40
N EW N UTRITION BUSINESS www.new–nutrition.com MARCH 2015 ISSN 1464-3308 VOLUME 20 NUMBER 6 THE JOURNAL FOR HEALTHY EATING, FUNCTIONAL FOODS & NUTRACEUTICALS Pages 16-18 Pages 7-10 Pages 13-15 Continued on page 3 Free-from and natural brand reshapes bar category By Paul Gander A pair of American entrepreneurs have made a free-from brand one of the most successful and fastest growing snacks in the UK, despite selling at super-premium prices against the background of a weak economy. Natural Balance Foods is next expanding with new products and a focus on new international markets. It’s a reminder of how powerful a combination it can be to give consumers products that taste good, are naturally functional and free-from. Over 11 years, Natural Balance Foods and its Nakd and Trek brands have extended their dominance of the UK’s growing minimally-processed and free- from snacks segments, boasting 88.3% sales growth with Nakd in the year to January 2015, a period in which sales of ‘healthier cookies’ as a whole shrank by 3.4%. Most recently, the company has shown that its reach extends beyond the bar ranges that remain the mainstay of both brands. Some 18 months ago, it launched sharing bags of Nakd Bits, and now it has confirmed its advance on the healthier confectionery segment with the even smaller (but still bagged) Nakd Nibbles. This business illustrates the benefits of spotting a gap in the market early on, and then ‘owning’ it through sheer weight of innovation. American entrepreneur Jamie Combs founded Natural Balance with help from his brother Greg (then a consultant) back in 2004, launching the two ranges in January 2006. Jamie had a background in fitness training and athletics, as well as a keen interest in nutrition. Still California-based, Greg left a post as Sunkist’s head of global licensing to join Jamie’s business as COO in 2007. Says marketing director Marina Love: “As Americans, they saw the obesity crisis that was taking hold in the US and wanted to make products which were healthy but still tasted good.” As she explains, both brothers had travelled widely, and they spotted the best opportunity in the UK. Nakd is the bigger of the two brands, growing in sales value to £20.8 million ($31.5m/€28.9m) last year. The brand uses as few ingredients and as little processing as possible. Nakd Berry Delight, for example, is 49% dates, 31% cashews, 17% raisins, 3% raspberries, plus ‘natural berry flavour’. The brand’s artisanal associations are reinforced by on-pack references to the ingredients being ‘smooshed’ together. While the fruit and nut bars make gluten-free, wheat-free and dairy-free claims, the range of Nakd Oatie Bars In Japan granola is a hot category Millennials spot adult potential of pouch How to spot the next “naturally functional” success

N BUSINESS · benefits of spotting a gap in the market early on, ... Target ... Yakult

  • Upload
    ngodiep

  • View
    213

  • Download
    0

Embed Size (px)

Citation preview

N e w N u t r i t i o n

B U S I N E S Swww.new–nutrition.com March 2015 iSSn 1464-3308VoluMe 20 nuMber 6

T H E J O U R N A L F O R H E A L T H Y E A T I N G , F U N C T I O N A L F O O D S & N U T R A C E U T I C A L S

Pages 16-18Pages 7-10 Pages 13-15

Continued on page 3

Free-from and natural brand reshapes bar category

By Paul Gander

A pair of American entrepreneurs have made a free-from brand one of the most successful and fastest growing snacks in the UK, despite selling at super-premium prices against the background of a weak economy. Natural Balance Foods is next expanding with new products and a focus on new international markets. It’s a reminder of how powerful a combination it can be to give consumers products that taste good, are naturally functional and free-from.

Over 11 years, Natural Balance Foods and its Nakd and Trek brands have extended their dominance of the UK’s growing minimally-processed and free-from snacks segments, boasting 88.3% sales growth with Nakd in the year to January 2015, a period in which sales of ‘healthier cookies’ as a whole shrank by 3.4%. Most recently, the company has shown that its reach extends beyond the bar ranges that remain the mainstay of both brands.

Some 18 months ago, it launched sharing bags of Nakd Bits, and now it has confirmed its advance on the healthier confectionery segment with the even smaller (but still bagged) Nakd Nibbles. This business illustrates the benefits of spotting a gap in the market early on, and then ‘owning’ it through sheer weight of innovation.

American entrepreneur Jamie Combs founded Natural Balance with help from his brother Greg (then a consultant) back in 2004, launching the two ranges in January 2006. Jamie had a background in fitness training and athletics, as well as a keen interest in nutrition. Still California-based, Greg left a post as Sunkist’s head of global licensing to join Jamie’s business as COO in 2007.

Says marketing director Marina Love: “As Americans, they saw the obesity crisis that was taking hold in the US and wanted to make products which were healthy but still tasted good.”

As she explains, both brothers had

travelled widely, and they spotted the best opportunity in the UK.

Nakd is the bigger of the two brands, growing in sales value to £20.8 million ($31.5m/€28.9m) last year. The brand uses as few ingredients and as little processing as possible. Nakd Berry Delight, for example, is 49% dates, 31% cashews, 17% raisins, 3% raspberries, plus ‘natural berry flavour’. The brand’s artisanal associations are reinforced by on-pack references to the ingredients being ‘smooshed’ together.

While the fruit and nut bars make gluten-free, wheat-free and dairy-free claims, the range of Nakd Oatie Bars

In Japan granola is a hot category

3400 3800

6200

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2010 2011 2012 2013

Frugra

M\

Millennials spot adult potential

of pouch

How to spot the next “naturally

functional” success

March 20152

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

C O N T E N T S & C O N T A C T S

All enquiries: Miranda MillsCrown House, 72 Hammersmith RoadLondon W14 8TH, UKPhone: +44 (0)20 7617 7032Fax: +44(0)20 7900 [email protected] by Mastercard, American Express and Visa accepted.

For 1 year at €910/ $1200/ £765/ A$1330/ NZ$1550/¥110,000 /C$1200 (11 issues).For 2 years at €1590/ $2100/ £1330/ A$2250/ NZ$2550/ ¥192,000 /C$2100 (22 issues).All including first class or airmail postage, net of any bank transfer charges.Published 11 times a year byThe Centre for Food & Health Studies

ISSN 1464-3308 All rights reserved, photocopying of any part strictly prohibited.

EditorJulian [email protected]

Dale Buss, New Nutrition Business, 6390 Cherry Tree Ct, Rochester Hills, MI 48306, USA.Tel: 248/651-9648 Fax: 248/[email protected]

Crown House, 72 Hammersmith Road,London, W14 8TH, UK.Tel: +44 (0)20 7617 7032 Fax: +44 (0)20 7900 1937

PO Box 21675HendersonAuckland 0650New Zealand

COMPANIES AND BRANDS IN THIS ISSUE

New Nutrition Business uses every possible care in compiling, preparing and issuing the information herein given but can accept no liability whatsoever in connection with it.

© 2015 The Centre for Food & Health Studies Ltd. Conditions of sale: All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. The Centre for Food & Health Studies does not participate in a copying agreement with any Copyright Licensing Agency. Photocopying without permission is illegal. Contact the publisher to obtain a photocopying license. This publication must not be circlated outside the staff who work at the address to which it is sent without the prior written agreement of the publisher.

As Nature Intended ......................................5Bai Brands ................................... 19,20,21,22Belvita ...........................................................4Beond ............................................................5Beverage Daily ............................................21Biola ............................................................25Calbee .................................................. 7,9,10Campbells ............................................. 11,12Chiquita ......................................................28Coca-Cola ...................................................19CocoPro ................................................ 23,24Danone ....................................... 25,26,27,28Dr Pepper Snapple .....................................21Facebook .......................................................4Frugra................................................... 7,9,10Fruigees ............................................ 13,14,15Gefilus ......................................... 25,26,27,28Glaceau VitaminWater ......................... 19,22Global Alliance for Probiotics ....................28Global Nutrition Group ...............................7GNC ...........................................................24Good Morning Tokyo ..................................7

Grano-ya .....................................................10Happy Family .............................................14Heinz ...........................................................27Holland & Barrett .......................................24Informed Sport ...........................................24Instagram ......................................................4International Probiotics Assn .....................28Japan Snack Foods Cereal Assn ................7,8Jenny Craig ...................................................6Kellogg ..........................................................4Kellogg Special K .........................................6Kroger .........................................................15Made to Matter .................................... 11,12Meijer ..........................................................15Nakd .................................................... 1,3,4,5Natural Balance Foods........................ 1,3,4,5Nielsen ..........................................................4NutriSystem ..................................................6Ocado .........................................................24Oriola ..........................................................25PepsiCo ................................................. 19,28Plum Organic .................................. 11,12,14

Plum Vida ............................................. 11,12Probi ............................................................28Propel ..........................................................19ProViva ............................................ 25,27,28Pulsin .............................................................5Safeway .......................................................21Sainsbury’s ....................................................5Shaws ..........................................................15Sprouts ........................................................15Talking Rain ...............................................21Target .......................................... 11,12,15,21Tine Dairy ..................................................25Trek ..................................................... 1,3,4,5Tropicana ....................................................28Twitter ...........................................................4Valio ............................................ 25,26,27,28Weight Watchers ...........................................6Whole Foods Market ..................................15Yakult ..........................................................28Yoghurt & Live Fermented Milks Assn ......28

LEAD STORY

1,3--5 Free-from and natural brand reshapes bar category

EDITORIAL

6 Has tech-inspired shift pushed Weight Watchers into spiral of doom?

CASE STUDIES

7-10 BREAKFAST: In Japan, granola is a hot category

11-12 SNACKING: Plum taps into adult snacking trends

13-15 START-UP: Millennials spot potential of pouch for adult snacks

16-18 STRATEGY: How to spot the next “naturally functional” success

19-22 BEVERAGE: Coffee fruit waste powers “new age” low-cal drink

23-24 ENERGY DRINKS: Protein and coconut water pairing for perfect sports drink

25-28 PROBIOTICS: Probiotic pioneer pushes juice expansion

NEW PRODUCTS29-34 Functional & healthy-eating new

product launches

IMPORTANT NOTICE

35 A polite reminder to our subscribers

REPORTS

37 10 Key Trends 2015

38 The Snackification of Breakfast

HOW TO SUBSCRIBE

39 Case Study Order Form

40 Subscription Order Form

March 2015 3

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

E D I T O R I A L

Continued from front page

misses out on the gluten-free claim. There are also Nakd Infused Raisins in a variety of fruit flavours, and the Nakd Protein Crunch Bar. The latter launched in April 2013, with a front-of-pack flash declaring 18% (soy) protein. There are currently four Protein Crunch flavours, each also available in a multipack.

Some of the SKUs, such as chocolate-flavoured bars, are more female-orientated as “guilt-free goodies”, says Love. But overall, the brand has across-the-board appeal, and is aimed at different occasions and ‘need states’.

Trek is more squarely about protein and ‘energy’. “We describe it as a ‘wholefood energy bar’,” says Love. “It’s more for a male audience, with an active lifestyle focus. But it’s more ‘natural energy’ than ‘sports’ as a product.”

With sales worth £2.4 million ($3.6m/€3.4m), Trek represents a smaller part of the business, but appeared to be

taking off in 2014, managing 373% year-on-year growth to reach that value.

In physical terms it is bigger (at 55g, including 10g of protein) than Nakd (35g). The Trek range currently splits between the protein bars, with fruit and chocolate flavours, and flapjacks (the only baked products from Natural Balance).

Part of the success for both brands has come thanks to their ability to span categories. “People want products with natural ingredients,” says Love. “It’s the range of flavour profiles we offer, too, including quirky flavours. [Nakd] is not really positioned as a free-from brand. Yes, we’ve been able to ride that trend, too, and we use it as key messaging. But we don’t confine ourselves to that. We also sit with the cereal bars, and sometimes in the produce section, too.”

It probably helps that the distinction between ‘free-from products’ and ‘healthier snack bars’ is no longer as

clear-cut in the consumer’s mind as it is among category managers.

“Free-from is seeing massive growth,” she says. “We came into the market at just the right time, when a number of categories were looking for healthier brands which were offering excitement, flavour and innovation. Now, Nakd is an anchor brand in the free-from category, but it’s also very strong in the cereals aisle.”

SUGAR FROM FRUIT

Does the fact that Nakd is a cold-pressed product impose limitations on the product variants? “There may be limitations, also in the fact that we’re true to being a wholefood brand,” Love admits. “But there is still plenty of scope for innovation.”

As might be expected, all products are free from artificial additives, including

CHART 1: FREE-FROM AND NATURALLY FUNCTIONAL MAKES PREMIUM PRICING POSSIBLE

£7.66(€10.78/ $11.55)

£8.33(€11.73/ $12.56)

£9.00(€12.67/ $13.57)

£9.88(€13.91 $14.90)

£11.11(€15.64/ $16.75)

£11.42(€16.08/ $17.22)

£13.30(€18.73/ $20.06)

£15.38(€21.66/ $23.19)

£17.85(€25.13/ $26.92)

£18.00(€25.35/ $27.15)

0

2

4

6

8

10

12

14

16

18

20

Belvita Breakfast Biscuits

(£2.30/300g pack)

Cadbury Brunch Bars (£1.75/210g

pack)

Kellogg's Nutrigrain Bars (£2/222g pack)

Belvita Breakfast Yoghurt Crunch

(£2.5/253g pack)

Jordans Frusli (£2/180g pack)

Nature Valley Crunchy

(£2.4/210g pack)

Eat Natural (£2/150g pack)

Nakd Bits (£2/130g pack)

Nakd Bars (£2.5/140g

pack)

TREK Bars (£0.9/50g bar)

Price per kg

March 20154

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

E D I T O R I A L E D I T O R I A L

any form of preservative. “But we have about a year’s shelf-life from manufacture,” she says. “The fruits in the product act as a natural preservative – along with the protective role of the packaging, of course.”

What Love is really talking about here is the sugar content. Although both brands make much of the ‘no added sugar’ claim, sugars from the fruit account for around 40% of each Trek bar, 45% of Nakd Cocoa Delight and 52% of Nakd Rhubarb & Custard.

OUTPERFORMING THE CATEGORY

So how is Nakd, in particular, so decisively outperforming the category as a whole? As Natural Balance explains, Nielsen’s ‘Healthier Biscuits’ category includes around 20 brands, with Belvita heading up the list. That list also contains the various Kellogg’s breakfast bars, for example. Nakd is ninth in the category.

“In much of the category, there’s very limited innovation,” says Love. “And our growth is part of a wider shift towards natural foods and wholefoods.” Consumers are actively moving away from less healthy, added-sugar, highly processed snacks, even where they are defined as ‘Healthier’ by Nielsen.

FLAVOUR INNOVATION

Although Natural Balance is not afraid of embracing innovation in the form of new formats and recipes, much of its eye-catching NPD is in flavours. As Love explains, this can appear quirky at times, but is intended to make associations with indulgence. Examples include:

• Bakewell Tart• Rhubarb & Custard • limited-edition Christmas Pudding

launched last year.

While the three flavour variants of Nakd Bits are packed in 130g bags, the smaller Nibbles format – just launched – are individually portioned in 40g bags. It uses the familiar combination of dates, cashews and raisins but in “a whole new range of flavours”, says Love.

Source: The Grocer Top Products Survey

£10m/ €13.8m/$15.1m

£16.4m/ €22.7m/$24.7m

0

2

4

6

8

10

12

14

16

18

2013 2014

£m

CHART 2: PREMIUM PRICING IS NO BARRIER TO IMPRESSIVE SALES GROWTH

CHART 2: PREMIUM PRICING IS NO BARRIER TO IMPRESSIVE SALES GROWTH

TABLE 1: NUTRITION SNAPSHOT TREK MORNING BERRY PROTEIN FLAPJACK TABLE 1: NUTRITION SNAPSHOT TREK MORNING BERRY PROTEIN FLAPJACK

-  8 bags of 35g are sold online for £15.15 Ingredients: dates (48%), cashews (29%), raisins (17%), cocoa (6%), natural chocolate flavour.

Typical Values Per bag (35g)

Energy 135kcal

Protein 3g

Carbohydrates 17g

of which sugars 15g

Fat 5g

of which saturates

1g

Fibre 2g

Sodium trace

Permission to indulge, no added sugars, extra convenience, free-from and “1 of your 5 a day” are the main promotional messages for Nakd Bits.

TABLE 2: NUTRITION SNAPSHOT NAKD BITS

TABLE 2: NUTRITION SNAPSHOT NAKD BITS

March 2015 5

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

E D I T O R I A L E D I T O R I A LSampling and special offers are also part of the promotional campaign for TREK bars and flapjacks.

TREK SAMPLING AND PROMOTIONS

Sampling and special offers are also part of the promotional campaign for TREK bars and flapjacks.

TREK SAMPLING AND PROMOTIONSShe agrees that this is a more direct

play for the better-for-you confectionery market. “Our aim is to offer great-tasting wholefood alternatives in as many categories as we can.”

With a target age group in the 25-to-45 range for Nakd and 25-to-35 for Trek, social media is important for Natural Balance. “Activity is strong for Nakd via Twitter, Facebook and Instagram,” says Love. “Our audience is online. And we’ve just started social media channels for Trek.”

Early this year, Natural Balance co-ordinated its Nakd Love campaign (fielding posters at 200+ London Underground stations) with newspaper-based giveaways of 40,000 bars.

Nakd is available in most of the UK multiples, though healthstore and convenience channels are also important for the brands, she says. Foodservice is another growth area.

In Sainsbury’s, a single Nakd bar retails at 75p ($1.13/€1.04); 90p ($1.36/€1.25) for Trek. A multipack of four 35g Eat Natural cereal bars costs £1.98 ($2.99/€2.75). The RRP for four-bar multipacks of Nakd is £2.29 ($3.46/€3.19).

In the As Nature Intended healthfood chain, single Nakd bars sell for 90p ($1.36/€1.25), compared with Pulsin’s fruit-based Beond bar (40g) for £1.00 ($1.51/€1.39).

Beond is one of the very few date-and-nut-based bar brands challenging Nakd on its home turf.

Natural Balance has just appointed an international sales specialist. But as might be expected given Greg’s experience in setting up businesses internationally, the brands already have healthy sales in many countries, from Scandinavia and the Netherlands to Canada, South Africa and Australia.

“Overseas sales are fairly evenly spread,” says Love. “We’ve just created a US website, though that market is still quite small at the moment.”

SAMPLING A KEY ELEMENT IN MARKETING MIX

Either on the streets or at special food shows/exhibitions, Nakd invests a lot on sampling and special offers in mixed flavours box formats.

SAMPLING A KEY ELEMENT IN MARKETING MIX

Either on the streets or at special food shows/exhibitions, Nakd invests a lot on sampling and special offers in mixed flavours box formats.NAKD SOCIAL MEDIA PROMOTION – SATIETY/

SUSTAINED ENERGY MESSAGES

NAKD SOCIAL MEDIA PROMOTION – SATIETY/SUSTAINED ENERGY MESSAGES

March 20156

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

E D I T O R I A L

A year ago, every warning light was flashing red for weight management giant Weight Watchers, whose sales fell by 6.3% in 2013. In response, the company’s CEO announced that “we are confident that we are on the right track to execute a successful transformation”.

But one year later, Weight Watchers’ decline is accelerating and the signs are that thanks to a massive shift in consumer behaviour, things can only get worse.

Born in 1964, Weight Watchers meetings and motivational groups were the first of their kind. Its weight management programme is clinically proven – and actually recommended by health authorities in the US, UK and elsewhere. But what Weight Watchers has to offer is losing consumer relevance.

Not only was there no good news in the company’s results, announced at the end of February, it was evident that Weight Watchers’ decline is accelerating:

• In the year to January 3rd 2015 sales were down 14.1% (to $1.479 billion) compared to 2013 and operating profit was down 41%.

• Fees earned for weight management meetings – the face-to-face support groups that the company invented in the 1960s and which account for 50% of total company revenue – fell by 12.2%. This followed an 8.9% decline the previous year.

