Vol. 6, No. 5 March 2016 naturalproductsinsider.com US$20.75 Raising THE BAR
Market trends, formulation strategies and tips for marketing nutrition bars
Expo Hall April 28 & 29 CONTENTS naturalproductsinsider.com Vol. 6, No. 5 March 2016
p.3
Viewpoint: Bars Galore p.26
New Bar Products Are Worldier, Healthier New launches in the nutrition bar space are breaking away from traditional energy, diet, breakfast and sports nutrition bars by using p.5 so-called superfood ingredients from around the world. Steve Myers details how flavors, ingredients and consumer demands are influencing innovation in the bar sector. The Business of Bars: Market Ready for Purposeful, Premium Products A multibillion dollar category in their own right, bars have hardly run their course. Whether focused on clean label, high protein, indulgence, meal replacement, children’s snacking or anything in between, consumers are amenable to bars, particularly as the product offerings evolve to better meet their needs—and desires. Karen Butler explores the global bars market and up-and-coming trends driving premium growth in the category. p.31
The Evolution of Marketing Nutrition Bars Nutrition bars are a popular staple of the healthy snack industry and are increasingly marketed as p.17 products that can provide fitness fanatics with bursts of energy—banishing sluggishness and helping them to reach their workout goals. Lindsey Carnett discusses marketing bars to Raising the Nutritional Bar: Functional women, the non-genetically modified organism Ingredients and Formulation Strategies (GMO) trend and the future innovations expected in bars. for Building Better Bars Bars have come a long way since the early 1980s. Today, bars have exploded beyond the sports arena and appeal to a wide range of consumers. But as the global bar category evolves, so too have consumers’ expectations for convenient, portable products that p.36 deliver taste and functionality. Judie Bizzozero examines on-trend functional ingredients for bars, as well as formulation strategies for developing Takeaways for Your Business nutrition bars.
2 INSIDER Raising the Bar Digital Issue March 2016 Viewpoint
Bars Galore
In the early 1980s, nutrition bars were popularized by runners who turned to protein-packed portables to aid in energy, endurance and recovery. Fast-forward 30 years, and nutrition bars appeal to a wide range of consumers—from kids to seniors—looking for convenient, nutritious products that deliver taste and functionality. In fact, the bar sector is experiencing explosive growth on a global level, even crossing over into the snack sector. According to recent market data, the energy and nutrition bar segment has emerged as one of the fastest-growing categories in packaged food in the past five years thanks in part to innovative bar formulations and formats that don’t sacrifice taste, texture or nutritional value. In terms of consumption patterns, Leatherhead Research claimed U.S. penetration of energy and nutrition bars is highest among those aged 25 to 54 years, and cereal and snack bar consumption is generally highest among college-educated consumers. This is a statistic that rings true in my household. If you take a peek in our kitchen pantry, you will find a multitude of different bars designed and marketed for our multigenerational family. My 8-year-old daughter prefers softer, fruit-filled cereal bars as a snack before softball or tennis practice, while my husband gravitates toward protein bars drizzled with chocolate. I find myself searching for bars that have a balance of protein, fiber and tasty inclusions— and I am always looking for products with clean-label ingredients. Lastly, my 80-year-old mom prefers bars packed with fiber and protein (and a little chocolate) to aid with digestive health and provide a boost of energy to keep up with a busy grandchild. No doubt other consumers are just as choosy as we are. This means product developers will continue to raise the bar to provide tasty and functional bars to hungry consumers. But the bottom line is taste is king. All the functional ingredients and all the marketing efforts won’t matter if the bar is not enjoyable over its entire shelf life. This Digital Issue explores the global bars market and up-and-coming trends driving premium growth in the category; on-trend functional ingredients being used in bars, as well as formulation challenges and solutions; new bar launches and key factors that influence innovation; and the evolution of marketing nutrition bars.
Cheers,
Judie Bizzozero Managing Editor (480) 990-1101 ext. 36019 [email protected] @judiebizz
3 INSIDER Raising the Bar Digital Issue March 2016 !!"& & & & & "!" & & "& & & & & & & & & & ! & &" ! & ! &! & & !&! !&!$!" & &"! ! &%" & &# &
Bars Market Data
The Business of Bars: Market Ready for Purposeful, Premium Products by Karen Butler INSIDER's Take Bars focusing on nutritional profile, Although breakfast is prime time for In the past five years, energy and minimal processing and high-quality bar consumption, many manufacturers nutrition bars emerged as one of ingredients have become major forces have failed to differentiate or fortify the fastest-growing categories in in snacking. products. packaged food.
According to Euromonitor’s 2015 category report “Biscuits and Snack Bars in the U.S.,” over the 2010 to 2015 review period, energy and nutrition bars emerged as one of the fastest growing categories in packaged food, with value sales growing by 88 percent in current terms. Snack bars’ compound annual growth rate (CAGR) grew by 3 percent in 2015, compared to the review period average of 4 percent and year-on-year growth of 7 percent in 2011. As the popularity of snack bars continues to grow, the category added US$1.2 billion in sales between 2010 and 2015, and now emerges from a much higher base. This growing base was one key reason behind the category’s relative slowdown in 2015. During this period, brands such as Clif Bar, LÄRABAR® and KIND® touted the nutritional profile, minimal processing and high-quality ingredients of their products and witnessed incredible growth, emerging from relative obscurity to become major forces in snacking. Euromonitor International noted many of these companies also maintain a hip, socially conscious lifestyle image that appeals to younger, more affluent consumers. In fact, in 2015, as high-priced energy and nutrition bars like KIND continued to gain share, their growth had an upward effect on overall unit prices in the category. Energy and nutrition bars continued to register strong growth in 2015 with a slew of innovative product launches. Euromonitor International estimated value sales grew by 10 percent in current terms, as these products moved beyond the gym bags of athletes and dieters and into more people’s handbags and desk drawers. In an attempt to capitalize on the snack bar craze, manufacturers in other food categories sought to enter snack bars for the first time in 2015. In August, for instance, confectionery giants Hershey and Mars introduced innovative products. Mars launched a new line of snack bars under the Goodness Knows brand, while Hershey debuted Brookside Fruit and Nut Bars. Euromonitor International concluded as snack bars increasingly incorporate chocolate, fruit and other sweet ingredients, they represent a growing threat to candy bars given their indulgent flavors, but relatively better-for-you positioning. The market research firm predicted U.S. sales in the biscuits [cookies] and snack bars category to reach $23.3 billion by 2020.
IN THIS ISSUE Viewpoint p.3 Bar Formulation p.17 Table of Contents p.2
5 INSIDER Raising the Bar Digital Issue March 2016 ANCIENT GRAINS
EXPELLER- PRESSED OILS
PROTEIN CRISPS
From FIRST SIGHT to LAST BITE The most appealing bars and snacks offer both nutritious ingredients and great taste. With extruded inclusions, reliably sourced veggies and grains, and non-GMO ingredients, Bunge helps you build an exceptional treat— with a clean label.
| BungeNorthAmerica.com Call (800) 528-4633 Bars Market Data
In terms of current sales, according to IRI Market Advantage™ for the 52 weeks ending Dec. 27, 2015, across IRI’s multi-outlet plus convenience geography, nutritional/ intrinsic value bars showed strong growth. Dollar sales were up 10.6 percent (total dollar sales US$2.9 billion), with unit sales up 8.3 percent. By comparison, granola bars were flat (dollars increased by 0.5 percent; units by 0 percent), as were breakfast/cereal/snack bars (dollars decreased by 0.6 percent; units increased by 0.2 percent). In nutritional/ intrinsic value bars, the convenience channel saw the strongest growth (dollars increased by 15.3 percent; units increased by 11.6 percent). Susan Viamari, IRI’s vice president of thought leadership, also pointed to proprietary SPINSscan Natural Cereal/Snack Bars and Specialty Gourmet calendar year 2015 versus 2014 data, which indicated within the natural foods channels, Three-quarters lifestyle/wellness bars saw strong growth (dollars up by of U.S. consumers 5.6 percent; units up by 10.7 percent). She noted in who buy cereal/snack bars eat them specialty food channels, lifestyle/wellness bars also as a snack between meals, and performed quite well (dollars up by 19.1 percent; units up by 16.2 percent). Lastly, diet bars were down 1.3 percent Over eat them as a portable (dollars) in the natural foods channel, but up 4.7 percent in 60% breakfast option specialty/gourmet.
