Functional Foods: Their Role & Opportunities


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William Fisher
Vice President
Science & Policy Initiatives

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Functional Foods: Their Role & Opportunities

  1. 1. Institute of Food Technologists (IFT)Functional Foods:Their Role & OpportunitiesPresentation November 23, 2011William FisherVice PresidentScience & Policy Initiatives
  2. 2. Outline§ Overview of IFT§ What are functional foods?§ Why all the interest?§ History§ It’s a BIG business!§ Trends§ Latest research§ Regulatory landscape§ Future outlook§ Concluding points
  3. 3. INSTITUTE OFFOOD TECHNOLOGISTS Since 1939, IFT has unlocked the potential of the food science community by creating a dynamic global forum where members from more than 100 countries can share, learn & grow.
  4. 4. IFT’s Strategic FocusMission – Advance the science of foodLong-Range Vision – Ensure a safe and abundant food supply contributing to healthier people everywhereCommitment – Strive to provide § An inclusive and welcoming community for all food science and technology professionals; and § The knowledge and tools food science and technology professionals need to enhance their professional capacity and competency
  5. 5. IFT’s Mission in MotionPublicationsMeetings & Events 5
  6. 6. WHAT ARE FUNCTIONAL FOODS? Foods & food components that provide essential nutrients often beyond quantities necessary for normal maintenance, growth, and development and/or other biologically active components that impart health benefits or desirable physiological effects.IFT Expert Report. Functional Foods: Opportunities and Challenges
  7. 7. Dietary Supplements § Taken by month that contains a “dietary ingredient” intended to supplement the diet § “Dietary ingredients” include: vitamins, minerals, herbs and other botanicals, amino acids, and substances such as enzymes, organ tissue, glandulars, and metabolites. § Excludes conventional foods or a sole item of a meal or the diet.Drugs § Prescribed to a specific individual by a medical doctor to treat a specific disease because of its active medicinal ingredient that usually has a specific target and an immediate effectNutraceutrials § Foods, or parts of food, that provide medical or health benefits, includes dietary supplements and functional foods.Nutrients § Traditional vitamins, minerals, essential fatty acids for which recommended intakes have been established § And other components, such as phytonutrients or bioactives, present in foods for which a physical or physiological effect has been scientifically documented or for which a substantial body of evidence exists for a plausible mechanism but for which a recommended intake and function have not been definitively established. IFT Expert Report. Functional Foods: Opportunities and Challenges
  8. 8. Functional Food Categories & ExamplesConventional foods (whole foods) § Garlic, nuts, & tomatoesModified foods Fortified § Iodized salt Enriched § Folate-enriched breads Enhanced § Energy bars, snacks, & yogurts formulated with bioactive componentsMedical foods § Phenylketonuria (PKU) formulas, free of phenylalanineFoods for special dietary use § Infant foods, weight-loss foods, gluten-free foods, & lactose-free foods Position of the American Dietetic Association: Functional Foods. J Am Diet Assoc. 2009;109:735-746
  9. 9. Why All the Interest? § Rapid advances in science and technology e.g., biotechnology and nutrigenomics § Evidence linking diet to chronic disease risk § Desire to attain wellness through diet § Aging population § Healthcare costs § Changes in food laws e.g., label and product claimsIFT Expert Report. Functional Foods: Opportunities and ChallengesReinhardt Kapsak W. J Am Diet Assoc. 2011;111(6):805-810
  10. 10. IFIC 2011 Consumer Trending Survey§ Web survey of a representative sample of 1000 American adults § Working definition of functional food: food or food components that may provide benefit beyond basic nutrition§ 87% of surveyed American consumers believe certain foods have health benefits§ 90% of surveyed American consumers can name a food and its associated benefit.§ Top ten “functional foods” named by surveyed consumers 1) fruits/vegetables, 2) fish/fish oil, 3) dairy, 4) herbs/spices, 5) whole grains, 6) fiber, 7) meat and poultry, 8) tea/green tea, 9) nuts, and 10) vitamins/supplements§ Pair food with heart health, overall health, weight management, cancer, & digestive health and by life stage-healthy growth and development and healthy aging