• Even the company’s website – hailed as a way of developing the business in a market in which online is taking over from face-to-face

interactions – saw its users decline by 16.7%, following a 6.7% decline the previous year.

Technology has been one of the strongest challenges to the Weight Watchers business model. The proliferation of free apps and online programmes has undermined the value to consumers of paid-for weight management programmes offered by Kellogg Special K, Weight Watchers, NutriSystem and Jenny Craig, all of which have seen sales plunge.

And that’s not the only problem. Food manufacturers in the US and Europe market products under the Weight Watchers brand (paying Weight Watchers a license fee). But if something says “Weight Watchers”, it is no longer a “normal food” in the eyes of today’s consumers. And hence it’s unsurprising that sales of Weight Watchers branded foods are also falling. In the UK, for

example, sales were down 12% in 2014, following a 12% fall in 2013.

The whole weight management market has undergone a massive shift:

• Weight Watchers has to compete against free alternatives online.

• Thanks to modern work patterns and demands, fewer people are able to make the time commitment to turn up at a meeting each week.

• Weight management has switched from being something specific and separate to an everyday concern with “weight wellness” top-of-mind in people’s everyday eating choices.

• “Specially designed” weight management foods are falling out of favour.

Short of a massive shift in its strategy, it’s difficult to see how anything can save Weight Watchers from further declines.

Has tech-inspired shift pushed Weight Watchers into spiral of doom?

£28.1 £33.4 £27.7 £25.1 £26.1 £23.8

£18.1 £15.5

£9.2 £8 £9 £9

£12.4

£7.7

£6.9 £6.2

£6 £5.1 £4

£3.8 £3.1

£2.5

£2.5 £1.9

£1.5 £1.2 £1.2

£1.1

£0.7

£4.1 £3.5

£2

£52.1 £56.6

£56.6 £55.6 £56.1 £58.3

£50.6

£44.2

£46.1

£51.2 £55.7

£56.3 £58.8 £56,5

£47

£50.8

£9.4

£11.1 £7.7

£6.4

£13.6 £11

£6.7

£4.1

£4.2

£2

£1.4

£2 £2.4

£2.2

£2

£5.2

£5.3

£3.5

£12.2

£12.4 £11.9 £12.5

£11.7 £12.2

£11.4

£9.4

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013 2014

Soup Savoury pastries Cooking sauces Ice cream Frozen desserts Frozen ready meals Yoghurt Canned fish Canned pasta Canned beans Cakes Bread

£157.3

£174.2 £176.3

£170.2

£182.5 £187.4

£164.5

£144.4

CHART 1: WEIGHT WATCHERS SALES PLUNGE

CHART 1: WEIGHT WATCHERS SALES PLUNGE (£m)

(£m)

B R E A K F A S T C A S E S T U D Y

March 2015 7

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

E D I T O R I A L B R E A K F A S T C A S E S T U D Y

Western-style breakfast cereal has never been popular in Japan. In fact, many Japanese people saw breakfast cereal as a “lazy breakfast”, most suited to children, and the market was dominated by sugary brands targeting kids. Per capita expenditure on breakfast cereal was just JPY400 ($3.36/€2.97) a year. However, the advent of granola has drastically changed the perception of breakfast cereal, introduced Japanese consumers to a new type of breakfast and given birth to a new category which was worth JPY14.6 billion ($122 million/€110 million) in 2013 – a 200% increase over 2010. In 2014 the market is thought to have grown by a further 35%.

CEREAL SHOP KICKS OFF GRANOLA CRAZE

“Fruit granola” containing dried nuts and fruits has become a hit with Japanese women because it is rich in vitamins, minerals and antioxidants and is seen as therefore being good for skincare. With oats as its main ingredient, granola has gained a reputation for producing a long-lasting feeling of satiety and its high fibre content coupled with oats’ ability to moderate blood sugar has gained it a good image in connection with weight management and gut health – both key health interests for Japanese people.

The granola surge began in 2010 when a shop opened called GMT – Good Morning Tokyo. Japan’s

first specialty cereal shop, it enabled people to custom-make their own personal granolas. Sticking to simple and natural ingredients, avoiding additives and keeping sugar to the minimum – Canadian maple syrup was used as the main sweetener – it rapidly became a success.

Since then granola has steadily become commonplace in café chains, such as Starbucks and Tully’s Coffee, offering a “granola menu” for breakfast, with items such as:

• Homemade granola with fresh fruits

• Yogurt with granola topping with banana, kiwi and apple cinnamon

• Weekend breakfast: three small bowls offering yogurt, fruit and granola separately

In supermarket and convenience stores, granola brands, once rare, are now common. As Charts 1 and 2

show, in 2013 the Japanese granola market was worth JPY14.6 billion ($122 million/€110 million) (year-on-year increase of 55.2%). It is expected to continue with double-digit growth in 2014, according to the Japan Snack Foods Cereal Association. In 2013 the total cereal market size was worth JPY34 billion ($285 million/€252 million) and granola held an impressive 43% share of this market, compared to 19% back in 2010.

Much of the credit for the creation of the granola category can be laid at the door of Calbee, a company with a focus on snacking, marketing potato chips, vegetable chips and other snacks under a number of brands. Calbee’s Frugra brand has become the granola market leader, with an impressive 60% share. As Chart 3 shows, Frugra grew its sales by 260% between 2010 and 2014, to JPY12.5

In Japan, granola is a hot category

Once derided by Japanese consumers as a sugary food for kids, cereal – and specifically granola – has had a change of image, with sales growth in double digits since 2010. The about-face in consumer attitudes is largely down to the efforts of one granola company. By Noriko kajikawa of Tokyo-based Global Nutrition Group.

n  Good Morning Tokyo (GMT), the first cereal specialty shop, opened in 2010, kicking off the granola boom

Source: GNG Analysis GMT HP

Good Morning Tokyo (GMT), the first cereal specialty shop, opened in 2010, kicking off the granola boom.

March 20158

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

B R E A K F A S T C A S E S T U D Y

104 111 122 105 125 123 120 117 119 112

18 19 20

17 18 14 14 17 16 18

42 40 43

39

42 43 49 61 94

146 68 60 70

91 81 79 72

70

68

65

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Cornflake Brown rice flake Granola Other cereal

Shipment value basis

Japanese cereal market had been around 25 billion yen, but market increased rapidly to 34 billion yen in 2013 thanks to a big hit of granola. Granola shipment value exceeded cornflake market In 2013.

232 230255 252

267 259 255264

297

JPY340bn $2.84m €2.57m

00 million yen

CHART 1: GRANOLA’S SUCCESS HAS MADE IT THE DOMINANT PRODUCT IN THE JAPANESE CEREAL MARKET

Source:Japan Snack Foods Cereal Association

5310 4904 5349 4843 5201

6082 6942

8206

12259

18802

4200 4000 4300 3900 4200 4300 4900

6100

9400

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Amount Value

+149%

Amount: ton , Value: M\

+154%

+153%

+155%

Japanese Granola market grew rapidly to double between 2011-2013.

Shipment value basisCHART 2: JAPANESE GRANOLA SALES SOAR

JPY14.6bn$122m€110m

March 2015 9

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

B R E A K F A S T C A S E S T U D Y

bn ($103 m/€96 m). Frugra was launched back in 1991,

when it was sold under the brand “Fruit Granola”. However, with such a generic-sounding brand name it was hard to get recognition among consumers. Calbee at this time tried to expand granola’s share within the breakfast cereal market. But the Japanese cereal market had been flat, with no growth and sales of around JPY25 billion ($210 million/€190 million) for 10 years. It became clear to Calbee executives that playing by the rules of the breakfast cereal market wasn’t working so they decided to redefine the market.

In 2011, Calbee changed its strategy, beginning by changing their brand’s name from Fruit Granola to Frugra and launching a major marketing campaign. It set out to reposition granola as a different category from traditional cereal. With a focus on taste and health, Calbee promoted granola as a food to be consumed with yoghurt or fruit – in contrast to traditional cereal, which is consumed with milk.

SAMPLING CONVERTS CONSUMERS

A key part of the marketing effort was in-store sampling which Calbee found produced a high level of conversion to sales. The experience made Calbee confident that, in the company’s own words, “Frugra’s quality is good and once they eat Frugra, they love it. However, there are a lot of consumers who have never had Frugra. So sampling is the best promotional tool.”

In 2011, the company conducted sampling at 100 stores. In 2012, they increased that ten-fold, to 1,000 stores. In 2013, the sampling campaign was extended to 2,000 stores, reaching 400,000 people.

Calbee also formed a partnership with a home delivery service, which distributed samples of Frugra to its customers. Utilizing milk delivery store channels to distribute Frugra samples to home led to continuous purchase of Frugra.

B R E A K F A S T C A S E S T U D Y

3400 3800

6200

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2010 2011 2012 2013

Frugra

M\

CHART 3: CALBEE’S “FRUGRA” IS THE NO. 1 BRAND IN THE GRANOLA MARKET

Calbee oversaw the recipe book of “Frugra Recipe”(Everyday Frugra Kalbee’s Employees Recommend)”

In an effort to encourage consumers to use granola in new ways, not just in a bowl with milk, Calbee launched Frugra Recipes, a cookbook of granola recipes contributed by its employees.

JPY9.5bn$78m€73m

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10,000

11,000

12,000

34003800

6200

2010 2011 2012 2013 2014

JPY12.5bn$103m€96m

Frugra

March 201510

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

B R E A K F A S T C A S E S T U D Y

DIRECT-TO-CONSUMER SALES

Calbee started selling a premium granola, called My Granola Style, through the internet in September, 2013. It differed from Frugra in having a much higher fruit content and used only freeze-dried fruits. My Granola Style’s image has benefited from being chosen as a breakfast item at a number of upscale hotels, such as the New Otani Hotel, which serves “My Granola Style” in the breakfast buffet at Satsuki, the hotel’s restaurant.

NEW USERS, NEW USES

Although the main channel for Calbee is the mass market, it has also focused on foodservice, targeting family restaurants as well as convenience stores to get new users such as young men who are not the main consumers of granola.

In April 2014 Calbee opened a retail store called Grano-ya, selling granola based on Frugra. Variants on offer include Strawberry and Apple Luxury Mix, Coconut and Pine Mix, variants with acai, blueberry, chocolate and fruit toppings customised to the customer’s taste.

To help break the image of cereal as just a food to eat with milk Calbee launched a recipe book – called

Frugra Recipe – filled with recipes recommended by the company’s own employees, to give people ideas about how to eat Frugra at breakfast.

The reward for its efforts, as Chart 3 shows, was that by 2012 Frugra’s sales jumped to JPY6.2 billion ($52 million/€46 million) and in 2013 sales jumped again, to JPY8.4 billion ($70 million/€63 million). Twenty-five years after its launch, Frugra achieved the No.1 share not only in the granola market but also in the entire cereal market.

Calbee’s concept of shifting granola from “cereal market” to “breakfast market” yielded results. Consumers realized that a breakfast with granola could be more sophisticated. It’s also worth noting that Calbee didn’t position Frugra as an alternative to existing breakfast foods, notably bread, which many Japanese people consume at breakfast, but as an additional healthy item – an incremental purchase. This addressed the fact that many consumers resisted changing their breakfast routine.

Thanks to Calbee’s marketing strategy and the granola trend, the negative image of cereal such as “kid’s breakfast” has been erased and the company has helped to expand the understanding of granola as a healthy and satisfying food.

In April 2014 Calbee opened a retail store called Grano-ya, selling granola based on Frugra.

WHO IS THE GRANOLA CONSUMER?

According to consumer surveys conducted by J-marketing:

• 23.9% of Japanese consumers eat granola within a 3-month period. This skews strongly female, with the number rising to 32.8% of women but just 15% of men

• The biggest consumption is among middle-aged women whose children have left home – with a penetration of 38.2%.

When do they eat it? For breakfast (80.2%) and as a snack (36.4%).

At Calbee’s Grano-ya retail store consumers can mix and match toppings to create a cereal blend.

March 2015 11

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

B R E A K F A S T C A S E S T U D Y S N A C K I N G C A S E S T U D Y

One of the first fruits of the collaboration between Campbells and Plum is something that could well be unprecedented. There are tens, even hundreds, of examples of adult products extending into the kids market, but Plum is doing the opposite – a kids’ brand extending into adult territory – with the launch of a line of fruit and vegetable pouches for adults called Plum Vida.

Plum had been working on this project long before Campbell acquired the California-based startup. It’s a neat way for Campbells to capitalize on Plum’s natural and organic credentials in a way that it can’t with its traditional brands such as V8.

ADJUSTED FOR ADULTS

Now Plum Vida is being sold, initially at least, as part of the Made to Matter collection of natural and organic product at Target stores.

With the tagline “Inspire your senses. Fuel your life”, the Plum Vida line of three flavours offers puree blends of organic fruits and veggies in the portable-pouch format that Plum invented for its kids’ purees and that helped attract Campbell as a suitor in the first place. The suggested retail price is $1.99 (€1.76) per pouch or $6.99

(€6.19) for a four-pack.Plum Vida is tapping into the

adult-snacking phenomenon that now sees 90% of American adults regularly snacking, according to Neil Grimmer, co-founder, CEO and “Chief Dad” of Plum, compared with 60% in the late 1970s. Plum Vida is in large part a response to the many Plum customers over the years who were buying the squeezable pouches for their kids but also filching the products themselves—to eat as an on-the-go snack, as a lunchbag item, or on the way to or from a workout.

In developing Plum Vida, the company made a number of adjustments for the products that are aimed specifically at adults. For a start, they’re bigger than kids’ Plum, at 5oz versus 3oz (140g vs 85g). The puree is a bit thinner and smoother, more like a light smoothie. “They flow better and are more drinkable for adults,” Grimmer explained.

And the flavours are geared at adults seeking healthier eating choices: Cherry Berry Beet Ginger, Pear Kale Spinach Celery, and Pineapple Carrot Mint, versus

Plum taps into adult snacking trends

Creating mini, kid-friendly versions of foods and drinks for adults is a common route for new product developers. But in a reversal of this, Campbells-owned Plum Organic has taken the squeezy, puree-filled pouch format it helped pioneer for kids and made a version for grown-ups. By Dale Buss.

March 201512

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

S N A C K I N G C A S E S T U D Y

blander kids’ flavors such as Kale, Sweet Corn & Quinoa or Mango Carrot & Greek Yogurt.

Also, Grimmer noted, the graphics on the package of Vida present “a far more sophisticated look and feel” from the kid-oriented packs, with a silver-matte finish on top, an “elaborate geometric” design and “very ornamental and sophisticated” depictions of the fruits and vegetables contained inside the pouch.

Like Plum’s kids’ pouches, Plum Vida also for now will reside in Target’s shelf-stable beverage aisle and also in the applesauce section. For the long term, as Vida spreads to other retailers, Grimmer would like to find another place for all sorts of retailers to merchandise Plum’s fruit pouches for all ages. “It’s a new category that’s still trying to define the home that we’ll ultimately occupy,” he said.

Plum also is taking the trouble to tell in detail the back story of Vida, on its web site, something that only adults would care about. “The origin story is very important,” Grimmer said. “You’ll see the narrative of how Plum Vida created more of a rich texture around the brand, and about how the women of Plum came up with this idea for themselves – and now we’re sharing it with the rest of the country. We designed [Vida] for ourselves and we know that they’ll appeal to many other people as well.”

Why Target and only Target, for now? The exclusive distribution of Plum Vida stems from the relationship that Plum has had with Target for the last couple of years as part of the retailer’s Made to Matter platform with other natural and organic health-and-wellness CPG brands, such as Method cleaning supplies. Chiefs of about 16 such brands got together in California a couple of years ago “to talk about the future of the natural-organic industry and the mindset of that consumer,” Grimmer recalled.

“Out of that collaboration came Made to Matter, which is meant to celebrate and highlight the brands that have health and wellness at the core, and also social and environmental benefits,” he said. “Target was already carrying these brands, and many were also in the same shopping baskets – but the idea was to celebrate them.”

So under Made to Matter, Plum has just launched 14 items that are exclusive to Target, including the three Vida SKUs,” Grimmer said. “We also have a big presence in baby and toddler foods at Target and launched a line of frozen pizzas and mini-sandwiches for kids. It’s been fantastic. It’s really elevated our visibility.”

CAMPBELLS AND PLUM “LEVERAGING EACH OTHER’S STRENGTHS”

“It’s been a fantastic relationship” so far, said Grimmer, who stayed on. “We spent the first six months making

sure we got to know each other’s organizations before we did any kind of collaboration across departments. Now what we’ve really been focusing on is finding ways to leverage each other’s strengths.

For example, Plum “benefits greatly”, he said, from the well-established relationships that Campbell has with retailers and its broad capabilities in distribution infrastructure, production, warehousing, freight and logistics. Meanwhile, Plum is “a small, innovative challenger brand with speed-to-market, and a mission orientation, and a passionate culture that we’ve built. These are all infectious things that we hope to bring to the broader Campbell organization while making sure that the magic and mission of Plum stay as true as when we started the company.”

TABLE 1: PLUM VIDA NUTRITION SNAPSHOT

S T A R T - U P C A S E S T U D Y

March 2015 13

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

S T A R T - U P C A S E S T U D Y

Fruigees is a California-based startup that has created a great, previously unexplored product interpretation – essentially, better-for-you Jell-O – and combined it with the hottest form of packaging in the global healthful-foods market to produce a marketplace phenomenon that has rocketed from zero to about 1,200 US stores in just one year in business.

Cousins David Czinn and Josh Kahn used organic fruit and vegetable juices and tapioca to create a healthful new type of product with a consistency not previously seen in the American market, somewhere between conventional gelatin and pudding snacks.

When they moved Fruigees from pudding cups to resealable pouches and then showed their product at the

Natural Foods Expo West in Anaheim, California, early last year, two major supermarket retailers pounced on their offering, placed them in their stores and propelled the cousins quickly to the next level in the dynamic US better-for-you food and beverage market.

Their idea was interesting enough. But on another level, the fact that it took two Millennials who were totally inexperienced in food development and production to come up with the basic idea behind Fruigees, and then get it to market, is yet another condemnation of American Big Food companies that remain perpetually behind more innovative, fast-moving startups in creating the next big hit in the better-for-you market.

There’s no reason Kraft, ConAgra

or some other big producer of gelatins, puddings or other snacks couldn’t have figured out Fruigees’ basic proposition and almost without effort have beaten Czinn and Kahn to market. Many CPG giants’ representatives “came up to us and said, ‘We like what you’re doing,’” Czinn, CEO of Los Angeles-based Fruigees, told New Nutrition Business. “That is exciting for us. They were impressed by how young we were – I’m 27, and Josh is 31 – and by what we’ve been able to accomplish on a limited budget without having any experience in the food industry.”

Indeed, the pair of Millennial cousins made a rather unlikely pair to succeed with a healthy-snack startup. Kahn is a Los Angeles native and was working in the school system there. Czinn is a Cleveland native who was

Millennials spot potential of pouch for adult snacksYou might expect jelly in a squeezy pouch to be a hit with kids. But Fruigees fruit-and-vegetable-based puddings have found a receptive market among adults looking for convenient, tasty food on the go – and its inexperienced creators have beaten the big food companies in the innovation game. By Dale Buss.

NEW NUTRITION BUSINESS

NEW NUTRITION BUSINESS

March 201514

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

S T A R T - U P C A S E S T U D Y

working on Wall Street for a while and then, a couple of years ago, moved to Los Angeles for a post-doctorate program at the University of Southern California. Several members of their family are physicians, and Czinn considered entering medical school.

BABY FOOD POUCH TREND IS ABOUT CONVENIENCE

But what seized the interest of the cousins in turning toward healthful-food development was when their grandmother in Los Angeles became ill. At the same time, Czinn began to notice fellow students at USC, especially women, eating fruit puree out of squeezable pouches.

