Attention to the impact of gluten on the digestive system originally stemmed from rising numbers of consumers diagnosed with Celiac’s disease. Commonly known as the “gluten allergy,” Celiac’s disease is a hereditary digestive condition marked by sensitivity to any food containing the complex gluten proteins in wheat, barley and rye (University of Maryland’s Center for Celiac Research.) Celiac was the first type of gluten sensitivity for which diagnostic testing was devised. Since 1975, Celiac’s disease has increased five-fold in the US.

Gluten intolerance demands attention

Even with these numbers, however, Celiac’s disease alone would not have been enough to motivate grocery stores to dedicate entire isles to gluten-free products or to convince hotels and restaurants to jump through the certification hoops required to serve up guaranteed gluten-free dishes. The real dietary trend is “gluten intolerance.” This broad term includes all kinds of sensitivity to gluten, including sensitivity that tests positive as Celiac’s disease. As many as 12% of all American consumer (1 in 9) may be gluten intolerant. Symptoms of gluten intolerance include digestive distress, bloating, migraines, weight loss or weight gain, loose stools or constipation and extreme fatigue.

Gluten-free is major marketplace trend, not food fad

As consumers become increasingly aware of the symptoms of gluten intolerance, more and more are opting to manage these symptoms through restricting gluten in their diets. Introductions of gluten-free products are picking up and aggressive marketplace activity (like Smart Balance’s purchase of Glutino Foods Group for $66 million) continues.

“Does not contain” trend continues

Gluten-free products have joined the sea of products that sell because of what they DO NOT contain. Previous ingredients to make this list are:

• Trans fats
• Soy
• High Fructose Corn Syrup
• Dairy
• Preservatives

This trend shows no sign of subsiding. In fact, consumers are now more likely than ever to look for indicators that certain ingredients are not in a product. Companies targeting the mommy market should pay special attention to this trend.

Summary

We haven’t seen the end of gluten-free marks on food product labels. Rather, as the number of gluten-free consumers grows, they are demanding tastier options. In addition, as more manufacturing plants become dedicated to producing gluten-free products, it will be easier for companies to manufacture products that can pass gluten-free certification requirements. Watch for more tasty, gluten-free products in 2012.

The functional food and beverage sector continues to evolve. Many category watchers are predicting increased consumer movement toward foods that are inherently functional (think blueberries) rather than foods that have added functionality (think orange juice with calcium). This prediction is reflective of consumer trends toward simplicity in ingredient labeling as well as a general public aversion to anything that hints of genetic modification in the food supply.

Naturally Functional Foods

Consumers are asking for foods and ingredients that are “naturally functional” such as blueberries, pomegranates, whole grains, protein, fiber and soy. These are also the types of ingredients that have formed the basis of the functional food offerings we have seen in the marketplace to date as they already have consumer awareness and acceptance. Finally, they are also GRAS for food use and allow manufacturers to make nutritive value-based health claims that are not likely to be challenged by regulators. This development is not lost on the producers of these inherently functional food items. Growers and associations see opportunity and profit in positioning themselves as purveyors of wholesome natural resources that don’t need to be augmented to deliver health benefits including antioxidants, polyphenols and essential fatty acids.

Types of Functional Foods & Beverages

At a basic level, there are two primary types of functional food/beverage products:

• “Better for you” foods that offer less or none of certain ingredients perceived by consumers to be less desirable. Examples would include low sodium soups, reduced fat mayonnaise, cholesterol and or free baked goods, and no sugar added desserts. These products are not truly “functional” in my opinion, but do offer consumers a way to manage their nutrient intake and moderate the amount of sugar, salt and fat that they ingest.
• “Enhanced functionality” foods offer nutrients in efficacious doses added to food products for improved consumer health and wellness. Examples include Fiber One bars, Tropicana orange juice with calcium, Special K protein shakes, POM Wonderful and Vitamin Water.  These types of products fit the classic profile of a functional food or beverage.

While both of these categories are growing and consumers are returning to basics and embracing naturally functional, it is added functionality foods that have captured the interest and imagination of consumers looking for the convenience of consuming foods that contain supplement-level doses of scientifically proven, health-improving nutrients.

Integrated Marketing Group’s partner and co-founder, Jeff Hilton, will share his branding expertise at Natural Products Expo East, running from September 21 to 24, at the Baltimore Convention Center. Hilton will be part of a panel discussion to educate retailers interested in appealing to the crossover natural products customer – an individual newly interested in sustainability, environmental or green issues. The panel discussion is on Wednesday September 21, from 3:45 to 4:45 p.m. in room 318.

