Module 1 : INNOVATING NEW HEALTHY
FOODS FOR THE OBESITY CRISIS
OVERVIEW
Please note – this module is based on innovation themes (in the
main driven through consumer demands and global best practice).
We strongly advise that you check with your local Food Authority to
ensure that any new products that you develop are in full
compliance with national and EU laws and regulations.
OVERVIEW
This module will look at the challenge of obesity
in the EU and the opportunities that they represent for a
new commercial response.
Learners will expand their knowledge and gain new
tactical skills to understand the market opportunity
arising and develop an innovation plan for their business
to guide their development of new products with a
healthy focus.
OBESITY
Obesity rates have more than
doubled over the past 20 years in
most EU countries, with obesity
related illnesses estimated to
account for as much as 7% of total
healthcare costs in the EU.
Over 2.1 billion people or almost one third of the population
worldwide are estimated to be overweight or obese and
this figure is on course to rise to almost half the world’s
adult population by 2030.
THE CHALLENGE OF OBESITY IN THE EU
Obesity is a major public health problem in Europe, and is
described by the World Health Organisation as an ‘epidemic’.
Britain is spending
£47bn a year tackling
the implications of an
overweight population
Obesity is a bigger cost for Britain than war and terror as
Britain spends £47bn a year dealing with the healthcare and
social costs of an increasingly overweight population.
What are potential obesity interventions and how many lives
can they save ?
(source McKinsey Global Institute) ...
.
Opportunity
for food
producers
LET’S LOOK AT KEY CAUSES .....
The key causes of obesity are ...
Increased consumption of energy-dense foods high in
saturated fats and sugars, and reduced physical activity.
Our food environment is also a key determinant
The Harvard School of Public Health Food Environment has
conducted fascinating research into understanding how the food
environment influences our weight. Download their Research by
Setting Summary – which looks at risk factors in Families,
Workplaces, Schools, Neighbourhoods, Lack of Access to
Supermarkets, Greater Access to Convenience Stores and Fast
Food.
View The Forum at Harvard School of Public Health’s webcast,
“Why We Overeat: The Toxic Food Environment and Obesity.”
GOVERNMENTS ARE LOOKING AT A
LEGLISLATIVE RESPONSE .....
Fat tax is a controversial topic ....
It is an additional tax imposed on high-fat food products. While taxes on alcohol
and cigarettes have been commonplace for many years, taxes on specific unhealthy
foods and drinks aimed at combating obesity have only recently been introduced by
some EU countries.
Many nutrition experts say that taxation is a powerful tool that has been effective in
campaigns to reduce smoking and alcohol consumption. But many questions remain
about how to make it work.
In Finland, soft drinks have
been taxed since 1940, while
the tax on the production of
candy was introduced in 2011
and extended to ice cream.
However, the candy tax is due
to be scrapped at the end of
2017 as the European
Commission has found that the
tax is unfairly advantageous to
Finnish producers as imported
sweets also have to pay the
tax on top of import duties.
In France, a tax on all
beverages with added sugar or
with artificial sweeteners had
already been introduced in
2012. In October 2013, French
parliamentarians also voted for
a new tax on energy drinks,
such as Red Bull.
The new tax aims at promoting
health by limiting the
consumption of such drinks,
but does not affect ordinary
coffee.
In Hungary, since 2011 food considered to be unhealthy,
including crisps, soft drinks and chocolate bars, have been subject
to tax that is aimed at "improving the health of the nation".
Initially called 'the hamburger tax', the measure was dubbed
'crisps tax' or 'fat tax' after the Hungarian government decided that
it would not affect fast food restaurants.
Health and Wellbeing – Top Trends
Health and Wellbeing, THE TOP TRENDS
SOURCE BORD BIA IRELAND
Health and Wellbeing, THE TOP TRENDS
How can you interpret same to innovate your food
business ?
SOURCE BORD BIA IRELAND
KNOW WHAT MOTIVATES YOUR TARGET MARGET
FOCUS ON 4 TYPES OF HEALTHY EATERS –
MAKING IT HEALTHY – Where to start?
According to World Health Organisations – factors key to a
healthy diet are:
•Limiting intake of free sugars to less than 10% of total energy intake is part of a
healthy diet. A further reduction to less than 5% of total energy intake is suggested for
additional health benefits.