“It turned out what they were eating was baby food” produced in pouches by brands such as Plum Organics and Happy Family, Czinn said. “But there were only a few flavours that were really OK for adults; they were mainly eating it because of the convenience of the pouches. And Josh and I started to think, what if we made a product like this that tasted amazing and was in flavours that everyone wanted?”

The cousins began to tinker in their grandparents’ kitchen. Their initial idea centred around finding ways to take advantage of the pouch as a package but with a product that would be worthy for adults. They figured that the baby-food sector was already saturated with pouch-based purees. And actually, they turned away from any sort of basic fruit and vegetable purees because they saw other brands moving into that space with products aimed specifically at adults.

“But we saw that there weren’t any better-for-you Jell-Os or puddings on the market, really,” Czinn said. “We wanted to create a vegan, healthy-alternative Jell-O, because everyone loves that if you’re 80 years old or five years old.” So the cousins turned toward a formula relying on juices and tapioca starch, which gave the product a unique consistency, stiffer than a

puree but not exactly solid.“We wanted to create our own

niche,” Czinn said, “and this product had a cool, uniquely different consistency. Plus it was not only vegan but we made it organic and non-GMO with no artificial colors and no other chemicals.”

To test their concoctions, Czinn and Kahn would ply Fruigees at independent organic-food retailers in Southern California and at a farmer’s market in Los Angeles, handing out samples to passers-by and gleaning their reactions. From a season of that activity, they learned at least four valuable things. First, consumers indeed reacted to Fruigees in a way that made it clear to the cousins that they were on to a product hit.

CREATING A “FREE FROM” PRODUCT

Second, they needed to do a lot of work on the Fruigees formula, mainly to make it more of a “free-from” proposition. At first, Fruigees contained some dairy, added sugar and carrageenan. But those three ingredients emerged as problems when shoppers would question the cousins about what was in Fruigees. “Those were the things that turned people off the most, and that was good

feedback for us,” Kahn said. So they took out the dairy and added sugar and substituted carob-bean gum for carrageenan.

Third, they decided to focus on three flavours that easily emerged as the most popular. They called them Nothing Beats Cherry, a combination of cherry and beet juices; 24 Carrot Orange, which was orange and carrot juices; and Kalifornia Grape, a blend of kale and white and concord red grape juices. Other early blends were based on blueberry juice and pineapple juice, but Czinn and Kahn shelved those for a while in favour of the big three.

POUCH FORMAT DOUBLES SALES

Fourth, they were stunned by the increase in shopper receptiveness to pouch packaging compared with plastic pudding-type cups. When Fruigees switched to the former from the latter at the farmer’s market, “we doubled sales immediately”, Kahn said. “People understood the advantage of being in the pouch and that there was a convenience aspect to it. And they also would buy pouches so that their children could eat Fruigees.”

However, the high recognition

TABLE 1: KALEFORNIA GRAPE NUTRITION SNAPSHOT

March 2015 15

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

S T A R T - U P C A S E S T U D Y

factor for pouches also held its downside for Fruigees. “People automatically made the assumption that Fruigees was an applesauce or a puree when they saw them in the pouches,” Kahn explained. “So we had to do a lot of communications to let people know that what was inside was different from what was in any other package out there and that they needed to try it.” Such communications consisted not only of point-of-purchase messaging at the farmer’s market but also digital avenues including social media.

By early 2014, Fruigees was in shape for a larger market, the cousins decided. They had managed to come up with unique, good-tasting products that ticked off many of the boxes for better-for-you shoppers: just 70 to 80 calories per serving, just 12g to 14g of natural sugars and no sugar added, 100% of daily recommended vitamin C, 40% of vitamin A in the orange-carrot flavour, vegan, non-GMO.

At Expo West, two major retailers immediately recognized the potential for them in Fruigees: Meijer, which is a major operator of grocery supercenters in the Midwest, and Kroger, one of America’s largest supermarket operators. Both chains, like other mainstream retailers, have been making a concerted effort over the last few years to beef up their offerings of organic and other better-for-you foods – and all the better if they can actually offer such products first that consumers can’t yet find at Whole Foods Markets.

Meijer launched Fruigees in October, and Kroger began putting them on shelves of its Pacific Northwest stores in December. In the meantime, Fruigees also secured a place on the shelves of Target stores in California and Minnesota in March, with the chain’s plans to expand beyond those markets later in 2015. Shaw’s supermarkets is picking up the product line, and so are some other large retailers. And now, Fruigees also has pivoted to distribution discussions

with natural-foods chains including Whole Foods and Sprouts and has landed on the product rosters of big natural-foods brokers.

By the end of spring, Czinn projected, Fruigees will be available in 1,200 to 1,500 stores across much of the United States, and that store footprint will about double by the end of the year, nationwide.

But, Czinn insisted, “It’s still primarily the two of us hitting the streets” to market Fruigees. “No one else cares about your business the way you do. We’re making the calls and submitting the paperwork every day.”

“WHEN THEY TASTE IT, THEY GET IT”

Kahn and Czinn also recognize the importance of brand marketing. So far, they rely tremendously on sampling. The familiarity of the pouch format helps snare shoppers and get them interested in trying Fruigees. And then the uniqueness of the product takes over.

“Once they taste it, they get it,” Czinn said. Despite the fact that products in pouches have proliferated, and that most of them are similar to one another, Fruigees “is so different from any other products on the market. It’s not baby food or apple sauce. Some people, it reminds of the

fruit snacks they had growing up, or Jell-O. But it tastes even better and is healthier. The moment people try Fruigees, they notice the difference.”

The cousins have developed and plan to release an additional three to five flavours during the first half of 2015. But Czinn said that Fruigees won’t be satisfied just with extending the current product line. “We intend on expanding outside the pouch space, and also maybe creating other cool products that could go inside pouches as well,” Czinn said. “We have a lot of fun ideas. We’re actually looking to become a family brand, a household brand.”

So now the cousins are trying to manage the transition of Fruigees to a going concern and deal with the other aspects of expansion. They initially used personal savings to fund the company, and Czinn’s experience as a financier came in handy when they were able to garner angel-investor money for their ramp-up. But he insisted that “finding money is the easy part for us. We have e-mails every day from venture capitalists and angels, because they recognize how cool and different our product is from anything else on the market.

“People love what we’re doing. We’ve managed to create a fun family food and snack.”

NEW NUTRITION BUSINESS

€3.44($3.89)/kg

€15.54($17.57)/L

€17.78($20.1)/L

€20.46($23.13)/L

0

5

10

15

20

25

Bolthouse Farms Green Goodness ($3.68/946ml bottle)

Mama Chia ($1.74/99g pack) Fruigees ($1.99/99g pack) Happy Squeeze Super ($2.29/99g pack)

CHART 1: FRUIGEES PRICE COMPARISON CHART 1: FRUIGEES PRICE COMPARISON

March 201516

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

S T R AT E G Y C A S E S T U DY

To discover what’s going to be the next food or food ingredient to profit from consumers’ desire for foods that are “naturally functional”, it’s a good idea to understand how the current naturally functional superstars reached that position. And one of the most useful cases to study is blueberries – both as a snacking fruit and as a health halo ingredient.

Back in the 1990s blueberries were hardly known at all in most Western countries, with the exception of Scandinavia and parts of Eastern Europe and some north-eastern states of the US.

“In the UK, for example, as recently as 2005 blueberries were considered exotic, with only 12.5% of people ever buying them and, then, only 5.3 times per year for those

who bought,” explains Professor David Hughes, Emeritus Professor of Food Marketing at Imperial College London, a director one of Europe’s biggest berry companies and a globally-recognised expert in marketing commodity foods. “By 2014, 38% of shoppers were buying and an average 9.6 times per year. UK blueberry sales – measured both in volume and value – rocketed from only 1,000 tonnes in 2004 to 23,000+ tonnes in 2014.”

In the US it’s a similar story, with sales rising from 518 tonnes in 2002 to 1776 tonnes in 2011.

This growth has been achieved even though blueberries are, like almost all successful healthy foods, a high-value, low-volume business (see Charts 1 and 2).

Although retailers often assert that price matters most to consumers, the success of blueberries shows that is not true for all categories. Even in an economic downturn people have been willing to pay a super-premium price – in fact the highest price for any fruit and a healthy 90% premium over the next-highest-priced category of fruits.

“Blueberries have proved to be recession-proof,” explains Professor Hughes. “Between 2008 and 2014, blueberry sales volume increased at 15% compound annual rate at retail.”

The reason is that what people are willing to pay for any product is not merely a question of price but a question of perceived value – and a product that delivers value in

How to spot the next “naturally functional” success

Not every cool and trendy new ingredient is going to become a superstar. But studying just what factors propelled berries – and especially blueberries – to superfood status could help identify future winners. By juliaN MelleNtiN.

Chart X: Recession-proof blueberries in America: premium price but growing consumption

$13.6/kg

$2.95/kg

0

2

4

6

8

10

12

14

16

Blueberries Royal Gala Apples

518 tonnes

1776 tonnes

0 20 40 60 80

100 120 140 160 180 200

2002 2011

Kg of fresh blueberries consumed in the US

Source : USDA .and industry

Measured on a price per kilo basis fresh blueberries are super-premium priced

CHART 1 AND 2: RECESSION-PROOF BLUEBERRIES IN AMERICA – PREMIUM PRICE BUT GROWING CONSUMPTION

2014

March 2015 17

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

S T R AT E G Y C A S E S T U DY

many ways. Blueberries are a super-premium fruit with the price justified in the consumers’ mind by the steady expansion of their health halo and ongoing positive media attention.

Blueberries are not only sold as a fresh fruit, but increasingly they are used as an ingredient that confers a health halo on any yoghurt, drink, cookie or snack that includes them in the recipe. Around the world, the number of launches of foods and beverages featuring blueberries as a signature ingredient is climbing steadily (see Charts 3 and 4), with launches up by 120% in the US between 2010 and 2014 and by an even more impressive 250% in Europe in the same period.

So what are the elements that have helped propel this naturally functional success story?

1. Some nutritional properties, some science. The blueberry is one of the most-researched fruit, with over 100 published studies. Its high-antioxidant health benefit was originally based on US Department of Agriculture work on ORAC (the scale that measures fruits’ antioxidant potential). A number of purported benefits have been extrapolated from blueberries’ high antioxidant status – ranging from eye health, to brain health and heart – but we are not aware of any substantiating published human clinical studies. It’s important to note that the absence of any approved health claims has been no barrier to blueberries’ success either as an ingredient or as a fresh fruit.

2. Marketing muscle and/or media appeal. It was the discovery of their potent antioxidant activity that put blueberries in the headlines in the late 1990s. Because blueberries’ health benefits are intrinsic, they fit perfectly with the media’s love of stories about

naturally healthy foods. But that health halo has arisen by accident. The blueberry industry cannot take any credit for the promotion of blueberries’ health benefits. The development in the West came as a result of journalists picking up on the news emerging from the science and this attention has maintained a momentum all of its own from a media eager for positive stories about appealing, naturally nutritious foods.

3. Convenience and snackification. Blueberries are one of nature’s instant snack-foods. They are easy to eat, require no peeling and the consumer is left with no core, peel or waste and as a result a high level of blueberry consumption now is out-of-hand snacking. They are easy to add to other foods (as a topping for breakfast cereal, for example). Moreover blueberries have long been available as frozen

6 18

6 16

26 17 19

28 26 25 27 18

26 34

42

3

14

3

7

10 18 13

25 15 21 17

26 23

49 52

4

4

2

5

8 6 11

10 16 10 16 19 16

48

51

2 3

3 3 2

4 4 1

3 2 2

6

7

1

1

1

6

9 8 13

11 13 14

16 15 9

22

27

0

20

40

60

80

100

120

140

160

180

200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Breakfast Cereals Beverages

Dairy

Snacks

Bakery

Source: GNPD Mintel

Chart X: In the US the number of food and beverage products launched with blueberries as a signature ingredient has soared.

CHART 4: IN THE US THE NUMBER OF FOOD AND BEVERAGE PRODUCTS LAUNCHED WITH BLUEBERRIES AS A SIGNATURE INGREDIENT HAS SOARED

Chart X: In Europe the number of food and beverage products launched with blueberries as a signature ingredient has soared.

Source: GNPD Mintel

0

50

100

150

200

250

300

350

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Breakfast Cereals Beverages Dairy Snacks Bakery

CHART 3: IN EUROPE THE NUMBER OF FOOD AND BEVERAGE PRODUCTS LAUNCHED WITH BLUEBERRIES AS A SIGNATURE INGREDIENT HAS SOARED

March 201518

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

S T R AT E G Y C A S E S T U DY

and other forms and their use as an ingredient by the food and beverage industry – in snack bars, muffins, yoghurts and desserts – has been a key driver of growth for blueberries over the last 10 years.

4. Supply chain. A very solid supply chain is in place to deliver year-round supply and steadily increase available volumes.

5. Connecting to the main consumer trends. Apart from being Naturally Functional blueberries also connect clearly to:

Key Trend 2: SnackificationKey Trend 3: Weight Wellness Key Trend 7: Free-from Key Trend 8: Sugar

BLUEBERRIES OFFER STRATEGY LESSONS FOR ALL

While naturally functional is what people want, it would be a mistake to think that every natural compound is going to be successful or that just by adding the latest cool and

trendy ingredient to your product you are going to be able to generate impressive sales growth on the back of a naturally functional image.

To formulate a robust strategy that leverages a naturally functional ingredient, you must first use the check-list of five points above to make a picture of the ingredient

you are planning to use. Whatever the ingredient is – Greek yoghurt, matcha tea, fish oil, seaweed, chlorella, insects or whatever – the more strongly it measures up on this check-list, the more likely it is that it will actually help you grow sales.

0

10

20

30

40

50

60

70

80

90

100

110

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Beverages

Dairy

Bakery

Snacks

Breakfast Cereals

Chart X: Blueberry is a global trend. In Japan also the number of food and beverage products launched with blueberries as a signature ingredient has grown. CHART 6: BLUEBERRY IS A GLOBAL TREND. IN JAPAN ALSO THE NUMBER OF FOOD AND BEVERAGE PRODUCTS LAUNCHED WITH BLUEBERRIES AS A SIGNATURE INGREDIENT HAS GROWN

0

5000

10000

15000

20000

25000

Source: Kantar Worldpanel

CHART 5: UK RETAIL SALES GROWTH FOR BLUEBERRIES, 2004-2014

2004-20052004-2014

March 2015 19

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

S T R AT E G Y C A S E S T U DY B E V E R AG E C A S E S T U DY

After the proliferation of new better-for-you drinks over the last decade, one of the most difficult things to do in the beverage industry these days is somehow to create a new niche in healthful consumption and then fill it successfully.

But that’s exactly what Bai Brands seems to be doing with its line of low-calorie waters enhanced with antioxidant-rich coffee fruit extracts, sweetened with erythritol and stevia, rendered in offbeat flavours, packaged with a clean presentation and distributed by one of America’s biggest bottling companies.

In fact, Princeton, New Jersey-based Bai is on its way to more than $100 million (€88 million) in sales this year, more than double last year’s $50 million (€44 million), which would comprise a significant presence for a company that sold its first case of drinks only about five years ago.

“Where we feel we are differentiating has been in filling a big gap in the beverage industry: There’s a lot of product that tastes really good, but you have a moment of regret afterward because of the sugar content or it’s artificially sweetened, and on the other side are people who want to drink healthy but are sacrificing taste to get that clean label,” said Michael Simon, chief marketing officer for Bai since late last year, after he left the same position at fast-casual restaurant chain Panera Bread.

“Nobody had solved that intersection right at the crosshairs of where consumers are, no longer

wanting to compromise. They want it all. So Bai is at that intersection of great taste and feeling good about what you drink.

“The world is waiting for an iconic, new-age beverage that has the same power and relevance that Coke and Pepsi did 50 years ago. The market is ripe for the taking, and we have the proposition and brand that is right where consumers are right now.”

Simon wasn’t afraid to call out several other contenders for that space whose fortunes have fallen off lately after strong starts, including Vitaminwater, whose parent Glaceau was bought by Coca-Cola for $4 billion, and Propel, owned by PepsiCo.

Bai also has recognized that, in a segment that heavily targets Millennial consumers, brand perception plays a huge role. In that regard, Simon noted, “the relevance of the Cokes and Pepsis of the world is declining, and that volume isn’t going away but is moving to healthier options.” He cited a “great line that my old CEO at Panera said, which is,

‘The future is here, it’s just unequally distributed’.”

In the case of Bai, a primary aspect of its positioning is a “sustainability” play based on the fact that its signature ingredient is antioxidant-rich coffee fruit, the husks of the coffee bean, that are imported from the impoverished coffee-growing area of Aceh in Southeast Asia.

So at its core, he said, the Bai brand “isn’t really connected to any individual product – it’s connected to an idea, of flavour you can trust. So you can have confidence that when you buy any variety of Bai, it’s going to taste great and you can feel good about drinking it.”

That is why Bai – a Chinese word that means “pure” – already has extended its brand to a lightly carbonated new Bai Bubbles sparkling-water line and why forays into other segments are likely as well. “We believe we can extend into many other parts of the beverage industry,” Simon said. “There are many opportunities down the road.”

Bai Brands Founder Ben Weiss

Based on the high-antioxidant waste from coffee processing, Bai believes its low-calorie drinks offer the right combination of taste and feel-good factor – thanks to its zero-sugar formulation – to become the Coca-Cola or Pepsi for the Millennial generation. By Dale Buss.

Coffee fruit waste powers “new age” low-cal drink

March 201520

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

B E V E R AG E C A S E S T U DY

and his father developed Bai in their basement in New Jersey and hawked the drink out of the trunk of a car beginning in 2009. The original line is called Bai 5 because it contains only five calories per serving. “There seemed to be an opportunity in the marketplace for them with natural sweeteners because no one had solved the stevia taste issue, and there was the additional benefit of antioxidants,” said Simon, who previously was the younger Weiss’s superior in the marketing department at Godiva, the fine-confectionery brand that is owned by Campbell Soup.

HARNESSING WASTE COFFEE FRUIT

Weiss figured out that he could build a beverage brand around extract of coffee fruit, the outer shell of the coffee bean that typically is just a trash by product of the coffee-making process. He turned it into a powder that could infuse a beverage and, in the process of harnessing coffee fruit, created powerful second and third “bottom lines” for Bai: Purchasing the previously rotting coffee fruit created another revenue stream for poor farmers in the region, and it also mitigated the problem of rotting

coffee fruit leaching caffeine and other pollutants into local streams.

“So the product filled a need that wasn’t being completely satisfied in the marketplace, and having a company that at its DNA is being authentic and human and caring, with that social-responsibility piece, was a way to differentiate,” Simon explained.

Another aspect of this positioning was to come up with unusual flavour names that would remind Bai drinkers of the connection to coffee fruit. So each variety of Bai5 bears the name of a global coffee-growing region as well as the designation of a fruit, such as Brasilia Blueberry, Malawi Mango and Molokai Coconut.

“We’ve been able to use those names to walk the fine line of being interesting and exotic but also accessible in our flavours,” Simon said. “Using the names of the coffee-producing regions have been the most successful marketing that we’ve done. The packaging shouts fruits, and it’s clean. And we’ve been able to deliver flavours, and a variety of flavours, that have a little bit of an exotic feel but not so esoteric that it will only reach a small portion of the marketplace.”

The No. 1-selling flavour of Bai5 has been Molokai Coconut, perhaps

partly out of an association in consumers’ minds with hot-selling coconut water, though there is no coconut water in the drink. Brasilia Blueberry is another strong seller. So is Tanzania Lemonade Tea, which Simon called “a more exotic version of an Arnold Palmer”. Although, he said, “Really with the whole line there’s not a lot of difference [in sales volume] from best to worst sellers.”