“The profile of the natural foods consumer is evolving, and retailers need to understand how to best target, educate, and engage customers newly interested in a greener, healthier lifestyle,” said Hilton. “A retail outlet’s marketing strategy needs to be refined to communicate how products meet demands of a consumer who is aware of sustainability and environmental issues. The newly conscious consumer is interested in where a product comes from and where it goes after its useful life.”

About IMG and Jeff Hilton:
Jeff Hilton is partner and co-founder of Integrated Marketing Group (IMG), a marketing consultancy focused in the healthy lifestyles category, and specializing in strategic planning, branding, public relations and Web design and development. Hilton has been recognized by Advertising Age as one of America’s Top 100 Marketers and has more than 30 years of broad-based business experience, including 20 years spent within the natural products industry. Hilton is the recipient of Nutrition Business Journal’s (NBJ) Personal Service Award in recognition for his multiple outreach efforts including editorial contributions, pro-bono work and webinar and speaking engagements within the healthy lifestyles industry. Visit IMG’s blog, Brandwire, for Hilton’s branding articles and educational resources at www.imgbranding.com.

About Natural Products Expo East:
Natural Products Expo East runs from September 21-24 in the Baltimore Convention Center. Expo East is a vibrant community of about 1,300 vendors of natural, organic and healthy products with 22,000 individuals in attendance, and is ranked in the top 200 tradeshows in the country by Tradeshow Week. For more information, visit www.expoeast.com.

# # #

Press Contact:

Natalka Zeleny
IMG Branding
P: 801-538-0777 x: 106
natalkaz@imgbranding.com

Kids today wield tremendous purchasing power. Their combined purchasing power for both direct buys and influenced buys is estimated to exceed $200 billion in 2011 in the United States alone. This blog post is #3 in a series of posts on targeting emerging markets.
Note: Most pre-teens are influencing parents’ shopping, not doing the shopping themselves.

Keep my age in mind
Before we get to the fun stuff like packaging, we need to review a few points from your college psychology handbook. Kids have well-defined cognitive limits and interests you should keep in mind.

Ages 3–7
• My fantasy life is alive and well.
• Want to hold my attention? Animate it.
• No abstract thinking for me please.
• I still need a straw.
Ages 7–12
• I’m on-the-go non-stop
• I like disappearing magic tricks
• Don’t’ confuse me with pros and cons, keep your logic simple
• I’m hungry all the time. Pack me a snack.
• I’ve probably got a phone, so create an app for me.
Ages 12–15
• I can handle abstract thinking.
• You’ll find me online.
• Let me worry about my mom. Convince me, not her.
• I have unlimited text messaging, so send me a mobile ad.

Make it snack-able and packable
Children won’t be slicing up fruit and packaging it in small baggies before heading off to school. This means, either you do it or mom does it. Help mom out by making sure your functional food or supplement is one or more of the following:
• Individually wrapped
• Freeze-dried
• Sprinkles for the tongue
• Gummies
• Straw included
• Pre-diced and pre-sliced

I’m not too old for cartoons
Kids of all ages (adults too) love a good story, especially one with fantastic cartoon characters. Famous brands that animated their brand story include M&Ms, Pez candies, the Trix rabbit, Tony the Tiger, not to mention Sonic the hedgehog.

Flavors I know and love
Strange flavors are risky when it comes to kids. Much like favorite songs, kids have favorite foods and flavors. For example, Revolution Foods put a new snack size twist on a lunchbox favorite with a product called the Jammy Sammy. The Jammy Sammy comes in kid-tested flavors like PB & strawberry and PB & grape. And Jammy Sammy’s whole grain goodness comes, not in the form of whole wheat (not a favorite for a lot of kids), but through whole grain oats. Yum.

Reward me now
Cracker Jacks got this right. Whether the reward is a colorful story on the side of the packaging, a QR code to scan that downloads a game, a toy inside, a figure kids can punch out of the side of the empty package, or some other reward, the need for instant gratification holds true for kids of all ages.

Throw some “does not contain” reassurances in for mom
Help the kid out. He’s doing his best to sell mom on your product, but she needs a reason to buy something new. Let mom know which naughty ingredients are NOT in your product, and she’ll be more willing to overlook other things. Ingredients currently trending on mom’s high watch list include:
• Trans fats
• High fructose corn syrup
• Artificial flavors and colors
• Preservatives