Pet Food Gets ‘Healthier’
With Natural/Organic Lines
By John Karolefski
Perhaps it’s not surprising that natural and organic foods eventually entered the high-end of the pet food category. What is surprising, however, is that how strong sales are. According to market
research firm Packaged Facts, pet food makers that sell through natural supermarkets have seen double-digit sales growth over the past year.
Data shows that retail sales of pet products through natural supermarkets totaled $77.2 million for 2007, up 22% over 2006, when sales rose 13%. Cat food had the highest growth rate during that period (28%) followed by dog food at 25% and pet supplies
at 19%. Natural pet product sales grew 41% in 2007 to reach
$1.3 billion. Double-digit annual percentage gains are predicted through 2012.
“Organic and natural is going through the roof,” says Amy Kreutzen, vice president of marketing for Dogswell. “People are turning away from artificial colors and flavors for themselves and are now doing the same for their pets.”
Contributing to the hike in business has been consumer safety concerns spurred on by the spring 2007 pet food recall. In addition, consumer affection for pets is behind the spike in sales.
“It is not uncommon for pets to receive the same consideration, including an increased time/money investment, as other members of the family,” says Jody Rodgers, founder of Yöghund and the founder and owner of The Barking Dog, Ltd., a dog day care, boarding, training and grooming company with three locations in New Hampshire. “Dog daycares, spas, regular health check-ups, improved diets and exercise, as well as pet social events, dog parks and pet friendly amenities are all signs of this trend. Pet owners are seeking these services and goods and providers are stepping into the niche.”
When it comes to food, company executives believe their products will enhance the lives of pets because of better ingredients.
“When organic and natural came out, they weren’t as flavorful as the other pet foods. They didn’t have a lot of flavor enhancers. But the products now contain fresh chicken, blueberries, and apples, and are better received by pets. As a result, their health is affected in a positive way, as well,” says Kreutzen of Dogswell.
Darlene Frudakis, president and COO, PetAg, Inc, Hampshire, Ill., says “We all want our pets to live longer, healthier, happier lives.” What will help, she adds, is pet food without chemicals or preservatives. Organics are free of pesticides.
Each company in the market of natural and organic pet food has its unique offerings.
For example, Vermont-based Wagathas is a line of high-quality dog biscuits introduced by entrepreneurial dog lovers, Neil Rielly and Norman Levitz in 2006. The products can be purchased in over 2,000 pet shops nationwide or online at www.wagathas.com.
Wagatha’s 100% USDA certified organic, kosher, premium dog biscuits contain human-grade ingredients like olive oil, eggs, honey and easily digestible grains. The range of products includes flavors such as Tuscan Tomato, Breakfast Biscuit and Cranberry Cheddar – all packaged in Wagatha’s signature gourmet biscuit tins. Senior and Super Biscuits are the latest additions to the lineup.
For a truly unique product for dogs, Yöghund is an organic frozen yogurt containing probiotics and prebiotics in the fermented yogurt to help boost the immune system and regulate digestion. It also helps to absorb nutrients.
“We keep it simple and avoid using unnecessary additives,” says Rodgers. “We developed our product for use in our boarding kennels where dogs are often stressed, exposed to other dogs, and perhaps experiencing a change in diet or routine.”
In addition to Yoghund’s ingredients aiding the digestive systems of dogs, she says, the cool licking experience often de-stresses and calms them as well. The brand is sold in grocery stores in the Northeast and in pet shops around the U.S. More info can be found at www.yoghund.com.
Regarding her PetAg lineup, Frudakis says: “Our product line includes the first food a puppy (Esbilac) or a kitten( KMR) eats in life. It is important for that food to be completely natural. We are the only supplier of completely natural, preservative-free infant formulas. We also supply completely natural treats, supplements and rawhide chews to the pet industry.”
In addition to products for juvenile pets, PetAg has many leading brands on the market, including Pink Parrot bird toys that provide healthy exercise, the Zoologic Milk Matrix of milk replacement products that can be mixed and matched to replicate mother's milk for nearly every species of wildlife or mammal, and Rawhide Brand Dog Chews – an American pet classic.
The products are sold in 63 countries around the world. In the U.S., they are sold in Petco and PetSmart stores nationally and many regional stores specializing in natural and organic foods such as Pet Food Express stores in northern California.