Online, Bai is available for about $24 (€21) for a 12-pack of 18oz bottles, each of which is good for two servings, or $1.99 (€1.54) apiece,

TABLE 1: BAI5 MOLOKAI COCONUT NUTRITION SNAPSHOT

£0.95($1.46)/L £1.30($2)/L

£2.03($3.13)/L

£5.61($8.66)/L

0

1

2

3

4

5

6

7

8

9

10

Smartwater (£0.57/600ml bottle) Talking Rain Sparkling Ice ($1/500ml bottle)

Bai ($1.66/530ml bottle) Vitacoco (£1.85/330ml bottle)

CHART 1: BAI PRICE COMPARISON CHART 1: BAI PRICE COMPARISON

B E V E R AG E C A S E S T U DY

March 2015 21

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

B E V E R AG E C A S E S T U DY

placing it squarely in the middle range of pricing for individual servings of better-for-you beverages of many sorts. Simon said that another part of the appeal of Bai is that it is purchased not only for traditional refreshment but also for “hydration, for meal accompaniment and also as a mix for cocktails”. On its web site, in fact, Bai Brands offers alcoholic and non-alcoholic recipes using Bai.

FOCUS ON DISTRIBUTION PAYS OFF

More than anything else, the initial growth of Bai was a distribution play. In the early years, Weiss recently told Beverage Daily, there was a focus on “distribution at the expense of brand equity, which is a very tough thing to do in the beverage business because it’s very crowded”. But the practice, Weiss said, “allowed us to be very disciplined. You want to scream from the rooftops about your brand.”

Then, last year, Weiss managed to get Bai absorbed into the robust distribution network of Dr Pepper Snapple, which got the brand into many supermarket chains and other outlets beyond its home region of the US Northeast. Soon, Dr Pepper

Snapple was rolling out Bai nationally and securing key shelf space for the brand in major new outlets including Target and Safeway.

Weiss also gave the distribution deal significant credit for the initial growth of Bai Bubbles, the lightly carbonated version that Bai Brands introduced last year. The recent success of Sparkling Ice, introduced by the startup company Talking Rain, had jump-started the sparkling-water category, and lately nearly every major beverage player has entered the segment as well. Bai Bubbles comes in 11.5oz slim cans and is available in another lineup of flavours based on coffee-growing regions, including Waikiki Coconut and Peru Pineapple.

MEDIA DEMONISING SUGAR “LIKE TOBACCO”

Bai Brands sales were about $5 million (€4.4 million) in 2012, rose to $17 million (€15 million) in 2013 and last year burgeoned to $50 million (€44 million) as the company took advantage of the distribution agreement and also the marketplace opportunity.

“Enhanced waters are declining,

except for Smartwater and some of the smaller players,” Simon said. “We’re taking [sales] from the giants in that segment and from some of the smaller brands that are starting to peter out a little bit. And given trends in the carbonated soft-drink category, obviously there are people moving over to Bai from soda, and juice too. The media is really starting to demonize both sugar and artificial sweeteners almost as if they are tobacco.

“Also, premium juices overall are leveling off, and if you look at categories like orange juice, you see some declines there. People who are

TABLE 2: BAI5 BOLIVIA BLACK CHERRY NUTRITION SNAPSHOT

Outdoor billboard in NY

Floor advertising and outdoor billboard in NY

March 201522

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

B E V E R AG E C A S E S T U DY

drinking what they thought were healthy beverages are now starting to look at labels and sugar content.”

Simon perceives himself as the key to the last major task in front of Bai as Weiss builds the business: branding and marketing. As a long-time associate of Weiss, Simon came to Bai because the company “felt like it has the opportunity to grow into something meaningful, and it finally has gotten to the level where I felt the foundation had been built and they really needed marketing expertise to take it to the next level.”

From the beginning, Simon said, Bai was built through grass-roots marketing using social media and in-store sampling. That has helped the brand build a strong foundation in the minds of Millennial consumers with “a personality and tonality that feels as if it shares their interests and values and that it’s a brand for them”.

Another aspect of the brand’s equity, he said, is that so far Bai

hasn’t hitched its marketing to any cultural or entertainment celebrity, unlike many other startup better-for-you food-and-beverage brands. Vitaminwater in its early going, for instance, got an endorsement from rapper 50 Cent. “The Millennial consumer is looking for brands that are honest, transparent and authentic,” Simon said, and “giving money to co-opt celebrities for advertising” doesn’t fit that mold.

SHARPER POSITIONING

Simon said that his key initial task is to “bring more granularity to who our core target is, their attitudes and demographics and behavior. From that we will create a sharper positioning that will fuel our future communications efforts and bring more discipline and focus without losing our entrepreneurial zeal.”

Now, Simon is ready to lift Bai Brands’ marketing outlays from what

he called “steady-state kind of levels” to use “a significant uptick in investing in the brand.” This includes “bringing the brand to life in the store through promotional calendars and giving distributors tools to create points of interruption” in the store. With Bai’s strong growth and the availability now of a companion product line to Bai5 in Bai Bubbles, Simon said, “We’ve earned more shelf space.”

With consumers, Bai already has used a New York City billboard campaign to raise awareness. He’s also looking at developing short films for branded content on YouTube, for instance.

“We want to be creative and innovative using media that Millennial consumers use every day but breaking through,” he said. “We want to be audacious with intent. We want to break through not for the sake of breaking through but to connect it with the bigger idea of what the Bai brand stands for.”

Sampling at “The New Rochelle Celebrity Softball Fundrasier”

Sampling at a supermarket

Sampling and sponsor during events on the National Bike Month

BAI HAS BEEN BUILT ON GRASS ROOTS MARKETING, INCLUDING SAMPLING

March 2015 23

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

B E V E R AG E C A S E S T U DY E N E R G Y D R I N K S C A S E S T U D Y

A UK-based entrepreneur has combined the hydration appeal of coconut water with the popular appetite for enhanced protein to create CocoPro, which is being billed as “the world’s first high-protein coconut water”.

CocoPro combines 20g of whey protein with the natural nutritional properties of coconut water to deliver muscle recovery and hydration in a post-workout drink. With no added sugar – it’s sweetened with stevia – and free of fat and cholesterol, CocoPro is low in carbohydrates and contains just 135 calories.

Initial flavours were Coconut and Coconut with Pineapple. Retail prices out of the gate were £2.75 ($4.25/€3.75) for a 330ml serving.

“I’ve played pro sports for 11 years and have had a lot of recovery drinks in my time,” said Rory Lawson, operations director for CocoPro and a former Scottish rugby international.

“I’m very aware of the importance of ingredients, and I wouldn’t want to sell something that I wouldn’t drink. The reaction we’ve had so far is that people have never tasted anything like it.”

Lawson described the creation of CocoPro as the sensible result of “people mixing protein powder with coconut water to create what they thought would be the perfect recovery

drink. That’s what we have produced in our product, a recovery beverage and a snack, taking advantage of two of the biggest-trending types of products.”

Still, he said, formulating a commercially viable drink combining coconut water and protein powder wasn’t simple because the two types of ingredients typically end up

Protein and coconut water pairing for perfect sports drinkCocoPro combines muscle benefits of protein and hydration benefits of coconut water to create what could be the perfect recovery drink. This “elite level” drink comes with premium ingredients and a premium price, and the reassurance that it won’t cause sportspeople drinking it to fail drugs tests. By Dale Buss.

EXAMPLES OF COCOPRO PROMOTION

NEW NUTRITION BUSINESS

“We are delighted to announce that CocoPro have become the Official Recovery Drink for the “The Major Series””

“We are delighted to announce that CocoPro have become the Official Recovery Drink for the “The Major Series””

NEW NUTRITION BUSINESS

“The Awesome Spencer Matthews getting his UltimateRecovery at Equinox London”

Online competition to win a Reebook Crossfit outfit and a month supply of CocoPro.

“The Awesome Spencer Matthews getting his Ultimate Recovery at Equinox London”

Online competition to win a Reebook Crossfit outfit and a month supply of CocoPro.

March 201524

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

E N E R G Y D R I N K S C A S E S T U D Y

separating. CocoPro also wanted to use high-quality ingredients and no added sugar.

“It’s not that difficult to get coconut water from concentrate and whey protein from concentrate and chuck in a heap of sugar and get something that tastes relatively good,” Lawson said. “And we could have gone a very different route. But ultimately we wanted the product to be natural, using the highest-quality ingredients.”

ANTI-DOPING REASSURANCE

Another important aspect of the formula, Lawson said, was to make it certifiable by anti-doping standards so that athletes would embrace CocoPro without worrying about the possibility that some ingredient in the drink would trip a positive test. So the company has obtained the Informed-Sport quality-assurance certification, which makes it safe for athletes and professional sports teams.

“There are a number of factories around the world that carry the risk of cross-contamination” of products with residue of drugs or other substances that would set off doping alarms, Lawson said. The Informed-Sport imprimatur provides “peace of mind for professional athletes and gives us true credibility that will help us on the elite-sports level”.

ELITE LEVEL PRODUCT

Premium ingredients, Lawson explained, earned premium retail prices for CocoPro. Typically, coconut waters in the UK market are priced at around £1.50 to £2.00 ($2.32 to $3.09/€2.05 to €2.70), but “high-grade” coconut waters and ready-to-drink protein shakes bring prices in the £2.50 to £3.50 ($3.87 to $5.41/€3.41 to €4.77) range. “So we’re pretty much in line with that,” he said. “Inevitably, CocoPro is going to be more expensive than regular coconut water because we have more ingredients, and it costs

a bit more to make. It’s an elite-level product – look at the ingredients and it’s about as elite as it gets.”

Initial distribution targets for CocoPro are in the UK, having launched in major retailers including Ocado, and Holland & Barrett. The startup also is negotiating with GNC, the US-based natural-products retail chain. In the meantime, CocoPro also has struck distribution deals with major gyms in London, where it has been conducting frequent sampling exercises.

“Sampling is going to be a huge part of our marketing going forward,” Lawson said. “We’re really excited about that because when people take the time to understand the quality

of the ingredients, and it’s there in front of them, they almost without exception enjoy the product.”

With early indications of success in the United Kingdom, Lawson said, CocoPro is expanding its distribution ambitions week by week. He said that the company has “started discussions for expansion in different regions” including the rest of Europe, Australia and New Zealand, and the Middle East.

“And the United States is a potentially huge market,” Lawson said. “Normally, it is the leader when it comes to innovation and new products. So we’re fully aware of the importance of that market.”

NEW NUTRITION BUSINESS

£5.61($8.66/€7.65)/L £6.47($9.98/€8.82)/L

£7.96($12.28/€10.85)/L £8.33($12.86/€11.35)/L

0

1

2

3

4

5

6

7

8

9

Vitacoco (£1.85/330ml pack) Coco Protein (£2.30/355ml pack)

Maxi Protein Milk (£1.99/250ml pack)

CocoPro (£2.75/330ml pack)

CHART 1: COCOPRO IS A PREMIUM-PRICED DRINK CHART 1: COCOPRO IS A PREMIUM-PRICED DRINK

TABLE 1: COCOPRO NUTRITION SNAPSHOT

P R O B I O T I C S C A S E S T U D Y

March 2015 25

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

P R O B I O T I C S C A S E S T U D Y

Since 2010, New Nutrition Business has more than once speculated (November 2010, June 2012) that probiotic juices could be on the verge of creating a new global category, potentially spearheaded by international brand names and following a path similar to dairy-based probiotics. The strategies of two of the most experienced and technically best-equipped players in this market – Valio in Finland and Danone’s ProViva brand in Sweden – are very different, as are the barriers to internationalisation in each case. But if developments to date have been evolutionary rather than revolutionary, that has more to do with commercial and even political factors than any flaw in the underlying logic behind probiotic juice.

Valio’s Gefilus probiotic brand has continued to build on its success in the Finnish market. The dairy co-operative’s experience in probiotics has both breadth and depth, dating back to 1990, when it first incorporated Lactobacillus GG (LGG) into its dairy products. Seven years later, it applied the technology to a juice drink under the Gefilus brand. Since then, it has introduced seven different juice variants, two flavours of fruit shot, two types of fruit ‘soup’ (with larger fruit pieces) and four drinks which blend juice with around 20% milk.

Two of those milk-juice flavours were launched in 2014, backed up by TV advertising.

Export manager for technology sales Kalle Leporanta explains:

“Valio’s Gefilus was the first probiotic in Europe, and the only one that has been expanded under the same brand from dairy to juice drinks and also food supplements.”

For the last decade, the use of the Gefilus brand in food supplements has been licensed to another company, Oriola.

Of the rest of the non-dairy Gefilus range, Leporanta says: “Certainly, the juice drinks are the core, with the other products being more complementary, and volumes not that high.”

That said, the encouraging consumer response to these line extensions illustrates the power of the Gefilus brand as well as the broader importance – and stubbornness – of positive brand perceptions.

“We’ve launched non-probiotic

versions of these types of product elsewhere under different brands,” says Leporanta. “Since we included them under the Gefilus brand, consumers have appeared more willing to try them.”

Sales of its probiotic know-how have also continued outside Valio’s ‘home’ territories of Finland, Sweden, the Baltic States and Russia. Last year, Norway’s Tine dairy for the first time applied LGG to its Biola range of juices, having previously made the same move with milk-based products.

Russia remains a huge market for both Valio and Danone, despite the food import ban (see box on page 27). So far, exports of Valio’s juice, including Gefilus, and of its technology licensing have not been affected. In theory, this should favour

Probiotic pioneer pushes juice expansion

Everything from Russian-EU geopolitics to poorly-managed joint ventures appears to be holding up international growth in probiotic juices. Finland’s Valio updates Paul GaNDer on current challenges and opportunities.

NEW NUTRITION BUSINESS

Last year, Norway’s Tine dairy for the first time applied LGG to its Biola range of juices, having previously made the same move with milk-based products.

March 201526

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

P R O B I O T I C S C A S E S T U D Y

probiotic juice as opposed to dairy products. In practice, of course, this is little compensation for such large-scale damage to the business and its sales as a whole.

Exceptionally, Valio opted to sell its LGG technology to potential competitors in Russia, even though Valio has its own production there. “In Russia, you can make certain kinds of health claim,” Leporanta explains. “It’s a big market, and Danone is pretty strong there. We actually sell a lot of our bacteria to Russia.”

Valio sees even more significant international opportunities among beverage (rather than dairy) manufacturers wanting to add premium extensions or ranges to an existing juice portfolio.

“In the UK or France, for instance, there would be nothing to stop a juice operation which wanted to bring something new to the market from doing this with probiotics,” says Leporanta.

Over recent years, in countries such as Finland and Sweden, probiotic juices and juice drinks have settled at a value around 30% the

NEW NUTRITION BUSINESS

Valio Gefilus Mehu 2013

n  “The best thing about the apple is the force of gravity”

n  NEW Valio Gefilus apple juice, cloudy apple

VALIO GEFILUS MEHU 2013

• “The best thing about the apple is the force of gravity”

• NEW Valio Gefilus apple juice, cloudy apple

NEW NUTRITION BUSINESS

Valio Gefilus TV ad

n  Valio Gefilus juice - with vitamins and LGG that helps your immunity at any time of the year and anywhere. Your immunity is very important.

n  Remember Gefilus Juice, your daily dose of vitality

https://www.youtube.com/watch?v=FScSpZOXsmM&feature=youtu.be&a

VALIO GEFILUS TV AD

• Valio Gefilus juice - with vitamins and LGG that helps your immunity at any time of the year and anywhere. Your immunity is very important.

• Remember Gefilus Juice, your daily dose of vitality

March 2015 27

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

P R O B I O T I C S C A S E S T U D Y

size of the probiotic dairy market. Theoretically, a similar scale could be achieved elsewhere, Valio argues.

“In markets where there is a good chill chain, and where consumers are used to drinking chilled rather than ambient juice, we think this could be a strong opportunity,” Leporanta says. “In many regions outside Europe there are substantial and developing markets in probiotics more broadly.”

Without being more specific, Valio says it is currently in negotiations with juice manufacturers in Europe, the Middle East and Asia.

Australia and New Zealand are a part of the same opportunity, especially since Heinz launched its Golden Circle Healthy Life range in Australia in 2012. Like Danone’s ProViva brand, the Heinz probiotic is based on a strain of bacteria from Probi in Sweden.

“New legislation in Australia and New Zealand makes it possible to apply for health claims,” says Leporanta. “And in India, too, there are types of health claim which are now better-defined.”

In Europe, the health claims situation remains as fraught and frustrating as ever for manufacturers of products containing probiotics.

P R O B I O T I C S C A S E S T U D Y

RUSSIA’S TRADE EMBARGO HITS VALIO HARD

Since August 2014, Russia has maintained an embargo on imports of fruit, vegetables, meat, milk and dairy products from those countries (including EU members and the USA) which enacted sanctions against Russia because of the crisis in Ukraine.

As an export-minded dairy business sitting on St Petersburg’s doorstep, Finland’s Valio has been hit hard by the ban, estimating that it has lost around 20% of its turnover as a result. The group’s 2013 turnover was slightly over €2 billion.

Says export manager for technology sales Kalle Leporanta: “It’s had huge consequences. We were doing pretty well in Russia, because we got a decent price. But since November, a lot of our people have had to leave the company.”

Media reports said that Valio had reduced its skilled workforce in both Russia and Finland. It also announced plans to produce more dairy goods from its Russian factories.

Like other multinationals with extensive manufacturing inside Russia, Danone appears to have been hit less hard by the embargo. Of course, if relations with Russia worsen, other forms of sanction could be taken against those manufacturing operations, too.

NEW NUTRITION BUSINESS

Valio Gefilus Mehu TV ad 2012

n  With vitamin C and LGG VALIO GEFILUS MEHU TV AD 2011

• With vitamin C and LGG

NEW NUTRITION BUSINESS

Valio Gefilus Mehu TV ad 2011

n  Gefilus LGG advert with mother explaining the benefits of LGG to her daughter

https://www.youtube.com/watch?v=dNM2VM3pmvU#t=17

VALIO GEFILUS MEHU TV AD 2011

Gefilus LGG advert with mother explaining the benefits of LGG to her daughter

https://www.youtube.com/watch?v=dNM2VM3pmvU#t=17

March 201528

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

P R O B I O T I C S C A S E S T U D Y

Valio relies on approved claims for vitamins under the Nutrition and Health Claims Regulation (NHCR) in order to make its immunity claims for Gefilus juice and dairy products inside the EU.

LGG can be labelled as ‘lactic acid bacteria’, but Valio works on the basis that the term ‘probiotic’ cannot be used inside the EU. In any case, says Leporanta, the term is not well understood by Finnish consumers.

“Strangely enough, the Swiss authorities, which follow the EU Regulation quite closely, have reaffirmed a health claim that LGG ‘contributes to normal digestion’,” he points out. “Clearly, they apply their criteria rather differently to the European Food Safety Authority (EFSA).”

In February, members of the Global Alliance for Probiotics (GAP), including Valio, Danone and Probi, the International Probiotics Association (IPA) and the Yoghurt and Live Fermented Milks Association (YLFA) announced that they were joining forces under the banner of IPA Europe.

IPA Europe was formed in time to issue a response to EFSA’s new guidance on gut and immune health, welcoming some new recommendations but also regretting that “uncertainties remain” when it comes to improving dossier submissions. At the time, Valio said it was considering joining the new association.

Leporanta adds: “We have submitted claims [relating to LGG] to EFSA many times, and we are trying again.”

Meanwhile, Valio emphasises how well-researched LGG is. In September 2014, it counted 797 published scientific papers making mention of LGG. The second highest total was for Yakult’s L. casei Shirota bacteria, mentioned in 180 papers.