Demographics Understanding how consumers perceive and use bars U.S. penetration of energy is crucial to creating a successful product. “Three-quarters and nutrition bars is highest of U.S. consumers who buy cereal/snack bars eat them among those aged as a snack between meals, whilst over 60 percent eat them as a portable breakfast option,” reported Jonathan 25 to 54 years, and cereal and snack bar Thomas, principal market analyst, Leatherhead Research consumption is generally highest Ltd. “Consumption tends to be skewed toward the latter among more affluent consumers.
half of the day, either as a between-meals snack or Source: Leatherhead Research Ltd. around periods of exercise,” he added. Thomas also pointed out U.S. penetration of energy and nutrition bars is highest among those aged 25 to 54 years, and cereal and snack bar consumption is generally highest among more affluent consumers. A. Elizabeth Sloan, Ph.D., CEO and owner of Sloan Trends Inc., elaborated, “Users of both nutritional and cereal/granola bars have an above-average likelihood of being under the age of 45 (Experian Marketing Services, Summer 2014 Simmons NHCS Adult Study 12-Month). Those who used five or more nutritional bars in the last 30 days are 36 percent more likely than average to be in the 18- to 24-year-old age group and 32 percent more likely to be in the 35- to 44-year-old age group. Both nutritional and cereal/granola bar users are more likely to be women.”
7 INSIDER Raising the Bar Digital Issue March 2016
Bars Market Data
And in terms of affluence? “Users of nutritional bars are 24 percent more likely than adults on average to have earned a bachelor’s degree or more, and they are much more likely to enjoy a household income of US$150,000 or more,” she said. For international perspective, Thomas stated penetration of cereal and snack bars in the United Kingdom is about two-thirds (67 percent) of all adults. Consumption is heaviest among females under the age of 35 and in households with children. Penetration is lowest among those age 55 and older. With such a low draw among older populations, Sloan said she sees great opportunity with Boomers and seniors, especially women. “Although traditionally, consumers over age 50 were not bar consumers, these New Agers are fast turning to nutrition bars—and for that matter, sports and energy beverages—to meet their nutritional and lifestyle goals.” Sloan said seniors aren’t the only demographic with potential. Her other recommendations include: . Multicultural Consumers Latinos are 15 percent more likely and non-Hispanic blacks are 18 percent more likely to have eaten five or more cereal/granola bars in the past 30 days. Hispanics are also relatively high-volume consumers of nutritional bars. Hispanic men under age 35 are exceptionally high users of sports supplements.
. Kids Many of the current offerings contain calories and nutrient levels beyond the recommended requirements for a child. “Bars need to be created specifically for kids, with cartoon characters. The timing is now,” Sloan asserted. “IRI reported that 26 percent of the best-selling new food and beverages in their 2014 New Product Pacesetters report were kid-specific.” Cereal/granola bars in particular hold promise for households with children. Sloan cited a Packaged Facts report as stating 43 percent of cereal/granola bar users live in households with kids.
. City Dwellers Packaged Facts data also noted consumers of relatively large volumes of nutritional bars are 20 percent more likely than adults on average to live in one of the 25 largest metropolitan areas of the country. Sloan suggested creating bars with specific ingredients or positioning to help combat the challenges of city living, such as pollution or immunity.
. Exercise and Weight Loss Nutrition bar users are more likely to exercise regularly than the average adult (67 vs. 52 percent). Sloan pointed to the Packaged Facts 2015 weight management report citing the number of folks who regularly exercise is up 10 percent among men and 9 percent among women over the past five years. She said reinventing weight-loss bars for exercisers is essential, as is recreating great-tasting energy bars with weight-loss positioning.
9 INSIDER Raising the Bar Digital Issue March 2016 Stable + Clean Label
With help from a Gum Guru, I can really suspend my RTD proteins. Did the Gum Guru also help you suspend that hairdo?
TIC GUMS
History of History
Stuff v156 Stuff A
TIC Gum’s Ticaloid® Pro 148 OG hydrocolloid system provides suspension, increases stability and enhances mouthfeel in high protein RTD beverages while adhering to clean label defnitions, organic compliances and non-GMO certifcations. As a global leader in innovative technologies for product development, we can help you create formulations that add up to delicious success. To speak with a Gum Guru®, visit ticgums.com or call (844) 505-4557.
Connect with us on: Bars Market Data
Trends The next big trend in bars is limited only by the imagination—as proven by the success of savory and meat-based snack bars. Formulators have many options. “Consumers are looking for unexpected and even exotic flavors/flavor combinations,” Viamari said. “Flavors of the world, bold flavors, etc., are keeping snacks exciting and allowing for indulgence (even across healthier options—think of chocolate-drizzled snack bars, for instance).” In keeping with the affluent nature of the main purchasing demographic, she also gave a nod to the use of premium flavors, such as exotic fruits and dark chocolate, as consumers “want to feel high-end.” Sloan agreed. “Undoubtedly, the biggest opportunity is to improve the taste and indulgence nature. In 2015, IRI reported that indulgent snacks outperformed healthy snacks for the first time in at least six or seven years,” she said. “More indulgent, cake-like flavors, textures; savory flavors, e.g., cheese; and layers for added crunch and texture are simple, big ideas for nutrition bars.” Other trends sweeping major food and beverage categories also are influencing bars, The next big trend in bars such as regional and clean label. Viamari noted is limited only by the many consumers are attracted to local or “local feeling” options—a draw that’s opened up the imagination—as proven by market to smaller companies competing against big, established players in the space. She added the success of savory and when it comes to streamlined ingredients, “Short meat-based snack bars. and understandable ingredient lists are ‘in’ as consumers try to eat cleaner and healthier.” Thomas agreed. “Demand for organic and/or ‘natural’ snack and cereal bars is rising fast, especially in markets such as the United States and the U.K. As a result, more products are carrying claims, such as ‘free from artificial additives’.” He said gluten-free snack bars are also strong in the U.S. market.
FOR MORE information on a simplified ingredient strategy, check out the
Clean Label Bars Digital Issue.
Download!
11 INSIDER Raising the Bar Digital Issue March 2016 FruitWorx ®: via the URC® Process, brings the goodness of Welch’s Concord Grape to your consumer • Real Concord Grape Fruit in a bit • FruitWorx® will enable clean labels • Wholesome, natural, and full – completely preservative free of the Concord Grape Taste • FruitWorx® can tailor its water • Provides a soft texture, excellent activity level to match most mouth feel and a consistently applications superior taste • Using FruitWorx® will provide • FruitWorx® are inherently functional clump free processing and and loaded with polyphenols excellent food safety
Wayne D. Lutomski Cell: +1-914-497-7909 Vice President, International and Global Ingredients Office: +1-978-371-3692 Welch’s Foods Inc. Email: [email protected] Bars Market Data
Ingredient-wise, “More consumers are moving toward natural grains and fruits (e.g., berries) within snack bars as a way of addressing perceived deficiencies in their diets, especially as far as calcium, fiber and protein are concerned,” Thomas stated. “On a related note, more products are now featuring natural and raw ingredients in their manufacture. Fair trade ingredients are also making an impact—one example is the Geo range, which features fair trade fruits (e.g., bananas and blueberries), as well as fair trade honey, cocoa, dates and nuts.” He said the tendency toward health and natural also has brought forth an increase in the use of grains such as quinoa, hemp, chia and flax seed. In Thomas’ opinion, one of the most important trends is the inclusion of protein, owing to its links with satiety and weight management. He referenced Natural Marketing Institute (NMI) data indicating more than half of U.S. consumers sought foods with high protein levels in 2014, as compared to less than 40 percent in 2006. “As a result of the emergence of high-protein products, the snack bars sector is increasingly overlapping with meal replacements,” he stated. “The trend toward higher protein content can be illustrated by the use of nuts and even insect extracts (e.g., cricket flour).”