•Keeping salt intake to less than 5 g per day helps prevent hypertension and reduces
the risk of heart disease and stroke in the adult population.
•WHO Member States have agreed to reduce the global population’s intake of salt by
30% and halt the rise in diabetes and obesity in adults and adolescents as well as in
childhood overweight by 2025.
MAKING IT HEALTHY – Where to start?
1.
Reduce free sugars in your products
“Free” sugar is any sugar that is added to
foods by the manufacturer, plus that
naturally present in honey, syrups, and
fruit juices. It does not include sugar
naturally present in milk or whole fruit and
vegetables
2. Reduce salt levels
According to W.H.O. 5 million global deaths
could be prevented each year if people’s
salt consumption were reduced to the
recommended level of less than 5 g per
day
MAKING IT HEALTHY – Where to start?
3. Think about going Gluten Free
With recent increases in people being
diagnosed with celiac disease and gluten
sensitivity, the idea of a gluten-free diet
has been researched by physicians
across all sides of the nutritional
spectrum, including weight loss
specialists, bariatric physicians, and
dieticians.
It has been found that a gluten-free diet
can have a variety of health benefits,
such as improving cholesterol levels,
promoting digestive health, and
increasing energy levels.
CONSIDER A ‘FREE FROM’ APPROACH
Bord Bia – Irish esearch on “Free From” Foods 2010
See more on slide
44
Products purchased most often in ‘FREE FROM’ Category
MAKING IT HEALTHY?
According to Nielsen:
The world is facing a global health crisis—nearly 30% of
the global population was considered overweight or
obese in 2013—and consumers are attempting to take
charge of their health.
Nearly half (49%) of global respondents in Nielsen’s
recent Global Health & Wellness Survey consider
themselves overweight, and a similar percentage (50%)
is actively trying to lose weight. And they’re looking for
help from food and beverage manufacturers to make
healthier choices
MAKING IT HEALTHY?
According to Nielsen:
On the list of new products consumers can’t find in
stores but wish they could, healthy options are second
behind affordability in all regions but one (North
America) .
The Opportunity MAKING IT HEALTHY poses
According to Nielsen:
Nielsen’s Breakthrough Innovation research
findings
provides
examples
of
how
manufacturers can win by catering to
consumers’ need for quick, healthy options.
Sodebo identified an unmet need for active
consumers who want a healthy lunch without
compromising on quality and pleasure. It filled
this gap with Salade & Compagnie, a range of
healthy, gourmet salads that are both convenient
and tasty. The launch generated sales that
doubled Sodebo’s original estimates and played
a key role in the packaged-salad market’s 60%
growth
https://www.sodebo.com
/fr/produitsfrais/salades/saladecompagnie/1
The Opportunity MAKING IT HEALTHY poses
According to Nielsen:
In the U.S., Mondelēz capitalized on a
widely recognized need for nutritious,
convenient breakfast options by
offering something unique: a sustained
energy benefit.
The company’s Nabisco belVita
Breakfast Biscuits, which were adapted
for the U.S. market following success in
Europe, generated year-one sales in
excess of $70 million and achieved
more than 50% growth in year two.
www.belvitabreakfast.com
The Opportunity MAKING IT HEALTHY poses
According to Nielsen:
Healthy eating isn’t just an opportunity for new
products. Existing products and brands can also
capture market share and sales growth by
reinventing themselves as healthy, especially in
crowded, undifferentiated spaces.
For example, when Oberto, a family-owned beef
jerky company with a 95-year history, repositioned
their brand as all-natural and healthy, they were
able to attract consumers with an active lifestyle
who were concerned about their health. The
resulting repositioning helped Oberto increase
sales by double digits and gain share on larger
competitors with much larger advertising budgets.
www.oberto.com
www.oberto.com
A FOCUS ON SPECIFIC SEGEMENTS OF
‘HEALTHY’ EATING –
FUNCTIONAL FOODS
“If you understand your own life you are half way to successful
consumer marketing taking into
account health concerns and
problems, packaging, motivation
individuality, brand communications
and consumer segmentation.” Peter Wennström
Find out more and follow his blog >
http://www.thehmt.com/peterwennstrom
Peter Wennström, has earned his
reputation as an international
brand management consultant in
over 25 years working for clients
in functional foods, pharma &
dietary supplements. He is the
founder and President of The
Healthy Marketing Team and is
regarded as one of the world’s
leading experts in functional foods
marketing.