Danone’s current plans for probiotic juice are slightly more

opaque. Back in 2010, the multinational’s move on the ProViva brand in Europe (as well as Next Foods’ leveraging of the brand in the US), and the juice-based joint venture (JV) between Danone and Chiquita all suggested an international launchpad for probiotic juice. But the countdown never came. By 2013, both big names had withdrawn from the JV, some reports saying that it had been poorly managed. There was additional speculation that poor sales in southern Europe, in particular, were prompting Danone to focus on its core business.

As recent New Nutrition Business editorials have spelt out, while multinationals may have the requisite reach and muscle for big launches, they do not always have the will to take the necessary risks.

Intriguingly, in January this year Danone advertised for a brand manager for ProViva in Sweden. Responsibilities included, it said, ‘[identifying] short and long-term potentials’.

Despite the health claims challenges in the EU, that potential lies in the gap still left in many

national markets and in the premium which probiotic juices can command.

Currently, Valio’s standard orange juice retails at around €1.55 ($1.75) per litre in Finland. This compares with €2.29 ($2.59) for Valio Gefilus juice drink and €3.39 ($3.83) for PepsiCo’s Tropicana juice.

Juice content in the Gefilus range varies from 60% to 99%, according to Leporanta.

SUGAR TAX HIKES PRICES

Valio’s marketing manager for fresh products Jenni Lindell explains that retail price differentials have been maintained over the last few years.

But she adds: “As in other markets, the sugar debate in Finland has been heated, and a higher tax on soft drinks and juices containing more than 0.5% carbohydrates per 100g was imposed from the beginning of 2013. This price increase of €0.11 per litre has had some effect on consumption. In addition to that, the economic downturn and reduced purchasing power have shifted juice consumption towards more affordable ambient juices.”

1997 1998 2000 2002 2004 2006 2008 2010 2012

CHART 1: GEFILUS VOLUME SALES HAVE RISEN STEADILY IN FINLAND

Consumption per capita in Finland exceeds 2 litres

March 2015 29

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

P R O B I O T I C S C A S E S T U D Y

Country Company Brand & Product DescriptionPART 1: NORTH AMERICA – FOODS & BEVERAGES

All new product information is sourced exclusively from Mintel’s GNPD (Global New Products Database), which can be visited at www.gnpd.com. Mintel can be contacted at 18-19 Long Lane, London EC1A 9PL, U.K.. Tel. +44-(0)20-7606-4533, Fax +44-(0)20-7600-3327

FUNCTIONAL & HEALTHY-EATING NEW PRODUCT LAUNCHESEach month we summarise new product launches from around the world.• Part 1: North America • Part 2: Rest of the World

N E W P R O D U C T S

BAKERYUSA General Mills Nature Valley Lemon Poppyseed

Breakfast BiscuitsSaid to provide long lasting energy from 28g of wholegrain. A good source of fibre and free from trans fats, high fructose corn syrup and artificial flavors.

Canada Promise Gluten Free Promise Gluten Free High Fibre Multigrain Bread

A five grain, high fibre loaf with natural sour dough flavouring. Low in fat and free from gluten, dairy, soy and wheat.

USA Way Better Snacks Simply Sprouted Way Better Snacks Mustard & Cheddar Way Better Sprouted Barley Crackers

Made with sprouted ingredients: barley and mustard seeds, which are known to enhance nutrient absorption and digestibility. Barley is one of the oldest cultivated grains, highest in fiber of any wholegrain and packed with antioxidants, vitamins and minerals essential to health. All natural, free from GMO and trans fat; good source of fiber and contain 21g of wholegrains. Also available: Black Bean & Salsa Sprouted Barley Crackers.

USA Angelic Bakehouse Angelic Bake House Sprouted Seven-Grain Bread

Sprouted, whole grain, nut free, all natural. It is GMO free, contains 60 calories per slice, contains no added artificial sweeteners, fats, preservatives or HFCS. Has a fresh, nutty taste and a light texture. Also available: Sprouted Seven-Grain Dinner Rolls.

USA La Tortilla Factory La Tortilla Factory Wheat and Gluten Free Wraps

Relaunched with a newly designed pack and a better taste. Made with the ancient grain Ivory Teff and contains 18g of whole grain per serving.

USA Williams-Sonoma Williams-Sonoma Super Grain Lemon-Almond-Ginger Muffin Mix

With wholegrain kamut, black chia seeds and flax seeds with bits of crystallized ginger, and just requires the addition of eggs, oil, and water to prepare. Also available: Super Grain Banana-Blueberry Muffin Mix.

USA Gruma The Authentic Tradition Mission Digestive Health Flour Tortillas

Said to be the perfect way to get a nutritious serving of digestive and immune supporting probiotics. Two units per day are said to provide one billion CFU of GanedenBC30 probiotic cultures.

USA General Mills Fiber One 90 Calorie Mint Fudge Brownies

Provide 20% of the daily value of fiber per unit. Naturally flavored.

USA Rotella’s Italian Bakery Rotella’s Italian Bakery Supreme Vienna Bread

Redesigned package. Free from bleached flour, high fructose corn syrup, iodates azodicarbonamides, sodium stearoyl lactylates, calcium stearoyl lactylates, diacetyl tartaric acid esters of mono and diglycerides, artificial colors, dyes, trans fat, cholesterol, bromates and L-cysteine.

USA Dare Foods Dare Breton Gluten Free White Bean Crackers with Salt & Pepper

All natural, peanut free and contain 0g trans fat per 16g serving. Also available: Black Bean Crackers with Onion & Garlic.

USA Bimbo Bakeries Sara Lee 45 Calories & Delightful Oatmeal Bread

A low fat bread, free from cholesterol, trans fat, artificial colors, flavors and high fructose corn syrup. Said to be an excellent source of fibre and contains 18g of whole grains per serving.

BREAKFAST CEREALSCanada Nature’s Path Foods Nature’s Path Organic Qi’a

Superfood Superseeds & Grains Pure Oats Oatmeal

Made with rolled oats, chia, hemp and buckwheat to boost nutrition, keep full for longer and provide lasting energy all day long. Also available: Creamy Coconut Pure Oats Oatmeal.

USA Seven Sundays Seven Sundays Blueberry Chia Buckwheat Muesli

Relaunched with a new brand. Contains 7g of protein and 5g of fiber, and is free from gluten, refined sugar and GMOs. Chia contains natural antioxidants and is the richest plant source of omega 3 fatty acids.

USA Van’s International Van’s Natural Foods Gluten Free Blueberry Walnut Whole Grain Granola Clusters

Guten free product is a soft baked whole grain cereal that contains 12g nutrient dense whole grains and soft and chewy granola bites. Free from dairy, egg, gluten, artificial colors or flavors and high fructose corn syrup.

USA General Mills General Mills Chex Gluten Free Honey Nut Granola Mix

Free of artificial colors, artificial flavors and high fructose corn syrup. Described as a light, crispy crunch, it contains 38g whole grain and retails in an 11-oz. pack featuring the Nourishing Lives logo. Also available: Gluten Free Mixed Berry Almond Granola.

CARBONATED SOFT DRINKS

USA Bai Brands Bai 5 Bubbles Guatemala Guava Sparkling Antioxidant Infusion

Low glycemic beverage is naturally sweetened with 1g of sugar and 5 calories per can. No artificial colours, preservatives, gluten, GMO or soy. Also available: Indonesia Nashi Pear Sparkling Antioxidant Infusion.

CHOCOLATE CONFECTIONERYUSA Cavalier Cavalier Belgian Milk Chocolate

with SteviaRepackaged with an updated design. Sweetened with stevia extract from natural plant that contains zero calories and has extra fibers for better digestion.

USA Atkins Nutritionals Atkins Endulge Milk Chocolate Caramel Squares

Naturally and artificially flavored. They contain 2g net carbohydrates with 140 calories and 1g sugar. Said to satisfy a sweet tooth without the carbs or sugar.

DAIRYUSA Chobani Chobani Oats Mixed Berry Greek

YogurtLow-fat yogurt made with only natural ingredients and real fruit. It contains 1.5% milk fat and is made with gluten-free steel-cut oats, plus quinoa, chia, amaranth and buckwheat, as well as probiotics and live and active cultures. Excellent source of protein, provides 10g or more wholegrain per serving.

USA Lala Frusion Go Wild! Go Bananas & Berry Flavored Smoothie

Said to contain twice more calcium and 25% more smoothie than the leading kids smoothie. Free of juice, gluten, high fructose corn syrup, artificial flavors and colors.

March 201530

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W P R O D U C T S

USA Coconut Grove Products Coconut Grove Plain Organic Cultured Coconut Milk

USDA organic product contains no GMO or dairy, is free from gluten and soy. With live and active cultures, and organic coconut sugar, and has no preservatives, artificial colors or flavors. Suitable for people with lactose intolerance. Also available: Strawberry Organic Cultured Coconut Milk.

USA White Mountain Foods White Mountain Organic Bulgarian Yogurt

Made with whole milk probiotic containing up to 90 billion CFU per serving. Contains no thickeners, stabilizers or added sugar.

USA Stonyfield Farm Dannon Oikos Triple Zero Coconut Crème Flavored Yogurt

A blended, Greek, nonfat, grade A yogurt that contains no added sugar, artificial sweeteners, fat or gluten, provides 15g protein, and contains vitamin D.: Mixed Berry Flavored Yogurt.

Canada Ultima Foods Iögo Nomad Raspberry Flavoured Lactose Free Drinkable Yogurt

With vitamin D fortified milk, contains 1.5% fat and is free from gelatine, preservatives, artificial colours and flavours. Also available Strawberry Lactose-Free Drinkable Yogurt.

USA Wallaby Wallaby Organic Organic Mango Kefir

Contains 1% fat, is free from gluten and made with all-natural ingredients. A healthy smooth drink for kids, teens, adults and seniors which provides plenty of calcium. USDA organic beverage is described as mild, creamy, smooth and contains 12 live and active kefir cultures.

USA Icelandic Milk & Skyr Siggi’s Non-Fat Drinkable Swedish Style Vanilla Yogurt

Gluten-free yogurt is all natural, , does not contain aspartame, sucralose, gelatin, artificial colorings, preservatives, or high fructose corn syrup, and contains 10 live active cultures. This slow fermented milk, made from family farms in New York, uses Lactococcus and Leuconostoc culture strains which give it a soft buttery flavor. Has 15g of sugar, 8g of protein and 110 calories and 1 billion probiotics per serving.

USA Forager Project Forager Project Nuts & Matcha Organic Nut and Oat Milks Blend

Made with organic ingredients including cashew milk, coconut water, almond milk, coconut, spinach, gluten-free oat milk, dates and matcha green tea that are cold pressed to deliver the best taste and nutritional integrity. This organic product is minimally processed, is described as “fast slow food”.

USA Chobani Chobani Green Tea Blended Low-Fat Greek Yogurt

Available in a limited edition. This probiotic, all-natural product contains 2% milk fat, is an excellent source of protein. Also available in Grape flavour.

USA Yoplait Yoplait Yogurt & Juice Berry Pomegranate Nonfat Beverage

With the protein and calcium of yogurt, plus the nutrients of juice. Free from gluten, contains vitamins C and D, provides 6g of protein per serving.

DESSERTS & ICE CREAMUSA Açai Roots Açai Roots Premium Açai Fruit Bars Cntain only 90 calories per bar, and are made with wild-harvested Acai

berries from the Brazilian Amazon. Contain omega 3, 6 and 9, and over 2000 ORACS. They are said to be loaded with antioxidants. Free from gluten and GMO ingredients, and is certified organic.

USA Mamma Chia Mamma Chia Seed Your Soul Chia Squeeze Organic Mango Coconut Vitality Snack

Repackaged in a 14-oz. BPA free pack containing 4 x 3.5-oz. squeezes. Made with organic chia seeds infused with delicious fruits and vegetables, described as a satisfying anytime snack that naturally provides the vitality, contains 80 calories per pouch an has been packed with 1200mg of Omega 3, protein and fiber.

USA Materne Materne Gogo Squeez Fruit & Veggiez Boulder Berry Dessert

Made with 100% fruit and veggies, is free from gluten, nut, dairy, artificial colors, flavors, and preservatives, and comprises apple, carrot, and mixed berry.

USA The Chia Company The Chia Co. Chia Pod Coffee Bean Chia Pod

Comprises Intelligensia Black Cat cold brew coffee, sun ripened chia seed and coconut milk. Contains 3 grams of omega 3 and 6 grams of fiber per serving, and is free of gluten and GMOs.

FRUIT & VEGETABLESUSA Rader Farms Jamba Organic Smoothies Organic

Strawberries Wild Smoothie KitOrganic product comprises strawberry and banana with non-fat yogurt and contains 100 calories when prepared with apple juice. The gluten free product provides one full serving of fruit per smoothie and 100% daily value of vitamin C. All natural and easy to make.

HOT BEVERAGESCanada Tealish Tealish Fine Teas Wellness Tea

CollectionComprises three wellness loose leaf teas: Delicious Detox Green Tea; Stress Buster Herbal Tea, which is caffeine free; and Sleep Fairy Herbal Tea, which is caffeine free.

JUICE DRINKSUSA Suja Life Suja Essentials Organic Sweet

Beets Fruit & Vegetable Juice Smoothie

100% cold-pressured juice made with apple, carrot, orange, beet, banana, pineapple and turmeric. The vegan product is cold pressured protected, certified USDA organic and kosher, is rich in vitamin C, provides a source of antioxidant vitamin A and is free from GMO and gluten. Also available: Organic Berry Nana Juice, Organic Sunrise Probiotic Fruit Juice Smoothie, Organic Sunset Protein Drink and Organic Midday Thrive .

USA Campbell Soup V8 V-Fusion Vegetable & Fruit Pomegranate Blueberry 100% Juice

Repackaged. This pomegranate and blueberry flavored beverage features a blend of eight vegetable and fruit juices from concentrate with other natural flavors and added ingredients. It provides one full serving of both fruits and vegetables, and 100 calories per serving. With added antioxidants and vitamins A, C and E.

USA Cott Beverages Cott Beverages Watermelon Juice Drink

Contains 100% vitamin C. This low calorie product is described as an artificially flavored watermelon juice drink with apple juice from concentrate, contains 5% of real juice.

MEALS & MEAL CENTERSUSA Van’s International Foods Van’s Natural Foods Gluten Free

Creamy Herb & Garlic PastaMade with whole grain brown rice and red lentils and providing 11g protein and 28g nutrient dense whole grains. Free from gluten, artificial colors, flavors, preservatives, eggs and high fructose corn syrup. Also available: Gluten Free Rotini & Red Sauce Pasta.

OTHER BEVERAGESUSA Humm Kombucha Humm Coconut Lime Kombucha A raw food with live cultures, probiotics and B vitamins. Free from gluten

and contains less than 0.5% alcohol.USA Metabolic Nutrition Metabolic Nutrition Protizyme

Peanut Butter Cookie Protein Replacement

Increases protein absorption and muscle recovery, aids in fat weight loss, prolongs physical stamina, boosts immune system, maximizes nutrient utilization and stimulates protein production greater than any other protein supplement. This low carbohydrates, low fat and low calories product does not contain gluten, lactose, aspartame or trans fat, is suitable for diabetics and also for bariatric or post-surgical patients.

March 2015 31

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W P R O D U C T S N E W P R O D U C T S

Canada Federated Co-Operatives Co-Op Gold Care+ Chocolate Complete Meal Replacement

Lactose and gluten free meal replacement contains omega 3 and 6, is free from trans fat and is an excellent source of calcium and vitamin D.

USA The White Moustache The White Moustache Fresh and Pure Whey

Comprises the natural reserve from the manufacturer’s Greek-style strained yogurt. The small-batch produced product is said to be an excellent source of live probiotics and calcium, and to be perfect for smoothies, raw soups, sauces, cocktails and post-workout hydration.

USA Lovate Health Science U.S.A Purely Inspired Chocolate Flavored 100% Plant-Based Protein Nutritional Shake

Low-fat product contains 16g protein, 7g fibre, and 19 essential vitamins and minerals, antioxidants, concentrated greens blend with broccoli and spinach, digestive enzymes, and natural flavors. It is free from artificial flavors, colors, sweeteners, dairy, gluten, soy, lactose, aspartame, cholesterol. Contains more vitamin C than five servings of fruits and vegetables.

SIDE DISHESUSA General Mills Washburn Mills Thai Peanut Quinoa

& Grain BlendComprises quinoa, brown rice, peanuts, freekeh, red rice, and shredded coconut in a Thai peanut sauce. Excellent source of fiber.

SNACKSUSA Aldi Simply Nature Pomegranate

Flavored Fruit StripsRelaunched with a new brand, which was previously known as Fit & Active. Provides 100% daily value vitamin C and is free from gluten, lactose and over 125 artificial ingredients and preservatives.

USA That’s How We Roll Party-Tizers Dippin’ Chips Quinoa, Buckwheat and Black Sesame Ancient Grain Dippin’ Chips

Free from gluten, GMO ingredients, artificial flavors, colors and preservatives, and are suitable for vegans. Organic certified product is said to be the first ever organic tortilla chip designed for dipping, and contains premium organic ingredients. A blend of US homegrown organic corn and organic seeds and whole grains including quinoa, buckwheat and black sesame seeds.

USA Herr Foods Good Natured Selects Garden Herb Flavour Baked Vegetable Crisps

Free from gluten, trans fat and preservatives, and provide a half serving of vegetables per serving. Contains spinach, carrots and red bell peppers.

Canada Stella Pharmaceutical Nutribar Type 2 Brand Milk Chocolate Bars

Nutritional supplement is suitable for people with diabetes and is fortified with 25 vitamins and minerals, supplying energy from carbohydrates.

USA NuGo Nutrition Nugo Dark Spicy Chocolate Protein Bar

Gluten-free bar with chilli peppers contains 10g protein.

USA Ips Chips ips Chips with Protein Sea Salt & Black Pepper Puffed Corn & Protein Snack

Relaunched under a new brand name, previously known as ips Egg White Chips. Made with non-GMO corn, premium protein from whey and egg white, and other wholesome ingredients, then uses a pressure puff process to create a delightfully tasty chip that is seasoned to perfection. Free from artificial flavours and gluten, has half the fat of fried potato chips, and contains fewer carbs than leading baked potato chips.

USA ProBar PROBAR bite Chocolate Cherry Cashew Organic Snack Bar

Free from gluten, dairy and GMOs. It provides 6g of protein and 3g of fiber per serving.

USA Small Planet Foods Cascadian Farm Organic Oats and Honey Granola To-Go Pouches

Made with organic whole grain oats, crisp rice and golden honey. Certified organic and contains 26g or more whole grains per serving.

USA Tasty Brand Tasty Brand Organic Superfruit Snacks

Made with real fruit juice without the addition of artificial colors, flavors or preservatives. These fat- and cholesterol-free snacks provide 100% of the daily value of the antioxidant vitamin C.

USA Ouhlala Gourmet Buddy Fruits FruitBreak Blended Fruit with Coconut Milk & Raspberry

Relaunched. This all natural fruit snack consists of raspberries, apples, bananas and coconut milk, is claimed to contain only fruit and nothing else, is dairy -free, and provides one whole serving of fruit, 100 calories, and 3g fiber per pouch.

USA Baby Gourmet Foods Inc. Kids Gourmet Organic Slammers Pumped Superfood Snack

Contains banana, mango, butternut squash, cinnamon, quinoa and chia. Free from added sugar, and contains nothing artificial. Good source of vitamins A and C, and contains ancient grains, described as whole grains that are super nutritious and full of protein, omega-3 and antioxidants. Designed to energize for every activity. Free from nuts and gluten.

USA Clif Bar & Company Luna Chocolate Cupcake Whole Nutrition Bars for Women

Made with 70% organic ingredients, and contains vitamins and minerals that are said to be essential to women’s health, with calcium, iron, folic acid and vitamin D. Contains 9g of protein and 4g of fiber per bar, has a low glycemic index, which is said to mean they are digested slowly for prolonged levels of satiation and energy. Free from gluten, hydrogenated oils and GMO ingredients, and is said to curb hunger.

