café to give airlinepassengers a food choice



Foodservice

At a new restaurant in Orlando, Fla.,called Seasons 52 there is nothing on themenu more than 500 calories, desserts arethe size of a shot glass and servers canlook up nutritional information onhandheld computers. But far from afaddish diet restaurant, Seasons 52 is thelatest concept being tested by the verymainstream Darden Restaurants Inc., whichowns the Red Lobster and Olive Gardenchains.

Darden experiments with “health” concept

Collectively, 89 publicly traded US restaurant

companies posted a solid performance in 2002.

Foodservice information provider Technomic

Information Services found that average revenues

among public chain restaurant companies

increased 7.7% over 2001 and net operating

income was up 6.6%, despite the fact that 17

companies reported negative NOI.

This impressive growth supports the view that

foodservice, and particularly the restaurant

industry, is relatively resistant to recession and

remains a dynamic sector in the US economy.

US systemwide sales for the chains owned by

the 89 public companies were just shy of $100

billion in 2002, which accounts for 36% of total

restaurant industry sales. Public company

revenue reached $65.5 billion in 2002, up from

about $60.8 billion in 2001.

Notably, 39 publicly traded casual dining

chains enjoyed an average 12% increase in

revenues, edging out limited service restaurants

(up 9%) and significantly outpacing midscale

restaurants (up 3%). Average operating income

for casual dining chains was up 23%. Buca Inc.

posted 36.8% revenue growth in 2002 over 2001

and P.F. Chang’s China Bistro Inc. enjoyed

32.4% revenue growth, among the most

impressive casual dining operators.

In all, the 89 publicly traded US restaurant

companies operate 121,000 units, up 5.5% from

2001. Revenue per employee averaged $39,000

last year, up from $37,000 the prior year.

While McDonald’s Corp. is ranked No. 1 when

it comes to revenues ($15.4 billion) and assets

($23.9 billion), YUM! Brands Inc. (KFC, Pizza

Hut, Taco Bell, Long John Silver’s and A&W) is

No. 1 with respect to number of units (32,920).

IHOP Corp. led the publicly traded US

restaurant companies with respect to operating

margin in 2002 (24.2%). The Top 10 chains

ranked by% operating margin are as follows: (13

14 food service excel sheet)

In Technomic’s annual survey of the Top 100

leading chain restaurant companies published

earlier, they found that the annual rate of growth

Impressive growth in USfoodservice

2002 2001Rank Chain Operating Operating

Margin % Margin %1 IHOP Corp. 24.2 26.42 Sonic Corp. 20.6 20.43 CEC Entertainment Inc. 19.1 19.14 Applebee’s International Inc. 15.7 15.15 Wendy’s International Inc. 14.2 13.86 McDonald’s Corp. 13.7 18.17 YUM! Brands Inc. 13.3 12.88 Panera Bread Co. 12.5 10.89 Outback Steakhouse Inc. 12.3 11.1

10 Domino’s Inc. 12.3 10.1Source: Technomic Inc.

Top Ten Chains by Operating Margin

Rank Chain 2002 US % Sales % Unit Sales ($ millions) Change Change

1 Quizno's Classic Subs $615* 68% 39%2 Chipotle 225* 55 313 Panera Bread/ St. Louis Bread Co. 755 43 304 Baja Fresh Mexican Grill 249 41 395 Krispy Kreme 622 39 256 Culver's Frozen Yogurt 280 30 267 Buffalo Wild Wings Grill & Bar 282 28 268 P.F. Chang's China Bistro 400 28 219 Carabba's Italian Grill 343 24 19

10 Starbuck's 2,940 23 19Total $6,711 32% 25%

*Technomic estimate

The top ten fastest-growing chainsWith sales over $200 million, ranked by percentage increase in sales in 2002 vs. 2001

for these top players was 4.7%. US systemwide

sales for the Top 100 rose to $145.8 billion in

2002, up $6.6 billion over 2001 on a same-chain

basis.

Among the major foodservice segments

represented within the Top 100, the

Bakery/Other Sandwich category exhibited the

highest rate of growth at 13.7%. Donuts were a

close second, however, at 13%. Other foodservice

segments with sales growth over 8% were the

full-service categories Broad Menu and Italian.

While domestic sales growth in 2001

outpaced that of international operations, this

trend was reversed in 2002. Sales from

international operations among Top 100 US

companies increased 5.7% in 2002, significantly

higher than 1.8% in the prior year. Of the 188

chains within the top 100 restaurant companies,

only 76 chains operated units internationally.

International sales for the Top 100 chains

equaled roughly 34% of their domestic

counterparts.

In terms of total growth rates, Starbucks is

plainly the largest of the fastest-growing chains

(displayed in the chart). However, five other

major chains with sales over $1 billion also

achieved double-digit growth in 2002 including

Ruby Tuesday (17%), Subway (16%), Chili’s (13%),

Golden Corral (12%) and Sonic (11%).

Quick-casual chain growth has slowed but

continues to claim substantial and well-deserved

attention. Considered as a group, the 15 largest

quick-casual chains achieved collective sales

growth of over 12% in 2002, down from 17% in

2001. The fastest growing quick-casual chain was

Atlanta Bread Company, with over 59% sales

growth. Four other quick-casual operations-

Chipotle, Panera Bread/St. Louis Bread, Baja

Fresh Mexican Grill and Corner Bakery-all turned

in sales performances in excess of 15%.

While the Top 100 chains posted strong

growth in the aggregate, individual results varied

dramatically with sales ranging from 68% growth

to 14% declines; 24 of these chains showed sales

declines in 2002.

Both winners and losers appeared in each

segment and menu category. These widely mixed

results only serve to demonstrate the overall

competitiveness of the industry and the need for

suppliers and operators to carefully identify and

focus upon the winners. ■



Consumer trends

Going solo is becoming the norm rather than

the exception according to new research from

Datamonitor. One-third of all western Europeans

were living alone in 2002 – and more and more

people are choosing to do so. These new singles

are a force to be reckoned with – not lonely

pensioners or students squatting in a garret, but

affluent professionals with a growing desire to

spend their hard-earned money on themselves.

These affluent singles make a valuable market

for food, drinks and personal care, spending

€ 140/150 billion every year. Single person

households spend 50 per cent more per person on

CPG (consumer packaged goods) than two adult

households. Across Europe, the 35 per cent of the

market represented by people who live alone is

worth 10 per cent of the off-trade alcohol market,

40 per cent of the food market and 41 per cent of

the personal care market. This works out at an

average of € 3,022 per single person per year.

Between now and 2007, singles’ spending

overall Europe will have increased by 4% per year

to just under € 190 bn. Sweden, The Netherlands

and the UK will be the fastest growing markets.

Table 1 illustrates Single person households’ per

capita spending on food, drinks and personal care

(c) in western Europe 2002.

Late mid-lifers set to drive market value

Single Late Mid-lifers, aged between 35 and 49,

show the highest CPG spending of all people who

live alone due to their greater income, the typical

absence of dependents and greater desire to spend

money on their own comfort. As they make up 20

per cent of the total singles population, they are

definitely a profitable market. The majority of Late

Mid-Lifers are Long-term Singles who avoided

marriage in their Early Mid-life while the rest are

the New Singles – separated, divorced or widowed,

and possibly with dependent children.

The Long-term Singles are the most lucrative

sector of the single person household market.

Their earning power has increased and they will

usually have no dependents. They are

independently minded, place a high priority on

enjoying their life and have a higher than average

disposable income, making them a good target for

premium goods in all CPG arenas.

These consumers are far more likely to

premiumize on food and alcoholic drinks and are

the group with the least stigma about drinking

alone at home and the most desire to spend

money on high quality alcoholic drinks. The home

alone occasion is an important one for Long-term

Singles as it enables them to luxuriate in their

single status.

They also have a greater ability than other

consumers to spend money on high quality or

luxury personal care. Their motivations for using

personal care vary – with age many, particularly

women, feel the need to fight the signs of ageing

and try to maintain an attractive appearance. For

others, using high quality personal care is a

reflection of their own values. Pampering is also

very common and reflects another aspect of the

enjoyment of the home alone occasion.

The New Singles differ quite markedly from

long-term singles in terms of their behavior. They

usually have to have to form new social networks,

may have dependents and are not accustomed to

living alone.

Single Young Adults want convenience, fun and

communication

Single Young Adults between 18 and 24 are

comparatively rare, as most of them tend to live

with their parents or share with others. Single

Young Adults’ greatest needs are for

communication and fun – they need to socialize

in order to develop their social networks and

friendship groups, and meet new people. They

tend to spend large amounts of time outside their

homes. As a result they shop much more

frequently, as their eating habits are too irregular

to make bulk purchases of perishable goods a

good idea. These top-up shopping trips are

generally impulsive as well – quality of food is not

a high priority, whereas convenience and speed

are. Single Young Adults tend to eat a lot of ready

meals, rather than spend time cooking. They also

care a great deal about their appearance, thanks to

their frequent socializing. However, as they do not

have large incomes, they are limited in their ability

to spend as much as they would like in this area.

Single Young Adults’ active social lives mean

that they are a key market for on-trade alcohol and

in the UK they are responsible for one-third of the

on-trade alcohol consumption.

Greater concern for health at the heart of Single

Seniors’ lifestyle

Seniors make up the largest group of people

who live alone, due to bereavement as much as

choice, and thus the most valuable market. For

most, particularly those who have retired, money

is a key concern.

Seniors often become interested in

experimenting with cookery after their retirement

– however, their need for convenience also

increases. For some retirees, this is because they

live a more active life in retirement, for others it is

because they do not want to waste any more of

their time chopping vegetables. As a result, the

demand for convenience foods increases with age.

Datamonitor analyst, Andrew Russell

comments: “Targeting people who live alone

means understanding how their key need states

affect their demand for food, drinks and personal

care. Food manufacturers need to develop

products and marketing, which appeal to single

person householders looking for quick, convenient

and tasty meal solutions which they can enjoy in

front of the television or while phoning friends.

Personal care manufacturers need to help people

living alone to feel good about themselves by

creating an attractive, confident image. Drinks

manufacturers need to target the desire to

premiumize in order to enjoy a greater quality of

life – something most people living alone feel they

deserve.”

Source: Targeting the Needs of People who

Live Alone. See www.datamonitor.com for further

details. ■

A new report from independent market analyst Datamonitor reveals how the soaring

number of single households and their ever-increasing spending power present

manufacturers and retailers with a unique opportunity to tap into a highly lucrative

market.

€/year per capita 18-24 25-34 35-49 50+France 2,619 3,128 3,596 3,199Germany 2,587 2,631 3,014 2,694Italy 3,298 3,337 3,727 3,473Netherlands 2,166 2,392 3,063 2,637Spain 2,076 2,052 2,228 2,072Sweden 4,629 4,237 5,633 4,796UK 3,942 3,773 4,463 3,285Other 2,998 2,991 3,510 3,117

Overall 2,699 2,991 3,510 3,117

Source: Datamonitor

Table 1: Single person households’ per capita spending on food, drinks and personal care (EUR) western Europe 2002

Singles spend onthemselves


According to Datamonitor “seniors” remain

overlooked by marketers and the packaged goods

industry when it comes to product, marketing

and advertising. Between 1997 and 2007, the

number of European Seniors is expected to rise

significantly from 127.4 million to 147 million in

2007. This, together with the fact that they

possess high disposable incomes, makes them a

highly attractive and profitable segment.

“This rise in number represents an interesting

social phenomenon as well as an exciting, yet

often overlooked opportunity for the packaged

goods industry. Changing attitudes and

consumption habits of both current and future

cohorts of 50-59 year olds will herald a “new-age”

of Senior consumerism,” comments Daniel Bone,

Datamonitor consumer markets analyst and

author of the report.

Time to respond to the WOOFS

Between 1997 and 2007, the number of

European Seniors is set to rise by over 15% and

reach 147 million. This, together with the fact that

they possess high disposable incomes, makes

them a highly attractive and profitable segment.

Possessing high disposable incomes, many

can be considered Well Off Older Folk (WOOFS),

particularly those aged between 50 and 64. The

European average disposable income of this age

group equates to € 19,800 in 2002, compared to

€ 25,324 in the UK where it is expected to rise to

€ 27,487 by 2007. The drivers behind this

income trend include empty nesthood, higher

earnings, an increased likelihood of a large

inheritance and lessening impacts of long-term

financial payments.

High levels of inequality exist amongst Senior

consumers though. Those aged 65+ are on a

lower income and with the pension crisis

deepening, there is little chance of the gap

diminishing. Consequently, principles of saving

and simplicity remain highly applicable to Senior

consumerism, particularly for older consumers

who possess more conservative values stemming

from their generational experiences.

A new age of senior consumerism

Europeans turning 50 now mark the first

generation of mass consumers who have grown

up immersed in a consumer culture.

Consequently, the manner in which they will

behave and consume will be markedly different

from their parents. They have grown up using

brands to help construct their identities. The

desire to be seen consuming the right products is

a need that will accompany them in the Senior

lifestage. As a result of increasing hedonism, an

innate fear of ageing and their consumption

history, Seniors are more and more likely to

become adopters of so-called youthful brands.

“Contemporary Seniors are also subject to

greater influence from their children. Due to

delays in the average age of first births and a

growing tendency for young adults to remain in

the parental home for longer, current and future

cohorts of Seniors will be subject to growing

influence from their off-spring,” comments

Daniel Bone. “This will only further enhance their

tendencies to adopt consumption habits typically

associated with youth culture,” he concludes.

Marketers must capitalize on “ageless

marketing”

Although there remains a tendency to see

Seniors as a homogenous group, Datamonitor

finds that the over 50s across Europe are a highly

diverse group of individuals, both in terms of

attitudes and lifestyles.

In order to capitalize on the growing number

of European Senior consumers and their

comparatively high disposable incomes,

marketers must show greater sensitivity to their

changing lifestyles. With a new generation of

Senior consumers and a blurring of values

between the so-called “older” and “younger” age

groups, CPG players should follow the example of

others such as GAP in realizing that they must

make fashionable products available to and

inclusive of Senior consumers. GAP’s “ageless”

campaigns partly account for its popularity with

mature consumers, especially those seeking to

retain cool credibility.

However, a significant reason for advertisers

shying away from consumers over 50 is the

conventional wisdom that they are very brand

loyal and less likely than younger people to try

new products. “This is perhaps the greatest

marketing myth associated with Senior

consumers and stems from historic and

stereotypical references,” says Bone. “In reality,

many Seniors are moving into a new phase of life

ready to experience new things, particularly once

they are unencumbered by children. Critically,

food purchases tend to come into line with food

preferences once the kids leave home simply

because there are fewer people to please. They

have more time to focus upon themselves and

this is often reflected by different consumption

patterns,” he continues.

Seniors increasingly cynical of advertising

In a marketing world still obsessed with youth

culture, few marketing campaigns and associated

advertising messages speak explicitly to Seniors.

And when they do, there is a tendency to

stereotype and patronise their lifestyles or for the

advertisement to lack relevance. Marketers

continue to show reluctance in using older

models in advertisements even though the over

50s want to see more people their own age in

commercials.

“Given that the world of advertising has

evolved away from simplistic structures to

abstract messages that are inappropriate for older

people, Seniors have become increasingly cynical

of advertising. This means they often turn to

friends and family as more trusted and credible

sources of information,” comments Bone.

“Marketers can communicate to Seniors by

embracing Senior specific media as well as

portraying Senior lifestyles more positively

through the use of active images which illustrate

their enjoyment of life thus leveraging the

positive values of maturity.”

NOTE: Datamonitor’s report, “Targeting

Seniors Effectively” provides information about

how social trends, life experiences and needs

impact seniors’ purchasing behavior. See

www.datamonitor.com for further details. ■


Consumer trends

Marketers failing to cash in onthe gray poundDatamonitor have also released a new

report entitled, “Targeting Seniors

Effectively,” which reveals that Seniors, in

particular those aged 50 to 64, which they

say are one the most affluent segments of

European society, both in terms of income

and wealth.

€/year per capita Age 2002 2007 % change 2002-2007UK 25-49 22,002 23,162 5.3

50-64 25,324 27,487 8.565+ 16,294 17,359 2.6

NB: 2007 forecasts are based upon inflation rates and 1997-02 trends identified fromEurostat figures.

Source: Datamonitor, OECD and Eurostat

Table 1: Distribution of mean net income per capita by age, 2002-07


Walk into any Spanish super Mercado and you

may find it hard to locate any fresh milk. But long-

life milk with additives? There are more to satisfy

even the most faddish health nut and perhaps

encapsulates what is happening to Spanish eating

habits. Yes, people are more interested in eating

healthier – the traditional Mediterranean diet of

fish, vegs and olive oil is making a comeback – but

many also want it conveniently says Dr Ramon

Segura Cardona, a food science specialist at the

Universitat de Barcelona.

Hence the explosion in functional foods on the

Iberian peninsular, and perhaps the decline in

pure unadulterated but somewhat inconvenient

foods such as fresh milk – it goes off. Food

companies have also latched onto the growing

trend realizing functional foods as a way of adding

value to existing traditional foods.

Now the research and development of

innovative functional food products is increasing

exponentially, particularly for those products that

have the potential to reduce morbidity and

mortality. And of course with Spain’s rapidly aging

population, there is an increased interest in foods

that promote a healthier lifestyle.

Dairy products lead in functional foods

The concept of functional food refers to those

foods that incorporate components or ingredients

that promote human health over and beyond basic

nutrition. Born in Japan in the 1980s, it has

surged in the US and Europe lately.

Recently the nation’s biggest dairy company,

Puleva, launched a milk where the saturated fat

content was replaced with fatty acids such as

Omega-3. Success has been so great that its

Omega-3 Milk now represents 60 per cent of its

milk sales.

“Fortified foods may well have become popular

as habits in Spain changed,” says Dr Cardona.

“People are eating out more, eating more on the

go. It would be better if we had natural fortified

foods, greens, nuts etc. But as lifestyles change will

be natural, then perhaps demand for these type of

added functional foods will become popular in the

‘ready to go’ form.”

With the Spanish economy experiencing steady

growth, and an increase in consumer confidence

and personal income the consumer foodservice

market in Spain has witnessed remarkable growth

recently. Last year the market increased in value

terms by 22.6%. In 2001, the market stood at

€ 24,640 million. According to a Spanish

government report on the food industry, changes

in working patterns, such as the increasing

number of working women and the positive

evolution of tourism in Spain were key drivers of

the market.

The new and emerging market for

nutraceuticals and functional foods – natural,

bioactive chemical compounds with health-

promoting, disease-preventing or medicinal

properties – is driven by an increasing consumer

understanding of the link between diet and

disease, rising health-care costs, and advances in

food technology and nutrition research.

Media and word of mouth fuels consumer

demand

Word of mouth, marketing and advertising

campaigns, and media interest have also helped

the boom in functional foods, with many Spanish

doctors also recommending patients switch to

certain foods that benefit from added health

ingredients such as Actimel’s milk products with

added Omega 3. This additive, like others, has

been much touted as a rich substitute for

beneficial fish oil which has links to a low rate of

heart disease in some countries such as Japan.

With demand growing steadily, food companies

such as Puleva have been beefing up their biotech

departments to find new products. Puleva Biotech

(PB) – established in 2000 as part of Spain’s

largest food corporation Ebro Puleva – counts on

the experience and knowledge of more than 70

scientists at its R&D center in Granada, where it

develops natural food additives.

For a full 30 years before that, the company has

been a pioneer in the functional foods business,

developing, amongst other research, the first

nucleotide-supplemented infant formulae and one

of the first patents for an industrial process for

extraction and purification of Omega-3 and

Omega-3 fatty acids. The development of a novel

mixture of oils and fats for infant and adult

nutrition led the company to launch some its top

selling brands such as Puleva Calcio (milk with

added calcium), Puleva Peques, Puleva Mamá

(with folic acid for mums-to-be) and Puleva

Omega-3.

The company claims Puleva Omega-3 is the

first dairy product that combines the nutritional

benefits of semi-skimmed milk and a healthy fat

that is rich in unsaturated and Omega-3 fatty acids.

Sales boom for Puleva

Sales of these products have boomed in Spain,

despite a higher price tag than regular milk. Ebro

Puleva reported a 19% rise in first-half net profit to

€ 63.7m this year, from € 53.6m in the previous

year. The company’s sales fell 9.3% to € 973.6m

due to the divestment of some non-core units, but

sales of its core sugar, dairy and rice businesses

rose 22%.

“I think I can put the success of our products

down to the fact that not only is our research

meticulous but we never lose sight of the fact that

not only must food provide a health benefit with

its intake but, furthermore, it must be nice and

tasty, which constitutes the main difference with

medicines and drugs,” says a Puleva spokesman.

The food giant’s latest development is a new

anti-cholesterol compound, CV-17, a variant of the


Functional foods

Spain’s food and health trendsSpain has become one of the most

innovative and fastest growing European

markets for “functional foods.” Michael

FitzPatrick reports from Barcelona on

some of the more prominent health

enhancing products currently wooing

Spanish consumers.

Danone’s Actimel


omega-3 essential fatty acid found in oil-rich fish,

which was launched in Spain in March.

Javier Tallada, chairman of Spain’s Puleva

Biotech, told Reuters news agency that these type

of milk supplements will account for over 50 per

cent of the dairy products market in the years to

come.

The new additive is claimed to significantly

reduce factors that can cause heart disease, such as

cholesterol buildup, when taken in small daily

doses, and is the first product of PB in its research

to find new health ingredients. Puleva Biotech now

plans to produce 1.5 billion liters of the fat, which

would be used by the parent company Puleva

Food.

Puleva’s future research plans

Nor is Puleva Biotech stopping there. It plans

to open a microorganism factory in 2004 and

another biotechnology plant in 2005, while

currently Puleva Biotech is working on nine

projects in varying stages of development.

Recently, the company applied for a global

patent for a product, which it believes could

prevent the contraction of certain degenerative

diseases of the nervous system for which there is

no current cure – such as Alzheimer’s and

Parkinson’s disease. However scientists are still

cautious about the benefits of the new research.

The company may achieve encouraging results

from animal testing, but to date there have not

been any tests conducted on humans. Puleva

Biotech hopes to market this product from 2006.

“There are two, rather obvious, potential

outcomes,” says investor analyst Javier Mata at

Madrid-based bank Banesto Bolsa.

“If the initiative is successful, then PB has

effectively discovered the cure for one of the 21st

century’s cruellest illnesses,” he says. Between

25% and 50% of people over 85 years of age suffer

from Alzheimer’s.

“We would be facing one of the greatest

medical discoveries of all time, comparable to the

discovery of penicillin. By 2050 the world’s

population of over 60s will have tripled to 2

billion. The market potential for such a product is

comparable to that currently enjoyed by Coca-Cola.

“If on the other hand this attempt to cure this

terrible disease is left on the cutting floor, then we

are again facing an investment boom which could

make the 2000 technology bubble pale in

comparison.” Growth in the functional food

business in Spain rests with the success or failure

of the numerous patents pending on PB’s research

and that of other companies, he adds. The science

must be proved first if functional foods are really

to take off.

Puleva bullish about functional foods

To back up their claims, Puleva scientists

recently published their paper on n-3 fatty acids

and folic acid enriched milk. The study, published

in the peer reviewed Clinical Nutrition, looked at

the use of Omega 3 in healthy volunteers aged 45-

65 and its role in reducing cardiovascular risk

factors.

“The question is not whether these products

can be successfully commercialized, but whether

the ‘inventors’ of these products will accrue

extraordinary profits as a result. We should not

forget that it is substantially more difficult to

develop and market foods with health benefits

than plain foods. Every day the media bombard us

with advice, often confusing and contradictory, as

to what we should and should not be eating,” says

Mata.

Nonetheless, Puleva is bullish about its success

chances and points to its latest earnings results.

Up to a third more expensive than traditional

UHT milk, which is the biggest seller in Spain, the

new fortified milks are obviously very profitable.

Sales of milk and dairy products varied greatly

last year, according to the latest findings from the

Spanish Farm ministry (MAPA). Liquid milk sales

declined slightly during the year, down 0.8 per

cent in volume terms, as a result of a 3 per cent

hike in prices caused by the launch of several new

brands of value-added fortified milk.

Dairy products, on the other hand, registered a

3 per cent increase in volume sales to 35.2 kg per

capita per year. The volume increase came despite

a 13.6 per cent rise in prices during the year,

following on from the 7 per cent increase

registered in the previous year. The market of

fresh lacteos products continues to grow in Spain

(between 3% and 5%), owing mainly to the

continuous innovation of new products.

Yogurts help fuel growth in Spain’s dairy

category

And it appears to be yogurts that are lifting this

trend, particularly probiotic drinking yogurts such

as Danone’s Actimel which has become a ¤ 350

million brand, turning in a 40% annual growth.

This makes it the biggest functional food success

story in Europe. And its biggest fans? The Spanish

people.

In Spain, the penetration is a massive 30% of

households, easily beating out other EU states

such as the UK, for example, where Actimel’s

household penetration is a mere 8%. And, claims

the company, there is room for more growth still.

“Danone is unquestionably the market leader,”

says Danone spokesman Jose A. Zaldua. “We

produce and sell about 450,000 tons of products,

which generated earnings of € 983.34 million in

2002 and we still see opportunities for growth in

the health yogurt sector.”

Supported by a huge marketing and advertising

campaign, the company has also been very

aggressively mailing samplings. Over 30% of

households will be sampled in a single year. “This

has been central to our success, as the public gets

to realize that not only is it a healthy product, it

tastes great too!” says Zaldua.

Other functional foods now gaining market

success

The success with valued added health foods

has not just been restricted to milk products on

the Iberian peninsular. Over recent years, Spain

has seen something of a gold rush in

manufacturers racing to design functional foods

that tackle all kinds of health concerns. Products

with added antioxidants, blue-green algae, added

calcium, new dietary fibres, and of course fatty

acids such as omega 3.

Amway de Espana, for example, has developed

spaghetti that is rich in vitamins, proteins, mineral

salts and fibre while valentine-shaped hearts on

labels abound implying a heart-healthy product.

Grupo Leche Pascual, Spain introduced, in 2002,

an orange juice and soy drink with a heart-shaped

sliced orange on its front panel claiming to “care

for the heart” it now joins others in the

burgeoning health drinks field.

Meanwhile last year, food company Dhul

launched a chilled version of a Catalunya favourite

– crème caramel – containing omega 3 and

vitamin E. And about the same time Industrias

Rodriguez introduced Biosan Activa with omega 3

plus high levels of fortification with eight essential

vitamins.

Consumers in Spain can now join their

European neighbours in Belgium and Switzerland

in enjoying a range of food products endorsed by

the Beneo program. Launched over two years ago

by Belgian ingredients company Orafti, the

program brings together prebiotic ingredients and

innovative food products under the same symbol.

Shoppers can choose from a variety of fortified

breads, cakes and other food products.

The fortified foods market seems bound to go

from strength to strength. As elsewhere, the focus

of functional foods development in the next five

years will be on products targeted at heart health,

gut and bone health, performance and general

well-being. The emergence of “gender-specific”

functional food – products formulated to take into

account the different nutritional requirements and

disease profiles of men and women – are also

poised for growth, according to industry

commentators. The growing awareness that

nutritional requirements change throughout life

could also lead to the emergence of functional

foods for specific life stages – for example,

childhood, teenage, midlife and retirement.

Successful commercialization – the real

challenge

Mata even goes so far as to say that functional

foods will be the future of the food industry in

Spain and elsewhere in the developed world.

“Functional food is the future of the food industry.

The challenge is the successful commercialization

o the products,” he says.

Prof Cardona agrees that growth in this area is

inevitable. “However, it may be detrimental to the

health of Spain and I would prefer to see people

take up true functional foods, such as more fish,

nuts vegetables and so on.

“We may have successfully modified much of

our milk, but I’m not convinced that the added

ingredients are so effective. Maybe they are a good

way of educating people about the importance of

fatty acids. In Spain we had a terrifically healthy

diet, but these days we are regrettably following

the American style.”

Either way functional foods – pre-packaged or

straight from the local fresh food market – are

here to stay again in Spain. ■


Functional foods


Despite increased NPD emphasis, new

product success rate remains stagnant at 7%.

