Gluten-free Foods Not Just for Those with Celiac Disease

Consumer interest in gluten-free offerings continues to rise, and according to recent research from Mintel, it’s not just those who suffer from a gluten allergy who stock their pantries with these wheat-free products.

In fact, 65 percent of consumers who eat or used to eat gluten-free foods do so because they believe them to be healthier, and 27 percent eat them because they think such foods help with weight loss efforts.

Amanda Topper, food analyst at Mintel, finds it “interesting to see that consumers think gluten-free foods are healthier and can help them lose weight because there’s been no research affirming these beliefs.”

“The view that these foods and beverages are healthier than their gluten-containing counterparts is a major driver for the market, as interest expands across both gluten-sensitive and health-conscious consumers,” Topper added.

Sales in the gluten-free food and beverage market are estimated to reach $10.5 billion in 2013, and from 2011-13, the market experienced 44 percent growth.

While the incidence of celiac disease affects only 1 percent of the U.S. population, Mintel’s research finds that there has been strong interest in gluten-free food and beverage for reasons other than gluten allergy.

Over a third (36 percent) of Americans who eat or used to eat gluten-free foods say they do so for reasons other than sensitivity, 7 percent say they eat them for inflammation and 4 percent say they purchase them to combat depression.

“When looking at the top 10 gluten-free food product claims in Mintel’s Global New Products Database, after gluten-free and low/no/reduced allergen, there also are product claims associated with being natural and free of additives or preservatives,” concluded Topper. “The positioning of gluten-free products as having multiple health benefits, such as low fat or no animal ingredients, may be leading to consumer perceptions that gluten-free products are healthier than products that contain gluten.”

Segmenting Shoppers Through ‘Natural’ Selection By Meg Major

Consumers are increasingly embracing natural and organic products, and often they are as concerned about what's not in the products they buy -- especially food -- as much as what is. To that end, Information Resources, Inc. (IRI) and SPINS have joined forces to create SPINS NaturaLink, a new segmentation of the total U.S. population that focuses on how shoppers think about, purchase and use natural/organic/eco-friendly products.

In 2012, U.S. natural/organic retail sales grew 13.5 percent, reaching a whopping $81.3 billion. But only 18 percent of shoppers account for nearly half of all natural/organic product sales. So how can trading partners attract the remaining 82 percent of consumers that are not yet "power shoppers" in this fast-growing sector?

In a nutshell, it's all about segmentation.

To wit: SPINS NaturaLink identifies seven distinct consumer segments based on lifestyle, organic/natural purchasing history, attitudes toward organic/natural products, the importance of physical and emotional category/product needs, and demographics.

“The segmentation offers an important set of insights for leveraging existing natural/organic buyers and attracting new shoppers to these products," notes Robert I. Tomei, president, IRI Consumer and Shopper Marketing.

Two shopper segments in particular -- “True Believers” and “Enlightened Environmentalists” -- offer outsized opportunities for manufacturers and retailers; each group represents 9 percent of the U.S. population, but together account for 46 percent of all natural/organic product sales.

True Believers – This segment's nomenclature is self-explanatory. True Believers are passionate about staying fit and healthy and are focused on trying new things, serving as strong role models for their children, and are strong believers in the benefits of natural/organic products. True Believers post a median income of $65,000, have an average age of 40, attended college and in some cases, embarked on post-graduate studies.

Enlightened Environmentalists – Also self-explantory, this shopper set is passionate about the environment and making good choices to support it. Enlightened Environmentalists are making a real effort to make healthier choices and will go out of their way to shop at stores that carry natural/organic products; they're older than True Believers, averaging 63 years old, attended graduate school and have a median income of $57,000.

“These two groups are ‘power shoppers’ when it comes to natural/organic products,” affirms Tony Olson, CEO, SPINS. “Manufacturers and retailers have a significant opportunity to better understand and tap into their needs, wants and motivations, not only to drive sales volume but also to continue to deliver the innovative products that shape our industry.”

At the same time, cautions Olson, it's important to motivate shoppers in other segments, "to expand their knowledge of natural/organic products to stimulate buying behavior and ensure long-term growth.”

Read on for a brief description of the following five segments, which comprise the remaining 54 percent of sales:

Strapped Seekers – This group likes to try new things and live a healthy lifestyle, but knows they should make healthier choices than they do. With a median income of $45,000 and median age of 45, these shoppers represent all levels of education.

Healthy Realists – Being healthy and fit and making exercise a priority is important to these shoppers. They are often the first among their friends to try something new, but can have difficulty deciding whether to buy healthy or traditional products. Their average age is 39; they have attended college and earn a median income of $65,000.

