NAFFS Newswire - August 15, 2005
On-the-Go Foods Continue to Grow; Food Industry Working to Reduce Sugar in Foods; Consumers Still Like Enjoyment Foods; FDA Policy on Food Label Terms; and more.
ON-THE-GO FOODS
CONTINUE TO GROW U.S. consumers are increasingly opting for foods—especially healthier foods— that require minimal or no preparation. As a result, the market for "on-the-go" foods is expanding, both in terms of products and places where one can buy them, according to a new report from market research publisher Packaged Facts.
Consumers can now buy on-the-go meals at more traditional "sit-down" restaurants, supermarkets, convenience stores, and even vending machines.
"Americans now spend more than 100 hours a year commuting to work, and these statistics represent growth potential for convenient food products tailored for eating on-the-go," said Don Montuori, acquisitions editor of Packaged Facts. "In particular, car-friendly food packaging designed to be hand-held, spill-free, and cup-holder compatible is in heavy demand."
Other key trends noted include the steadily growing demand for gourmet sandwiches in foodservice channels and their untapped market potential in supermarkets, convenience stores, and other mass-market retailers; the impact that litigation and new and proposed legislation is having on food producers and marketers; and the increasing focus on combating obesity and related illnesses in the U.S. via healthier fare, including among kids. FOOD INDUSTRY WORKING
TO REDUCE SUGAR IN FOODS The U.S. Department of Agriculture estimates that the average American eats about 100 pounds of added sugars a year, up 30 percent since the 1980s.
Consumers are trying in small ways to clean up their act. Diet soft drink sales are growing at about 6 percent a year, while those of regular soft drinks are declining by as much as 2 percent.
Food manufacturers are doing their part by developing more reduced-sugar brands Some are cutting down slightly on sugar in their products or artfully combining high-intensity artificial sweeteners to find just the right combinations to mimic real sugar. Other companies are turning to the latest research in genetics and chemistry.
As NAFFS members know, shaving away sugar is no easy business. Sugar does much more than sweeten. It provides crumbliness to a cake's interior, crispness to its outside and a richer taste to a soft drink. And its sweetness is tricky to imitate. The industry has invested decades of research to developing and improving artificial sweeteners, which now represent a $1-billion-a-year market in the U.S.
The problems in removing sugar from products have sparked a revolution in taste science as researchers continue to try to figure out which combination of artificial sweeteners can produce the best taste. CONSUMERS STILL LIKE
“ENJOYMENT” FOODS
Despite the influx of health-focused food and beverage products produced each year for retail store shelves, U.S. consumers are still spending one-third of their consumer packaged goods (CPG) food and beverage budget on products consumed for pure enjoyment rather than nutritional value. According to a recent study by Information Resources, Inc. (IRI), Americans’ strong desire for taste, indulgence and variety has sustained spending and consumption of certain “enjoyment” food and beverage categories.
The report revealed 43 percent of consumers place taste above health benefits in the purchase decision process, showing healthy foods must meet or exceed taste expectations in order to increase share of consumer spending and consumption. The study also showed growth potential within the enjoyment food and beverage sector as today’s consumers are reportedly striving to balance their diets with indulgence of desserts and snacks.
Demographically speaking, households with children spend more on enjoyment products than those without, due to larger household sizes. Moreover, Baby Boomers and older generations allocate much more of their spending on enjoyment categories than Generation Xers and Echo Boom adults.
Growth of the enjoyment market will remain slightly hampered by healthy eating trends, which IRI predicts will drive a slow, gradual increase in allocation of spending to products with nutritional value. However, there are still considerable opportunities for manufacturers to increase their stake in these categories through the introduction of new product offerings and properly aligned distribution strategies.
For example, manufacturers should examine the potential for “light” versions of food categories. These versions have excelled in beer and carbonated beverages, but products in the ice cream, salty snacks and chocolate candy categories have not made major inroads over the years. The report suggests that manufacturers strive to enhance the taste of these types of food products. Premium products also have the potential to provide a good niche for manufacturers across mass market channels. These items, which offer greater tastes in exchange for higher calories and higher costs, have seen relatively strong growth during the past year. Variety in products, flavors and forms might also drive manufacturers’ success in the enjoyment marketplace. FDA POLICY ON
FOOD LABELS TERMS Because of the many inquiries regarding use of the terms – natural, vegan and vegetarian, and whole grain and 100% whole grain – Food Label News published clarification from FDA on the Agency’s policy for use of the terms in its August issue. No regulatory definition exists for any of the terms. An FDA spokesperson explained: Natural – FDA policy on the term is that the Agency will not restrict the use of the term “natural” on food labels except for those foods that contain artificial flavors, chemical preservatives, and added colors (from any source) as defined in 21CFR101.22. This is consistent with a Federal Register notice published on January 6, 1993.
Vegan and Vegetarian – FDA considers the terms to be types of diets. The Agency has not, and does not intend at this time, to develop regulatory definitions for those terms. The terms can be used on labels as long as they are truthful and not misleading. Whole Grain and 100% Whole Grain – The 2005 program priorities for FDA’s Center for Food Safety and Applied Nutrition included a B-list goal to develop a strategy to initiate rulemaking on claims for whole grains. B-list goals are not necessarily accomplished the year they are listed and, in fact, FDA has not reported on any progress this fiscal year. For now, the terms can be used on labels as long as they are truthful and not misleading.
Consumers who care about products labeled with the mentioned terms have expectations and retailers often have their own criteria for products they will accept bearing these terms. Manufacturers put themselves at risk of unwanted FDA scrutiny of label claims and/or loss of retail shelf space if label claims do not match expectations, the article concluded. NAFFS WELCOMES
NEW MEMBER NAFFS welcomes the following new member: Fontana Flavors Inc.
1260 Iroquois Drive #302
Naperville, IL 60563
Phone: (630) 369-7873
Fax: (630) 369-0634
E-mail: pvkrug@cifii.com
Contact: Peter V. Krug, President
Products: Savoury flavors October 27-30 – NAFFS 88th Annual Convention, The Resort at Longboat Key Club, Longboat Key, Fla. Feb. 10, 2006 – NAFFS Winter Meeting, NY, N.Y. April 25, 2006 – NAFFS Technical Meeting, Edison, N.J.
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