13 INSIDER Raising the Bar Digital Issue March 2016
Food for Thought Although many bar products are on the market, Sloan identified a couple missteps of current offerings. 1 Breakfast Bars Lack Nutritional Emphasis Despite the majority of bars being consumed in the morning, “Some of the largest bar marketers are not fortifying their products, even with a handful of nutrients,” Sloan noted. As such, breakfast bars have largely failed to differentiate and therefore slipped to commodity status. 2 Bars Haven’t Kept Pace with Specific Health Conditions Sloan pointed to 2015 Packaged Facts nutrition/cereal bar research citing 61 percent of nutrition bar users look for foods with nutrients that target specific health conditions. Add to that IRI’s 2015 state of snacking research identifying Sugar levels across the 50 percent of participants desiring benefits in their snacks/ category are expected bars that go beyond basic nutrition. For example, one in five often buy snack bars to boost energy/mood, and 17 percent to continue falling, and to manage weight. products such as savory Thomas noted a number of leading bar brands have been criticized for excess sugar levels. In response, sugar levels cereal bars have emerged. across the category are expected to continue falling, and products such as savory cereal bars have emerged. His thoughts on the next big thing? Low-calorie and/or portion-controlled snack and cereal bars. Viamari recommended playing on bars for targeted markets, such as heart health or weight management. And in out-of-the-box thinking, Sloan suggested pairing nutrition bars with dips—one of the fastest-growing categories in the marketplace—for a high-protein snack pack. She pointed to Nielsen data indicating fresh protein snacks drew sales of more than $19 billion in 2014. A multibillion dollar category in their own right, bars have hardly run their course. Whether focused on clean label, high protein, indulgence, meal replacement, children’s snacking or anything in between, consumers are amenable to bars, particularly as the product offerings evolve to better meet their needs—and desires. In terms of market share, Euromonitor International concluded, “As this category continues to grow, it poses an increasing threat to other snack categories and will likely attract new manufacturers.”
15 INSIDER Raising the Bar Digital Issue March 2016 Search, Find & Engage Suppliers
STOREFRONT HIGHLIGHTS: Discover New Ingredients, Ideas & Connections
SupplySide Storefronts is the tool you need to help search new ingredients and solutions to launch Easy-to-use workflow tool new products and innovations. Make it a part of your daily workflow as a discovery tool to find new business contacts and connections. We are here to help you gain the knowledge and ideas you need, by providing downloadable supplier resources and easy-to-find company info. Engage Search by Ingredient, Solution, with your new suppliers and request an RFP to start Location or Supplier building your new partnerships.
What are you waiting for? Engage your suppliers today.
Access Whitepapers, Videos, Website, Request a Proposal, view Ingredients and more START HERE supplysidestorefronts.com Bar Formulation
Raising the Nutritional Bar Functional ingredients and formulation strategies for building better bars by Judie Bizzozero
INSIDER's Take Growth in the bar segment is being Plant-based proteins are gaining When formulating with fibers, it driven by increased demand for popularity and projected to stay is important to understand the products with healthy halos and on-trend. digestibility of the fiber source. transparency on ingredient lists.
Bars have come a long way since the early 1980s when they were a go-to energy source for runners. Today, bars have exploded beyond the sports arena to include breakfast bars, energy and nutrition bars, fruit bars, granola/muesli bars and other snack bars appealing to a wide range of consumers. But as the global bar category continues to evolve, so too will consumers’ expectations for convenient, portable products that deliver taste and functionality. What’s more, growth in the energy and nutrition bar segment is being driven by increased demand for products with a healthy halo and more transparency on ingredient lists. In particular, protein, probiotic and non-genetically modified organism (GMO) claims are in high demand, noted Ricardo Rodriguez, marketing manager, confectionery & bakery, Ingredion Inc. “Bars are growing rapidly, especially in the Millennial and Boomer markets, which are segments we traditionally don’t find many similarities in,” said Hartley Pond, senior vice president of technical sales, FutureCeuticals. “We are also seeing increased interest in condition- specific nutritional bars, such as heart health, cognitive health and healthy energy.” And when it comes to fortification, the sky is the limit. Elyse N. Lovett, marketing manager, Kyowa Hakko USA Inc., has seen increased demand for personalized smart bars where consumers can cherry-pick specific functional ingredients they want included in their bars. She cited the company’s Cognizin® citicoline as a popular ingredient for personalized bars in the sport nutrition space to boost focus and brain energy. While protein and fiber have been—and continue to be—the gold standard for nutrition bars, other ingredients are turning up in new product launches, including sweet potatoes, ancient grains, coffee berry, green tea, chia, green peppers, seaweed, pumpkin seed and olives. But in the end, product formulators must deliver innovative bar formulations and formats that don’t sacrifice taste, texture or nutritional value.
IN THIS ISSUE Bars Market Data p.5 New Bar Launches p.26 Table of Contents p.2
17 INSIDER Raising the Bar Digital Issue March 2016 EARLY BIRD RATES EXTENDED TO MARCH 18 supplysideshow.com Uncovering consumer demand Only at Ingredient Marketplace. The key to success in the health and wellness space is to We’re focused on formulate finished products that meet existing consumer understanding consumer demand and drive future desires. Join us for the exclusive expectations and release of the Ingredient Marketplace Mind of the perceptions in key ingredient Consumer Study, which reveals: categories because this is • What trends and expectations are impacting the the real foundation on how Healthy Aging category? successful products come to life. • How will Sports Nutrition attitudes and demands evolve in the future? Make plans now to come get new ideas, meet suppliers, • What health trends are fueling the Probiotics space? and make connections for • How are functional foods and beverages becoming your next big innovation. core to Weight Management behavior? Bar Formulation
Keeping It Clean Consumers’ desire to live healthier is shaping how nutritional bars are made and pushing clean-label ingredients to the forefront. Need proof? The 2014 Food & Health survey from the International Food Information Council (IFIC) Foundation found more than 90 percent of U.S. consumers think about the healthfulness of the food they consume and pay attention to ingredient lists. “If you can simplify the ingredient legend or add a claim, such as a ‘non-GMO’ or ‘made with ancient grains,’ that’s an advantage in the bar world,” said Brian Armstrong, senior director of innovation and R&D, Bunge. “And a lot more of the inclusions you see now are ingredients people recognize, be they whole nuts or seeds, oat flakes or pieces of fruit. Consumers perceive recognizable ingredients as less processed. We are seeing this trend in oils, and some bars are now made with high-quality, expeller-pressed oils, which we started offering last year.”
“If you can simplify the ingredient legend or add a claim, such as a ‘non-GMO’ or ‘made with ancient grains,’ that’s an advantage in the bar world.” — Brian Armstrong, senior director of innovation and R&D, Bunge
Alison Raban, certified food scientist, BI Nutraceuticals, agreed that clean label is top of mind with consumers and driving interest for more naturally functional ingredients. She cited psyllium fiber as an example because it can function similar to a gum, helping with texture and structure in bars while adding dietary fiber and other beneficial nutrients. “This provides both function and nutrition from just one clean-label source, addressing consumer demand,” Raban said. Yet, the challenge facing product developers is to be innovative and still stay within those simple ingredients. “Savory bars, rich with vegetables, may be part of the answer,” said Carol Lowry, senior food scientist, Cargill. “Recent savory bar launches have included everything from green peppers and seaweed to olives and beets. More creative combinations of sweet and savory flavors are on the horizon too, with fruits paired with ginger, nutmeg or even chile varietals.” Another plus for savory bars is they tend to have lower sugar content and are perceived as a healthier choice, said Jim Nagy, president, Carolina Innovative Food Ingredients, whose sweet potato ingredients offer formulation benefits such as reducing sugar content and adding fiber, vitamins and minerals. “The other big trend we’re seeing is a more diverse and culinary set of flavors. Consumers, particularly at the premium end of the nutrition bar market, are looking for
19 INSIDER Raising the Bar Digital Issue March 2016 Bar Formulation
more exciting options than the standard chocolate and fruit flavors. So we’re seeing bars that have unusual spice blends, salted caramel or other bold flavors, like coffee,” Nagy said.