Most new product managers (74%) say their

management and companies are more

committed to improving their new product

process and results than ever before. Yet despite

the increased commitment, 93% of the industry’s

new product efforts fail. These were among the

key findings of the Innovation Survey™ among

new product managers and top management of

76 major manufacturers. These executives

reported that only 16% of the new products that

their companies invest financial, human and

other resources in, make it to market. And of

those that do reach the shelf, only 43% meet their

major business objectives, resulting in a

cumulative 7% success rate.

The participating marketers in the survey

represented a diverse range of major food,

beverage, HBA, household, pharmaceutical and

other consumer driven industries. They pointed

to a long list of different reasons for the shortfall,

including the lack of adequate marketing

support, restrictive paybacks, price value and

advertising issues. Some executives also found

fault with their development process, citing

unpredictable market research, packaging

problems or products that don’t deliver. However,

most managers seemed focused at three key

reasons for the increasing failure rate.

The top reason (74% of NPD managers) was

that their new products lacked a competitive

point-of-difference. Consumers didn’t perceive

anything meaningfully different to separate these

new entries from all their other current choices.

Simply put, many new products are viewed as a

“me too.”

The second greatest contributor, according to

63% of NPD managers, was that their strategic

vision lacked a clear focus. In some cases, the

vision is to combat a competitive entry, but the

sole focus often becomes countering the

competitor, not necessarily upgrading the

offering for the consumer. In other instances, the

growth vision was based on a marketing concept

or physical product, whose potential is often

interpreted differently by management,

marketing or R&D. As a result, the idea or new

technology is often not clearly “focused” at

addressing a specific unmet consumer need or

market gap.

The third largest factor was a positioning

problem. Many managers said while their new

product’s promise proved persuasive in their pre-

market research, it was another matter in market.

Some said the product’s benefit was not easily

recognized by consumers on shelf, while others

felt it didn’t prove differentiating or “ownable.”

The most intriguing findings came in the

follow-up interviews, when we asked if a 7%

success rate was acceptable. The survey

participants were split on this issue, with many

finding the low hit rate totally unacceptable. But

significantly, the executives at the more

successful companies felt a 7% hit rate was

tolerable if their company managed the product

process properly. They stressed that development

is a “long odds game,” that one needed to play

accordingly. Their processes emphasizes

screening lots of ideas up-front and weeding out

all the weak ideas early, while risk and exposure

is minimal. Their priority is to reserve costly

development support for the ideas that

demonstrated strong potential in early research.

Why weak ideas get through

However, the majority surveyed agreed that a

57% failure rate for products introduced into the

market was prohibitive, considering that the cost

of developing and supporting a new entry can

exceed $20-50 million. This raised some serious

questions about how so many weak ideas make it

through the process? Why aren’t these consumer

driven concept or product issues, which are often

so obvious in market, spotted during all the

extensive “consumer” processes that many major

companies employ?

Based on all our development experience and

consistent reactions from follow-ups with survey

participants, one reason stands out. Most new

product processes lack a genuine consumer

focus, despite giving considerable attention and

budgets to consumer research. Marketers pointed


Innovation research

Why new products succeed orfail in the marketplaceEd Ogiba, president of Group EFO, a new

product consultancy located in Weston,

CT, highlights some of the key findings

from their Innovation Survey™, which

explores the innovation process and the

factors for success in new product

development.

Average % of products Success Rate By Step

(%) (%)What percentage of project opportunities that your group proposes gets funding and began the development process. 49 49

Of all new product projects that your group starts, what percentage actually complete the process, whether or not they reach the marketplace? 55 27

Of the new product projects that are completed, what percentage reach the marketplace? 61 16

What percentage of all projects that got to the marketplace will eventually lead to a brand that meets all its major marketing objectives. 43 7

Source: Innovation Survey™

New product success rate

% of NPD Managers who said factor contributed to last new product failure. (%)Competitive Point-of-Difference 74Strategic Direction 63Positioning 57Marketing Support 49Market Research 43Price Value 42Advertising 39Payback Period 36Development Process 33Packaging 30

Source: Innovation Survey™

Why new products fail



Health claims

In a report issued in July, the FDA’s TaskForce on Consumer Health Information forBetter Nutrition unveiled a process for theFDA to review health claims. This processwill rely on expertise from the Agency forHealthcare Quality Research and othergovernment agencies, coupled withenhanced consumer studies, to reviewhealth claims before they appear in foodlabeling.

“Protecting consumers by helping themget better nutrition information is amongthe FDA’s top priorities, because the choicesthat Americans make about their diet havea great impact on the health of the public.This new initiative will better protectconsumers from making uninformed ormisinformed choices about their diet andnutrition, by giving consumers betterinformation about the health consequencesof those choices,” said FDA CommissionerMark B. McClellan, M.D., Ph.D.

“The FDA review process for makingqualified claims, when combined with ourstrong enforcement work, will rewardcompanies that make healthier products,while more aggressively enforcing the lawagainst companies that appeal toconsumers through false and misleadinghealth claims,” McClellan continued.

To this end the FDA has unveiled aranking system that will assign letter gradesranging from “A” to “D” on each claim acompany makes, indicating the quality andstrength of the scientific evidence thatsupports the claim. The measure is intendedto encourage the manufacturers of foods,beverages and dietary supplements, topresent only health claims that are firmlybacked by sound science.

The ranking system is set out in thedocument Guidance: Interim Evidence-based Ranking System for Scientific Data,which describes the process forsystematically evaluating and ranking thescientific evidence for a qualified healthclaim. The highest grade, “A” or theequivalent, means that there is significantscientific agreement (SSA) about the healthclaim. It means that the evidencesupporting the claim is derived from well-designed studies conducted in a mannerconsistent with generally recognized

scientific procedures and principles. Such aclaim requires no disclaimer and is thereforereferred to as an “unqualified healthclaim.” A current example of a “Grade A”health claim is a claim relating calcium to areduced risk of osteoporosis.

The grade of “B” would be assigned tothose petitions for which there is goodscientific evidence supporting the claim, butfor which the evidence is not entirelyconclusive. Grades of “C” would apply toclaims for which the evidence is limited andinconclusive. The fourth level, “D,” wouldbe given to claims with little scientificevidence to support them. Health claimsgraded “B,” “C,” or “D” are referred to as“qualified health claims” because theyrequire a disclaimer or other qualifyinglanguage to ensure that they do notmislead consumers.

The FDA also issued a second GuidanceDocument, Guidance: Interim Proceduresfor Qualified Health Claims in the Labelingof Conventional Human Food and HumanDietary Supplements, which explains howapplicants can seek a qualified health claimfor their food or dietary supplement duringthe first phase of this initiative. It alsodescribes how the FDA will set priorities forreviewing qualified health claims petitions,so that the agency focuses on reviewingclaims most likely to have important publichealth benefits.

The FDA will review all qualified healthclaims before they are used on the foodlabel. The agency intends to begin applyingthese interim guidances for health claimpetitions submitted on or after September1, 2003.

Comment: the ABCD “health claim”scheme has the potential to open thefloodgate of health and nutrition messageson America’s food supply – and a step backto the health claim anarchy of the late1980s. The reason being the “A” claims, asalways, will be rare indeed, but the“qualified” C and D’s are much easier tocraft for food and beverage products. TheFDA will also have its work cut out topreview all qualified claims. But the bigquestions are will the scheme really informconsumers about better nutrition so theycan in practice improve dietary choices, orwill the scheme further fuel the big turn-offby consumers of yet more “expert” advice,and will the scheme foster genuinenutritional innovation in food and beverageproducts, or unleash a rash of superficialproduct “repositioning” aimed to try andscore a quick nutritional hit? The use of thelabeling scheme will need some carefulthinking for food marketing, but if anABCD bandwagon starts to roll, will anymanufacturer feel they can be left out?

A, B, C, D claimsout three critical areas of over focusing – at

the Brand, the positioning or the idea itself –

anyone of which can diminish or distort a clear

reading of the consumers’ priorities.

Some processes are preoccupied at

understanding consumers’ perception of the

Brand. Since managers report that 86% of their

new products leveraged an existing Brand name,

it is not surprising that their process priorities

are to extend the Brand’s power. What’s the

Brand’s image? How extendable is it? How does

the Brand image, concept and product “fit”?

These are important issues, but we must

remember that these are the manufacturers’

agendas, not the consumers’.

Other processes lose consumer insight by

narrowly focusing at positioning. These

approaches are designed to find the right literal

positioning, then build it up by developing all its

support points. These are also internal issues, not

the consumers’ priority. By emphasizing the

importance of the literal promise, this line of

research asks the consumer to reason, a skill they

rarely use in the marketplace. In the real world,

consumers buy new foods, household and other

products with their senses, particularly driven by

appealing and distinguishing product or package

features they can see, smell or feel. A

development process that focuses too narrowly at

positioning misses an opportunity to optimize

and integrate the presentation with the product

characteristics, package and other sensory

features that make or break a new product in the

real world. And lastly, as already mentioned,

many managers highlighted that their new

product processes start with either a “concept” or

physical product, sometimes built on a

competitive development. Projects often take on a

“life of their own”, as the process attempts to

retrofit the idea or product to a consumer need.

This was evident as 47% of managers said their

company had no defined process to redefine or

“kill” projects based on new consumer learning.

Leveraging corporate equities is obviously

important in insulating a new entry. But in the

end, a new product either addresses a consumer

need in a new or better way, or it doesn’t succeed

in market. Experience has taught us to

tenaciously look for a marriage of a major

consumer need gap with our clients’ relevant

corporate equity from beginning to the end of the

process. Until more companies recognize and

practice this, success rates are not likely to

change. ■

Ed Ogiba is president of Group EFO, anew product consultancy located inWeston, CT, which conducts theInnovation Survey™ to provide insights forInnerLink™, their totally integratedapproach to new products, plusExperiential Link, their innovative approachto focus groups that connects withconsumers in-store and at home. Contact:[email protected], +1 203 2266700, www.groupefo.com


Food and beverage manufacturers are

looking at how they can slim down their

products to meet the growing demand for

“healthier” products, in response to the rising

obesity rates around the world.

One of the most high profile responses to

date had been from Kraft Foods that recently

announced it will initiate a new series of steps to

further strengthen the alignment of its products

and marketing practices with societal needs.

Heady stuff indeed from a food company – but

the fine print of change is often harder than the

public relations hype.

As Betsy D. Holden, Co-CEO of Kraft Foods

says: “The rise in obesity is a complex public

health challenge of global proportions. Just as

obesity has many causes, it can be solved only if

all sectors of society do their part to help. Kraft

is committed to product choices and marketing

practices that will help encourage healthy

lifestyles and make it easier to eat and live

better.”

The commitments Kraft is making, which

are global in scope and supplement a variety of

actions the company is already taking, will set

the company apart.

The Kraft strategy will focus in four key

areas: product nutrition, marketing practices,

consumer information and public advocacy and

dialogue. Some are fully developed and nearing

implementation, while other steps will require

further development, including continued input

from experts and interest groups outside the

company.

To aid in this process, Kraft is forming a

global council of advisors to help it structure its

ongoing response to obesity and develop

policies, standards, measures and timetables for

implementation.

Among the steps Kraft is committed to

taking in the four areas are:

Product nutrition

• A cap on the portion size of single-serve

packages

• Guidelines for the nutritional

characteristics of all products

• A planned effort to improve existing

products and provide alternative choices, where

appropriate

Marketing practices

• The elimination of all in-school marketing

• Locally appropriate criteria to use with the

vending industry in different regions of the

world, to determine the selection of Kraft

products to be sold through in school vending

machines

• Guidelines for all advertising and

marketing practices, including advertising and

marketing to children, to encourage appropriate

eating behaviors and active lifestyles

Consumer information

• Nutrition labeling in all markets worldwide,

including markets where labeling is not required

• Added nutrition and/or activity-related

information on product labels and company

websites to assist consumer choices

• Guidelines for the use of health-related

claims in all markets worldwide, including

markets where no restrictions exist

Advocacy and dialogue

• Advocacy for appropriate public policies to

engage schools and communities in helping to

improve fitness and nutrition

• Increased dialogue with key stakeholders to

help guide the company’s continuing response

to the obesity issue

“What people eat is ultimately a matter of

personal choice, but we can help make it an

educated choice,” said Roger K. Deromedi, Co-

CEO of Kraft Foods. “And helping them get

more active is every bit as important as helping

them eat better. By providing people with

products and information they can use to

improve their eating and activity behaviors, we

can do our part to help arrest the rise in

obesity.”

But as in so many things it is a question of

timing – it will be many years before the

industry and consumers will see how this is

implemented in practice and impact of such a

far-reaching policy.

For example, Kraft is still in the process of

forming its expert advisory council, which will

bring together leading voices from key

disciplines important to the company’s response

to changing patterns in diet, activity and weight.

These will include experts in obesity, nutrition,

physical activity, public health, human behavior,

nutrient fortification and lifestyle education and

intervention programs.

The council will then be tasked with giving

an overall assessment of Kraft’s current and

planned responses to the growth of obesity. In

addition, the council will be asked to help


Hot topics

Companies face up to obesityresponsibilities

Public concerns about the obesity epidemic, not least the threat

of lawsuits, have put many major food companies on the

defensive. Now they are turning on the offensive – at least in

voicing their side of the issue. New product innovations are just

one part of the complex challenges obesity poses. Michael

Heasman rounds up some of the latest developments in the

battle of the bulge.

The Food and Drug Administration(FDA) should require food manufacturersto limit the amount of acrylamide in theirproducts, says the nonprofit Center forScience in the Public Interest (CSPI). CSPIpetitioned the agency to set “interimacceptable levels” for the chemical, aknown carcinogen and neurotoxin thatforms when certain carbohydrate-richfoods are cooked at very hightemperatures.

“Acrylamide is a powerful carcinogenand is definitely something one wants lessof in food,” said CSPI executive directorMichael F. Jacobson at a Washington, D.C.,news conference. “Clearly, some foodprocessors are able to make food withmuch less acrylamide than others. All weask is that the FDA require thosemanufacturers that are at the high end of

the scale to bring their acrylamide levelsdown to that of many of theircompetitors.”

Since Swedish scientists first discoveredacrylamide in food last year, other nationalgovernments, the FDA, the World HealthOrganization (WHO), and food companieshave measured acrylamide levels in a widevariety of foods and begun to investigateways to reduce levels of the chemical.Researchers earlier this year found thatacrylamide is formed when glucose reactsat high temperatures with asparagine, anamino acid. Potato chips, french fries, andcoffee—which is roasted before beingbrewed—are among the biggest sources ofacrylamide in the average American diet.The CSPI petition is the first US proposal torequire food companies to reduceacrylamide in foods.

The next food and health issue? – FDA urged to limit acrylamide in food


develop detailed standards and measures for

implementing several of the specific

commitments the company has made. The

company is targeting the end of 2003 to

complete the development of these standards

and measures. Implementation will begin in

2004 and will likely require two to three years to

complete.

Wal-Mart wants new products to address

obesity concerns

A lot of focus on the obesity crisis in the US

has fallen on the fast food industry and

manufacturers. Surprisingly, food retailers in the

US, who essentially dominate consumer food

markets, have received little media attention. But

now Wal-Mart Stores is jumping on the health

bandwagon and has been reported as pushing

for manufacturers to come up with new

products in the low-cal, low-sugar “health” area

– not least as it seeks to increase revenues

through high-growth categories.

“We have a lot of customers who are

becoming more health-conscious and are

looking for a light alternative, and we will

continue to work to provide them with the

selections they’re requesting,” a Wal-Mart

spokeswoman said.

According to Reach Marketing principal Burt

Flickinger, Wal-Mart has previously pushed

ahead with hard lines such as exercise

equipment and workout tapes and now is

looking to tap the consumer trend toward low-

cal foods. The effort is especially urgent, Mr.

Flickinger said, since Wal-Mart is facing

comparative-store sales that are flat to slightly

negative for the first time in its history.

“Wal-Mart is really focusing on getting on

shelf as quickly as possible with major

consumer news items,” he said, “and light and

low-cal certainly fits that profile.”

Unilever promotes “healthy” ice-cream brands

The drive for “healthy” options is affecting all

categories. For example, Unilever’s Good

Humor-Breyers division is upping its healthier

offerings and advertising of lower-fat, lower-

calorie and smaller-portion sizes of its various

brands.

According to Terry Olson, vice president for

marketing and development of Good-Humor-

Breyers North America, the low-fat trend that

had been falling off since its heyday in the early

‘90s showed a resurgence last year.

“Consumers had been very disappointed by

the taste and the number of calories [in low-fat

products], but now a lot of companies are

coming back with products that still retain some

fat for better texture and flavor and are also able

to cut down on calories,” Mr. Olson said. Good

Humor-Breyers this summer breaks the first

advertising for Klondike Slim-a-Bear, a line that

includes a 98% fat-free ice cream sandwich and


Hot topics

Frito-Lay is trying to help consumersmake informed snacking choices with theintroduction in August of a new on-packribbon label on some of its snack products,including its Baked! brands.

Baked! Lay’s potato crisps will be thefirst product to feature the new SmartSnack ribbon label, highlighting some ofthe product’s nutritional information on thefront of the bag – zero grams of trans fats,no cholesterol and 1.5 grams of fat perserving, making it easier for consumers tochoose a snack that fits into a healthylifestyle.

Products that feature the Smart Snackribbon meet criteria developed by KennethCooper, MD, MPH, an expert on health,nutrition and exercise and founder of TheCooper Aerobics Center. Dr. Coopercreated specific nutritional guidelines thatFrito-Lay products must meet in ordercarry the Smart Snack ribbon label. Theseguidelines include: contains 150 calories orless; less than 35% of calories from fat(usually 5 grams or less); less than 7% ofcalories from saturated fat (usually 1 gramor less); zero grams of trans fats and 240milligrams of sodium or less per 1 oz.serving.

“The Smart Snack ribbon label is a keyinitiative that we are implementing topositively impact the way America snacks,”said Tracy LaRosiliere, Vice President ofMarketing, Sensible Snacks, Frito-LayNorth America. “This new label will serveas a guide for people who are looking forclear direction on the most healthful snackoptions.”

The introduction of the Smart Snacklabel Frito-Lay says, is just one of the stepsthe company is taking to offer consumerssnacks that fit into a healthy lifestyle. InJuly, Frito-Lay announced it waseliminating partially hydrogenated cookingoils from its Doritos, Tostitos and Cheetosbrands. With this switch, these brands,along with Lay’s and Ruffles potato chipswill be made with trans-fat-free oils.

“Better-for-you” snacks up 28%PepsiCo, in announcing the company’s

second quarter (Q2) results in July, said itsFrito-Lay North America (FLNA) division’sportfolio of “wholesome snacks”, includinggranola and cereal bars, treats, toasterpastries and fruit snacks, gained sharethroughout the grocery channel. AcrossFLNA’s salty and macro-snack business, thevolume of better-for-you products

collectively grew 28%, the company said. However the company said the move to

make “healthier” snacks had impactedprofit margins because of the higher costof switching from oil without trans-fats(such as from soybean oil, to moreexpensive corn oil).

During Q2, Frito-Lay North Americagained more than a half point of saltysnack market share with almost 4% poundgrowth, and volume growth of 4% on ayear to date basis. Net revenue for Q2 was$2,149 millions ($4,177m for year todate).

Growth in the “core” salty snackbusiness came primarily from:

• Double-digit growth in Cheetos, ledby new Twisted Cheetos;

• Strong single-digit growth in theDoritos brand, led by new Doritos Salsaand by increases in Baked Doritos, which isnow available in a new Cool Ranch flavor;

• Continuing growth from recentlyintroduced flavors of Munchies Snack Mix;and

• The new line-up of Natural productswith Lay’s, Ruffles, Tostitos and Cheetosthat are either Natural or Natural andOrganic.

Strong “Add More” macro-snackgrowth was driven principally byinnovation, including:

• Double-digit growth in Quaker Chewybars, reflecting new flavors such asWholesome Favorites and Trail Mix;

• Quaker Fruit & Oatmeal Toastables – atoaster pastry with real oatmeal crust andreal fruit filling, that’s fortified withvitamins and calcium and is alsocholesterol-free; and

• Crisp’ums, a munchable chip thatprovides the sweet-tooth satisfaction of acookie, but is only 170 calories per servingand is calcium fortified.

The “better for you” figures wererevealed as PepsiCo announced its secondquarter results for 2003 of double-digitearnings growth, with reported earningsper share for the second quarter of 2003up 19% to $0.58, on a fully diluted basis.Year to date, earnings per share were up18%, to a total of $1.02, on a fully dilutedbasis. Division net revenues for the secondquarter rose more than 7% to $6.5 billion,while division operating profit rose 9% to$1.5 billion. Year to date, division netrevenues increased 6% to $12 billion anddivision operating profits grew 8%, toalmost $2.7 billion.

Frito-Lay unfurls Smart Snack ribbon label


no-sugar-added ice cream bar.

Breyer’s is also introducing an all-natural ice

cream in 2% milk varieties (which offer half the

fat and 20% fewer calories) as well as new 98%

fat-free varieties and new Breyers Fruit Bars.

Good Humor-Breyers also helped Unilever

sister company Slim-Fast Foods Co. in the

development of new Slim-Fast frozen novelties,

the first extension of the diet brand into ice

cream. The products include a 110-calorie fudge

bar with 1.5 grams of fat.

City analysts worried about “health” concerns

on company earnings

Public and societal issues aside, and even the

possible threat of legal action, another pressure

on food and beverage companies is the

widespread concern these days among financial

institutions that health concerns will cost the

industry in terms of declining sales, poor image,

and hence less earnings potential.

In an equity research report published earlier

this year by JP Morgan, it stated that they

believed food manufacturers faced risk of

increased regulation, notably in Europe, in

labeling, advertising and distribution of some of

their key growth levers. The authors described

this as: “not good news for volume growth or

margins.” As part of this analysis, the authors

had drawn up an analysis of the portfolios of

those companies most exposed to the “obesity

risk.” The JP Morgan ranking of exposure (based

of % of total revenue) of total portfolio to obesity

risk for the following companies is illustrated in

table 1.

But they also think that obesity concerns

create a growth opportunity for those companies

focused on healthy segments of the industry and

able to make the transition to “healthier” options

– they singled out French company Danone as

one such example.

Comment: The “healthy foods” market is

more confusing and uncertain for the

immediate future than for many years. Colliding

“health” trends are now threatening to shake up

existing food markets as never before. Two

mega-trends – functional foods/nutraceuticals,

on the one hand, and the rise in obesity on the

other – will prove a nutritional challenge that

will require many companies thinking in ways

that are very different from how they have done

things in the past.

There is no quick fix – although the market

will see many products that imply just that – but

more of a cultural change, in corporations and

in consumption behaviors, all of which will take

years to play out rather than be reflected in the

quarterly results beloved of financial analysts.

The current nutrition crisis – which Kraft rightly

identifies as global in scope – requires new and

creative thinking at the very heart of food

industry strategy. ■


Hot topics

As obesity becomes more common,companies are taking on the problemdirectly by sponsoring programs and hiringcounselors, in much the same way theyhave been addressing drug or alcohol abuse.

For example, in the spring of 2002, tomotivate employees to slim down andthereby help reduce health insurance costs,VSM Abrasives, a maker of industrialsandpaper in O’Fallon, Mo. started its GetHealthy for Life contest. About 100 ofVSM’s 135 employees joined five-memberteams, each with its own name, andcompeted to see which could lose the mostweight. Weigh-ins were held every Mondaymorning, and the team that shed the mostpounds collectively in three months wasdeclared the winner.

Obesity among workers is estimated tocost American companies $12.7 billion ayear, and health insurance costs related toobesity account for $7.7 billion of the total,according to the Washington BusinessGroup on Health, a group of 175 employerswho together provide benefits for 40 millionpeople. Obesity is associated with 39 millionlost workdays and 63 million additionaldoctor visits a year, the group says.

“I believe we will see a 100% change atthe big companies,” said Helen Darling, thegroup’s leader. In June, the group startedthe Institute on Costs and Health Effects ofObesity to promote better health in theworkplace. About 200 companies are

involved.Small and midsize companies are also

urging workers to slim down, whether byproviding information on healthy diets or, inthe cafeteria, offering fruits and vegetablesand listing nutritional information about thefoods served.

Weight-loss companies are sensing thenew workplace focus. In 2002, WeightWatchers, which has long held weeklyweigh-ins and support meetings inconference rooms nationwide, createdWeight Watchers Corporate Solutions.Employees in the program can choose toattend weekly meetings at the office, go tomeetings in their cities, participate online oruse at-home kits.

At VSM, the weight-loss program “gaveeveryone an opportunity to make apermanent lifestyle change for the better,”said Brent Barton, the company’s president.“As the program progressed, our employeesbecame noticeably more productive andconfident.”

It was so successful, he said, that it isnow a permanent employee benefit.Employees weigh in each quarter, and aslong as their weight is not above theirprevious reading, they receive $25.Employees who keep the weight off for ayear receive an extra $25 and a day off withpay. So far this year, Mr. Barton said, theprogram has saved the company 10% to15% on insurance claims.

Companies helping employees to lose weight and get fit

Table 1: Exposure of total portfolio to obesity risk

Rank Company % of “not so healthy” food % of “better than” +“healthy” food

1 Hershey 95% 5%2 Cadbury 88% 12%3 Coca-Cola 76% 24%4 PepsiCo 73% 27%5 Kraft 51% 49%6 Kellogg 38% 62%7 Wrigley 35% 65%8 General Mills 35% 65%9 HJ Heinz 32% 66%10 Campbell 23% 77%11 Unilever 23% 35% (43% non-food)12 Nestle 22% 60% (18% non-food)13 Danone 20% 80%

Source: JP Morgan (2003)



Hot topics

The health of the children around the world

is put at risk by the marketing of junk food, says

a report from the International Association of

Consumer Food Organizations (IACFO), an

alliance of non-governmental organizations that

represents consumer interests in the areas of

food safety, nutrition and related matters.

The report, Broadcasting Bad Health: Why

food marketing to children needs to be

controlled, shows that:

• The food-industry’s global advertising

budget is $40bn, a figure greater than the Gross

Domestic Product (GDP) of 70% of the world’s

nations.

• For every $1 spent by the World Health

Organization on preventing the diseases caused

by western diets, more than $500 is spent by the

food industry promoting these diets.

• In industrialized countries, food advertising

accounts for around half of all advertising

broadcast during children’s TV viewing times.

Three-quarters of such food adverts promote

high-calorie, low-nutrient foods.

• For countries with transitional economies

(such as in Eastern Europe), typically 60% of

Foreign Direct Investment in food production is

for sugar, confectionery and soft drinks. For

every $100 spent invested in fruit and vegetable

production, over $1,000 is being invested in soft

drinks and confectionery.

• Over half the world’s population lives in

less-industrialized countries such as Russia,

China and India and they are now suffering a

rising tide of diet-related diseases as food

companies export their products and their

advertising practices.

The report coincides with a major

consultation by the World Health Organization

(WHO) to address a rising tide of diet-related

disease around the world. The WHO has

identified as “probable” or “convincing” the

scientific evidence that these diseases –

including heart disease, diabetes, hypertension,

obesity and several common types of cancers –

are linked to eating high-calorie, low-nutrient

foods and sugar-sweetened drinks, backed by a

cultural environment in which processed foods

and fast-food outlets are heavily marketed.

“Junk foods and sugary drinks are supported

by enormous advertising budgets that dwarf any

attempt to educate children about healthy diets,”

said research officer Kath Dalmeny, co-author of

the report and a member of the London-based

Food Commission, part of the IACFO alliance.

“Junk food advertisers know that children are

especially susceptible to marketing messages.

They target children as young as two years old

with free toys, cartoon characters, gimmicky

packaging and interactive websites to ensure

that children pester their parents for the

products.”

Companies such as KFC, Burger King,

McDonald’s, Kinder, Mars, Cadbury’s, Nestlé,

Coca-Cola and Pepsi are criticized in the report

for targeting children. The report calls for

international controls on the marketing of high-

calorie, low-nutrient food to children. In

particular the IACFO recommends the WHO to:

• Ensure children’s health protection is put

before trade concerns,

• Support international controls on food

marketing, including cross-border television,

websites and email marketing,

• Co-ordinate a Statement of Responsibility

outlining the rights and responsibilities of food

and beverage manufacturers and advertisers,

• Monitor industry marketing practices and

develop global and regional targets. ■

World’s children at risk fromjunk food marketing

Wal-Mart, concerned about its public image,

is using a consultant to analyze that image and

has commissioned radio and television ads to try

to reverse criticism from local officials,

consumers and others, according to a report in

The New York Times. It will be the first time that

Wal-Mart has invested in “reputation research.”

