food

According to Day Plus One, 2006 saw consumers developing a conscience with the 'green' pound becoming ever stronger. "Healthy groceries are no longer the sole domain of specialist health food wholesalers," says Adrian Lauchlan founder of Day Plus One. "It is no longer a niche sector and the market is wide open."

Day Plus One specialises in the packing of dried organic and natural food products. It offers an own-label service for its products range, which includes fruits, nuts, seeds, pulses, grains, cereals and snacks, as well as its own brand ranges Organic Days and Natural Days. Lauchlan says: "There are many cost and management benefits associated with sub-contracting buying, storing, packing, labelling, order taking and delivery services, including giving food companies the time to focus on product development and customers."

Lauchlan says that 60% of sales go through wholesalers and the market has grown in the last few years. Day Plus One is aiming to make the consumer and the retailer aware of its product, so that the wholesalers can follow up on this demand.

Lauchlan says: "We want there to be a demand so that all the wholesalers have to do is supply it."

Frances Booth, category management controller of convenience for Kellogg's, says: "As a reason for consumption 'health' is now twice as important as it was a decade ago. The biggest health concerns are obesity, cancer and heart healthy and people are increasingly aware of the importance of diet to improve health. Consumers are more aware of what is in their food today and the benefits of different ingredients such as oats and fibre. Cereal bar sales continue to grow due to consumers' desire to eat healthier."

Kellogg's has launched FruitaBü, a fruit snack which contains one portion of fruit in each pack, and expects the single count dried fruit category to grow as a result of this new launch. Kellogg's has also added to its Special K range with the Special K Oats & Honey and Special K Mini Breaks as well as launching its heart-health cereal, Optivita.

Booth says: "The wholesale and cash and carry sectors are instrumental in growing the snack and RTEC (ready to eat cereals) category and we are always looking as ways to work more closely with them to drive a step change in shopper awareness and sales performance. Wholesalers and cash and carries are in the main very supportive of Kellogg's category approach particularly to the snacking strategy but we think there is a big opportunity for other manufacturers to come together to drive a category core range. By addressing the poorer performing 'tail' SKUs, the overall category will benefit by maximising valuable fixture space and distribution points to leverage strong brands, develop emerging sub sectors and give new products important exposure."

Carol Garbutt, Quaker marketing director, says: "Consumers think of breakfast on an emotional level with 72% saying they have to 'fancy' eating a particular breakfast. And when it comes to breakfast cereal ingredients, 65% of consumers want their breakfast cereal to be natural, 50% want complex carbohydrates for slow energy release, 60% want high fibre, 56% want it to be low in saturated fat, 60% want a low salt cereal and 57% want a good source of nutrients."

Garbutt adds: "2008 is set to be another massive year for Quaker. We are planning some high profile initiatives and NPD to drive average weight of purchase across the range. This in turn will be backed by an even bigger level of support than we put behind our brands last year. We believe innovation is key to continuing to drive category sales and we have plenty in the pipeline for the coming 12 months."

Anna Cornelius, marketing manager of Ryvita, says: "2007 was an extremely exciting year for Ryvita with some great new products introduced. The next launch will hit shops this month, Ryvita Mediterranean Flavour Crispbread in Tomato & Basil and Garlic & Rosemary."

The new Ryvita Crispbread boasts 80% less fat, 50% more fibre, only 39-43 calories per slice and 93% wholegrain.

Cornelius adds: "Health awareness is a significant issue. More than three quarters of all people feel that healthy eating is important to them. Within this, fat is the biggest concern with 41% of respondents in a Nielsen survey claiming to monitor on a daily basis. There is a move towards 'naturalness' in food with 68% consumers preferring foods that are natural.

"The wholesale channel is a vital route to market for the independent trade. We are currently working to increase the provision of healthy snacks to this channel. There is also a further opportunity for wholesalers to educate retailers in the importance of healthier snacking, which will drive sales further."

According to Dorset Cereals it is now the second largest muesli brand in the UK and can be found on over one million breakfast tables. It has added to its range with Chunky Slices cereal bars. "We believe that life is too short to spend time indoors chained to a computer or slumped in front of the television," says Patrick Horton, marketing director of Dorset Cereals. "As part of this ethos of enjoying life's simple pleasures, we have been out and about at festivals and events across the country introducing our Chunky Slices, and we have been thrilled with the response we've had to the recipes."

The light-hearted campaign will encourage people to walk rather than drive, smile at people and put on wellies to go for walks. Horton adds that Dorset Cereals has done well since its re-launch thanks to support from independents and wholesalers and is keen to work with wholesalers.

