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N EW N UTRITION BUSINESS www.new–nutrition.com JULY 2014 ISSN 1464-3308 VOLUME 19 NUMBER 10 THE JOURNAL FOR HEALTHY EATING, FUNCTIONAL FOODS & NUTRACEUTICALS Pages 7-11 Pages 14-16 Pages 17-20 Continued on page 3 DSM Nutritionals, one of the world’s biggest ingredient companies, is adopting a direct-to-consumer strategy in a bid to prove the market potential of an ingredient that boasts two approved health claims - and at the same time provide inspiration to its industry customers worldwide. Oatwell is an oat ingredient that delivers a concentrated dose of the cholesterol-lowering beta-glucan component. When consumed regularly at a dose of 3g per day it produces a level of LDL reduction of 10%-12%. The Oatwell oat beta-glucan ingredient brand was brought into the DSM portfolio in 2012, when it acquired CreaNutrition, a science and marketing business owned by Swedish Oat Fiber, a leading oat bre supplier. Oatwell is already supplied as an ingredient to companies using it in breads, beverages and other applications. Now Oatwell branded consumer products are also available for the rst time. The Oatwell range had a soft launch in the UK in June 2014, initially retailing only through selected stores of the Boots chain, the UK’s largest drugstore chain, with over 2,500 stores. The Oatwell products, which have the endorsement of Heart UK, a heart health charity, include: Oat bran powder with oat beta- glucan. 1 portion (11g scoop) contains the full daily amount of oat beta-glucan (3g) Instant drink mixes in a variety of avour. One 15g sachet contains Ingredient giant enters B2C business to stimulate oat opportunities Return of the Doctor Failure prediction opens the door to failure prevention Chlorella: from bubble tea to desserts

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N E W N U T R I T I O N

B U S I N E S Swww.new–nutrition.com JULY 2014 ISSN 1464-3308VOLUME 19 NUMBER 10

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 7-11Pages 14-16 Pages 17-20

Continued on page 3

DSM Nutritionals, one of the world’s biggest ingredient companies, is adopting a direct-to-consumer strategy in a bid to prove the market potential of an ingredient that boasts two approved health claims - and at the same time provide inspiration to its industry customers worldwide.

Oatwell is an oat ingredient that delivers a concentrated dose of the cholesterol-lowering beta-glucan component. When consumed regularly at a dose of 3g per day it produces a level of LDL reduction of

10%-12%.The Oatwell oat beta-glucan

ingredient brand was brought into the DSM portfolio in 2012, when it acquired CreaNutrition, a science and marketing business owned by Swedish Oat Fiber, a leading oat fi bre supplier.

Oatwell is already supplied as an ingredient to companies using it in breads, beverages and other applications. Now Oatwell branded consumer products are also available for the fi rst time.

The Oatwell range had a soft

launch in the UK in June 2014, initially retailing only through selected stores of the Boots chain, the UK’s largest drugstore chain, with over 2,500 stores.

The Oatwell products, which have the endorsement of Heart UK, a heart health charity, include:

• Oat bran powder with oat beta-glucan. 1 portion (11g scoop) contains the full daily amount of oat beta-glucan (3g)

• Instant drink mixes in a variety of fl avour. One 15g sachet contains

Ingredient giant enters B2C business to stimulate

oat opportunities

Return of the DoctorFailure prediction opens the door to failure prevention

Chlorella: from bubble tea to desserts

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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 $1,100/€815/£700/¥ 95,000/A$1,330/NZ$1,550/C$1,150 (11 issues).For 2 years at $1,870/€1,390/£1190/¥ 162,000/ A$2,250/NZ$2,550/C$1,955 (22 issues).

All including fi rst 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.

© 2014 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.

LEAD STORY1,3--4 Ingredient giant enters B2C business

to stimulate oat opportunities

EDITORIAL5-6 Oats and chlorella signpost best

practice in science commercialisation

7-11 To predict and prevent failure, fi rst study it

12-14 Cognitive health: a trend or not?

CASE STUDIES15-17 COMMERCIALISATION: Chlorella

microalage: creating opportunity from bubble tea to frozen desserts

18-21 WEIGHT MANAGEMENT: Return of the Doctor

22--24 STRATEGY: Gluten-free, non-GMO and simple ingredients are key growth drivers for natural foods portfolio

25-26 TECHNOLOGY: Nestlé turns to Silicon Vally high-tech to leverage nutrition science

NEW PRODUCTS27-31 Functional & healthy-eating new

product launches

IMPORTANT NOTICE32 A polite reminder to our subscribers

REPORTS33 Failures – new edition 2014

34 12 Key Trends 2014

HOW TO SUBSCRIBE35 Case Study Order Form

36 Subscription Order Form

A4F ......................................................14, 16Activia ................................................8,21,22Algafarm ......................................... 14,15,16Allma ......................................... 5,6,14,15,16Annie’s Homegrown ..................................24Atkins Nutritionals ..................... 17,18,19,20Attune Wellness Foods .................... 21,22,23Axona .........................................................12BG22 .........................................................3,5Biogrow ........................................................3Brand New Brands ....................................21Coca-Cola ....................................................7CreaNutrition ...........................................1,3Danino .........................................................9Danone ................................ 8,9,11,12,17,21Dr Atkins .................................... 17,18,19,20DSM Nutritionals ...............................1,3,4,5Erewhon .....................................................23Essensis .......................................................11Facebook ....................................................24

Frulact .......................................... 5,14,15,16FruShape ....................................................14General Mills ........................................18,21Glowelle .....................................................11Google ........................................................24Jenny Craig ................................................17Kashi .........................................................21Kellogg ....................................................9,21Kraft ......................................................18,24Lean Cuisine ..............................................19Linea .........................................................8,9Lipton ........................................................8,9McDonalds ................................................20Mueller Dairy ..............................................9Nesfl uid ......................................................10Nestle ............................ 8,10,11,12,21,24,25NesVita ........................................................8Nutricia ......................................................12Nutrisystem ................................................17Oatwell .............................................1,3,4,5,6

Peace Cereal ..............................................23Post Foods ..................................... 21, 22, 23Phycom ......................................................15Red Bull .....................................................11Safeway ......................................................22Santini .....................................................5,15Secil ...........................................................14,Special K ......................................................9Souvenaid ..................................................12Target .........................................................24Tesco ..........................................................10Twitter ........................................................24Uncle Sam .................................................23Unilever .......................................................8Vitality ..........................................................9Walmart .....................................................24Wegmans ....................................................22Weight Watchers ........................................17Whole Foods Market .................................22

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L E A D

Continued from front page

the full daily amount of oat beta-glucan

• Oat-based cereal bars. One 35g bar contains the full daily amount of oat beta-glucan (3g)

Oatwell delivers 3g oat beta-glucan in each serve, meaning it provides the full cholesterol-lowering benefi t in a singe serve – the only commercially available ingredient which does so - and also meets the European Food Safety Authority (EFSA) conditions of use for the cholesterol-lowering claim for beta-glucans (see box on page 4).

Oatwell has over 20 published clinical studies in support of its benefi ts. “Our customers like that,” says Duess. “It is an advantage even if your Article 14 claim is for everybody, people like to see have you got your own science.

To get the same quantity of beta-glucan from regular oats someone would need to consume three bowls of oats per day. In eff ect, Oatwell provides the full benefi t of cholesterol-lowering in a more convenient but also natural form.

Although oat beta-glucans also

benefi t from an EFSA-approved claim for post-prandial glycemic response, for now Oatwell is focusing on the cholesterol-lowering message.

“With Oatwell our aim has to be the technology consumers, people who have a near-medical need,” explains Ruedi Duess, Global Business Manager for Oatwell.

“For our target market we are focused on one particular benefi t, talking about cholesterol to heart health conscious consumers, people of age groups 40+, who we know are looking at such alternatives.”

The additional benefi t of blood sugar management off ers future possibilities, says Duess, but it is not the target at the moment.

“PepsiCo is the leading company in oats in the world,” Duess continues, “but their Quaker brand is not going to sell a more medical story. They are going for a more simple oat story for their consumers in order to sell an everyday food in the supermarket.

“Rather we will stay in our niche and develop loyal consumers for the oats and heart health story and focus on developing value rather than huge

quantities in the supermarket.“One of the countries where a

customer has been very successful with the exact same concept is Malaysia,” adds Duess. “They don’t go mass and stick with the niche.” (see box below).

“Our intention is to create awareness of oat beta-glucan,” explains Duess. “But we recognize we are far from the day when everyone understands about oat beta-glucan. But being part of company that has global reach we can start this process to explain beta-glucan to industry and to consumers.

“When we were CreaNutrition, as a small company we did not have the resources to go out and work with a drugstore channel and develop the beta-glucan story,” says Duess. “but now as part of DSM we are in a very diff erent position to approach such channels

DSM, a B2B company, is making its fi rst venture into B2C in support of the launch of the Oatwell products in the UK Media communications include PR to the medical and consumer press and Oatwell’s launch was supported by an expert

MALAYSIAN ENTREPRENEUR SHOWS THE BEST WAY TO MARKET OATS’ HEALTH BENEFITS

After 45 years in the industry, Mr. LH Ong, CEO of Biogrow, in Malaysia, knows how to market health benefi ts.

His company launched BG22, a canister of oats with Oatwell, back in 2001. Two 9g scoops, consumed in 200ml of water, give 3g a day of beta-glucan – the threshold that delivers the cholesterol-lowering effect. Recently BG22 was also launched as a breakfast cereal.

Mr. Ong’s brand has taken an 80% share of the oat beta-glucan market – an intensely competitive sector in Malaysia, where more than 20 brands compete for a slice of business – despite selling at super-premium prices.

BG 22 has created this success by simply enabling people to “see the benefi t”.

“In Malaysia there are 28 million people,” Mr. Ong explained to New Nutrition Business. “6 million have high cholesterol. They are aged 40 and above, we target them. But not everybody knows they have high cholesterol.

“So we provide a free cholesterol-testing service at our booths in pharmacies. If they see they have high cholesterol, they automatically buy the product.“Since we launched in 2001 we have provided 30-40,000 free cholesterol tests. If people want a test normally they must pay - and the cost is about €3-€4 per test. Some people cannot afford that. I am giving it to them for free.”

Mr. Ong attributes this service, a relentless focus on only the cholesterol-lowering benefi t and distribution via pharmacies – not supermarkets – as the basis of BG22’s success.

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OAT BETA-GLUCAN BENEFITS FROM TWO APPROVED CLAIMS IN EUROPE

Cholesterol-lowering: EFSA approved an Article 14 claim which allows foods which enable people to consume 3g/day of oat beta-glucan (a minimum of1g of oat beta-glucan per portion) to display the following health claim:

Oat beta-glucan reduces the cholesterol level in the blood. The lowering of the blood cholesterol level can reduce the risk of coronary heart disease.

Blood sugar management: The reduction of post-prandial glycemic response relates to carbohydrate metabolism and insulin sensitivity, which are critical in the management of impaired glucose tolerance, common in obesity. This benefi t is achieved when products contain at least 4g of bioactive oat beta-glucan for each 30g of available carbohydrate per meal. The EFSA permitted claim reads:

Consumption of beta-glucans from oats or barley as part of a meal contributes to the reduction of the blood glucose rise after that meal.

panel on beta-glucan, available on YouTube: http://www.youtube.com/watch?v=c4FhHdtVPFQ

“Oatwell’s messages are perfectly aligned with consumers’ concerns,” observes Dr. Rob Winwood, Scientifi c Communications Manager for Nutritional Lipids and New Nutritional Ingredients. “It is 100% natural and non-GMO. GMO is getting to be a big discussion for grains. There are very few grains that are not aff ected - oats is one the few.

One strong platform that Oatwell is building on is that the European Society of Cardiology supports the consumption of oat beta-glucan as a secondary prevention measure for cholesterol-lowering.

“In the UK there is a move to blanket prescription of statins to people over a certain age, even without the individual having any risk of cardiovascular disease. Statins have a signifi cant eff ect on the whole body metabolism and for particular individuals may not be good. They are very eff ective - but in many cases they are like using a sledgehammer to crack a nut.”

“For those people who have side eff ects from statins Oatwell is a valid and natural way to lower their lipid profi le. The reduction is nothing like as drastic as statins, but as a fraction of oat fi bre even in huge amounts.

“Oatwell will have no harmful eff ects and it will have a very positive eff ect on blood lipid profi le. Sterols and stanols are widely known by medical community, glucans are new off the block and we have to building awareness among health care professionals.

Alongside the launch of Oatwell branded products Oatwell is still being marketed as an ingredient for those who want to use it in more lifestyle type products. “We very much hope to inspire brand owners in other countries,” says Duess. “2013 was one of best ever years, with a growth rate above 10%. We aim to sustain that.”

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E D I T O R I A L

Oatwell and Allma are two businesses which provide case studies of the best way to go about commercialising a new science-based ingredient. Both have a foundation in science, but one is part of a global ingredient giant, the other a small science-based start-up. One is leveraging a clinically-proven EFSA-approved heath claim, the other capitalising on a number of wellness benefi ts and outstanding sustainability performance.

One of the biggest challenges faced by anyone marketing a health ingredient or a healthy brand is how to communicate the health benefi t in a way that consumers can easily understand. Products with “naturally functional” intrinsic healthfulness (see New Nutrition Business 12 Key Trends, Key Trend 1) are at an advantage. Both Oatwell and Allma Chlorella connect perfectly to this trend:

• Oatwell is just 100% Swedish oats, milled

• Allma’s chlorella is just small plants – microalgae – grown in a closed environment using sunlight, then dried into a powder

Neither involves any complex chemical processing or questionable additives.

The cost of developing new science-based ingredients and setting up production facilities is high and ingredient marketers often come under shareholder pressure to race toward the mass market. More often than not, this turns out to be an expensive mistake.

Better instead to follow the steady path for commercialising ingredients that successful companies have learned to follow over the last twenty years. Here are some of the elements of best practice which are being followed by Oatwell and Allma:

1. Know your niche: technology consumer or the lifestyle consumer.

An important route to success lies

in the way you communicate and contextualize your benefi t for the consumer and how you select the target group of consumers to whom you will communicate.

Although it is part of DSM, which is a giant company which might be expected to be strongly motivated by maximising volumes as quickly as possible, Oatwell has wisely avoided the price-driven and crowded mass market and gone after the consumer group who will be most motivated by the cholesterol-lowering benefi ts, backed by a permitted health claim, that its products off er – the technology consumers (see Chart).

As Ruedi Duess, Global Business Manager for Oatwell explained to New Nutrition Business: “We will stay in our niche and develop loyal consumers for the oat and heart health story and focus on developing value rather than selling huge quantities in the supermarket.”