Indifferent Traditionalists – Leading a simple life with few passions, they may try healthy products but do not consider themselves on the leading edge of change. With a median income of $46,000 that skews under $25,000, these shoppers are aged 65 on average and have a high school education.

Struggling Switchers – These shoppers are focused on staying within their budgets, have suffered during the last recession, but know they should be eating healthier and getting more exercise. With a median income of $56,000, they are aged 39 on average and attended all levels of school.

Resistant Non-believers – With very little desire to explore other options for things to buy, Resistant Non-believers stay loyal to the products they know. They have completed high school; have an average age of 52 and a median income of $48,000.

IRI and SPINS completed the SPINS NaturaLink segmentation in October 2013; survey respondents were polled primarily from IRI’s National Consumer Panel, which represents the total U.S. population (and not just consumers already using natural/organic products). The partners teamed up for a recent webinar on the same subject, the archive of which can be accessed online.

McDonald’s splits with Heinz 10/28/2013 - by Monica Watrous

OAK BROOK, ILL. — McDonald’s Corp. has announced plans to end its 40-year relationship with supplier H.J. Heinz Co. following recent management changes at the ketchup company that hit too close to the Home of the Whopper.

Bernardo Hees, previously chief executive officer at fast-food rival Burger King Worldwide Inc., stepped in to the same position at Heinz in June — and that’s when McDonald’s stepped out.

“As a result of recent management changes at Heinz, we have decided to transition our business to other suppliers over time,” McDonald’s said in a statement. “We have spoken to Heinz and plan to work together to ensure a smooth and  orderly transition of the McDonald’s restaurant business, and are confident that there will be no impact to our business, our customers and our great tasting food at McDonald’s.”

Mr. Hees assumed the role following the $28 billion takeover of Heinz by Berkshire Hathaway and 3G Capital, which owns a stake in Burger King.

McDonald’s declined to provide details on which suppliers the hamburger chain will use instead. Heinz said the company does little business with McDonald’s in U.S. markets.

Asked about the split, a Heinz spokesperson said: “All our food service customers globally remain valuable to the company and are an important part of what has made the H.J. Heinz Co. what it is today. We continue to operate respecting every customer while upholding the high level of confidentiality and business ethics that the H.J. Heinz Co. has built with our business partners over the years.”

Ahold USA Among ‘Top Supplier Diversity Programs for Women’

Ahold USA is among Professional Woman's Magazine's “Top Supplier Diversity Programs for Women” for 2013 in honor of the Carlisle, Pa.-based grocer’s commitment to working with diverse and female-owned businesses. The publication’s 14th annual review of diversity programs evaluates the nation’s employers, initiatives, government agencies and educational institutions, basing its picks on market research, independent research, diversity conference participation and survey responses.

Ahold USA’s engagement with local and diverse businesses includes hosting annual trade local/diverse business opportunity fairs. This year’s events were held on Feb. 6 in Quincy, Mass., and Sept. 11 in Carlisle.

“As a responsible retailer, we continue to maintain our strong commitment to developing business opportunities with women and minority-owned companies who can supply their products and services to our customers,” said Jodie Daubert, Ahold USA’s SVP, sales development.

During the Quincy and Carlisle events, 81 companies had their products reviewed by Ahold USA procurement teams for potential placement through the grocer’s retail divisions in the Northeast and mid-Atlantic. Many of the participating vendors’ businesses are based within the Ahold USA geographic footprint.

“They tried very hard to make sure potential vendors are aware of the processes and requirements, so that there are no surprises and a win/win all around,” noted Debra Kaufmann, of Bethesda, Md.-basedGator Ron’s Zesty Sauces and Mixes.

“This is a huge opportunity for a small company to meet with senior buyers of a large company such as Ahold USA,” added Maria Kardamaki Robertson, of Silver Spring, Md.-based Demeter’s Pantry.

Ahold USA, part of Amsterdam-based international food retailing group Ahold, supports four regional divisions – Stop & Shop New England, Stop & Shop New York Metro, Giant-Landover and Giant-Carlisle – that collectively operate nearly 800 supermarkets with about 120,000 associates in 14 states and the District of Columbia, as well as e-grocer Peapod.

Walmart Accelerating Expansion of Small Stores

NEW YORK -- Wal-Mart Stores Inc. plans to accelerate the expansion of its smaller U.S. stores at a faster pace than that of its supercenters, according to an Associated Press report. The company will tether the small stores to supercenters, which will serve as mini warehouse hubs.