FUNCTIONAL FOODS
“A functional food may be described as
a food which provides a specific health
or performance benefit over and
above that expected from its normal
nutritional value”
Used to describe any food or food
ingredient that has a positive impact
on an individual’s health, physical
performance or state of mind in
addition to its basic nutritive value.
FUNCTIONAL FOODS
Rapid advances in science and
technology, increasing healthcare costs, However ....
changes in food laws affecting label and
product claims, an aging population, and
rising interest in attaining wellness
through diet are among the factors
fuelling consumer interest in functional
foods.
FUNCTIONAL FOODS
Internationally, the
functional food market has
experienced remarkable
growth and is one of the most dynamic sectors in the
food industry in terms of product development and
international expansion. While large food companies
can aggressively harness larger market shares,
SMEs are also successfully identifying untapped
opportunities and building up a market niche.
Consumers look at Food as ‘Medicine’
And as a way of increasing
performance
EXAMPLE
egg producers developing foods
with resulting health benefits
(e.g. Enhancing nutritional
properties eggs, Omega 3)
Consumers look at Food as Medicine
SELLING BENEFITS CLAIMS (but tread carefully,
claims MUST be substantiated )
• A Natural Product
• With a high GI rating
• Cholesterol reducing
• Low fat
• Low salt
• No added sugar
• Help concentration levels
SELLING BENEFITS
Even applies to primary products ....
SPOTLIGHT ON ‘THE FOOD DOCTOR’
Case study
http://www.thefooddoctor.com/COUSC
OUS-and-LENTIL-POT-with-tomatoesred-peppers-and-cumin-PPOTCNL/
HUNGARIAN CASE STUDY -
Fullgrass
http://fullgrass.hu/
Benefits of Wheatgrass Juice :
Wheatgrass juice is an effective healer because it contains all minerals
known to man, and vitamins A, B-complex, C, E, l and K. It is
extremely rich in protein, and contains 17 amino acids, the building blocks of
protein. It is also one of the best sources of living chlorophyll and contains up
to 70%. Chlorophyll is an important blood builder containing enzymes and
super- oxide dismutase, a copper-containing protein found in mature red
blood cells. This enzyme decomposes superoxide radicals in the body into a
more manageable form, thereby helping to slow down the aging process.
EXERCISE....
1)
Consider what functional foods innovations are
prevalent in your sector which meet consumer wants and
needs
2) Understand EU regulations relating to functional foods,
and understand what can and can not be said on the food
label
A FOCUS ON SPECIFIC SEGEMENTS OF
‘HEALTHY’ EATING
Reformulate existing products for lower sodium, sugar
and/or fat content
Case Study (Ireland)
Conor Murphy is the founder
of Gym Chef, a ready meal
brand based in Co. Meath,
Ireland.
The business was born out
of the intense frustration
experienced by Conor when
he tried to improve his own
health and fitness.
He found a ‘scary’ amount of
misinformation
about
‘healthy-food’ and the ready
meal sector had little to offer
in terms of healthy and
convenient food.
Case Study (Ireland)
Gym Chef was set up with a simple aim, to
make healthy eating easy. The business
places great emphasis on providing
information about nutrition to consumers.
The key messages are – Clean Food and All
Natural Clean Ingredients.
Conor launched the Gym Chef range in 2014 as a
pilot and built up a strong sales base through
Supervalu outlets and independent retailers. He
subcontracted the manufacture to his recipes and
strict protocol. In early 2015, Conor reassessed the
business and is assessing a new business model of
taking over production himself or looking for a new
manufacturing partner.
Case Study (Ireland)
FOCUS ON SPECIFIC SEGEMENTS OF ‘HEALTHY’
EATING - have you heard about Clean Labels
and Nutraceuticals?
WHAT IS A CLEAN LABEL ?
Basically, the term clean labels refers to the
wholesomeness of a food product, the
“naturalness” of its ingredients, and the absence of
unrecognizable chemical names or processes. In
other words, consumers want transparent
descriptions of what goes into the food they are
buying, and they want to make sure it’s all healthy.
