Healthier Choices Ahead

With health and wellness top-of-mind among consumers, many store brand foods and beverages are getting a better-for-you makeover.

Some consumer food obsessions come and go rather quickly (low-carb, anyone?), proving to be more fad than trend. But others stick around, becoming only stronger with each passing year.

One trend that fits decidedly into the latter category &emdash; and also crosses over into non-food territory &emdash; is that toward health and wellness solutions. According to "Reimagining Health & Wellness 2010," a report published in June by The Hartman Group of Bellevue, Wash., the average U.S. household now spends $148.48 per month on categories that boast a "wellness halo."

Maryellen Molyneaux, president and managing partner of the Harleysville, Pa.-based Natural Marketing Institute (NMI), says NMI is seeing more consumers involved in their health than ever before. A number of factors are fueling what she calls a "renewed spirit of self-reliance and self-responsibility," including but not limited to the recent recession and an increased emphasis on environmentalism and social responsibility.

"At a very purposeful level, they're shifting their spending and behavior toward what they believe is purposeful, principled, powerful," Molyneaux says. "There are a lot of emotions behind this movement, which is why we're forecasting a whole new era of opportunity here."

Trifecta of brand imaging

But retailers that want to cash in on this era of opportunity need to understand exactly what shoppers want. Molyneaux says they are demanding not only better ingredients and more benefits from their food and beverage choices, but also environmentally responsible packaging and corporate sustainability initiatives.

"We're actually calling this the trifecta of new brand imaging," she says. "This is going to become the cost of entry for the foreseeable future. It won't be enough to be healthy or to be natural if a brand doesn't also deliver on some level of environmental and social responsibility."

And that brand imaging goes from the corporate level down to the stores &emdash; and store brands. What's more, says, "and constantly evaluate product offerings. As an industry, we have to respond to the evolution of 'conscious consumption' and provide answers with every shopping trip to our stores." the whole trifecta of brand imaging is getting another twist with consumers' new desire for purity and simplicity, Molyneaux adds.

"It's about simpler inputs across the product, packaging and marketing," she explains, "including simpler ingredients, cleaner labeling, streamlined design, easier delivery and focused messaging."

Doug Palmer, vice president of Own Brands for The Great Atlantic and Pacifi c Tea Co. (A&P), Montvale, N.J., believes today's shoppers are better informed than they were fi ve or 10 years ago when it comes to understanding how food ingredients can infl uence their health.

"A well-informed consumer forces everyone in the supply chain to communicate product attributes more effectively," he says, "and constantly evaluate product offerings. As an industry, we have to respond to the evolution of ‘conscious consumption' and provide answers with every shopping trip to our stores."

Joe McKie, vice president of corporate brands for Jacksonville, Fla.-based Winn-Dixie, adds that "a plethora of traditional and social media, as well as other sources" are driving consumer awareness in the health and wellness arena.

Focal points

In addition to the "big picture" opportunities Molyneaux outlines, retailers will need to look to a number of ingredient- and condition-specifi c opportunities.

Sharon Glass, group vice president of health and wellness for St. Petersburg, Fla.-based Catalina Marketing, believes two top-of-mind areas for consumers are obesityrelated solutions and lower-sodium products. Much of the obesity-related activity on the food and beverage side is being fueled by Michelle Obama's charge around childhood obesity, she says. And sodium levels came out on top of the list of label concerns in the 18th annual "Shopping for Health" consumer survey from the Arlington, Va.-based Food Marketing Institute and Prevention magazine.

Pat Regan, senior vice president, consumer and customer marketing for American Italian Pasta Co. of Kansas City, Mo., adds whole grains and fiber to the consumer health-minded wish list. Although the focus on these ingredients is not new, consumers now understand the nutritional benefits associated with the inclusion of whole grains and fiber in many foods and beverages.

"The concept of adding nutrition without sacrifi cing taste is another concept that is not new," Regan adds, "but it still has appeal to consumers. Moms continue to search for ways to improve the overall foods they serve their families but are unwilling to sacrifi ce on taste and texture."

Regan notes that ancient grains are growing in popularity, particularly outside the United States, and calls them "worth watching" for store brand programs.

Heart health, of course, remains a huge area of consumer interest — and crosses over into all of the aforementioned areas. Dorothea Vafi adis, science and medicine advisor in the American Heart Association's (AHA) Offi ce of Science Operations, says the Dallas-headquartered association is encouraged to see food manufacturers/retailers incorporating heart-health information into their messaging and product packaging — and reformulating many products with whole grains, a higher fi ber content and/or reduced sodium.

"There is also an increase in the availability of foods lower in cholesterol and saturated fat," she says.

Consumer interest in gluten-free product formulations continues to grow as well, Regan says.