Formulation Challenges and Solutions In addition to convenience, nutrition bars offer consumers various health benefits via the addition of protein, fiber, and vitamins and minerals. However, one of the strongest trends driving the bar category is protein fortification because it opens opportunities for different sources of protein such as whey, pea and flax—ingredients that relate to trends and claims around energy, satiety, gluten-free, and overall health and well-being. Plant-based proteins are gaining in popularity and projected to stay on-trend, particularly since the United Nations named 2016 as the “Year of the Pulse.” In addition to the nutritional benefits of protein, pulses address consumer need for clean-label products. “Pulses can boost the nutritional profile of formulations, replace allergens and also help support popular label claims such as non-GMO, vegan and gluten-free,” Rodriguez said. However, protein fortification in bars typically presents challenges relating to texture, taste and shelf life, and manufacturers must continue to invest in research and development (R&D) to ensure the ingredients don’t compromise those attributes in the end product. “Consumers can find bars with 30- to 40-percent protein that have an awful texture and taste, or they can find delicious soft bars with a very low-protein content for limited health benefits,” said Kate Sager, marketing manager—America, Ingredia. “A soft, but firm texture seems to be most desired by consumers, as it’s convenient and portable. Ingredia’s RODIET Bar ingredient improves the texture and softening qualities of the bars while reaching high-protein content, minimizing bar hardening and extending shelf life.” Marilyn Stieve, business development manager—bars, Glanbia Nutritionals, said vegan proteins tend to lack moisture and confer off-flavors. Glanbia’s OptiSol® 5000 series provides gum mucilage and water-binding properties to manage moisture content in bars, preventing hardening and maintaining an appealing texture. “In addition, the expanded barGain® portfolio consists of highly functional, neutral-tasting plant protein blends that deliver high levels of vegan protein,” she said.
Key Considerations for Bar Formulation
Meeting target nutrition profiles, e.g., calories, protein, fiber, sugar, carbohydrate, etc. Delivering desirable eating quality, including taste, texture and mouthfeel. Ease of manufacturing and processing efficiency. Maintaining freshness and desirable shelf life. —Greg Paul, Ph.D., marketing director beverages & bars, DuPont Nutrition & Health
20 INSIDER Raising the Bar Digital Issue March 2016 Bar Formulation
Eric Kimmel, co-owner and vice president, Noble Foods Inc., noted with the success of Soy protein products like Vega, more companies are looking is the only plant-based protein to capitalize on the “free from” claim bandwagon that has a protein digestibility- (soy-free, dairy-free, GMO-free, etc). Pricing, corrected amino acid score (PDCAAS) of 1.0, which is equivalent however, has yet to keep pace with these new to dairy and egg proteins. sources of protein like pea, nuts, ancient grains, etc., so it remains to be seen how many new —Greg Paul, Ph.D., marketing director beverages & bars, products actually hit the market that contain high DuPont Nutrition & Health levels (10 to 20 g) of these plant-based proteins. But selecting the right protein is absolutely critical. “Soy protein is the only plant-based protein that has a protein digestibility-corrected amino acid score (PDCAAS) of 1.0, which is equivalent to dairy and egg proteins,” said Greg Paul, Ph.D., marketing director beverages & bars, DuPont Nutrition & Health. “Soy protein delivers the taste and texture qualities consumers desire. In addition, functional soy proteins effectively manage and extend shelf stability of high-protein nutrition bars by slowing the hardening of bar texture and thus enhancing consumer acceptance.” Aude Ragot, product manager, Ingredia Functional, recommended using native whey protein to enhance softness, chewiness and non-powdery bars’ matrix; as well as micellar casein, which brings firmness, non-stickiness and lack of crumbliness. “When using these two proteins, it’s important to optimize the ratio of these proteins for the development of high-protein bars to have the best texture and taste outcome. Regarding the process, time and temperature can influence the consistency, the powdery and the firmness of the bars. For example, the cooling temperature will influence the firmness of the bars,” she said. However, if a bar is made from a single source of protein, off-notes may be difficult to mask and may interfere with the taste. “Diversifying a bar’s protein sources can dilute any negative impact; if the bar has a blend of soy protein, pea protein and the protein that’s inherent in the grain, you’ll create a product that delivers the protein customers seek and that tastes good, too,” Armstrong said. Another way to add protein to bars is through enhanced compound coatings. “Do a search for ‘protein and chocolate’ and you will find plenty of new bars with a protein chocolatey drizzle, coating or chip,” Lowry said. Fiber is also a go-to ingredient for nutrition bars because many consumers fall short of the recommended daily amount, and bars offer a small, portable way to increase fiber intake. But when formulating with fiber, it is important to understand the digestibility of the fiber source, as well as key functionality, such as viscosity, binding property, flavor profile, and impact on bar processing and shelf life. Fibers, especially well-tolerated fibers such as polydextrose, remain popular in health- and-wellness bars positioned to the active lifestyle consumer, Paul noted. Other fiber sources used in bars include inulin, soluble corn fiber, isomalto oligosaccharide (IMO) and
21 INSIDER Raising the Bar Digital Issue March 2016 Bar Formulation
resistant maltodextrins. In addition to fiber enhancement, fiber sources often function as a binder, as well as a way to lower sugar content. Inulin—a somewhat sweet syrup that’s good for binding—was once the standard go-to fiber for bars. But inulin is soluble and fermentable, so it can be irritating to the gut for some people. So, more bar makers are looking for insoluble fibers, like corn, wheat, oat and other bran fibers, Armstrong said. Alternate sources of liquid fiber also are becoming popular for bar formulation. “While inulin was very popular over the last few years, intestinal bloating and discomfort led to the invention of other ingredients that have become very popular. IMO has become very popular in bars because it can be used at high levels, is very high in fiber, is now GMO- free and is sweet enough to use as a binder,” Kimmel said. “Its only downfall is its name, which sounds very scary, so it’s usually followed by ‘(soluble corn fiber).’ Quest has used this ingredient to great effect.” Ana Aguado, food scientist, TIC Gums, said alternative fiber sources, such as Nutriloid® Gum Arabic FT-90, can Chicory root fiber serves as a fat increase the fiber content in applications mimetic, mimicking the texture such as bars while also contributing the functional properties of gum acacia like of fat, giving added richness binding and film formation. This allows and improved mouthfeel. manufacturers to create products with “high fiber” claims with the use of one product instead of several. Beyond its health benefits, chicory root fiber, such as Cargill’s Oliggo-Fiber, provides a number of functional properties. Chicory root fiber serves as a fat mimetic, mimicking the texture of fat, giving added richness and improved mouthfeel. “It acts as a bulking agent, replacing the bulk left from sugar reduction,” Lowry said. “In addition, it’s a flavor modulator, making it an excellent partner for high-intensity sweeteners and polyols in reduced-sugar applications.” Reduced-sugar applications make managing moisture problematic since water activity increases as sugar decreases. “To compensate, product developers may need to add gums, starches or binders to take up the excess water,” Lowry said. Rodriguez noted sweeteners such as glucose syrups, high-maltose syrups, fructose and fructose syrups, and varying levels of glycerin combinations are the most traditional binder syrups. Glycerin is used for its hygroscopicity, low water activity and plasticizing properties. High levels of glycerin, though, can lead to problems such as off-tastes and warming sensations caused by an exothermic interaction with moisture. Fructose is also a good humectant, and improves sweetness, palatability and stability. “If reduced sugar or sugar-free are goals, maltitol syrups (which contain more than 50-percent maltitol on a dry basis) can help to control the moisture by absorbing and retaining moisture longer than glycerin,” he said. “This would help the bar to maintain its texture and stability for a longer period of time. Maltitol syrups also work well with high-potency sweeteners to balance and round out the sweetness profile.”
22 INSIDER Raising the Bar Digital Issue March 2016 Bar Formulation
Balancing Texture & Taste Bar texture—important for creating a satisfying sensory experience—can be challenging. People want a bar that’s not too hard, nor extremely soft. Achieving an ideal texture and pliability comes from understanding ingredient functionality. “For example, binder syrup has long-chain carbohydrates and short-chain carbohydrates. Getting that mix right—as well as the right ratios of sugars, fats, fibers and flavors—gives you excellent texture and taste, while still creating a bar that’s healthy,” Armstrong said. “Since shelf life and texture are primary concerns, bars need to be formulated so as not to harden on the shelf,” Pond said. “Incorporating soluble fiber products, such as QuinoaTrim, Nutrim and AncienTrim [from FutureCeuticals], can provide a creamy and softer texture to nutritional bar formulations.”