This strategy has already proven very successful for Oatwell’s partner in Malaysia, where the BG22 brand of oat beta-glucan has taken an 80% market share of the cholesterol-lowering niche, despite selling at eight times the price of regular oat products in the supermarkets.

Allma is aiming for a bigger niche, the lifestyle consumer, and focuses on its broader nutritional benefi ts, such as its very high protein content and sustainable carbon-neutral production. In the lifestyle segment you don’t need a health claim.

2. Work with innovative entrepreneurial partners, don’t embrace giants: In its niche Allma has partnered with a company called Frulact, which supplies fruit-based ingredients to the food and beverage industry. Frulact’s innovative mindset led it to create “pearls” of chlorella for use as a natural and novel (they are green) inclusion in bubble tea, which is one

of the fastest-growing urban lifestyle beverages in Europe. Another partner, Santini, an operator of upscale cafés, has also seen the value of chlorella and created a frozen dessert made with it. Neither of these applications could have been created by a mass-market company – they could only result from working with creative people who not only keep up with the latest trends but want to help create those trends.

3. Prove your concept with direct-to-consumer business: Faced with the extreme reluctance of many marketers – often a conservative and highly risk-averse group – to use new ingredients and communicate new benefi ts, the majority of ingredient suppliers don’t get past discussions with the client’s R&D team.

Frustrated by waiting and hoping that consumer brands will see the value in their ingredients, more and more ingredient companies are going direct-to-consumer in selected markets. It enables the ingredient supplier to demonstrate proof of concept in a way that can inspire potential customers, it enables you to learn how to succeed in marketing products based on your ingredients – knowledge which can be shared with customers – and very often these direct-to-consumer ventures become successful businesses in their own right. It’s something a of a new business model for the ingredient industry – but one that is becoming more common.

4. Focus: Companies often diff use both the science budgets and their communications budgets by trying to create multiple benefi t platforms for their ingredients. Such is the cost of establishing credibility (both market and science credibility) in even one platform that only large companies can aff ord to do this. All others must focus. Although

Oats and chlorella signpost best practice in science commercialisation

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oat beta glucans have numerous benefi ts and in Europe can use health claims for blood sugar response as well as cholesterol-lowering, Oatwell has focused on the cholesterol-lowering benefi t enabling it to drive very clear, targeted communications.

5. Become experts in marketing communications: Ingredient companies must be not just experts in science, but also experts in markets. Scientists naturally tend to recoil from this idea, but the good news is that scientists who learn about marketing usually make much, much better marketers than the people who have spent their entire careers in the marketing department, where – as the high failure

rate of most new products attests – they have little experience of applying rigorous thinking to business problems.

Brand owners’ NPD departments are too time-and-money-constrained to be able to work out how your ingredient might fi t into their types of products, so you can make life easier for them and make yourself look more committed by showing exactly how your new ingredient will add value, by doing the prototyping for them. Allma is doing exactly this with its partnership with a leading chef and food innovator, creating new applications and new prototypes.

In addition, signifi cant long-term investment in building awareness of the benefi ts of your ingredient is unavoidable and without it you will make no headway

in the food and beverage markets.The essentials of good communication

are trade media relations, white papers (to showcase your technical, application or market know-how), conference presentations, videos on your website - and anything else that you can creatively do to get noticed. In communications it pays to be as bold and daring as possible. If you are “too responsible” or conservative you will disappear into the background.

Successfully commercialising nutrition science is possibly the riskiest, most expensive, most time-consuming and most skilful element of the whole business of food and health. But the case studies of Oatwell and Allma show you how to do it right.

E D I T O R I A L

COMMERCIALISING SCIENCE SUCCESSFULLY

The chart below was developed to aid understanding of brand positioning 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.

Technology consumers – These are the early adopters, people who have a near-medical need for a product. They need the technology of the functional food to address their health condition. They see products in a medicalised context and, as with drugs, 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 but only if it supports their lifestyle.

Mass-market consumers – They are motivated by benefits available in products with low or no premiums, ideally from well-known brands.

TECHNOLOGY CONSUMERS

LIFESTYLECONSUMERS

MASS-MARKETCONSUMERS Solid line = sales volumes

Broken line = unit selling price

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E D I T O R I A L

“I like to study failure,” said the world’s third-richest man, Warren Buff et, speaking at a Coca-Cola shareholders’ conference. And at New Nutrition Business, so do we. There is often much more to be learnt from failures (other peoples - and your own failures) than from successes.

One of the things we do very well – better than anyone else - is to analyse the many failures in healthy foods and beverages. One of the reasons we do it very well is that since 2001 we have been creating detailed case studies that look at every aspect of a failed product – or food ingredient - including:

• Pricing• Marketing strategy• Brand messages• Brand strength• Health benefi ts• Taste and texture• Ingredients• Consumer beliefs• Competitive situation• …..and many other aspects

This has made it possible to identify the most common causes of failure – and conversely understanding failures has allowed us to also create a list of “golden rules for success” (for more information see Failures in Functional Foods & Beverages 2014).

These “golden rules” are not a rigid prescription that is right in every circumstance, but they are a useful checklist and it’s our observation that the most successful brands tend to score highly when compared to the

golden rules while unsuccessful ones usually break several of them.

WE DON’T WANT YOU TO “EMBRACE

FAILURE” OR “FAIL FAST, FAIL OFTEN”

There’s scarcely a business book or website that doesn’t say that successful entrepreneurs are those that have failed at least once before creating successful enterprises. And it isn’t diffi cult to fi nd business gurus advising us all with phrases like “embrace failure” or “fail fast, fail often”.

However, most entrepreneurs as well as small and medium-sized companies cannot aff ord to fail – not even once, let alone “often”. They have limited resources to invest in new products. A single failure may destroy everything they have worked for and “bouncing back” from such a

failure may take years.Our aim is to help people avoid

failures by studying what didn’t work for others.

If you are not a smaller company or entrepreneur but a big company or multinational with abundant resources with which to experiment and “fail fast, fail often”, you have a diff erent reason to read this report.

The challenge that big companies face is that many senior management teams operate in a state of cognitive dissonance – calling on their teams to innovate, yet at the same time shying away from any course of action perceived as risky. Shareholders, too, pressurise managements to innovate – but also punish them for any failures.

As a result, many major companies have in recent years become increasingly risk-averse and have failed to innovate – instead relying on

To predict and prevent failure, fi rst study it

Whether you are in ingredients supply or branded products or trying to commercialise nutrition science it’s important to know what causes failure. It we know what the most common causes of failure are we can design strategies and products that help us side-step these traps – and increase our chances of success.

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oung

E D I T O R I A L

acquiring small innovative start-ups. When these companies do create brands their focus is often to adopt risk-averse strategies.

ARE YOU A ‘ME-TOO’ OR DO YOU HAVE

A GENUINE POINT OF DIFFERENCE?

One of the biggest causes of failure is taking a product to market that’s a straight “me-too” with no real point of diff erence.

A very good example is Nestlé’s NesVita brand in Brazil – and an example of how even the best-resourced companies can get it wrong, as the Case Study in our report shows.

NesVita was a probiotic digestive health yoghurt, launched in Brazil in 2006. At that point there were already two probiotic digestive health yoghurt brands battling it out on the Brazilian market – Danone Activia and a local brand. NesVita was backed by a signifi cant marketing spend, including TV and print advertising and it had a 15% lower price than its direct competitor Activia.

But in terms of benefi ts, fl avours,

taste or any other parameter NesVita brought nothing that the two established brands did not already have.

Next Nestlé began to rely on an ingredient to diff erentiate itself – fi bre. The fi bre was given the brand name “Actifi ber” – but this new Actifi ber ingredient was not well explained by NesVita nor understood by consumers.

NesVita failed to build a distinctive, diff erentiated and value-based brand and product positioning. It never secured a market share of more than 5%-6% and it was taken off the market in 2009.

A HEALTH BENEFIT IS NOT ENOUGH

Surprisingly often companies rely on the health benefi t itself to create the only point of diff erence. One example was Unilever’s Lipton Linea range of weight management teas, launched in Europe in late 2007 as an extension of its then €1 billion ($1.4 billion) Lipton tea brand. The target consumer was women aged 25+ who already looked after their fi gures through diet and exercise and were

looking for a product which could help them achieve their goals. The product was not aimed at overweight people looking to lose large amounts of weight.

Each 500ml bottle contained 230mg of green tea catechins, roughly twice as much as in regular Lipton green tea and carried the prominent message:

Drink yourself into shape – every day.

Unilever held nothing back in its marketing campaign for Linea, which was launched in France in 2008, and soon after in Spain, Portugal and Greece with TV and print advertising, with Lipton Linea advertised heavily in women’s magazines targeting young women and also diet publications.

The Lipton Linea My 20 Days campaign encouraged customers to drink Linea twice a day for 20 days, and “see the diff erence”. In theory, this should have provided a “feel the benefi t”-type marketing advantage (one of the Golden Rules for success), such as that used by Kellogg Special K with its “drop a bikini size” and “drop a jeans size” promotions.

A BIG MARKETING SPEND COULD NOT PREVENT LINEA’S FAILURE

Lipton Linea advertised heavily in women’s magazines targeting young women and also diet publications

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E D I T O R I A L

These are tangible, concrete promises – and if the product delivers the customer feels a measurable eff ect.

But Lipton Linea lacked any solid promise – and consumers do not seem to have experienced any diff erence. If you are delivering a “feel the benefi t” promise, it needs to be tangible and measurable by the consumer.

Sales remained poor – in France sales were just €6 million ($8.3 million) – and by 2012 the product had been withdrawn in most countries. Given the high level of marketing expenditure we can speculate that it is unlikely to have given any return on that investment.

Among the brand’s problems were:

Failure to justify the price premium: The format and packaging were the same as “regular” products, making it too easy to compare with Lipton’s standard off ering – and see the 70% premium. That premium could have been achievable had the brand been strongly diff erentiated by its packaging.

Questionable benefi t: The feel the diff erence campaign was introduced too late and lacked a tangible promise. Consumers will pay a premium for brands that have a measurable benefi t they can experience, but Linea did not deliver on this.

Relying too heavily on the ingredient and the health benefi t as the reason to purchase: In the absence of diff erentiated packaging, amazing taste or a tangible benefi t, the brand relied on the health benefi t and the ingredient (green tea catechins) as the sole reasons to purchase. But these provided no point of diff erence: Lipton was entering a market which was already fairly mature – there were a great number of weight

management teas available already and there was nothing new in Lipton’s proposition.

INGREDIENTS NOT IMMUNE FROM

FAILURE

While brands are the most conspicuous failures, failure also happens remarkably often in B2B markets. Ingredient companies invest tens of millions in commercialising a new ingredient and establishing production facilities - usually over a period of fi ve years or longer before they can go to market. But what managements then do is to put their sales and marketing teams under huge pressure to get quick results – sometimes even when there are technical issues still to be ironed out.

If you are marketing an ingredient one of the key elements of strategy is establishing exactly what the benefi ts are and how they are going to be communicated to consumers.

Just because consumer awareness of an ingredient is high, that doesn’t mean that awareness will translate into sales, as omega-3 marketers found. With one or two exceptions, omega-3 brands failed or survive as niche products. Here are two examples:

Omega-3 for kids: Canada was the fi rst Western

country to permit omega-3 products to carry a health claim on their labels and use it in advertising, and Canadian consumers’ awareness of omega-3 is very high. This is due to intensive consumer education and public health campaigns to encourage ordinary Canadians to include more omega-3 in their diets.

In 2006 Danone Canada added omega-3 to its kids yoghurt brand

Danino and used the permitted health claims about omega-3 and children’s health both on the label and in advertising. But in 2010 it dropped omega-3 from Danino’s ingredient list after four years of trying to make omega-3 appeal beyond an ultra-niche.

Omega-3 for adults: In Europe, the German-based Müller Dairy decided, in 2006, to add omega-3 to its Vitality probiotic yoghurt and dairy drink brand, which it marketed in the UK. The brand was well established, with almost £70 million ($111 million/€87 million) in retail sales, but it had stopped growing. Müller hoped that omega-3 would revive and diff erentiate its brand. However in 2008 the company dropped the nutrient from Vitality’s ingredient list, following a 20% decline in sales, saying that: “We found in our new research that people simply weren’t interested in having omega-3 in a yoghurt product.”

You can invest as much as you like in technology and scientifi c substantiation, but if the consumer doesn’t accept your ingredient and doesn’t believe that it is necessary then your technology is of no use. If your ingredient lacks familiarity then you must be willing to spend time to educate them about it – or use another ingredient that they do accept.

INGREDIENT, BENEFIT AND PRODUCT FORMAT MUST MAKE SENSE IN THE

MIND OF THE CONSUMER

The inability to see a product’s benefi t platform through the eyes of the consumer is one of the most common causes of failure. It is

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essential to make sure that product, benefi t and ingredient together make sense in the mind of the consumer.

And if they do not make sense, you need to ask yourself what you should change, or whether you should develop a long-term plan to educate people in order to build acceptance of the combination you want to market.

The idea of fi bre-fortifi ed chicken, protein-packed water or probiotic pizza may seem illogical to many readers, but these concepts have all been tried in real life (often with predictable results).

FAILURE PREDICTION OPENS THE DOOR TO FAILURE PREVENTION

The big question is whether you can use an understanding of what has caused past failures to predict the risk of failure – and from there take steps to prevent it. Like Warren Buff ett, we believe that you can predict failure.

Let’s take as an example the idea of “beauty drinks”. A senior executive at Tesco, the UK grocery chain which is also the world’s third-biggest supermarket group, was recently quoted as describing beauty drinks as a “huge untapped market”.

People often point to Asia as the home of beauty drinks. But when it comes to skin and beauty, there are some cultural diff erences between Asia and western markets. Asian consumers are willing to accept the concept – although sales are not as high as is usually claimed in the west. Western consumers seem far away from accepting it – which is why every beauty drink launch of the past ten years (and there have been many) has failed.

The most high-profi le failure was Nestlé’s Glowelle, a drink which in terms of packaging, marketing, ingredients and taste “did everything right”. Yet it still could not win loyal buyers beyond a very small niche.

E D I T O R I A L

MULTIPLE MESSAGES ARE MUDDLED MESSAGES

The case of Nestlé’s Nesfl uid shows a group of marketers re-learning through failure the lessons that so many marketers have learnt over the last 15 years: if you want to market a brand effectively, keep the message as simple as possible.

Nesfl uid – launched in France in 2010 backed by a €12 million ($17.2 million) marketing spend – aimed to bring together the twin benefi ts of hydration and nutrition in a single concept called Nesfl uid HydraNutrition. Under this sat six individual products, offering six different health benefi ts, including:

• bones and immunity

• “balance the fl uids in the body”

• physical and intellectual vitality

• cell protection

• lipid metabolism

• anti-ageing

One year on, Nesfl uid had earned sales of less than €3 million ($4.3 million), despite retail penetration of 80%, according to supermarket sales data.