USA Quaker Oats Quaker Quinoa Granola Bars with Yogurt, Fruit & Nut Flavor

Made with puffed quinoa blended with wholegrain oats, wheat and brown rice for a chewy granola texture. Combined with almonds, peanut chunks, sunflower kernels, real fruit pieces and yogurt.

USA NatureSnax SeaSnax STIX Original Sea Salt Crispy Seaweed Strips

Made with 100% olive oil and free from gluten, GMOs, MSG, trans fat and cholesterol. Described as a convenient light and crispy snack that provides 25 calories per serving. Also in Wasabi and Sesame flavours.

USA USANA Health Sciences Usana Berry Nutty Bar Contains all-natural ingredients and is a good source of fibre. Free from gluten, soy, dairy, trans fat and GMO. The low GI and sodium product retails in a 560g pack containing 14 bars.

USA Luke’s Organic Luke’s Organic Cha-Cha-Cha Chia Seed Multigrain & Seed Chips

Free of gluten, soy, dairy, peanuts, tree nuts and GMOs and contains 18g whole grain per serving. Also available: Protein Blue Corn & Red Lentil Multigrain & Seed Chips.

SOUPUSA Kroger Kroger Ham Flavored 16 Bean

Soup MixHigh in fiber, and contains only 70 calories per serving. Includes a ham flavor packet, and contains 16 varieties of bean.

USA H-E-B H-E-B Souper Fruit Bilberry Fruit Soup

Made with whole berries and features a sweet floral aroma and a slight citrusy note. Free from sodium and gluten, low in fat, an excellent source of fiber and vitamin C. Also available: Lingonberry, Cranberry & Grape Cold Soup and Sea-Buckthorn, Apricot & Apple Cold Soup.

SPORTS & ENERGY DRINKSUSA Mamma Chia Mamma Chia Seed Your Soul

Cherry Charge Energy Beverage Drink

Free from GMO and gluten. It delivers the “clean energy” of guayusa. It is an excellent source of fiber and contains antioxidants, 2500mg omega 3, 90mg natural caffeine, 4g of complete protein.

March 201532

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W P R O D U C T S

Country Company Brand & Product DescriptionPART 2: REST OF THE WORLD – FOODS & BEVERAGES

BAKERYAustralia Gruma Oceania Gruma Mission Red Quinoa Wraps Source of fibre and free of artificial colours or flavours. According to

the manufacturer, quinoa has all nine amino acids essential for human nutrition; features a type of complete protein rarely found in plant foods; is a good source of dietary fibre and iron, and high in magnesium; is also a source of calcium.

Egypt Taypat Barley Bread Biscuits and Cookies Features sesame cookies and barley bread containing melatonin and antioxidants. According to the manufacturer, barley is useful in weight loss, helps in treatment of kidney problems, decreases cholesterol in blood, is useful in the treatment of osteoporosis, and increases insulin percentage in blood.

India Diat Foods Sugarless Bliss Sugar Free 13 Grains and Seeds Cookies

Contain 13 grains and seeds. These high fibre biscuits are fortified with 10 vitamins and minerals, free from cholesterol and trans fat. Contains prebiotics and is sweetened with Splenda.

Japan Fancl FANCL Health Science Fruit Flavour Germinated Rice Breakfast Bar

With Kin No Ibuki brand germinated rice, carbohydrate for energy, lactic acid for healthy body, 10 vitamins to support other nutrients, calcium, iron, dietary fibre and protein, and contains raisin, cranberry, orange peel and soy protein. Said to help awaken body and give preparation for an active day.

Netherlands Mondelez Liga Belvita Breakfast Sandwich Biscuits with Yogurt Filling

Made with five whole grains; are rich in grains; are fortified with vitamins E and B1, calcium and magnesium; and are a source of fibre. Said to provide energy for the entire morning. Also available: Cranberry Biscuits.

Romania Mondelez BelVita Breakfast Yogurt Crunch Wholegrain Biscuits with Creamy Live Yogurt Filling. Proven to slowly release carbohydrates over four hours to provide energy for the whole morning. Enriched with vitamins E and B1, calcium, iron and magnesium.

Sweden Fazer Fazer Rotfruktsbröd Root Vegetable Bread with Parsnip & Carrot

Made with real sourdough, beans, roasted chickpeas and sea salt. Baked with a third of the flour replaced with beneficial vegetables, is a source of protein and fiber, low sugar content. Contains folic acid and vitamin B.

Turkey Mestemacher Mestemacher Protein Bread Low in carbs and rich in protein, containing three times more protein and 82% less carbohydrates than comparable wholegrain breads.

UK PureBred PureBred Bakery Multigrain Farmhouse Loaf

A five grain high fibre loaf with natural sourdough flavouring. Low in fat, and free from gluten, wheat, dairy and soy. With omega 3 rich seed mix. Said to be a lighter option to traditional bread.

BREAKFAST CEREALSAustralia Freedom Foods Freedom Foods Active Balance

Buckwheat & Quinoa CerealBuckwheat, quinoa flakes and whole pepitas. Excellent source of fibre, low in salt, and free from gluten, wheat, nut, artificial colours and flavours. Wholegrain cereal contains prebiotics for digestive balance, and provides 25% daily fibre intake to keep consumers feeling fuller for longer. Increases energy thanks to optimal digestion.

Australia The Chia Company The Chia Co. Oats + Chia Apple Spice

A nutritious source of fibre, which contains both insoluble fibre that keeps you full and promotes regularity, and soluble fibre that naturally helps lower cholesterol re-absorption. Comprise whole grain oats and chia blended with fruits and virgin coconut oil, for a smooth creamy texture, without dairy. Free from GMO and dairy. Also available: Mixed Berry Oats + Chia.

Germany Granovita Grano Vita Müsli Genuss..Milk Chocolate and Amaranth Muesli

Wholegrain, on-the-go organic product is high in fiber.

Mexico CPW Nestlé Trix Fruit Flavored Wholegrain Corn Cereal

Relaunched with 31% less sugar in a newly designed 150g pack.

Puerto Rico MaGi Foods Kathleen’s Quick Oats Oats & Quinoa Crumble with Granola & Brown Sugar

Cooks in one minute, free from gluten. A good source of fiber and protein, excellent source of iron. Contains simple, real ingredients and natural sugar. Described as a meeting of two ancient grains, filled with the nutritional goodness of fiber and protein, and enhanced with the sweetness of brown sugar and granola.

Sweden Lantmännen Axa AXA Oat Porridge with Cranberry & Apple

Rich in fibre and whole meal. This mix of oats, cranberries, apple, pumpkin seeds and linseeds is spiced with cinnamon is rich in minerals such as iron and magnesium and contains beta-glucan.

CHOCOLATE CONFECTIONERYGermany Noi Sirius Aktiv Próteinbitar Coconut Flavour

Chocolate+ ProteinMade with Icelandic dark chocolate and added isolated whey protein, a convenient way to add protein to the day. Gluten free.

Sweden Malmö Chokladfabrik Malmö Chokladfabrik 1888 70% Dark Chocolate with Natural Olive Extracts

Said to give an antioxidant boost for seven days. Gycemic index value of 20. According to the manufacturer, polyphenols from olive have an antioxidant activity that may help maintain healthy LDL cholesterol level and lipid antioxidation.

DAIRYAustria NÖM Voll Fit Strawberry & Banana Yogurt

DrinkAimed at children. With strawberry pulp and banana juice, and is enriched with vitamin B12, supporting the normal functioning of the immune system, and calcium, important for healthy bones and teeth.

Brazil Dairy Partners Americas Nestlé Ninho Sweetened Cultured Skimmed Milk

Relaunched under a new brand name and a new pack design. Calcium content has been increased from 9% to 19%, the zinc content from 14% to 37%, and the vitamin D content from 14% to 19%. Contains probiotics Lactobacillus paracasei and is free of gluten.

Brazil Nestlé Nestlé Nescau Chocolate Flavoured UHT Milk

Reformulated with a new formula. Now has 29% less fat, is more nutritious, and contains Activ-Go complex that is a source of calcium, iron, vitamin A and group B vitamins. Gluten-free.

Croatia Vindija ‘Z Bregov Effect Milk with Omega 3 Contains 1.5% of fat, requires no cooking, and contains the omega-3 fatty acids EPA and DHA that claim to contribute to normal heart function.

Finland Valio Valio Kefir LGG Natural Kefir Made from Finnish milk and described as traditional kefir, combined with vitamin D, to maintain the immune system, and lactobacillus. Free from lactose and added sugar.

N E W P R O D U C T S

March 2015 33

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W P R O D U C T S N E W P R O D U C T S

CARBONATED SOFT DRINKS

CHOCOLATE CONFECTIONERY

Malaysia Ma Ma Mi Shoppe Ma Ma Mi Organic Soya Milk Powder with 23 Grains

Enriched with 23 types of grains, prebiotic (inulin), beet root and sea bird nest, and contains vitamin, mineral and dietary fibre to maintain the body’s metabolism and boost the immune system. Sea bird nest is a low-calorie alkaline marine food rich in fibre, mineral and antioxidants, and plant-based collagen that helps in repair of tissues and regulates cholesterol level. 100% plant-sourced product is free from GMO, lactose, added sugar, preservative, artificial colour and artificial sweeteners.

Morocco Safilait Jibal Aloe Vera Aloe Vera & Red Fruits Drinking Yogurt

Made with fruits and aloe vera, which is said to offer many health, vitality and beauty benefits.

Poland Bakoma Bakoma ProMen High Protein Yogurt with Forest Fruit

Retails in a 230g pack.

Romania Alpro Alpro Coconut Drink with Rice and Added Calcium and Vitamins

Low in calories, free from added sugars, dairy, gluten, and wheat, contains calcium and vitamins B12 and D.

Russia Chistyy Kray Chistyy Kray Light Yogurt with Beetroot

Said to be good for healthy digestion.

Russia Danone Danone Actimel Imunitass Watermelon Drinking Yogurt with L. Casei

Relaunched with a new brand - previously known as Danone Actimel Immunovitaminy. Made with fruit juice, enriched with vitamins B6 and D3, and contains 2.5% fat. Claimed to promote a healthy immune system.

Russia Galaktika Galaktika Bol’shaya Kruzhka Blackberry and Bilberry Yogurt

Enriched with prebiotic inulin that detoxifies the body, promotes vitality and improves the digestive system. Has 2.5% fat content.

Russia Galaktika Galaktika Bol’shaya Kruzhka Fresh Baked Milk Drink

Contains 2.5% fat and is free from added milk powder. Low calorie drink is a source of protein and calcium, and provides lactic acid bacteria which are beneficial for the digestive system, normalize the intestinal flora and promote calcium absorption.

Spain Danone Danone I Love Vitalinea Pro Doble de Proteínas Natural Sweetened Skimmed Yogurt

Features a new formulation with double the protein. Gluten-free yogurt comprises fermented milk with fresh soft skimmed cheese and sweeteners. Contains 0% fat.

Spain Kaiku Corporación Alimentaria Kaiku Calcium+ Natural Sweetened Drinking Yogurt

Fat-free yogurt is enriched with vitamin D and calcium to help maintain bone density. Kaiku Calcium+ range is said to be ideal to help keep body in shape. Gluten-free.

Sweden ICA ICA Gott Liv 1.5% Fat Chocolate Milk 50% Extra Protein

Relaunched with a new brand name. Rich in vitamin D, fat content of 1.5%.

DESSERTS & ICE CREAMDenmark Nutricia Nutricia Fortini Creamy Fruit Berry

and Fruit Flavoured Multi Fiber Dessert for Medical Purposes

Designed for medical purposes with extra nutrients and energy, for example in cases of poor growth or dietary needs of disease related malnutrition, such as Crohn’s disease. UHT product is enriched with dietary fiber, and constitutes a semi-solid nutrition with fruit flavor for children from the age of one.

HOT BEVERAGESIndia Mondelez Cadbury Bournvita Lil Champs Malt

Based DrinkNew formulation features NutriSmart DHA, ProHealth Vitamins. The NutriSmart formulation includes DHA, an essential fatty acid and an important structural component of the brain that is known to aid brain development and sharpness of vision but is not commonly found in the average Indian diet.

South Korea Jn Food Teasam Daily Nut Mix Tea Comprises daily recommended amounts of nuts.Spain Laboratorios Sanor Susaron Red Fruits Flavoured

Sanatens Olive Leaves InfusionMade with herbs known for naturally helping regulate blood pressure.

JUICE DRINKSAustralia Sanofi-aventis Nature’s Own Superfood Smoothie

Berry with 38 Superfoods SmoothieBerry smoothie blended with nutrient-rich superfoods. Free from fat, dairy, lactose, GMO, artificial colours, flavours, and preservatives. Excellent source of dietary fibre, a source of protein, and a good source of calcium and vitamin C. With 38 potent superfoods, 15 essential vitamins and minerals to provide phytonutrients, organic wholegrains, multivitamin, minerals complexes and prebiotic.

Austria Eckes-Granini Hohes C Apple, Pomegranate and Raspberry Fruit Juice with Iron

One glass covers the daily requirement of vitamin C and provides 40% of the daily requirement of iron.

Austria Healthy People Healthy People Coconut Water 100% natural and contains vitamin C, important for the immune system and contributes to the protection of the body’s cells against oxidative stress. Water from a young coconut is naturally thirst quenching and low in calories.

Netherlands Schulp Vruchtensappen Schulp Blueberry Juice Said to make a substantial contribution to prevent physical discomfort. Blueberries contain anthocyanins, a natural colouring that contributes to the good functioning of heart and blood vessels. Blueberry juice is also traditionally a natural remedy for stomach and intestinal disorders, and a natural stool regulator. Organic certified.

Ireland Marks & Spencer Marks & Spencer Apple, Pea, Lime & Mint Juice

A pasteurised drink with apple and lime juice featuring banana and pea purées. Provides two of the five recommended daily portions of fruit and vegetables, is high in vitamin C which is important for healthy skin blood and bones.

Japan Kirin Beverage Kirin Tropicana Essentials Banana Blend Drink with Calcium

Made with banana, white grape, banana puree, strawberry, blueberry and 221mg added calcium, which is the daily required amount in Japan.

Peru Pure Product Ocóo Red Power Berries Beauty Drink

Contains only 48 calories per bottle, features an anti-aging protection with zinc and selenium, it takes care of the skin with vitamin B3 with iodine and biotin, it produces collagen with vitamin C, and takes care of the hair due its content in biotin. Also made with green and white tea, it contains antioxidants and flavonoids that provides a refreshing taste, and contains copper, and vitamins B1, B2, B3, B6, B12, C, and E.

UK Grace Foods Grace Aloe Refresh Mango Flavour Aloe Vera Drink

Refreshing mango flavoured drink with 20% aloe vera, sugar and sweetener. Gluten-free product contains aloe vera piece, is rich in antioxidant vitamin C (100% RDA), which helps the immune system function normally and contributes to the reduction of tiredness and fatigue.

UK Tropicana Tropicana Essentials Mango Passionfruit and Pumpkin Fruit & Veg Juice

Source of vitamin A, potassium and fibre and contains no preservatives, artificial flavours or colours.

MEALS & MEAL CENTERS

March 201534

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W P R O D U C T S

Czech Republic Marks & Spencer Marks & Spencer Balanced For You Super Wholefood Salad

Made with edamame soybeans, quinoa and Kamut with a creamy lemon and mint dressing. High in protein to maintain muscle growth, contains balanced carbs.

UK Asda Asda Chosen by Kids Shepherd’s Pie

Improved recipe. Approved by mums, it provides two of the five a day and is a source of protein, which supports the growth and maintenance of healthy muscles and helps to maintain healthy bones. No artificial colours or flavours.

OTHER BEVERAGESEgypt Weetabix Weetabix on the Go Chocolate

Flavoured Breakfast DrinkA smooth breakfast drink with all the protein, energy and fibre of a Weetabix cereal with milk to fuel the day. UHT beverage contains added vitamins and iron, and is made with all natural colours and flavours. Contains no preservatives.

Germany Atlantic Multipower Multipower Raspberry-Blueberry Protein Smoothie A heat-treated whey protein based drink with fruit concentrate and sweeteners, high in protein to help muscle growth and maintenance. Low in fat and sugar, delivering 26g protein per serving. Made with natural ingredients.

Japan Asahi Food & Healthcare Asahi Slim Up Slim Apple Mix Flavour Selected Vegetables Luxurious Smoothie

Made with 30 domestically grown fruits and vegetables including peucedanum japonicum from Okinawa, yuzu from Tokushima, apple from Aomori and sweet corn from Hokkaido, and is formulated with 8500mg dietary fibre, lactic acid, multivitamin, iron and 48 fermented vegetables. Claimed to aid in beauty and dieting.

New Zealand Goodman Fielder Tararua Dairy Co. Protein Hit 42g Protein Chocolate Smooth Hit Flavoured Fresh Milk Drink

Made with fresh milk and double the protein for muscle growth and repair.

UK Inovate Health OatWell Strawberry Flavoured Instant Drink Mix

Proven to reduce cholesterol and is effective within weeks. This mix comprises natural oat bran powder rich in cholesterol-lowering oat beta-glucan that may have a beneficial effect on reducing high cholesterol and risk of coronary heart disease. Ideal for people with increased cholesterol levels and anyone who is concious about their heart health. High in fiber and retails in a 210g pack, sufficient for 14 day supply and featuring Heart UK The Cholesterol Charity Approved logo.

SIDE DISHESBrazil Mosmann Alimentos Mosmann Wholegrain Ninho Pasta

with QuinoaContains 0% sodium, 11g of protein, is high in fiber, is free from trans fats, contains no added preservatives and flavorings, is formulated with natural ingredients, and is free of derivatives of animal origin. Wholegrain Penne Pasta with Chia provides a source of omega 3 and is high in fiber.

Spain NAH Foods Eat Water Slim Pasta Penne Made from organic konjac flour and organic oat fibre (Juroat) making it an alternative to regular pasta, with far less calories. Said to help lose weight. Free from gluten, fat, sugar and wheat and is high in fibre. Suitable for coeliacs, diabetics, kosher diet, vegans and vegetarians.

SNACKSAustralia Think Products Health Attack CrispyFruits Pure

PearThis 100% vegan snack comprises freeze-dried sliced mango, features only 39 calories, and a low glycemic index. Furthermore, this snack is free of sulphur, nuts, gluten, dairy, added sugar, preservatives, and artificial additives, Fruit is dry frozen at very low temperatures for an amazingly light and crispy snack that contains all of the nutrients locked in. Easily digestible and tasty, quick to serve and easy to open, and also easy to clean up. It provides a highly nutritious source of vitamins, minerals, and fibre, and represents a convenient way to increase fruit intake.

Brazil Nutra Vita Produtos Naturais Nutra Vita Apricot, Fig, Pineapple, Plum, White Grape and Black Grape Fruit Bars

Made with dried selected fresh fruit without the addition of sugar, artificial colorings or preservatives. This 100% natural product is rich in fiber, does not contain gluten or trans fats.

Czech Republic Aminostar Aminostar Protein Star Banana & Chocolate High Protein Bar

Reformulated with a new intensive banana taste. Rich in quality proteins that promote the formation and maintenance of muscle mass. Enriched with BCAA premix containing three branched chain amino acids L-leucine, L-valine and L-isoleucine.

Czech Republic Bioprodukt JT Bioprodukt JT Apple Bar Said to be a fruit delicacy made from apple purée. Free from gluten and preservatives, and is high in fibre.

Czech Republic Monkey Brothers Chimpanzee Pear & Apricot All Natural Kids Bar

Contains 25% fruit, is high in fibre, and suitable for vegetarians.

Germany Pulsin’ Beond Organic Apple Cinnamon Bar

An organic fruit bar made from raw organic ingredients, is gluten-, dairy- and soya-free, and has a low GI rate. Provides one of the five daily recommended portions of fruit and vegetables.