The plan is part of Walmart's efforts to cut costs and was announced at its annual analysts' meeting this week. Walmart will roll out this distribution strategy in the first of three markets in March, although it did not say where. It is currently testing certain aspects of the strategy in regions such as Gentry, Ark., where it operates a Walmart Express store that is less than one-tenth the size of a standard supercenter.

Walmart also plans to add approximately 300 smaller format stores, especially its Neighborhood Marketstores, during the current fiscal year and the next fiscal year combined. During the same time period, it plans to add only 240 supercenters. Neighborhood Markets carry fresh produce, meat, household supplies, beauty products and more and occupy about 38,000 square feet, while supercenters carry food and general merchandise, including clothes and home furnishings, and occupy about 182,000 square feet.

Most of the company's approximately 4,000 U.S. stores are supercenters. Walmart operates around 300 Neighborhood Markets and 20 Walmart Express locations.

During the meeting, Walmart CEO Mike Duke called the current economy "tough and unpredictable" and stated that the government shutdown has weighed on Walmart shoppers. "The government shutdown is on the minds of our customers," he said.

During the upcoming holiday season, Walmart plans to be aggressive about discounting across the store, make sure the right inventory is in stock and push its layaway program, according to the report.

Red Baron, Freschetta, Tony’s Kick Off College Football Season

This fall, Red Baron, Freschetta and Tony’s, three Schwan’s Consumer Brands, Inc.’s pizza brands, will sponsor college football for 15 universities. The sponsorship will feature tie-ins to the schools’ football programs through radio, digital activation and signage in select stadiums.

“Schwan’s Consumer Brands is delighted to celebrate such a wide range of college football programs this season,” said Bob Waldron, president, Schwan’s Consumer Brands. “Through the sponsorship, we aim to generate excitement for the programs, and engage fans through the tradition of great football paired with great pizza.”

Red Baron will be hosting a sweepstakes to award one fan per week $1,000 in cash to celebrate during the football season; as well as the “Get a Taste of the Tradition” photo contest, where each week one fan who uploads an image showing their favorite college football tradition will win Red Baron pizza for a year.

Participating schools include the University of Alabama, the University of Arkansas, Auburn University, the University of Florida, the University of Georgia, the University of Kentucky, the University of Mississippi, the University of Michigan, the University of South Carolina, the University of Tennessee, Vanderbilt University, the University of Minnesota, the University of Missouri, the Ohio State University and the University of Illinois.

Red Baron will use social media channels to promote the program sponsorship, with weekly posts on its Facebook wall and Twitter feed, digital ads on the universities’ websites, and email blasts. 

Hershey Launches First New Brand in 30 Years

HERSHEY, Pa. – The Hershey Co. is launching its first new confectionery brand in decades with the introduction of Lancaster caramel soft crèmes. This marks the first time the company has launched a new brand that is not a brand extension or acquisition in the past 30 years.

The brand will roll out nationwide in January. Lancaster is rooted in Hershey's heritage and inspired by Milton Hershey's original confection company, The Lancaster Caramel Co., Hershey said.

Lancaster Soft Crèmes are designed to provide a modern caramel taste experience to meet a growing consumer demand and are inspired by similar candies made more than 120 years ago by Hershey founderMilton Hershey, according to the announcement. The Lancaster Candy Co. was his first successful candy company and both established his reputation in the confectionery industry and provided the foundation for the launch of The Hershey Co., which first produced sweet chocolate as a coating for the caramels.

"The launch of Lancaster Soft Crèmes takes Hershey back to the early days of our founder Milton Hershey and his truly innovative spirit and desire to make great-tasting, high-quality products for consumers," said Steven Schiller, senior vice president, sweets and refreshment, The Hershey Co. "The Lancaster brand will delight all consumers looking for a rich and indulgent experience as they savor our new soft crèmes that are rooted in our company's deep history."

Hershey successfully introduced Lancaster Soft Crèmes in China earlier this year in its first brand launch outside the United States. The candies became available in May in three cities -- Wuhan, Hangzhou and Chengdu -- and will see a wider distribution in China in 2014.

Lancaster Soft Crèmes will be available in the United States in three flavors: Caramel, Vanilla and Caramel, and Vanilla and Raspberry. Eight-ounce bags will retail for $3.99 and 4-ounce bags will retail for $2.49.

A robust integrated marketing campaign is scheduled to support the launch starting in the first quarter of 2014.

Seafood Consumption Study Reveals Opportunities

Virginia Tech’s Department of Food Science and Technology has released research that examines consumer attitudes towards seafood culinary preparation. The work, sponsored by the Seafood Industry Research Fund (SIRF), was used in the development of educational videos that address gaps in consumer knowledge and barriers to purchasing seafood. 