The on-going project began about two years

ago at the suggestion of Wal-Mart board

members, a company spokesman was reported as

saying. Regular updates are being given to the

board. The company’s relationships with

consumers, employees, bankers and community

leaders have all been examined by the consultant,

Fleishman-Hillard, a part of the Omnicom

Group. Last but not least will be its ties to

suppliers, who make and deliver billions of

dollars worth of goods to Wal-Mart stores.

The project found that many people view Wal-

Mart as a place of dead-end jobs, and that its

performance as a corporate citizen leaves much

to be desired the NY Times report said. “They

didn’t see us as involved in the community as

they might like,” Wal-Mart’s chief spokesman,

Jay Allen, was reported saying. “They didn’t give

us good marks on listening. Sometimes it was as

basic as the parking lot was not clean, and that’s

not treating the community with respect.”

To reverse the impression about its jobs, Wal-

Mart is broadcasting three ads nationwide that

portray it as a great place to work. More

television ads are planned around other findings

from the Fleishman-Hillard research, Mr. Allen

said. “We need to do these things,” Mr. Allen

said. “At the same time, we can’t change who we

are. We can’t change what makes Wal-Mart Wal-

Mart.” ■

Coca-Cola says it won’t market anydrinks directly to children under 12,including water or juices, according to aninternal document, reported the AtlanticJournal-Constitution.

Coke spokeswoman Kari Bjorhus wasreported as saying the company’s newpolicy is meant to “respect the role ofparents and guardians. It certainlyunderscores our overall commitment tobeing part of the solution.”

Bjorhus said Coke’s change wasn’tintended to influence the larger industry.“This is the right policy for us,” she was

reported as saying. Coke’s internal policy document was

reported as saying about advertising andpromoting to children:

• The company won’t target ads atchildren under age 12 for any brand.

• No child under 12 can be shownconsuming Coke-owned products in an ad,unless they’re depicted with an adult.

• School classrooms will be considered“commercial-free” zones.

• Anything trademarked with the Cokename, toys, for example, falls under thesame marketing guidelines.

Coke won’t market directly to children under 12

News – Suppliers – Ideas

www.FoodIngredientsFirst.com

• Industry news first every morning

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Essential information for food & beverage developers

Wal-Mart to invest in “reputation research”


General Mills is the company that brought Betty

Crocker, Wheaties and Pillsbury into the kitchens of

generations of families and has also been

instrumental in the development of several

revolutionary products that have shaped not only

how people eat today, but many other aspects of

consumer society.

Today, General Mills is a global manufacturer

and marketer of consumer foods products, with

annual worldwide net sales of $10.8 billion. Its

global brand portfolio includes Betty Crocker,

Pillsbury, Green Giant, Haagen-Dazs, Old El Paso,

Bugles and more. It also has more than 100 US

consumer brands, more than 30 of which generate

annual retail sales in excess of $100 million.

Included in the US portfolio are some of the

nation’s most popular brands including Cheerios,

Wheaties and other Big G cereal brands; Yoplait

and Colombo yogurts, Betty Crocker desserts and

dinner mixes; Betty Crocker and Nature Valley

snacks; Totino’s frozen pizza and snacks and

Progresso ready-to-serve soups. General Mills is

also a leader in the bakeries and foodservice

business as a major supplier of baking and other

food products to the foodservice and commercial

baking industries.

But innovation does not only extend to the food

products themselves, as Steve Sanger, General Mills

chairman and CEO, said: “While our food products

are familiar to consumers around the world, we

also have shaped broadcast airwaves across the

country, what astronauts eat in space and even the

way airplanes communicate.”

For example, in 1953, General Mills’ Mechanical

Division teamed up with the University of

Minnesota to develop the Ryan Flight Recorder,

commonly known today as a data flight recorder, or

the black box. The black box records flight

communications data and is key to disaster

investigations by the airline industry.

General Mills’ Pillsbury division created

specially packaged space food for NASA, the first

solid food eaten in space by astronauts. First used

during F. Scott Carpenter’s May1962 mission on

Aurora Seven, the innovation was later marketed to

consumers as Space Food Sticks.

Also in 1962, General Mills’ Electronic Division

created ALVIN, a deep-diving submarine for the

US Navy and Woods Hole Oceanographic Institute.

ALVIN was used to take the first photographs of

the Titanic on the ocean floor in 1986 and is still

used today in ocean exploration.

While General Mills is known for its breakfast

cereal, the company also has a history in radio

serials, creating the very first national radio serial,

Jack Armstrong, the All-American Boy in 1933. The

talk radio series was centered on high school

student Jack Armstrong and his friends, Billy and

Betty Fairfield. The show was enormously popular

for nearly two decades and was inducted into the

Radio Hall of Fame in 1989. Sponsored by

Wheaties during its entire run, Jack Armstrong

transformed the “Breakfast of Champions” into a

major marketing phenomenon. Uncommon

objects that figured into the show’s storyline, such

as a wrist compass and a dragon’s eye ring, were

offered as a “premium” to listeners who mailed in a

dime and a Wheaties box top.

In the 1930s, Wheaties pioneered the

sponsorship of baseball game broadcasts

throughout the country. One of the stations was

WHO in Des Moines, Iowa, where a young

broadcaster named Ronald “Dutch” Reagan

delivered play-by-play recreations of Chicago Cubs

games from telegraph reports. In 1937 Reagan was

voted the most popular Wheaties announcer in the

country and was awarded a trip to the Cubs

training camp in California, all expenses paid,

courtesy of Wheaties. While there, he took a

Warner Brothers screen test. The rest, as they say, is

history.

Back in the kitchen, the Betty Crocker Picture

Cookbook became one of the best-selling books in

the country in 1950, second only to the Bible for a

period of time. The cookbook led to another

General Mills breakthrough with the introduction

of audio cooking instructions for the blind. In 1956,

General Mills produced and sold three 10-inch

records featuring directions for Betty Crocker cake,

pie crust, cookie mixes and Bisquick recipes. Betty

Crocker recipes are still published in Braille today.

“General Mills’ history of innovation has made

us No.1 or No. 2 in nearly every product category in

which we compete,” said Sanger. “Our products

today are found in virtually every aisle of the

grocery store. And while our focus now is food

products, we’ll continue our legacy of innovation to

build our brands and drive our business.” ■


Innovation celebration

75 years of innovation in thekitchen and beyondThe business literature on innovation that summarizes across industries often ignores

the distinct characteristics between different sectors. From this perspective the food

industry is often categorized as a poor innovator compared to other industrial sectors

because of the lack of “new” innovations over short time periods. But one unusual

aspect of food brands and products is their longevity in the marketplace – something

other industrial sectors struggle with. This distinctness in the innovation profile of the

food sector is clearly illustrated by US company General Mills which is celebrating 75

years of innovation in 2003.



Innovation celebration

Food innovations• Wheaties was developed in 1921 by a

health clinician who brought the idea to theWashburn Crosby Company, one of GeneralMills’ predecessors. Research anddevelopment tested 36 varieties until theyfound the “perfect” flake that wouldn’t turnto dust inside a cereal box.

• Green Giant developed the firstvacuum-packed corn in 1929 – NibletsWhole Kernel Corn.

• In 1931, General Mills develops arevolutionary new baking powder. By simplyadding milk or water, fresh, hot biscuitscould be made very quickly from the newproduct, Bisquick.

• Kix, the first ready-to-eat puffed corncereal is introduced in 1937. It is made witha batch-puffing gun, an innovation thatdramatically changes the look of cereal.

• Pillsbury begins enriching its flour withvitamins and iron in 1941. This pioneeringeffort is initiated before the governmentmandates that some foods meet nutritionstandards.

• Cheerios, the first ready-to-eat oatscereal is born in 1941. Originally introducedas Cheerioats, the name is changed toCheerios four years later. Today, Cheerios isthe No. 1 selling brand of cereal andfrequently is the first solid food eaten bytoddlers.

• In 1942 Pillsbury begins making soupmixes for the US Army during World War II.

• On the home front, seven million BettyCrocker “Your Share” meal planningbooklets are distributed in 1942 to helphomemakers get the most out of rationedfood during World War II.

• The first Betty Crocker packaged cakemix is introduced in 1947. The first flavor isthe popular Ginger Cake, followed by PartyCake and then Devil’s Food Cake.

• Pillsbury introduces the first chocolatebox cake mix in 1948. It quickly becomes amust have for homemakers across theUnited States.

• Pillsbury acquires a Kentucky-based millin 1951, and with it obtains a patentedprocess for packaging refrigerated freshdough in a can, bringing consumers yetanother revolution in baking. In a few shortyears, the venerable Pillsbury Doughboy willdebut, jumping out of the can.

• In 1957, Pillsbury introduces “slice andbake” refrigerated cookie dough, instantlyenriching the lives of both kids and momsforever.

• In 1960, General Mills develops a new,less costly and speedier milling process.Called the Bellera “Air Spun” process, itdrastically reduces the amount of handlingand number of steps previously requiredwhen turning wheat into flour.

• General Mills launches Total cereal in1961, the first cereal to provide 100% of theminimum daily adult requirement for eightdifferent vitamins as recommended by theUS government. Never offered before in a“single ounce of delicious, appetizing food,”Total cereal’s development is the result ofunprecedented levels of research.

• Pillsbury introduces the first ready-to-spread frosting in 1964.

• Bundt cake mix is introduced in 1972, adirect result of the Pillsbury Bake-Offwinner’s recipe “Tunnel of Fudge Cake” in1966.

• General Mills introduces Yoplait yogurtto America in 1977.

• Fruit Roll-Ups are introduced in 1979 tothe delight of both kids and their parents.

• In 1983, Pillsbury introduces the firstrefrigerated pie crust, resulting in easier andmore convenient pie baking.

• Pillsbury launches Toaster Strudelpastries in 1985, again creating a newproduct category and a new use for toastersacross America.

• Pillsbury’s Totino’s unit launches StuffedNachos in 1990, a new shape for a high-speed co-extruded dough product.

• Green Giant launches a new category ofprepared meals in 1993. Create A Meal, withfrozen veggies and sauce in the same bag,introduces a whole new level of convenienceinto kitchens everywhere.

• Pillsbury introduces shaped cookies in1992. The first shapes were teddy bears anddinosaurs, later giving way to holiday-themed cookies.

• General Mills acquires the first USyogurt company, Colombo, in 1993.

• In 1994 Pillsbury’s Totino’s facilityreaches a major milestone as it beginsproducing an average of one million pizzaseach day.

• General Mills introduces Go-GURT in1998, another technological first. Theinnovative yogurt tube’s convenience isunparalleled in the category and yogurt isnow more portable and can be eatenanywhere without the aid of utensils. Inaddition to the R&D efforts that went intothe packaging, the other innovation

associated with Go-GURT is its ability to befrozen.

• In 2001, Pillsbury develops “freezer-to-oven” technology. This foodservice industryinnovation launches baked goods andbiscuits that go directly from the freezer tothe oven, resulting in major cost savings foroperators. The line of products is expandedand subsequently introduced to consumersfor home kitchen use as Pillsbury HomeClassics.

Cultural, marketing and advertisinginnovations

• Betty Crocker has enjoyed greatlongevity throughout the decades since hercreation in 1921. Originally created as a penname to personalize responses to customerinquiries on a Gold Medal flour promotion,Betty Crocker had become the second mostrecognizable female in the country by the1940s, next to Eleanor Roosevelt. ArtistNeysa McMein unveils the first officialportrait of Betty Crocker in 1936. The icon isupdated a total of seven times since. In1996, a nationwide contest is held to select75 women whose images “morph” to createa new computer generated portrait.

• In Minneapolis, the Washburn CrosbyCompany, the predecessor to General Mills,buys a failing radio station in 1924 andnames it after its acronym, WCCO. BettyCrocker begins her cooking school radioshow on WCCO shortly after.

• Pillsbury holds its first Bake-Off Contestat the Waldorf Astoria in New York City in1949. This premier cooking contest is stillheld today, offering a $1 million grand prize.

• General Mills develops the Olive Gardenrestaurant chain in 1982.

• General Mills develops a microwavetechnology that is used to make one ofAmerica’s favorite and most popular snacks –microwave popcorn.

• The “Breakfast of Champions” slogan,first used in 1933, became a famousWheaties catchphrase that is still used todayto inspire athletes to work hard.

• In 1939, Wheaties sponsored the firsttelevised commercial sports broadcast whenNBC presented a game between theCincinnati Reds and the Brooklyn Dodgersfor the 500 owners of TV sets in New YorkCity.

• With the help of ad agency Leo Burnett,Pillsbury introduces the world to the PillsburyDoughboy in 1965, where he makes hisdebut in a Crescent Roll commercial. Withinthree years of his debut, the Doughboy hasan 87% recognition factor amongconsumers.

• The Jolly Green Giant, famous icon ofone of the world’s largest vegetable brands,joins the Pillsbury family of brands in 1979.

Innovation history at General Mills


The birthplace of the cranberry, the USA has

already felt the full force of the “red revolution.”

Ocean Spray cranberry ingredient sales there have

increased significantly in the past few years and

the cranberry is used as an ingredient in over

2000 products.

The last decade has seen the cranberry’s fame

spreading beyond its homeland, across the

Atlantic. Since the red berry officially arrived in

Europe in 1996, sales of Ocean Spray branded

products and ingredients have topped $100

million – a massive achievement for a tiny berry.

Here, Ocean Spray – a grower owned cooperative

– charts the evolution of the European market for

cranberry ingredients.

Trade secrets

European ingredient sales are experiencing

significant year on year growth and represent a

sizeable part of Ocean Spray’s global ingredients

business. Frozen and concentrated cranberries

were the first forms to find favor with European

manufacturers. But as manufacturers became

more comfortable with using cranberries,

Sweetened Dried Cranberries (SDCs) and

Flavored Fruit Pieces (FFPs) have established

themselves as value added ingredients in a range

of applications. These two segments now

command more than 50% of Ocean Spray’s

ingredient sales.

Many varieties of infused, Sweetened Dried

Cranberries (SDCs) are used internationally by

customers in cereals, snacks, confectionery and

baked goods. The popularity of the SDC hinges

on its healthy proposition, process tolerance and

ability to sustain its vibrant red color throughout

processing. SDCs can be sliced to various

dimensions and the moisture content modified

according to customers’ needs.

The next generation of infused and dried

cranberry-based fruits – Flavored Fruit Pieces

(FFPs) – uses cranberry as the starting material to

create an ingredient which exhibits the flavor and

color of a variety of real fruits: blueberry,

raspberry, cherry, strawberry, orange, peach and

now – mixed berry. These ingredients deliver the

flavor, color and texture of natural fruits,

answering customer demand for cost effective,

versatile and realistic fruit pieces.

Cranberries on the map

The UK was the first ingredients market to be

penetrated by Ocean Spray. In the past few years,

sales in the UK have increased dramatically. The

cereal bar market is the driving force, as

innovation involving berries, apples, bananas and

other real fruit pieces takes center stage. Leading

players McVities, Jordans and Kellogg’s have all

tapped into the berry trend, introducing cereal bar

variants with cranberry.

Cranberry is even catching on in countries like

Holland, with cranberry ingredients being used in

a range of products from drinks to spreads. In

Germany, dozens of products containing

cranberry are now available on the supermarket

shelves, and numbers will only increase if the


Ingredients case study

Cranberry ingredients open upEuropean innovation trendRon McMillan, General Manager Europe,

Ocean Spray Ingredient Technology

Group, explains how cranberry ingredients

– first introduced in the late 1990s are

being used to open up innovative new

product developments across European

countries.

Biscuit snackbar in Denmark

Sweeteneddried cranberries(SDCs) supplied

by Ocean Spray have been incorporatedinto a new snack bar. Launched in June byKelsen Bisca, Denmark’s largest exporter ofbiscuits, the low-fat cereal grain barcontains hips and honey as well as five percent cranberries. The aim was to devise asnack bar that not only tasted good butwas healthy too. Associated with a varietyof health benefits, the cranberry fitted thebrief perfectly.

“We identified a gap in the market for atasty, filling and healthy biscuit bar snack ina convenient, individual format rather thantraditional roll-wrapping;” explains GretheKjølby, marketing manager at Kelsen Bisca.“We knew that it would be difficult toachieve both taste and health with grainsalone, so looked at including various fruitingredients. Apple and strawberry fell shortin terms of health appeal and failed tomaintain their taste profile after baking. Weopted for cranberry, owing to itssubstantiated health benefits and ability toretain its taste, texture and colorthroughout baking and in the end product.”

Three variants of the Bisca bar –cranberry, blackcurrant plus tomato andblack olives – are aimed primarily at femalesbetween the ages of 25-45. Distributedinitially on the Danish market, Bisca’s rolloutto the rest of Scandinavia is scheduled forAugust, followed by export to othercountries in 2004.

With a turnover of 1.5 billion kroner,

headquarters in Copenhagen and threemanufacturing facilities, Kelsen Bisca isDenmark’s leading biscuit manufacturer andoccupies a number two position in Sweden.Primary export markets include Hong Kong,Russia and the USA – where products aresold under the “Royal Dansk” and“Kjeldsen” brands.

Stimulating drinkin Finland

Finnish beer andsoft drinkmanufacturer,Hartwall, usedcranberryingredients todevelop FenixPiristävä, a new

cranberry and pink grapefruit health drink.In response to consumer concern for healthand wellbeing, the company includedOcean Spray’s cranberry concentrate in thestimulating drink.

“Consumer research – which found thatmore than 50% of the Finnish populationwatch their diets carefully and exerciseregularly – contributed to the developmentof our Fenix health drink;” explains EsaRautalinko, Hartwall’s marketing director.“But it was more than just well-documented health benefits that led us toinclude the cranberry. The berry’s vivid colorand tart flavor enhance and complementthe pink grapefruit, providing a deliciousand stimulating drink with excellentmouthfeel.”

Web www.oceansprayitg.com andwww.oceanspray.com

Product examples


current climate continues. Innovations include:

biscuits with frozen cranberries, barbecue sauce

with cranberries and a trail mix snack which uses

SDCs as an alternative to raisins.

French and Swiss consumers have also been

keen to embrace the cranberry. This is reflected in

recent NPD activity with SDCs, which includes a

muesli, launched in June 2002; a nougat bar,

introduced in January 2003 and “Baguettine,”

toasted breads. In Switzerland, there has been a

flux of cereal bars and cereals addressing the

health conscious consumer.

Several trends have contributed to this growth:

• the heightened popularity of infused fruit as

manufacturers reject lower value ingredients such

as reformed fruit pieces in favor of natural fruit

ingredients with greater consumer appeal and

bake stability

• the addition of novel or tropical fruit

ingredients such as saskatoon berries, cranberries,

passion fruits and blueberries to processed foods

• the snacking phenomenon which has sent

sales of fruit to cereal bar manufacturers

rocketing looks set to intensify

• the UK government’s “five a day” program

and concerns over escalating obesity levels are

likely to have an influence on consumer eating

habits to the advantage of fruit

• the introduction of functional or fortified

products with added health benefits and

resurgence of the low-fat or light categories.

Creating a synergy between its ingredients and

branded businesses in Europe has also played a

key part in Ocean Spray’s strategy. Branded drinks

engender acceptance and pull for cranberry

products among consumers, while food products

incorporating ingredients such as dried or frozen

cranberries generate a push from the industry.

The contrast between the development of

different European markets is marked. While the

cranberry market in the UK, Germany and

Holland is established, the Scandinavian and

Southern European countries are at an earlier

stage of development, but are proving receptive to

efforts. 2003 launches include a snack bar with

hips, honey and sweetened dried cranberries and

a cranberry and pink grapefruit health drink (see

product examples). Ocean Spray expanded into

Southern Europe in 2001, appointing distributors

in Italy, Spain and Greece. The picture is quite

similar to that in the more developed territories

eight years ago and Ocean Spray is confident that

over time these markets will evolve as

manufacturers and consumers become informed

about the benefits of the cranberry.

Cranberry health science

Since 1984, many studies have indicated that

cranberries may have a number of health benefits,

the foremost being its “anti-adhesion” effect on

certain bacteria.

Support for an anti-adhesion mechanism

began in the early 1980s. Then in 1991, a study

published in the New England Journal of

Medicine1 identified a component in cranberries

and blueberries, but not in other common fruit,

that prevented the adhesion of certain E. Coli

bacteria. In a 1994 study published in the Journal

of the American Medical Association2, Harvard

Medical School researchers conducted the first

well-controlled, large-scale clinical trial to

demonstrate that drinking cranberry juice

regularly, significantly reduced the presence of

bacteria in the urine of elderly women. The

researchers found that the effect was not because

of a more acidic urine and speculated that there

was something specific in the cranberry that

prevented bacteria from adhering to the urinary

tract. In 1998, a study published in The New

England Journal of Medicine3 identified

proanthocyanidins (PACs) as the compounds in

cranberries responsible for preventing P-

fimbrated E Coli from adhering to the urinary

tract. The implications of a fruit that blocks

disease-causing bacteria from sticking to cells and

tissues could be significant and are under active

exploration.

The cranberry’s role in the prevention of

Urinary Tract Infections (UTIs) has led to its

application in dietary supplements Europe-wide.

Ocean Spray’s 90 MX cranberry juice powder,

which provides a naturally consistent level of

urinary tract proanthocyanidins, lends itself to use

in dietary supplements. Products on the market

include Fleurance Nature’s Canneberge (France)

and Jemo Pharm’s Vitabutin (Denmark).

Conclusion

While the cranberry wave is still in its infancy

in Europe, the little red berry has mustered

support at an astonishing pace as manufacturers

are discovering the benefits that cranberry can

confer to their products. The cranberry’s

exceptional processing properties, tart, unusual

taste profile and well-documented health benefits

look certain to secure its place in the food

industry for years to come.

References

1 Ofek I., Goldhar J., Zafriri D., Lis H., Adar

R., Sharon N. Anti-Escherichia coli adhesion

activity

2 Avorn J., Monane M., Gurwitz J.H., Glynn

R.J., Choodnovskiy I., Lipsitz L.A. Reduction of

bacteriuria and pyuria after ingestion of cranberry

juice. Journal of the American Medical

Association, 1994, 271, 751-4.

3 Howell A.B., Vorsa N., Marderosian A.D.,

Foo L.Y. Inhibition of the adherence of p-

fimbrated Escherichia coli to uroepithelial cell

surfaces by proanthocynadin extracts from

cranberries, The New England Journal of

Medicine, 1998, 339, 1085. ■


Ingredients case study

Cranberry cereal bar set for success inUK

Shepherdboy Ltd, the largestindependent health food manufacturer inthe UK, introduced a cranberry cereal baronto the UK market this year. OceanSpray’s sweetened dried cranberries (SDCs)constitute 30% of the product, ensuringthat the cranberry’s vibrant color and tarttaste are prominent in the cereal bar.

“The decision to include cranberries inour healthy snack bar range stemmed fromtheir unique natural ability to maintainurinary tract health, as well as providinghigh levels of antioxidants andpolyphenols. Not only, therefore, is thecranberry bar tasty and nutritious but itmeets heightening consumer concerns fora healthier lifestyle,” explained G.M.Gibson, Director of Shepherdboy Ltd.“Ocean Spray’s SDCs stood out from otheringredients because they are backed by anestablished brand name and efficienttechnical support.”

Shepherdboy Ltd specializes in healthfoods, snack bars and energy bars. OtherShepherdboy products include Just/Socarob bars – a chocolate alternative, oils,muesli, capsules and a range of hempproducts.

Germanhealthy snackoption

An alliancebetween Germannutritional foodsmanufacturerFarmer’s Snackand fruitingredient

specialist Ocean Spray ITG resulted in thedevelopment of Studentenfutter ohneRosinen, a raisin-free, trailmix style productcontaining dried fruit, nuts and sweeteneddried cranberries (SDCs).

Farmer’s Snack marketing manager,Cornelia Ahrens said: “A distinguishingfeature of the product is that it doesn’tcontain raisins. However we wanted tomaintain the fruit aspect, which is integralto the taste and healthy balance oftrailmix. We found the cranberry to be theobvious choice to satisfy our requirements,leading us to develop a healthy snack withyouthful-appeal, while creating a new tastesensation. The sweet flavor of thecranberry pieces complements perfectly theethos of the product by enhancing tastewithout adding sugar or artificial flavors.”

Following excellent sales results since itslaunch onto the German market,particularly among the under-30s, Farmer’sSnack plans to introduce the cranberrytrailmix to a wider European audience.

Product examples



Market trends

US nutrition industry sales grew nearly$4 billion in 2002 to $58 billion, accordingto research recently published by NutritionBusiness Journal. Each year, through itsown surveys of manufacturers andsuppliers and analysis of more than 40secondary sources, NBJ quantifiesconsumer sales in Dietary Supplements($18 billion), Natural and Organic Foods($14.4 billion), Natural Personal Care ($4.5billion) and Functional Foods ($20.5billion).

Much like the sputtering globaleconomy, the nutrition industry sparked tolife in some areas in 2002 (organic foods,calcium, magnesium, essential fatty acids(EFAs) and meal replacement powders) andcaught a flat in others (herbs andglucosamine-chondroitin).

However, the nutrition industry onceagain achieved an overall growth ratetwice that of the economy. Growth of 7-10% in natural & organic foods, naturalpersonal care, minerals and mealreplacement supplements balanced out lessactive supplement categories. In 2002, thebellwether vitamin category reboundedwith sales growth of 2.5%, up from 0.8%growth in 2001. Herbal supplement salesdeclined in 2002, led by an aggregate$150 million decline in echinacea, garlic,ginseng, ginkgo biloba and St. John’s wort.Specialty supplement sales growth alsoslowed in 2002, due primarily to lowerconsumer prices in the glucosaminemarket, which represents nearly 30% ofthe category.

US nutrition industry salesgrow 7.3% in 2002

The Hain Celestial Group and Cargill Health &

Food Technologies have announced plans to jointly

develop new food and beverages product solutions

for consumers to address a broad range of health

concerns.

“By combining our expertise, we bring two

industry leaders together to focus on the

development of the next generation of functional

beverages, one of the hottest categories serving

today’s health-conscious consumers.

This collaboration will complement our current

health brands and allow us to continue to exceed

consumer expectations,” said Irwin Simon,

chairman, president and chief executive officer of

The Hain Celestial Group.

“The Hain Celestial Group and Cargill Health &

Food Technologies share a common goal of

producing great tasting, healthy solutions for

consumers,” said Ted Ziemann, president of

Cargill H and F&T. “We are excited about the

opportunities to explore new formulations with our

family of ingredient brands including: CoroWise

phytosterols, AdvantaSoy isoflavones, Ascend

trehalose, Oliggo-Fiber inulin, and OptaFlex

chondroitin.”

“For example, we look forward to bringing

exciting extensions to our Rice Dream, Soy Dream

and WestSoy non dairy beverages to consumers,”

Simon said. “Our beverage categories have already

set the bar high nutritionally. With the addition of

Cargill’s high value ingredients, proprietary

technologies and food formulation expertise, we

expect to surpass consumers’ desire for great taste.”

Both companies predict that this collaboration

will further accelerate growth in the functional

foods and beverages categories with a combination

of synergistic resources typically not seen in this

industry. ■

“Next generation” functionalbeverages alliance

Can one barbecue substantially impact

California’s food economy? According to an

economic impact report released in August, the

answer is yes.

In fact, if all California consumers were to

choose locally grown products for their Labor

Day barbecues, it would not only generate $76.2

million in revenues to farms, but also an

estimated $65.4 million in spending by farms

to meet that growth in demand, and nearly

$124.3 million in additional spending in

communities throughout California. In

addition, approximately 500 new jobs – in

agriculture as well as other industries – would

be needed due to the increased economic

activity up and down the state.

“As you can see, the purchasing power of 35

million Californians cannot be overstated,” said

Scott Horsfall, chief operations officer at the

Buy California Marketing Agreement (BCMA).