“A bit of fat from an oil such as canola or soybean can give a pleasant mouthfeel, especially in bars that are higher in protein or fiber.” — Carol Lowry, senior food scientist, Cargill
Different textures can determine the degree of cohesiveness, moisture and fracturability of the bar. In order to provide a common language to assess the textural components during the product development process, TIC Gums created a Texture Lexicon to standardize the way product texture is described. “We work with product developers to deconstruct combination terms like ‘smooth,’ ‘creamy’ and ‘indulgent’ into individual texture attributes such as mouth coating, denseness, mixes with saliva, etc.,” said Amanda Pattison, lab technician II, TIC Gums. “This allows us to speak the same language and focus on the characteristics the manufacturer would like to remain the same and those they would like to change. This continuity helps our customers reach their selected target with less development time.” When working with protein, flavor can be a challenge, especially some of the newer protein sources. The key is to design the product’s flavor profile around the protein source. But whatever the functional ingredient used, it’s critical that consumers have a positive eating experience. “Adding humectants such as honey and glycerin can help keep bars soft over time,” Lowry said. “A bit of fat from an oil such as canola or soybean can give a pleasant mouthfeel, especially in bars that are higher in protein or fiber.” Ginny Busch, vice president of sales and marketing, Zumbro River Brand Inc., said high-protein crisps are ideal for bar formulation because they provide enjoyable crunchiness, reduce the glycemic index and support a healthy image for nutrition bars.
23 INSIDER Raising the Bar Digital Issue March 2016 Bar Formulation
What’s more, they improve the palatability of bars and allow product developers to meet their protein claims. The company recently added a whey protein crisp with 80-percent protein to its Z-crisps® line of high-protein crisps. The crisps, made using a proprietary extrusion process, have a crunchy texture and a mild, dairy flavor. “Using protein crisps in bars—along with a balance of carbohydrates, fibers and desirable fats—delivers palatability and textural shelf life without the need to use significant levels of polyols, which are known to have a disruptive effect on the digestive tract,” Busch said. “High-protein crisps also allow bar manufacturers to avoid having to solubilize and incorporate viscous high-protein solutions.”
Inclusions Abound Consumers are attracted to visual ingredients and unique textures in nutritional bars, achieved with inclusions like crisps, grains, fruits and seeds, Stieve stated. “The clean and healthy properties of ingredients such as chia, flaxseed, quinoa and amaranth improve the nutritional content of bar products. Rich in fiber and protein, these ingredients also contribute to enhanced texture for an enjoyable eating experience,” she said. Glanbia’s portfolio of protein ingredients comprises HarvestPro™, a line of ancient grain-derived, vegan protein crisps that offer nutritional and functional benefits to address the current trends.
“Ingredients like quinoa, millet, amaranth, teff and sorghum are showing up more and more in bars, but in more exciting puffed or crisped versions of these ingredients.” — Alison Raban, certified food scientist, BI Nutraceuticals
Quinoa Millet Amaranth Teff Sorghum
Jeff Smith, director of marketing, Blue Diamond Global Ingredients Division, said almonds add to the taste, texture, total protein and nutrition content of the final product—and have the added benefit of their sweet, nutty flavor. “Almonds are available in any form required, from chopped, diced, slivered or whole to almond flour, meal or paste,” he said, noting almonds also have 4 g of fiber per ounce and contain healthy monounsaturated fats.
24 INSIDER Raising the Bar Digital Issue March 2016 Bar Formulation
But nuts and seeds are susceptible to lipid oxidation and as a result, bars containing a high level of those inclusions often become rancid midway through their expected shelf life. Paul suggested using natural antioxidants that can control oxidation and minimize rancid off-flavors without using artificial preservatives. Inclusions like soft fruits such as grapes, berries and bananas also help bind ingredients together. Fruit juice concentrates and purees can be incorporated into the binding syrup to add flavor and color, and enrich products naturally. Fruit—particularly dried fruit that often contains added sugars—has been a staple of the nutrition bar category. Developments in processing technology make it possible to concentrate real fruit into pieces and flakes that offer an improvement in taste, texture and appearance without any added sugar, said Wayne D. Lutomski, vice president, international global ingredients, Welch’s Foods Inc. However, it’s also fair to say that it can be difficult to formulate with real fruit. In dry products such as nutrition bars, incorporating fruit has traditionally presented a significant technical challenge, since introducing additional moisture poses a threat to the texture and shelf life of the finished product. “Welch’s uses ultra rapid concentration (URC®) processing technology to create FruitWorx® Concord Grape pieces and flakes developed to mitigate moisture transfer, which enables manufacturers to include real fruit in dry products where it would otherwise be impossible without seriously compromising shelf life,” Lutomski said. Inclusions also can present challenges with the adhesion of small and large particulates such as nuts, seeds and dried fruits, Aguado cautioned, and manufacturers must ensure the end product is able to stay together through manufacturing, packaging and transportation, and still look the same as the day it was produced. “This is especially important in bars with lower sugar content that have a tendency to fall apart easily. TIC Gums’ Add-Here® 3200 helps bind bars together for easier processing and cutting, as well as helps bars maintain their shape,” she said. Another challenge can be seen in products containing fillings where water migration may occur from the filling to the bar portion. “Gums can help bind the water in the filling and help the bar maintain its firmness while in the package. This will also enhance the eating experience by not having the filling come out too easily and assist with the ‘on-the-go’ convenience of bars,” Aguado noted.
What’s Next? According to Euromonitor International’s 2015 category report “Biscuits and Snack Bars in the U.S.,” in the past five years, the energy and nutrition bar sector has emerged as one of the fastest-growing categories in packaged food. But if you think bars have run their course, think again. Today’s offerings are packed with functional ingredients that offer something for everyone—from kids to seniors, and everyone in-between. This means product developers will continue to raise the bar to provide tasty and functional bars to hungry consumers. But remember, taste is one of the most important aspects of a product. All the functional ingredients and all the marketing efforts won’t matter if the bar is not enjoyable over the entire shelf life.
25 INSIDER Raising the Bar Digital Issue March 2016 New Bar Launches
New Bar Products are Worldlier, Healthier by Steve Myers
INSIDER's Take Increased protein from various animal New bar products are delivering lower Savory flavors have emerged in recent and plant sources is an ongoing trend sugar content to address consumers’ bar launches, overlapping with a move in new bar launches. concerns over obesity and disease. toward ethnic and exotic offerings.