"In pasta, [gluten-free] is growing at a rate of about 30 percent each period," he notes, "but like other categories, that is on a small base."

The inclusion of health-minded store brand SKUs within the store is no longer an option, Regan emphasizes — it's a necessity. He encourages retailers to reach out to their suppliers, asking about innovation efforts and trends under watch.

Price gap management also is critical here, Regan says, with consumers making almost two-thirds of decisions to buy store brands while in store. Too small of a price gap between the store brand and the national brand provides little incentive to buy, while too large of a gap "leaves them wondering about product quality," he maintains.

Call it out

Grocery retailers can do much more to help shoppers than just offer better-for-you store brand products at the right price. After all, their stores are uniquely positioned to become consumer health and wellness destinations.

Moreover, research from Catalina Marketing confirms that consumers — moms, in particular — want to see programs that help them provide healthier options for their children, Glass says. Moms cite three main concerns here: how to plan for feeding their children, how to shop for healthier foods for their children, and how to prepare healthful meals when juggling a jam-packed schedule.

Assistance for these and other folks begins with product packaging.

"Retailers should strive to be consistent in how they list their claims on their packaging," Regan maintains. "If they have a strategy of matching the national brand, then they should be sure to utilize the same applicable claims as the national brand so their consumers recognize it as a match."

But the retailer also can be the innovator here, as Batavia, Ill.-based ALDI Inc. proved when it became the first to include at-a-glance guideline daily amounts (GDAs) — or "Fit Facts" — on the front of own-brand product packaging this case, for its Fit & Active brand).

"We're looking to expand this feature to other ALDI select brands, moving forward," notes Martha Swaney, ALDI spokesperson.

Fresh & Easy Neighborhood Market, too, features front-of-pack nutritional labels on its eatwell store brand lineup. Brendan Wonnacott, spokesperson for the El Segundo, Calif.-based retailer, says the labels communicate calorie, fat, saturated fat and sodium levels to consumers.

"Primarily, customers are seeking knowledge about what they are buying for their families," he says. "That's why we clearly label our packaging, so our customers can easily find nutritional information and see we use ingredients they can actually pronounce."

For its part, AHA offers the heart-check mark for products certified to meet the association's criteria for saturated fat and cholesterol for healthy people over age two.

"A straightforward message is best," Vafiadis contends. "Choosing one message such as heart health can lead shoppers in the right direction."

Give 'em a roadmap

Beyond on-pack messaging, retailers can take a number of steps to educate shoppers and direct them toward better-for-you store brands.

Catalina Marketing recently piloted "Simple Substitutes" program, designed to help shoppers make healthier food choices by suggesting alternatives (national or private brand) to items currently being purchased. Glass notes that the program works through "tips, nudges, coupons and offers" — essentially, recommending changes that adapt to a shopper's existing preferences.

"We found that when it comes to helping shoppers select and purchase and prepare healthy foods, the number-one thing they want is coupons for healthy products," Glass says, "and the second thing is shelf labels. They want that roadmap at the shelf that's going to say this is a good-for-you product … something simple and easy and long in detail."

But Molyneaux throws a wrench into the mix, noting that only a third of shoppers actually notice shelf tags.

"That goes up when you talk about healthy shoppers," she explains, "people who are already aware. And of those that notice them, about a third say they use them most of the time when they shop — and about the same say they're very useful."

Although the percentage relying on shelf tags for healthful product selection might seem low, Molyneaux does stress that these folks represent "middle America families," which she terms a very opportunistic group. Still, she points to the need to remove any complexities from such tags.

And how about the growing number of retailer-specific nutritional shelf-labeling programs (such as Delhaize America's Guiding Stars)?

Glass believes they are a step in the right direction because they provide the types of tools shoppers are seeking, according to Catalina Marketing research.

Molyneaux also sees them as potential positives, but believes they could invite confusion when a shopper moves from store to store — especially if they are too complex.

"The simpler, the better," she reiterates.

Advertising and promotions provide yet another opportunity for retailers to educate shoppers and reinforce their health and wellness destination status.

"We know that maintaining a healthy weight, staying in energy balance and monitoring portion sizes are important for heart health," Vafiadis says. "To that end, many of our Food Certification Program participants have partnered with the AHA to visually display sensible portions in their advertising and promotions."

By highlighting heart-healthy products in an end cap promotion or through signage, retailers can guide shoppers to better-for-you choices, Vafiadis adds. Consumer research shows that a higher cost remains one of the barriers to good nutrition, she says, so a pricing promotion or couponing program also could make a big difference. Moreover, AHA makes hang tags available free of charge for retailers that want to highlight foods with heart-check certification during specific awareness campaign months.

"An analysis conducted in September 2009 showed an average overall sales increase of 5 percent for heart-check certified products in stores which participated in in-store promotion of the mark," Vafiadis points out, "compared to stores within the same chain who did not."

