1. MAKING CENTS ON SCENTS
The word "aromatherapy" may bring to mind the image of small glass bottles filled with essential oils, stocked in a health foods store. That's old thinking. Today, supermarkets are facilitating Americans' search for new ways to de-stress with a new generation of battery-run and plug-in air fresheners. Now, they are available in a growing number of supermarkets. Manufacturers of aerosol air fresheners -- Glade, Air Wick, Dial Corp. and others -- have helped make calming scents more accessible by developing improved delivery systems.
"This was a niche market," said Steve Bronson, president of Air Delights, Beaverton, Ore. "We've been in business since 1989. When we started, we focused on business and apartment buildings. It's more mainstream now."
According to Euromonitor International, Chicago, sales of electric air fresheners grew by 135%, from $238 million in 1997 to $559 million in 2002. Sales are expected to pass $626 million by 2007.
Air Delights offers three types of battery-operated air fresheners, with up to 24 fragrances. Air Wick has introduced its own version, Mobil'Air, which also runs on batteries and can diffuse 24 fragrances: Country Berry and Relaxation Lavender & Chamomile are the best sellers.
"They are portable, which gives people a little more latitude," said Andy O'Hearn, manager of communications and public relations for Parsippany, N.J.-based Reckitt Benckiser, the makers of the device. People like them "because of the convenience and because the 'gadget' aspect is appealing."
One component of the trend that supermarkets should note is that air fresheners tend to be impulse buys. Displays should be prominently placed during peak times of the year, such as holidays. "People like the idea of giving their home a signature scent," O'Hearn pointed out.
At Air Delights, the top-selling scents are Linen Fresh and Mountain Spa, which is "very clean, very mild," Bronson said. "Cinnamon and vanilla are also extremely popular, especially around Christmas and in the winter." The number of fragrances is growing, said O'Hearn at Air Wick. "Customers are becoming more sophisticated, and the market is evolving. So the tendency is that people want more specific things for certain situations, certain moods."
-- Amanda Chater
2. ALL SHOOK UP
Sodium has always been a pillar of the ingredient world. It plays a crucial role in the preservation of foods. It is also essential in adding taste and texture. Take out sodium, manufacturers say, and you take away the fun of eating.
Nevertheless, sodium has gotten caught up in the tide of concern washing over many components used in processed foods. Consumers for Science in the Public Interest went so far as to file a second lawsuit against the Food and Drug Administration seeking to have the seasoning declared a food additive -- and therefore open it up to much closer scrutiny and oversight.
The public interest organization first sued FDA over salt in 1983. Currently, the preservative holds the status of "Generally Recognized as Safe," meaning it is not closely regulated.
To bolster its claims, CSPI issued a report earlier this year that concluded approximately 150,000 Americans die prematurely annually due to conditions linked to high blood pressure and, by extension, overconsumption of sodium.
The daily recommended allowance for sodium is 2,300 milligrams. In the year 2000, the average daily intake of Americans was 3,300 milligrams, CSPI charged.
Grocery Manufacturers of America noted that companies are looking for ways to reduce sodium without hurting the product's appeal. To date, there exists no adequate alternative to sodium. Like sugar, one obstacle in finding a suitable replacement agent is that sodium has a specific receptor on the tongue, and science has not been able to come up with anything that fools the taste buds.
Until more concrete parameters are issued, consumers are urged to follow the 2005 Dietary Guidelines for Americans: Healthy people should consume less than 2,300 milligrams of sodium -- about one teaspoon -- per day, while individuals with hypertension, African Americans, and middle-aged and older adults should limit their intake to no more than 1,500 milligrams of sodium per day.
-- Amy Sung
3. NATURAL ORDER
The times have finally caught up with Restaurant Nora. The Washington institution has been steadfastly serving organics since it opened in 1979. Today, roughly 95% of the eatery's menu is certified organic.
It would appear the restaurant's owners were ahead of their time, but they are no longer alone. The National Restaurant Association said organic and natural products are taking up more room on restaurant menus. Reportedly, more than half of fine dining and one quarter of casual and family-dining establishments offer at least one organic item. NRA's 2005 Restaurant Industry Forecast said 46% of family-dining restaurant operators, 39% of casual-dining operators, and 48% of fine-dining operators report more orders for organic items today than two years ago.
Restaurants across the country are seeing and responding to the demand, and in turn are receiving positive reaction from the public. Seattle's Portage Bay Cafe has been in business for nearly eight years, and started offering organic items on its menu just over three years ago. Since then, business has tripled, according to John Gunnar, manager. The salads and the eggs -- all 100% organic -- are the most popular.
Deanna Gorgei, organic buyer for Restaurant Nora, predicted more consumers will bring their organic restaurant experiences into supermarkets as the trend grows.
"I think it already has [started]," she said.
-- Amy Sung
4. CALIFORNIA STEAMIN'
San Francisco's proposal to begin charging 17 cents for plastic or paper bags won't likely survive in its present form, with food retailers arguing the plan unfairly targets stores netting $2 million or more in sales. However, it has gotten retailers thinking about their own bag policies. In some cases, it might be worth tweaking them a bit to conform with emerging health and wellness trends.
Indeed, a lifestyle devoted to health and wellness encompasses much more than food. It can include transportation alternatives, clothing choices and, yes, shopping bags.
A retailer's environmental policies hold the potential to reinforce a positive image of concern, and appeal to like-minded consumers who are often fiercely loyal. Cloth bags in particular provide operators with a permanent advertisement for their stores -- provided they put their name on them.