“This Labor Day, if we each reach for California

grown products, from chicken and garlic to ice

cream and peaches, it can have a profound

impact on our entire state’s economy.”

Using a mix of popular foods to create a

healthy menu, this “California Grown” barbecue

report measured the impact of seemingly

simple shifts in consumer purchases to prepare

a meal made from California grown products

rather than those grown elsewhere.

The “California Grown” barbecue meal

included the following menu items: guacamole

and chips; barbecued chicken (marinated with

orange, lime and garlic); fruit salad; peach

cobbler with ice cream for dessert; and wine for

adults and milk for kids.

The barbecue study forms part of a wider

campaign in California to encourage purchasing

local food products.

In a statewide economic impact study

released in July, findings reveal that relatively

minor shifts in Californians’ purchasing

decisions have a major impact on the state’s

economy and job outlook.

According to study findings, if Californians

increase purchases of California grown products

by just 10% annually – which equates to about

$1.63 per week for the average Californian – it

would result in 5,565 new jobs throughout the

state and nearly $1.38 billion in additional

spending due to the increased business activity.

In addition, the added economic activity would

generate $188 million in taxes for local and

state governments.

Importantly, these figures do not assume an

increase in any household spending, simply

documenting the effect of choosing the

products of California’s farms, ranches, forests,

and fisheries over products available from out-

of-state.

If California grown purchases are increased

by 25% annually – which equates to about $4.12

per week for the average Californian – the

resulting economic impact becomes even more

substantial. In fact, a 25% increase in the

purchase of locally grown products would result

in 13,913 new jobs throughout the state and

$3.46 billion in additional spending. And, the

growth in business activity would generate

$470 million in taxes for local and state

governments.

“As you can see, when it comes to

agricultural products, origin matters,” said Scott

Horsfall, chief operations officer at Buy

California Marketing Agreement (BCMA).

“Without question, our choices have a powerful

influence on the state’s economy. Buying

asparagus or apples, cherries or chicken, we can

all have an impact by simply paying attention

while shopping and choosing more California

grown products.”

The Buy California Marketing Agreement is

a joint effort of 26 industry groups representing

the products of California’s farms, ranches,

forests and fisheries.

Structured as an industry advisory board to

the California Department of Food and

Agriculture, BCMA brings together industry

and government resources to increase the

awareness, consumption and value of California

agricultural products, helping the state’s

consumers enjoy the best of the California

lifestyle. ■

How a barbecue impacts theCalifornian food economy


Any quick solution to the GM controversy and

possible consumer acceptance of innovative GM

derived products in Europe evaporated in August

when the United States, Canada, and Argentina

requested the establishment of a World Trade

Organization dispute settlement panel over the

European Union’s handling of genetically

modified organisms (GMOs).

The three countries are the world leaders in

the cultivation of genetically modified food crops,

and they want the five year de facto EU

moratorium on new biotech crop approvals

declared illegal under international trade rules.

But the dispute can only serve to heighten

European consumer resistance to the perception

of having US corporations force GM

“frankenfoods” into their foods.

It is also likely to stiffen European policy

resistance to the early introduction of GM crops.

EU commissioners, who last month finalized

new European legislative proposals covering new

crop approvals, have so far reacted angrily to the

move.

Environment Commissioner Margot

Wallstrom said: “There should be no doubt that it

is not our intention to create trade barriers. But

my concern is that this request will muddy the

waters of the debate in Europe. We have to create

confidence among citizens for GMOs and allow

them to choose – and this is what our new

legislative framework is designed to do.” She said

the European Union stance on GMOs is in line

with World Trade Organization rules.

Trade Commissioner Pascal Lamy regretted

the resort to “unnecessary litigation.” “The EU’s

regulatory system for GMOs is clear, transparent,

reasonable and nondiscriminatory,” said Lamy.

“We are confident that the WTO will confirm that

the EU fully respects its obligations.”

The request for a dispute settlement panel

follows the breakdown of conciliation talks

between the two sides initiated in June.

US Trade Representative Robert Zoellick said

on August 7, “Delegations from the United

States, Canada and Argentina consulted in June

with EU officials, but the EU indicated no

willingness to comply with its WTO obligations

by lifting the groundless moratorium on biotech

products.

“The EU’s stance leaves us no choice but to

proceed with the establishment of a WTO dispute

settlement panel. For five years, the EU has kept

in place a ban on biotech approvals – a ban

which is unsupported even by the EU’s own

scientific studies,” said Zoellick. “This trade

barrier harms farmers and consumers around

the world by denying them the benefits of

productive, nutritious and environmentally

friendly biotech products.”

The recent near completion of new EU

biotech crop rules makes it possible that the

moratorium will be history by the time the WTO

panel makes a ruling. A better labeling and

traceability framework for GM food and feed was

adopted in July. The Commission said today that

the new system aims to respond to citizens’

demands for more and better information on

GMOs, and the need to facilitate the freedom of

choice between new and more traditional

agrifood products.

Martin Rocholl, director of Friends of the

Earth Europe said: “The US administration,

funded by the likes of GMO giant Monsanto, is

using the undemocratic and secretive WTO to

force feed the world GM foods. Decisions about

the food we eat should be made in Europe and

not in the White House, the WTO or Monsanto’s

HQ.”

In its statement in response to the WTO

move, the European Commission cited an ABC

News public opinion survey to claim that

Americans want similar GM crop safeguards to

those in Europe “by a huge margin.”

The ABC News telephone poll of 1,024 adults,

released June 19 found that 92% of Americans

polled support labeling of genetically modified

foods, a provision of the new European legislative

framework governing GMOs.

Just one-third of the Americans polled by

ABC told interviewers that they believe

genetically modified foods are safe to eat.

Instead, 52% believe such foods are unsafe, and

an additional 13% are unsure about them.

In 1996, no US crops were genetically

modified, but by 2002, 34% of the corn crop and

75% of the soya crop were genetically modified.

Livestock and poultry are the biggest customers

of US corn, eating 58% of the nation’s crop in

2002.

The United States accounts for over two-

thirds of all biotechnology crops planted

worldwide. Genetically modified food crops

grown by US farmers include corn, cotton,

soybeans, canola, squash, and papaya. Argentina

plants primarily biotech soybeans, and Canada’s

main biotech crop is canola or oilseed rape. ■


Food futures

GMO controversy heightensFrom science, policy, politics, corporate

behavior to consumer activism GMOs

continue to one of the most controversial

innovations in food supply today.

The possible spread of DNA fromgenetically modified (GM) crops to wildand domesticated relatives raises a new setof issues for scientists and policymakers toconsider, according to a new issue briefreleased in August by the Pew Initiative onFood and Biotechnology.

The report notes that gene flow is notunique to GM crops, but it draws attentionto the ecological and economic concernsthat could arise if novel traits from thesetransgenic crops spread to otherpopulations.

Titled Have Transgenes, Will Travel:Issues Raised by Gene Flow FromGenetically Engineered Crops, the briefnotes a primary ecological concern thattransgenic plants will breed with wildrelatives and confer a trait not otherwisefound in nature to the resulting plant. Thishas the potential to alter the gene pool forthat crop and to threaten biodiversity.

The Pew Initiative reports, however, thatdespite the theoretical concerns presentedby gene flow, it is unclear if the spread ofDNA from transgenic crops is an ecologicalhelp or a hindrance. Depending on the typeof trait passed on, the general fitness of aplant could increase or decrease as a resultof acquiring that trait, the report says.

The primary economic concern stemsfrom the possible impact to specialtymarkets, such as organic crops, if geneticmaterial from transgenic plants were tospread and mix with a crop intended toexclude transgenic materials.

“As new transgenic crops are tested andgrown, preventing unwanted gene flow toother crops will present technical andregulatory challenges as well as possibleeconomic conflict,” said MichaelRodemeyer, executive director of the PewInitiative on Food and Biotechnology, whichis a nonpartisan, nonprofit research project.

Report raises issue of gene flow from GM crops

While most GM crops do not go directlyfor human consumption (for example themajor market for soy is animal feed),Monsanto will significantly up the stakes inthe debate about GM food with theplanned introduction of GM wheatvarieties. The company’s work is in the finalstages now and field trials are underway ofwheat grown using its GM technology. Thecompany has been reported as alreadymastering the transfer of DNA from alaboratory-grown bacterium into wheatDNA, so farmers can spray weed killeracross entire fields without harming theircrop. Monsanto’s current focus is now onconvincing regulators that biotech wheat issafe to grow and eat, while persuadingfarmers to plant it, and food companies touse it in the bread, cereals, crackers andother products.

Monsanto to introduce GM wheat?


Major sociological and economical changes

will impact the quality of our lives and the

direction of the food industry in the next few

decades. New food and beverages are introduced

at record pace and most products try to offer

something unique to a demanding customer.

These demands range from quality and

uniqueness all the way down to quantity and

value. The world population will continue to grow

at unprecedented levels from 6.3 billion in 2003,

to 7 billon in 2010 and 8 billion in 2025. Of the

latter figure, five billion will be global, affluent

and urban-based consumers.

The issues of rapid growth of population and

shortage of fresh water supply are further clouded

by the number of countries that have a graying

society and are confronted with a decline in birth

rate, which ultimately can lead to progression of

current poverty levels. These demographic trends

will no doubt influence domestic and

international policies, including figuring out how

to support aging populations with managed

healthcare systems and two-tiered food programs,

ranging from affordable nutrition for people

living in the economic depressed countries and

the development of functional foods for more

affluent societies. If these issues are not

addressed it will have devastating effects and

might destabilize world society as a whole.

New demands

Eating and diet habits change over time as a

result of socio-economic factors. Already, it is

evident that the dogmatic attitude of some of the

American franchised fast-food companies

ultimately cannot be sustained. For a plethora of

reasons, consumers have demanded change and

forced the fast-food companies to loosen the strict

formulae guidelines and adapt to local or regional

flavor and economic preferences. A decade from

now, the foodservice sector will be largely

unrecognizable to what it portrays today.

Innovation, convenience, flavor preferences,

affordability, entertainment, healthy choices and

made-to-order convenience will drive significant

changes.

On the other hand, the foodservice industry

has come to realize that health doesn’t sell – at

least not for now. Most fast-food customers don’t

necessarily want to know what’s in food. They

just want to enjoy it without the burden of guilt.

Yet, as demographic changes occur, nutrition will

become a bigger issue over time.

Active interest in health and nutritional

issues, have most likely slowed in response to

many years of nutritional “terrorism”. Foodservice

may lead in culinary trends, but its nutritional

correctness lags retail. This is largely attributed to

the absence of nutritional labeling on foodservice

products, but definitely also influenced by the

mindset of consumers, who seem to have a

double standard when it comes to purchasing

food in a grocery store and when eating out.

For example, everybody will say they want to

eat healthy, though when decision time comes,

the food chosen often doesn’t match the

intentions. Subsequently, the success of food is

only driven by taste, with everything else taking

second position. There are endless opportunities

for creating new and exciting foods and

beverages. However, the secret of success in the

marketplace is repeat business. It’s as simple as

that!

But change at large corporations doesn’t come

easy. In 1993, for example the McDonald’s US

based senior management approved a store test

in 1993 in the Philippines with great reluctance,

to evaluate a new formulae concept for

hamburgers. A patented technology using soy

protein granules, allowed interaction between

some 50% beef and some 50% meat analog

ingredients. These right-sized formulated

affordable foods have become a permanent

feature on the menu-board for the enjoyment of a

great many customers. At the start of the 21st.

century, hundreds of millions formulated meat

patties are being sold through branded fast food

companies, showing that affordable quality and

tasty nutrition can actually become a reality.

Fast-food experts credit these sort of product

successes to quantum leaps in non-meat protein

technologies, in which soy protein is the main

driver. In the meantime, more spin-off menu

board meat and poultry products have been

introduced throughout the region, allowing a

larger part of the population to afford the luxury

of eating out and enjoy good food created by

mother nature.

Affluent Change

The percentage of US households made up of

married couples with children dropped from 45%

in 1970 to 25% in 2000. No doubt the face of the

family has changed, with increasing numbers

delaying childbirth and baby boomers becoming

empty nesters. Hectic lifestyles are the norm for

large segments of society, such as working

women who try to juggle the impossible task of

being successful as a professional, a mother, a

wife and a lover all at the same time. This

development, together with a growing number of

single households has led to discerning

consumers who need greater flexibility in meal

opportunities that can be indulgent yet healthy.

The future will focus less on families and

redirect increasingly to the life-stage consumer

segments. Marketing to children is one of the

sub-categories. Instinctively children know how to

influence the decision making process of parents,

using negotiating skills and tactics to leverage

good behavior.

The reduction of family size and the increased

influence of outside communication such as

television and the internet, have made children

into more equal family members earlier in their

life. Translated to food and fun, this means that

“entertainment” has become an essential part of

the value that restaurants need to provide in order

to stay ahead of the pack. A recent development is

fast-casual dining at franchised chain restaurants.

This is the fastest growing segment and has

occurred at the expense of independent

restaurants.

The pendulum of change is in full swing.

Newer restaurant styles are now designed to

deliver a dining experience at a more appealing

fast-casual value. They offer home-style meals to

tempt to solve the five o’ clock dilemma for a

large number of people with busy households or

“won’t cook – don’t cook” generations. The

challenge is to provide a freshly prepared, great

tasting and nutritious meal at a reasonable price

for a large group of consumers who are too worn

out to fix a meal that requires time and effort.

These fast-casual restaurants with an upscale look

and appearance probably try to integrate a center

of the plate serving such as a functional non-meat

protein enhanced pre-cooked meat portion or a

pre-cooked meat analog together with freshly

prepared contemporary food selections featuring

some classics and ethnic culinary foods with

provocative bold seasonings from around the

world.

Too much of a good thing

The United States society represents an

example of how the world is misusing the true

meaning of food. An alarming number of

Americans are considered overweight and obese.

The waistline of Americans is expanding faster

than those of people in other parts of the world,

though it is true that affluent consumers in

countries such as Australia and in Western

Europe fight the same battle, albeit with a slight

delay. Published research data suggests that

overeating accelerates the aging process, and


Nutrition trends

Downsizing super-sized foodWill meat, fat and sugar-filled foods be

sustainable and reconciled in a rapid

changing demographic landscape of

overweight and obese consumers?

Henk W. Hoogenkamp issenior director strategictechnology of The SolaeCompany. (a DuPont/BungeJV). He is a former presidentof DMV International USA.Hoogenkamp has been

successful as a publicist and creator offuturistic food concepts including lifestylefoods & nutraceuticals.


what is already clear is that obesity does seem to

damage health. In the developed countries and

some affluent societies there is a distinct trend

toward overeating. Is obesity the cost of

modernity? Can compulsive eating be considered

as a form of malnutrition? In the United States

the number of overweight and obese people

doubled in the past 20 years to a staggering 64%.

Are people themselves to blame for succumbing

to overeating high caloric density foods that are

marketed cleverly by meat, snack, food and

beverage companies? Are people made to believe

that so-called low-fat foods can be eaten in

abundance, falsely assuming that these foods are

harmless?

Prosperity, lack of nutritional education, lack

of physical exercise, and of course the abundant

availability of fat- and sugar-loaded foods at all

times during the day can be considered the real

culprits. Franchised fast-food restaurants and a

growing number of home meal replacement food

selections all serve belt-straining meals. More is

better. Increasingly, physical activity together with

food intake moderation is the lifestyle change

most likely to have far-reaching consequences in

preventing onset of many degenerative diseases.

Super-size

Consumers themselves are responsible for

their food choices, but in all fairness some finger

pointing to the American way of living is

justified. After all, American fast food companies

– in their unrelenting drive to generate sales and

profits through a global empire of restaurants,

have introduced super-sized and value-sized food

portions. Marketing campaigns funded by almost

unlimited advertising budgets directed at certain

target groups to Americanize world food habits,

must definitely share some of the blame in

making people eating more than is needed.

Increasing the size of the serving portions helps

to spur sales and subsequently profits from food

when manufacturers increase serving size.

Research clearly shows people eat more when

they’re given larger portions. Each restaurant and

food company has an incentive to get more food

onto the plates. There is no question that

consumers suffer from portion distortion.

The trend toward super-sizing began in the

mid 1970s, but increased sharply in the mid

1980s. From there on the trend only continued

and perhaps that is why developed countries are

now faced with two generations that clearly show

a linear line between food-size and waist-size.

Super-sizing is not just happening with fries,

burgers, pizza and soda pop. Equally responsible

are the colossal size versions of bagels, muffins,

chocolate chips cookies and croissants. For

franchised fast food restaurants it is relatively

cheap to offer super-sized food portions. Food

costs are only marginally higher, therefore the

marketing blitz to draw higher numbers of

customers on super-value promotions obviously

justifies the load of the extra but hidden calories.

On the other hand, it is also true that any food

can theoretically be part of a balanced diet if the

portions are tiny enough. Once inside the

restaurant or drive-thru lane, customers are

enticed not to make intelligent and sensible

decisions.

Although many countries have national health

guidelines for reducing obesity, very few

countries actually have a plan to implement these

guidelines. In a way a schizophrenic behavior

occurs, because people who want to eat right have

to behave abnormally. For example, most people

don’t actually pay close attention to what

constitutes a serving. “A serving is what is being

served,” is a rather logical conclusion.

No longer is obesity only an adult problem. In

the United States, 1 out of 4 children is now

overweight. This alarming increase shows every

sign of becoming an epidemic. To attack this

severe health problem it is necessary to find a way

to reach parents first. Overweight and obese

children are not only a health risk, they also feel

targeted at school and other social settings.

Parents feel embarrassed as well, as it is hard to

feel proud of their offspring. Since the 1990s the

number of overweight children has grown

rapidly. Even more worrisome are the strong

indications that overweight children are more

likely to stay overweight or obese as adults. It

looks like a script for a science fiction movie:

obese parents and undernourished children living

together in a high-tech house in a nice sub-urban

community with empty streets. After all,

television and computer screens and

unsupervised snacking are the only exercise most

children are accustomed to, while both parents

are busy with their careers.

For some food companies it is about time to

get some out of the box collective thinking in

place, because it is clear that American fast food

imperialism not only has generated at least two

generations of over-sized and overweight people,

but equally important, now are confronted with a

society suffering from degenerative conditions

such as heart disease, high cholesterol and high

blood pressure, stroke, bone and joint weakening,

osteoporosis and not the very least mental anxiety

and depression.

On the other hand, fast progress in technology

driven lifestyles has fast-forwarded the attitudes

and behavior of people, yet slowed down physical

activities to dangerously low levels.

Human genes are programmed to be

physically active, and the abundance of foods with

large amounts of hidden calories has created an

imbalance between caloric intake and a decline in

calorie-burning activities.

How long will it take before the evils of the

couch-potato syndrome make way for sensible

weight management? How to get massive

numbers of people motivated to react and fit

exercise into their daily lives. Based on current

knowledge, there is no quick fix solution in sight.

The complexity of the issues, deal with social

infrastructures, changing food habits, sedentary

behavior, and above all decreasing motivation for

physical activities.

Perhaps the time has come for franchised fast

food restaurants to give serious thoughts to the

earlier suggestions to install a Nutritional

Advisory Board. After all, the past has proven that


Nutrition trends

Food safety and food security are thetopics of the moment in the food industry,according to a panel of experts. The panelresponded to questions about what theythought would be the top five trends for2005 at the IFT annual meeting in Chicago.Lester Crawford, Deputy Commissioner ofthe Food and Drug Administration (FDA)stated that the threat of terrorism to thefood supply is being addressed todaythrough the Bioterrorism Preparedness &Response Act that was introduced last year.Crawford added that the federalgovernment has invested more than $90million in food security initiatives – rapidcommunication systems, outreach andeducation, training and additionalequipment to help monitor the importationof foods into the US.

Also on the panel were Todd Abraham,vice president of research at Kraft Foods,Leah Evans, senior vice president of R & Dat Pizza Hut, Elizabeth Sloan of Sloan Trendsand Solutions Inc. and Mike Pariza of theUniversity of Wisconsin. Food safety wasanother area of heightened concern withissues like BSE and Chronic Wasting Disease,Vibrio vulnificus in shellfish, acrylamides andSalmonella enteritidis in eggs all on the

regulatory radar screen of the FDA. Therewas also consensus amongst the paneliststhat the obesity epidemic in the US willinfluence the future of the food industry inthe country. The girth of the nation is givingrise to a host of other health and wellnessissues related to obesity – high bloodpressure, diabetes, heart disease, dentalcaries, and a diet based on high protein andlow carbohydrates. The desire for pure foodis also increasing, with consumers wantingproducts free of antibiotics, GMOs, transfatty acids and cholesterol. Sloan said thatconsumers are reaching beyond organic andnatural, looking for pesticide-free,responsibly grown, free-range and evenhandmade.

Other trends mentioned by panelistsincluded nutragenomics, an agingpopulation, environmental sustainability,setting international standards for foodsafety, and the ongoing debate aboutbiotechnology and GMOs. Conveniencewas however the central trend, withultimate convenience highlighted.“Consumers want ready-to-eat, ready-to-heat, and products packaged for on-the-goconsumption, and they’re willing to pay forit,” commented Sloan.

Food security the key trend


somehow, someone in the future is going to pay

the price for super-sizing the body of customers.

Down-sizing food intake

Increasingly, people eat because they respond

to time of day, social environment and impulses,

such as smell, observation or just thoughts.

Although obesity has reached epidemic levels,

medical funding on a per patient basis is

extremely limited compared to other health

conditions, such as heart disease, cancer, diabetes

and HIV. The future of healthcare costs to combat

obesity related diseases is beyond

comprehension. But perhaps even more

important is the overriding issue how to find

communication ideology and consumer platforms

to discuss these issues? So far the food industry

and the scientific health professionals have only

contradicted each other with as a logical

consequence that consumers have been

inundated with results touting glory or doom for

literally every single food that is known. Healthy

food does not necessarily translate into

elimination of a key ingredient such as fat.

Consumers like to indulge in pure pleasure; they

have come to expect it and it has resulted in

concerned consumers having shifted to weight

management, with more emphasis on positive

nutrition rather than negative nutrition.

For example, soy protein is now extensively

being used beyond the typical use in meat

emulsions and water binders in processed whole

muscle meats such as roast beef. Instead a great

many high protein/high fiber cereals together

with ready-to-eat food bars, and ready-to-drink

smoothies now deliver health benefits.

There is a growing belief that being

overweight, even obese, isn’t as unhealthy as

being sedentary. Recent research at the renowned

Cooper Institute for Aerobics in Dallas, TX,

showed that unfit lean people, as measured by

performance on a treadmill were nearly twice as

likely to die as the fit, including the obese fit. This

indicates that a more effective treatment might be

a healthful diet with lots of fresh fruit and

vegetables and exercise, though not purely for the

purpose of weight loss. The latter draws attention

to a larger problem, which is the obsession of

modern society with appearance. Most people

work out not to get fit but to get thin and when

that fails to happen they quit the daily routine.

Obviously there is a major challenge for health

care professionals: getting people to focus on

feeling better rather than looking thinner.

Needless to say that it will take a great many years

to dispel the myth that thin equals fit, and fat

unfit. However, just to be sure, the healthiest

option is to be fit and trim.

Translated to foods, this means that people

should eat less high-calorie foods, especially foods

high in saturated fat and high in sugar; be

physically active, prefer unsaturated for saturated

fat and use less salt. The consumption of several

portions of fruits and vegetables help reduce the

risk of several diseases including cancers,

diabetes type-2, high blood pressure and heart

disease. These diseases count for approximately

66% of all deaths in the United States and it is a

given that men develop these chronic diseases

earlier in life and have higher death rates than

women. Fruits, vegetables and legumes are

packed with vitamins, minerals, fibers and

hundreds of disease-fighting phytochemicals;

natural substances that work to protect health and

are the best insurance for longevity.

Pro-active versus sedentary

Government, healthcare professionals and the

entire chain of food processors must unite and

develop a plan that uniquely incorporates health

cuisines and physical activity. Pro-active in health

and diet guidelines rather than just compile

statistics and react and only signal trends

accompanied with the occasional warnings.

Continuing contradictions and confusion are not

helping people who want to be in charge and try

to stick to a balanced and nutritionally sound diet.

In the past, dietary guidelines took the whole

population and based the recommendation for

the majority of consumers. However it is clear

that in developed countries the affluent

consumers that already “enjoy” an abundance of a

plethora of food choices, individually customized

food selections are needed in search for health,

well-being and longevity. Functional niche foods

of today will most probably transform into

normal food options, addressing the needs and

wants of people who are prepared to spend extra

on foods in order to remain energetic, mentally

sharp, not to mention the delay of onset of age

related diseases such as osteoporosis, cancer,

heart disease and boosting the immune system.

Food or pharmaceutical companies will eventually

exploit nutrigenomics to develop functional foods

tailored to meet the needs of individual people

with specific genetic traits.

Problem or solution?

Is the meat, food and beverage industry part

of the problem or part of the solution? Leading

ingredient and food companies try very hard to be

involved in both playing fields. These companies

manufacture and sell ingredients and food brands

which first entice the consumer to indulge and

then offer products to shed accumulated weight.

For example, functional ingredient companies

are known to help (prospective) food companies

to quickly develop new products or using more

cost efficient alternatives. These ingredient

companies call this “leveraging” and as long as

they do it in different regions or countries the

bandwagon keeps moving. However, because of

the internet and other forms of instant

communication, the functional ingredient

marketers need to understand that they are no

longer alone and have to fight alternative

performance ingredients, nutritional and cost

efficient solutions. It is expected that, for

example, functional ingredient leveraging such as

the use of soy protein isolate in processed meat

will be increasingly difficult to implement as

percentages of inclusion levels increase, and it

has to be acknowledged that this strategy might

also have many limitations.

Lifestyle dimensions

Although it started a few decades ago as a

fragmentation of movements, vegetarianism will

ultimately lose its position as a niche market

segment and slowly but surely integrate in

mainstream diets. Vegetarianism has been

instrumental to provide people of all walks of life

a realization of its value to both environment and

health. The contributions of the vegetarian

movement have evolved to a greater awareness of

both socio-economic and health driven issues.

Now that this awareness has penetrated a large

part of the population, it can be anticipated that

vegetarianism will lose its strict definition and

slowly move into mass market positioning.

Eventually, “vegetarian” will become part of the

catch-all segment “lifestyle foods.”

The last few years have signaled that

vegetarianism is on the wane, but fortunately the

decline is overshadowed by the growing number

of meat reducers or lifestyle food consumers. The

rapid growth of vegetarianism in the early 1990’s

is leveling off at best, and instead a significant

demographic movement is taking place on

actively reducing meat intake, not to mention

fashionable and psychologically driven lifestyle

food consumers, such as young professionals and

young urbanites. Consumers in the 1st decade of

the 21st century are much more individualistic

and want their purchases, including food

selections, to reflect a different set of personal

values. For food marketers it is important to

monitor these changes to stay ahead of the curve.

While it is true that vegetarianism is on the

decline, actively pursuing less meat consumption

is definitely vogue. To a certain degree,

demographic trends are influencing the way in

which food will develop. Demographic changes,

albeit subtle, change faster than marketers like to

acknowledge. For example, the size of the youth

market is dwindling, while at the other end of the

scale aspirational consumers over the age of 50

are skyrocketing.

But marketers should not abandon the

influence of the new generation either.

Youngsters definitely look at food differently. It is

important to realize that the younger generation

who is growing up with moderation of (red) meat

intake, will have no problems embracing genetic

modifications, or the addition of certain natural

components in foods to meet goals such as

environmental, mental and physical well-being as

well as a rapid growing intolerance to substances

such as gluten, wheat and many other forms of

food inflicted allergies.

Today’s children are growing up faster than

any previous generation and their interactive

mindsets demand instant gratification.