  11. 11. Historical Notes§ The concept of food as medicine has origins in ancient India, traditional Chinese medicine, and other ancient civilizations.§ Advances in technology built evidence-base for connection between food and health § 18th century chemist Antoine Lavoiser designed laboratory equipment to test his hypothesis that food was fuel.§ Early experiments illustrated how fortifying products can enhance health benefits and reduce disease risks: § Vitamin B3 (niacin)-enriched flour & pellagra § Vitamin B1 (thiamine)-enriched flour & beriberi § Iodized salt & goiter § Vitamin D-enriched milk & rickets § Vitamin C & scurvy
  12. 12. Functional Foods is BIG Business!§ Health-conscious consumers are driving the demand for the development and promotion of products that – Promote wellness – Increase longevity – Prevent or manage chronic diseases§ US sales of functional foods continue to increase, weathering economic downturn better than other food categories § Reached $37.4 billion in 2009 § Estimated to represent 35-50% of global sales§ Asia-Pacific also has a large market§ Brazil has strong market potential Nutrition Business Journal. Feb 2010 World Bank. Health Enhancing Foods. 2006
  13. 13. Functional Foods Business FocusKey categories § Energy § Cognitive, digestive, bone, joint & heart health § Weight management § Mood enhancement § Skin & beautyKey players (key brands) § PepsiCo (Quaker, Gatorade) § Coca-Cola (Vitamin Water, Odwalla) § General Mills (Cheerios, Yoplait) § Kellogg (Special K, Kashi) § Kraft (Capri Sun, Balance Bar) § Nestle (Nesquick, PowerBar) § Danone (Activia, Essensis) § Unilever (Slim-Fast, Blue Band) § Yakult Honsha (Yakult 400, Jole)
  14. 14. Facilitating Market Growth§ Simplified approval process to market and label health claims§ Increased awareness about food & chronic disease linkages§ Gained acceptance about personalized medicine§ Incentivized employees to develop better-for-you products§ Incentivized customers to consume better-for-you products§ Advanced food processing techniques§ Demonstrated premium pricing potential
  15. 15. Emerging Functional Food Technologies § Enhancing product taste & smell § Optimizing texture § Stabilizing product ingredients § Improving body’s defenses § Maintaining food safety § Managing reasonable product costs
  16. 16. Process for Bringing Functional Foods to MarketIdentify relationship between food component and health benefitDemonstrate efficacy and determine intake level necessary toachieve desired effectDemonstrate safety at efficacious levelsDevelop suitable food vehicle for bioactive componentDemonstrate scientific sufficiency of evidence for efficacyCommunicate benefits to customersConduct in-market confirmation of efficacy and safety IFT Expert Report. Functional Foods: Opportunities and Challenges
  17. 17. Market Entry Strategies(1) Acquisitions § Gilde acquired DSM Bakery Ingredients § PepsiAmericas acquired Ardea Beverage(2) Joint Ventures § Coca-Cola & Nestle joined to create Enviga § Danone & Yakult joined to enter into India’s probiotic dairy market § Novartis & Quaker Oats joined to produce functional foods(3) Licenses & Partnerships § Kraft Foods & Medisyn Technologies entered into a research & licensing partnership to discover bioactive ingredients § General Mills & Curves partnered on extra fiber brand § Kellogg licensed Martek’s DHA omega-3 technology to create Live Bright Brain Health Bars
  18. 18. Making it in the Marketplace§ Need to market a feel good benefit consumers immediately feel and connect with product§ Build consumer trust with a credible claim and marketed product§ Know and target your niche§ Integrate smart technology & social networks§ Have the science to support the claim Communicate a specific health messageabout a specific product to a niche audience
  19. 19. Better-For-You Foods: Its Just Good BusinessThe Hudson Institute examined Nielsen sales data from grocerystores, drug stores, and mass merchandisers; financial metrics,such as operating income, share price appreciation, and returnto shareholders; and company reputation and favorabilityrankings and found food and beverage companies that have ahigher percentage of product sales in the better-for-you productcategory demonstrate comparatively better sales growth,operating profits, returns to shareholders, and companyreputation.