The idea that a single brand can be stretched to encompass multiple health benefi ts has been disproved again and again. Such stretches simply do not work and result in failure or at best ultra-niche levels of sales.

TASTE IS ALWAYS THE NO 1 PRODUCT FEATURE THAT DETERMINES SUCCESS OR FAILURE

Good taste is the single most important success factor for any product. What tastes good is a highly individualised concept, dictated by the culture we live within and what we are accustomed to. For example:

• Coconut water is a highly polarising taste that people either love or hate.

• In recent years more people have learnt to appreciate the more bitter notes of dark chocolate, driving huge increases in sales of dark chocolate. But many people still fi nd it too bitter.

What tastes good to one group of people will not be very exciting to another. That means that the only benchmark is whether the taste appeals to your target group of consumers.

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E D I T O R I A L

Feel the benefi t is key to success: One of the biggest challenges when you launch a product with a specifi c benefi t is that you must be credible. Red Bull became massive success because it promised “energy” and that it would “give you wings” – which it did by including a 75mg shot of caff eine, an ingredient whose stimulation eff ects are very clear and well-proven.

Delivering a benefi t that the consumer can quickly see or feel is one of the most compelling advantages that a product can have. If you off er a benefi t such as “better skin” or “fewer wrinkles” then people will expect that benefi t to be something they can experience. The benefi t has to perform as the sole reason-to-purchase.

The buyers of Glowelle or of Danone’s Essensis “beauty yoghurt” (another failure) could not see or feel themselves becoming “more beautiful”, even though the ingredients were carefully selected and the benefi t was clinically demonstrated. In fact Essensis communicated that it could to take up to six weeks for visible results to show. No-one is willing to wait that long for results. Buyers of both Essensis and Glowelle were people who did so as a matter of faith and “belief ” rather than tangible, quick results.

Product format and benefi t must make sense: Then there’s the question of the credibility of your product format in connection with the benefi t being off ered. The idea of skincare benefi ts from beverages and food is still new and relatively unknown in the West. As Danone said itself

when announcing the withdrawal of Essensis, such new concepts take time to get established.

Merchandising matters: With such a new benefi t there is also the credibility of where it is being off ered. Supermarkets are often the worst place to sell a product. Your package can become invisible among the thousands of other products, and fi nding the right aisle to put your product in can be a nightmare – especially when it brings a new benefi t that’s unfamiliar to consumers and not one that consumers have ever before associated with drinks. Moreover the supermarket is not the home of premium skincare products – you fi nd those in the shopping mall, the specialist store or the department store. The supermarket is where you fi nd cheap skincare products – so your price will need to compare with them.

Cost per dose comparisons must stand up to scrutiny: One beauty drink marketer is off ering a one-a-day dose at the equivalent of $2 per bottle. Which means that the loyal customer will be spending almost $700 a year. As a regimen that’s a cost comparable with using one of the leading brands of face-

cream. Few people would be willing to substitute a unknown beverage for their favourite – and trusted – brand of skincare lotion.

Share of mind for beauty belongs to topical products: while probiotic digestive products and energy drinks and many other products have brought a new benefi t to the customer and one that is often an unmet need, the benefi t of “nourishes your skin” is already addressed by hundreds of skincare lotions and creams. The concept of topical application has the dominant “share of mind” among consumers, and brands such as L’Oréal or Estee Lauder have, thanks to decades of massive marketing spend, a massive share of mind. Acquiring even a tiny share of mind in competition with such brands seems like an impossible task.

Clearly the risks in launching a beauty drink are high – and until a brand is able to overcome them, and in particular deliver a tangible “feel the benefi t” eff ect, we can safely predict that the risk of failure in this market is very high.

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A drinks market analyst recently announced that, “Brain health is the new frontier for functional food and drink”. But a close look at the underlying trends and the technologies available tells a diff erent story.

There’s much more to working out the potential and future growth of a health trend than simply looking at some medical statistics or some consumer research. Yet recent forecasters of a “brain health” trend seem to have done just this, highlighting the growing ageing population and how that means, “the market for preventative cognitive health products will grow.”

There is certainly no doubt that the consumer need is high and growing. But when you evaluate all the other parameters that determine the potential of a trend, it’s not a strong picture. Let’s look at a few of them (see Trend Diamond on next page).

Ingredients & technologies: The biggest challenge to kick-starting the cognitive health market is technical – fi nding a combination of ingredients that can both deliver a tangible eff ect and pass regulatory approval. Danone’s Nutricia division

appears to have done just this – but it had to license a patent from MIT to do it. As the box on Nutricia Souvenaid shows, the ingredient combination had to pass through three clinical trials. There are in fact very few ingredients that can deliver an eff ect such as reversing the symptoms of early stage alzheimers – and still be legal in food. That means smaller companies without the scientifi c resources are eff ectively excluded from the market.

Marketing strategies: because with cognitive health the issue is medical conditions you need not only to have credible science and ingredients, you need to be a company that can credibly market the product. That gives the advantage squarely to companies who have expertise in medical nutrition.

A product that reverses alzheimers is not going to be on sale in a supermarket – no-one would want to be seen with such a product in their shopping cart because of what it says about your health. Nor would the volumes sold be suffi cient to persuade supermarkets to let it have shelf-space. And if it is sold in the supermarket that might raise

a credibility question in the mind of the target consumer. The best channel is the drugstore – where the target consumers, aged over 60, are more likely to be regular shoppers. Selling it in the pharmacy re-assures the consumer that it is a “serious” and therefore probably eff ective product. This is exactly why Nutricia sells its Souvenaid brand only via pharmacies.

The main focus of marketing activity also has to be healthcare professionals working with seniors with these conditions (GPs, specialists, geriatric nurses). Like Souvenaid, you will need a dedicated website for healthcare professionals, containing information on clinical trials and dosages. To be credible with this group you will need to have good science, good clinical studies and also a credible brand.

Competitive landscape: this is getting crowded. As well as Nutricia’s Souvenaid there are other serious, science-based brands emerging, such as Nestlé’s Axona. It’s also the case that doctors are not trained to think of nutrition as a medical support – all of their training forms them to think of drugs as the best or indeed only

E D I T O R I A L

Cognitive health: a trend or not?

DANONE SOUVENAID – STRONG SCIENCE NEEDED TO DELIVER THE EFFECT

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E D I T O R I A L

solution in most cases. In cognitive health you are competing not only with other food and drink makers but the entire pharmaceutical industry.

Overall, unless your company has a very strong science base and/or a brand that can have credibility in the drugstore and with health professionals cognitive health is a risky and expensive area to enter – even before you tackle the diffi cult subject of securing a health claim approval.

Sooner or later some brave entrepreneur will overcome these risks. But for the foreseeable future, cognitive health is far from becoming a big enough trend to deliver much opportunity for most companies.

Consumer Need

Nutrition Science

Sales Trends

Marketing Strategies

Regulation

Ingredients & Technologies Competitive Landscape

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BRAIN HEALTH: TECHNOLOGY AND REGULATION MEAN IT IS A MEDICAL NUTRITION SPACE

Trends have to be evaluated over all of these parameters. The stronger the parameter the higher the score (5 being the highest) and the weaker the parameter the lower the score (1 being the lowest).

Although the consumer need for products for cognitive health is high, very few other factors line up in a way that suggests this can become anything more than a medical niche.

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COMMERCIALISATION CASE STUDY

How do you market an ingredient which, despite its impeccable natural and sustainability credentials and its massive nutritional advantages, has not yet entered the consciousness of most consumers – or the ingredients listings of larger food manufacturers? Chlorella microalgae supplier Allma is addressing these issues through a careful, incremental strategy: emphasising quality, allying itself with innovative partners to build a critical mass of data and R&D, while also expanding its volumes and range.

The Portuguese company is a joint venture (JV) between bioengineering business A4F and cement manufacturer Secil. This makes perfect sense, says business development manager Sofi a Mendonça, given that Secil’s operations emit CO2 and microalgae production is a recognised way of locking down CO2.

The Kyoto Protocol came into force at the end of 2004, increasing government-level pressure to restrict the impact of carbon emissions. The JV followed soon after, with the Algafarm production unit north of Lisbon being developed between 2006 and 2007, says Mendonça.

Food industry customer Frulact – which supplies fruit-based ingredients to blue-chip food companies globally and markets jams, beverages and smoothies to consumers – describes the specifi c type of microalgae

sourced from Allma, Chlorella vulgaris, as having “enormous potential”. Says innovation and technology manager Pilar Morais: “This is a sustainable, natural and nutritional ingredient, fully aligned with the current ‘hot’ market trends of naturality and wellbeing through healthy, sustainable choices.”

Chlorella off ers a potent nutritional cocktail explains Mendonça: “It’s a good source of complete vegetable protein – up to 55% protein – including all nine essential amino acids.” Among other key components are omega-3 fatty acids, a range of essential minerals, vitamins in the A, B and C groups, and some E vitamins, carotenoids and chlorophyll (the highest content among all living organisms, says Allma), and other pigments benefi cial to eye health – lutein and zeaxanthin.

“We’re busy studying the functional side, from Chlorella’s antioxidant properties to immunity stimulation and its detoxifying properties,” says Mendonça.

So it is slightly surprising that, according to Allma, annual volumes of food-grade Chlorella vulgaris powder worldwide are only in the region of 3,000 to 5,000 tonnes. Up to 90% of these estimated volumes are currently supplied from Asia, Mendonça reports. And today, around 80% or 90% of this total is routed towards the supplements market.

On this basis, the opportunity for Chlorella – and other microalgae – as a food and drink ingredient is huge, particularly in Europe and North America, where it is less well-known than in Asia.

“I strongly believe that the food industry will catch up with the dietary supplements market as a user of Chlorella,” says Mendonça. “But that will take time.”

At Frulact, Morais says: “We’ve tested it as an ingredient in many applications such as yoghurts, spreads, smoothies, chutneys, bubble teas and FruShape – patented fruit shapes developed by Frulact.”

FruShape may have won an R&D award last year, but it is the bubble tea product – containing tiny pearls of Chlorella – which appears to be having the greatest impact, as the company plans how to take production to an industrial scale.

“Frulact is mainly a business-to-business company,” says Morais. “We are looking for clients who will place this ingredient in the market, focusing on the innovative, disruptive ‘wow’ factor. We believe the bubble tea concept is steadily growing in Western Europe.”

With those key characteristics in mind, Allma is following the now well-proven, best-practice model for successfully commercialising a new ingredient – initially targeting the innovative companies who know how

Chlorella microalgae: creating opportunity from

bubble tea to frozen dessertsIt’s very high in protein, has an excellent nutritional profi le and can be produced in a sustainable way with zero risk of contamination. Microalgae has been around as a food ingredient for a long time, but has tended to be overlooked by food and beverage producers – until now. Portugal-based supplier Allma may just be entering the market at the right moment – and by developing applications with innovative companies it is already making microalgae a quiet success and an ingredient that product developers are increasingly taking seriously. By PAUL GANDER.

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COMMERCIALISATION CASE STUDY

to reach the “lifestyle” consumers – the growing group of people (accounting for 25% or more of the population in most markets) who are interested in anything new, healthy or sustainable.

Last year (April 2013), NNB reported on Dutch company Phycom’s Meerbrood breads, incorporating 5% Chlorella pyrenoidosa microalgae. Just one benefi t has been a dramatic cut in the amount of added salt required.

Allma has also worked with a manufacturing partner in the bakery area. “At baking temperatures of 180°C and over, the colour is maintained,” says Mendonça. “There are minor losses of some vitamins and pigments, but most of the protein and certainly the mineral content is still there.”

She sees huge potential for Chlorella in other starch-based

products, from breakfast cereals to cereal bars. “Snacks are not usually associated with health,” she adds. “But if you can transform your brand that way, it could be a great opportunity.”

The supplier is already working with frozen desserts business Santini in Portugal, where its Greenfest Chlorella-enriched fruit sorbet is proving popular in its chain of cafés.

The product combines pineapple, lemon and orange with 1.3% Chlorella powder for a distinctive green colour. It has proved popular with customers, who bought 280 litres of Greenfest in an initial two-week trial.

“Our customers are always looking to be inspired by new ideas and Greenfest, our Chlorella sorbet, has done just that,” explains Eduardo Santini, Director of Santini. “People are increasingly subscribing to the

view that ‘green is good’, so a treat like Greenfest seemed certain to be a winner – and it proved to be a real hit.”

Nor is Frulact short of further ideas for applications. Savoury spreads, pates, sauces and blends with spreadable cheese and mayonnaise are all being looked at. “We’ve developed blends of vegetables and Chlorella to obtain naturally green-coloured products, with the possibility under European legislation of making ‘source of iron’ or ‘high in iron’ nutritional claims,” says Morais.

According to Allma, weight-for-weight Chlorella contains around 300 times more iron than spinach.

“Organoleptically, we have the characteristic ‘clean’ note of Chlorella, with no off -fl avours, usually associated with cooked shellfi sh,” says Morais. “We believe this profi le is advantageous if we

A HIGH-PROFILE LIFESTYLE BRAND CHOOSES CHLORELLA

Santini, with its distinctive cafes and trucks, is one of the best-known brands in Portugal. Santini has used Allma Chlorella in a fruit sorbet which has proven popular.

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COMMERCIALISATION CASE STUDY

associate the natural health benefi ts with the recognised and much-loved concepts of the Mediterranean and Atlantic diets.”

She adds: “For some applications such as smoothies and sweet fruit yoghurts, the fl avour profi le is improved by balancing the microalgae with citrus fruits and other acidic notes. In this segment, we believe it is the high protein content of Chlorella which off ers the added value.” This is another trend which dairy businesses are following very closely, she says.

As Frulact points out, Chlorella’s range of nutritional and functional benefi ts would allow manufacturers in various categories to diff erentiate their products still further in terms of claims made.

Allma, too, is busy diff erentiating itself from other Chlorella suppliers, principally on the basis of quality. Director João Navalho has said: “The market for microalgae ingredients is very buoyant, but most of what is available today is sold as a commodity, with very little focus on quality.”

According to Navalho, with its current target of 100 tonnes per year, Allma aims to combine high volumes with superior nutrient content and purity.

So while in some locations, microalgae are grown in open systems with a far greater likelihood of contamination, the Portuguese company uses closed-pipe photo-bioreactors. Similarly, although the longer-term aim is to treat Secil’s CO2 emissions from the cement process and channel them into production, Algafarm is currently using food-grade CO2 instead.

A4F’s track record – and Allma’s original target market – was in biofuels. “From around 2011, we started to look at the opportunities for food-grade Chlorella,” says Mendonça. One consideration was the scarcity of food reserves.