Increasingly, these young consumers turn to

brand names for security

and affirmation. Foods, including a growing

selection of pre-packaged performance and fun

foods therefore need quality, trust, honesty and

safety. ■


Nutrition trends

by Henk W. Hoogenkamp


Conjugated Linoleic Acid (CLA) has been one

of the hot ingredients in recent times, as

supplements begin to find their way into dietary

supplements and functional foods. World retail

growth for CLA has risen from $34.6 million in

2000 to $65.4 million in 2001 and $125 million

in 2002, according to Cognis Health & Nutrition

estimates. David Lewis at Loders Croklaan Lipid

Nutrition estimated the market for CLA to be

about 500 tons per annum, with annual growth

of 25% for the past three or four years. “The

market for CLA is getting bigger by the day. The

big chain stores are starting to bring in more

products containing CLA because it really does do

what it says it does,” according to Mike

Benjevenga at Cytodyne Technologies. Consumers

are becoming increasingly aware of the benefits of

CLA as more and more products are including it.

For Lewis this is especially true in sports

nutrition, “where especially bodybuilders look to

lose body fat and increase lean body mass.”

Fat reducer

CLA is a naturally occurring fatty acid that has

been shown to be important in the reduction of

body fat mass, as well as being able to maintain

or increase lean body mass, and thus helping in

the battle against the worldwide obesity epidemic.

Scientists are still not entirely sure how CLA

works in producing fat loss, however research

indicates that its action is concentrated in two

main sites – fat cells and skeletal muscle cells.

CLA appears to decrease the amount of fat stored

after eating, decreasing the total number of fat

cells. The rate at which fat is used for energy and

fat breakdown in fat cells is also increased with

CLA. Cognis cite a number of studies indicating

the ways in which CLA works to decrease body fat

mass. CLA has been shown in studies to decrease

the activity of lipoprotein lipase (LPL), the enzyme

that transfers triglycerides from the blood into

adipocytes for storage.

From a chemical angle, linoleic acid is an 18-

carbon fatty acid with two-double bonds, the last

double bond occurs at the 6th carbon molecule

from the end, according to Pharmanutrients. CLA

is one part of the omega-6 fatty acid family, which

mammals cannot naturally synthesize, because

they lack the enzyme necessary to convert it from

linoleic acid to conjugated linoleic acid. CLA

isomers are unique because their double bonds

are not separated by a methylene carbon, as

occurs in other fatty acids. Linoleic acid, an

omega-6, and linolenic acid, an omega-3 acid, are

both essential fatty acids (EFA’s) that the body

cannot produce. However while the typical

Western diet contains too much omega 6 acids,

CLA functions more like an omega 3 fatty acid,

such as fish oil, which helps support circulatory

and cardiovascular system function.

CLA naturally occurs in our diet, and is mostly

found in beef and dairy fats, although traces can

also be found in lamb, veal, turkey, chicken and

pork. However, a shift in our diet and the change

in the way in which cattle are fed, has led to a

marked decline in the amount of CLA we

consume. Studies suggest that we require an

intake of 3.5g of CLA per day, however a review of

CLA intakes in Europe suggests that average daily

intakes fall well short of this (in Germany it is

estimated to be as low as 0.5g a day). Dr Heather

Nelson Cortes at Cognis Health and Nutrition put

the main reasons for the marked decline in CLA

intake over the past 30 years down to a number of

factors. These include a reduced beef and beef

product consumption, due partly in Europe at

least to the BSE crisis and the way in which

rearing livestock (grain-fed as opposed to grass-

fed) affects CLA production. Other factors include

the increasing preference for plant oil/fats over

animal fats, the reduced intake of animal

products with a shift towards a growing number

of vegetarians and the switch to liquid oils in fast-

food services.

Getting it into the diet

Because we are not consuming enough CLA

in our regular diet, the three main producers of

CLA supplements are trying to convince the

consumer that we need to add it in the form of a

supplement or in foods. Cognis Health and

Nutrition now produces Tonalin CLA after

acquiring it from Natural Inc. in Norway in

February of this year (which had been producing

it since 1996) and hold GRAS status.

Pharmanutrients claim to have commercialized

the nutrient industry’s first branded form of CLA

in 1996 and introduced the second generation of

CLA in 1999, known as CLA One. Meanwhile,

Loders Croklaan Lipid Nutrition produce the

Clarinol brand of CLA, and according to Lewis

hope to achieve GRAS status by the end of 2004.

All of these supplements are produced using the

same patented process, which derives natural

linoleic acid found in safflower oil into CLA,

although concentration levels vary between the

three. CLA is available in water dispersible and

oily forms. “Safflower based CLA tastes just like

other oil. It is very easy to use in applications and

doesn’t require much masking just like other oil,”

commented Lewis at Loders. “It is a difficult

process compared to other ingredients, and it

requires a lot of skill,” noted Franz Timmerman

at Cognis. “It requires shifting double bonds from

linoleic acid. If you don’t have the skill it can

produce different isomers, which are not desired.”

“There are only two active ingredients in CLA.

The main challenge is to get a very good shelf life

so it survives the storage of the food,” he added.

As with most nutritional ingredients the

passage for CLA is from dietary supplements to

food applications. “Apart from our experience

with sterol esters, all other health ingredients

move from dietary supplements to the food

industry,” according to Timmerman. Cognis has

already developed two food applications for CLA

and according to Timmerman, the oily or water

dispersible forms of CLA can cover more than

90% of food applications. He cited dairy products

such as milk and yogurt and nutrition bars as


Ingredient innovation

Fighting fat with a fatty acidA number of studies have shown CLA to be important in the reduction of body fat

mass and in increasing lean body mass. CLA is already beginning to make its way

from dietary supplements to functional foods.

CLA is extracted from the safflower

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David Lewis


ideal for fortification with CLA. “The triglyceride

form, which naturally occurs in nature can be

applied in all food systems. It has also been

developed in a water dispersible powder, which

can be blended with other powder form

ingredients in food systems such as baked goods

or cookies,” added Timmerman.

Meanwhile an extensive branding program by

Loders Croklaan has helped create the demand

for consumer products, according to Lewis. “A lot

of innovative products have been brought to the

market such as bars and drink mixes,” he

commented. Loders Croklaan completed an

extensive US promotional tour at a cost of about

$1 million in promoting CLA during June and

July. The so-called Clarinol CLA Caravan tour saw

the company visit Boston, Philadelphia, Atlanta,

Chicago, Houston and Los Angeles. Celebrity

fitness trainer Greg Isaacs (who has trained Pierce

Brosnan and the cast of the program Friends)

hosted each two-day visit, in a bid to promote

Loders Croklaan’s Clarinol brand.

Prospects

But what is the potential of CLA on the

marketplace? According to Timmerman there is

no existing market for CLA as yet, therefore

attracting 1-2% of the population to buy the

product would be a success (he cites these as

similar statistics to those for sterol esters). He

noted that it may take a while longer to bear fruit

on the European market as opposed to in the US.

“There is already a good market for dietary

supplements in the US and the European market

is more concentrated,” he commented. One of the

tricks still appears to be convincing the consumer

that CLA is an ingredient that actually works, as

well as informing the consumer of the difference

between good and bad fats. “The public has

become a little skeptical as there have been a lot

of products on the market that simply don’t

perform. CLA is safe and has no adverse side

effects. The public is also still a little confused

about beneficial fats. The media kind of screwed

that up although awareness is growing daily,”

according to Mike Benjevenga at Cytodyne

Technologies.

Cytodyne were one of the first companies to

introduce CLA into the mainstream food market

in the US, with the launch of Xenadrine bars in

September 2002. This is claimed to be the first

protein bar engineered to burn fat and build

muscle at the same time. According to

Benjevenga, Cytodyne were not the first to use

CLA in a meal replacement bar (following EAS

who had included a small amount of the salt of a

CLA in one of its bars), however, they were the

first to use a high amount of CLA. “CLA seems to

prevent the yo-yo diet. Two Xenadrine bars will

lose fat as well as keep it off providing the body

with 3 mg of CLA. It also tastes good, so what

better way to snack?,” he commented.

Cytodyne promote their bars with numerous

“success stories” featuring consumers who lost a

lot of weight as a result of consuming Xenadrine

bars. The company points to a recent study, which

found that subjects using CLA experienced an

838% greater fat loss than the placebo group.

These individuals are said to have not only lost

body fat, but also gained over 5 pounds of lean

muscle. Xenadrine bars contain the oil form of

Clarinol CLA. The Clarinol brand contains the

highest level of the active isomer, according to

Benjevenga. “The oil form is preferred to the

powder form as it offers a higher level of stability,

and the triglyceride form can provide the bars

with a shelf life of 18 months,” he noted.

But what is the future of CLA? In Sports

Nutrition 2003, Luke Bucci of Weider Nutrition

International argues that CLA “is not a magic

bullet against the bulge” and that two hurdles

remain regarding its greater acceptance. “The first

hurdle is to determine the dose of CLA required

to statistically effect significant fat-loss. The

second hurdle, which is related to the first,

revolves around how to get the most efficient

results from a relatively costly ingredient. In other

words, what kind of diet and exercise program

along with CLA gives the best results?” according

to Bucci. With sales of supplements and food

products fortified with CLA picking up and

knowledge about the ingredient growing amongst

consumers, it seems clear however, that people

willing to explore every avenue in their bid to lose

excess weight will try it, whether it is a magic

bullet or not. ■


Ingredient innovation

by Robin Wyers

Franz

Timmerman

Timmerman: “There are only twoactive ingredients in CLA. Themain challenge is to get a verygood shelf life so it survives thestorage of the food.”


Most consolidated beer markets are now

being dominated by about three major breweries,

with a number of small ones following behind, as

the world leaders continue to grow and expand

into new markets. In the enormous US market

for example, nearly one of every two beer barrels

sold, is produced by the world’s biggest brewer

Anheuscher-Busch, the producer of Bud Light

and Budweiser. According to information based

on first-quarter shipments this year, the St. Louis

based brewer now holds over half the US market.

Bud Light outsells Budweiser, the best-selling

regular beer in the US, with more than double

the sales of the second and third in the list of

light beers (Coors Light and Miller Lite)

combined. Anheuscher-Busch also produces the

second-best-selling regular beer with Busch,

which has a quarter the sales of Budweiser.

According to first quarter earnings, Anheuscher-

Busch sales grew by 5% in the first three months

of 2003 to $3.28 billion, with worldwide sales

growing by 1.7% to 26.7 million barrels.

Next in the list of world brewers is the newly

merged SABMiller PLC, which came as a result

of South African Breweries takeover of Miller

Brewing Co. from Philip Morris Co., in a deal

worth $5.6 billion (acquiring a 64% share). SAB

has grown far beyond its African base, acquiring

breweries in Eastern Europe, Asia and Central

America in the last five years. This merger has

seen Belgium based Interbrew drop from

number two to number three on the list with the

Netherlands based, Heineken following in fourth

place, producing over 11 billion liters of beer in

2002. Interbrew recently acquired the strong and

profitable German based Gilde and Hannover

Breweries, in a deal worth € 575m. Meanwhile

two of Heineken’s most important recent

acquisitions have been Egypt based Al Ahram

Beverages, in a deal worth US$287m and

Russia’s third largest brewer, Bravo for $400m.

The German market

These takeovers all suggest that the global

beer industry will only become more and more

dominated by a select group of breweries in the

near future. According to Manel Vrijenhoek at

Heineken, the only consolidated markets, which

are not comprised of two or three large breweries

and a group of smaller ones are Germany and

China. In fact 75% of all breweries in the EU are

in Germany with a massive 1,279 in the EU’s

most populated country. Beer is one of the pillars

of German industry and culture and it is one of

the few countries, which largely rejects importing

and exporting it (just over 11% is exported). “The

percentage of foreign beers in the German

market is small (2-3%). Germans love their local

or regional brands. There are thousands of them.

They taste distinctively different and are adjusted

to the regional taste – e.g. more bitter in the

north of Germany, less in the south,” according

to Heidemarie Klemme at Holsten.

However, despite the number of breweries,

the actual size of them is tiny in comparison to

world giants such as Anheuscher-Busch,

Heineken and Interbrew. While Germany’s

biggest brewer, Holsten produces 1 billion liters

of beer each year, Heineken produced 11 billion

in 2002. How long Germany’s legion of brewers

can remain independent remains to be seen.

Germany’s only serious beer exporter, Becks was

sold to Interbrew last year and Time reported

Credit Suisse First Boston (CSFB) analyst, Ian

Shackleton predicting that by 2010, 70% of

Germany’s beer will be in the hands of a few

global players.

An even more immediate concern for the

German beer industry is that Germans are

simply drinking less beer. Consumption of beer

varies greatly between European countries, but

the Germans have nearly always been near the

top of the list. However, the Czech Republic now

currently lead the way according to a study by the

German Brewers Association, consuming an

average of 158 liters a year in 2002. The Irish

overtook the Germans into second-place this year,

with 125 liters per annum, as opposed to 121.5

liters. Other statistics from the study revealed

that on average, the UK consumer drunk 97.1

liters of beer in 2002, the Dutch consumed 80.5

liters, while at the bottom end of the scale were

the French and Italians with respective figures of

35.9 liters and 28.9 liters, largely due to their

preference for wine.

According to the German Brewers

Association some of the figures are misleading,

due to the fact that the Slovaks have always

drunk less than the Czechs and since the

breakup of Czechoslovakia, the Czech Republic

has quickly risen to the top of the table. However

the figures for Germany are already declining

further and will fall even more if early 2003

statistics continue in their current trend. Factors

influencing the decline in beer consumption in

Germany relate to the economy, with high

unemployment and tax increases hitting beer

consumption.

The disappearing Germans

The decline apparently also follows similar

lines to the fall in the number of 15-34 year olds

in Germany, from almost 24 million in 1992 to a

current 20 million, according to CSFB statistics.

“The amount of young people in the German

population has been declining for a number of

years. The per-capita-consumption has also been

going down for years. It used to be 152l in the

seventies and is now 122l,” commented Klemme

at Holsten. Despite the best efforts of beer

companies to convince the youngest generation

of alcohol drinkers to choose beer over other

drinks, many are being tempted away. “TV-Spots

and ads show beer in situations that are attractive

to young people between 18 and 28 years of age.

Beer brands are sponsors of events set up for this

young generation. Beer is offered in pubs and in

clubs. Nevertheless beer has lost sympathy

amongst young people and some of them have

switched to wine or alcopops,” noted Klemme.

The success of alcopops goes far beyond the

German market of course, but while Vrijenhoek

at Heineken admitted that it has had some effect

on the beer industry, she felt that the peak of

their success has already been reached and that


Beer design trends

German beer sales plummetOne of the most German of industries is undergoing a serious crisis. German brewers

are blaming their woes on the disappearing age group of young people and on the

government’s introduction of a 25-50 eurocent deposit on cans.

Even the largest German breweries are miniature in

comparison to the likes of Anheuscher-Busch.


these drinks were predominantly aimed at the

teenage market anyway. “2 years ago it [the

popularity of alcopops] normalized. The first

companies who were successful in the beginning

were copied by others, who failed straight away.

Anyway these drinks are aimed at a different

target audience and the hype has been for that

group. From age eighteen upwards people begin

drinking beer, which is a different age group

category.”

One of the ways in which the German beer

industry has responded to the demand for more

alcopop like drinks has been the introduction of

beer mixes, with 3% of the beer market currently

made up of these drinks. By blurring the lines

between beer and flavored alcoholic beverages

and energy drinks, brewers have successfully

launched hybrid beer-based products. Almost

unique to the German market are drinks made of

a mix between beer and cola, such as

Felsenkeller’s Herford’s 50/50 Bier + Cola.

Herford also has fruit flavored beers on the

market. Herforder 50/50 range comprises Cola –

a beer and Cola blend in equal proportions;

Herforder 50/50 Alster – a blend of 50%

Herforder and 50% lemon lemonade; Herforder

50/50 Apple – a blend of 50% Herforder and

50% apple beverage with a fruit juice content of

10%. Lemon is by far the most popular flavor in

terms of occurrences, according to Innova’s

database of new products.

The problems

The most heavily affected German breweries

by the decline in the German beer industry are

apparently those of a medium size (companies

brewing between 500,000 and 100 million liters

per year). According to the German Federation of

Brewers, the number of medium sized breweries

has fallen from 610 in 1995 to 466 today, as a

result of mergers, closures and acquisitions.

Meanwhile, microbreweries (those producing less

than 500,000 liters of beer per annum) appear to

be thriving. However, despite being the largest

group, they only make up 2% of the beer

produced.

The most significant factor hitting the

German beer industry right now is the

introduction of a deposit of between 25 and 50

eurocents on recyclable cans and bottles, which

came into effect across Germany in January. This

deposit has effectively doubled the price of

drinks. This deposit has hit the major breweries

who sell in shops more than it does the smaller

ones who simply sell barrels to bars, with first-

quarter volumes for beer down by 9.1% in the

first-quarter of 2003, according to CFSB. The

most optimistic expectations for the rest of the

year are a 5% decline in volume, but it could be

much worse. Because there has been no

nationwide system for returning the cans and

bottles, consumers have been forced to return

them to where they were purchased, which is

hardly ideal if they were bought at a petrol

station, or through a vending machine. Because

of this, many consumers have simply opted not

to buy cans, hitting the German canning industry

even more than the beer producers.

Ulrich Kallmeyer, chief executive of

Germany’s third largest brewer, Radeberger

responded to the deposit at this year’s annual

meeting by hitting out at the German

government. “Our rulers are behaving like

apprentice sorcerers. Europe is once again

marveling at this original German custom: the

self-destruction of a well-functioning market,” he

blasted. Some 40% of Holsten’s output is sold in

cans and according to Klemme, Holsten lost 70%

of the sales of beer in cans between January and

June 2003. Danish giant, Carlsberg Breweries

responded to the introduction of the deposit by

selling its production facilities for its subsidiary

Hannen to German brewery Oettinger Brauhaus

GmbH in June. Oettinger will assume

responsibility for the production and 152

employees, Hannen’s contracts for delivering

discount beer to supermarket chains, and the

filling of bottles and cans for other German

breweries. The company did state however that

Tuborg, Hannen Alt and Gatz Altbier brands will

continue to be owned and marketed by Carlsberg

Breweries.

It seems apparent that one of the most

German of industries is undergoing a crisis,

which of course can be partly blamed on the

struggling economy, as well as the shift in

preferences amongst young people, but certainly

also through these new laws installed by the

government, which are causing Germans to

question whether it is worth paying an extra

amount for their beer. Beer companies had been

warned about this in the past, with sales figures

for Becks dropping by 20% in 2000, following a

hike in prices. Beer may well be more of a

culture than an industry in Germany, but it is

apparently also something that must come at a

low price. Klemme at Holsten was optimistic that

things will pick up again however, “As soon as

the legal and technical situation on how to return

nation-wide one-way-packaging is set, there will

be a rise in the demand for it again – especially

in appropriate situations like hiking, sailing and

being on the move. It could be, however, that the

cans than will be replaced to a large extent by

PET-bottles.” For example, one innovative

introduction earlier this year was a 500ml plastic

bottle with a wide mouth from Bitburger, which

can be reclosed. It could well be down to these

sort of innovations to save the German beer

industry. ■


Beer design trends

by Robin Wyers

Alcoholic soft drinks63

Lager88

Ales and stouts50

Cider and perry12

Specialty107*

Specialty beers dominate new product launchesCategories of new beer and cider introductions

*9 of the 107 specialty beers surveyed were positioned as either low andIight, functional and fortified or natural and organic

Analysis of 320 worldwide beer launches (January-July 2003)

Source: Innova WIN database

Tequila5

Seaweed2

Lemon18

Cola9

(all on the German market)

Lime6

Gin2

Apple3

Vodka3

Others13

Lemon the most popular flavor to accompany beerOf the 107 specialty beer introductions, 47 had at least one other flavor

Source: Innova WIN database


Reeb Beer: beer with

added calcium

Beer with calcium.

Ingredients are: water,

malt, barley, hop, lactic

calcium.

China: Shanghai Asia

Pacific Brewery

Golden Reeb: whole malt

beer

Fermented with imported

barley.

China: Shanghai Asia

Pacific Brewery

Miller Genuine Draft: beer

Beer brewed from the finest

malted barley, selected cereal

grains, and choicest hops.

Contains no additives fo

preservatives.

Germany: Miller Brewing

Company

Diebels – dimix: cola

flavored beer

A cola flavored beer that is in

keeping with the latest trends:

a drink with less alcohol and

more refreshment. Contains

2.9 % alcohol by vol, and 43

cal/100ml the proportions of

beer to cola are 60%:40%.

Ingredients are: top

fermented dark beer (water, malted

barley, hops, carbonic acid for

fermentation), caffeine containing cola

(water, sugar, carbonic acid, coloring

agent E150c, acidic agent E338, vitamin

C, natural flavoring and caffeine).

Germany: Privatbrauerei Diebels Gmbh

& co. kg

www.diebels.de

Zinniz Gin Lemon Beer

Gin and lemon flavored

beer. Ingredients are: water,

hops, malt, lemon juice,

lime juice, lemon flavor,

lime flavor, gin flavor and

sugar.

Netherlands: Grolsche

Bierbrouwerij

Suntory, Rakuzen-

Happosyu: low-malt,

economy Japanese beer

Ingredients are: malt, hops,

barley, saccharine, fortified

starch and malt rootlet.

Japan: Suntory Co. Ltd.

Kirin, 8 Gatsu No Kirin-

Happosyu: low-malt, low-

priced Japanese beer

Happosyu is made using

hops from New Zealand.

Contains: malt, hops, barley,

rice, corn, starch and sugars.

Japan: Kirin Brewery Co. Ltd.

Barre’s Alster: beer with

lemonade

Beer mixed with lemonade.

Said to contain 40% less

calories. Contains 50% beer

and 50% lemonade.

Germany: Privatbrauerei

Ernst Barre GmbH

http://barre.de

Pilsner Urquell Beer:

pils beer

The original Pilsner. Newly

imported into South Africa.

SAB Miller has stated that

it will begin local

manufacture of this top-

selling brand.

South Africa: Sabmiller (pilsner Urquell)

Holsten Apple +: non-

alcoholic malt beverage

Sparkling non-alcoholic malt

beverage rich in fruity apple

flavor. Contains valuable

vitamins and healthy

minerals that result from

Holsten’s brewing process.

Contains supplementary

vitamins B6, B12 and D.

Holsten Apple is slightly sweet with the

rich taste and scent of apple and the pale,

golden color of a natural malt beverage.

Germany: Holsten-Brauerei AG

Clausthaler Radler

Lemon: alcohol free

lemon beer

Ultimate refreshing alcohol

free lemon flavored beer,

available in bottled and

canned form.

Germany: Clausthaler

www.clausthaler.de

Karlsberg Mixery: beer and

cola mix

Refreshing mix of beer and

cola, with key code inside the

cap, that gives free access to

Mixery’s internet services.

Innovative promotion idea.

Germany: Karlsberg

Deco:

Kronenbourg

lager with a shot

of absinthe

A small bottle of

Kronenbourg

lager with an attached shot of absinthe.

The absinthe is intended to be drunk as a

shot first, followed by the 5% strength

beer as a chaser. Sold in bars and

nightclubs. Alcohol content 2.5 units (as

opposed to 2.8 units in a pint of

Kronenbourg).

United Kingdom: Groupe Brasseries

Kronenbourg Sa

Zinniz Fresh: beer with gin

and lemon

A fresh beer mixed with gin

and lemon, now with a handy

twist cap. Contains 5%

alcohol. Ingredients are:

water, barley malt, sugars,

lemon juice (4.0%), lime

juice, citrus-, gin-, and herb flavor and

hops.

Netherlands: Grolsche Bierbrouwerijen


Beer design trends

Some beer introductionsfeatured in the WIN

database

Germany (Warsteiner) Warsteiner is launching a 0.5 liter long neck

bottle of their pilsner to correspond with the jubilee of the Warsteiner

brewery from the 5th to the 14th of September. These bottles will first be

launched in the Nordrheinwestfalen region before becoming available

throughout Germany. The brown bottles are based on the smaller 0.33

liter long neck bottles, which were introduced in February.

Consumer advertisement


Zinniz Fresh: beer with

vodka and lime

A fresh beer mixed with

vodka and lime, now with a

handy twist off cap.

Contains 5% alcohol.

Contains: water, barley malt,

sugars, lemon juice, lime

juice 0.5%, citrus -, vodka -,

and herb flavor and hops.

Netherlands: Grolsche Bierbrouwerijen

Grolsch Premium Pilsner:

pils in a new 250ml bottle

Grolsch beer in 250ml

bottles, with a twist off cap in

a fancy 12-pack box.

Ingredients are: water, barley

malt and hops.

Netherlands: Grolsche

Bierbrouwerijen

www.grolsch.nl

Amstel Bright: premium

quality beer

Thirst quenching premium

beer, brewed and bottled in

Curacao, to be drunk ice cold.

Now available in a carton

carry case. Contains 5%

alcohol. Ingredients are:

water, malted barley, sugar

and hops.

Netherlands: Amstel Brouwerij BV

www.amstelbright.com

Dommelsch

Ice: refreshing

ice beer

First ice beer

launched in the

Netherlands.

Refreshing beer

with a bitter taste. When cooled at -4

degrees, the beer creates ice crystals,

which makes the beer crystal clear and

pure. Best served ice cold from the bottle.

Contains 5% alcohol. Ingredients are:

water, barley malt, non malted grains and

hops.

Netherlands: Dommelsch

www.dommelsch.nl

Beck’s Gold: specialty

beer

German specialty beer made

with brewing water, barley,

malt and hops.

Germany: Brauerei Beck

Gmbh & Co

KLB Raspberry Wheat

Beer: raspberry flavored

beer

Wheat beer with raspberry

extract. All natural.

Canada: Kawartha Lakes

Brewing Company

www.klb.on.ca


Beer design trends

USA (Miller Brewing Co.)

Miller is promoting Miller

Genuine Draft as an ideal summer

drink with a typical poolside

summer scene depicted. Miller’s

brewing process involves MGD

being cold-filtered at a constant

32°C. What’s left is pure beer that

hasn’t had its flavor heated away.

This process gets rid of what’s not

needed and keeps what’s good,

symbolically expressed in this

advertisement.

Consumer advertisement (men’s

lifestyle magazine)

For more new products information, try the WIN database. Request guest access today.

www.win-food.com


Skol Beer: lager

Skol has been introduced to

the Brazilian market.

Ingredients are: water, malt,

grain, carbohydrates and

hops. Contains antioxidant

INS 316 and stabilizer INS

405.

Brazil: Skol – Caracu SA,

Cervejarias Reunidas (Carlsberg Brazil)

www.skol.com.br

Namakuro: Dark Happo-

shu beer

Bittersweet, dark Happo-

shu beer. Beer with a

unique bittersweet flavor.

Promoted as being

enjoyoble for any occasion. Ingredients

are: malt, hop, barley, rice, corn starch

and sugar.

Japan: Kirin Brewery Co. Ltd.

www.kirin.co.jp

33 Export Demi

Rondelle: lemon

flavored lager

Ingredients are:

beer, sugar,

glucose syrup,

lemon flavor, acid (citric acid) and

antioxidant (ascorbic acid).

France: 33 “Export”

Kriska: vodka flavored beer

Beer spiked with vodka.

Ingredients are: beer, sugar,

aromatic compounds (75%

vodka) and antioxidant

(ascorbic acid).

France: Brasserie Fischer SA

Doshisya Muginisuke

Happosyu: beer

Traditionally brewed beer

with the finest hops, pure

water and barley malt.

2.5% alcohol. Contains

malt, hop and corn.

Japan: Doshisya Co., Ltd.

Wilkenburger Der

Rote Curt: beer blend

with lime soft drink and

guarana

Beer blended with a lime

flavored soft drink and

guarana. Ingredients are:

beer (water, malt, hop),

water, carbonated water, coloring fruit

and vegetable extract, lemon juice

concentrate, natural flavoring, guarana

extract, sweetener sodium cyclamate,

aspartame, antioxidant ascorbic acid and

caffeine.

Germany: Gilde Brauerei AG

Sapporo,

Namashibori Half &

Herb: happosyu with

herbs

Happosyu (low-alcohol

beverage that looks and

tastes like beer) with

herbs. Contains half the

normal calories.

Ingredients are: malt, hop, rice, corn

starch, sugars and orange peal.