Germany Rude Health Rude Health Pumpkin Fruit & Veg Bar

Contains a hint of spice, is high in fibre. Free from gluten, GMO, dairy, added salt and refined sugar.

Mexico Lifestyle Evolution NuGo Stronger Peanut Cluster Chocolate Protein Bar

Made with whey and rice, free from maltitol, gluten, GMO and rBGH. Contains 55% less sugar than a regular high protein bar and provides 25g pure proteins, 310 calories, 9g sugar and 12g fiber.

New Zealand Naturalac Nutritional Horleys Sculpt Apricot Chocolate Flavoured Bar

High in protein and fibre, said to help to support metabolism. Gluten-free product is made with garcinia, green tea and carnitine, and contain only 3.9g sugar.

Peru Dipsa Food Dipsa Food Goldenberry and Dried Banana Bar

100% natural and a good source of dietary fiber and protein, is low in saturated fat and very low in sodium which may reduce risk of high blood pressure.

Spain Casa Santiveri Santiveri Cocoa Flavoured Protein Bar

A milk chocolate coated bar with vitamins and minerals. Said to be an excellent source of proteins.

UK Natural Balance Foods JC’s Trek Original Oat Protein Flapjack

Handmade with soya protein crunchies are free from wheat, dairy and gluten, and is said to be protein packed with 10g of protein. Provides lasting energy.

I M P O R T A N T N O T I C E

March 2015 35

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W P R O D U C T S

1. Unless you or your organization (the “Purchaser”) have already purchased a multi-user license then you have purchased a single license

personal to you to access and read New Nutrition Business and its website (hereafter “New Nutrition Business”) and you hereby agree on behalf of

the Purchaser that it will comply with New Nutrition Business’s conditions of supply hereafter described. Once the Purchaser, or any person within

it, has had access to New Nutrition Business or any part of New Nutrition Business, protected under these conditions, you are agreeing that your

organization as a whole, and the individuals within it, are deemed to be aware of, and consent to, these conditions hereafter in respect of New

Nutrition Business.

2. Unless otherwise agreed in writing in advance by New Nutrition Business, New Nutrition Business may not be sold, nor passed on,

communicated or disseminated in any form (including within its original covers), nor access granted, to any third party (including but not

limited to clients/potential clients/suppliers/agents/partners in other ventures/accountants/solicitors/bankers/brokers/ licensees), or to

any subsidiary, associated or holding company (whether direct or indirect) of the subscriber, whether trading or non-trading, or to any entity

trading under the same umbrella trading name where the direct equity interest is different in any way to that of the subscriber. The Purchaser

is agreeing that in the event that any of its personnel inadvertently do so allow unlicensed usage or access by others as detailed above, that it will

account to New Nutrition Business in full for the sales proceeds at the then current prevailing single copy price as set by New Nutrition Business from

time to time, for each and every occurrence, and further that the Purchaser fully and effectually indemnifies New Nutrition Business in respect of

any claim howsoever arising by any such subsequent unlicensed user against New Nutrition Business. Similarly, if any other piece of identified New

Nutrition Business material, amounting to an article or more, becomes available to the Purchaser by virtue of a breach of this term by any third

party, which is then read or used by the Purchaser in any way, that the Purchaser is hereby agreeing to purchase a copy of the item from New

Nutrition Business containing that piece of intellectual property from New Nutrition Business at the then current prevailing single copy price as set by

New Nutrition Business from time to time for each and every occurrence (unless at New Nutrition Business’s sole discretion the money is sought and

subsequently remitted by the original subscriber), and to abide by New Nutrition Business’s license terms.

3. The Purchaser acknowledges that all materials and information contained in New Nutrition Business are the copyright property of New

Nutrition Business and are protected inter-alia by International Copyright Law and the Copyright Law of the United States of America and

Related Laws Contained in Title 17 of the United States Code and other intellectual property rights and also by the terms of this agreement,

and that no rights in any of the materials are transferred to the Purchaser. The Purchaser agrees the Copyright Law of the United States of

America and Related Laws Contained in Title 17 of the United States Code is only relevant where New Nutrition Business has not sought and

secured protection elsewhere in these conditions, or indeed where sections are expressly excluded, without prejudicing the enforceability of the

remainder of the Title. The Purchaser agrees that the provisions of Section 107 of Title 17 of the United States Code and sections 29 and 30

of the Copyright, Designs and Patents Act 1988 shall not apply to the use to be made by the Purchaser. The Purchaser undertakes that it will

not copy, reproduce, print or store in any manner (electronic or otherwise), extract or transmit in any form or otherwise deal with in any way

the whole or part of the data, materials or information contained in New Nutrition Business without first obtaining the consent in writing of the

Publisher of New Nutrition Business.

4. New Nutrition Business contains information obtained from authentic sources using primary research wherever possible. Reasonable efforts

have been made to publish reliable data and information, but the authors and the publishers cannot accept responsibility for the validity of all

materials. Neither the authors nor the publishers, nor anyone else associated with this publication, shall be liable for any loss, damage or liability

directly or indirectly caused or alleged to be caused.

5. New Nutrition Business nor any part of it may be reproduced or transmitted in any form or by any means, electronic or mechanical, including

photocopying, microfilming and recording, or by information storage or retrieval system, without permission in writing from the Publisher.

6. The consent of New Nutrition Business does not extend to copying for general distribution, for promotion, for creating new works or for resale.

Specific permission must be obtained in writing from the publishers.

7. New Nutrition Business reserves the right to amend its terms at any time.

I M P O R T A N T N O T I C E

March 201536

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

10 Key Trends in Food, Nutrition & Health 2015

Ordering is easy…see inside back cover or visit www.new-nutrition.com

Published December 2014

Published every year since 1996, our 10 Key Trends is the only trends analysis that enables you to differentiate enduring trends from short-term fads and understand how to use them successfully in your strategy.

That’s because our methodology, shown in the report in our unique Trend Diamond, ensures that we take into account every single factor that drive a trend’s evolution – from ingredients and science through to consumer needs and sales figures.

All year long we monitor a mass of data. We analyse this to work out what’s truly important, and what’s not. That’s why companies around the world use our annual Key Trends to formulate their strategy and innovation plans.

PPT PDF

8www.new-nutrition.com

© New Nutrition Business 20147 www.new-nutrition.com

© New Nutrition Business 2014

10 Key Trends 2015

CHART 2: THE NUTRITIONAL PRODUCT LIFE CYCLE The chart below was developed to aid understanding of brand positioning, ingredient lifecycles and the evolution of markets.

Many products start out on the left, targeting consumers who have a need for a product that has effective technology. They sell in

low volumes at premium prices but over time their appeal increases and they move down the price curve to the right, eventually

becoming mass-market products. Many companies deliberately target the lifestyle area as a way of creating a defensible niche and

maintaining premium prices. Below we show where some of the Key Trends currently sit on the life-cycle. The stages of the life

cycle are:

Technology consumers – These are the early adopters, people who have a near-medical need for a product. They need the technology of the food to address their health condition. They see products in a medicalised context and they will pay a substantial

premium for something that addresses their condition.Lifestyle consumers – They are interested in maintaining their wellness, not fighting illness. They will adopt new brands and will pay

a premium for a product.Mass-market consumers – They are motivated when a benefit becomes a standard and is available in products with low or no

premiums, ideally from well-known and trusted brands.TECHNOLOGY CONSUMERS

LIFESTYLECONSUMERS MASS-MARKET

CONSUMERS

Solid line = sales volumes

Broken line = unit selling price6% - 8% of consumers 20% - 25% of consumers 67% - 74% of consumers

SALES

TIME

Naturally functional

Snackifi cation

Weight Wellness

Protein

Good Carbs Bad Carbs

Dairy 2.0

Gluten-Free

Sugar

Fat

Digestive Wellness

1www.new-nutrition.com

© New Nutrition Business 2014

10 Key Trends 2015

10 Key Trends 2015

1NATURALLY

FUNCTIONAL

The strongest foundation for success 3

Market shift means opportunity for entrepreneurs

WEIGHT WELLNESS

2 Paradise for start-ups – innovation

without limits

SNACKIFICATION

4PROTEIN

Powered by “naturally functional” 5

GOOD CARBS VS BAD CARBS

The rise of good grains 6

Dairy’s rebirth as a natural whole food

DAIRY 2.0

7The normalisation of

avoidance

FREE-FROMFAT

9 A long, slow death for low-fat?8

The new dietary demon

SUGAR

DIGESTIVE WELLNESS

10The secret driver

of other trends

10 Key Trends in

Food, Nutrition &

Health 2015

by Julian Mellentin

Published by

NOVEMBER/DECEMBER 2014 ISSN 1464-3308

VOLUME 20 NUMBER 2/3

We don’t believe in a ONE-SIZE-FITS-ALL APPROACHEvery business is UNIQUE and DESERVES a HEALTH AND WELLNESS STRATEGY that’s a PERFECT FIT.

Analysis of competitive landscape

Experts in start-ups

Marketing & communication strategy

How to connect to market trends Science

commercialisation

Growth strategyProduct development and ingredient strategy

Channels to market

Health and nutrition success factors Brand development

and positioning

Market overviews and case studies

Business models

Strategy tailored to country, category & regulatory environment.

Speak to us today about consultancy that is tailored to your needsContact Allene Bruce - [email protected]

March 2015 37

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

10 Key Trends in Food, Nutrition & Health 2015

Ordering is easy…see inside back cover or visit www.new-nutrition.com

Published December 2014

Published every year since 1996, our 10 Key Trends is the only trends analysis that enables you to differentiate enduring trends from short-term fads and understand how to use them successfully in your strategy.

That’s because our methodology, shown in the report in our unique Trend Diamond, ensures that we take into account every single factor that drive a trend’s evolution – from ingredients and science through to consumer needs and sales figures.

All year long we monitor a mass of data. We analyse this to work out what’s truly important, and what’s not. That’s why companies around the world use our annual Key Trends to formulate their strategy and innovation plans.

PPT PDF

8www.new-nutrition.com

© New Nutrition Business 20147 www.new-nutrition.com

© New Nutrition Business 2014

10 Key Trends 2015

CHART 2: THE NUTRITIONAL PRODUCT LIFE CYCLE The chart below was developed to aid understanding of brand positioning, ingredient lifecycles and the evolution of markets.

Many products start out on the left, targeting consumers who have a need for a product that has effective technology. They sell in

low volumes at premium prices but over time their appeal increases and they move down the price curve to the right, eventually

becoming mass-market products. Many companies deliberately target the lifestyle area as a way of creating a defensible niche and

maintaining premium prices. Below we show where some of the Key Trends currently sit on the life-cycle. The stages of the life

cycle are:

Technology consumers – These are the early adopters, people who have a near-medical need for a product. They need the technology of the food to address their health condition. They see products in a medicalised context and they will pay a substantial

premium for something that addresses their condition.Lifestyle consumers – They are interested in maintaining their wellness, not fighting illness. They will adopt new brands and will pay

a premium for a product.Mass-market consumers – They are motivated when a benefit becomes a standard and is available in products with low or no

premiums, ideally from well-known and trusted brands.TECHNOLOGY CONSUMERS

LIFESTYLECONSUMERS MASS-MARKET

CONSUMERS

Solid line = sales volumes

Broken line = unit selling price6% - 8% of consumers 20% - 25% of consumers 67% - 74% of consumers

SALES

TIME

Naturally functional

Snackifi cation

Weight Wellness

Protein

Good Carbs Bad Carbs

Dairy 2.0

Gluten-Free

Sugar

Fat

Digestive Wellness

1www.new-nutrition.com

© New Nutrition Business 2014

10 Key Trends 2015

10 Key Trends 2015

1NATURALLY

FUNCTIONAL

The strongest foundation for success 3

Market shift means opportunity for entrepreneurs

WEIGHT WELLNESS

2 Paradise for start-ups – innovation

without limits

SNACKIFICATION

4PROTEIN

Powered by “naturally functional” 5

GOOD CARBS VS BAD CARBS

The rise of good grains 6

Dairy’s rebirth as a natural whole food

DAIRY 2.0

7The normalisation of

avoidance

FREE-FROMFAT

9 A long, slow death for low-fat?8

The new dietary demon

SUGAR

DIGESTIVE WELLNESS

10The secret driver

of other trends

10 Key Trends in

Food, Nutrition &

Health 2015

by Julian Mellentin

Published by

NOVEMBER/DECEMBER 2014 ISSN 1464-3308

VOLUME 20 NUMBER 2/3

We don’t believe in a ONE-SIZE-FITS-ALL APPROACHEvery business is UNIQUE and DESERVES a HEALTH AND WELLNESS STRATEGY that’s a PERFECT FIT.

Analysis of competitive landscape

Experts in start-ups

Marketing & communication strategy

How to connect to market trends Science

commercialisation

Growth strategyProduct development and ingredient strategy

Channels to market

Health and nutrition success factors Brand development

and positioning

Market overviews and case studies

Business models

Strategy tailored to country, category & regulatory environment.

Speak to us today about consultancy that is tailored to your needsContact Allene Bruce - [email protected]

March 201538

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

The Snackification of Breakfast

Ordering is easy…see inside back cover or visit www.new-nutrition.com

Published November 2014

Breakfast has become one of the most fought-over battlegrounds in food and health, a battle fuelled by consumers’ need for easy and quick meals in the morning – and by two massively successful disruptive innovations, Belvita’s breakfast biscuit and Up & Go’s liquid breakfast. This 65-page report shows how, around the world from Asia to America, breakfast is being “snackified”. This means a wealth of new opportunities for companies in every food category.

Everyone wants a slice of breakfast: Every type of food or beverage company, in every category, either is looking at what they can do to get their own slice of the breakfast market or is in the process of launching or building up products.

Markets are being transformed: In 2014, sales of breakfast cereals in the US fell by 5% – equivalent to $300 million (€236 million). Of this number, $70 million switched to one brand – Belvita. The rest switched to a host of small brands. It’s a similar story in other markets.

Five success factors: Belvita, Oat So Simple and Up & Go are market-changing innovations that work because they deliver on the five factors proven to be key to success in the breakfast category. The report describes these five factors and how to apply them to your own product developments.

Give consumers what they don’t yet know they need: The big successes so far, illustrated by the five case studies in the report, show that any company with ambitions in breakfast should not rule out new product ideas because they are unfamiliar to consumers or too innovative.

PPT PDF

The Snackification of Breakfast

35 www.new-nutrition.com

4.5 Breakfast inspirations from around the world

Central and South AmericaMexicans usually have salty and spicy big meals for breakfast . Cheese, beans,

eggs and beef would be normal ingredients to include . In Brazil breakfast is similar to many European countries: bread with cheese,

ham, butter or jams, coffee and sometimes fruit . Marraquetas are a typical bread from Bolivia, with cheese or meat inside, that

are commonly eaten for breakfast . Generally, in this region breakfast is seen as a traditional meal, with people

sharing the same habits and preferences within countries . It is uncommon to

have it outside home or to skip it, however this is changing among younger

generations – in Brazil, 40% of the younger population skips this meal . (Source:

Unifesp)

Although breakfast cereals were not common in these countries, consumers

seem to be adopting this type of breakfast product . In Brazil,during the 1990s the increase of breakfast cereals consumption was 223% .It currently

represents a $607 million market . (Source: Euromonitor)Additionally, fast food chains in these countries have also launched breakfast menus adapted in some way to the traditional preferences of consumers .

NEW NUTRITION BUSINESS NEW NUTRITION BUSINESS

[BOX] Breakfast around the world: what is it and how it is changing. Central and South America Mexicans usually have salty and spicy big meals for breakfast. Cheese, beans, eggs and beef would be normal ingredients to include.

In Brazil the traditional breakfast is similar to many European countries. Composed of bread with cheese, ham, butter or jams, coffee and sometimes fruit.

Marraquetas are a typical bread from Bolivia, with cheese or meat inside, that are commonly eaten for breakfast. Generally, in this region breakfast is seen as a traditional

meal, with people sharing the same habits and preferences within countries. It is uncommon to have it outside home or to skip it, however this is changing among younger generations – in Brazil, 40% of the younger population skips this meal. (Source: Unifesp)

NEW NUTRITION BUSINESS NEW NUTRITION BUSINESS

Breakfast around the world: what is it and how it is changing. North America Several brands are focusing on developing innovative products targeting the breakfast occasion. These innovations are mainly related with more convenient product formats.

North America

Several brands are focusing on developing innovative products targeting the breakfast occasion . These innovations

are mainly related with more convenient product formats .

NEW NUTRITION BUSINESS NEW NUTRITION BUSINESS

[BOX] Breakfast around the world: what is it and how it is changing. Central and South America Although breakfast cereals were not common in these countries, consumers seem

to be adopting this type of breakfast product. In Brazil,during the 1990s the increase of breakfast cereals consumption was 223%.It currently represents a

$607 million market. (Source: Euromonitor) Additionally, fast food chains in these countries have also launched breakfast

menus adapted in some way to the traditional preferences of consumers.

Both chains, one in Brazil and the other in Argentina, present the typical ham and cheese c ro issan t / b read tha t i s commonly eaten for breakfast in these countries.

Both these chains, one in Brazil and the other in Argentina, present the typical ham and

cheese croissant/ bread that is commonly eaten for breakfast in these countries.

The Snackification of Breakfast

7 www.new-nutrition.com

living in urban areas. The main reasons consumers give for skipping breakfast are:• lack of time due to children• lack of time due to work• prioritise a lie-in• just don’t think about it• don’t like eating that early

A study of 500 young Americans (average age 23) found that 37% skipped breakfast. Of those who did eat breakfast, 25% consumed it away from home.Convenience is the number one need for younger consumers and it is these people who your innovative new breakfast product will be targeting. A product that recruits the breakfast skippers may present the biggest opportunity. Both Belvita and Up & Go

targeted skippers.Older consumers, particularly people over 65, are more likely to take time to prepare breakfast and

are – like the Weekend Breakfast occasion – a less attractive target group. For example, in the US market 95% of people over the age of 60 take breakfast at home.

1.3 Change before your competitors do

The changes driven by Belvita and others in breakfast are an example of how categories can change. No one in our industry can ever assume either that:

a) Category drivers are known and stable and the category will stay similar to what it is today.

b) A “wacky” or new idea has no chance of succeeding.

Consumers have shown themselves in every category to be willing to embrace the new. People also want more variety across all of their diet and they have shown themselves – across many different cultures – willing to experiment with new product types at breakfast.

The breakfast meal occasion has for some time been ripe for “disruptive innovation” – a term coined back in 1995 by Harvard Business School researcher Clayton M. Christensen to describe a product that overturns the existing status quo in a market. Christensen says that even when established firms recognise the existence of a disruptive innovation they are reluctant to take advantage of it, since it

would involve introducing a product competing with their existing (and often profitable) approach to the market. Christensen says established players can see these changes coming but are seemingly unable to do anything about it.This is exactly what has happened with breakfast biscuits. The success of Belvita breakfast biscuits isn’t a total surprise. Many, many major companies had at one time or another looked at the opportunity – and

CHART 3: BREAKFAST ON-THE-GO IS A GLOBAL NEED Example: Chinese shoppers are almost twice as likely to eat breakfast away from home during the week than any other meal .

Younger Chinese shoppers (under 40) are significantly more likely than other age segments to eat away from home - especially breakfast .

Percentage of people who eat the following meals away from home 2-3 times during the week or moreSource: Health Focus International

57%

33%

13%

Breakfast Lunch Dinner

The Snackification of Breakfast

3 www.new-nutrition.com

1. The reinvention of breakfast

NEW NUTRITION BUSINESS NEW NUTRITION BUSINESS

Weekday Breakfast at home

Weekdays 2nd Breakfast

Weekend Breakfast

•  At home, seated or standing •  60% of occasions consumed alone •  Habit driven •  Under time pressure •  “Healthiness” often a high priority •  Younger people and men most like to

miss this type of breakfast, older people most likely to be committed to it as a consumption occasion

•  At work •  Individual •  For some people consumed

soon after arriving at work, for others it is a mid-morning “refuelling” snack.

