One Product Doesn't Fit All

Consumers' health and wellness concerns have been driving product development within the food, beverage and supplement segments for many years now — and are expected to continue to do so in the years to come. For example, on the beverage side, worries over high calorie counts and artificial ingredients are attracting many consumers toward more natural products, according to "Functionality, Naturalness and Stevia Key to Developing Beverages to Fit Today's Trends," a January report from global market research firm Euromonitor.

And obesity remains a huge concern overall. Liz Housman, director of marketing for Dakota Growers Pasta Co. (part of Regina, Saskatchewan-based Viterra Inc.), says the Centers for Disease Control and Prevention projected that 42 percent of American adults will be obese — and one in three will have diabetes — by this year.

"There's an overarching goal to reverse these trends with [a] focus on childhood obesity and other preventive measures that impact younger consumers and families," she says.

That said, the health and wellness concerns of older consumers often differ dramatically from those of younger consumers. To find store brand success in the health and wellness arena, therefore, retailers need to understand generation-specific concerns and develop products that not only address those concerns, but also speak to each product's user demographic.

Aging brings issues

Baby boomers and "matures" — consumers older than boomers — want to slow down the aging process and address chronic conditions associated with aging, explains Melissa Abbott, senior director, culinary insights for the Hartman Group, Bellevue, Wash.

"This includes paying more attention to sugar and fiber grams, managing one's weight in an effort to offset the effects of cardiovascular disease [and] adult onset Type 2 diabetes, and digestive regularity," she says.

Steve French, managing partner with the Natural Marketing Institute, Harleysville, Pa., adds cognition to the list of baby boomer concerns — and adequate nutrition to that of the matures, who might not be eating as well as they used to. He also says the sense of "personal responsibility" in relation to health and wellness is very high among boomers aged 50 to 64.

And 90 percent of the female boomers responding to a study performed by Anthem Worldwide, part of the brand development division of Des Plaines, Ill.-based Schawk Inc., indicated they were motivated to achieve health and wellness to "feel good," notes Kathy Oneto, vice president, brand strategy for Anthem's San Francisco office.

"Boomers have real health concerns, so in how they defined health and wellness, we found topics such as avoidance of illness, disease and pain showing up," she says. "They want to hold on to their health so they can continue to achieve and be productive."

In its study, Anthem also found that boomer women are more likely than woman representing younger generations to seek out "food for function" when it comes to health needs, Oneto says.

Store brand product development opportunities for boomers and matures, French says, represent a balance between dietary supplements and products that help these generations attain a balanced diet. And if retailers also are able to communicate a "mind, body, spirit connection — something that is perhaps a bit of a higher-order benefit" — all the better, he says.

Because cognition declines are a major fear among boomers, retailers have an opportunity to develop solutions that feature superfruits and other ingredients known to help here, French states.

"It's more than just crossword puzzles," he stresses, "because consumers also want to remain independent as they age."

And boomers and matures don't want to deny themselves delicious foods, Abbott says, but instead want higher-quality ingredients so they are able to live a higher-quality life than their parents did.

"They are less interested in better-for-you products that lined grocery shelves in the '90s and more interested in foods that are fresher and less processed," she explains.

Abbott also points to portion-controlled packs as an opportunity to reach boomers, many of whom are empty-nesters.

"This suggests overall value, as food is not wasted, [and] acts as a tool to help manage weight," she says. "And sugar grams can be easily called out."

A desire to maintain energy, strength

Because they are just beginning to feel the effects of age, Gen-Xers are interested in maintaining positive energy levels, steering clear of blood-sugar highs and lows, and avoiding foods that are high in processed sugars and fats, Abbott says.

"Similar to millennials, Gen-Xers are keen on customization and are often the first cohort to proactively seek foods that are 'free from' as a measure to manage health and wellness concerns," she adds.

Gen-Xers also have "a focus on the physical," Oneto says, but that focus relates to being productive rather than simply focusing on looks.

"They are seeking a strong and active body so they can do all they have to do," she explains.

And in relation to food, the Anthem study revealed that Gen-X women are more interested in food as fuel and for family wellness — which differs from the boomer standpoint.

As far as store brand opportunities go, Gen-Xers will respond best to compartmentalized semi-prepared meals that allow them to customize the dish and feel involved in its preparation, Abbott says.

"Clean and alternative forms of protein are of great interest to Gen-Xers, and they are willing to experiment with more free-range meats, gluten-free heirloom grains and value-add precut produce," she says. Elimination of "high-fructose corn syrup [and] artificial colors, flavors and additives is expected from this consumer."

It's also worth noting that Gen-Xers — as well as millennials — really don't want to be using the same products their parents or grandparents are using.