Japan: Sapporo Beer’s Beverage Co. Ltd


Beer design trends

The Netherlands (Bacardi)

Bacardi Breezer was one of the

first drinks to begin the wave of

alcopops, aiming to challenge

beer’s popularity, especially

amongst young people. Bacardi

Breezer is a Bacardi rum specially

blended with tropical fruit juices,

exotic flavors and sparkling water,

for a refreshing blend best served

chilled. This drink contains 5%

alcohol and is available in

cranberry, orange, lime,

watermelon, citrus, ruby

grapefruit, lemon, peach and

pineapple flavors. The company

has now launched its drink in a

large 70cl bottle.


www.win-food.com


Kirin, Lager Beer Blue

Label: low-calorie beer

Low calorie lager beer

made with malt, hops, rice

and cornstarch.

Japan: Kirin Brewery Co

Ltd.

Hirter Bio Bier: beer with

ingredients from biological

cultivation

Beer produced with raw

materials from controlled

biological Austrian

cultivation. “The pure

pleasure,” Hirter Bio beer is

promoted as having a

special, original and

aromatic taste.

Austria: Brauerei Hirt Gesmbh.

www.hirterbier.at

Silver Pilsner: Danish

beer

Premium Danish beer

now available on the

Italian market.

Italy: Harboes Bryggeri

Von Wunster Beer:

Dutch lager

Dutch lager now available

on the Italian market.

Italy: Heineken Italia

S.p.A.

www.heineken.it

Wieckse

Brut: sparkling

beer

Fresh and

sparkling beer,

fermented with

champagne

yeast, available

in a 4-pack. Due to its fermentation with

champagne yeast, this beer is slightly

fruity. To be drunk ice cold. Contains 5%

alcohol. Ingredients are: water, barley

malt, sugar, hop and flavors.

Netherlands: Stadsbrouwerij De Ridder

Wieckse

Lichte: light

white beer

Refreshing

light flavored

white beer,

with only 3.2%

alcohol. Contains 33% less calories than

regular Wieckse Witte beer, sweetened

with acesulfame K. Ingredients are:

water, wheat and barley malt, non malted

grain, hops, yeast, herbs, citrus peels,

flavors and sweetener acesulfame K.

Netherlands: Stadsbrouwerij De Ridder

Pelican Pub Seasonal Beer

Macpelican’s Wee Heavy Scotch

Ale: caramel flavored ale

An ale with an aroma of rich caramel,

cocoa, and toffee.

United States: Pelican Pub & Brewery


Beer design trends

USA (Pilsner Urquell USA)

Pilsner Urquell is being marketed

to the US market as a beer for the

connoisseur, promoted as being

the world’s first clear, golden beer.

This beer is imported from the

Czech Republic and according to

the company, the top ten beers in

the world are all pilsners based on

this “pilsner style.”

Consumer advertisement (men’s

lifestyle magazine)


Cab Cola & Beer

Flavored With

Dragonfruit

Cola and beer drink

flavored with dragonfruit.

Ingredients are: beer

(water, barley malt,

hops/hop extract), soft

drink with caffeine (water,

sugar, drink base (with acidifier citric

acid, caffeine, natural flavoring), carbonic

acid and natural dragonfruit flavoring).

Germany: Krombacher Brauerei

Holsten Cooler: beer

with lemon and lime

flavor

Beer with lemon and lime

flavor. Contains 50%

Holsten beer (water, malt,

hop), plus 50% soft drink

with lemon and lime

(water, sugar, carbonic acid, acidifier citric

acid, natural flavoring and natural lime

flavor).

Germany: Holsten-Brauerei AG

Sapor Merus

Clausthaler: alcohol-free

beer

Non-alcoholic beer.

Promoted as being the

leading non-alcoholic brew

in Europe. Brewed

according to the German Purity Law from

1516. Contains malt and hops.

Japan: Binding Brauerei AG

Suntory Fine Brew:

alcohol-free beer

Non-alcoholic beer.

Ingredients are: malt, hops,

scarification starch,

acidulant, antioxidant

(vitamin C).

Japan: Suntory Co Ltd.

Kilkenny Irish Beer:

refreshing red beer

A distinctive and refreshing

red beer. Premium, red beer,

brewed by Guiness in

Ireland, using only the finest

quality ingredients.

Germany: Guinness Ireland

Group – Irish Division

www.guiness.de

Clausthaler

Hefeweizen: Alcohol-

free wheat beer

Premium wheat beer with

no alcohol

Germany: Binding

Brauerei AG

www.clausthaler.de

Kirin Namakuro:

bittersweet happoshu (a

low priced Japanese beer)

A happoshu with a

bittersweet taste.

Ingredients are: malt,

hops, barley, rice, corn

starch and sugars.

Japan: Kirin Brewery Co Ltd.


Beer design trends

The Netherlands

(Dommelsch) Dutch brewer,

Dommelsch claim to have been

the first to launch an ice beer in

the Netherlands, with Dommelsch

Ice. This beer, which is meant to

be drunk ice cold from the fridge,

is being promoted for its

refreshment qualities, with a fine-

bitter taste created following a

“unique procedure.” The beer is

well cooled to -4ºcelsius, when

ice crystals begin to form. These

crystals are filtrated, producing a

crystal clear and pure beer with a

balanced taste. These beers are

now available in an easy-to-carry

six-pack and boxes containing

twelve long-neck bottles.


For more new products information,

try the WIN database. Request guest access today.

www.win-food.com


Schwatz!

Black Lager &

Cola: lager and

cola drink

Black lager beer

with a cola flavor

and guarana.

Germany: Tivoli brands & drinks GmbH

Asahi Minorizanmai:

mild lager

Lager beer with a smooth

and mild taste. Ingredients

are: Malt, hop, rice, sugar.

Japan: Asahi Breweries

Ltd.

Suntory Momo Gre:

grapefruit flavored beer

Grapefruit flavored beer.

Ingredients are: flavor,

acidulant, antioxidant and

carbon-dioxide.

Japan: Suntory Co Ltd.

Guinness: stout

Traditionally brewed dark

beer, now available in South

Korea.

South Korea: Guinness

UDV

www.guinness.com

Beck’s: non alcoholic

malt beverage

Non alcoholic malt

beverage. Made with

water, barley malt,

natural carbon dioxide,

malt and lupulo (beer

hops).

India: Brauerei Beck & Co

Sokol Ice Beer: premium

beer

Claimed to be the number

one beer in Russia.

Ingredients are: water, barley

malt, sugar and hops.

Russia: OAO Amstar

Birra friulana

La Rossa: red

beer

Double malted

beer with an

alcohol content

of 7.2%. Packs

comprise of three glass bottles wrapped

with a carton wrapper. Double malt

flavor.

Italy: Dedos Srl – Conad Margherita

www.moretti.it


Beer design trends

UK (Smirnoff) Following the

trend of extending bottled drinks

to a slick can size, Smirnoff has

launched its Ice and Black Ice

alcopop in silver 300ml cans.

Smirnoff ice is a blend of pure

Smirnoff Red vodka with a lemon

taste, while the extension,

Smirnoff Black Ice is a citrus

blended drink containing triple

distilled Smirnoff Vodka. Both

drinks contain 5% alcohol.

Trade advertisement

www.win-food.com


Monteiths

Kristall-

Weizen Spicy

Cloved Beer:

cloved beer

A spicy beer that

is said to re-

create the crystal-clear wheat beer of

Germany, boasting golden colors and

spicy, citrus and clove notes. Available in

6 packs. Made using hallertau hops.

Limited edition.

New Zealand: Monteith’s Brewing

Company

www.monteiths.co.nz

Gold Lager: lager beer

Lager with a 4.7%

alcohol content. Contains

ascorbic acid and no

preservatives.

Poland: Browar

Polnocny-Suwalki

Efes Pilsener Beer:

double malted beer

Double malted beer with a

5% alcohol content.

[Imported to Italy by

BIMAR, Empoli].

Ingredients are: water, malt,

rice and hops.

Italy: Efes Beverage Group

www.efespilsener.com

Holsten Cooler: mix of

beer and lemonade

Refreshing sparkling mix of

beer and lemonade, with a

2.5% alcohol content. Now

available in an unbreakable

0.5 liter PET bottle.

Germany: Holsten-brauerei

Ag

Fischer Beer Alsace:

Specialty beer

Specialty French beer

with a 6.0% alcohol

volume.

Italy: Brasserie Fischer

SA

Bavaria 8 – 6: imported

beer

Beer produced in Holland.

To be stored in a dark place

and served chilled. Alcohol

content: 8.6%.

Italy: Bavaria NV

www.bavaria.nl

Stout: black beer (stout)

Deep and rich in texture

and flavor.

South Korea: Hite

Brewery Co.

www.hite.com


Beer design trends

UK (Budweiser) Budweiser is

focusing its latest UK advertising

campaign on the theme of sport,

the main focus for most beer

companies. The King of Sport

campaign ties up with last year’s

King of Beers theme. This

campaign offers consumers the

chance to win the top prize of 10

trips to key US sporting events,

with 100 pairs of tickets to

English Premiership football

matches also being offered. A

similar competition is planned for

November.

Trade advertisement


Sapporo Senretsu

Happo: happoshu beer

for every occasion

Extra powerful draft

happoshu. Promoted

with the phrase, “every

occasion is a special

occasion with this zest-

packed happo-shu brewed by friends for

friends. Contains 4.5% alcohol.


Kirin Tanrei Alpha:

happoshu beer

Kirin’s technology creates

happo-shu with 90% less

purine. Ingredients are:

malt, hop, barley, rice,

corn , starch, sugars,

flavor, acidulant and color (caramel).

Japan: Kirin Brewery Co Ltd.

Suntory Jun-nama:

draft beer

Draft beer. A “unique,”

charcoal-filtered draft

beer brewed from fine

barley and ingredients.

Contains: malt, hop,

barley and

saccharification starch.

Japan: Suntory Beer Corp

Kirin, Shirokirin: lager

beer

Lager with a mild and

refreshing taste. Contains:

malt, hop, barley, rice,

corn, starch and sugars.

Japan: Kirin Brewery Co

Ltd.

Hite Prime: Premium

beer

Premium beer with the rich

taste of 100% all malt beer.

South Korea: Hite Brewery

Co.

www.hite.com

Doctor Diesel Draft:

lager beer

Pasteurized draft lager beer.

Contains: water, barley

malt, barm (godisgood,

yeast) and hops.

Russia: Pivovarni Ivana

Taranova (Ivan Taranov’s

Breweries)

Sibirskaya Legenda:

Light beer

Pasteurized premium

quality light beer. Made

with water, barley malt and

hops.

Russia: Pikra

www.pikra.com

Salitos Tequila: beer and

tequila mix

A classic bottom fermented

lager balanced with a shot of

the tequila and the fruity taste

of of South American limes.

Crown opener in the bottom

of each bottle to open the

twist-off crown cap of the next

Salitos bottle.Contains 5.9% alcohol.

Ingredients are: water, hop, malt, maize,

glucosesyrup, carbonated water, natural

flavors, tequila, citric acid and ascorbic

acid.

Netherlands: Salitos Beverages Overseas

Bibop Schwarzbier Mit

Cola & Guarana

Dark beer with cola and

guarana. Contains:

Köstritzer dark beer ( water,

malt, hop, hop extract), cola

soft drink with caffeine,

(water, sugar, carbonated

water, coloring E 150c,

acidifier agent E 338, guarana extract,

antioxidant ascorbid acid, caffeine,

flavoring).

Germany: Köstritzer Schwarzbierbrauerei

www.bibop.de

OB Beer: beer

Beer from an oriental

brewery.

South Korea: Ob Beer Co.

www.beer.co.kr

Saranac Hefeweizen Beer: traditional

ale

Saranac Hefeweizen is a traditional

German wheat ale, which is crisp, light,

and refreshing. Limited edition available

between May and July. Originally released

as a limited edition as part of the

company’s 12 Beers holiday package in

2002, but back for a second run due to

“positive response.” Hefeweizens are

highly carbonated and when poured,

these beers should appear cloudy – this

cloudiness is from the yeast and the

higher proteins contained in the wheat

malt. Saranac Hefeweizen remains

unfiltered to preserve its natural smooth

flavor and aroma. The color is a pale gold

to amber shade, with a thick, creamy

crown. Saranac Hefeweizen is also low in

calories, promoted as being ideal for

summertime activities.

United States: The Matt Brewing

Company

www.saranac.com

Karamalz Fresh Lemon:

alcohol free lemon beer

Refreshing alcohol free beer

with a lemon nut flavor. Said

to give energy for body and

mind.

Germany: Eichbaum-

Brauereien Ag

www.karamalz.de

Caimman: caipirinha flavoured beer

drink

Refreshing flavored beer drink containing

beer and caipirinha flavored soft drnk.

Contains 5.5 % alcohol. Ingredients are:

73% beer (water, barley, malt, hops), and

27% soft drink (water, sugar, carbonic

acid, natural cachaca rum flavoring,

natural lime flavoring, citric acid and

antioxidant: ascorbic acid).

Germany: Caiman Beer Gmbh

www.caimanbeer.de


Beer design trends

The Netherlands (Albert Heijn) Dutch supermarket giant, Albert

Heijn has launched its own label brand of premium pilsner. This beer is

claimed to be lighter and “blonder” in taste. The bitter taste of traditional

beer has been cut back somewhat to make way for a light sweet

aftertaste. Albert Heijn is promoting its beer as an ideal drink to be

consumed in the garden during the summer.


For more new products

information,

try the WIN database.

Request guest access today.

www.win-food.com


Bacon and Ham

Maverick

Crispy

Mini Ball:

pork snack

Cheese flavored. Ingredients are: pork,

water, sugar, starch, salt, seasonings,

phosphate and sodium nitrite.

China: Asia Pacific Guangdong Co., Ltd.

Baby Cereals and Biscuits

Weiquan Fruit

Juice: juice for

babies

Vegetable wheat

powder for children

above 6 months.

With added

skimmed milk powder, concentrated

juice, spinach and carrot. Wheat powder

contains rich fiber, and is enriched with

Ca, Fe, Zn and vitamin D3.

China: Beijing Weiquan Food Co., Ltd.

Heinz

Nutritional

Biscuits: baby

biscuits

Provides 15

vitamins and

minerals. Enriched with DHA and

oligosaccharide. Orange flavored.

Ingredients are: wheat flour, sugar, palm

oil, orange concentrate, calcium

carbonate, fructo-oligosaccharide,

monoglyceride, DHA, B-carotene, VA,

VB1, VB2, niacin, pantothenic acid,

potassium iodide, folic acid, reduced iron,

calcium phosphate, VB6, VB12, VD and

zinc.

China: Heinz Union Co., Ltd.

www.heinz.com.cn

Bread

Kroger Super Kids

Hero Bread: enriched

sandwich bread with crust

Super kids bread has 50%

more of the daily value for

calcium than enriched

white sandwich bread and

is a low fat food. This bread

is being promoted for its taste as well as

for its nutritional content. Ingredients

are: enriched flour (niacin, reduced iron,

thiamin mononitrate, riboflavin, folic

acid), water, high fructose corn syrup,

contains 2% or less of nonfat milk, yeast,

salt, calcium sulfate, soybean oil, cultured

whey, soy flour, mono- and diglycerides,

monocalcium phosphate, dough

conditioners (sodium steroyl lactylate,

ammonium sulfate, calcium sulfate,

calcium peroxide and/or ascorbic acid

and protease).

United States: The Kroger Company

www.kroger.com

Arnold Healthy

Multi-grain Bread:

multi-grain bread

Multi-grain bread made

with cornmeal, oats,

and brown rice and

sweetened with brown

sugar. Arnold Healthy Multi-grain Bread

is said to combine the wholesome

goodness of cornmeal, oats and brown

rice, with the sweet taste of brown sugar.

Not only a good source of fiber and

calcium, Healthy Multi-grain Bread’s soft,

full sized slices are also ideal for great

tasting sandwiches, too. This flavorful

bread is being promoted as an ideal way

to get the benefits of bread according to

the USDA Food Guide Pyramid.

United States: Arnold Foods Co Inc.

www.gwbakeries.com

Kangaroo Salad

Pockets: sliced bread

alternative

6 white pre-opened

pockets for a salad

sandwich. The first

pita pocket to be packaged pre-opened,

using Kangaroo’s patent pending process,

allowing the consumer to easily fill the

pocket without tearing. Salad Pockets are

softer than traditional pitta and easy to

fill. Ingredients are: unbleached white

flour, water, yeast, vegetable shortening,

sugar, salt, calcium propionate, citric

acid, mono and diglycerides, guar gum,

cellulose gum, calcium sulfate, L-cysteine

enzymes and citric acid.

United States: Kangaroo Brands, Inc.

www.kangaroobrands.com

Smucker’s

Uncrustables

Cheese

Sandwiches:

pre-toasted

sandwiches

4 pre-toasted microwaveable grilled

cheese sandwiches made with

pasteurized process cheese spread.

Promoted as being the perfect “grab-and-

go” sandwich for families on the move.

Simply keep them in the freezer, then

pack them in your lunch in the morning.

By lunchtime, they are thawed and ready

to eat.

United States: The Jm Smucker Co.

www.smuckers.com


Products

Worldwide new product paradeA selection of new introductions selected by our editors and

presented in Innova’s WIN (Worldwide Innovations Network)

database. To request access, visit: www.win-food.com

USA (Hershey Foods) Hershey Foods recently introduced its first ever

sugar free line in Chocolate Candy, Peanut Butter Cup Miniatures, Dark

Chocolate and Chocolate Candy with Almonds varieties. The company’s

advertising campaign is focused on convincing the consumer that its sugar

free chocolate candy has the same taste as the sugar varieties of Hershey’s

chocolate. Their sugar free brands are sweetened with lactitol, which is

slowly metabolized and causes only a slight rise in blood sugar levels.

These brands represent about half the effective carbohydrates compared to

regular Hershey’s chocolate.

Consumer advertisement (health magazine)

www.win-food.com


Sara Lee Center

Split Deli Rolls:

deli rolls

Premium split deli

rolls. Made with

potato flour, these

Center Split Deli Rolls are softer and

baked in batches for exceptional

freshness. Ingredients are: enriched flour,

water, high fructose corn syrup, yeast,

potato flour, soybean oil, contains 2% or

less of each of the following: wheat

gluten, corn flour, salt, yeast nutrients,

cornstarch, turmeric and paprika (color),

natural flavor, dough conditioners,

calcium propionate added to retard

spoilage.

United States: The Sara Lee Bakery

Group, Inc.

www.saralee.com

Sara Lee Classic

White Bakery

Buns: classic bakery

buns

Classic white bakery

buns with added

buttermilk for flavor. Ingredients are:

enriched flour, water, high fructose corn

syrup, soybean oil, yeast, contains 2% or

less of each of the following: salt, wheat

gluten, buttermilk, corn flour, yeast

nutrients, cornstarch, turmeric and

paprika (color), natural flavor, dough

conditioners, calcium propionate added

to retard spoilage.

United States: The Sara Lee Bakery

Group, Inc.

www.saralee.com

Breakfast Cereals

Fitness & fruits:

breakfast cereal

A low fat, healthy

breakfast cereal with

crisp whole-wheat

flakes, sultanas,

pineapple, papaya, coconut, cranberries,

apple. Low in fat and high in vitamins

and minerals. Contains: cereals (28%

wholemeal wheat, rice) hardened fruits

27% (raisins, sultanas, pineapples,

papayas, coconuts, cranberries, apples

and antioxidant (sulphur dioxide)), sugar,

brown invert sugar syrup, malt extract,

vitamins and minerals (calcium

carbonate, niacine, ferrum, vitamin E,

pantothen acid, vitamin B6, B2, B1, folic

acid and vitamin B12), salt, glucose syrup,

acidity agent sodium phosphate and

antioxidant E306.

Germany: Cereal Partners Deutschland

Gmbh & Co. Ohg

www.nestle.de

Kashi Good

FriendsT Cinna:

raisin crunch cereal

Good FriendsT Cinna-

Raisin Crunch is made

from raisins, crunchy

fiber blossoms, light &

crispy flakes, and granola with a taste of

cinnamon. Made from a blend of seven

whole grains and sesameT, delivering 10

grams of wholesome fiber, almost a third

of the consumer’s daily needs. Contains:

wheat bran, yellow corn meal, evaporated

cane juice, kashi seven whole grains &

sesame flour, raisins, corn bran, oat fiber,

whole grain oats, whole grain wheat,

brown rice syrup, glycerin, crisped rice,

yellow corn flour, evaporated cane juice

syrup, textured soy protein concentrate,

salt, natural flavors, expeller pressed

canola oil, waxy maize starch, cinnamon,

annatto, honey and mixed tocopherols

(natural vitamin E).

United States: Kashi Company

www.kashi.com

Cakes and Pastries

Peijnenburg

koffiekoek

amaretto: amaretto

coffee biscuits

Ingredients are: glucose

syrup, rey flour, sugar,

almonds (6%), marzipan, candy syrup,

spices, raising agent, amaretto, cherry

concentrate and aroma.

Netherlands: Koninklijke Peijnenburg

Koopmans Brownie

Mix: baking mixture

Baking mixture for

chocolate brownies.

Ingredients are: sugar,

cocoa powder, wheat

flour, salt, raising

agent, E450a E500, vanilla flavor and

cream flavor.

Netherlands: Koopmans

www.koopmans.nl

Panrico 6 Muffins

with Lemon Flavor:

muffins

Lemon flavored

muffins. Ingredients

are: wheat flour, sugar,

vegetable oil, egg,

water, emulgent, baking powder, glucose

syrup, calcium propionate, lemon flavor

and tartrazine.

China: Beijing Panrico Food Processing

Center

www.panrico.com.cn

Alliance Almond

Biscotti Dipped in

Mocca Chocolate:

Italian cookies

Cookies originally from

Italy. Ingredients are:

wheat flour, sugar,

mocha chocolate, egg, almond, margarine

and raising powder.

China: Yantai Alliance Food Co., Ltd.

Wieger

Ketellapper

Snelle Jelle:

chocolate cake

with raisins and iron

Contains: glucose syrup, rey flour, raisins

10%, chocolate drops 7%, cacao powder

3%, rising agent (baking soda,

zuurnatriumpyrofosfaat,), aroma and

iron.

Netherlands: Wieger Ketellapper

www.wieger-ketellapper.nl

Canned Soup

Wolfgang Puck’s

Classic Chicken

With Broccoli

Heart Soup:

canned soup

Classic chicken with

broccoli heart soup

made with real chicken stock, pieces of

broccoli, sliced onions, chunks of tender

chicken, carrots and real creme.

Ingredients are: chicken stock, broccoli,

cooked chicken meat, carrots, onions,

heavy cream, enriched bleached flour and

chicken fat. Contains 2% or less of the

following: cream flavor, modified food

starch, salt, spice, beta carotene and


Products

USA (Dannon) Dannon’s new Light ‘n Fit Smoothies are being promoted

as ideal light snacks for on the move. The dairy drinks are being marketed

as the lightest smoothies ever containing a mere 80 calories in a 207 ml

bottle. They are available in Mixed Berry, Peach Passion Fruit, Strawberry

Banana and Tropical flavors. These smoothies are sweetened with Splenda

sweetener and contain 0% fat and 0% carbohydrates. They come in single

bottles or in packs of four.



garlic powder.

United States: Wolfgang Puck Food

Company

www.wolfgangpucksoup.com

Carbonates

Real Soda Bennett’s Hot

Cola: hot cola beverage

Cola with habanero pepper.

Ingredients are: water, high

fructose corn syrup, cola

extract, sodium benzoate and

habanero chili extract.

United States: B. Scott Bennett,

Inc./distributed by Real Soda

Mercury Brewing

Atomic Grape Soda:

carbonated soda

Atomic grape is a high

quality grape soda made with

real sugar. Ingredients are:

carbonated water, sugar,

natural and artificial flavor,

citric acid and sodium benzoate

(preservative).

United States: Mercury Brewing

Company

www.mercurybrewing.com

Sumol Orange: orange

juice beverage

Slightly sparkling orange

juice beverage. Made

with: carbonated water,

sugar, glucose syrup,

orange pulp and puree, citric acid, orange

fragrance and ascorbic acid.

Portugal: Sumol

Mountain Dew

Live Wire

Orange Ignited:

orange drink

Limited edition,

only available in summer 2003. Naturally

and artificially flavored. Ingredients are:

carbonated water, high fructose corn

syrup and/or sugar, orange juice from

concentrate, natural and artificial flavor,

citric acid, sodium benzoate (preserves

freshness), caffeine, sodium citrate,

yellow 6, ascorbic acid (preserves

freshness), calcium disodium EDTA (to

protect flavor), yellow 5, gum arabic,

brominated vegetable oil and red 40.

United States: Pepsico Inc.

Tropical Sprite

Remix: tropical

flavored soft drink

No caffeine Sprite

with tropical

flavors. Very low in sodium. Ingredients

are: carbonated water, high fructose corn

syrup and/or sucrose, natural flavors,

citric acid, sodium citrate and sodium

benzoate (to protect taste).

United States: The Coca-Cola Company

Fanta Greenz: fruit flavored

carbonated drink

Refreshing drink with fruits

and ginseng extracts.

Ingredients are: sparkling

water, sugar, apple juice (3%),

melon juice (0.5%), lime juice

(0.5%), acid (citric acid), flavors (ginseng

extracts), conservative (sodium benzoate),

stabilizers (E1450, E444, E445) and

colorings (E104, E142).

France: Coca-cola

www.coca-cola.fr


Products

USA (The Coca Cola

Company) Minute Maid has

joined in on the trend of offering

healthy orange juices. Their latest

addition offers the benefits of

vitamin D as well as added

calcium. This new variant of their

original premium 100% pure

squeezed orange juice, is being

promoted as helping your body

absorb more calcium due to its

vitamin D content. Coca Cola are

marketing the product for taste as

well as for health benefits.

Consumer advertisement (health

magazine)


Cat Food

Whiskas

Assiettes

Gourmandes:

meaty cat food

Meat and

vegetable jelly mix. Chicken, turkey and

duck flavor. Contains: meat and animal

sub-products, mineral substances,

vegetable proteins extracts, sugar,

vegetable sub-products, colorings (CEE

additives), vitamin E, B1 and cupper.

France: Masterfoods

Friskies

Felix Duo:

cat food

with meat

and fish

Cat food containing chicken and turkey,

cod and prawn, bullock and lamb, with

vegetable gelly and smooth mouthfuls.

Nutritional meal with vitamins.

Ingredients are: meat and animal sub-

products, fish and fish sub-products,

molluscs and shellfishes (4% of prawn in

the smooth), mineral substances and

sugars, colored with additives.

France: Friskies

Cereal Bars

Quaker Chewy

Yogurt Granola

Bars: yogurt bars

Vanilla flavored

chewy yogurt

granola bars made

with whole grain quaker oats. Source of

calcium. Ingredients are: granola, yogurt

coating, glucose, fructose-glucose, crisp

rice, brown sugar, glucose solids,

glycerin, hydrogenated vegetable oil

shortening, corn flakes, oat flour, rice

flour, sorbitol, natural and artificial

flavors, sugar, salt, soy lecithin, modified

food starch, malt, vegetable oil, sodium

bicarbonate, BHT, citric acid, water and

sulphites.

Canada: Qtg Canada Inc

Schwartau

fruity: red fruit

cereal bars

4 cereal bars with

red fruits (cherry

and cranberry) and cereals. With dextrose

and enriched with vitamin C. Also

launched in orange and apple variants.

Ingredients are: fruit mixture 17%

(hydrogenated cranberries and apples),

sweetener out of apple extract, extrudat

(wheat, rice, corn), glucose syrup,

oligofructose, dextrose 8%, roasted cereal

flakes 8% (oats, wheat), vegetable oil,

concentrated fruit juice 5% (cranberry,

cherry), honey, roasted hacked almonds,

wafer, maltodextrin, lemon fiber,

stabilizer glycerin, vitanin C, flavor and

antioxidant (ascorbic acid).

Germany: Schwartau

Kellogg’s

Nutri-Grain

Minis with

Yogurt Icing

Blueberry:

cereal bar

Bite Size Cereal Bars with yogurt icing.

With natural and artificial flavors. Low fat

and an excellent source of calcium.