•  People willing to choose from a wide range of foods and drinks

•  At home. In some countries in a café or restaurant (American brunch for example). Younger/higher-income/education people in Australia and New Zealand more likely to eat away from home.

•  With family and/or friends •  Pleasure & fun •  More time devoted to breakfast •  Convenience matters much less

Weekday Breakfast on the move

•  The alternative to the breakfast at home.

•  At work or travelling to work (car or public transport)

•  Consumed alone •  Convenience is key •  People willing to choose from a wide

range of foods and drinks

CHART 1: THE FOUR TYPES OF BREAKFAST

BOX 1: WHAT DO WE MEAN BY “BREAKFAST”?

Breakfast varies widely in its meaning and composition in different countries and cultures . For the purposes of this report we define it as any food or drink consumed between waking up and lunch .

However, in terms of thinking about strategy and how you position a new product (or reposition an existing product) the most useful way to think about breakfast is shown on Chart 1, which sets out the four main types of consumption .

The Weekend Breakfast offers fewer opportunities for new breakfast products . This is essentially because it is less driven by time-pressure and people have less need for convenience – the key factor in successfully innovating with breakfast products, as the case studies show . With this in mind, this report is concerned with the weekday breakfast, not the weekend breakfast .

CHART 1: THE FOUR TYPES OF BREAKFAST

Breakfast has become one of the most intensely fought-over battlegrounds in the business of food and health and will stay that way for some time. There are many reasons for this, but the two biggest are:

• Thanks to time pressure it has become the meal occasion where people are most likely to skip a meal at home and eat on-the-go. As a result it is at breakfast that the trend towards the “snackification of everything” can be seen most clearly. It is no exaggeration to say breakfast has already been re-defined by snacking.

• The enormous success of two simple but effective disruptive innovations, Mondelez Belvita breakfast biscuits (see Case Study 1) and Sanitarium Up & Go liquid breakfast (see Case Study 2). These two have shown industry and retailers that – contrary to a lot of consumer

research which failed to spot this trend and claimed that people were conservative in their habits – young people and busy professional people in major urban centres are very willing to change their habits and are to be experimental with new types of breakfast foods (and drinks).

COMPANIES IN EVERY CATEGORY LOOK FOR A PLACE IN BREAKFAST

Possibly one of the most unenviable jobs to have right now would be that of a senior executive at Kellogg, General Mills/Nestle and another of the large established breakfast cereal companies.

Most of these companies looked at opportunities such as breakfast biscuits and breakfast drinks in recent years – only for senior management to dismiss

NEW NUTRITION BUSINESS NEW NUTRITION BUSINESS

Weekday Breakfast at home

Weekdays 2nd Breakfast

Weekend Breakfast

•  At home, seated or standing •  60% of occasions consumed alone •  Habit driven •  Under time pressure •  “Healthiness” often a high priority •  Younger people and men most like to

miss this type of breakfast, older people most likely to be committed to it as a consumption occasion

•  At work •  Individual •  For some people consumed

soon after arriving at work, for others it is a mid-morning “refuelling” snack.

•  People willing to choose from a wide range of foods and drinks

•  At home. In some countries in a café or restaurant (American brunch for example). Younger/higher-income/education people in Australia and New Zealand more likely to eat away from home.

•  With family and/or friends •  Pleasure & fun •  More time devoted to breakfast •  Convenience matters much less

Weekday Breakfast on the move

•  The alternative to the breakfast at home.

•  At work or travelling to work (car or public transport)

•  Consumed alone •  Convenience is key •  People willing to choose from a wide

range of foods and drinks

CHART 1: THE FOUR TYPES OF BREAKFAST

Published by Report

The Snackification

of Breakfast

by Julian Mellentin

How changing consumer habits

are creating new opportunities

March 2015 39

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

Please invoice my company – Please supply a purchase order. THE INVOICE IS PAYABLE IN 10 DAYS.

Please send a pro forma invoice so that I can arrange for pre-payment, I understand that once the payment is received you will complete my order.

I will send payment directly to your bank – NatWest, Law Courts, Temple Bar, 217 The Strand, London WC2R 1ALAccount No: 16663357 Sort Code: 60-80-08 Swift Code: NWBKGB2L IBAN: GB62NWBK60800816663357

I enclose a cheque payable to The Centre For Food & Health Studies Ltd

PAYMENT DETAILS

Pleasedebit my

Cardholder’s Name

Card number

Last 3 digits on signature strip Expiry date Valid from

PLEASE NOTE:• THAT CREDIT CARDS WILL BE DEBITED BY PAYMENT EXPRESS OR PAYPAL, OUR FOREIGN CURRENCY PAYMENT AGENTS.

• ALL ORDERS PRE-PAID WILL BE SENT A FULL-PAID INVOICE

Fax back to: UK +44(0)20 7900 1937 Email to: [email protected] Centre For Food & Health Studies Ltd, Subscriptions Dept, Crown House, 72 Hammersmith Road, London W14 8TH, UK.

www.new-nutrition.com

Cardholder’s Signature

Please circle the relevant currency £ $ € A$ NZ$ ¥ C$

(UK purchases pls+VAT)TOTAL

Name: Position:

Dept: Company:

Address: Country:

Phone:

Email: Fax:

CONTACT DETAILS Please Write Clearly

ORDER FORM

or Email [email protected]

N e w N u t r i t i o N

B u s i n e s s• prices shown for sole use only, licenses available

Purchase online at www.new-nutrition.com or fax this form to UK +44(0)20 7900 1937

BUY THE PDF & PPT TOGETHER & GET A 20% DISCOUNT

PDF POWERPOINT POWERPOINT PRICE PER REPORT IN PDF OR PPT – €400 / $530 / £320/ A$570 / NZ$620 / ¥55,000 / C$580 ONLY ONLY & PDF COMBINED PACKAGE FORMAT OF PDF & PPT – €530 / $715 / £415/ A$770 / NZ$850 / ¥72,000 / C$770

q q q 10 Key Trends in food, nutrition and health 2015

q q q The Snackification of Breakfastº

q Failures in Functional Foods and Beverages

q q q 12 Key Trends in food, nutrition and health 2014

q Lactose-free dairy: Opportunities, strategies and key case studies

q Kids’ dairy and snacking: 10 case studies in marketing and innovation

q q q Coconut water 2012

q q q Trends and strategies in healthy snacking: 15 key case studies

q Smart start-up strategy in healthy food and beverage

q The food & health marketing Handbook

The Snackification of Breakfast

Ordering is easy…see inside back cover or visit www.new-nutrition.com

Published November 2014

Breakfast has become one of the most fought-over battlegrounds in food and health, a battle fuelled by consumers’ need for easy and quick meals in the morning – and by two massively successful disruptive innovations, Belvita’s breakfast biscuit and Up & Go’s liquid breakfast. This 65-page report shows how, around the world from Asia to America, breakfast is being “snackified”. This means a wealth of new opportunities for companies in every food category.

Everyone wants a slice of breakfast: Every type of food or beverage company, in every category, either is looking at what they can do to get their own slice of the breakfast market or is in the process of launching or building up products.

Markets are being transformed: In 2014, sales of breakfast cereals in the US fell by 5% – equivalent to $300 million (€236 million). Of this number, $70 million switched to one brand – Belvita. The rest switched to a host of small brands. It’s a similar story in other markets.

Five success factors: Belvita, Oat So Simple and Up & Go are market-changing innovations that work because they deliver on the five factors proven to be key to success in the breakfast category. The report describes these five factors and how to apply them to your own product developments.

Give consumers what they don’t yet know they need: The big successes so far, illustrated by the five case studies in the report, show that any company with ambitions in breakfast should not rule out new product ideas because they are unfamiliar to consumers or too innovative.

PPT PDF

The Snackification of Breakfast

35 www.new-nutrition.com

4.5 Breakfast inspirations from around the world

Central and South AmericaMexicans usually have salty and spicy big meals for breakfast . Cheese, beans,

eggs and beef would be normal ingredients to include . In Brazil breakfast is similar to many European countries: bread with cheese,

ham, butter or jams, coffee and sometimes fruit . Marraquetas are a typical bread from Bolivia, with cheese or meat inside, that

are commonly eaten for breakfast . Generally, in this region breakfast is seen as a traditional meal, with people

sharing the same habits and preferences within countries . It is uncommon to

have it outside home or to skip it, however this is changing among younger

generations – in Brazil, 40% of the younger population skips this meal . (Source:

Unifesp)

Although breakfast cereals were not common in these countries, consumers

seem to be adopting this type of breakfast product . In Brazil,during the 1990s the increase of breakfast cereals consumption was 223% .It currently

represents a $607 million market . (Source: Euromonitor)Additionally, fast food chains in these countries have also launched breakfast menus adapted in some way to the traditional preferences of consumers .

NEW NUTRITION BUSINESS NEW NUTRITION BUSINESS

[BOX] Breakfast around the world: what is it and how it is changing. Central and South America Mexicans usually have salty and spicy big meals for breakfast. Cheese, beans, eggs and beef would be normal ingredients to include.

In Brazil the traditional breakfast is similar to many European countries. Composed of bread with cheese, ham, butter or jams, coffee and sometimes fruit.

Marraquetas are a typical bread from Bolivia, with cheese or meat inside, that are commonly eaten for breakfast. Generally, in this region breakfast is seen as a traditional

meal, with people sharing the same habits and preferences within countries. It is uncommon to have it outside home or to skip it, however this is changing among younger generations – in Brazil, 40% of the younger population skips this meal. (Source: Unifesp)

NEW NUTRITION BUSINESS NEW NUTRITION BUSINESS

Breakfast around the world: what is it and how it is changing. North America Several brands are focusing on developing innovative products targeting the breakfast occasion. These innovations are mainly related with more convenient product formats.

North America

Several brands are focusing on developing innovative products targeting the breakfast occasion . These innovations

are mainly related with more convenient product formats .

NEW NUTRITION BUSINESS NEW NUTRITION BUSINESS

[BOX] Breakfast around the world: what is it and how it is changing. Central and South America Although breakfast cereals were not common in these countries, consumers seem

to be adopting this type of breakfast product. In Brazil,during the 1990s the increase of breakfast cereals consumption was 223%.It currently represents a

$607 million market. (Source: Euromonitor) Additionally, fast food chains in these countries have also launched breakfast

menus adapted in some way to the traditional preferences of consumers.

Both chains, one in Brazil and the other in Argentina, present the typical ham and cheese c ro issan t / b read tha t i s commonly eaten for breakfast in these countries.

Both these chains, one in Brazil and the other in Argentina, present the typical ham and

cheese croissant/ bread that is commonly eaten for breakfast in these countries.

The Snackification of Breakfast

7 www.new-nutrition.com

living in urban areas. The main reasons consumers give for skipping breakfast are:• lack of time due to children• lack of time due to work• prioritise a lie-in• just don’t think about it• don’t like eating that early

A study of 500 young Americans (average age 23) found that 37% skipped breakfast. Of those who did eat breakfast, 25% consumed it away from home.Convenience is the number one need for younger consumers and it is these people who your innovative new breakfast product will be targeting. A product that recruits the breakfast skippers may present the biggest opportunity. Both Belvita and Up & Go

targeted skippers.Older consumers, particularly people over 65, are more likely to take time to prepare breakfast and

are – like the Weekend Breakfast occasion – a less attractive target group. For example, in the US market 95% of people over the age of 60 take breakfast at home.

1.3 Change before your competitors do

The changes driven by Belvita and others in breakfast are an example of how categories can change. No one in our industry can ever assume either that:

a) Category drivers are known and stable and the category will stay similar to what it is today.

b) A “wacky” or new idea has no chance of succeeding.

Consumers have shown themselves in every category to be willing to embrace the new. People also want more variety across all of their diet and they have shown themselves – across many different cultures – willing to experiment with new product types at breakfast.

The breakfast meal occasion has for some time been ripe for “disruptive innovation” – a term coined back in 1995 by Harvard Business School researcher Clayton M. Christensen to describe a product that overturns the existing status quo in a market. Christensen says that even when established firms recognise the existence of a disruptive innovation they are reluctant to take advantage of it, since it

would involve introducing a product competing with their existing (and often profitable) approach to the market. Christensen says established players can see these changes coming but are seemingly unable to do anything about it.This is exactly what has happened with breakfast biscuits. The success of Belvita breakfast biscuits isn’t a total surprise. Many, many major companies had at one time or another looked at the opportunity – and

CHART 3: BREAKFAST ON-THE-GO IS A GLOBAL NEED Example: Chinese shoppers are almost twice as likely to eat breakfast away from home during the week than any other meal .

Younger Chinese shoppers (under 40) are significantly more likely than other age segments to eat away from home - especially breakfast .

Percentage of people who eat the following meals away from home 2-3 times during the week or moreSource: Health Focus International

57%

33%

13%

Breakfast Lunch Dinner

The Snackification of Breakfast

3 www.new-nutrition.com

1. The reinvention of breakfast

NEW NUTRITION BUSINESS NEW NUTRITION BUSINESS

Weekday Breakfast at home

Weekdays 2nd Breakfast

Weekend Breakfast

•  At home, seated or standing •  60% of occasions consumed alone •  Habit driven •  Under time pressure •  “Healthiness” often a high priority •  Younger people and men most like to

miss this type of breakfast, older people most likely to be committed to it as a consumption occasion

•  At work •  Individual •  For some people consumed

soon after arriving at work, for others it is a mid-morning “refuelling” snack.

•  People willing to choose from a wide range of foods and drinks

•  At home. In some countries in a café or restaurant (American brunch for example). Younger/higher-income/education people in Australia and New Zealand more likely to eat away from home.

•  With family and/or friends •  Pleasure & fun •  More time devoted to breakfast •  Convenience matters much less

Weekday Breakfast on the move

•  The alternative to the breakfast at home.

•  At work or travelling to work (car or public transport)

•  Consumed alone •  Convenience is key •  People willing to choose from a wide

range of foods and drinks

CHART 1: THE FOUR TYPES OF BREAKFAST

BOX 1: WHAT DO WE MEAN BY “BREAKFAST”?

Breakfast varies widely in its meaning and composition in different countries and cultures . For the purposes of this report we define it as any food or drink consumed between waking up and lunch .

However, in terms of thinking about strategy and how you position a new product (or reposition an existing product) the most useful way to think about breakfast is shown on Chart 1, which sets out the four main types of consumption .

The Weekend Breakfast offers fewer opportunities for new breakfast products . This is essentially because it is less driven by time-pressure and people have less need for convenience – the key factor in successfully innovating with breakfast products, as the case studies show . With this in mind, this report is concerned with the weekday breakfast, not the weekend breakfast .

CHART 1: THE FOUR TYPES OF BREAKFAST

Breakfast has become one of the most intensely fought-over battlegrounds in the business of food and health and will stay that way for some time. There are many reasons for this, but the two biggest are:

• Thanks to time pressure it has become the meal occasion where people are most likely to skip a meal at home and eat on-the-go. As a result it is at breakfast that the trend towards the “snackification of everything” can be seen most clearly. It is no exaggeration to say breakfast has already been re-defined by snacking.

• The enormous success of two simple but effective disruptive innovations, Mondelez Belvita breakfast biscuits (see Case Study 1) and Sanitarium Up & Go liquid breakfast (see Case Study 2). These two have shown industry and retailers that – contrary to a lot of consumer

research which failed to spot this trend and claimed that people were conservative in their habits – young people and busy professional people in major urban centres are very willing to change their habits and are to be experimental with new types of breakfast foods (and drinks).

COMPANIES IN EVERY CATEGORY LOOK FOR A PLACE IN BREAKFAST

Possibly one of the most unenviable jobs to have right now would be that of a senior executive at Kellogg, General Mills/Nestle and another of the large established breakfast cereal companies.

Most of these companies looked at opportunities such as breakfast biscuits and breakfast drinks in recent years – only for senior management to dismiss

NEW NUTRITION BUSINESS NEW NUTRITION BUSINESS

Weekday Breakfast at home

Weekdays 2nd Breakfast

Weekend Breakfast

•  At home, seated or standing •  60% of occasions consumed alone •  Habit driven •  Under time pressure •  “Healthiness” often a high priority •  Younger people and men most like to

miss this type of breakfast, older people most likely to be committed to it as a consumption occasion

•  At work •  Individual •  For some people consumed

soon after arriving at work, for others it is a mid-morning “refuelling” snack.

•  People willing to choose from a wide range of foods and drinks

•  At home. In some countries in a café or restaurant (American brunch for example). Younger/higher-income/education people in Australia and New Zealand more likely to eat away from home.

•  With family and/or friends •  Pleasure & fun •  More time devoted to breakfast •  Convenience matters much less

Weekday Breakfast on the move

•  The alternative to the breakfast at home.

•  At work or travelling to work (car or public transport)

•  Consumed alone •  Convenience is key •  People willing to choose from a wide

range of foods and drinks

CHART 1: THE FOUR TYPES OF BREAKFAST

Published by Report

The Snackification

of Breakfast

by Julian Mellentin

How changing consumer habits

are creating new opportunities

March 201540

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

N E W N U T R I T I O N B U S I N E S Sw w w. n e w - n u t r i t i o n . c o m

S U B S C R I B E

Publication name Format Price per unit SOLE USE ONLY* Currency Amount

New Nutrition Business - 1 year subscription Print & Pdf €910/ $1200/ £765/ A$1330/ NZ$1550/¥110,000 /C$1200

New Nutrition Business - 2 year subscription Print & Pdf €1590/ $2100/ £1330/ A$2250/ NZ$2550/ ¥192,000 /C$2100

Kids Nutrition Report - 1 year subscription Print & Pdf €910/ $1200/ £765/ A$1330/ NZ$1550/¥110,000 /C$1200

Kids Nutrition Report - 2 year subscription Print & Pdf €1590/ $2100/ £1330/ A$2250/ NZ$2550/ ¥192,000 /C$2100

* Group subscriptions and company-wide internet licenses are available on request. Please email: [email protected]: Customers subscribing to one of the above publications are entitled to receive a 20% discount when they subscribe to the other.

I currently have a multi-user Premium/ Enhanced license. Please contact me with a renewal quotation.

PAYMENT DETAILS

Name: Position:

Dept: Company:

Address: Country:

Phone:

Email: Fax:

Delivery Address If different from Billing Address

BILLING ADDRESS Please Write Clearly

Please invoice my company – Please supply a purchase order. THE INVOICE IS PAYABLE IN 10 DAYS.

Please send a pro forma invoice so that I can arrange for pre-payment, I understand that once the payment is received you will complete my order.

I will send payment directly to your bank – NatWest, Law Courts, Temple Bar, 217 The Strand, London WC2R 1ALAccount No: 16663357 Sort Code: 60-80-08 Swift Code: NWBKGB2L IBAN: GB62NWBK60800816663357

I enclose a cheque payable to The Centre For Food & Health Studies Ltd

Card number

Last 3 digits on signature strip Expiry date Valid from

Fax back to: UK +44(0)20 7900 1937 Email to: [email protected] Centre For Food & Health Studies Ltd, Subscriptions Dept, Crown House, 72 Hammersmith Road, London W14 8TH, UK.

www.new-nutrition.com

Complete the subscription request below and fax to +44(0)2079001937or scan and email to [email protected]

or visit www.new-nutrition.com/strategy/about

Pleasedebit my

Cardholder’s Name

PLEASE NOTE:• THAT CREDIT CARDS WILL BE DEBITED BY WORLDPAY OR PAYPAL, OUR FOREIGN CURRENCY PAYMENT AGENTS.

• ALL ORDERS PRE-PAID WILL BE SENT A FULL-PAID INVOICE

Cardholder’s Signature