From The August/Sepember 2003 Issue of Natural Grocery Buyer

Trendspotting

That's Italian?
Ask an expert about ethnic food, and he or she will focus on three areas: Asian, Latin and Italian. But how can this be, with 3 billion pizzas sold in the United States every year? (That's 46 slices a year for every man, woman and child, the National Association of Pizza Operators tells us.) Isn't a plate of spaghetti as American as apple pie?

"I would say no," says Paul Ferrari, owner of A.G. Ferrari Foods, an importer and retailer based in San Leandro, Calif. "Americans truly don't know what Italian food is."

A third-generation grocer who visits Italy every six weeks or so, Ferrari knows risotto from Rice-a-Roni. Authentic Italian food hails from 20 regions: Tallegio cheese from Lombardia, pasta farina from Puglia, olive oil from artisanal providers. The cuisine is simpler and quality ingredients are used with a lighter hand. You won't find mounds of red sauce atop your pasta or 11 ingredients on your pizza.

But Ferrari points to the resurrection of real coffee and sees progress. "Most Americans really want to learn what's good, what's authentic, what's real," he says. Our taste buds are changing and mainstream producers and retailers are bound to change too, Ferrari predicts. "Buyers need to trust their vendors," he advises, "and learn from them."

—L.E.

'Free' Foods Set to Soar

If it seems like suddenly there's a growing market for wheat-free, dairy-free, peanut-free or other allergen-free foods, you're right. The BBC reported recently that in the United Kingdom, sales of products free from allergens skyrocketed, growing 165 percent between 2000 and 2002.

While there's some suspicion that food allergies are merely the latest "designer disorder," they're really more than just hype. A recent study found that far more people than previously thought have celiac disease, a genetic intolerance to gluten. The study, conducted by researchers from numerous U.S. universities and published in the Feb. 10 Archives of Internal Medicine, found that in the overall population, one in 133 people had CD. The prevalence of the disorder in those at risk ranged from one in 22 people to one in 56 people. At-risk people were those who showed symptoms of CD such as diarrhea, abdominal pain or constipation; had a relative with CD; or had a condition often associated with CD, such as type 1 diabetes, anemia, Down syndrome or short stature. All told, about 2.2 million Americans have CD—roughly the same number who have Alzheimer's disease.

The number of children with peanut allergies escalated 300 percent between 1989 and 1996. Of more than 1,200 children tested for the problem at the David Hide Asthma and Allergy Research Center in Britain, 3.3 percent tested positive, compared to 1.1 percent just five years earlier.

Of course, people in pursuit of overall health benefits may also want to purchase foods made without allergens or other ingredients perceived to be detrimental, such as salt, fat or sugar.

No matter what's driving the trend, retailers would do well to stock products that address consumers' health concerns. The most common foods that provoke allergic responses are wheat, milk, eggs, soy, peanuts, tree nuts, fish and shellfish. Look to Enjoy Life Foods, Ener-G Foods, Food For Life and Pamela's Products for allergen-free foods.

—L.B.D.

Yogurt on the Rise in Dairy Category
New packaging and product formulations caused yogurt to grow in sales faster than any other dairy product in the last five years, according to Euromonitor, which attributes 13 percent of global dairy sales to the cultured concoction. While not abandoning the breakfast consumer, companies like Danone, Yoplait, Stonyfield Farm and Horizon Organic position their product as an all-day snack, adding convenience and kid appeal with drinkable and squeezable versions. Health markets have responded well to probiotic products, while "custard-style" offerings and flavors like Key Lime Pie suggest yogurt as a dessert.

—L.E.

New Supermarket Focus at Expo East
Looking for ways to build your organic and naturals program? Confused about the abundance of options in the $36 billion naturals marketplace? Grocery buyers will find it easier to "shop the show" for hundreds of new products and ideas at Natural Products Expo East Sept. 4-7 in Washington, D.C.

Expo East moves this year to a single-level show floor at the new Washington Convention Center. The category-specific layout is designed with your buying needs in mind.

Expo East will combine for the first time with BioFach America, the largest producer of organic trade shows in the world. Adding BioFach brings more than 200 companies from 10 countries, says Scott Silverman, organic program manager for New Hope Natural Media. "Mass merchants will have access to a greater depth and breadth of international and organic specialty foods."

Natural Grocery Buyer will co-host educational programs for supermarket retailers, including "Hot Trends in Personal Care Products," "Merchandising Strategies for Naturals in Supermarkets," "Pulse-Point Merchandising and Ways to Boost Retail Sales," and "Hot Organic and Natural Product Trends."

Expo East features that will interest supermarket buyers, owners and managers include:

• More than 600 products in the New Products Showcase
  
  
• More than 1,600 booths
  
  
• Taste of Expo food-tasting events
  
  
• Free admission for buyers and brokers
  
  
• A category-specific layout that lets buyers conveniently shop for food, personal care, natural living, health care and pet products.

For information and registration, visit www.expoeast.com or call 800.458.4935.

—L.E.

Water, Water Everywhere
The bottled water subcategory has sprung a leak in the coffers of beer, coffee and milk producers. In 2002, Americans drank an average of 21.2 gallons of bottled water each (up from 9.8 gallons a decade earlier). Milk consumption in 2002 was 22.6 gallons per capita, coffee was 22.1 gallons and beer was 21.8 gallons a person. If it continues at its current pace, bottled water will outsell carbonated soft drinks (54.2 gallons per capita in 2002) by 2019.

Enhanced waters, like Propel (by PepsiCo's Gatorade division) and Glaceau's VitaminWater and SmartWater, have exploded onto the market, attracting sports-minded consumers with promises of better performance because of the nutrients packed into the water. The marketing campaign has succeeded, as sales of enhanced waters have more than quadrupled in the last two years, according to PreparedFoods.com.

With bottled water poised to surpass sales of the entrenched soda industry, it should come as no surprise that the No. 1 selling water in the health food channel is going mainstream.

In May, Kroger announced it would begin carrying Penta water. Kroger, the No. 1 grocery chain in America, will sell the water in its KMA stores in Cincinnati and Indianapolis. Penta outsells its next-closest competitor in the health channel by 32 percent.

Penta water, which uses a patented purification system, claims to hydrate the body 14 percent faster than standard water because its smaller clusters of molecules are more readily absorbed, according to its parent company, Bio-Hydration Research Lab. That factor gives athletes a performance edge, says the San Diego company's Web site. Bio-Hydration also cites studies to support its claims that Penta extends cell-survival rates and improves cells' ability to fight off and repair free-radical damage.

—L.B.D.

Soy Goes Mainstream
Supermarket consultant Phil Lempert found that two-thirds of the visitors to his Web site, SupermarketGuru.com, make soy a regular part of their diets—and more than eight out of 10 buy their soy products in local supermarkets.

The Web site poll of 1,864 shoppers from 49 states reported that only 18 percent had never tried soy. The others used soymilk (31 percent); snacks (27 percent); tofu entrees (19 percent); raw tofu (16 percent); and breakfast cereals (8 percent).

—L.E.