Ingredients are: filling (high fructose

corn syrup, blueberry preserves (high

fructose corn syrup, blueberries), corn

syrup, fructose, glycerin, sugar, water,

modified tapioca starch, modified corn

starch, pear puree concentrate, sodium

citrate, apple puree concentrate, natural

and artificial blueberry flavor, cellulose,

corn starch, modified cellulose, citric

acid, calcium phosphate, sodium

alginate, xenthan gum, malic acid, red

‘40, blue ‘1), enriched wheat flour, sugar,

partially hydrogenated soybean and/or

cottonseed oil, whole grains oats, high

fructose corn syrup, honey calcium

carbonate, nonfat yogurt powder (heat-

treated after culturing), dextrose, nonfat

dry milk, salt cellulose, potassium

bicarbonate (leavening), soy lecithin,

natural and articficial flavor, wheat

gluten, corn starch, gelatin carrageenan,

vitamin A palmitate, guar gum,

niacinamide, zinc oxide, reduced iron,

pyridoxine hydrochloride (vitamin B),

thiamin hydrochloride (vitamin B1),

riboflavin (vitamin B2) and folic acid.

United States: Kellogg USA Inc.

www.kelloggs.com

Chilled Bakery Products

Nestlé Tollhouse

Ultimates

Chocolate Chip

Lovers Cookies:

chilled cookies

Cookies made with

semi-sweet and milk chocolate chips and

chocolate chunks. Ultimate bake cookie

dough before consuming.

United States: Nestlé Usa, Inc.

Chilled Desserts

Nestlé

Sveltesse

Mousse au

chocolat au

lait: dessert

mousse

Milk chocolate dessert mousse. Contains:

skimmed milk (73.4%), sugar, glucose

syrup, milk chocolate (2.6%), cocoa

(2.6%), chocolate powder (2%), starch,

dried skimmed milk, gelatin, emulsifier :

E472b, gelifier : E407, flavors, acididy

corrector : E524 and soy lecithin.

France: Nestlé

www.nestle.fr

Nestlé La Mousse

Au Lait

Concentre Sucre:

mousse dessert

Mousse dessert

made from sweet

concentrated milk. Contains less than 6%

fat. Ingredients are: whole milk (64%),

Nestlé sweet concentrated milk (32.5%),

modified starch, gelatin, emulsifier

(E472b), stabiliser (E339, E452), acid E331

France: Nestlé

www.nestle.fr

Chilled Meat Products

Tyson Deli Style

Honey Roasted

Chicken Breast:

chicken breast slices

Tender, deli style

slices of all white

meat chicken. Premium quality, perfectly

seasoned and ready to eat. 98% fat free.

United States: Tyson Foods, Inc.

www.tyson.com


Products

USA (KF Holdings) Kraft Foods are promoting their new Post Select’s

Maple Pecan Crunch cereal as the only ready-to-eat cereal in the grocery

aisle that is made with real maple syrup. This cereal contains 12 essential

vitamins and minerals and is high in folic acid. The breakfast cereal is a

combination of crispy, multi-grain flakes and also features crunchy oat

clusters and praline-coated pecans.

Consumer advertisement (lifestyle magazine)


Hillshire

Farms Deli

Select: turkey

breast

Ultra thin oven

roasted turkey breast packaged in

reusable Gladware containers. 99% fat

free. Contains: turkey breast, water, 2% of

less of modified food starch, salt,

potassium lactate, dextrose, carrageenan,

sodium phosphate, turkey flavor (malto-

dextrin, salt, flavor) and sodium diacetate.

United States: Hillshire Farm

Chilled Meat Substitutes

Toki Eco: vegetable

sausage

Organic vegetable sausage

with green pepper.

Ingredients are: tofu, egg

white, palm oil, natural

flavor, wheat flour, parsley, green pepper,

soya sauce, water and sea salt.

Spain: Corporacio Alimentaria Satoki

Chilled Pizza

Sodebo Les

Fournées D’antan:

pizza

Ham, mushroom and

cheese pizza. Rich in

proteins and calcium. Ingredients are:

dough (41%): wheat flour, water, milk,

yeast, honey, salt, wheat germ, wheat

semolina, palm oil Filling (59%): tomato,

emmental (25.5%), ham, carragheenan,

mushrooms (13.5%), baked pork

shoulder, olive oil, olive, basil, garlic, salt

and oregano.

France: Sodebo

www.sodebo.fr

Marie Tarte

Aubergines

Grillées Et

Fromage De

Brebis: savoury pie

Savoury pie topped

with cheese and vegetables. Ingredients

are: dough (39%): wheat flour, margarine

water, salt, cystein topping (61%) :

skimmed milk, courgette (13.5%),

aubergine (10.5 %), red pepper (9%),

fresh cream, whole egg, onion, tomato

(5.4 %), ewe cheese, melted cheese

(melting salts: E450, E339, E331, E330),

olive oil (2.5 %), water, concentrated

tomato, garlic, salt, basil and flavors.

France: Général Traiteur

Chilled Sauces and Dips

Athenos

Mediterranean

Spreads

Hummus: dip

Artichoke and

garlic flavored hummus. Made with pure

olive oil. Ideal for on pitta. Ingredients

are: chickpeas, artichoke, water, olive oil,

tahini (sesame), lemon juice concentrate,

garlic, salt, contains less than 0.5%of

sorbic acid and sodium benzoate as

preservatives, parsley, natural flavors,

phosphoric acid and spice.

United States: Churny Company, Inc.

Chocolate

Kraft Baker’s

Real Dark

Semi Sweet

Dipping

Chocolate:

dipping chocolate

Real dark semi-sweet chocolate dipping

sauce in a microwaveable bowl, making it

ideal for dipping fruits, pretzels and lots

of other treats. Ingredients are: semi-

sweet chocolate (sugar, chocolate, cocoa

butter, soy lecithin (emulsifier), vanilla

extract, salt and milk solids).

United States: Kraft Foods North

America, Inc.

www.kraftfoods.com

Hershey’s Fudge

Cookie Crunch Shell

Topping: chocolate

topping

Chocolate with dark

chocolate cookie bits.

Freezes in seconds.

Contains: sugar, partially hydrogenated

soybean oil, coconut oil, cocoa processed

with alkali, enriched flour, vegetable oil,

whey, chocolate, soya lecithin, high

fructose corn syrup, salt, corn flour,

sodium bicarbonate, and artificial

flavorings.

United States: Hershey Foods Corportion

www.hersheys.com

Ritter Sport

Active

Guarana

crunch:

chocolate bar

Filled chocolate

with guarana creme and rice flakes.

Caffeine content is equal to two cups of

espresso. Ingredients are: sugar, cocoa

mass, hardened vegetable oil, glucose,

cocoa butter, cream powder, hazelnut

mass, skimmed milk powder, lactose,

rice, guarana extract, emulsifier

soyalecithine, salt, malt, flavor and

vanillin.

Germany: Alfred Ritter Gmbh & Co. Kg

Milka Sommer

Pralines Kirsch

Joghurt: cherry

yogurt pralines

Pralines of white

chocolate filled

with skimmed milk yogurt filling.

Ingredients are: sugar, cocoa butter,

vegetable fat, skimmed milk powder,

lactose, sweet whey powder, skimmed

milk yogurt powder (3%), butterfat,

emulsifier (soya lecithine), preparation

with cherry powder (0,3%)

(maltodextrrin, cherry, natural flavor),

acidifier (citric acid) and flavor.

Germany: Kraft Foods Strasbourg

Condiment Sauces

Ian Tomate Frito: fried

tomato with peppers

Mild flavored fried

tomatos with Piquillo

peppers. Ingredients are:

fried tomato, vegetables,

sunflower oil, salt and sugar, piquillo

peppers 25% and benzoic sodium.

Spain: Ind. Alim. De Navarra, S.a.


Products

USA (Nestlé) Nestlé has extended its range of Nestea Iced Tea Liquid

Concentrates, with the launch of an unsweetened variety, said to have a

“fresh-brewed tea taste without the hassle of tea bags.” These ice teas

simply require the addition of water and ice. Other varieties are Lemon

Tea, said to be refreshing and light with a touch of lemon, Raspberry Tea,

promoted as having a sweet and zesty flavor for fruit lovers and Green Tea

with Honey, which is said to be “simple and soothing with natural

antioxidants.” These concentrates are available in 16 oz. bottles, are easy

to measure and pour and can be served ice cold or steaming hot.



Apis: Tomato paste

Tomato paste with onions,

made from natural

tomatoes. Ingredients are:

natural tomato, onion

(17%) salt and citric acid.

Spain: United Biscuits Iberia, S.l.

Cooking Fats and Oils

Fruit d’or: cooking liquid fat

Based vegetable oil liquid fat.

Rich in linolenic acid.

Contains: hydrogenated

vegetable oil (82%), water, salt

(1.5%), emulsifier (lecithin),

flavor, acid (citric acid),

coloring (carotene) and vitamin E.

France: Unilever Bestfoods France

Cream

Primevère

Semi épaisse:

half thickened

cream

Dietetic

preparation

made from vegetable oils with vitamin E.

Contains: reconstituted skimmed milk,

water, non-hydrogenated vegetable oils

(14.2% – rapeseed, oleic sunflower, wheat

germ), thickeners (malto-dextrin, E460-

E466, xanthan, carrageenans),

emulsifiers (sugar-ester, lactic ester of

mono- and diglycerides of fatty acids),

hydrolysed caseinates, flavors, lactose,

vitamin E (extract rich in tocopherols)

and coloring (beta-carotene).

France: Primevère

www.primevere.com

Stop & Shop Half &

Half: cream

Ultra pasteurized half &

half cream. Promoted with

the phrase, “add some to

your coffee and enjoy the

farm-fresh difference.”

Ingredients are: milk, cream, contains

less than 1% of each of the following:

disodium phosphate, sodium citrate

United States: Stop & Shop Brands, Inc.

Dairy and Soy Drinks

Sunshine Millet Milk:

sweet drink

Ingredients are: pure water,

millet, milk, sugar and honey.

China: Liaoning Sunshine

Food Co., Ltd.

Fristi fresh & fruity: dairy

drink

Fristi fresh & fruity yogurt

drink.Made with: skimmed

yogurt, sugar, fruit juice 5%

(white grape, orange,

passionfruit, mango), aroma,

B-carotene, vitamin A and E.

Netherlands: Fristi/ Riedel Drinks


Products

USA (Quaker) Quaker has

introduced Quakes Corn Rings,

promoted as “the new snack that

won’t weigh you down.” These

crunchy snacks are baked not fried

and can therefore be eaten “to

you or your family’s heart’s

content.” These bite sized rings

have been launched in Cheddar

Cheese, Nacho Cheese and BBQ

flavors and are said to be perfect

for school lunches, TV time,

parties or anytime.


(parenting magazine)


Coke Swerve Blooo

Drink: milk drink

Swerve Blooo is the berry

flavored variety of this

product. Like the other

flavors it uses a mixture of

sugar and sucralose

sweeteners, resulting in a lower calorie

count.

United States: Delaware Punch

Company

Coke Swerve

Chocolate Drink:

chocolate drink

Swerve chocolate is a

cocoa flavored drink that

has a high milk content

and is nutritionally

balanced. Swerve is Coke’s entry into the

flavored milk drink category. Formerly

known as “Slap,” this line of products

came about after many months of R&D

and test marketing and is now ready for a

national push. Feature a high skimmed

milk content (55%), the company is

bidding to have the three flavors of

Swerve gain entry into school systems

across the US. Also launched in Vanana

flavor (vanilla/banana).

United States: Delaware Punch

Company

Toki Eco: soy drink

Organic soy drink.

Contains: water, soy,

wheat syrup and sea salt.

Spain: Corporacio

Alimentaria Satoki

Dessert

Mondamin Milk

Mousse: mousse

dessert

Milk mousse dessert.

Contains: sugar, 20%

less fat cocoa,

hardened vegetable

fat, 8% chocolate, lactose, gelatine, milk

protein, modified starch, emulsifier,

thickener: xanthan, sodiumalginat and

salt.

Germany: Unilever Bestfoods

Deutschland Gmbh

Dips

Hellmann’s Squeeze

Out: dipping sauce

Promoted as being “the

best rockin’ ranch dippin’

sauce.” Ingredients are:

water, soybean oil, egg

yolks, modified corn

starch, salt, vinegar, sugar,

onion and garlic powder, phosphoric acid,

monosodium glutamate, lemon juice,

xanthan gum, autolyzed yeast extract,

color added, propylene glycol alginate,

natural flavors, potassium sorbate,

sodium benzoate and calcium disodium

EDTA used to protect quality, spices,

dried parsley, disodium inosinate and

disodium guanylate.

United States: Unilever Bestfoods North

America

www.hellmans.com

Dough Products

Pillsbury Home

Baked Classics

Dinner Rolls:

dinner rolls

12 quick butterflake

dinner rolls. Frozen

or refrigerated, Pillsbury Dinner Rolls

can warm up any meal. Convenient

packaging of Home Baked Classics lets

the consumer bake as many servings as

they like, straight from freezer to oven to

table in minutes. Ingredients are:

bleached enriched flour, water, partially

hydrogenated vegetable oil, sugar, baking

powder, dextrose, vital wheat gluten, salt,

sodium caseinate, datem, wheat protein

isolate, artificial flavor, colored with

yellow 5 and red 40, artificial color.

United States: General Mills Inc.

I-Mei Puff: chocolate

puffs

Chocolate filled puffs.

Ingredients are: flour,

egg, sugar, vegetable oil

(hydrogenated palm oil,

coconut oil), milk powder, cocoa mass,

lecithin, vanilline and chocolate flavor.

Taiwan: I-mei Foods Co., Ltd.

Dried Soup

Fantastic Big

Soup Noodle

Bowls

Vegetarian

Chicken Noodle

Soup: noodle soup

Low fat soup made from broth, lots of

noodles and soy protein using all natural

ingredients. Brimming with noodles and

flavor. Ingredients are: pasta, dehydrated

vegetables (onions, garlic, celery and

carrots), textured soy protein, sea salt,

yeast extract, spices, evaporated cane

juice, guar gum, olive oil, natural flavor

(vegetarian), turmeric, xanthan gum and

citric acid.

United States: Fantastic Foods

www.fantasticfoods.com

Dry Cooking Sauces

Maggi

Meisterclasse:

instant

napolitana

tomato sauce

Instant tomato

pasta sauce.

Ingredients are: tomato powder 47.3%,

sugar, modified starch, onions, tomatoes

7%, iodiated salt, flavor enhancer,

hardened vegetable oil, flavor (with soya,

wheat), spices, herbs, acididfier citric

acid. Also in the range are an instant

cheese sauce and an instant tomato sauce

alla panna.

Germany: Maggi Gmbh

www.maggi.de

Dry Pasta

Catelli Healthy Harvest Spaghetti:

dried spaghetti

Multigrain dried spaghetti, made with the

goodness of five grains. Promoted for its

high source of fiber, taste and the fact


Products

USA (Dannon) Dannon has launched a mild, rich and creamy yogurt

mousse, said to deliver the sensuous indulgence of their la Crème yogurt

in a mousse. Like their yogurt this mousse is being promoted as mild not

tart with a touch of cream. These desserts are available in Strawberry,

French Vanilla and Orange Cream flavors, all packaged in twin packs

containing two 73.71g tubs. The company says on its website that they

will refund money paid for these mousses, up to $2.29 if the consumer

does not “love it,” with a tag-line “love it or it’s free.”

Consumer advertisement (parenting magazine)


that it is low in fat. Contains: durum

whole wheat semolina, whole rye flour,

wheat bran, whole buckwheat flour,

whole barley flour, brown rice flour,

thiamine mononitrite, riboflavin, niacin,

folic acid and ferrous sulphate.

Canada: Ronzoni Foods Canada

Corporation

www.catelli.com

Energy and Sports Drinks

Fuze Omega Energy

Drink: energy drink

Energy drink that combines

10% juice, crystalline

fructose & sucralose, and a

tropical fruit flavor.

Ingredients are: carbonated

water, crystalline fructose, apple juice

concentrate, citric acid, taurine, d-ribose,

sodium citrate, natural passion fruit and

mango flavors with other natural flavors,

l-carnitine, ascorbic acid (vitamin C),

inositol, contains 10% juice, caffeine,

gum arabic, monopotassium phosphate,

ester gum, panax ginseng root extract,

sucralose (a non-nutritive sweetener),

pyridoxine hyrochloride (vitamin B6),

folic acid, beta-carotene and

cyanocobaliamin (vitamin B12).

United States: Fuze Beverage, Llc.

US Energy Drink

(Series II): enegy drink

This energy drink is

made using spring water

and the natural flavors

of ginseng and ginkgo

biloba. It’s fueled by l-

carnitine, and taurine

for maximum energy production. It also

has 100% of daily needs of vitamin C. It’s

infused with fruit essence to provide a

crisp citrus taste. US Energy Drink is said

to be scientifically formulated to give your

body the sustained energy it needs. Said

to replenish your arsenal with improved

performance and increased endurance.

Contains: natural spring water infused

with carbonation, glucose, sugar and or

high fructose corn syrup, citric acid,

taurine, natural and artificial flavors, l-

carnitine, ascorbic acid, sodium benzoate

(preservative), carmel color, caffeine,

inositol, guarana (paullinia cupana) seed

extract, niacin, d-calcium pantothenate,

ginkgo biloba leaf extract, siberian

ginseng root extract, pyridoxine

hydrochloride, riboflavin and

cyanocobalamin.

United States: United Brands Company

www.usenergydrink.com

Leading Brands Mad

Croc Energy Drink:

energy drink

Imported by Leading

Brands, Inc. from the

Netherlands. Mad Croc will

start with an exclusive

national listing with the 7-Eleven chain.

Ingredients are: carbonated water, sugar,

glucose syrup, citric acid, carbon dioxide,

sodium citrate, invert sugar syrup,

artificial flavor, caffeine, inositol, caramel

color, niacin, pantothenic acid, pyridoxine

hydrochloride, taurine, riboflavin (color)

and cyanocobalamin.

United States: Leading Brands, Inc.

www.lbix.com

Jianlibao A8: grapefruit

flavored sports drink

Grapefruit flavored sports

drink containing suitable

alkalinity electrolyte which

quickly supplies lost salt

and moisture. Ingredients

are: water, sugar, glucose,

citric acid, sodium cholide, sodium

citrate, potassium cholide, Mg cholide,

vitamin C and flavor.

China: Guangdong Jianlibao Enterprise

Group Co., Ltd.

Raw Dawg Energy

Drink: sports drink

Raw Dawg Energy Drink is a

berry punch flavored drink

with yohimbe, guarana,

taurine, and performance

components such as potassium,

carbohydrates, vitamins B6 & B12 and

vitamin C. It contains Horny Goat Weed,

claimed to be a world renowned

aphrodisiac. Raw Dawg helps put lost

fluids and electrolytes like sodium and

potassium back in the body so you will

drink enough to stay hydrated. Raw Dawg

has a 9% carb solution, to give working

muscles the energy they need to enhance

athletic performance but not inhibit rapid

absorption.

United States: Raw Dawg Beverage

Corp.

Electra-X Energy Drink:

energy drink

Electra-X is an Austrian

energy drink which claims

to offer 20% more energy

than Red Bull. It also

promotes relaxation and

targets consumers 14 to 50

years old. Ingredients are: carbonated

water, sucrose, citric acid, glucose,

artificial flavor and color caramel.

United States: Premium Energy

Beverages Llc

Gatorade Fierce

Strawberry: energy drink

Strawberry flavored energy

drink. Ingredients are: water,

sucrose syrup, glucose-

fructose syrup, citric acid,

natural and artificial strawberry flavor,

salt, sodium citrate, monopotassium

phosphate, vegetable juice (for color) and

ester gum.

United States: The Gatorade Company

www.gatorade.com

Fats and Spreads

Deli reform:

cholesterol

free half-fat

margarine

Cholesterol

free half fat

margarine, rich in vitamins. Contains no

preservatives, is free from cooking salt

and is made from only vegetable fats and

oils. Ingredients are: water, vegetable oil,

vegetable fat, jelling agent pektin,

emulsifiers: lecithins, mono- and

diglycerids of food fatty acids; natural

flavor, acidifier lactic acid, vitamins:

vitamin E, vitamin B6, vitamin A,

vitamin D and coloring (beta-carotene).

Germany: Walter Rau Lebensmittelwerke

Gmbh & co.kg

www.walter-rau.de


Products

UK (Masterfoods) Masterfoods has introduced a new pack design to

correspond with the launch of new Starburst Sour Chews. These chewy

candies are available in packs and bags containing an assortment of apple,

raspberry, pineapple and cherry flavors in the UK, as opposed to the US

range of green apple, watermelon, cherry and blue raspberry. Masterfoods

is spending £3.4 million on its relaunch campaign including a 1.2 million

pack sampling campaign.

Trade advertisement


Finger Foods

Combos Cheddar

Cheese Pretzels:

pretzels

Cheddar cheese

filled pretzels.

Contains: flour,

whey, partially

hydrogenated

soybean oil, food starch-modified, less

than 2% -salt, maltodextrin, corn flour,

leavening, dextrose, autolyzed yeast

extract, skim milk, soy lecithin,

hydrolyzed wheat gluten, lactic acid,

buttermilk, coloring, corn syrup, citric

acid, lactose, mono and diglycerides,

sodium caseintate.

United States: M&ms/Mars

www.combos.com

Frozen Desserts

Oasis Sorbet:

tropical sorbet

Exotic fruit

sorbet.

Ingredients are:

water, fruit juices (35% [orange, mango,

guava, papaya, kiwi fruit, apple, lemon,

pineapple, passion fruit]), exotic fruits

sauces (modified starch, gelifier (pectin),

natural colorings (curcuma roots extract,

anthocyan), natural flavor, acidifier

(E330)), fructose glucose syrup, sugar,

gelifiers (E410, E464, E412), flavor and

colorings : E160b, E120, E100.

France: Mb Sas

Frozen Fish and Seafood

Ocean Jewel

Calamari:

frozen calamari

Oven ready

Italian seasoned

breaded calamari rings with marinara

sauce and parmesan cheese. Oven-ready

in less than 15 minutes.

United States: Expack Seafood Inc.

www.expack.com

Frozen Ready Meals

McCain

American Bun’s:

filled breads

Small breads filled

with chicken and

fresh cheese. Ready

in 1 minute and 30 seconds in a

microwave oven. Ingredients are: dough

(48%): wheat flour, water, vegetable fat,

eggs, sugar, dried skimmed milk, yeast,

emulsifier (E471), salt, modified starch,

stabiliser (E461), yeast extract Filling (52

%) : vegetables (26% – carrots, beans,

onions, courgettes), cheese (25% –

mozarella, white cheese (10% – fresh

cheese, milk proteins and salt)), cream,

chicken (14%), water, parsley, basil,

modified starch, chives, vegetable and

chicken stock (flavor enhancer E621,

E631, E627), stabilizer (E461), flavors,

yeast extract, spices extract, marjoram,

cayen pepper and lemon juice.

France: McCain Alimentaire

Linda

Mccartney

Southwestern

Style Rice

And Beans:

vegetarian ready

meal

All natural, meatless rice and beans ready

meal. Dish is prepared with no artificial

flavors, colors or preservatives and every

effort possible is taken to ensure that

these products contain no genetically

engineered ingredients. Contains: cooked

enriched rice, zucchini, water, red beans,

cultured cream, corn, skim milk, peppers

(chili, jalapeno), milk, onions, tomato

paste, peanut oil, salt, cornstarch, garlic,

enriched flour, spices and coloring,

cheese culutres, cream, sodium citrate,

enzymes, chipotle puree (water, chipotle

peppers, salt, vinegar), vegetable gums

(xanthan, arabic), yeast extract, natural

flavors, annatto (vegetable color) and olive

oil.

United States: Ethnic Gourmet Foods,

Inc.

www.ethnicgourmet.com

Fruit Drinks

The Switch Black Cherry

Fruit Drink: black cherry

fruit drink

100% juice reconsituted with

sparkling water. Ingredients

are: 100% juice (filtered

sparkling water sufficient to

reconstitute juice concentrates, apple,

grape, cherry juice concentrates), natural

flavor and color, citric acid and ascorbic

acid (vitamin C).

United States: The Switch Beverage

Company

www.switchbev.com

Rocwell Water Wild

Irish Apple Fruit

Drink: fruit drink

Wild Irish Apple, is a fruit

drink imported from

Ireland, which is made

with 12% fruit juice and

carbonated natural

mineral water. The hold-in-hand bottle is

custom-designed and specifically

manufactured for Wild Irish, claimed to

help create a new level of impact. This

drink contains no colorants, is 100%

natural and contains no preservatives or

artificial additives or sweeteners, and no

refined sugar. Also availble in orange,

fruit of the forest, plum and pear flavors.

Ingredients are: carbonated water, sugar,

glucose syrup, orange pulp and puree,

citric acid, orange fragrance and ascorbic

acid.

United States: Rocwell Water

www.rocwellwater.com/wirish.asp

Master Kong Plum

Drink: fruit drink

Plum fruit drink. Contains:

pure water, plum extracts,

Chinese hawthorn and

liquorice juice.

China: Tianjin Dingjin Food

Co., Ltd. Of Dingxin

International Group

www.mastekong.com.cn

Sapporo, Syunrei

pineapple: pineapple

juice

Pineapple juice.

Contains vitamin C.

Ingredients are fruits

(pineapple, lemon),

frozen crushed

pineapple, fructose corn syrup, flavor,

stabilizer(pectin), acidulant, vitamin C


Products

UK (Red Bull) Red Bull energy drink was launched in a sugar free

variety earlier this year, backed by the company’s £10 million annual

brand advertising campaign. According to Nielsen Impulse, regular Red

Bull holds an 87% share of the energy drinks market. Red Bull Sugarfree

is said to deliver the benefits of increasing performance, increasing

concentration and reaction speed and alertness. Red Bull uses the

sweetener combination of aspartame and acesulfame K instead of sugar.

Trade advertisement


and sweetener.


Teisseire Excellence:

concentrated syrup

Mango and passion fruit

flavored concentrated fruit

syrup. Contains: sugar,

fruits juice based on

concentrates (40% of which

25% mango and 15%

passion fruits), water, acidifier (citric acid)

and natural flavors.

France: Teisseire

Niulanshan Fresh

Blueberry Beverage:

blueberry drink

Blueberry flavored

beverage. Ingredients are:

pure water, sugar, citric

acid, vitamin C, blueberry

juice and flavor AK.

China: Beijing Niulangshan Wine Factory

Ice Cream

Deshi Happy

Room Ice-

Cream: ice cream

Ingredients are:

water, sugar, whole

milk powder, jam,

palm oil, xanthan

gum and milk flavor.

China: Shenyang Deshi Food &

Beverage Co., Ltd.

Glico Momowari-

Peach and Crushed

Ice: ice cream

Peach and crushed ice.

Contains vitamin C.

Ingredients are: peach

pulp, sugar, acidulant,

flavor, vitamin C, stabilizer

and sweetener.

Japan: Ezaki Glico Co., Ltd.

Häagen-Dasz

Dates &

Almond cream:

ice cream

Ice cream made

with almond and

peanut butter and

with dates pieces. Contains: fresh cream,

skimmed milk, dates (10%), sugar,

concentrated dattes juice, egg yolk,

almond butter (3%), dates mash and

peanut butter.

France: Häagen-Dasz

www.haagen-dazs.fr

Nestlé Crunch

Ice Cream

Bars: ice cream

bars

Artificially

flavored vanilla

ice cream with a caramel center and a

Nestlé crunch coating. Caramel flavored.

United States

Nestlé Ice Cream Company, Llc

www.nestle.com

Ice Tea

Oregon Chai Iced

Tea with Peach and

Chai Spices: ice tea

Ice tea concentrate and

with chai spices infused

with peaches. Oregon

Chai has introduced two

new refreshing iced teas,

both in a convenient concentrate form.

Just add equal parts of water and enjoy

over ice. Each is made from all natural

and organic ingredients. Serve by the

glass or by the pitcher. Contains: water,

organic evaporated cane juice, organic

peach juice concentrate, organic black

tea, natural flavors, citric acid, organic

spices, honey, organic vanilla and organic

ginger (extracts).

United States: Oregon Chai Inc.

www.oregonchai.com/splash.cfm

JT, Ao-oolong: Ice

oolong tea

Ice oolong tea, containing

vitamin C.