“We recognised that Chlorella is an exceptional alternative to other vegetable protein sources.”

One reason for Allma’s choice of Chlorella vulgaris as its prime food industry product is that, unlike most other types of microalgae, there was suffi cient evidence of use up to 1997 for it not to be treated as a novel food within the EU.

Gearing up for food-grade production meant implementing and working within all the recognised quality management systems, Mendonça says.

“The various suppliers of Chlorella have diff erent production methods,” she states. “If you can control your process more closely, you can deliver a higher-quality product.” In the past, she points out, there have been issues with the purity of some microalgae destined for food and supplements market, particularly relating to heavy metal content.

Currently, all Allma’s food-grade Chlorella is spray-dried and supplied as a powder, though Mendonça says other formats will be available in future.

With cement plants in several countries, there is no reason why Secil and Allma could not replicate the Algafarm set up in diff erent

regions – such as Brazil – she says. Alongside expansion, Allma sees its

role as demystifying the product and educating opinion makers in the food industry about its potential. “In some cases, we go to the company with suggestions or even prototypes,” says Mendonça. “But in other cases, it works the other way around. Frulact had the vision to suggest Chlorella in bubble tea, for instance.”

To showcase the potential of its Chlorella powder, Allma has an application development partnership with renowned Portuguese chef Vítor Sobral. Alongside Mr Sobral, Allma works with customers to create new food and beverage products that harness the many benefi ts of microalgae. The development kitchen is backed by Allma’s scientifi c support team.

What else is needed before larger European food manufacturers take the initiative? “We need scale fi rst, but also greater knowledge of the product in food technology terms: for example, how it behaves at diff erent temperatures and at diff erent acidity levels.” These, too, are areas of focus for Allma.

SOME CHLORELLA FACTS

• Based in Portugal, Allma supplies sun-grown Chlorella vulgaris powder for use in a wide range of food, beverage and dietary supplement applications. Because of the closed production process it can be guaranteed free of contaminants, as well as being rich in protein, and containing phytonutrients, Omega 3, vitamins and minerals.

• Production is at a new state-of-the-art Algafarm facility in Leiria, 100km north of Lisbon, Portugal.

• Allma’s Chlorella is cultivated in water and grows naturally through photosynthesis in transparent tubes exposed to sunlight, known as photo-bioreactors. In these closed conditions, Chlorella cells are protected from contaminants such as dust, bird droppings and insects. After reaching an optimal biochemical profi le, Allma’s Chlorella biomass is pasteurised and spray dried to preserve its rich nutrient content.

• Allma is a joint-venture collaboration between A4F, a Portuguese biotechnology company specialising in the design, construction and operation of large-scale algae production sites, and Secil, one of Portugal’s largest cement companies.

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WEIGHT MANAGEMENT CASE STUDY

Traditional weight-loss brands in the US have been hit by two major developments:

• the discrediting of the type of low-fat, low-calorie diets they promote

• the proliferation of dietary and exercise apps and online services that provide free-of-charge the services provided for a fee by brands such as Weight Watchers, Jenny Craig and Nutrisystem, all of which have suff ered big falls in their business.

Atkins Nutritionals, on the other hand, is benefi ting from these trends. The rise of high-protein, low-carb diets is seen by many as validating the basic weight-loss strategy developed and promoted by Dr. Robert Atkins 30 years ago and which peaked in popularity about 10 years ago.

“The science keeps coming our way: it shows that low-carbohydrate, low-sugar diets are more eff ective and fundamentally healthier than traditional low-calorie, low-fat diets, for many people,” Scott Parker, chief marketing offi cer for Denver-based Atkins Nutritionals, told New Nutrition Business. “From our research, low-carb diets are now neck-and-neck with low-cal, low-fat diets in what average Americans are planning to use for their next weight-loss eff ort. There is a fundamental groundswell in this change of attitude.”

As a result, the numbers keep going Atkins’ way as well:

• Revenues have almost tripled over the last three years. Parker

declined to specify the new level, but Atkins reportedly had sales of $100 million (€73 million) in 2010, suggesting almost $300 million (€219 million) by 2013. For comparison, Atkins brands had sales of around $700 million (€512 million) back in 2003.

• Atkins expects that, by the end of this year, the brand will have overtaken Jenny Craig and other traditional diet brands to become No. 2 in the $2.4 billion (€1.75 billion) US weight-loss industry, to Weight Watchers, both because of Atkins’ burgeoning revenues and because most of the long-time industry leaders by contrast are struggling.

• The brand’s share of weight-loss products sold at retail has jumped by 20 percentage points over the last few years, Parker said.

• Atkins Frozen Meals was ranked by supermarket scan-data fi rm IRI as the 10th most-successful new product launch in the US in 2013, with sales of $74 million (€54 million). For comparison, the biggest new product on the list was Dannon Light & Fit Greek yogurt, with $144.9 million (€106 million) in sales.

Atkins is enjoying a renaissance both because of its dietary philosophy and message and because of how well it is exploiting the moment in the form of new products and services.

It’s impossible to miss how American dieters are beginning to eat diff erently. There are plenty of cultural and business indicators of the change:

• a new cover story in Time magazine, “Ending the War on Fat”

• the proliferation of protein-

Return of the DoctorConsumers are slowly embracing the idea that protein is benefi cial for weight management, that they should be careful about their carb consumption and in many markets the media are reporting that saturated fat may not be the villain it has so long been portrayed as. So it isn’t surprising that in the US the Dr. Atkins brand – sold under the name of the man who fi rst popularized these ideas over ten years ago – has seen its sales treble and is on track to become the second-biggest weight management brand after Weight Watchers. By DALE BUSS.

Atkins Frozen Meals was ranked by supermarket scan-data fi rm IRI as the 10th most-successful new product launch in the US in 2013, with sales of $74 million (€54 million).

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enhanced mainstream products ranging from Kraft’s P3 snack (cheese, meat, peanuts) to new Cheerios Protein cereal by General Mills

• and popular new dietary regimens based on “paleo” eating or on the no/low-carb strictures advocated by the books Wheatberry and Grain Brain.

So one wouldn’t know, Parker said, that low-carb diets already were “the most-researched type of diet over the last 15 years. It just takes the scientifi c community a while to build up a consensus around a change in their point of view. We’re really at a tipping point now on that.

DISCREDITING OF LOW-FAT DIET ADVICE LIFTS ATIKINS

“Traditional low-calorie, low-fat diets are struggling because on those diets you tend to eat a lot of carbs, and those are processed as sugar, and then you end up being quite hungry all the time,” Parker said. “Most people really end up quite unsatisfi ed and hungry, so they can’t maintain that diet.

“On the fl ip side is the Atkins approach, which actually calls for moderate protein and higher fat, which provides satiety among other benefi ts, so that people can actually be full and lose weight.”

Beyond a consumer shift that favors the brand, Parker said, Atkins also has “improved our diet and added much more food variety than in the early days of the program” for dieters who follow an overall Atkins plan based on commonly available foods with recommendations for some consumption of Atkins-branded products such as frozen meals, shakes and nutrition bars.

“We have a much more balanced diet, with added fruits and vegetables and whole grains as you proceed through the program,” Parker said. “From day one, when you go on

Atkins, we encourage you to eat amounts of vegetables that actually exceed USDA recommendations.”

What’s also striking is how Atkins helps people not by focusing solely on its own branded products by providing information about what everyday fresh and natural foods they can eat for a healthy low-carb lifestyle, with recipe tips available on its website and facebook page and app.

In fact also important to Atkins’

rising popularity is that the brand appears to have caught the digitization wave: it has nearly one million people registered for a free app that helps people follow the Atkins program.

Atkins expansion into frozen meals has also paid off handsomely. About three years ago, Atkins management began considering new products to add to its tired and traditional lineup of shakes and bars.

The primary criterion was “what

WEIGHT MANAGEMENT CASE STUDY

CHART 1: DR ATKINS FROZEN MEALS SUCCEED DESPITE PREMIUM PRICES AND A FALLING MARKET

Below we compare the prices of the leading frozen meal brands in the US. To allow for like-for-like comparison are the meals are chicken-based with a protein content in the range 17g-22g (Atkins is the highest at 22g). The price per pack is converted to an equivalemt price per kilo.

Dr Atkins frozen meals were the 10th most-successful new product launch in America in 2013 with sales of $74 milion.

By contrast, sales of Lean Cuisine fell by 11%, sales of Healthy Choice fell 16% an Weight Watchers sales fell 13%

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8

10

12

14

16

18

Dr. Atkins255g$4.50

Weight WatchersSmart Ones 255g

$2.50

Nestlé Lean Cuisine 266g

$3.00

ConAgra Healthy ChoiceCafé Steamers 313g

$2.90

$17.65

$9.80

$11.28

$9.27$ per kg

equivalent

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WEIGHT MANAGEMENT CASE STUDY

are the new products that would best facilitate our followers’ success on the program,” Parker explained. Atkins customers told them their biggest challenge was being able to make Atkins-compliant meals from scratch.

“A lot of people don’t cook nowadays, and some are even intimidated by following recipes,” Parker said. “It’s time-consuming and complex. They needed a no-brainer alternative.”

So the notion of frozen meals fl oated to the top. The idea of providing perfectly pre-formulated

and pre-prepared meals for diet acolytes was hardly new, with Weight Watchers, Lean Cuisine and many other brands having established the segment. However, those brands were beginning a sales slide for the segment that has intensifi ed, in part because of greater consumer preferences for fresh foods (see case study US frozen meals market in meltdown? in New Nutrition Business, June 2014).

But for Atkins there was an opportunity to create a point of diff erence. Parker noted: “There

was virtually no low-carb alternative in the frozen aisle. Our research indicated there would be a signifi cant opportunity for our followers to enjoy the convenience and nutrition of an Atkins frozen line.”

According to Larry Levin, general manager of consumer and shopper insights for IRI, put it: “The success of Atkins Frozen Meals is about convenient and fast and better-for-you eating, because consumers love their protein. They have become a great partner for consumers who look to have their protein in a quick way.”

Atkins helps people not by focusing solely on its own branded products but also by providing information about what everyday fresh and natural foods they can eat for a healthy low-carb lifestyle, with recipe tips available on its website and facebook page and app.

ATKINS HAS ACQUIRED MORE FACEBOOK LIKES – 417,000 – THAN ANY OTHER BRANDED DIET PLAN

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The meals were introduced in six varieties in early 2014, featuring whole-food ingredients such as premium meats, rich creams, vegetables and 7g net carbs or less in every meal. They also include more than 16g of protein and 310 to 420 calories.

Similarly, following their customers’ wish list – or what Parker called “pinch points, product-usage situations where our users need our help” – Atkins soon will be introducing a breakfast sandwich akin to McDonald’s classic Egg McMuffi n, with egg, cheese and sausage in a variety of forms, and a low-carb English muffi n.

“This is a direct refl ection of consumers saying that they need something a little more substantial than a shake for breakfast some days, or they’re on the run and don’t have time to make breakfast,” Parker said. “This makes it easier for them to stay with the [Atkins] program.”

FREE DIGITAL SERVICES KEY TO BRAND

All of these developments have given Atkins much more to say to the weight-loss market at the same time that digital media have provided more diverse platforms for the Atkins message. The brand has more Facebook “likes” than any of its close competitors, “by far,” Parker said.

“And our levels of engagement are very high,” Parker said. “So we’re developing a wonderful core of followers via social media and we’re utilizing that viral messaging to continue to build that audience, as well as more traditional media.”

Overall, in fact, Atkins has shifted its media spend so heavily to digital that about 35% of its marketing budget now goes to social media in the like, “which is pretty much in line with best-in-class companies” of all sorts at this point, he argued.

The Atkins brand increased its advertising-media budget this year to more than $10 million (€7.3 million),

50% higher than a year ago, which in turn was 50% higher than in 2012. Its continuing usage of traditional media includes big doses of public relations as well as widespread use of Sharon Osbourne, the wife of British rock star Ozzy Osbourne who’s become a staple of American talk and entertainment shows. “She lost 35 pounds [16kg] using Atkins and

has kept it off for well over a year,” Parker observed.

But Atkins Nutritionals still hasn’t observed what might prove to be the biggest marketing boon of all. “No one has come out yet and said, ‘Dr. Atkins was right all along,’” Parker said. “But at some point, someone will.”

WEIGHT MANAGEMENT CASE STUDY

BACON WITH EGG & CHEESE NUTRITION FACTS PANEL

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S T R A T E G Y C A S E S T U D Y

Since its acquisition in 2012 by Post Foods, America’s third-biggest breakfast cereal company, Attune Foods has been stretched far beyond its original mission of selling probiotic chocolate bars. It now has a total of seven better-for-you cereal and granola lines aimed at those American consumers who are most focused on nutritional and natural values such as organic, gluten-free - and non-GMO attributes. Meanwhile the larger, pre-existing part of Post continues to focus on the mainstream ready-to-eat cereal market with its Honey Bunches of Oats franchise.

“By combining all seven brands, [Attune] can off er 360-degree solutions to the [retailer] trade and to our joint customers to ensure that consumers have a vast array of options based on their desires, taste profi les and nutritional needs,” Rob Goluba, director of marketing for Attune, told New Nutrition Business. “So while Post has a healthy and better-for-you line, the biggest diff erence is our expertise and dedication to the natural-specialty consumer and trade.”

It’s an area where it has been wise for Post to invest heavily as competition intensifi es in the space. “The growth of cereal sales in the natural channel is attracting companies of all sizes,” said Goluba, noting that General Mills’ Cascadian Farms brand and Kashi, owned by Kellogg for several years, have been

formidable-enough rivals from the start. “We’re also seeing more niche types of companies, local providers, who also are attracted to the channel.

“Everyone seems to be coming with more and more competitive and unique off erings. It forces us to stay on our toes and be very nimble and innovative and bring things to market maybe even a little bit faster. That’s something we’re responding to with everyone’s increased awareness of opportunities in the natural channel.”

PROBIOTIC CHOCOLATE AN UNEASY FIT

IN A NATURAL CEREALS PORTFOLIO

While Attune has successfully aligned itself with the key trends in grain-based foods it has one product in its range which is very diff erent from the natural cereals business – and has long been a misfi t in the market.

The Attune Wellness Foods company was originally created

back in 2006 with a sole focus on launching probiotic nutrition bars. It was backed by Brand New Brands, a now-defunct health-focused, high-profi le venture capital business founded by multi-millionaire beverage entrepreneur John Bello, and with an ownership stake by Nestlé. Other investments in the portfolio included Dreamerz, a dairy beverage to improve sleep quality, and LightFull Foods, a marketer of smoothies for satiety and weight management and Corazonas, which markets cholesterol-lowering chips and bars. The fi rst two of these brands are defunct, the third surviving as a niche business.