"But having store brands for different generations is a bit of a challenge," French admits. "I think it's more of a function of product category mix as opposed to branding, but store brands have come a long way in terms of making the products relevant and more contemporary."

Under stress

From a health and wellness standpoint, millennials (also known as Gen-Yers) are similar to Gen-Xers in their desire to improve their appearance and retain or improve physical fitness, but they also are concerned about managing stress resulting from a multitude of life changes, French notes.

Millennials are less focused than other generations are on traditional meals throughout the day, Housman says, and as such, are driving "the fourth meal." But as members of this generation move into the family life stage, healthful meals, meal planning and economizing become more important — "all while seeking peer reviews," she adds, "much of which [are] happening on social media."

Millennials also are less interested than other generations are in the effects of aging, Abbott says, as they have yet to experience related symptoms. But they tend to be interested in global flavors and novel ingredients, perceiving them to be fresher, less-processed, more healthful and bolder than many "American classics."

And both millennials and Gen-Xers are showing more interest in organic foods and beverages, French says, but the trend is especially strong among millennials.

"It's really something that we just started to see in the past couple of years," he notes. "It used to all be driven by the boomer market."

As for millennial women, Anthem's study revealed that health and wellness are "laddered to a higher order," Oneto says. Respondents linked the terms to concepts such as "being your best self," "doing things that inspire and engage you," "happiness" and "peace in mind and body."

Retailers have myriad opportunities to address millennials' health and wellness needs via store brand products. This generation responds best to limited-time offerings and products that feature special seasonal flavors or global ingredients (in recognizable formats), Abbott maintains.

"The too-familiar and monotony seem less healthy to this consumer," she adds, "so look to line extensions in chilled, frozen and shelf-stable that feed the idea of mini meals, small plates and 'snackified' foods. From dumplings and gluten-free crackers to prepared cheese plates and Middle Eastern dips, these consumers look to foods that cue fresh and novel to nibble" while not being overly filling.

And to help millennials manage stress, retailers could provide "easy solutions" for them, French suggests, especially when they are just beginning to establish brand shopping behavior.

"That's the perfect opportunity to take them down the path of a house brand," he says.

A lot in common

Of course, many health and wellness concerns and behaviors overlap generations. For example, both Gen-Xers and millennials boast the highest average daily per-cup consumption of fruit among U.S consumers, and these "young healthies" are most likely to eat fruit at dinner, work and events, notes Tami Gross, export sales and marketing manager for Lodi, Calif.-based Pacific Coast Producers.

"They are the most concerned about healthiness when shopping for fruits and vegetables. Sixty-one percent of this group buy canned fruit weekly," she says, pointing to results of a study performed by OnResearch, New York (which also found that quickness of preparation, ease of use and good taste were top benefits the group cited for usage).

And one health concern that crosses all generations is obesity, French stresses.

In general, consumers across the country are seeking out "authenticity, quality, freshness cues, unique flavors and a 'narrative,'" notes Elizabeth Pivonka, RD, president of the Produce for Better Health Foundation. For retailers, that means an opportunity to develop store brand products with simple ingredient lists, on-pack photos depicting "freshness" and "stories" on the back of the package.

"The back story could be the authenticity of the food and ingredients from a region of the world, cultivation practices or unique climates, soils [or] flavors," she explains. "Merchandising foods as meal solutions and offering them in convenient ready-to-go packages should be considered."

Retailers could provide consumers of all ages with products that taste good and provide value via healthful line extensions, notes Kim Hannaford, director of marketing for Austin, Ind.-based Morgan Foods.

"Consideration should be given to organic and/or all-natural foods options," he says, "as well as reducing portion size and increasing flavorful variety."

Retailers also should keep in mind that age isn't the only determining factor in health- and wellness-related concerns and behaviors. The concept of "healthy" means different things to different individuals, Housman explains.

"It might mean fresh and [be] associated with many perimeter foods in the produce, deli and meat departments," she says. "It can also mean foods that are nutritionally fortified and provide desirable health benefits such as lower glycemic for diabetes, higher fiber and lower cholesterol for heart disease, higher protein and fiber for weight management, or vegetables and associated vitamins through other food platforms like pasta."

And no matter how impressive its health benefits might be, a store brand product still stands to benefit from packaging and marketing that communicate those benefits to shoppers.

Callouts on the product label that communicate the levels of healthful nutrients, label colors that reinforce the perception of freshness and innovative packaging such as portion-control packs can go a long way, Hannaford says.

"Packaging is the biggest billboard to communicate the benefit, but it also needs to be supported with education toward consumers you know are seeking these benefits," Housman adds. "This is where loyalty card data can be powerful. If you have registered dietitians on staff, utilize their expertise. This is part of building identity, loyalty and confidence with your store brand."