  20. 20. Overcoming Consumer Perceived Barriers§ Expense § Confidence in the science§ Taste § Knowledge of how much to§ Availability consume§ Convenience § Uncertainty in how to prepare foods§ Knowledge of foods/desired health benefits § Lack of desire to try new foods§ Confusion over conflicting information § Time it takes to learn about these foods
  21. 21. Top Food Trends(1) Demographically Directed(2) Still Cooking(3) Appeal of Americana(4) Foodie Focused(5) Get Real(6) New Nutrients(7) Specialty Treats(8) Three Squares(9) Prescriptively Eating Elizabeth Sloan, Ph.D.(10) Home Rituals President, Sloan Trends, Inc. Contributing Editor, Food Technology Magazine Sloan E. Top 10 Food Trends. Food Tech. April 2011
  22. 22. (1) Demographically Directed Sloan E. Top 10 Food Trends. Food Tech. April 2011 Sloan E. Bridging Generational Food Divides. Food Tech. July 2010
  23. 23. (2) Still Cooking Sloan E. Top 10 Food Trends. Food Tech. April 2011
  24. 24. (3) Appeal of Americana Sloan E. Top 10 Food Trends. Food Tech. April 2011
  25. 25. (4) Foodie Focused Sloan E. Top 10 Food Trends. Food Tech. April 2011
  26. 26. (5) Get Real Sloan E. Top 10 Food Trends. Food Tech. April 2011
  27. 27. (6) New Nutrients Sloan E. Top 10 Food Trends. Food Tech. April 2011
  28. 28. (7) Specialty Treats Sloan E. Top 10 Food Trends. Food Tech. April 2011
  29. 29. (8) Three Squares Sloan E. Top 10 Food Trends. Food Tech. April 2011
  30. 30. (9) Prescriptively Eating Sloan E. Top 10 Food Trends. Food Tech. April 2011
  31. 31. (10) Home Rituals Sloan E. Top 10 Food Trends. Food Tech. April 2011
  32. 32. Top Functional Food Trends(1) Retro Health(2) Naturally Functional(3) Functional Fill-ins(4) Prime Timers(5) Chemical Warfare(6) Ailing Adolescents(7) Meddling in Medications(8) Daily Dynamics(9) Get the Lowdown(10)Finally Foodservice Elizabeth Sloan, Ph.D. President, Sloan Trends, Inc. Contributing Editor, Food Technology Magazine Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010
  33. 33. (1) Retro Health Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010
  34. 34. (2) Naturally FunctionalMost viable functional food strategy—blending foods naturallyhigh in nutrients and phytochemicals Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010
  35. 35. (3) Functional Fill-Ins§ Healthy snacks continue to outpace indulgent snacks§ Grain is a sought after attribute of a healthy snack§ Popular snacks include: § Trail mixes § Dry fruit snacks § Sensible salty snacks§ Healthier candies such as sugar and gluten free popular too§ Portion size and other weight control products growing§ Healthful restaurant snack options has untapped potential Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010
  36. 36. (4) Prime Timers§ Use of functional foods declines with age§ Older adults least likely to believe in phytochemicals and to use fortified foods§ Heaviest users of dietary supplements§ Yet, most likely to be looking for foods to prevent or control chronic diseases and help with cognitive functions§ Boomers seeking portion-controlled, high-satiety products Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010
  37. 37. 6) Ailing Adolescents Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010
  38. 38. 7) Meddling in Medications Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010
  39. 39. 8) Daily Dynamics Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010
  40. 40. 9) Get the Lowdown Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010
  41. 41. 10) Finally Foodservice Sloan E. Top 10 Functional Food Trends. Food Tech. April 2010
  42. 42. What’s the Latest Research?§ Elucidate chronic disease prevention mechanisms § Flavonoids § Fruit extracts § Omega 3§ Research and development § Probiotics in beverages and baked goods § Fibers in beverages and dairy products § Healthy oils in dairy products§ Evaluate safety at efficacious levels§ Multidisciplinary research
  43. 43. US National Institutes of Health PerspectiveOpportunities§ Need to identify the true site of action, e.g. establish biomarkers§ Nutrigenomics§ Establish optimal dosesChallenges§ Bioactive compounds may vary by type and variety of food§ Cooking changes the bioavailability of certain compounds§ Bioactive compounds are complex & synergistically§ Human tissues react differently Milner J. US Health & Human Services. National Cancer Institute.
