Obesity Issue Discussed At NCA Conference
By Mary Ellen Kuhn
With a record number of candy industry executives assembled
in Orlando, Fla., last month for the National Confectioners Association's State-of-the-Industry
Conference, NCA took the opportunity to focus on the national obesity crisis
and how it will affect the candy category. Speaker presentations addressed opportunities
and risks for manufacturers and retailers, approaches to public policy, and
consumer behavior trends.
"We need common
sense in the food court and not legal action in the courts." — Rep. Ric Keller , R.-Fla., sponsor of proposed legislation to ban frivolous anti-obesity lawsuits |
Russ Case, director of sales for Los Angeles-based candy maker
Adams & Brooks, set the stage with an overview presentation that included an
analysis of the current low-carb craze.
There's no disputing the scope of
America's obesity problem, he pointed out. In 1971, 14.5 percent
percent of Americans were obese (dangerously overweight), but by 2000, that
total had climbed to 30.9 percent, Case reported.
The way consumers approach nutrition and dieting has
evolved over the past four decades, Case explained. In the 1960s and 1970s,
the focus was on reducing sugar consumption. In the 1980s, the emphasis was
on reduced-calorie products, followed by low- and no-fat in the 1990s. Now carbohydrates have
assumed the status of No. 1 nutritional no-no, thanks to popular diet
regimens such as Atkins and South Beach.
Case outlined the following opportunities and risks associated
with bringing low-carb candy products to market.
Opportunities:
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The market is large — two-thirds of American adults are overweight or obese
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Consumer interest is high. Ten million Americans already are committed to low-carb diets.
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Retailers are moving to address the opportunity. 7-Eleven, the nation's largest convenience-store chain, stocks 50 SKUs in its new "Better Choices, Better Year" section.
Risks
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Even one product that fails to meet consumers' taste expectations may scare them off from the category.
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Carbohydrate labeling terminology confuses consumers. Among the many terms currently in use are low-carb, net carbs, zero carbs, sugar carbs, and impact carbs.
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Consumers like the way that sugar and fat tastes, which means that convincing them to make long-term diet and lifestyle changes is always challenging.
Legislation explained
Rep. Ric Keller, R. -Fla., brought conference attendees up to
date on his proposed legislation, "The Personal Responsibility in Food Consumption
Act." The bill, which was passed in the House of Representatives earlier this
month, discourages frivolous lawsuits that attempt to make food companies liable
for an individual's obesity or obesity-related illnesses. The American public
supports such a stance, Keller said, citing a Gallup Poll, which found that
nine out of 10 Americans are opposed to holding food companies responsible for
our national obesity problems.
"We have got to get back to the old-fashioned
values of common sense and personal responsibility," Keller
emphasized. "We need common sense in the food court and not legal
action in the courts."
Kids spend too much time watching television (1,023
hours annually on average) and too little time in physical activity, Keller
said, calling for public schools to increase their commitment to physical
education.
Conference speaker Michael Mudd cautioned that while
the public currently is not laying the blame for the nation's
expanding girth on food companies, that situation may change in the years
ahead — and the industry needs to be prepared for that eventuality.
"I don't think it would be prudent to
assume that public attitudes will be quite as benign as they are
today," said Mudd, who is executive vice president, global corporate
affairs, for Kraft Foods.
Added sugars in product formulations will come under
close scrutiny, he predicted, noting that the World Health Organization is
proposing a recommendation that added sugars account for no more than 10
percent of an individual's daily caloric intake.
Mudd said Kraft is moving to address the obesity issue
in a variety of ways. The company already has announced plans to adjust
pack sizes to reflect more moderate portions on some of its products. In
addition, product formulations are being adjusted — not dramatically,
but slightly wherever possible, to make them more healthful without
compromising taste. Kraft also plans to introduce more easily recloseable
packaging in order to allow consumers to limit consumption.
Such approaches reflect Kraft's Nutrition
Policy, which encourages consumers to make small dietary and lifestyle
changes to improve their health. The policy further recommends balanced
portions and an active lifestyle.
By Mudd's calculation, four key factors will affect how consumers
view food companies. They include the following:
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The nutrition of its products;
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Its marketing practices;
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Consumer information;
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Advocacy and Outreach programs.
Finally, Mudd pointed out that the current environment affords
opportunities as well as challenges for food makers.
"We see a world of opportunity in all of
this," said Mudd, noting that the category of wellness foods is
showing eight to 10 percent annual growth — significantly higher than
overall food category growth. Wellness foods can be subdivided into foods
geared toward weight management, nutrient delivery and performance
enhancement as well as natural and organic foods — and all represent
areas of growth.
Service, Achievement Awards Presented
NCA presented two major awards at the conference.
Jim Myerson, vice chairman of Ben Myerson Candy Co., was the
recipient of the Distinguished Service Award.
NCA chairman from 1996 to 1998, Myerson also served on
the Board of Trustees for several years. A strong supporter of the All
Candy Expo, he was chairman during the first Expo in 1997.
Al Allured, publisher and editor-in-chief of MC – The Manufacturing Confectioner, received the Lifetime Achievement Award. A veteran of 54 years
in the candy industry, Allured is widely known and respected for his
dedication. n
Harmony Foods, Golden Stream Join Foces
General line candy manufacturer and marketer Harmony
Foods has been acquired by Golden Stream Quality Foods, a 20-year player in
the business of producing candies, snack and trail mixes, roasted nuts and
dried fruits. Here Harmony Foods President and CEO Jim Hanlon (left) and
George Pappas, CEO of Golden Stream Quality Foods, shake hands in
celebration of their new cooperative venture. Golden Stream will continue
to manufacture products in both its Fishers, Ind., facility as well as in
the Harmony Foods plant in Santa Cruz, Calif.
New Stops on the Information Highway
Madelaine Chocolate Novelties, Rockaway Beach, N.Y., has re-designed
its Web site to provide detailed information for retailers, brokers, distributors,
and consumers. The Web site features Madelaine's complete line of everyday,
holiday and special occasion foil-wrapped molded chocolates, as well as a host
of new offerings. It can be found at www.madelainechocolates.com.
Ford Gum, a leading U.S. manufacturer of retail candy
and gift products, private-label gum and mints, and bulk vending
confectionery and toys, with offices in Akron, N.Y., and Lincolnshire,
Ill., has a new Web site. Check it out at www.fordgum.com.