Japan: Jt Foods Co.,ltd

Nestea Waldfrucht: ice

tea with berry flavor

Soft drink with tea extract

and berry flavor. Ingredients

are: water, sugar, fruit juices

(bilberry juice, strawberry

juice, raspberry), acidifier:

citric acid and apple acid,

flavor, tea extract (0.09%) and acid

regulator sodium citrate.

Germany: Atlantic Beverages Limited

Zeigler’s Lemon Tea:

ice tea

Pasteurized lemon tea

containing 5% juice.

Ingredients are: water,

high fructose corn syrup,

lemon juice, white grape

juice concentrate, tea,

citric acid, natural flavors, sodium

benzoate and potassium sorbate to

maintain freshness.

United States: Zeigler Beverage Co.

Juices

Looza ACE:

multivitamin nectar

Multivitamin nectar made

from different fruits,

naturally rich in vitamins

and with a fruit content of

at least 50%. Rich in

vitamin C and containing

no added sugar. Fruit

content consists of: pineapple, orange,

passion fruit, lemon, carrot juice and

kiwi, banana and mango papaya puree.

Germany: Looza Sa

Reed’s Ginger Juice

Brews: cranberry

raspberry ginger juice

These are non-carbonated

variants of Ginger Brews

and are brewed from

fresh organic ginger root

and sweetened with

organic fruit juices. Freshly brewed from

filtered water, sweetened by organic white


Products

UK (Kellogg Company) Kellogg’s are promoting four of their biggest

light snacks (Special K Bar, Nutri-Grain Elevenses, Nutri-Grain and

Winders) in response to the growing demand for snacks on the move.

According to the company the light snacks market is growing 27% year

on year and 45% of snackers are looking for something lighter. Nutri-

Grain Elevenses for example are wholesome wheat and wholemeal bakes

with just 4g of fat per bar and said to provide 25% of your daily essential

vitamin B requirements.

Trade advertisement


grape or organic apple juice from

concentrate, organic ginger, cranberry

and raspberry juice from concentrate.

They contain organic ginger, sweetened

organic juice and 100% juice.

United States: Reed’s, Inc.

www.reedsgingerbrew.com/

Meat Substitute

Natural

Touch

Roasted

Herb

Chik’n:

frozen chicken: chicken substitute

The taste of chicken made with organic

soy and glazed with garlic, onion, red bell

pepper, and other seasonings. Made with

organic soy. Organic textured soy protein

with water, organic textured wheat

protein (wheat gluten, wheat flour) with

water, egg whites, and native tapioca

starch.

United States: Worthington Foods

www.morningstarfarms.com

Natural Cheese

Frico Cheez’it:

mild cheese

Two bars of Edam

cheese. Edam 40+ cheese contains: milk,

salt, zuursel, coagulant, preservative E251

and coloring E160a.

Netherlands: Frico Cheese Benelux

Leerdammer

Minis:

Leerdammer

cheese

Semi-hard 45%

fat Leerdammer cheese.

Germany: Leerdammer Company

Popcorn

Rainbow Popcorn:

rainbow colored

popcorn

Sweet ‘n’ crunchy

rainbow colored

popcorn. A high fiber

snack, with no

preservatives. Cholesterol-free food.

Ingredients are: popcorn, sugar, canola

and/or coconut oil, artificial color, (blue

‘1, red ‘40, yellow ‘5 & ‘6).

United States: Royal Palm Co., Inc.

Potato Chips

Calbee Black

Pepper Potato

Chips: potato chips

Black pepper flavored

potato chips.

Ingredients are: potato,


Products

UK (McVitie’s) Mini Cheddars,

which are said to be aimed at the

25-44 year old market, are one of

the most established snack brands

in the UK. McVitie’s teamed up

with Van den Burgh Foods

Peperami brand of salami snacks

earlier this year to produce the

limited edition Mini Cheddars

Peperami, which are miniature

savoury biscuits with a cheesy

salami flavor. These snacks have

now been permanently introduced

on the market. According to IR

statistics Mini Cheddar sales are

up 10% this year. Other flavors

are: Original, Smokey BBQ and

Tangy Salsa.

Trade advertisement


vegetable oil, black pepper, salt, sugar,

yeast extract powder, malt syrup, onion

powder, corn starch, powdered soy sauce,

seasoning lard, spices, seasoning (amino

acid), spice extract, flavor and acidulant.

Japan: Calbee Co., Ltd

Frito Lay Sour

Cream & Onion

Ruffles: sour cream &

onion potato chips

Thick-ridged, dip-

friendly, potato chips

flavored with tangy

sour cream & onion. Promoted as being

“Ultimate Dip Chip!”, Ruffles potato

chips hold up to dip without breaking.

Ingredients are: potatoes, corn and/or

cottonseed oil, salt, whey powder, non-fat

dry milk, onion powder, partially

hydrogenated soybean oil, dextrose

monohydrate, maltodextrin, natural

flavor, sour cream, monosodium

glutamate, corn starch, modified food

starch, sugar, citric acid, silicon dioxide,

mono-and diglycerides and artificial color.

United States: Frito-Lay Inc.

www.fritolay.com

Daliyuan Copico Potato

Chips: hot potato chips

Ingredients are: potato flour,

vegetable oil, potato starch,

spice, corn flour,

emulsifying agent, salt,

glucose, sweetener and

antioxidant.

China: Fujian Dali Food Co., Ltd.

Vico Plumise:

blown potato chips

Contain only 10%

fat. Blown and

cooked in the oven.

Contains:

dehydrated potato (66%), starch,

vegetable fat, flavors (with yeast extract,

taste enhancements: monosodic

glutamate, disodic inosinate and disodic

guanylate, dried melted cheese, milk

albumin, peanut oil), sugar, salt,

emulsifier (E322), wheat flour, tomato

basilic, emmental, fresh cream and fine

herbs and tomato olives.

France: Vico

Cadina Tomato

Sauce Potato Chips:

potato chips

Tomato flavored potato

chips. Ingredients are:

fresh potato, refined

vegetable oil, tomato powder, sugar, egg,

salt, flavor enhancing agent, tomato

flavor and antioxidant.

China: Beijing Cadina Agricultural

Developing Co., Ltd.

Powdered Milk

Yili Fresh Milk

Powder for Men:

milk powder

Contains rich

protein, with

scientifically added

Ca, Zn, Si, and

vitamins A, E, D. 100% nutrition

concentrated from fresh milk.

Ingredients are: fresh milk, skimmed

milk, refined vegetable oil, lecithin, B-

carotene, taurine, vitamins and minerals.

China: Inner Mongolia Yili Industrial

Group Co., Ltd.

Sanyuan Second

Phase Formula: milk

powder for babies

between 7 and 12

months

Based on the

composition of human

milk, enriched with folic

acid. it is characterized by ideal solubility.

With added whey protein, enriched

vitamins and trace elements. Contains:

high quality fresh milk, demineralized

whey powder, whey protein concentrate,

palmitic oil, refined corn oil, sugar,

vitamins and minerals.

China: Beijing Sanyuan Foods Co., Ltd.

Sanyuan Middle

and Old Age Milk

Powder: milk

powder

With specially added

calcium, vitamin A,

VD3 and trace

element of Si. Enriched with VE, Si,

taurine, VA, VD. Ingredients are: high

quality fresh milk, skimmed milk,

demineralized whey powder, whey

protein concentrate, sugar, dextrin,

vitamins and minerals.


Sanyuan Hi-Calcium, Hi-iron Milk

Powder: milk powder

With high quality fresh milk and added

iron, Ca, VD3, VC. High calcium, iron

enriched to promote bone health.


Powdered Soft Drinks

Tongye Litchi

Powdered Drink: soft

drink

Ingredients are: sugar,

glucose syrup, litchi, acid,

food flavor and food color.

China: Jiangsu Tongye

Health Food Co., Ltd.

Pourable Dressings

Kraft Hot ‘n Spicy

Miracle Whip

Dressing: hot and spicy

dressing

Ingredients are: soybean

oil, water, vinegar, high

fructose corn syrup, eggs,

sugar, modified food starch, contains less

than 2% of salt, cayenne pepper puree,

mustard flour, dried tomatoes, natural

flavor, paprika, spice, potassium sorbate

as a preservative, oleoresin paprika and

dried garlic.


America, Inc.

www.kraftfoods.com

Pre-mixed Spirits

Kisses from Russia:

vodka and orange mixed

drink

Alcoholic pre mixed drink

with vodka and orange, to be

drunk ice cold. Contains

5.4% alcohol. Ingredients

are: carbonated water, sugar,

vodka, fruit juice, flavors,

colorings, E122, E110, E102,

preservatives: E211, E202, and acidity

regulator E338, E330.

Belgium: Geens Benelux Sa


Products

USA (The Keebler Company) Keebler has introduced two varieties of

shortbread biscuits. Sandies Swirl is available in Cinnamon Shortbread and

Caramel Pecan Shortbread varieties. These biscuits are buttery shortbread

with caramel pecan or cinnamon swirled through it.


For more new products

information, try the

WIN database. Request

guest access today.

www.win-food.com


Processed Cheese

Rougette

Ofenkäse: oven

cheese

German soft cheese

with garden herbs

for the oven.

Contains: German

soft cheese, herb mixture and coloring:

paprika extract.

Germany: Käserei Champignon

Le Tartare

Provence: fresh

cheese preparation

Original French

fresh cheese

preparation.

Contains only 18%

fat. Ingredients are: fresh cheese, paprika

(5.5%), milk protein, butter salt, tomato

concentrate, thickener: carrageenan,

locoust bean gum, sugar, olive oil,

marjoram, thyme, flavor, pepper and

garlic.

Germany: Le Tartare Provence

Savoury Biscuits

Keebler Harvest

Bakery Rye

Crackers: large

crackers

These crackers are

being promoted for

their baked rye bread

taste with a crispy crunch. Claims to have

the authentic taste of natural grains and

caraway seeds. Ingredients are: enriched

flour (wheat flour, niacin, reduced iron,

thiamine mononitrate (vitamin B1),

riboflavin (vitamin B2), folic acid),

vegetable shortening (partially

hydrogenated soybean and/or cottonseed

oil), rye flour, sugar, contains two percent

or less of salt, caraway seed, onion

powder, leavening (yeast, sodium

bicarbonate, sodium acid pyrophosphate,

monocalcium phosphate), corn syrup,

caramel color, high fructose corn syrup

and dill seed.

United States: Keebler Company

www.keebler.com

Nabisco

Ritz

France:

savory biscuits

Salty sandwich biscuits. Contains: wheat

flour, vegetable shortening, whey powder,

cheese powder, sugar, leavening agent,

salt and soya lecithin.

China: Nabisco Food (suzhou) Co., Ltd.

Nabisco

RITZ

Italy:

pizza flavored biscuits

Pizza flavored sandwich biscuits.

Contains: wheat flour, vegetable

shortening, sugar, pizza flavoring,

leavening agent, salt, monosodium,

glutamate and soya lecithin.

China: Nabisco Food (suzhou) Co., Ltd.

Maohuat

Almond

Nutrition

Cracker:

nutritional

crackers

Ingredients are: wheat flour, sugar,

shortening oil, California almonds,

vegetable oil, egg, condensed milk,

raising powder, cream, malt syrup, salt,

Ca, flavor, preservatives, vitamin B1, B2

and vitamin E.

China Shantou Maofa Food Co., Ltd.

Savoury Spreads

Nadler

oliviades:

salad with

olives and

ham

Mediterranean

spread made with tomatoes, olives and

ham. Contains: 21% ham, tomatoes,

zucchini, 9% vegetable oil (40% olive

oil), onions, sugar, raisins, paprika, 3%

green olives, water, white wine vinegar,

broth, bacon, preservatives sodium

benzoate and kalium sorbate, thickener

xanthan, balsamico-vinegar, salt, herbs,

spices, colors: real karmin and paprika

extract and flavors.

Germany: Nadler feinkost Gmbh

www.nadler.de

Meggle

Die

Krauter

Joghurt

Butter Aufstrich: Mexican flavored

yogurt herb spread

A creamy and easy to spread herb butter

with a Mexican flavor. Ingredients are:

butter, red and green pepper, red and

green chilis 5%, tomato paste, parsley 3%,

iodiated salt, spices, natural flavor,

maltodextrin, starch, spirit vinegar and

acidifier citric acid.

Germany: Meggle wasserburg Gmbh &

co kg

www.meggle.de

Savoury Snacks

Kashi TLC (Tasty

Little Crackers):

snack crackers

All natural snack

crackers. Promoted

as full of whole

grain goodness with

no saturated fats.

Made from Kashi’s unique combination

of seven whole grains and sesame. This

blend is stone ground into flour, tossed

with whole cracked wheat berries and

toasted sesame seeds, then baked to

crispy perfection, creating a hearty,

crunchy snack that’s just the right size

for popping in your mouth. No saturated

fat, no hydrogenated oils.

United States: Kashi Company

www.kashi.com

Codfish string

snack: cod snack

A snack in a

noodle shape

made from codfish

and wheat flour.

Ingredients are:

codfish, wheat

flour, starch, salt, sugar and seasonings.

Taiwan: Yon-fong Foods Co., Ltd.


Products

UK (Walkers) Walkers Snacks is completing its biggest snacks

promotion yet in the UK, with over 35 million prizes being given away.

Meanwhile the company has introduced a limited edition line of French

Fries crispy potato snacks for the rest of the year with the introduction of

the typically British Fish & Chips flavor in snack form. These snacks are

shaped in French fry form as well as in the shape of miniature fish. This

snack retails at £0.27 for a 22 g bag.

Trade advertisement


Seasonings

Kraft Steak A.1.

House Chicago

Steakhouse

Marinade: black and

red pepper marinade

for steaks

Robust marinade with

coarse black pepper

and roasted red bell

peppers. This robust marinade combines

coarse black pepper and roasted red bell

peppers to create a flavor said to be like

that at your favorite steakhouse. Simply

marinade steak with your favorite flavor

for 30 minutes and grill.


America, Inc.

www.almarinades.com

Ken’s Steak House

Lemon & Pepper

Marinade: marinade

Lemon and pepper

marinade for chicken,

meat, fish, pasta salad,

or stir-fry. Blend of

ingredients marketed as

combining a light and

tangy lemon flavor with a complimentary

touch of pepper. Meat should be covered

and refrigerated for at least 30 minutes-

marinate longer for richer flavor.

Promoted as ideal for marinating,

basting, grilling and dipping.

United States: Ken’s Foods, Inc.

www.kensfoods.com

Ken’s Steak House

Teriyaki Marinade:

marinade

Teriyaki marinade for

chicken, meat, fish,

pasta salad or stir-fry.

Savory blend has a

traditional Oriental

flavor with added

garden spices. Contains: distilled vinegar,

molasses, soy sauce, water, sugar and

modified food starch. Contains less than

2% of: salt, maltodextrin, spice,

monosodium glutamate, hydrolyzed soy

and corn protein, caramel and sodium

benzoate as a preservative.

United States: Ken’s Foods, Inc.

www.kensfoods.com

Jack Daniel’s

Mesquite EZ

Marinader:

marinade in a bag

Authentic smoky

sweet flavor from

mesquite wood,

complemented with

Jack Daniel’s Tennessee whisky flavor

and a special blend of spices. Promoted

as a quick and convenient marinating

solution and is said to be ideal for

chicken, steak and pork.

United States: H J Heinz Co.

Mr. Yoshida’s

Fine Sauces

Teriyaki EZ

Marinader:

marinade in a bag

A wonderful Asian

flavor from naturally

brewed and aged soy

sauce and the finest

ginger, sesame seeds and spices. Said to

be ideal for chicken, steak, fish and

vegetables. Contains: high fructose corn

syrup, soy sauce, sugar, water, garlic

powder, sesame seeds, garlic, ginger

puree, modified corn starch, lactic acid,

xanthan gum, dehydrated onion, citric

acid, sodium benzoate and potassium

sorbate as preservatives, sesame oil,

onion powder, spice and calcium

disodium EDTA added to protect flavor.

United States: H J Heinz Co.

Sugar Confectionery

Red Band Soft

Spinners: fruit gums

Soft fruit gums in red

fruits, apple-pear and

pineapple-cactus

flavors. Ingredients

are: glucose syrup,

sugar, modified starch, gelatin, milk

sugar, food acids, E270, flavorings,

glazing, vegetable oil, bee wax and

colorings (E104, E120, E141, E171).

Netherlands: Rbv Leaf Bv

www.redband.nl

Nabisco Jell-O

Pudding Bites:

soft, chewy pudding

snacks

Pudding snacks

made with real milk.

Promoted as a good

source of calcium. Contains: corn syrup,

sugar, skim milk, chocolate,

hydrogenated coconut oil, modified

cornstarch, gelatin, calcium carbonate

(source of calcium), natural and artificial

flavor, mineral oil, salt and carnauba wax.

United States: Nabisco Division Kraft

Foods North America Inc.

Storck

Campino:

hard candy

Strawberry and

cream flavored

hard candy. Ingredients are: glucose

syrup, sugar, cream (6.2 %), butyric fat,

hydrogenated vegetable fat, acidifier

(lactic acid), acidity corrector (sodium

lactate), artificial and natural flavors, salt,

emulsifiers (E471 and lecithins),

concentrated strawberry juice (0.15 %),

colorings (red Allura AC and E171).

France: August Storck Kg

Sweet Biscuits

Joseph’s Sugar-free

Peanut Butter Cookies:

sugar-free cookies

Sugar-free, crispy bite-sized

peanut butter cookies made

from certified organic

wheat flour and sweetened

with maltitol. Contains: unbleached

wheat flour, low fat peanut flour, maltitol,

canola oil, peanuts, peanut butter, egg

whites, baking soda and baking powder

(aluminium free).

United States: Joseph’s Lite Cookies

www.josephslitecookies.com


Products

US (KF Holdings) Jell-O Brand Sugar Free Gelatin Snacks are convenient ready-to-eat snacks. These gelatin

snacks have been launched in peach, watermelon, strawberry, raspberry, orange, strawberry-kiwi, tropical berry,

lemon-lime, cherry and black cherry varieties. Each cup provides a refreshing fruity 10-calorie, fat free snack.

JELL-O Brand Sugar Free is especially being promoted as ideal for people with diabetes, offering a free food

exchange.



Tea

Lipton

Jasmine

Teabag:

teabags

Quality, natural Jasmine tea.

China: Unilever Foods (China) Company

Ltd.

Blended Herbal Tea:

herbal tea

Mixture of different herbs.

These are: ganoderma

lucidum, wedelia

chinoensis merr, mint,

orthosiphon stamineus,

mesona proumbens hemsl, phylanthus

urinaria L., biden pilosa, petris

fromosana bak and sugar.

Taiwan: Jin-jin Co., Ltd.

Toppings

Wish-bone Cheesy

Ranch-up!: dressing

dip, topping and spread.

Dressing dip, topping &

spread

Wish-Bone Ranch-Up!

has a rich, creamy flavor

and is promoted as being

ideal for dressing salads, coating buffalo

wings, dipping French fries, spreading on

sandwiches and more. Ingredients

include: soybean oil; water; natural

flavors; distilled vinegar; sugar; salt;

whey; cheddar and blue cheeses; contains

less than 1% of garlic powder; onion

powder; xanthan gum and modified corn

starch.

United States: Unilever Bestfoods North

America

www.wish-bone.com

Betty Crocker

Dulce De Leche

Caramel Rich &

Creamy Frosting:

creamy frosting

New rich and

creamy caramel frosting flavor in the

Betty Crocker line. Light and fluffy

whipped frosting is easy to spread. Betty

Crocker frostings are promoted as the

perfect complement to SuperMoist cakes

and any other dessert you’re making for

your family. Ingredients are: sugar,

partially hydrogenated soybean and

cottonseed oil, water, wheat starch, high

maltose corn syrup, contains 2% or less

of: yellow lakes 5&6 and other color

added, salt, distilled monoglycerides,

polysorbate 60, sodium-stearoyl lactylate,

sodium acid pyrophosphate, natural and

artificial flavor, sulfiting agents, citric

acid, non-fat milk and preservative

(potassium sorbate).

United States: General Mills Inc.

www.bettycrocker.com

Hershey’s Triple

Chocolate Dessert

Toppings: dessert

topping

Semi-sweet chocolate

chip flavored

sprinkles, with cookie

pieces. Ideal topping for ice cream, cakes,

and other desserts. Hershey’s has also

introduced a peanut butter dessert

topping. Ingredients are: semi-sweet

chocolate chips, sugar, enriched flour,

cornstarch, partially hydrogenated

vegetable oil, cocoa processed with alkali,

chocolate, contains 2% or less of: whey

(milk), corn syrup, sodium bicarbonate,

salt, soy lecithin, dextrin, resinous glaze,

natural and artificial flavor, and carnauba

wax.

United States: Hershey Foods Corportion

www.hersheys.com

Smucker’s Magic Shell

Turtle Delight

Topping: dessert topping

Chocolate caramel

flavored topping with

pecans and artificial

flavor. This topping

freezes in seconds on an

ice cream to create a candy-coated

topping that can be broken and mixed

right in with the ice cream. Said to be

“fun to make and fun to break.”

United States: The J.m. Smucker Co.

www.smuckers.com

Wet Cooking Sauces

McCormick Grill Mates

Mesquite Grilling Sauce:

barbecue and grill sauce

A mesquite barbecue sauce

to be brushed on during last

few minutes of grilling or at

the table if a bolder flavor is

desired. Tangy barbeque

sauce said to be enhanced with Mesquite

wood flavor and a hint of smoky chipotle

peppers to give a rich taste to chicken,

ribs or pork. Easy to use. Ingredients are:

water, honey, high fructose corn syrup,

brown sugar, tomato paste, salt, banana

puree, mustard, modified corn starch,

spices, orange juice concentrate, lemon

juice concentrate, distilled vinegar,

paprika, grill flavor, molasses, mustard

seed, garlic, corn syrup, natural mesquite

smoke flavor, caramel color, parsley,

onion, sugar, tamarind, natural flavor,

and citric acid.

United States: McCormick & Company

Inc.

www.mccormick.com

Bull’s-Eye Premium

Original BBQ Sauce:

barbecue sauce

Bull’s-Eye barbeque

sauce in a new easy

squeeze bottle. No mess

cap. Ingredients are:

tomato puree, high

fructose corn syrup, molasses, vinegar,

salt, contains less than 2% of modified

food starch, natural smoke flavor,

mustard flour, onions*, spice and garlic*

*dried.

United States: Ridg’s Finer Foods Inc.

Kraft BarBQ Sauce:

barbecue sauce

Sauce containing no

preservatives. Slowly

simmered. Ingredients

are: glucose-fructose,

water, vinegar, modified

corn starch, cooking molasses, brown

sugar, salt, tomato paste, spices, natural

hickory smoke flavor, mustard, guar gum,

natural flavor and color.

Canada: Kraft Canada Inc.

www.kraftcanada.com

Wine Coolers

Arbor Mist Tropical

Fruit Chardonnay:

flavored wine

Flavored Wine with tropical

fruit and other natural

flavors. Refreshing new way

to drink wine.

Canada: Arbor Mist Winery

www.arbormist.com


Products

US (Next Proteins) Detour bar, from the makers of Designer Whey is

said to combine the taste of creamy caramel, crunchy roasted peanuts and

a rich, chocolaty flavor to deliver a bar with a high nutritional profile. Each

triple layered bar provides loads of muscle building protein. GlycerLEAN is

said to help hard working muscles recover and get leaner, stronger, faster

after workouts. The bars are also being promoted for their taste. Each 40g

bar provides 30% of the daily value of protein.



Yogurt

Nestlé

Bifidus: natural

bio yogurt

Natural flavored

biological

yogurt, with calcium and bifidus. Rich in

calcium. Ingredients are: milk, milk

ferments and powdered skimmed milk.

Spain: Nestlé Espana, S.a.

Sanyuan Yogurt

Drink

Fermentated type of

yogurt drink with

added Va, Vd and Ca.

Contains: water, fresh

milk, sugar,

culture,fructose

oligosaccharide, calcium lactate,

stabilizer, vitamin A, vitamin D and

flavor.


Wandashan Pure

Yogurt Drink:

drinking yogurt

Contains: fresh milk,

water, sugar,

stabilizer and acidity

flavor.

China: Wandashan

Haerbin Dairy Co., Ltd. Of Heilongjiang

Nestlé Longa Vida Mix

Peach: yogurt drink

Long Life Mix is claimed to

be a new beverage concept

resulting from the

combination of peach juice

with the nutritional qualities

of yogurt. Nutritious and fresh beverage.

Portugal: Nestlé

www.nestle.pt

Nestlé

Suissinho: low

fat cheese

Fresh, low fat

cheese with fruits. Multipack containing

strawberry, red fruits and apple-pear-

peach flvors.

Portugal: Nestlé

www.nestle.pt

Onken

wellness: low fat

mild aloe vera

yogurt

A mild and light

(only 1.5% fat)

yogurt with aloe

vera and dextrose. Ingredients are: low

fat yogurt, fruit preparation (with

dextrose, oligofructose syrup, inulin,

flavor) and malti syrup. Also launched in

acerola elderberry and orange star fruit

varieties.

Germany: Onken

www.onken.de

Nestlé

Sveltesse

0%: fruit and

fiber yogurts

Light yogurt

with fruits

and fibers. Low in fat, rich in fiber.

Ingredients are: skimmed milk, milk

ferments, sultanas 2.5%, oligofructose,

milk protein, cereals 1.3% (wheat, oats,

barley), jelly, powdered skimmed milk,

hazelnuts, sesame, dextrose and

sweeteners E202.

Spain: Nestlé Espana, S.a.

Sveltesse

0% Fruit

Duet: Fruit

light yogurts

Fruity duet

light yogurts

with apple and kiwi flavor. Ingredients

are: skimmed milk, milk ferments, fruit

8.8%, oligofructose, milk protein, jelly,

flavor and sweeteners E202.

Spain: Nestlé España, S.a.

Nestlé Sveltesse

0% Cremosso:

light strawberry

yogurt

Light strawberry

flavored yogurt. Contains: skimmed milk,

milk ferments, strawberry pulp 5%, milk

protein and lactose, skimmed powdered

milk, fructose syrup, flavor and

sweeteners E202, E120.

Spain: Nestlé España, S.a.

Mona

yogurt

sorbet:

Mona light

yogurt sorbet

with strawberry-lemon and raspberry

sauce. Ingredients are: yogurt, sugar,

raspberry, glucose syrup, hardened

vegetable fat, maltodextrine, strawberry,

lemon, modified starch, stabilizer E471,

E472a, E472e, gelly, thickening agent,

E407, E415, E466, coloring E120, aroma

and milk protein.

Netherlands: Mona

Yanjing Green Tea: green

ice tea

Low sugar drink. Ingredients

are: pure water, sugar,

selected green tea, honey, Vc

and flavor.

China: Beijing Yanjing

Beverage Co., Ltd. Of

Yanjing Beer Group


Products

USA (Unilever Bestfoods) Wish Bone’s Ranch Up has been introduced

in three sauce flavors: Zesty, Cheesy and Classic. These sauces are being

promoted as perfect to dress salads, coat buffalo wings, dip French fries,

spread on sandwiches and more. Meanwhile Wish-Bone has also

launched a 5 Cheese Italian Dressing, which contains five cheeses said to

create a bold, flavorful dressing that is bursting with cheeses.


For more new products information,

try the WIN database.

Request guest access today.

www.win-food.com



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All quotations are made on a case by case basis to take account of the country of origin, deliverycountry and delivery method. You will be contacted with a complete price and delivery details.Please complete your preferences:

1. If delivery is to an address different to the one below or to more than 1 address, please specify:

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You can make a request for product retrieval by filling in the form above and faxing it to:

Fax: +31 26 319 0659

or by Email: (you may write out your order in an email)

[email protected]

or mail to:

Innova Market Insights, PO Box 166, 6800 AD Arnhem, The Netherlands


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We aim to make a difference to your business with the latestinsights on what’s really going on in the world of food & beverageinnovation.

This easy to use service puts you right at the center of productdevelopment and marketing. Follow the trends, track products,examine the positioning, check the claims – it’s all right here.

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Innova Market Insights

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6921 RE Duiven

The Netherlands

E-mail: [email protected]

Tel: +31 26 319 0650

Fax: +31 26 319 0659


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