The choices in the nutrition bar aisle are moving well beyond coated or non-coated and chocolate or yogurt. Chocolate- and peanut butter-based flavors are also a bit passé, even if they are old standards. The most exciting bar launches are eschewing simple candy-like characteristics to offer consumers healthier and more distinctive choices. Think ethnic flavors, savory instead of sweet, and health goal-oriented. Let’s be honest: bars are 100-percent convenience; most of what you get in a bar could be consumed via regular food with, perhaps, assistance from supplements. But who has time for all that? Regardless of how bars were or are intended, people use them as snacks, meal replacements and alternatives to supplement pills and capsules. So bars should mirror the trends in those categories, right? In terms of healthiness, loads of bars have and remain a smidge above candy bars, which lean toward the snack role. However, the past few years have brought some clean-label bars comprised mostly of fruits, nuts and seeds. This definitely connects to the clean, simple ingredient labels increasingly charming the greater food segment. The popular low-carb brand Atkins launched its first non- weight-loss bar, Atkin Harvest Trail Bars, which are low-carb (less than 7 g) and -sugar (less than 4 g) and promise a decent source of protein (8 g) and fiber (9 to 10 g). The flavors aren’t necessarily trendy, save sea salt caramel and a new brand endorsement from Kim Kardashian—is she still considered trendy? However, the bars strike two notes of a popular chord: clean ingredients and increased protein-to-carb ratio. Protein bars are not new, but the recent protein trend across all consumables categories is certainly having an impact on new bar launches. Couple this trend with the general move toward wellness and active lifestyles, and the market appropriately sees LET’S BE HONEST: an uptick in new bar launches touting the paleo and other low- bars are carb/high-protein diets. 100-percent The winner of the 4th annual SupplySide CPG Editor’s Choice convenience Awards (ECA) winner in the food bar category in 2015 was the
IN THIS ISSUE Bar Formulation p.17 Marketing Nutrition Bars p.31 Table of Contents p.2
26 INSIDER Raising the Bar Digital Issue March 2016 New Bar Launches
Urban Raccoon brand Grainless Certified Paleo Bar. The voting editors liked that the bars were not only gluten-free—the bar’s creator followed a gluten-free lifestyle for health reasons—but also that they were dairy-free, soy-free, non-GMO (genetically modified organism) and vegan. Another winning attribute was the bars tapped into the growing market of busy consumers, most notably women ages 25 to 45 years who live active lifestyles and need “lean” fuel for their hectic schedules. This reflects the growing data showing nutrition bar consumers are more likely to be women (see page 5 for more on this and other market trends). Paleo was a popular designation for new bars, as two other SupplySide ECA finalists, Simple Squares (Simplified Foods) and Wild Zora Meat & Veggie Bars (Wild Zora Foods) touted a paleo designated clean label of ingredients that are gluten- and soy-free, with some varieties also free from dairy, refined sugars, preservatives, antibiotics, MSG (monosodium glutamate), nuts and GMOs. Somewhere between jerky and true bar, the Wild Zora bars highlight two growing trends, health condition-conscious and foodie sensibilities. Some versions are autoimmune protocol (AIP)-compliant, meaning free from eggs, nuts, certain seeds, nightshade produce (potatoes, tomatoes, eggplants, sweet and The past few years have brought hot peppers, cayenne, red some clean-label bars comprised pepper and tomatillos), high mostly of fruits, nuts and seeds. fructose-based sweeteners and This definitely connects to the clean, many other foods and additives deemed as autoimmune simple ingredient labels increasingly unfriendly by paleo diet experts. charming the greater food segment. The flavors are reminiscent of a trendy restaurant menu: BBQ Beef with Hickory Tomato; Chili Beef with Cayenne & Apricot; Parmesan Beef with Tomato & Basil (using only rBST- and hormone-free cheese); Lamb with Spinach & Rosemary (nightshade-free, AIP-compliant); and Turkey Masala with Spinach. This foodie trend was the basis for a new line from Abbott Nutrition, makers of the longtime bar brand ZonePerfect. The new line, called Curate, focuses on “wholesome, real food ingredients,” according to the company, and represents a culinary approach. The company created chef-inspired unique flavor profiles, such as Dark & Tempting, which features balsamic vinegar, fig and hazelnut in a sweet and savory blend with a touch of orange citrus zest. The other five flavor profiles feature fruits (lots of berries), nuts (almonds and pistachios), seeds (flax, chia and hemp) and grains (quinoa), and almond butter. Mediterra Nutrition hit the scene with its Mediterra line of savory nutrition bars in spring 2015 with a pantry of ingredients found in the renowned health Mediterranean diet. The line debuted with six unique flavors, such as Tomato/Basil/ Capers and Olive/Walnut/Chives, based around pea protein
Photo credit: Mediterra Nutrition
27 INSIDER Raising the Bar Digital Issue March 2016 New Bar Launches
crisps and olive oil. It has since added a line of Sesame Honey Energy bars, which feature Greek honey and pistachios from the Greek island of Aegina, as well as Yogurt and Oat Bars, which contain fig paste, sunflower seeds, pistachios and various fruits (raisins, apricots and cherries). The worldliness of bars is addressing the movement toward responsible and healthy products tied to the earth and not labs. Bars and bar companies are moving toward a healthier impact on the environment, communities and workers as well as on consumers’ health. Diet and snacking are the main motivations in formulating bars, but current health concerns common to many around the world are influencing new bar products. For instance, the obesity and diabetes epidemics have started to heighten awareness of the dangers of excess sugar intake. Many new bar products are featuring lower amounts of sugar, non-caloric sweeteners and/or natural sugars present in ingredients with health properties, such as agave, honey, fruits and vegetables.
Many new bar products are featuring lower amounts of sugar, non-caloric sweeteners and/or natural sugars present in ingredients with health properties, such as agave, honey, fruits and vegetables.
Sugar is one of the big concerns for children’s health. Wholesome Goodness decided to follow USDA’s Smart Snacks in School nutritional standards when creating its Blueberry Raisin Cereal bar. The result was a bar with less than 100 calories, only 6 g of sugar, and no trans fats or cholesterol. This Wholesome Goodness bar, which was a 2015 SupplySide CPG ECA finalist, contains a healthy 5 g each of whole grains and protein. In fact, protein bars are often favored for kids because of the low sugar and carb content. However, the top protein bars designed for athletes contain upwards of 20 g of protein, which is generally more than most kids need. Niko Bars were created as a healthy protein bar by a health-conscious mom for her toddler son, Niko. Each bar contains 12 g of plant-based protein, which is around the upper end for children’s products. They are also made gluten-free, vegan and free from GMOs, and with only 5 g of sugar. Most recently, Niko bars launched a non-vegan bar using grass-fed, pasture- raised whey protein. While the vegan bars’ flavors, such as cherry chocolate chip and peanut butter & chocolate, are good for kids, the new non-vegan bars are catering even more to kids’ desires with flavors such as candy cane and birthday cake, to bring some sweet fun to an otherwise low-sugar snack.
28 INSIDER Raising the Bar Digital Issue March 2016 New Bar Launches
While athletes often seek more protein than such kid-friendly bars, sports nutrition bars share many other characteristics with the children’s formulations. With flavors like cookies and crème, some kids might be tempted to the new Whey Protein bars from GLUKOS, a company known for its energy products. The company said just as with its energy gels and effervescent tabs, the bars are sweetened by only glucose, a “good” sugar used by the body to make energy. In addition to glucose and whey protein isolate (15 g/bar), the bars are made without high-fructose corn syrup (HFCS) and artificial colors and sweeteners, and contain no gluten or caffeine. One of the newest entries to the sports nutrition bar category comes from MediFast, a company known more for its weight-loss products, including shakes and diet bars. Recognizing the growth of the sports nutrition market, MediFast created Duel Fuel as two-layer bars—one crispy and crunchy with whole grains, and the other sweet and chewy with peanut butter or chocolate. Each bar has 15 g of whey-based protein, 150 calories and only 3 g sugar, despite as many as four sweet sources (brown rice syrup, organic blue agave syrup, malitol syrup and dried cane syrup). Just as in the rest of the bar market, there is a movement to Just as in the rest of the bar make sports bars with simpler ingredients. Ally’s Bar was market, there is a movement created by pro cyclist Ally Stacher as an alternative to to make sports bars with big-brand bars with what she simpler ingredients. calls unrecognizable ingredients. Her favorite mid-ride snack was sweet potatoes, so she based her bars on this nutrient-rich and low-glycemic vegetable with roots in Latin America. The certified organic, gluten-free, kosher and non-GMO bars are sweetened by dates and agave, and also contain various fruits (bananas, cranberries) and a range of healthy fats from seeds, nuts and coconut oil. Ally’s Bar is intent on also improving the environment and the world, through efficient packaging and shipping, and supporting community efforts such as the trauma- recovery-focused African Healing Exchange and various growth opportunities to promote opportunities for women in sports. The Eco-Friendly Food Initiative (EFFI), makers of Probiotic CareBars, takes social responsibility and global awareness to new heights. First, the bars. A 2015 SupplySide ECA Finalist, the Probiotic CareBar line features dairy-free probiotics and was designed in partnership with dieticians and wellness experts from the renowned Cleveland Clinic to address and support digestive and immune health. These are top health concerns for developed- and Photo credit: EFFi Probiotic CareBar
29 INSIDER Raising the Bar Digital Issue March 2016 New Bar Launches
developing nation adults and children. The bars contain various combinations of goji berries, cashews, green tea, coconut and cacao nibs, in addition to fiber and protein. Just as the ingredients are sourced from around the globe, EFFI Care360™ supports communities at home (the Americas) and abroad (Africa and India). Cancer walks, LGBT rights, animal advocacy and peace through art are some of its domestic initiatives. In Africa, EFFI supports efforts in Congo to protect human rights and offer rehabilitation to children in the war-torn region. In India, EFFI supports efforts to provide women in Kalkotta (formerly Calcutta) a way out of the sex trade via new employment opportunities from fair trade businesses; the company is a member of STOP THE TRAFFIK, Photo credit: Curate Brand Bar a global movement to stop and prevent human trafficking. Fair Trade is also the banner for CoffeeBar from New Grounds Foods. Each square bar has a full cup’s worth of fair trade coffee sourced via Chain Collective, a nonprofit supporting social, environmental, economic and equality initiatives in coffee-growing communities such as Guatemala, Uganda and Congo. New Grounds Foods also partners with an organization supporting initiatives in Nicaragua. Like so many nutrition bars before it, CoffeeBar was created by forward-thinking individuals trying to fulfill a gap in their nutrition, health and lifestyle. Fittingly, the product was launched with the help of a Kickstarter campaign. As is the current trend, the bars contain simple organic ingredients such as dates, cashews, agave fiber, almond butter and crisp brown rice. The three flavors are Mocha Latte, Tropical Coconut Mocha and Carmel Macchiato. The number of nutritional bar choices continues to grow, but manufacturers are differentiating their new bar products by serving the desires and trends of specific consumer groups, such as athletes, active moms, children or followers of diets such as paleo. The sugar, protein and carb levels are being tailored to these consumer segments, and ingredients are trending toward real food with a wider range of flavors both sweet and savory. And while giving customers what they want for improved health and wellness, many bars are also giving struggling communities and demographics a helping hand and a positive lift.