United Biscuits UK advises that with the healthier biscuits and healthier snacks market worth £353m and £93m respectively, retailers must allocate the correct space for healthier product. "Healthy eating is no longer a fashionable trend in the UK. It's a way of life. Retailers that do not stock the right blend of healthy products will see their business suffer. Ultimately, their customers will go elsewhere to get what they want and this, increasingly, is healthier alternatives," says Alice Cadman, head of strategic projects at UBUK.

UBUK's go ahead range is worth £50m and Cadman says the success of the range reflects the nation's desire to be provided with healthier, convenient alternatives.

The go ahead range includes Crispy Slices, Bakes, Crispy Bites and Crinkly Crisps. Yoghurt Bakes sales have increased by 42% in the last year, while its Bakes range is up 40% year-on-year.

drink

Danone says that the change in consumer attitudes towards personalised nutrition and health maintenance has helped active health become the largest segment within yogurts. The active health sector is the largest yogurt segment in value terms with a 18.9% share in the latest year. Just over 51% of UK households bought either an active health drink or yogurt with the average household buying 11 times a year. Actimel and Activia hold a combined value share of 58%. The active health drinks and yogurts sector is worth £376m in the latest year which equates to almost 1.3 billion pots and bottles being consumed in the UK, 51 for every household.

Philip White, trading controller of Danone said the healthy options market is an area of massive potential. He said the wholesale sector has a small but very important roll, and it is something Danone is aiming to grow. He is also keen to introduce Actimel and Activia into foodservice. Danone started work on this last year and White is keen to see this continue.

Regarding selling the product within depots, White says the biggest challenge is getting retailers to realise how popular the product is. "Wholesalers can ask us for help and advice. We can educate their customers and create ways to get them into the chilled room." White recommends sampling, second placement and signage.

According to Danone Waters, its Evian bottle water brand increased sales by 72% in January of 2007, with plain still bottled water sales increasing by over £10m from the previous month. With the same forecast for this January, bottled water provides a profit opportunity.

The 2008 Evian Detox campaign starts this month and is targeted at commuters, across posters, media adverts and radio. Steve Flanagan, category strategy manager of Danone Waters, says: "This is the eighth Evian Detox and is being supported with an increased marketing spend of £1.5m. The campaign has fantastic consumer awareness and is proven to drive sales in the bottled water category. Throughout January bottled water provides one of the only growth areas for soft drinks in-store, with 91% of the soft drinks growth coming from plain water."

Soya Health Foods says there seems little doubt that the market for healthier or better for you products will continue to expand significantly. Consumers are becoming more demanding in their preferences and will continue to seek out the choices that deliver health benefits.

Robert Gleave, marketing director of Soya Health Foods, says Sunrise Soya is very well represented in the wholesale channels, the independent health food wholesalers, the traditional cash and carries format and foodservice specialists.

"Some depots are fantastic at promoting soya as a healthy alternative to dairy milk. Many of our stockists in the south east manage full pallet displays and move a significant amount of product on or off promotion. Yet there are some parts of the country where the healthy eating message has yet to be an important part of the mix, sadly these are also likely to be in the less affluent parts of the country."

Gleave says the overall market for soya milk is in growth for the foreseeable future. "Last year the market grew by around 2% overall to £114m. The population and demographic changes happening in the UK means that the prospects for dairy alternatives are excellent."

This is a view shared by Alpro soya, it is confident it can continue to fuel growth for soya products within the healthy options sector.

"With 17% penetration, dairy free is not yet a normal, everyday purchase for most UK households. But it is beginning to head that way. Greater consumer understanding of the health benefits of soya, significant improvements in both the flavour and range of products available, and marketing activity which positions soya as a mainstream lifestyle choice are all contributing to strong growth", says John Allaway, commercial director of Alpro soya.

Gavin Cox, sales manager of Sunraysia, says: "As with the general trend in grocery, consumers are looking for healthier products in every part of their diet and especially in the drinks arena, with carbonates and sugary drinks suffering to the benefit of the overall juice and smoothie market."

Sunraysia has reacted to this by moving into the organic sector with the recent launch of Pure Squeezed Organic Carrot Juice, made with eating grade organic carrots.

Cox adds: "One challenge we have is retailer and consumer education via wholesalers which is key in ensuring that our products are fully understood. Education and understanding is key. As a business we are not simply shifting boxes we are focused on delivering products of the highest quality to a consumer who is used to products that fail to deliver on this front."

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