Further analysis by market segment, she adds, revealed that "struggling dieters" accounted for the most significant increase in purchase of heart-check certified products (6.7 percent higher sales in promotion stores versus non promotion stores).

In Catalina Marketing's research, consumers also ranked healthful meal ideas and recipes high on list of wants and needs Glass says. They specifically pointed to a for recipes at various locations throughout the Store.

Glass sees a chance for retailers to marry a variety of tools to help consumers make better choices. For example, it might not be enough to provde a coupon for a particular product if that product is unfamiliar to a shopper. Once that product makes it into the shopper's basket, the retailer then could provide a recipe at checkout — to ensure the shopper uses the product and returns to buy it again.

"You've got to complete the circle," Glass stresses.

Website recipes and tips, too, rank high on consumers' wish lists, according to the Catalina research. But Glass says a full six out of 10 shoppers surveyed said they "rarely" or "never" turn to their supermarket's website for such information. Most often, they simply don't know it's available.

"You can create a website, but if they don't know about it or you're not communicating with [shoppers] that it's available, then you're only delivering half the message," Glass stresses. Speaking of communicating, McKie says Winn-Dixie publishes a monthly magazine, Organics & Naturals (available in print and online), to tell shoppers about the latest research-backed health and nutrition advice, new ways of preparing nutritious meals and ways to make healthier food choices. Its website, meanwhile, offers gluten-free living advice and also details company sustainability initiatives, which McKie terms and "important part of a holistic approach to healthier lifestyles."

Shopper-Focused

Austin, Texas-based Whole Foods Market and other retail operations that lay claim to a natural and organics orientation might get the most attention in the health and wellness arena, but they certainly do not have a monopoly on better-for-you initiatives. Many other grocery retailers are engaged in admirable initiatives that help their shoppers live healthier lives.

Joe McKie, vice president of corporate brands for Jacksonville, Fla.-based Winn-Dixie Stores, says the retailer constantly monitors shopper trends, introducing new and innovative products to satisfy customer demands. He calls Winn-Dixie's Organic and Naturals program (with almost 200 private label items) an important component of the company's "fresh and local strategy" — and a key part of its overall health and wellness initiative.

"An example is the recently launched Winn-Dixie Organic Active Yogurt — a healthy product completely unique to our retail area," he says, "that contains prebiotics and probiotics, fiber, omega-3s, calcium and vitamin D."

In a recent online survey, customers outlined their top four reasons for purchasing Winn-Dixie natural and organic products, McKie adds. They include personal health and wellness; absence of chemicals, hormones and pesticides; nutritional content; and better for family.

For its part, Fresh & Easy Neighborhood Market believes everyone deserves access to high-quality "fresh, wholesome food at affordable prices," explains Brendan Wonnacott, a spokesperson for the El Segundo, Calif., retailer. Its Fresh & Easy brand products contain no artificial colors or added trans fats and include preservatives only when absolutely necessary. And each product in the retailer's new eatwell lineup has no more than 25 percent of the total daily values (based on a 2,000-calorie diet) for calories, fat, saturated fat and sodium.

"As always, it's about listening to your customers and adapting to what they are seeking," Wonnacott adds. "We have other initiatives in place to look at ways to improve our offering and have several new products in the works that will appeal to the health and wellness-focused customer.

Store brands also play a critical role in extending overall health and wellness efforts for The Great Atlantic & Pacific Tea Co. (A&P) of Montvale, N.J., notes Doug Palmer, vice president of Own Brands. He says A&P's Live Better brand is not solely about the Wellness Club in A&P pharmacies, but also reaches into health care aids and better-for-you foods and beverages.

"The first of these food products was our Live Better cereals," he explains. "We also provide a wide variety of organic and natural food products under our Green Way label."

Palmer points out that A&P tries to keep ahead of trends to provide as many health and wellness offerings as possible.

"There is no one solution," he emphasizes. "Everyone has different needs. So measuring success in this space means being flexible with your offerings and staying current with healthier meal solutions."

For Batavia, Ill.-based ALDI Inc., the better-for-you Fit & Active food and beverage line is an important part of offering healthier choices, as is the retailer's seasonal selection of fresh produce, seafood, dairy and fresh meat, says Martha Swaney, ALDI spokesperson.

"Introduced in 2004, the Fit & Active line includes products that are low in fat, lower in calories, [have] reduced sodium or no trans fats," she explains.

And like many other grocery retailers, ALDI is looking beyond healthier products to deliver greener operations — from energy-efficient LED lighting and refrigeration to the use of recycled materials — as part of being a good corporate citizen.

"ALDI is dedicated to providing our customers unbeatable value in a way that respects and preserves the world's natural resources for generations to come," Swaney says.