30 INSIDER Raising the Bar Digital Issue March 2016 Marketing Nutrition Bars
The Evolution of Marketing Nutrition Bars by Lindsey Carnett INSIDER's Take Nutrition bars are rebuilding their Bars catering to women have Branded ingredients and customizable reputation with natural, organic and capitalized on protein and fiber for products will be the next innovation non-GMO ingredients. satisfaction and fullness. in bars.
Nutrition bars are a popular staple of the healthy snack industry. First hitting the market in the 1980s and originally targeted as performance fuel for athletes, health bars are now increasingly marketed as products that can provide fitness fanatics with bursts of energy—banishing sluggishness and helping them reach their workout goals.
Stiff Competition, Earning Market Share Nutrition and health bars are stealing market share from the traditionally accepted leading snack and cereal bars. Between 2011 and 2013, the nutrition bar market grew by 34 percent, reaching US$2.2 billion and holding 39.6 percent of the market share, according to Valient Market Research. With so many different options, tastes and brands available, it is hard to remember a time when the nutrition industry was so competitive. As of June 2015, more than 1,000 types of nutrition bars were on sale, with growth in the category attributed to the consumer’s desire for a nutritional and fulfilling bar-shaped snack alternative. Atkins bars were one of the earliest types of nutritional bars to hit the market. According to Packaged Facts, from 2004 to 2014, the number of households consuming cereal bars for a convenient snack increased by 50 percent. Many Americans have moved away from the “three straight meals a day” model, preferring to eat multiple smaller meals and seek alternative snacks to curb hunger. The rapid growth of the nutrition bar market can in part be attributed to this trend.
Bars Faced Negative Publicity With nutrition bars quickly growing in popularity and taking their place in the snack mass market, many of these “grab-and-go” options lost their nutritional value. Several new bars were found to be laden with sugars—heavy on the carbs or containing high levels of undesirable ingredients. Recent studies and investigations backed this claim, with some bars found to contain as much sugar as a regular candy bar (Am Diet Assoc. 2000 Jan;100(1):97-100). Others contain additional vitamins and artificial ingredients, synthetically added through the processing cycle.
IN THIS ISSUE New Bar Launches p.26 Takeaways p.36 Table of Contents p.2
31 INSIDER Raising the Bar Digital Issue March 2016 Marketing Nutrition Bars
Nutrition bars are often widely marketed as meal replacements, or convenient options to banish hunger. It was recently reported that FDA is investigating the health claims and benefits of many nutritional bars, asking some manufacturers to remove misleading claims from their packaging. Tighter regulation of this growing, profitable industry is to be expected.
Natural Differentiation One of the most popular nutrition bar brands is Clif Bar and Co. A leader in the natural, nutritional bar space, Clif positions its brand as a snack bar that does not need to be consumed at traditional meal times. The brand successfully produces a variety of products that meet a consumer’s needs for “endurance sports and snacking,” with available options including the Builder’s protein bar, LUNA bar for women, and energy blocks and gels. Clif Bar also heavily emphasizes its use of organic and sustainably grown ingredients, with its products free of high-fructose corn syrup (HFCS), hydrogenated oils or sugar alcohols. This commitment to goodness helps Clif strongly position its products as a “healthy alternative” to sugar-laden snacks and treats. The active-conscious consumer is looking for a long-term nutritional solution, not a product that gives a short-term, sugary fix. Many other bars market themselves as organic, containing “healthy” ingredients, as well as gluten-free options. South Beach, NuGo and LUNA are all popular gluten-free alternatives in the nutrition bar marketplace.
The active-conscious consumer is looking for a long-term nutritional solution, not a product that gives a short-term, sugary fix.
Lean Protein and Fiber for Women Brands are also taking note of their most popular demographics, notably the bars-for-women market. thinkThin has recognized the appeal of protein to its key female demographic, launching products including Lean Protein and Fiber bars, containing 10 g and 5 g of each macronutrient respectively. Protein isn’t just for performance athletes, so manufacturers are creating bars that have nutritional high-performance value combined with exciting flavors like chocolate, salted caramel and peanut.
32 INSIDER Raising the Bar Digital Issue March 2016 Marketing Nutrition Bars
GMO-Free Trend in Bars Mintel data further demonstrates that there is strong growth in new product bars, with those including reduced or no sugar, added fiber and no additives or preservatives all performing well with consumers. With customers particularly focused on health and wellness, the popularity of bars that claim to be genetically modified organism (GMO)-free rose by 262 percent between January 2012 and December 2014 in North America. On a global scale, 16 percent of all new nutrition bar launches in 2012 promised to contain no GMO ingredients. Similarly, bars that contain all organic ingredients or have gluten-free properties have also experienced strong growth. With 87 percent of consumers thinking that non-GMO foods are a healthy option, according to Health Focus International, manufacturers will continue to produce new bars that are considered both good for consumers and the environment. Big brands such as Hershey, Kellogg and Mars understand the power of the nutrition bar market, launching new products in their quest to stake their claim in the market. In 2015, Mars released Goodnessknows Snack Squares, a product containing a With customers particularly focused nutritional mix of fruit, nuts and dark on health and wellness, the popularity chocolate. Hershey quickly followed suit, introducing Brookside Fruit and Nut Bars. of bars that claim to be genetically With more brands seeking to tap into the modified organism (GMO)-free rose unstoppable force of energy bars, this by 262 percent between January 2012 vastly competitive industry is set to and December 2014 in North America. become much more crowded.
Branded Ingredients are the Future of Marketing Bars As we look forward to the next generation of nutrition bars, innovation is likely to come from incorporating revolutionary branded ingredients, and the ability for consumers to customize the benefits they want to receive from their workout fuel. Element Bars is one company taking this approach with its “build a whole food bar” customization option. Enabling customers to select the bar’s texture—as well as choose between fruit, nuts and added nutritional boosts—consumers can be in complete control of creating a product that’s right for them and their fitness regime. A power key focusing on antioxidants, gastrointestinal (GI) health, brain/memory, heart and muscle strength helps to educate consumers and tailor the bar to their specific requirements. Nutrition bars continue to thrive thanks to multi-level marketing (MLM) companies such as doTERRA. Using branded appetite- suppressant ingredients like Appethyl in its products, clinically
Photo credit: Glanbia Nutritionals Bar approved studies provide significant
33 INSIDER Raising the Bar Digital Issue March 2016 Marketing Nutrition Bars Photo credit: Ingredion
weight to the science behind the bar. Taken with “healthy fat,” the primary benefits of doTERRA’s products help keep an individual feeling “full” for up to six hours, reduce cravings for unhealthy food and promote a healthy, green lifestyle. Information pages packed with science, as well as a personal approach on social media, help to inform the consumer and generate buzz surrounding the bars and their weight-loss properties. Similarly, wellness brands such as Melaleuca will look to patenting branded ingredients and innovate technology as a selling point for their nutritional products. Its Access products are patented as the first and only patented fat-conversion technology for enhanced workouts, helping to naturally block adenosine and turn fat into fuel. With this technology, Melaleuca sets its products apart from competitors like Clif and PowerBar, marketing them as aids to fuel a workout and sustainably lose fat at the same time. Similarly, Garden of Life’s fücoPROTEIN Bars are morphing the industry, using natural ingredients across the product range. Containing concentrated fucoxanthin, a natural non-stimulant thermogenic, fücoPROTEIN Bars claim they can help support a healthy metabolism and burn fat naturally. Citing research into natural compounds present in marine vegetables, a focus on the science behind energy bars could soon be a trend that new brands decide to embrace. In 2016, manufacturers will focus on producing nutrition bars that are deemed natural, healthy and clean, containing free-from ingredients and benefiting from a non-GMO make-up.