The Dogswell and Catswell brands, founded by Marco Giannini in 2004, are carried in over 5,000 upscale pet stores and in natural food stores across the country. Banners include: Happy Hips, Happy Heart, Vitality, Mellow Mutt, VitaKitty and Breathies. Distribution is in the U.S. Canada; products can be found in independent pet stores, and natural and high-end food stores. For more information: www.dogswell.com
The newest Dogswell products for dogs are the Happy Hips and Vitality Chicken & Oats Recipes. They feature fresh chicken as the main ingredient, and combine with balanced carbohydrates, fresh fruits and vegetables and minerals for added benefits.
What is the future of natural/organic pet food?
Rodgers says growth has followed the trend of human food and
will most likely continue to follow it. “Probiotics and prebiotics
will become more common as the public becomes educated in
their benefits.”
As pet owners study food labels, she adds, they will likely prompt manufacturers to include more nutritious ingredients and fewer additives in the products.
“Food that is more human-like in consistency, palatably, digestibility with added or naturally occurring vitamins and minerals,” says Frudakis. “Weight related diets such as non-fat or “lite” foods are important because 30% of America’s pets are considered over-weight. Convenience is also a major factor; so the more convenient and easy to find and feed, the better!”
Market Watch
Snacking Expected to Grow
Over Next Ten Years: Report
By Rose Anthony
More Americans will be snacking more.
That’s the bottom line from a new report from The NPD Group, a market research firm. In fact, snacking — despite its reputation for contributing to the expansion of waistlines — is a behavior that is entrenched in the daily routine of American lives.
According to the report, Snacking in America 2008, after experiencing a period of decline between 1996 and 2002, consumption of snacks has grown steadily and is forecasted
to grow by 14% by 2017.
“A generation ago most Americans believed they should ‘avoid snacking entirely,’ but today snacking is more acceptable and is clearly the fourth meal of the day,” says Harry Balzer, vice president at The NPD Group and author of “Eating Patterns in America.” “Twenty-one percent of all meals are snacks.”
Although snacking behavior is common among people of all ages, NPD finds that consumption of snack-oriented convenience foods, which generally are eaten between meals as “snacks,” but can be consumed along with meals or as a meal replacement, is growing among kids ages 6 to 12, but declining among adults 18-34 (showing greatest declines) and adults 55+. Snacking among younger children ages 2-5 is also declining. By 2017, NPD projects kids under 9 and adults ages 30-39 and 50-59 will account for the largest number of snack eatings.
“There is an aging curve that shows between-meal eating peaking at a very young age; although children in general remain the heaviest snackers,” says Arnie Schwartz, who heads up the The NPD Group food and beverage business unit. “On the other end of the age spectrum, between-meal eating shows growth after the age of around 60. Because this is where the population is heading, we would expect this behavior to just outpace population growth.”
When Americans snack is changing, as well, according to the report. Most snacking still occurs in the evening at home, but evening snacking is declining. Morning snacking has shown the strongest growth, and snack foods replace more breakfast meals than other meals. Snacking in the afternoon continues but remained stable. The report also found that most snack-oriented convenience foods (for example, potato chips) are eaten between meals, but these items are increasingly finding their way into meal times as accompaniments or replacements.
Other snacking findings include:
- Fruit is the top food eaten between meals anywhere. Consumption is up from five years ago, driven by more at home consumption.
- Cookies, candy/gum, ice cream, and chips round out the top five items consumed between meals anywhere.
- Most snack foods are purchased more than a day ahead; just one in ten are bought within 30 minutes of consumption.
“Regardless of age, lifestyle or health, snacking, whether mindful or mindless, is a component of our daily eating patterns,” says Balzer. “Mom’s warning about spoiling our appetites with snacks is definitely going unheeded.”
Top 10 in Personal Care
Although looking one’s best is important today, so is protecting the planet. This thinking was reflected in the green-heavy retailer votes for the top 10 personal care products at Health Beauty Wellness Marketing Conference sponsored by GMDC (Global Market Development Center).
The winners were: (1) ACT mouthwash with free 3-oz. on-pack by Chattem; (2) Nivea For Men body wash by Beiersdorf; (3) Ecotools bath and cosmetics accessories by Paris Presents; (4) Pure & Natural liquid hand soap and body wash by The Dial Corp., a Henkel Company; (5) Pepsom Sports and Pepsom Salt by The Pepsom Group; (6) Air Travel Approved bottles by Paris Presents; (7) New Nivea lip care sticks by Beiersdorf; (8) Boo Boo Buddy cold pack assortment by MZB Personal Care (9,Tie) Lifestyle product displays by Newmark Medial Desert Essence Organics by Desert Essence; and 24-piece Mixed Cold Gravity by Zicam; (10,Tie) Net Sponge in Tie-Dye Colors by Paris Presents; Travel Kit (6-piece) by Sprayco; and Gold Bond Ultimate assorted lotion by Chattem.
