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Positive Real Function

by Janet Poveromo | June 1, 2010

With more realistic goals set by manufacturers, consumers are embracing functional foods. After a learning curve, the category is moving in the right direction.

Food science and technology advances or a waning of the increasing consumer appetite for foods that may bolster natural defenses, the functional food sector has every expectation to grow.

Roman Shuster, research analyst with Chicago, IL-based Euromonitor, said after reviewing recent research, overall the category is doing fairly well, and functional foods outperformed the packaged food industry as a whole.

“Including the milk category, functional foods declined eight percent. But if you don’t include milk the category, it grew by six percent. Milk makes up 60 percent of the category.” “The state of the market is growing,” agreed Frédéric Langlois, vice president of research and development with Groupe Biscuits Leclerc Inc. (St- Augustin-de-Desmaures, QC, Canada).

“Consumers are comfortable with the safety and quality of functional foods and have come to expect the added health benefits they offer. More people are being proactive about their health and diet, of course that plays a major role. We’re seeing higher requirements for research supporting functional food claims from regulators, consumers and leading manufacturers. On the whole, the industry is headed in the right direction.” Yogi (Eugene, OR) Culinary Herbalist Karta Purkh Singh Khalsa agreed that higher standards by manufacturers helped grow the category. “When functional foods first became popular in North America, some manufacturers over-promised results and consumers were understandably disappointed.

Companies like Yogi that have always relied on traditions of culinary herbalism and scientific indications were affected by the backlash. Now consumers are learning more about what is reasonable to expect from natural medicine and blended functional foods, and they’re looking for these products in their markets.”

Government Watch With the Food and Drug Administration (FDA) warning US companies about making misleading food claims, functional food sales have been affected.

Manufacturers say they are now more careful in self-monitoring.

“We are conscious of the FDA’s concern and are, therefore, somewhat cautious in the claims that we make,” said Malcolm Nicholl, president and CEO of ResVez, Inc. (Rancho Santa Fe, CA).

“We were the first to market resveratrol in a food bar and have chosen to highlight the fact that each bar contains more resveratrol than 50 glasses of red wine rather than make a specific health Claim. The educated consumer is becoming aware of resveratrol and its benefits from a wide variety of media outlets, and can reach their own conclusions.” Shuster pointed out that Activia had been really successful pushing probiotics, but a class-action lawsuit stated the probiotic claims were too forward.

“The FDA stepped in and told functional food manufacturers to tone down their claims,” he said. “The Obama administration’s FDA is taking a more activist role in regulating claims in food, beverages and drug companies as a whole … it’s been a big departure since the last administration.” Langlois added that regarding products with immune health benefits, such as Leclerc’s Praeventia, Health Canada and the FDA are rightfully coming down on companies that make product claims that lack credible supporting research. “At Leclerc, we devoted a lot of time to screening different immune ingredients to find one that is backed by published, peer-reviewed clinical research. Nonetheless, there have been a number of companies that the FDA and FTC have cited for making immune benefit claims based on weak scientific links to vitamin and mineral content.” “The manufacturers will need to take a harder looking at the structure function claims they are making,” agreed Todd Habermehl, CEO of the San Francisco, CA-based Amazing Grass. “Many of the top retailers are doing a great job of policing the products they sell for unfounded claims. That will make manufacturers clean up their labels if they are not in accordance.”

On the Horizon Shuster said in the past year, fiber has been a very important ingredient. “The Fiber One snack bars by General Mills have been taking the category by storm. It’s one of the best selling functional food products on the market.” Down the road, there’s a lot of room for growth with omega-3 and DHA. “I think it will be a big trend going forward.

Smart balance launched a milk with omega-3. They did test markets in Florida and New York and the product has done extremely well. Milk is struggling; in the past, organic milk was hot, but it’s slowing. The next trend is omega-3 fortification.” At Leclerc, Langlois said the company believes it is on the cutting edge with the introduction of Wellmune WGP® into its Praeventia line of cookies.

Wellmune WGP is a natural immune Health ingredient from Biothera that won an IFT (Institute of Food Technologists) Innovation Award in 2007, and has begun appearing in foods and beverages. “Few functional ingredients have as much scientific support as Wellmune WGP. More generally, one area of innovation that has been critical to introduction of functional ingredients is in manufacturing.

Successful ingredients can withstand extreme temperatures and not lose potency.” As for what’s on the horizon, Langlois said Leclerc has a number of functional food ideas but will keep them confidential for now.

Hot and Not One notable failure in the functional food arena, according to Shuster, was Kellogg’s’ Live Bright Brain Health Bars.

The snack bar launched in 2008 and soon was taken off the market. “It was fortified with DHA omega-3 to boost brain health and memory,” Shuster said.

“It was a novel and cool product, but the problem was it was poorly designed nutritionally. The claim was to eat one to three bars a day and your brain health will improve, but the bars had a ridiculous amount of calories—it was a glorified candy bar. It’s generally not a good idea to fortify an indulgent product. The negative health impact far outweighed the positives of this product.” But with that failure comes a success story.

Resvez’s Inc.’s resveratrol product is presented as a tasty chocolate bar.

However, Nicholl said he doesn’t imagine many people—even chocoholics— eating more than one bar a day.

“Someone interested in obtaining a higher dosage easily could —the bar, which has 7g fiber, can also be considered a meal replacement.” It should also be noted that one bar contains about 190 calories—a more sensible amount.