Attune launched its probiotic bars in the wake of the success of Activia, Danone’s probiotic yogurt brand, which was introduced to the US market in 2006, where it achieved $130 million (€95 million) in sales in its fi rst year.

Gluten-free, non-GMO and simple ingredients are key growth drivers

for natural foods portfolioAttune Foods has perfectly aligned itself with the growing consumer interest in cereals that are natural, “free-from” and made with grains other than wheat. But alongside this successful strategy it is also faced with breathing new life into a probiotic brand with an unusual merchandising strategy. By DALE BUSS and JULIAN MELLENTIN.

Attune probiotic bars were launched back in 2006, a time when the company’s original founders thought that the best way to sell a probiotic bar brand was to merchandise it alongside yoghurt.

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S T R A T E G Y C A S E S T U D Y

When launched, the bars came in two types: 180-calorie, 1.4oz (40g) granola bars in four fl avors (Wild Berry, Lemon Crème, Mango Peach and Strawberry Bliss) that originally retailed for a suggested $1.69 (€1.24) each, and 100-calorie, 0.7oz (20g) chocolate bars in four fl avors (Mint Chocolate, Chocolate Crisp, Blueberry & Vanilla and Dark Chocolate) that retailed for $1.29 (€0.95). Attune was gluten-free, vegan and all-natural, as well as containing fi ve times the quantity of live cultures found in yogurt.

Eight years later the range is down to Dark Chocolate, Mint Chocolate and Chocolate Crisp.

Attune is a rare survival from a period when tens of companies tried to piggy-back on the success of Acivia by launching probiotic foods in a wide range of categories. But it turned out that for consumers yoghurt was the most credible carrier of probiotic benefi ts and the probiotic cereals, sausages, pizzas and the like have long gone.

Attune bars were once in distribution in mainstream supermarket chains such as Safeway and Wegmans, as well as natural

stores like Whole Foods Market, but the brand’s performance was never spectacular and since 2011 sales have fallen sharply. According to IRI supermarket scanning data, Attune had sales of just $6.7 million (€4.9 million) in the year to May 2014 – a 46% decline over the year before.

A big part of the challenge for Attune is its very unusual merchandising – it’s a probiotic chocolate bar that consumers fi nd in the chiller cabinet next to the yoghurts, not on the open shelf.

The brand has seen its sales tumble, Goluba said, mainly because of “competition with yogurt companies” for space in the increasingly crowded dairy case – where most American supermarkets are adding space but not fast enough to accommodate the explosion in new products due to the Greek yogurt phenomenon.

“We’re competing with yogurt brands for that space,” Goluba said. “We have a unique off ering that is loved by people who currently are aware of it and who purchase it today. But we’re competing now with big Greek-yogurt brands for space inside the cooler. Several retailers

do see that we are off ering a unique probiotic solution, and they’re supporting us. But Attune is still a very small brand in that section, and it’s a challenge to compete against the larger yogurt brands that are seeing explosive growth and are better-funded to capture that space than Attune is.”

Attune bars are gluten-free, and the Dark Chocolate fl avor is also dairy-free, “which may be attracting some small quantities of consumers,” Goluba said. “But probiotics remain the core attribute.” And while Attune hasn’t been threatened with signifi cant direct competition in a refrigerated-bar format, Goluba said, “Our biggest competition is the dairy products that are highlighting probiotic benefi ts.

“Our research has shown that the awareness and understanding of the benefi ts of probiotics is pretty high and shows up high on the list of what the organic and natural specialty consumer is looking for, seeking digestive health and immune support,” he said. “The benefi ts of probiotics have become well understood by a small but growing percentage of the population, which presents another big growth opportunity.”

A PROBIOTIC OPPORTUNITY AND A

MERCHANDISING LEGACY

The challenge Attune’s management faces is a legacy of the belief of the company’s original founders that the best way to sell a probiotic brand that was positioned as an alternative to probiotic yoghurt was to merchandise it alongside the yoghurt. Even back in the years 2006-10 that was diffi cult – since the price of each Attune bar made it a straight 50% premium to a single pot of yoghurt, a premium which has widened as competition has driven down the price of yoghurt. At the same time American consumers have added “Greek-style” and protein to their other interests to

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S T R A T E G Y C A S E S T U D Y

the point these have become much more important than probiotics.

By contrast with the legacy of Attune probiotic bars, the rest of the Attune portfolio is perfectly aligned to current consumer interests:

• Erewhon: its major positioning is around “free-from”. Most of its cereals are gluten-free, and also free of common allergens lactose, soy, peanuts and tree nuts.

• Uncle Sam: still based on a formula that was launched in 1908, it is a wheatberry-based cereal that has only three other ingredients: fl ax seed, barley malt and salt.

• Hearthside Foods: with $70 million (€51 million) in sales Hearthside’s brands are Golden Temple, Peace Cereal – a non-GMO line, and Sweet Home Farm and Willamette Valley granolas.

Sales of Erewhon and Peace have been exceeding category growth for several years. But other brands require some adjustments to renew growth. Uncle Sam, for example, is sold mainly in conventional supermarkets rather than in the faster-growing natural products channels such as Whole Foods stores, and its growth has slowed lately, Goluba said, so that it is only “pretty

consistent” with the rest of the slow-growing ready-to-eat cereal category.

Here are trends that Attune believes are going its way:

1. Simple ingredient lists: American consumers increasingly are looking for “simple ingredients whose names they can pronounce and that they can understand,” Goluba explained. “This is a strength of Attune brands that we’re looking to expand even further.” Erewhon and Uncle Sam brands, in particular, he said, “don’t have any ingredients that aren’t necessary and aren’t functional.”

2. Organics: Despite the signifi cant cost premium for organic products including Attune’s, and despite the continued confusion by American consumers over the actual benefi ts of organic eating, “We defi nitely believe the growth of organics is going to be long-term in this country,” Goluba said. “We are just scratching the surface in terms of the number of consumers who are aware of the benefi ts.” And while trade associations continue ramp up educational eff orts behind organic foods, Attune itself is “going to take the approach of being as transparent as possible and really simplifying organics,”

in part by tying organics to short product lists.

3. Non-GMO: Again, this is an attribute that “is seen as the minimum standard in products by the consumers we’re targeting,” Goluba said. “For new products, we’re trying to make sure that non-GMO verifi cation is part of what they bring to the table. Organic and non-GMO are the minimum guard rails we see for new-product development targeting the natural trade channel.”

4. Gluten-free: This “defi nitely has been a positive for the Erewhon brand and somewhat for Attune,” Goluba said. One of the most popular new Erewhon varieties, for example, combines buckwheat and hemp, which is gluten-free. Yet, he said, not al Erewhon products are gluten-free; raisin-bran cereal and graham cracker are among them. And Attune plans to keep introducing robustly better-for-you cereals that aren’t necessarily gluten-free. “Rye and barley contain gluten but they have other nutritional benefi ts that we may look to add in a cereal for the Erewhon brand,” he said.

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TECHNOLOGY CASE STUDY

Silicon Valley remains the epicenter of digital innovation worldwide, the home of tech giants including Google and Facebook and an entrepreneurial enclave so powerful that its ideas and products are reshaping the entire world of business.

Thus it’s little surprise that a growing number of major consumer brand companies have established outposts in or made signifi cant connections with Silicon Valley technologists and ideas people and are attempting to harness their expertise and innovations in the service of their brands. Typically, their eff orts are specifi cally in the direction of improving their performance in the better-for-you arena.

PAIRING OF TWO AREAS OF UNIQUE

EXPERTISE

Nestlé is one of those major that has established an outpost in Silicon Valley. “It’s helping us chase the next big thing as it relates to solving specifi c pain points in our business and to get an edge in areas of strategic importance,” Mark Brodeur, global head of digital marketing innovation for Nestle, told New Nutrition Business. “With Nestlé’s commitments to nutrition, health and wellness, we really think that technology and e-business services can come up with new solutions and add value for us in that critical area.”

Nestle already is spending more than $2 billion a year on R&D.

“There’s a lot of value we can bring to some of the startups in Silicon Valley and vice versa,” Brodeur explained. “It’s about fi nding the right matches and getting in early and trying to provide the expertise and support that only Nestlé could, and develop any solutions collaboratively. One thing we’re not likely to do is develop such solutions on our own. That’s not what we do and not what we do quickly, and there are a lot of things we can do better.”

The auto industry was fi rst to establish a presence in Silicon Valley, with Ford, General Motors, Nissan and Honda chasing digital phenomena ranging from navigation systems to on-board Wi-Fi to the upcoming “driverless” automobile. Giant retailers including Walmart and Target have also opened satellite offi ces or acquired small development players in Silicon Valley as they attempt to transform themselves into key e-commerce brands.

Food and restaurant companies haven’t been far behind. McDonald’s, for example, reportedly hired engineers from PayPal, Facebook, AOL and Yahoo to staff the digital shop it recently opened in San Francisco, the city whose suburbs include Silicon Valley. Kraft hasn’t gone so far as to set up its own shop in California, but its executives have been meeting with leaders of Twitter, Google, Facebook and other Silicon Valley tech companies to fi gure out

how to inject a more digitally savvy vibe into Kraft’s own operations.

California has been a hotbed of healthy food start-ups since at least the early 1980s. Annie’s Homegrown for example, America’s No. 1 organic brand, has had its headquarters in in Berkeley, California since 1984. Better-for-you food and beverage startups also have begun to establish themselves in Silicon Valley, a phenomenon that is an off shoot of some of the other interests of the huge population of young high-tech employees in the region.

A MIXING BOWL OF HEALTHY FOOD

START-UPS

One new manifestation of the new culture of healthier food start-ups companies in Silicon Valley was the recent initiation of an industry get-together called Mixing Bowl. At the inaugural meeting in June 2014, about 350 representatives of big food and IT companies and startups, venture-capital fi rms and digital academia mingled and talked about how they could work with one another to advance nutrition and sustainable agriculture worldwide.

Nestlé’s US operations long have been based in southern California. But for any greater digital understanding that has given the behemoth company, Nestlé USA might as well have been based in the middle of the Pacifi c Ocean. Silicon Valley is

Nestlé turns to Silicon Valley high-tech to leverage

nutrition scienceNestlé is turning to Silicon Valley to leverage its $2 billion annual R&D spend, for example making tie-ups with digital health startup incubators and investigating digital “wearables” in a bid to fi nd new opportunities for its Health Sciences business. By Dale Buss.

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TECHNOLOGY CASE STUDY

partly a product of California, but its domination of the digital world and its unique business culture make it a world apart from the rest of the state.

So Nestlé opened its outpost there about a year ago. “We were already bringing unique expertise to the table in nutrition, health and wellness,” Brodeur explained. “With the startups here that that are working in this space, we think we can provide additional value compared with our competitors.”

Nestlé is attempting to get as many potentially rewarding digital-technology plays as possible into the pilot phase. They include shopping apps, recipe access and other more-or-less typical digital manifestations of brands’ marketing plans. “How can we go beyond what’s out there already, something that diff erent and also provides something that only Nestlé could.”

HOW TO LEVERAGE KNOW-HOW AND SCALE

One such area of focus, for example, is improving Nestlé’s digitally based customer-relationship-management systems, focusing on how and when to respond to customer feedback and how to use virtual reality and “augmented reality” technology to encourage people “to spend a little bit more time learning how to balance their plates, for example, and how to incorporate new ingredients into recipes. At the core of this is health, nutrition and wellness.”

More important for Nestlé’s eff orts in Silicon Valley is the deep dive the company has been making into medical foods and other science-based nutrition solutions that address medical issues through its Nestlé Health Science division, Brodeur said. “We think there might be interesting solutions here in nutraceuticals and disease-solving as well as those that help caregivers and patients themselves. It’s a pure consumer play that may go into things a lot of

[competitors] are doing but also the special opportunities that Nestlé [has] as a bigger, bolder nutrition health and wellness company.”

For example, Nestlé is probing its Silicon Valley connections for ways to apply new technology to its research and expertise in dementia to assist doctors, nurses and other caregivers. “Being here allows us to be at the forefront not only with technologists but also with people who have a blend of technology and other knowledge,” he said. For instance, Nestlé has been studying potential tie-ups with the digital-health startup incubator at the University of California-San Francisco and with a business accelerator begun by Rock Health.

“We’re exploring what partnerships with them might look like,” Brodeur said. “And how can these outfi ts help us identify the right types of companies or individuals that have similar objectives to ours in terms of trying to solve issues? How can Nestlé leverage its know-how and scale with them to create a ‘better mousetrap’ together.”

DIGITAL WEARABLES TO MONITOR MEDICAL CONDITIONS?

The company is also looking to Silicon Valley to help develop next-generation hardware such as digital “wearables” including watches and other devices. “They could become much more powerful in terms of delivering one-to-one solutions based on the actual medical condition of people and biometrics,” he said.

Nestlé currently has just three employees at its Silicon Valley outpost, which isn’t a big enough staff for the company to vet every technology, application or other potential development in the area. “So there’s a big effi ciency play here,” Brodeur said. “Even if we had 10 to 20 people out here, there are tens of thousands of startups, so we rely heavily on our partners and [marketing] agencies to help us. They know the two to three

areas of interest to us and where we’re interested in moving the needle. So what new technologies and new players have solutions that could be brought to market quickly?

“We’re typically not looking for two guys and a dog,” he continued. “We want things that can be tested relatively quickly but, more important, can scale – or, for a company like Nestlé, it’s never going to have an impact. So we work with these folks to do some screening for us, and when we get a shorter list of high-potential candidates, that’s when we engage and go deep.”

Brodeur also said that the relatively small Silicon Valley staff can be much more highly eff ective in communicating their fi ndings within Nestlé. That’s because, he said, Nestlé “can quickly share learnings throughout the company” even though its operations are relatively decentralized by product types and geographically. “That can happen almost instantly through the network we’ve established.”

Overall, he said, Nestlé already is seeing “the development of a critical mass” for the company in Silicon Valley. “Startups there see that there are some real benefi ts of working with big brands, and because someone like Nestlé has begun to build out some pilots now, we’re getting a lot more traction. We have a lot more credibility than when we started here.”

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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 Maninis Gluten Free Maninis Gluten Free Miracolo Pane

Classic Peasant Bread MixMade with ancient grains and Natural Hi-maize resistant starch. Excellent source of fi ber and contains no bioengineered ingredients, beans, rice or gluten.

USA Julian Bakery Julian Bakery Paleo Bread Almond Bread

Free from GMO and gluten, and contains 60 calories, 1g of carbohydrate and 5g of fi ber per serving.

