Malnutritionof AffluenceThe more affluent we have become, the less nutritious ourdiet…..Man’s Diet Then And NowPre-Industrial: Calorie rich, nutrient dense Biodiversity in diet Significant exercisePost-Industrial: Calorie rich, nutrient poor Lack of biodiversity in diet Limited exercise
The State ofOur FoodFood processing practices are depleting the quality anddiversity of phytonutrients. Studies are demonstrating a relationship between our (Western)diet and chronic diseases. Post-industrial agricultural and food processing has removedphytonutrients heretofore thought “inactive” or useless. Thesecompounds are routinely removed from plants through selectivebreeding and modern processing. We used to eat from over 800 plant foods, now most Americanseat only three vegetables, namely french fries, ketchup andiceberg lettuce.We have supplanted our food quantity concerns withconsequences in quality.
ProcessedFoodsAbout 90% of the money that Americans now spend onfood goes to buy processed food.Approximately 10,000 new processed-food products areintroduced every year in the United States.Processed foods tend to contain lower levels ofantioxidants than fresh fruits and vegetables and wholegrain products.Fast Food Nation; Dr. David R. Jacobs, University of Minnesota; American Council for Fitness & Nutrition.
FunctionalFoodsConsumers are recognizing the deficiencies in their dietand wish to take an active role in maintaining theirwellness and maximize performance.Food technology and nutritional science allow us toaddress these issues in a convenient and well-adoptedmanner:Functional Foods & Beverages
There are three general types of functional foods &beverages with high marketability.Types ofFunctional Foods
Gut HealthMarketIn the United States alone, around 70 million adults sufferfrom digestive problems caused by poor consumptionhabits, high usage of additives for processing of food, and ahigh rate of antibiotic intake.1 in 7 people suffers a chronic GI disorder.76 million get food borne illnesses in the US annually & 40million travelers get diarrhea.
WhyProbioticsProbiotics represent one of the fastest growing sectors infunctional foods.Global volume consumptionis more than 3X that ofomega-3, making probioticsthe most successfulfunctional ingredient inpackaged foods aftervitamins and minerals.
The ProbioticNumbersThe global probiotic products market was estimated at$27.9 billion in 2011, expected to reach $44.9 billion in2018, growing at a CAGR of 6.8% from 2013 to 2018.Sales of probiotic supplements alone, which account foronly about 6% of the supplement market, totaled nearly$2.3 billion last year, outstripping soy products by about$200 million.In US, per capita spending on probiotic supplements isexpected to nearly double by 2016 and overtake Japan.SPINS, 2011;Aggregated market data; Euromonitor, 2012.
ProbioticFoodsThe lion’s share of probiotic sales was in foods andbeverages. Sales of probiotic-containing foods grew 31.4%since last year. MarketResearch.com forecast a 7.6%annual growth rate through 2015.SPINS, 2011.
ProbioticProductsNorth America has tremendous growth potential because ofconsumers’ natural predisposition to taking supplementsand consuming dairy products. Also probiotics areincreasingly being used for specific conditions such asallergies, travelers’ diarrhea, etc.
Interest inProbioticsConsumer interest in probiotics as measured by Googletraffic 2004-2011; It has multiplied by 3.The term “probiotics” grew in awareness 567% between2002-2009 alone, recognized by 60% of Americans.Natural Marketing Institute, HWTD, 2009.
Interest inProbiotics81% of Americans ranked probiotics as the most importantnutrient in a 2011 study released by IFIC.57% of shoppers want to learn more about probiotics andimmune health.
ProbioticBeveragesA look at a few good examples of probiotic beverages…
Cultured probiotic “shot” Launched over 75 years ago in Japan US sales already exceed 52 million bottles/yr. 6.5 billion CFU/serving Utilize proprietary Lactobacillus CaseiShirotaYakult
RTD fruit juice with probiotic Launched in 1994 $50MM + annual sales Utilizes Probi LP299v probioticDanone acquired a 51% stakeProViva
Probiotic drink “shot” Launched in 2006 Based upon EU success of ProVivaProbi LP299v probiotic plus vitamins 20 billion CFU/servingGoodBelly
Powdered stick pack Fruit flavors, 20 Kcal/serving 2.5 billion CFU Utilizes B-longum BB536, acidophilus LA-14 Also contains prebioticInulinPre
According to the 2007 National HealthInterview Survey,“prebiotics/probiotics” ranked fifthamong natural products used forchildren.MojoMilk First probiotic powdered chocolate milk mix Convenient stick packs Delivers 10x more active cultures than most yogurt 2 billion CFU/serving utilizingGaneden BC30 60% less Kcal and 80% lesssugar than Nesquik® Immune & digestive claims
Four Keysto SuccessFunctionalFoods SafeExperientialIntuitiveValidatedMust be endorsed,believed, and adoptedby stakeholders.Must provide taste,perceptible experience,convenience.Must mitigate riskthrough scientificresearch.Must be a recognizable,understandable or simpleproposition.
Food vs.DrugSuccessful functional products provide a wellness benefit butdon’t masquerade as a therapeutic. Consumers don’t want toeat from their medicine cabinets.They rely on science for validation, not as a primary sellingpoint.For “serious” health conditions, consumers have Rx optionsthat are more validated and reimbursed by insurance.Consumers need drugs, but they want foods.
Consumers eat to enjoy, everything else is secondaryDeliver a lifestyle solution, not a medicineMost successes:Created new sub-categoriesBuilt new brands, not line extensionsProvide convenienceTaste goodObservationsfor Success
Peter LeightonAbunda Functional Foods, Inc.firstname.lastname@example.org(801) 550-6962Contact