Brands are now keen to offer recognizable,
authentic, unprocessed ingredients which appeal
to a mainstream audience. While shoppers are
now actively seeking authenticity from products in
grocery and health food stores.
HealthFocus International tell us that
74% of people say they wish they
could eat healthy foods more often
but are just too busy. Their studies
show shoppers consider words like
natural, organic, non-GMO, artisan,
grass-fed and locally-sourced as
quick indicators of better nutrition
choices.
Natural Drivers
“Clear Clues” are used as shortcuts by consumers to make choices.
They include like the lack of chemical ingredients on the label, where
they bought it, who manufactured and a host of other brand
attributes. 37% of shoppers think natural is an extremely or very
important brand attribute, compared to a similar 27% for organic.
FREE FROM – An example ...
When it comes to ‘Free From’ Brands, Kelkin is the principal
Irish brand.
This is their
EGG FREE
Mayonnaise
CASE STUDY - BFree Foods
BFree Foods has been offering
its range of award-winning
gluten and wheat-free bakery
products since its launch in
2011 and has now successfully
developed the world’s first
allergen-free fajita kit which has
seen the company make a
significant breakthrough in the
UK market.
https://bfreefoods.com/
CASE STUDY - BFree Foods
The idea for the new product came out of discussions with
the Coeliac Society of Ireland, according to BFree junior brand
manager Freya Ivory.
“They told us that there weren’t really any meal options that the
whole family could enjoy while not alienating the allergy sufferer.
They usually have to make one meal for the non-allergy suffering
members of the family and another meal for the one or two allergy
sufferers. That was what prompted us to look at the idea of a meal
kit.”
.
CASE STUDY - BFree Foods
It was an instant success with BFree’s existing customers,
including all the multiples in Ireland as well as Asda in the UK. It
has also led to a breakthrough with Tesco UK.
“Tesco UK saw the real innovation and the value that it would
bring their consumers. The kit is now available in more than 1,400
Tesco Express stores throughout the UK and sales from those
stores alone have boosted our turnover by €3.7 million.”
“Natural” stands for a lot of things that
shoppers find desirable. The
HealthFocus Consumer
Understanding of Natural study
released in 2013 reported even back
then a growth of “natural” as a health
indicator; it also predicted the growing
negative association with genetic
modification among consumers.
On labels, “non-GMO” was very important to more
consumers than any other phrases, including “100% natural
ingredients,” “no preservatives” or “no artificial flavors or
colors.”
These specifics are the clearest of clues to natural shoppers.
Shoppers respond to clarity more than they
respond to generalities. They are looking for
things that give them immediate clarity—a
Clear Clue.
It’s fine to say “contains natural
ingredients.” It’s better to say “100%
natural.”
As is often the case, there are as many exceptions as there are
rules. For instance, if a category is already considered “Better
For You,” like yogurt, natural takes a front seat in terms of
importance, whereas, if the category is energy drinks, natural as
an attribute can be somewhat less important. “into something
they could also feel better about.
CASE STUDY – MENTES (FREE)
Mentes are a gluten free, dairy
free, lactose free Hungarian
confectionery company.
Keen to produce only the
healthiest products, Mentes work
closely with a nutrition consultant
to create the best recipes and
find the highest quality
ingredients.
http://mentes.co.hu/
Their range includes cookies, cakes and
baked goods. They also specialise in
wedding cakes and fit cookies that are
rich in protein.
WHAT ARE NUTRACEUTICALS?
Nutraceutical, combining the words “nutrition” and
“pharmaceutical”, was coined in 1989 by Stephen L.
DeFelice, founder and chairman of the Foundation of
Innovation Medicine.
The term is applied to products that range from isolated
nutrients, dietary supplements and herbal products,
specific diets and processed foods such as cereals,
soups, and beverages.
Some of the key target areas for nutraceutical
ingredients are ...
What do consumers rate as desirable ...
Key Market Drivers (Europe)
Key Market Drivers (Europe)
The nutraceuticals product market in Europe is driven on the
basis of health claims
Key Market Restraints (Europe)
Key Market Restraints (Europe)
Currently, product launches in the EU have slowed
considerably due to the stricter EFSA guidelines and slow
approval process.