  44. 44. The Regulatory LandscapeGenerally, functional foods are regulated as a combination ofsubstances, distinctly different from the drug approval process.United States: Simplified health claim approval process § Enacted the Nutrition Labeling and Education Act (1997) and subsequent legislationEurope: Increasingly difficult to make health claimsJapan: Permits health claims
  45. 45. Various Functional Food DefinitionsUnited States Food and Drug Administration (FDA) Not officially recognized as a regulatory category.Health Canada Similar in appearance to or, may be, a conventional food, is consumed as part of ausual diet, and is demonstrated to have physiological benefits and/or reduce the risk of chronicdisease beyond basic nutritional functions.European Commission Concerted Action on Functional FoodScience in Europe If it is satisfactorily demonstrated to affect beneficially one or more target function inthe body, beyond adequate nutritional effects, in a way that is relevant to either an improvedstate of health and well-being and/or reduction of risk of disease.Japanese Ministry of Health and Welfare Only country that recognizes functional foods as a distinct category, which they defineas foods providing a specific health benefit. Position of the American Dietetic Association: Functional Foods. J Am Diet Assoc. 2009;109:735-746
  46. 46. Authorized Claims in United States(1) Nutrition content claims (e.g., no trans-fat)(2) Structure/function claims (e.g., calcium buildsstrong bones)(3) Health claims (e.g., diet low in saturated fatmay reduce CVD) § Most controversial § Describe a relationship between a food substance and a disease or other health related condition § FDA review of evidence, summarized in petitions § Only authorized if significant scientific agreement exists among experts qualified to evaluate the totality of the publicly available evidence
  47. 47. Example U.S. Authorized Health ClaimsScientific evidence suggests,but does not prove that eating1.5 ounces per day of mostnuts, such as almonds,hazelnuts, some pine nuts,peanuts, pecans, pistachios,and walnuts, as part of a dietlow in saturated fat andcholesterol, may reduce therisk of heart disease.
  48. 48. Authorized Health Claims in the United StatesHeart disease benefit (petitioner)§ Barley soluable fiber (National Barley Foods Council)§ Oatrim (The Quaker Oats Company & Rhodia, Inc.)§ Plant sterol esters (Lipton Tea Company & McNeil Consumer Healthcare)§ Psyllium seed husk soluble fiber (Kellogg Company)§ Soy protein (Protein Technologies International, Inc.)§ Whole oat soluble fiber (Quaker Oats Company) Nutrition Labeling and Education Act (NLEA), 1997-2006 Position of the American Dietetic Association: Functional Foods. J Am Diet Assoc. 2009;109:735-746 IFT Expert Report. Functional Foods: Opportunities and Challenges
  49. 49. Example Authorized Health Claims in Brazil§ Beta-glucan helps reduce absorption of cholesterol§ Bifidobacter animallis helps with intestinal function§ Dietary fiber helps with intestinal function§ Lactulose helps with intestinal function§ Lutein helps protect against cellular damage from free radicals§ Plant sterols helps reduce the absorption of cholesterol§ Quitson helps reduce the absorption of fats and cholesterol§ Soy protein helps reduce cholesterol World Bank. Health Enhancing Foods. 2006
  50. 50. Future Outlook§ Consumer interest in health benefits of food is strong § Particularly increasing knowledge and purchasing of functional foods§ Research, regulation, and consumer outreach is facilitating market growth, but gaps remain§ Understanding the research, regulation, and consumer insights can help target product development and consumer messaging
  51. 51. Brazil & Functional Foods§ Consumer base is small but has significant growth potential§ Food industry must improve its research and development capacity § Laboratory capacity is a barrier § Ability to purchase expensive ingredients can be a hurdle § Significant dependence on imported materials for processing § Process equipment is can quickly adoptable for innovation § Strengths: agricultural production sector, large land area and favorable climate and food processing is the second-largest sector in the economy§ Regulatory constrains § Demand food companies maintain food database to ensure compliance§ Supportive government efforts § Nutrition labelling § Nutrition education in school and communities § Strict research requirements for authorized health claims World Bank. Health Enhancing Foods. 2006
  52. 52. Functional Foods: Their Role & OpportunitiesWill FisherVice President, Science & Policy Initiativeswfisher@ift.org202-330-4977