BREAKFAST CEREALSUSA General Mills General Mills Cheerios Protein Oats &

Honey CerealComprises toasted wholegrain O’s, combined with crunchy granola clusters and real honey, will help the consumer keep going with long lasting energy. Good source of protein and a good source of fi ber. Contains at least 29g of 100% wholegrain per serving and 14 vitamins and minerals.

Canada Prosnack Natural Foods Elevate Me Cocoa Coconut with Chia Seeds Instant Oatmeal

Wheat-free, high fi bre product is made with Elevate Energy Bar Crumble, which consists of dates, raisins, almonds, apples, and cranberries. Retails in a 60g individual serving pack, each serving containing 10g of protein. Also available: Brown Sugar Maple with Chia Seeds Instant Oatmeal.

USA Kind Kind Healthy Grains Raspberry Clusters with Chia Seeds

Made with 100% whole grain oats, millet, quinoa, amaranth and buckwheat that are rich in nutrient. All natural, low in fat, contains 35% less sugar and 0g trans fat and is free from gluten and GMO. Contain chia that is a source of fi ber, omega-3 and fatty acids and calcium and helps maintain steady blood sugar levels.

DAIRYUSA Fairlife Fair Life Chocolate Milk With high protein, high calcium and vitamins A and D. Low in sugar, lactose free

and made with 38% less fat than whole milk, 50% more protein and less sugar than the leading chocolate milk.

USA Fage USA Dairy Industry Fage Total 0% All Natural Nonfat Greek Strained Yogurt

Made with live and active cultures, all natural.

Canada Parmalat Lactantia Croissance Smart Growth 2% Partly Skimmed Milk

Relaunched under a new brand name and with a new look. It contains omega-3 DHA which is a factor in normal growth and development. Milk comes from cows fed an enriched diet containing DHA omega-3 fatty acid.

DESSERTS & ICE CREAMUSA Ouhlala Gourmet Buddy Fruits FruitBreak Blended

Superfruit with Blueberry & Blackcurrant Pouch

Naturally gluten- and GMO-free snack contains nothing artifi cial.

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

Dairy-free GMO-free snack contains nothing artifi cial. Rich with vitamins, minerals, and antioxidants, coconut milk offers great health benefi ts in addition to delicious fl avor when blended with tropical fruit.

FRUIT & VEGETABLESUSA Ocean Mist Farms Ocean Mist Farms SuperShreds

Superfood Brussels SproutsA good source of fi ber, excellent source of vitamin C, rich in antioxidants, free from gluten, GMOs, artifi cial ingredients and preservatives.

USA NewGemFoods NewGem Foods GemWraps Carrot Wraps

Made from fruit and vegetable purée, contains nothing artifi cial, no added sugar, free from gluten and GMO, and is a good source of antioxidants. Equivalent to six carrots per bag, said to be an easy way to add more fruit and vegetable servings into a daily routine. Also available: Barbeque Wrap Sheets.

USA NewGemFoods NewGem Foods GemWraps Made from fruit and vegetable purée, contains nothing artifi cial, no added sugar, is suitable for vegans and vegetarians, is free from gluten and GMO, and is a good source of antioxidants. Equivalent to 2.5 tomatoes per bag.

HOT BEVERAGESUSA Nuzee Coffee Blenders Lean Dark Roast +

Weight Loss CoffeeAll natural and functional and contains 0 calories and 0g sugar. The 100% Arabica coffee contains Svetol, an all-natural green coffee bean extract that can help to lose weight. Focus Dark Roast + Cognitive Performance Coffee contains Cereboost, a fast-acting ingredient that is clinically proven to improve concentration and memory.

JUICE DRINKSUSA Bai Brands Bai5 Antioxidant Infusions Brasilia

Blueberry BeverageRepackaged with an updated design. Naturally sweetened, superfruit infused beverage packed with antioxidants and the ability to crush free radicals. With organic coffeefruit and exotic fruit juices, only fi ve calories per serving. The low-GI beverage contains no soy, GMOs, gluten, artifi cial colors or preservatives.

USA Happy Tree Happy Tree Maple Water Comprised of nutrient-rich early season water from sugar maple trees in the early spring. The maple water is never heated, has nothing added, free from preservatives. It contains B vitamins, antioxidants and fi ve primary electrolytes. Provides 88% of the daily value for thiamin and 20% for ribofl avin, which the manufacturer claims are metabolism-boosting and rehydrating, and the key to maintaining a healthy weight.

USA Vital Juice Vital Juice Co. Vital Almond with Greens Cold Pressed Juice

USDA certifi ed organic product, naturally sweetened with dates and vanilla bean, and contains cucumber, fi ltered water, apple, almonds, kale, dates, spinach, lemon, ginger and vanilla bean. Contains 60% juice and 40% almond milk, high pressure processed for freshness and is free from GMOs, added sugars, agave, lactose, trans fats and cholesterol.

USA Vital Juice Vital Kids Mrs. Beet Juice Made with orange, carrot, beet & almond milk. USDA organic certifi ed juice drink is free from GMOs, puree, fi llers or added sugar. It contains over two cups of 100% organic fruits & veggies with almond milk for protein and a creamy texture that kids are said to love. Contains 90% juice and 10% almond milk, said to be an excellent source of vitamin A and C, is high pressure processed for freshness.

USA All Market Vita Coco Lemonade Flavored Pure Coconut Water

Contains only natural ingredients and is never from concentrate. It is jam-packed with naturally occurring electrolytes and has more potassium than a banana, which helps keep the body properly hydrated.

USA Freshbev Project Fresh No. 31 Whole Deep Beet Blend Organic Juice

Organic, cold-pressed craft juice made with a micro milled and high pressure process. Free of gluten and GMO. Described as bursting with vitamins, minerals and enzymatic activity. Alvailable: No. 30 Whole Deep Kale Blend Organic Juice.

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N E W P R O D U C T S

OTHER BEVERAGESUSA Wal-Mart Parent’s Choice Vanilla with Fiber

Nutritional ShakeBalanced nutrition to help kids thrive, is free from gluten and suitable for lactose intolerance. Excellent source of calcium with prebiotics, antioxidants, 26 vitamins and minerals, and provides 240 calories and 7g of protein. Contains scFOS, which is a prebiotic dietary fi ber that supports the immune system and 32mg of DHA per serving.

USA Abbott Laboratories Abbott Ensure Original Vanilla Nutrition Shake

Relaunched with a new name in a newly designed pack and with a new formulation that contains 30% less sugar. This naturally and artifi cially fl avored shake contains 24 vitamins and minerals, and is suitable for people with lactose intolerance. It provides 9g of proteins and 220 calories per serving.

USA Abbott Laboratories Abbott Glucerna Rich Chocolate Shake

Designed for people with diabetes with Carbsteady, which includes slowly digestible carbohydrates to help minimize blood sugar spikes. This naturally and artifi cially fl avoured gluten free shake is suitable for lactose intolerance but not for people with galactosemia.

USA Level Foods Level Life Milk Chocolate Protein Shake

Contains 15g protein, 1g sugar and 4g net carbs in each serving. Designed to fi ght high blood sugar, support healthy blood sugar, help lose weight, fi ght hunger, help control carbs and manage diabetes without sacrifi cing taste, nutrition or convenience. Free from gluten and lactose.

USA The Jel Sert Company GNC Live Well Energy Grape Flavored Liquid Water Enhancer

A B vitamin liquid water enhancer. It features zero calories, 50% DV of vitamins B3, B6 and B12, and 30mg of caffeine per serving.

USA Heartland FPG Skinny Girl Water Enhancer 3 Pack Claimed to squeeze a splash of fl avor into water. This gluten free product is sweetened naturally and provides fi ve calories and 245 servings per bottle.

USA Quaker Oats Quaker Strawberry Breakfast Shake Blended with wholegrain oats and contains 8 grams of whole grain, 10 grams of protein and 6 grams of fi ber per serving. Also available: Chocolate Breakfast Shake.

USA Water Sensations Water Sensations Citrus Flavored Liquid Water Energy Infusion LiquiPacks

Naturally sweetened and contain natural caffeine, B vitamins and zero calories. Said to mix instantly, without the need of stir or shake; it can just be added to plain or sparkling chilled water.

SNACKSUSA Level Foods Level Life Caramel Chocolatey Peanut

Protein Snack BarContains 11g protein, 4g sugar and 6g net of carbohydrates per serving. Targeted at diabetics and support a reduced carbohydrate program designed to fi ght high blood sugar, fi ght hunger and help with weight loss. For those watching carbohydrate or sugar intake, staying level doesn’t mean you have to sacrifi ce taste, nutrition or convenience.

Canada The Good Bean The Good Bean Original Salted Chickpeas

Crispy, crunchy and lightly dusted with coarse salt. The wherever-whenever snack is claimed to be high in healthy fi ber and is free from gluten, nuts, soy, GMO and artifi cial ingredients. Has much less fat than nuts.

Canada Maple Leaf Consumer Foods Maple Leaf Natural Selections Protinis Glazed Oven Roasted Chicken & Mango Complete Protein Snack

This 23% meat protein chicken with natural ingredient provides 12g of protein, 100 calories and 1g of fat. This complete protein contains 9 essential amino acids to help maintain good health. Said to be a good source of protein to provide a satisfi ed feeling throughout the day. Claimed to be a simple and delicious way to curb cravings. Also new to the range: Maple Leaf Natural Selections Protinis Glazed Oven Roasted Chicken with Cranberry & Blueberry Complete Protein Snack.

Canada The Good Bean The Good Bean Crispy Crunchy Chocolate Flavoured Chickpeas

Flavor-packed with sweet cocoa and vanilla. Non-GMO certifi ed and is 100% free from gluten, nuts and soy.

USA Mount Franklin Foods Sunrise Fruit Shoppe Fruit Flavored Snacks with Reduced Sugar

Contains 25% less sugar than the regular fruit snacks and contains an assortment of the following fl avors: cherry; orange; green apple; strawberry; blue raspberry; and grape. These snacks are made with real fruit juice and 100% vitamin C.

USA The Good Bean The Good Bean Chocolate Berry Fruit & No-Nut Bar

Now contains more protein than previously. Packed with whole roasted chickpeas, chunks of Fair Trade dark chocolate, and a tangy mix of blueberries, cranberries and cherries for a satisfying snack that is high in fi ber and has a lot less fat than the average fruit & nut bar.

USA Bare Foods Bare Show me the Honey Crunchy Coconut Chips

100% natural, act as a good source of dietary fi bre and are free from preservatives, gluten and GMO.

USA You Love Fruit You Love Fruit Mango Homemade Fruit Flats

Heart shaped handmade fruit. This kosher, vegan, GMO and gluten-free product is children friendly, has low calories and no added sugar.

USA Ferrara Candy Black Forest Triple Layer Fruit Collision Snacks

Made with real fruit and vegetable juice, and contain natural and artifi cial fl avors.

USA Brothers International Food Brothers-All-Natural Fruit Clusters 100% Real Fruit Freeze-Dried Crunchy Bites

Made out of real fruit, with no sugar or preservatives added and are peanut/tree nut free, gluten free, soy free, dairy free and non-GMO. Each bag contains two fruit servings.

USA A&C Snacks Supereats Cheddar Flavored Kale & Chia Chips

Free from gluten, cholesterol and trans fat. Made with kale as the top ingredient, a super food with antioxidants, omega-3s, vitamins and minerals, and chia seeds, which are said to give the body healthy energy and are full of omega-3s, fi ber and protein. It contains no MSG or GMO, is high in antioxidants, and provides 70% daily value vitamin A, 4g of fi ber, 4g of protein and 80% daily value vitamin C per serving.

USA Kratos High Protein Beef Bars Kratos Acaí Berry High Protein Beef Bar

Made from 100% lean beef. This trans fat-, nut-, lactose-, sugar-, gluten- nitrites-free product is low in calories and sodium, having just 1 Carb per unit and providing antioxidants to support the protection system of the consumer.

USA Kind Kind Nuts & Spices Dark Chocolate Mocha Almond Bars

Nutritionally rich, with low glycemic index and keep the consumer fuller for longer. All natural bars are free from GMO, gluten, sugar alcohols, artifi cial sweeteners, trans fat and hydrogenated oils, and very low in sodium. Each bar has only 5g or less of sugar.

USA Gatorade Gatorade Recover Chocolate Chip Whey Protein Bar

Contains protein to help muscle recovery.

USA Kind Kind Nuts & Spices Caramel Almond & Sea Salt Bars

Contain 7g fi ber, 6g protein, heart healthy fats, and only 5g sugar. All natural wholegrain product is low in glycemic and sodium, and free from GMO, gluten, sugar alcohols, artifi cial sweeteners, trans fat and hydrogenated oils. Good source of fi bre.

Canada Central Park Deli Central Park Deli Go Snacks Grilled Chicken & Mango

A seasoned, ready to eat protein snack which contains 20% meat protein and is paired with fruit.

USA Bear Naked Bear Naked Almond Cranberry Energy Bars

Free from high fructose corn syrup, artifi cial preservatives, artifi cial fl avours, hydrogenated oils, & cholesterol, & contains 8g protein to provide natural energy.

USA Tasty Brand Tasty Brand Organic Fruit Snacks All natural product contains no artifi cial colors, fl avors or preservatives; has been boosted with açai fruit. Made with real fruit juice, and contains no high fructose corn syrup, gelatin, fat, nuts, cholesterol or gluten.

SUGAR & GUM CONFECTIONERY

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

BAKERY

Australia Woolworths Woolworths Select Oat & Wholegrain Bread

Contain beta-glucan from oats, which reduces cholesterol absorption. Free from artifi cial preservatives, colours or fl avours. Good source of fi bre and low in saturated fat.

Austria Dr. Schär Schär Gluten-Free Tortilla Wraps Free from wheat, lactose and gluten, is rich in fi bre, and can be microwaved.

Czech Republic Marks & Spencer Marks & Spencer Cranberry & Raspberry Breakfast Biscuits

Crunchy oat biscuits that are said to be perfect for breakfast, and are a source of fi bre and thiamin, which helps the body to release energy from food. Pack features the Eat Well logo.

Finland Raisio Elovena Muumi Wholegrain Rye & Fruit Snack Biscuit

Fibre rich and made with fruit. Retails in a 150g pack, which features Moomin characters and contains 10 x 15g individually wrapped biscuits. Pack bears the Finnish keyfl ag logo.

Finland Raisio Elovena Välipalakeksi Cranberry & Caramel Snack Biscuit

Fibre rich oat biscuit contains cranberry and caramel and is made with rapeseed oil.

France Mondelez Lu Heudebert Fitness+ Toasts Now available in a newly designed 280g easy to open and recyclable pack. Made with wholegrain, free of preservatives and colourants. Enriched with four minerals including calcium, phosphorous, iron and magnesium, and fi ve vitamins including folic acid, vitamin E, vitamin B1, vitamin B2 and B6, which are said to help reduce fatigue.