Fast-Moving ‘Green’ Products
Certain fast-moving, environmentally-friendly consumable products are being used by a significant portion of the U.S. population, according to the Natural Marketing Institute’s LOHAS Consumer Trends Database. Overall, consumers report higher consumption of “natural” versus “organic” foods and beverages, driven by a wide range of factors including levels of understanding, availability, price, perceived benefits, among others.
The Institute compiled percentages of the U.S. consumers who purchased specific “green” products within the last year. This includes: natural/organic personal care (38%); natural foods or beverages (34%); CFLs (34%); organic foods or beverages (28%); rechargeable batteries (24%); natural household cleaning products (8%) and environmentally-friendly lawn and garden products (6%). Early adopters of sustainable products report higher usage of them and are twice as likely to use emerging items such as organic flowers, organic lawn care and natural household cleaning products.
‘Green’ Sales Slump?
Too much talking and not enough buying describes the shopping behavior of many green-conscious consumers today, according to a report from Information Resources, Inc. (IRI). The study, based on the “Shades of Green Segmentation” methodology by market insight provider TNS, maintains that the eco-friendly ethics of certain shoppers do not always translate to increased sales on the shelf.
The report says economic pressures such as high prices at the pump, increased unemployment, and investment worries stimulate this behavior. In the foreseeable future, it will become more difficult for many consumers to match their concern for their environment with their purchase behavior, especially with higher-priced green products, the report concludes.
OCTOBER 2008
New Generation of Snacks
Packed with Nutrition
By John Karolefski
Food makers are producing a new generation of snacks for consumers who are looking for chips, peanuts and bars that contain ingredients beneficial to health, or at least not harmful to it.
So, you won’t find saturated fat or trans fat in these new age snacks. Many of them are even packed with vitamins, herbs and “good” bacteria to promote good digestion and heart health. The most successful of these products taste good, too – an essential factor to consider for consumers deciding which snacks to buy.
“The consumer is propelling the market,” said Rally Ralston, managing partner of Salba Smart Natural Products, a maker of chips and pretzels. “The public is screaming, ‘Give us better products.’ Anybody can create something that tastes good. We can add sugar or corn syrup. But there are other choices. The natural and organic markets have been growing by leaps and bounds.”
Indeed, retail sales of functional foods and beverages are expected to reach $33 billion this year, according to some industry estimates. Healthful snacks are a growing and evolving sub-category of these functional products.
“We’re seeing snacks that either deliver specific health benefits like Kraft’s LiveActive granola bars and/or are positioned as healthy products such as Dove’s CocoaXia line of chocolates,” said Denise Lee Yohn, a marketing consultant based in San Diego.
“The trend reflects changing snack ‘need-states’ which is a state of demand that resides at the intersection of a consumer’s attitude and the eating occasion; for example, to acquire energy for a pending workout, to escape boredom, to reward themselves, to relax and unwind, etc,” she said.
While many of the makers of these snacks are small- to mid-sized companies, the food giants are also part of the emerging market. For example, Frito-Lay sells Flat Earth Baked Veggie Crisps that contain a half serving of real vegetables in every ounce. Kraft Foods, marketer of the iconic Planters brand of peanuts, has expanded its portfolio with NUT-rition in a can that contains peanuts, almonds, pistachios, pecans, walnuts and hazelnuts. The label boasts “a heart healthy mix {that} may reduce the risk of heart disease.”
Kraft recently launched LiveActive Chewy Granola Bars to promote digestive health. The bars contain a live probiotic culture that aims to replenish live cultures in the digestive system and promote good health. It is the first nationally available probiotic snack bar that doesn’t need to be refrigerated.
Another company marketing probiotic snacks is Attune Foods which recently introduced Chewy Chocolate and Peanut Butter & Chocolate granola bars. The San Francisco-based company offers 10 varieties – six granola and four chocolate – packed with probiotics to support digestive health and boost immunity.
“Digestive health is becoming an increasingly important part of daily health for adults and kids alike – especially as kids return to school and our frantic lifestyles mean eating on the run,” said Rob Hurlbut, CEO of Attune Foods.
The bars are stocked in the refrigerated section of more than 4,000 retail stores, including those operated by Safeway, Whole Foods, Publix, H-E-B, Wegmams, Hannaford, King Sooper and Giant Eagle.