“We are promoting the bar as a ‘healthy indulgence,’” said Nicholl. “We provide the healthy benefits of resveratrol in a bar that is ‘sinfully delicious.’ It’s as much of a gourmet chocolate treat as it is a nutrition bar.” Other successful products, according to Shuster, are Fiber One snack bar and Smart Balance butter spreads. “They added a functional ingredient to a product that can be consumed on a general basis and the bar can be eaten as a snack. So adding fiber has been the hot trend the past three or four years.

The taste of the product is comparable to what you would get in a regular bar.” Another notable thing Shuster pointed out about Fiber One bars is that they’re not over-promising the consumer, whereas Activia claims ran into legal and regulatory challenges.

With fiber, protein and omega-3s, manufacturers make fewer claims that expose them to liability.

“Another successful ingredient is protein for sports nutrition and high fiber brands,” Shuster added. One example is MET-Rx’s Worldwide Sports Nutrition Pure Protein Shakes, which offer 35g of protein. “Protein aids satiety, so consumers will eat less.” “There are many examples of success across food categories,” Langlois said.

“Fiber is an obvious one as is omega-3 for heart health. Immunity is growing as evidence by the commercial success of Dan Activ. Failures occur when ingredients lack science to support claims,” he said.

Langlois also noted that there has been some criticism of functional treats and snacks, some of which he said he believes are not merited. “It is a fact that consumers will eat treats and snacks. If companies such as Leclerc can offer a healthier alternative that tastes good, it’s a win for consumers.” He noted that Praeventia cookies contain only 140 calories per pouch (30g per seven to eight cookies) and are made with agave nectar, a sweetener that is sweeter than sugar and has a lower glycemic index. “Our cookies do not contain trans fat and are low in saturated fat. Equally important, Praeventia delivers real health benefits through Wellmune WGP, which is clinically proven to activate innate immune cells that are the body’s first line of defense. The cookies also contain polyphenols (antioxidants) and whole grain oats that contribute to daily dietary fiber.”

Health Concerns and Functional Foods Euromonitor’s Shuster said the big three health concerns that will affect functional food growth are heart health, obesity and digestive health. And, he noted, each consumer group has a different need; for example, heart health appeals to older consumers. “Obesity and weight loss are long-term trends for everyone; fiber and protein will be big for that. Digestion is a close second to those two. These affect people’s quality of life though they are not life threatening.” In addition, he said, “Our diet isn’t the best for proper digestive health, so we’ll see ingredients like probiotics and fiber being important. Plus, the US population is getting older. Thirty-one per- Cent is aged 50 or above; by 2014, more than 33 percent will be over 50 years.

So heart health and digestive health will be of concern to them. That’s where fiber and probiotics will come in.” Langlois noted that immunity is a topic that is clearly on the minds of consumers.

“A 2008 survey of 1,000 US adults by the International Food Information Council Foundation found that 87 percent of Americans are currently consuming or are interested in consuming foods/beverages that improve immune system function.

Consumers have become more educated about the importance of the immune system to maintaining overall health. In response, there have been numerous product introductions with claims of immune support.” In addition, Habermehl noted that while gluten-free is always a unique category, he sees general wellness as a main topic because it feeds into so many other sub-categories.

“Consumers are currently attracted to functional foods to address conditions such as colds, the common flu, constipation and fatigue as well as general wellness including immune boosting and cognitive enhancement,” Yogi’s Khalsa added. “Although natural medicine has a long history of benefit improving cholesterol, blood pressure and arthritis, people are not currently using natural remedies for these conditions.”

Consumer (Mis)Understandings Manufacturers are saying too much of a good thing is causing confusion in the marketplace. “There’s too much information out there right now,” Shuster pointed out. “Some companies make good claims, some don’t and there’s an overabundance of information.

Consumers are more aware of health benefits, but they’re having a hard time figuring out which ingredients are best for them and which is the best way to get those ingredients.” This is true for Marilyn Bartels, owner of TnK Health Food in Waterloo, IA, who said that superfruits are top-selling ingredients in functional foods at her store. There is some confusion, she noted, about what the ingredients, such as açai, are most notable for, however.

“Customers talk about açai as being good for weight loss, but we sell it more as an antioxidant ingredient. Another big misunderstanding with red fruits is that customers are hearing testimonies about all their good effects, and they’re asking how one product can do so many things. We try to explain that they work to reduce inflammation. If you can reduce inflammation, you can benefit a lot of different parts of the body.” Yogi’s Khalsa also confirmed this dilemma. “Natural healing background is not yet well segmented in the marketplace, so despite consumer interest, it can be difficult for people to identify the relevant information.” She added that the company finds consumers are interested in functional foods and are willing to expand their boundaries to find products and solutions that meet their needs. “Since functional foods are relatively new to Americans, consumers are still getting their bearings in this category. People are seeking information and guidance to educate themselves about the functional food options that best fit their lifestyle.” Langlois noted that consumers are certainly becoming more educated about ingredient categories and their potential benefits. For example, many associate omega-3 with heart health, probiotics with gut health or fiber with cholesterol management. He said he also agrees that many consumers don’t understand the differences between various products and the research supporting their safety and efficacy. “As we have seen in the probiotics arena, research must be strain-specific to be valid. Too many ingredients lack evidence- based research to support their purported health benefits. So we’ve made progress, but there’s a long way to go. This places more responsibility on the shoulders of manufacturers for consumer education.”

Valid Supplementation Functional foods are competing against supplements and fresh foods, Shuster concluded. “It goes back to education. I think consumers are having a hard time figuring out a proper diet. For calcium, milk can give them the correct amount, but consumers don’t drink enough of it, so functional foods are helping. Also, people don’t eat proper amount amounts of fish, so supplements or functional foods help there. People don’t know what foods are right for them, and that’s where functional foods can jump in and be very successful.”

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