Germany Bahlsen Bahlsen Life Crunchy Biscuits with Nuts and Chocolate

Made with oat fl akes, whole wheat fl our from controlled cultivation, spelt fl our, sunfl ower oil, dark chocolate chips and nibbed hazelnuts. The ovo-lacto vegetarian product is high in fi bre, is made with UTZ certifi ed cocoa and contains no dyes, preservatives or hydrogenated fats.

Germany Aldi Süd Meierbaer & Albro Spezialbrot Protein Crisp Bread

Crispy protein rich crisp bread sprinkled with oil seeds and soy grist. Low in carbohydrates, containing 68% less than similar crisp breads and is free from preservatives. Ideal for a protein rich and carbohydrate reduced meal.

India Unibic Biscuits Unibic Sugarfree Multigrain Breakfast Cookies

Repackaged in a redesigned 75g pack, featuring a Facebook link. Free from cholesterol and trans fat and contains 10 vital nutrients with a high dietary fi bre content.

Ireland Marks & Spencer Marks & Spencer Multiseed Wholegrain Flatbreads

Crunchy fl atbreads topped with seeds, perfect for dipping. High in fi bre, suitable for vegetarians, and a source of thiamin, which helps to release energy from food.

New Zealand Goodman Fielder Freya’s Lower Carb Soy & Linseed Bread

Contains 40% less carbohydrates than standard multi-grain bread and has been produced by replacing some of the wheat fl our with a mix of seeds. High in fi bre, a good source of protein. Also available: Freya’s Lower Carb 5 Seed Bread.

BREAKFAST CEREALS

Finland Raisio Elovena Muumi Instant Porridge with Wholemeal Oats & Fruits

A fi bre rich instant porridge made with wholemeal rolled oats, containing natural vitamins and minerals. Free from milk. Pack features a Moomin design and contains six 35g sachets.

Germany mymuesli My Muesli Matcha Muesli Muesli with matcha green tea, pistachios and apple pieces. Organic product is rich in fi bre and free from lactose.

Germany Layenberger Nutrition Group Layenberger LowCarb.One Chocolate Banana Protein Cereal

Contains at least 40% protein and a maximum of 20% carbs.

Mexico Grupo Industrial Vida Granvita Instant Oatmeal with Quinoa Gluten free and a good source of wholegrain, proteins, amino acids and energy. Made with quinoa, contain the essential amino acid lysine, vital for the development of brain cells, the learning process, memory and physical growth.

Netherlands Quaker Quaker Complete Roasted Grain Mix with Cranberry

Rich in fi bres, a source of vitamins and minerals, and doesn’t contain artifi cial fragrances, colourings and fl avours. The grain mix with oats, wheat and barley is packed with cranberries and pumpkin seeds. It features 94% wholegrain.

Netherlands Kellogg Kellogg’s Special K Hot 3 Grains Red Fruits Porridge

Provides a balanced meal and consists of oatmeal, rye and barley, with freeze dried strawberries and raspberries, and contains 35% less fat that other grain containing breakfast porridges. Naturally rich in fi bre and contains seven vitamins and iron.

New Zealand Kellogg Kellogg’s All Bran Cranberry & Pink Lady Apple High Fibre Muesli with Pepita Seeds

Contains 25% more fi bre than other muesli products, is made with wholegrain oats, added crunchy twigs of natural wheat bran for extra fi bre, nutritious seeds and yummy fruit pieces.

UK The Fuel Station Fuel Your 10K Hours Fruit Loaded Chunky Granola

An energy breakfast made with real fruit chunks. Features crunchy muesli with toasted oats and mixed with fruit pieces. Vitamin-infused to cater for particular active lifestyles. Also contains protein, fi bre, carbs and guarana, a natural energy booster that contains natural caffeine.

DAIRY

Argentina Danone Ser Calci+ Peach Flavoured Drinking Yogurt

Reformulated. This dietetic skimmed yogurt is fortifi ed with calcium and vitamins A, D, E and folic acid, and provides 50% of the daily calcium intake needed to help strengthen bones. The gluten-free product retails in a newly designed 185g pack, featuring the International Osteoporosis Foundation logo.

Australia Rokeby Farms Rokeby Farms Whole Protein Banana Honey Cinnamon Breakfast Smoothie

High in protein, high in calcium and is made with low fat milk. It contains farm fresh protein, no protein powders, no milk powders, real banana, is low in lactose, and contains no preservatives. The manufacturer states that the Whole Protein products provide all nine essential amino acids and protein that helps building and recovery of muscle tissue and organs.

Australia Australian Health & Nutrition Sanitarium FibreStart Breakfast Fibre Drink

Made from milk, almonds and plant fi bres, features a nutty taste and contains one third of daily fi bre needs per serve. Contains soluble fi bre that keeps things moving and insoluble fi bre that helps keep the digestive system nourished and healthy. Low fat drink is an excellent source of fi bre as well as a source of calcium.

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Belgium Yakult Yakult Plus Fermented Milk Drink Made with sugar and sweeteners, and contains added fi ber, vitamin C, and 6.5 billions of unique Lactobacillus casei Shirota bacteria.

Greece Olympos Olympos Calci Milk Light Milk Enriched with Calcium

Enriched with vitamin D3 and 33% calcium, which is a basic element of bones. The low-fat product is especially suitable for women that have increased need of calcium.

Indonesia Sanghiang Perkasa Kalbe Prenagen Mommy Emesis Plain Nutritious Drink For Pregnant Women

Relaunched with a new brand. Features a new recipe that is said to be better tasting and a newly designed pack. Specially formulated for expecting mothers with feelings of fullness and nausea. With vitamin B6, iron, folic acid and high in calcium.

Indonesia Sanghiang Perkasa Kalbe Prenagen Lactamom Chocolate Flavoured Milk for Lactating Mothers

Repackaged and is reformulated with a better tasting formula. Contains protein, dietary fi ber, high calcium, folic acid and iron to satisfy the nutritional requirements of lactating mothers.

Ireland Glanbia Consumer Foods Avonmore Protein Milk Low fat milk with 1% fat and 50% extra protein for muscle development and added vitamin D. Source of calcium and vitamin B12.

Japan Takanashi Milk Products Takanashi LGG Morning Yogurt Fortifi ed with double amount of protein, with calcium and vitamin D1. It also contains probiotics LGG lactic acid, which is said to stay in the stomach for longer.

Japan Morinaga Milk Industry Morinaga Premil Beautiful Body Milk Low-fat milk with bifi dus BB536, protein, calcium and added dietary fi bre.

Japan Calpis Calpis Aloe Flavour Lactic Drink Low-calorie drink made with select lactic acid, fresh water and healthy ingredients, including aloe extract, vitamin B6 and dietary fi bre.

Norway Tine Tine Biola Cultured Milk with Apple and Guava

Contains fi bres and A+B LGG active lactic acid bacteria that naturally strengthens the good bacteria fl ora and recovers the balance in the stomach.

Norway Oatly Oatly Exotic Oat Yogurt Made with natural ingredients. Source of benefi cial soluble oat fi bre beta glucans, which are good for digestion and the heart, and are claimed to reduce cholesterol levels. Contains calcium and vitamins, has a 2% fat content and is free from added sugar, milk protein, lactose and soy.

Peru LAIVE Laive Bio+ Defensa Kids Probiotic Fermented Dairy Food

Contains millions of benefi cial bacterias such is Casei Vital Bio D that strengthens the natural organism defenses and the immune system, helping to fi ght against illness. Easy to digest drinking yogurt is partially skimmed, and is free from gluten.

South Korea Purmil Purmil Secret Pomegranate Flavoured Drinking Yogurt

Designed to help keep the intestines healthy. Contains probiotics, prebiotics in a form of synergism, bifi dus, Lactobacillus reuteri and superfood pomegranate for antioxidant effects.

Spain Puleva Puleva Calcio Whole Milk Repackaged in a newly designed 1L pack. This gluten-free product is enriched with protein, calcium and vitamins D and K. Claimed to be the only milk in the market with Efi calcio, which helps retain the calcium intake due to a combination of vitamins K and D to maintain bones strong and for better calcium absorption.

Sweden Arla Foods Arla Blueberry Mild Quark Described as tasty and creamy and has a naturally higher protein content than sour milk and yogurt. Claimed to be a perfect snack for people who are active and contains 23g protein per serving and 0.2% fat.

UK Alpro Alpro Original Coconut Drink Repackaged featuring a newly designed pack shape. Combines a blend of refreshing coconut and the light taste of rice. Low in calories, and contains added calcium, vitamin B12 and vitamin D, which reduce the signs of tiredness and fatigue.

DESSERTS & ICE CREAM

Mexico Nutrisa Nutrisa Especial Frozen Yogurt Sticks This low-fat product contains added fi ber, is made with skimmed milk, and it contributes to digestion due to the lactobacillus.

HOT BEVERAGES

Belgium Expressate Cuida Té By Expressate Function Digest Infusion

Contains peppermint which helps to reduce fl atulence.

Malaysia GlaxoSmithKline GSK Horlicks Nutritious Chocolate Flavoured Malt Drink

Relaunched and is now available in a new 1kg pack. Now features a NutriFill-max formula with 23 vital nutrients to support child’s growth and contains a combination of essential nutrients. Made without artifi cial colours, fl avours, sweeteners or preservatives.

Malaysia PepsiCo Quaker Qvital Chocolate Flavoured 3 in 1 Oat Cereal Drink

Repackaged with an updated design. Made with the goodness of Quaker wholegrain oats and contains 0% trans fat. High in calcium that aids in the development of strong bones and teeth; is a source of protein that helps build and repair body tissues; and is a source of fi bre that helps to keep consumers on the go.

JUICE DRINKS

India Dabur Real Activ Fiber+ Multi Fruit Flavoured Fruit Beverage

Repackaged in a Go Pack carton. Made from 100% juice and contains no added sugar or preservatives. Blend of exotic fruits like passion fruit, apricot, mango, orange, apple, guava and banana and ‘unique’ dietary fi bre, Resistant Maltodextrin, which helps promote good health and well being, weight management and fi tness.

India Hershey Real Activ Fruit-Veggie Orange Carrot Fruit and Vegetable Juice

Repackaged with an updated design. Contains no added sugar, added colours or artifi cial preservatives. Rich in antioxidants and comprises a special blend of hand-picked carrots that are rich in the antioxidant nutrient beta-carotene, and oranges, which are rich in vitamin C, a nutrient that helps strengthen immunity. A 200ml glass provides the equivalent juice of one bowl of fruits and vegetables.

India Dabur Real Activ Fruit-Veggie Mixed Fruit Cucumber Spinach Fruit & Vegetable Beverage

Repackaged an updated design. Made from 100% fruit and vegetable juice, the product contains no added sugar or preservatives and contains antioxidant nutrient vitamin C, which helps strengthen immunity.

Indonesia Unilever Buavita Buah Khas Nusantara Coconut Water Drink

Made with coconut water, high in vitamin C and a source of vitamin B3 to help for energy and tissues formation.

Indonesia Sapanan General Food Sappè Beauti Drink Apple Flavoured Drink with Collagen

Retails in a 360ml bottle.

Japan Bourbon Bourbon Belly Hydration Beauty Drink Contains collagen, vitamin C, hyaluronic acid and folic acid. The beauty-supporting drink has less than 10% fruit juice content.

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SUGAR & GUM CONFECTIONERY

Norway Seva Seva Pure Maple Water Contains 100% pure sap with no added additives, preservatives or sugar added. Has a natural taste, is low in calories, rich in polyphenolic compounds and is said to revitalize while benefi ting from antioxidant properties.

Norway Sunniva Drikker Sunniva Gode Greier Fruit and Vegetable Smoothie No. 3

Not from concentrate. Pasteurised drink is rich in dietary fi bre, a source of potassium and vitamin C, and provides one of the recommended fi ve portions of fruit and vegetables.

OTHER BEVERAGES

Finland Arla Ingman Arla Protein Banana & Blueberry Protein Milk Drink

Rich in protein and low in lactose. A 250ml portion contains 21g protein and only 1.5% added sugar. Ultra-pasteurised product is free from artifi cial sweeteners.

Philippines California Natural Products CalNaturale Svelte Enjoy Yourself Cappuccino Organic Protein Shake

Made with fresh organic soy milk, contains organic inulin which is a prebiotic that provides fi bre, organic complex carbohydrates and 16g organic protein. Complex carbohydrates metabolise over a longer period for sustained energy. Low-glycemic product is free from gluten and dairy, and provides 20% daily fi ber and only 9g sugar.

Sweden Dalblads Nutrition Dalblads Nutrition AB Sweshake Chocolate Protein Shake

Said to be a tasty protein drink with chocolate fl avour. Contains 26g protein.

Switzerland Wander Ovomaltine Choco Chocolate Drink Mix

Made with malt extract and UTZ certifi ed cocoa, and is rich in calcium, magnesium and 11 vitamins. Provides vitamins and minerals essential for normal energy metabolism; pantothenic acid that helps mental development; and niacin that helps to reduce fatigue.

Germany Purvegan Alberts Strips of Lupine Repackaged featuring a new design. This regional and organic product is free from yeast, lactose and cholesterol. Purely plant based containing lupin that has been processed without long distance transfers. Quick and easy to prepare, a source of fi bre, low in sugar, high in protein.

Philippines Bounty Farms Bounty Fresh Specialty Eggs Vitamin E Enriched Eggs

According to the manufacturer, vitamin E is said to protect cell membranes from being harmed by free radicals, strengthen the immune system, delay the onset of ageing, and make skin glow.

RTDs

Japan DHC DHC Diet Support Original Blend Tea Features a variety of ingredients to support slim fi gure and healthy body. It contains barley, corn tea, jobi’s tears, pu-er tea, jasmine and olive leaf. Said to work on sugar and fat, whilst supplying minerals and stress-relieving ingredients. Low caffeine content and no calories. It is free from artifi cial colouring, fl avouring and preservatives.

Singapore F&N Foods F&N Nutri Tea Lemongrass with Ginger Tea

Freshly brewed, low in sugar and free from preservatives, colouring and trans fat. Lemongrass is renowned for its calming and therapeutic effects while ginger delivers a soothing warmth from within, restoring harmony and wellness.

SAUCES & SEASONINGS

Greece Vevi Vevi Original Greek Laurel Described as a basic seasoning of the Mediterranean cuisine that is able to reduce blood glucose and cholesterol levels as well as to help control weight.

SNACKS

Australia Healthy Warrior My Yummy Lunchbox Superbars with Blueberry & Beetroot

Made with purple superfoods and ancient grains. All natural product contains no artifi cial stuff, is a good source of fi bre and contains less than 100 calories per serving. Lunchbox friendly snack is sweetened with fruit, made with a no nut recipe and free from artifi cial fl avours, colours or preservatives.