CASE STUDY: All Beauty Water
Skin Revitalization— from the Inside Out
‘All Beauty water delivers hydration
along with a healthful dose of nutrients.’
The product contains vitamins A, C, D,
B6, B12, biotin, selenium, green tea
extract, calcium and zinc.
Jeremy Kerstetter
The formula is said to contain eight
“skinvitamins” and seven “skinnutrients”
per serving. The zero-calorie, sugar-free concoction includes an
assortment of vitamins, minerals and antioxidants that were all
selected based on research showing their own positive effects on
skin. (See Module Attachments for full case study)
BE CAREFUL WITH MARKETING CLAIMS
Terms used in marketing terms by food companies to enhance the
consumers view of the nature of the food product – but in many cases
the use of such term is ‘misleading’
‘natural’ defined following Supreme Court case & legislation
& court cases for the use of terms such as ‘fresh’,
traditional’ & ‘mountain’
Food Standards Agency Guidelines establishing criteria for
the use of the terms ‘fresh’, ‘natural’, ‘pure’, ‘traditional’,
‘original’ authentic',' home made’, ‘farmhouse’
No specific legislation or guidelines as so many Italian
products have PDO/PGI status or national or regional
denomination of origin
CLAIMS - USE OF TERMS
‘artisan’, ‘farmhouse’, ‘natural’ etc
Artisan’ – it is a term that is popping-up on
all sorts of products everything from
Starbucks, Mc Donalds, to Domino’s
Artisan Pizza.
Datamonitor (UK) found that in the past 5
years an amazing 800 new food products
had emerged on the market bearing
artisan’ labels
CLAIMS – Ireland
FSAI in conjunction with Taste Council and other stakeholders have
drafted a
Code of Practice on the Use of Food Marketing Terms




Artisan/Artisanal
Farmhouse
Traditional
Natural
Great initiative – Ireland will be the only country in the EU to define the
term
‘artisan/artisanal’
3 WAYS TO INNOVATE IN BUSINESS
1) Incremental Innovation
Small, yet meaningful improvements in your products, process
and other ways in which you do business. These tend to be the
"new and improved" innovations we see every day: packaging
improvements, waste reductions, supply chain enhancements,
bigger/smaller sizing and cost reductions.
1) Incremental Innovation
These innovations can be easily understood by the consumer,
hence it is very important that not only a business innovates
but that it clearly tells the consumer about these improvements
– this is a valuable competitive advantage.
What three Incremental Innovations have you introduced
in the last 2 years ?
2)
Breakthrough Innovation.
This is a meaningful change in the way you do business that
gives consumers something demonstrably new (beyond "new
and improved"). Breakthrough innovation produces a
substantial competitive edge for a while, although the length of
time anyone can maintain such an advantage is growing
increasingly shorter.
Have you introduced a Breakthrough Innovation in the last
2 years ?
3)
Transformational Innovation.
This is usually (but not always) the introduction of a process change
or technology that transforms our product or the way we work. These
innovations tend to be very rare.
In most egg sector businesses, innovations do not just happen-they
are a team effort.
Most successful innovation occurs through formal research and
development for "breakthrough innovations" or less formal in house
modifications of practice- such as solving a problem or gradual
improvements.
Funding for Innovation – Ireland
Enterprise Ireland/Local Enterprise Offices
Can help eligible businesses to undertake R&D and increase
the amount of innovation in their business. Through a mix of
funding, advice and expertise, they can also help businesses
source and license new technologies that could potentially
transform your company.
Video link :- http://www.enterpriseireland.com/en/News/MediaLibrary/Innovation/
Weblink http://www.enterprise-ireland.com/en/ResearchInnovation/Companies/
Funding for Innovation – Ireland
Revenue Commissioners
Companies investing in R&D activities may also qualify for tax
credits under the R&D Tax Credit Scheme which is managed
by the Revenue Commissioners
Innovation Vouchers (open to all small (limited registered)
companies (less than 50 employees) in Ireland)
The Innovation Voucher initiative was developed to build links
between Ireland's public knowledge providers (i.e. higher
education institutes, public research bodies) and small
businesses. Innovation Vouchers worth €5,000 are available to
assist a company or companies to explore a business
opportunity or problem with a registered knowledge provider.