“There are many seafood lovers out there who don’t even know it yet,” said Russ Mentzer, SIRF chairman. “For some, seafood can seem challenging. This research helps identify exact consumer concerns, letting us know where the industry needs to focus our educational efforts and how to reach new customers.” 

The research finds many consumers simply don’t know how to buy and prepare seafood at home. Further complicating things many are also confused about the health benefits. 

“This project epitomizes SIRF’s goals of research and action,” said Mentzer. “The research portion highlighted consumer stumbling blocks and the videos actively cover these reservations, providing the consumer with information and practical knowledge.”

The online videos give viewers a synopsis of seafood’s health benefits and the various types of seafood available, in addition to demonstrations on various seafood preparation methods with advice on techniques and food safety. 

Dunkin’ digs into deep product pipeline

BOSTON — The launch this week of Angus steak and cheese wraps are just the latest example of the deep limited-time offering product pipeline at Canton, Mass.-based Dunkin’ Donuts, Inc., said Paul Carbone, chief financial officer.

“Two years ago, we launched the Angus steak breakfast sandwich and it was a success,” Mr. Carbone said during an Oct. 2 presentation at the Wells Fargo Retail and Restaurant Summit. “We also launched the Big N’ Toasted, which was bacon and fried egg; that was a success.

“Three months ago, we launched the Angus Big N’ Toasted. So we took a protein that worked and a carrier that worked, and we put them together. It was a very big success. We launched tuna and chicken salad a couple years ago. About six months ago, we launched tuna and chicken salad wraps. And now we have the Angus steak and cheese wrap.

“So we’re constantly taking winners — the protein itself, carriers — and interchanging them. This is the idea of winning begets winning.”

The latest limited-time offering features a full portion of Angus steak wrapped in a warm, 8-inch tortilla. The wraps are served with white cheddar cheese and the choice of either barbecue or ranch sauce.

Mr. Carbone said most limited-time offerings are just that — limited time. The items may appear for a couple months before disappearing and then reappearing 9 or 10 months later. There are exceptions, though, such as the Big N’ Toasted, which Mr. Carbone said has “earned their right to be on the menu.” Another item that now is offered as a staple is the turkey sausage breakfast sandwich. Introduced in January, the sandwich was a “huge success” as part of the DDSMART menu.

“But we’re pretty rigorous about on and off, and then they come back 10, 12 months later,” he said.

Not all new products are a success, but the misses at Dunkin’ at least have been few and far between, Mr. Carbone said.

“We have a robust testing,” he said. “I am happy to say that over the last three years we had one swing and a miss. It went through testing. It tested well. We came out, it was like a stuffed breadstick. Think of it as a Hot Pocket-type of product, and it tested well. It came out and it did just okay, below what our testing said. And that was our one big item that didn’t kind of live up to our expectations.”

Going forward, Dunkin’ plans to continue to focus on new products as opposed to value, with new products the key to driving traffic to the stores. For example, the company recently introduced a roast beef pretzel roll sandwich that has been an “absolute success,” Mr. Carbone said.

“It’s not like we ignore value, but it’s all about differentiated product,” he added.

General Mills, Hershey’s sweeten partnership

MINNEAPOLIS — General Mills, Inc. has partnered with The Hershey Co. to introduce a dozen new baking products, including a new line of cookie mixes, cupcake mixes and frostings made with such candy flavors as Hershey’s, Reese’s and Almond Joy.

“We are very excited about our continued partnership and the launch of all these new flavors,” said Jared Pippen, associate marketing manager for Betty Crocker. “Our consumers love the new combinations and that we have created a sweet to match the style, including favorites such as s’mores, Cookies ‘n’ Crème, and Reese’s.”

The three new cupcake mixes — Betty Crocker Hershey’s Chocolate, Betty Crocker Hershey’s s’mores, and Betty Crocker Reese’s Peanut Butter and Chocolate — are available in 15.4-oz packages and have a suggested retail price of $2.79.

The three new cookie mixes — Betty Crocker Hershey’s Chocolate Chunk, Betty Crocker Hershey’s Cookies ‘n’ Creme and Betty Crocker Reese’s Peanut Butter and Chocolate Chunk — are available in 12.5-oz packages with a suggested retail price of $2.59.

The six new frosting flavors are available in 16-oz tubs at a suggested retail price of $2.59. The flavors are: Betty Crocker Hershey’s Milk Chocolate, Special Dark, Chocolate Caramel; and s’mores and Cookies ‘n’ Creme with sprinkles; and Betty Crocker Peter Paul Almond Joy.

9/13/2013 - by Eric Schroeder