Salba Smart Natural Products in Denver offers a full line of snacks is made from the Salba grain, a rich whole food source of Omega-3 fatty acids and fiber.
“Ounce for ounce, whole Salba grain provides three times more iron than spinach, 15 times more magnesium than broccoli, and six times more calcium than whole milk,” said Ralston. “Salba grain is the only food that is part of each of the six groups of the USDA Food Guide Pyramid. We have made it easy for parents to incorporate this essential food into their children’s diet with Salba products that meet the demands of busy, on-the-go lifestyles.”
Salba Smart’s products include: 100-calorie Bite Size Organic Tortilla Chips (0.7oz); All Natural Whole Wheat Tortillas (10.5oz, 12.4oz, 20.8oz); and Pretzels made with organic flour in Sticks (7oz) and Thin Twisted (7oz). Its Whole Grain (12.7oz) and Ground Salba (6.4oz) can also be added to everyday foods such as cereal, pancakes and smoothies.
Salba Smart can be found at Whole Foods Market, Wild Oats, Wegmans, Vitamin Cottage, and other natural foods stores.
Genisoy Food Company, a maker of soy protein products, offers a line up that includes bars, shakes, powders, soy nuts, trail mixes, soy crisps, potato soy crisps and low-carb bars. The company uses only non-GMO (non-genetically modified organism) soybeans. Also, the snacks include the same soy protein proven to reduce the risk of heart disease by lowering blood cholesterol.
Arguably the most demonstrative packaging for the new generation of snacks is the deluxe microwave popcorn from Smart Balance. On the box are the following in bold letters: No Diacetyl Added, No Trans Fats, Low Sodium, Low Fat, and Non-Hydrogenated. There is also an advisory from the American Heart Association that reads, “Meets American Heart Association food criteria for saturated fat and cholesterol for healthy people over age 2.”
What’s next for healthful snacks?
“Expect to see more vitamin-enhanced products and more unusual or exotic flavors; for example, mango ‘potato’ chips,” predicted Yohn, the marketing consultant. “Beyond product innovation, we will also see the positioning, advertising, and packaging of snacks become more overt in reflecting and appealing to different need-states.”
Market Watch
Snack Consumption Rising
Among Many Age Groups
By Rose Anthony
The consumption of snacks – whether good or bad for overall health – is a behavior that is rooted in the daily routine of American lives, according the Snacking in America 2008 report by The NPD Group. Findings show that after experiencing a period of decline between 1996 and 2002, the habit of snacking has grown steadily. It is forecasted to grow 14% by 2017.
NPD finds that consumption of snack-oriented convenience foods – whether eaten between meals as or along with meals, or as a meal replacement – is growing among kids ages 6 to 12, but declining among adults 55 and over. The report shows the greatest drop in consumers aged 18-34. By 2017, NPD projects kids under 9 and adults ages 30-39 and 50-59 will account for the largest number of snack eaters.
The exact time when consumers snack is also changing, according to the report. Most snacking still occurs in the evening at home, but that habit is declining. Morning snacking has shown the strongest growth, and snack foods replace more breakfast meals than other meals. Snacking in the afternoon continues, but remains stable. The report also found that most snack-oriented convenience foods, such as potato chips, are eaten between meals. But those items are increasingly finding their way into meal times as accompaniments or replacements.
Other snack findings show that fruit is the top food eaten between meals anywhere and consumption is up from five years ago, driven by more at-home consumption. Cookies, candy/gum, ice cream, and chips round out the top five items consumed between meals anywhere. Also, most snack foods are purchased more than a day ahead; just one in ten are bought within 30 minutes of consumption
Natural & Organic Sales Steady
Despite the economic slump that all product categories currently face, natural and organic foods and beverages are still going strong, according to the “Natural and Organic Food and Beverage Trends in the U.S.” The report from Packaged Facts says the impressive sales growth of organic and natural products did slow down within the last twelve months.
According to Packaged Facts, organic and natural sales rose by 18.5% between 2006 and 2007, and will rise 17.1% this year to total $32.9 billion. Packaged Facts predicts strong single-digit growth for natural and organic foods and beverages through 2013, with sales reaching $48 billion.
Fair Trade Not Maxed at Retail
Retailers could be losing sales because they aren’t stocking enough Fair Trade certified products to meet consumer demand, according to a study from Alter Eco Fair Trade in collaboration with six universities. Findings show that over 70% of consumers surveyed are familiar with Fair Trade.
Data also suggests that the Fair Trade market to be fragmented, with little name recognition for the small independent companies that have driven Fair Trade since the movement’s beginning.