34 INSIDER Raising the Bar Digital Issue March 2016 Marketing Nutrition Bars
Marketing a Decadent Flavor Profile The flavors of energy bars will continue to tap into the trend of desserts, particularly those with an all-American focus. With many producers already manufacturing bars capturing the essence of cheesecake, pies, cookies and cobbler, it will be interesting to see which other popular desserts and treats make their way to nutritional bar status. Tapping into holidays and seasonal trends is another direction in which the nutrition bar market will continue to grow. Manufacturers such as Quest have already capitalized on this demand, with its successful autumn pumpkin pie protein bar a winner with consumers. When looking for new ways to market their products, brands will continue to push hard for links with other companies. The model of market leader KIND is one that many brands will seek to imitate, particularly with prominent product placement in branches of Starbucks, Bed Bath & Beyond and on Amtrak.
Pathos: Tapping into Celebrity Bar Sales Celebrities are also keen to capitalize on the popularity of energy and nutrition bars. Arnold Schwarzenegger’s Muscle Bars are popular with protein fans, and the continuation of the Skinnygirl range by Bethenny Frankel taps into her target market of the female working professional looking for a guilt-free treat. The expansion of the line to include protein bars and shakes in 2016 demonstrates the power of this growing market, and a demographic that’s keen to try a product linked to a famous face.
Setting the Bar Higher The U.S. food and nutritional bar market is projected to reach near $8.3 billion in 2016, according to marketresearch.com. With new products, tastes and shapes released on a regular basis, products need to combine nutritional value and excellence to steal the attention of an increasingly health-conscious, active consumer. With a push toward exceptional ingredients promising positive benefits for health and physical performance, the future has never been healthier for the nutrition and energy bar market.
Lindsey Carnett is CEO and president of Marketing Maven, an integrated marketing and PR firm ranked Top 50 in the United States in the food and beverage category by third-party ranking company O’Dwyer’s PR. Featured in Forbes and FOX News, she is a FOLIO Magazine 2015 Top Women in Media honoree and is recognized for helping consumer brands with clinically substantiated formulations launch in North America.
Photo credit: Curate Brand
35 INSIDER Raising the Bar Digital Issue March 2016 Takeaways
Takeaways for Your Business
Bars are big. In fact, the U.S. bar market, which includes breakfast bars, energy and nutrition bars, fruit bars, granola/muesli bars and other snack bars, is projected to reach nearly US$8.3 billion in 2016, according to marketresearch.com. In the past five years, the energy and nutrition bar sector has emerged as one of the fastest-growing categories in packaged food. Energy and nutrition bars continued to register strong growth in 2015, with a slew of innovative new product launches. Euromonitor International estimated value sales grew by 10 percent in current terms, as these products moved beyond the gym bags of athletes and dieters and into more people’s handbags and desk drawers. But as the global bar category evolves, consumers are seeking convenient, portable products that deliver taste and functionality. For this reason, manufacturers and marketers need to get into the minds of consumers to understand how they perceive and use nutrition bars, which is crucial to creating a successful product. Successful bar makers are differentiating their new products by serving the desires and trends of specific consumer groups, such as snackers, athletes, active moms, children and seniors. Need proof? thinkThin has recognized the appeal of protein to its key female demographic, launching products including Lean Protein and Fiber bars, containing 10 g and 5 g of each macronutrient respectively. Brands such as Clif Bar, LÄRABAR® and KIND® tout the nutritional profile, minimal processing and high-quality ingredients of their products and have witnessed incredible growth, emerging from relative obscurity to become major forces. Bars also are stealing market share from the traditionally accepted leading snack and cereal bars. As of June 2015, more than 1,000 types of nutrition bars were on sale, with growth in the category attributed to the consumer’s desire for a nutritional and fulfilling bar-shaped snack alternative. “Three-quarters of U.S. consumers who buy cereal/snack bars eat them as a snack between meals, whilst over 60 percent eat them as a portable breakfast option,” said Jonathan Thomas, principal market analyst, Leatherhead Research Ltd. “Consumption tends to be skewed toward the latter half of the day, either as a between-meals snack or around periods of exercise,” he added. Protein isn’t just for performance athletes, so manufacturers are creating bars that have nutritional high-performance value combined with functional ingredients such as fiber, nuts, fruits and plant-based proteins. What’s more, bar flavors are moving beyond chocolate and peanut butter to include trending flavors such as salted caramel and savory options. With the push toward high-quality, functional ingredients promising positive benefits for health and physical performance, the future has never been healthier for the nutrition and energy bar market.
IN THIS ISSUE Marketing Nutrition Bars p.31 INSIDER Contacts p.37 Table of Contents p.2
36 INSIDER Raising the Bar Digital Issue March 2016 Contacts
naturalproductsinsider.com
Natural Products INSIDER EDITORIAL is the leading information source for marketers, Editor in Chief Sandy Almendarez ...... [email protected] manufacturers and formulators of dietary supplements, healthy foods and cosmeceuticals. Managing Editors Rachel Adams ...... [email protected] Since 1997, INSIDER has been serving the Judie Bizzozero ...... [email protected] needs of the global nutrition industry. INSIDER Steve Myers ...... [email protected] boasts the largest magazine and web audience Content Marketing Manager in the industry delivering news, analysis and Karen Butler ...... [email protected] features to executives involved in the expanding Legal and Regulatory Editor market of global nutrition. The Natural Josh Long ...... [email protected] Products INSIDER brand includes a print SALES magazine, a website, e-newsletters, reports, Vice President, Sales, Health & Nutrition digital summits, whitepapers, digital issues and Danica Cullins ...... [email protected] image galleries. Account Director Ioana Neacsu ...... [email protected] Senior Account Executives Anthony Arteca ...... [email protected] Karen Salas ...... [email protected] Todd Berger ...... [email protected] PRESIDENT John Siefert Thomas Baker ...... [email protected] CHIEF FINANCIAL OFFICER Kelly Ridley Todd Willis ...... [email protected] VICE PRESIDENT, Sales Operations Specialist HEALTH & NUTRITION Jon Benninger Nick Casura ...... [email protected] VICE PRESIDENT, CONTENT, HEALTH & NUTRITION Heather Granato MARKETING SERVICES HUMAN RESOURCES DIRECTOR Sabrina Wolf Marketing Manager Art Director, Health & Nutrition PUBLISHED BY INFORMA EXHIBITIONS LLC Katie Egley Andrew Rosseau 3300 N. Central Ave. Ste 300, Phoenix, AZ 85012 Audience Marketing Director Art Director Katherine Jackson Patti Valdez Tel. 480-990-1101 • Fax 480-990-0819 Audience Marketing Manager Media Operations Manager Website: naturalproductsinsider.com Amanda Saye Melissa Ewing Vice President, Marketing Services Program Manager Danielle Dunlap Kristin LaBarbera [email protected]
EVENTS DEPARTMENT
Senior Vice President, Events Education Director Dana Hicks Shilo Lusson Event Director Education Coordinator Marisa Freed Alyssa Sanchez
37 INSIDER Raising the Bar Digital Issue March 2016