Czech Republic Chocoland Beri Re.Start Woman Energy Bar A raspberry fl avoured energy bar in white icing with L-carnitine, guarana, caffeine and taurine. Specially formulated for women to help increase physical performance, and provide fast energy and brain effect.

Germany Layenberger Nutrition Group Layenberger LowCarb.One Chocolate Banana Protein Bar

Contains a minimum of 45% protein and a maximum of 25% carbohydrates.

Indonesia NutriFood L-Men Nutrition for Men Banana Raisin Amino Bars

Repackaged with an updated design. High in protein and fi bre, low in fat, and help fulfi l protein needs anywhere and any time, providing 12g protein per serving. Provides soluble fi ber that helps maintain a digestive system, and 12000mg amino acids per serving.

Ireland Marks & Spencer Marks & Spencer Honey Seed Mix with Quinoa & Chia Seeds

Rich in zinc, for a healthy immune system. Contain 144 calories per 25g serving. Pack bears the Eat Well logo.

Italy Régime Dukan Dukan Chocolate Hazelnut Flavoured Oat Bran Bars

Rich in fi ber, and contain 50% of oat bran, which swells in the stomach giving a feeling of satiety, and helps maintain normal blood cholesterol. Made with no white fl our which is a glucide that contains no fi ber and is very quickly assimilated by the body and favors the accumulation of fat, and are free of added sugar, which is the glucide with the quickest absorption and one of the main causes of overweight and diabetes. In addition they are reduced in fat.

Singapore Carman’s Fine Foods Carman’s Roasted Nut Bars with Almond, Hazelnut & Vanilla

Free from fruit and gluten, and higher in protein than Carman’s muesli bars. Made with only the highest quality ingredients, from crunchy gourmet nuts and oats, to delicious fruits, toasted seeds, premium honey and more.

Spain Grupo Eroski Eroski Sannia Wholegrain Cereal Bars with Red Berries

Reformulated and now feature 45% less sugar than the previous recipe. These bars feature 78kcal each, are high fi ber, and free from partially hydrogenated vegetable fats.

SPORTS & ENERGY DRINKS

France Nutergia Laboratoire Nutergia Ergysport Regen’ Lemon Flavoured Recovery Drink

Rich in proteins to help maintain muscle mass and contribute towards muscular mass gain. Also this drink is rich in vitamin C, essential for the immune system.

Germany Thai Agri Foods Foco 100% Pure Coconut Water with Mango

Naturally hydrates and replenish fl uids and electrolytes that have been lost through work, sport, fi tness and other daily activities.

Japan House Wellness Foods House Ukon No Chikara Liver+ Energy Drink

Designed to support people who drink often or large amounts. Contains autumn turmeric, purple turmeric and spring turmeric, as well as curcumin and liver extract. It features refreshing orange fl avour which minimises the taste of liver.

PROCESSED FISH, MEAT & EGG PRODUCTS

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

Failures in Healthy Foods and BeveragesThe 12 reasons why brands fail and the 10 rules for success3rd Edition published June 2014

“I like to study failure.”

The smartest people know that studying the failures of others teaches us how to succeed.

Examining the most common mistakes that companies make enables you to avoid them – and increases your chances of success.

This 120 page report analyses 22 detailed case studies of brands that failed or “stumbled”, and sets out clearly:• The 12 most common causes of failure • The 10 Golden Rules for Success

This is the 3rd edition of our massively popular and unique Failures report. A fully updated analysis, featuring 10 completely new case studies, it incorporates the latest thinking about what causes failure and what cultivates success.

Ordering is easy…visit www.new-nutrition.com

Failures in Functional Foods & Beverages

33 www.new-nutrition.com

CHART 3: NEW BRANDS VS BRAND EXTENSIONSTimes have changed and new brands are now proving more successful than brand extensions - and less risky.

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45

New brands

New brands New

brandsNew

brandsNew

brands New brands

Brands extensions

Brands extensions

Brands extensions

Brands extensions

Brands extensions

Brands extensions

$21

$27

n/a

$42.4

$35.4 $36.9

$22$26

n/a

$26.4

$21.6

$27.9

2007 2008 2009 2010 2011 2012

Source: SymphonyIRI

and it is easier.”However, “the easier road comes at a price”. The price is that brand extensions perform less well than new brands. In fact, Symphony points out, they have long performed little better than new brands.

As Chart 3 shows, a brand extension earned an average $27.7 million first year sales in the period 2002-2012.New brands, as the chart shows, are performing better.It seems counter-intuitive – that against the backdrop of a weak economy a new brand performs better than the extension of a trusted brand, but these are the facts. Sometimes bringing new health benefits to established brands can revive old brands – provided that the benefit is a logical fit to the brand, and provided that you don’t attempt to extend the brand too far, either in benefit or product format.

Brands can be stretched in terms of the product format that is offered under the brand – provided that the format is logical in terms of the benefit being offered. They cannot be stretched to encompass new benefits without major risk of failure. A focus on a clear and consistent benefit platform is, as the case studies show, a key success factor.

Rule 9: Create new categories and segments, don’t be a me-tooWhether your company is large or small, it will be faced with the challenge of how to use nutritional benefits to carve out a space in what is almost always a well-served and usually fiercely-guarded category.An article in the Harvard Business Review of May 1, 2007, titled “Strategies to Crack Well-Guarded Markets”, provides some useful insights for food and beverage companies faced with this challenge. The authors, David J. Bryce and Jeffrey H. Dyer, studied the strategies – and results – of hundreds of companies that had tried to break into established markets. One of their salient conclusions will be familiar to anyone who has ever had any military training or studied military history: you should never make a frontal assault. Successful entrants, say Bryce and Dyer, “don’t engage in frontal attacks, because market leaders … will stop them in their tracks with price wars, ad blitzes ... and other retaliatory tactics”. One of the examples they give is a comparison of the performance of Red Bull with Virgin Cola. The latter staged a head-on assault on the US cola market – a stronghold of Coke and Pepsi –

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Failures in Functional Foods & Beverages

24 www.new-nutrition.com

HEALTHY SNACKS BY MAIL

UK-based snack company Graze, based in west London, uses Britain’s mail service to send personalised boxes of healthy snacks to its customers. And in the US, where the company recently launched, USPS takes the place of the Royal Mail.

Graze began trading in September 2008; it had taken two years, and £10 million ($16 million/€12 million) in start-up capital, to get to that point. Since then it has enjoyed growth rates of more than 100%, and turnover for the year to February 2013 was £40 million ($67 million/€48 million). In November 2012 The Carlyle Group bought a majority stake in the business for around £50 million ($83 million/€60 million). The online mail-order subscription service boasts a portfolio of nearly five million different products. Boxes can be mailed to the customer’s home or place of work and cost £3.89 ($6.46/€4.66), including delivery. In the US each box costs $6.00 (€4.33) and is delivered by the US Postal Service. Graze offers more than 100 individual snacks, which can be used to generate 4.9 million unique snack box combinations. This is possible by virtue of its highly innovative – and hi-tech – service, which provides tailor-made snack box combinations designed to match the personal tastes of each one of its customers, whatever their preferences. Once they’ve signed up, Graze starts regularly posting them one of its snack boxes, each of which contains four different snacks.

Graze spends heavily on advertising, mainly promoting its long-running offer to receive the first box free or half-price. Said Jones in 2012: “When we launched, it was a brand new concept and no one had ever seen anything like it before. People needed to see the box, and experience the box, to understand how it would fit in with their lives…So our mantra is: try before you buy.”

Newly launched in the US, Graze is up against General Mill’s new – and remarkably similar – direct-to-consumer snack concept called nibblr. Introduced in November 2013, the nibblr snack-by-subscription service offers 59 different varieties of snacks that are portion-controlled and delivered four-per-box to your office or home through the US Postal Service at a price of $5.99 (€4.32) per box. Orders are placed online at http://www.nibblrbox.com/.

As with Graze, customers can rate the snacks and the system will adapt, so they get more of what they like and less of what they don’t.

Failures in Functional Foods & Beverages

12 www.new-nutrition.com

Key Reasons for Failure

FAILED

1RELIED TOO

MUCH ON HEALTH

BENEFIT FAILED2

OVERESTIMATEDMARKET

FAILED

3TARGETED

MASS MARKET TOO SOON

FAILED4

BRAND/ BENEFIT/FORMAT

MISMATCH

FAILED6

TOO MANYBENEFITS

FAILED7

RELIED ON INGREDIENT

TO SELL

FAILED

10RELIED ON

“HEALTH” TO

REVIVE BRANDFAIL

ED11TASTE/TEXTUREDISAPPOINTED

CONSUMERS

FAILED12

RELIED ON BRAND

EXTENSIONS

The size of the circle reflects the

number of case studies in which

that failure factor plays a role

FAILED9

FAILED TO INVEST

IN MARKETING

Most important failure factor

Least important failure factor

FAILED5

DIDN’T MANAGE

SHAREHOLDER

EXPECTATIONS

FAILED8

NO POINT OFDIFFERENCE

ACKS BY MA

ack company Gthy snacks to ce of the Roya

rading in Septpital, to get to

he year to Febrbought a maj

ail-order subscd to the customch box costs $vidual snacks,e by virtue of ions designedOnce they’ve ss four differen

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g like it before. th their lives…

ed in the US, ack concept ca59 different va

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, customers cof what they d

Failures in Functional Foods & Beverages

14 www.new-nutrition.com

KNOW YOUR TARGET

INGREDIENT, BENEFIT & FORMAT

MUST WORK TOGETHER

START WITH NICHES

FEEL THE BENEFIT

ALTERNATIVE CHANNELS

DON’T BE A ME-TOO

FOCUS YOUR MESSAGE

NEW BRAND NOT AN

EXTENSION

FOCUS ON BENEFIT (NOT

INGREDIENT)

REALISTIC EXPECTATIONS

1 6

2 7

3 8

4 9

5 10

10 Golden Rules for Success

NEW

JULY 2014 33

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12 Key Trends in Food, Nutrition & Health 2014

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

PRICE FOR EITHER PDF OR PPT: €300 / $395 / £255 / A$420 / NZ$530 / ¥33,000 / C$395PRICE FOR PDF & PPT TOGETHER: €480 / $630 / £400 / A$670 / NZ$840 / ¥52,000 / C$630

95

BUY THE PDF &

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A 20% DISCOUNT

November / December 2013

PPT – 340 slides with illustrations, charts and tables

PDF – 102 pages with illustrations, charts and tables

Published every year since 1996, our 12 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.

61

10 Key Trends 2014

Slow energy

61

40

CHART 11: ENERGY DRINKS ARE PREMIUM-PRICED BUT DAILY DOSE ENERGY SHOTS ARE SUPER-PREMIUM

US energy drink prices compared with one-another and with a “standard” mass-market non-energy product such as Coca-Cola Classic. As with so many successful functional markets, energy drinks are premium and super-premium priced and this is no barrier to success.

Price per 32 fl.oz. (approx

1 litre)

0CocaCola Classic

1 litre $2.19

$2.195

10

15

20

25

30

35

40

Red BullEnergy Drink

8.3 fl.oz. $2.09

$8.06

Nestle Jamba Juice

$8.80 per litre

$8.80

Campbells V8 V-Fusion

Energy $39 per litre

Living Essentials 5-Hour

Energy Shot12 pack $33

2 fl.oz. bottles

Enerji Green Energy Shots

$39.80 per litre

I Am Happy at

$53 per litre

$39.00 $41.25$39.80

$53

45

50

55

BOX 2: UK: A SHIFT TO ENERGY DRINK LOWER PRICES?The UK energy drink market grew by 20.7% in value and 21.2% volume between September 2010 and September 2013, according to market research fi rm Kantor Worldwide. Mintel forecasts that the value of the UK energy drinks market, which is the largest in Europe and is currently worth €1.42 billion ($1.94 billion), could rise by 63% by 2017.Red Bull’s market share is 35% and the second biggest brand with 29% is Lucozade, recently acquired by Suntory.

Kantor believes that UK consumers are among the most price-aware in Europe and are looking for cheaper ways to continue consuming energy drinks.

Figures from market analysis fi rm Symphony IRI for the year ending February 2012 show that while Red Bull was the second-biggest-selling energy drink brand in the UK it registered only 7.8% annual sales growth compared to a 13.9% increase in sales for cheaper, own label energy drinks. With convenience store group Booker’s Euro Shopper able to retail a 250ml can at just €0.41($0.56) compared to the €1.38 ($1.88) cost of Red Bull in the same size can there are clearly cheaper options for UK consumers.

10 Key Trends 2014

Energy

40

REMIUM

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barrier to

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$8.8800 ppeer

$$$88..8

OWER P

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12

10 Key Trends 2014 Naturally functional

CHART 3: THE NATURALLY FUNCTIONAL TREND DIAMOND

12

END DIAMONR

10

10 Key Trends 2014

CHART 2: THE NUTRITIONAL PRODUCT LIFE CYCLE

The chart below was developed to aid understanding of brand positioning 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. Few functional foods have yet made this transition – 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 and the Micro-Trends

– and the brands that are working with these 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 functional food to address their health condition. They see products in a medicalised context and, as with drugs,

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 but only if it supports their lifestyle.

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 price

6% - 8% of consumers 20% - 25% of consumers 67% - 74% of consumers

SALES

TIME

Kids

Seniors

Gluten free

Slow release energy

Snacking

WeightWellness

Energy

Protein

Dairy 2.0

Naturally functional

10

10 Key Trends 2014

CHART 2: THE NUTRITIONAL PRODUCT LIFE CYCLE

The chart below was developed to aid understanding of brand positioning and the evolution of markets

on the left, targeting consumers who have a need for a product that has effective technology. They sell

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

products. Few functional foods have yet made this transition – many companies deliberately target the

creating a defensible niche and maintaining premium prices. Below we show where some of the Key

– and the brands that are working with these trends – currently sit on the life-cycle. The stages of the

Technology consumers – These are the early adopters, people who have a near-medical need for a pro

technology of the functional food to address their health condition. They see products in a medicalise

they will pay a substantial premium for something that addresses their condition.

Lifestyle consumers – They are intere– sted in maintaining their wellness, not fighting illness. They will a

a premium for a product but only if it supports their lifestyle.

Mass-market consumers – They are motivated when a benefit becomes a standard and is available in

premiums, ideally from well-known and trusted brands.

TECHNOLOGY

CONSUMERS

LIFESTYLECONSUMERS

MASS-MARKET

CONSUMERS

6% - 8% of consumers 20% - 25% of consumers 67%

SALES

TIME

Kids

Seniors

Gluten free

Slow re

Energ

Naturally functio

12 Key Trends in

Food, Nutrition &

Health 2014

by Julian Mellentin

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