Actually, a number of green-minded retailers offer cloth shopping bags for purchase, or offer cents off at checkout for shoppers who re-use plastic or paper bags. In the San Francisco Bay area, Mollie Stone's does both. The eight-store independent sells canvas and burlap bags, and has long deducted a nickel from the subtotal for every plastic or paper bag a customer reuses. Owner David Bennett said it's not necessarily a popular program, but it does please those customers who are diehard recyclers.
"I think people who do it, do it, and people who don't, don't," he said.
According to Gloria Chan, spokeswoman for the San Francisco Department of the Environment, income from the bag fees would be evenly split between the city and the affected retailers, and used for educational purposes. Supermarkets could also use the money to help offset the cost of buying environmentally friendly bags made of cloth or even biodegradable plastic.
"The whole purpose of this is to really encourage people to look at what they buy, and how they spend," she said. "It encourages people to use cloth bags or reuse their old bags."
Dave Heylen, communications director for the California Grocers Association, called the plan vague. He wondered why supermarkets should be held accountable for a plan to change consumer behavior.
"We're not really sure what our exact responsibilities might be," he said. "But we think it's a burden on consumers."
Bennett said two of his Mollie Stone's stores would be impacted by the bag tax -- one more burden on retailers in the Golden State, where extremes can be the norm. Retailers already have to accommodate California redemption, the state's version of a bottle law, whereby retailers pay the fee off their invoice when they buy product, then collect it from the customer. Or, the implementation of convenient zones, where one retailer per geographic district is selected by civic officials to host a recycling site on his or her property. Bennett's chain is responsible for three of those. However, at least these regulations affect everyone, whether they're a liquor store, a drug store or a small grocery store. The bag tax, because of its $2 million threshold, discriminates, said Bennett.
"All I'm looking for is a level playing field," he said.
The bag fee proposal has been approved by the Commission on the Environment, a body within the department that recommends legislation for a final vote by the city's Board of Supervisors. It is now undergoing a feasibility and impact study, and that process could take months.
-- Robert Vosburgh
5. THE GLYCEMIC INDEX
When people talk about their "lower GI" these days, they're most likely talking about the desired effect of carbohydrate-filled foods on their blood sugar levels.
Retailers take note: Certain food companies are beginning to include information about a product's position on the glycemic index, a system that measures the effects of food on blood sugar levels. In February 2004, Tesco became the first supermarket chain in the United Kingdom to modify its private labels to reflect GI numbers. Interest is now growing on this side of the Atlantic.
The GI movement has particular resonance within the low-carb industry, where low-GI DDDDDDfoods are seen as a more sensible way of reducing sugars and losing weight. Atkins Nutritionals, the originator of the low-carb movement, has regrouped after a tough year that saw consumer interest in the diet plan fade, and major consumer packaged goods companies pull ahead in sales.
Atkins' own marketing poll notes that only 10%-15% of consumers buying low carb are actually on a diet. The rest, a much larger group, are "carb conscious" consumers. They might include those simply interested in reducing sugar intake; others might be dealing with a health condition. Indeed, diabetics are well acquainted with the glycemic index, and have proven to be the largest, non-diet adopters of low-carb products.
Part of Atkins' new marketing plan is to introduce American consumers to the glycemic index, where each food product the company makes is assigned a "net Atkins count" based on the GI. The assigned value, already on a number of Atkins products, is designed to replace the old "net carb count" that caused confusion and was open to interpretation. Industry observers believe the Atkins seal could be grafted onto co-branded , qualifying products made by large CPG companies. Among those already working with the company are HP Hood dairies and CoolBrands International, the No. 3 ice cream maker in the nation.
The pressure is on for Atkins to move fast in differentiating itself. CPG brand extensions like Unilever's Carb Smart line have captured roughly 57% of the low-carb market, according to Information Resources Inc. To that end, the archrival South Beach Diet has strengthened its partnership with giant Kraft Foods. Just a few weeks ago, Kraft launched a new line of South Beach Diet-branded products, including wraps, pizzas, frozen entrees, cereal and meal replacement bars. The new line further builds on the choices from Kraft's existing brands already marketed as "South Beach Diet Recommended," such as Boca Burgers, Oscar Mayer Deli Meats, Crystal Light beverages and Planters assorted nuts.
Believe it or not, consumers are still looking for carb-sensitive options. According to the Food Marketing Institute's 2004 Shopping for Health survey, 39% of shoppers polled indicated they are seeking more low-carb solutions from manufacturers and retailers. Part of their search is diet-related, but -- with manufacturers eyeing the emerging interest in the GI -- look for low carb to move under a larger health umbrella. It might prove to be the right decision, since 54% of respondents in the FMI survey also said they are managing a current health problem.
-- Robert Vosburgh
6. CUCKOO FOR COCOA
It looks like Willy Wonka was right -- there is a golden ticket for chocolate, after all. Who would have thought it would be in the area of health?
However, the source for this information is no less than the Agricultural Research Service of the U.S. Department of Agriculture, which released a study showing that unsweetened cocoa powder contains the highest capacity of the antioxidant procyanidin, which is the dominant antioxidant in chocolate. In this case, the study found that the darker the chocolate, the more effective it is at lowering blood pressure and boosting the body's ability to metabolize sugar from food. In this sense, dark chocolate's benefits are similar to those found in red wine.
The study was partially funded by a grant from the American Cocoa Research Institute, and is yet another indication that all food products are looking for some sort of health and wellness angle for their go-to-market strategies. Retailers can be sure to expect boutique chocolate makers to begin touting the findings as they call for buying appointments.
The study determined that chocolate containing higher amounts of natural cocoa ingredients has higher procyanidin levels and, therefore, higher antioxidant capacity. Milk chocolate, which contains the least amount of cocoa solids, had the lowest TAC and procyanidin levels. In general terms, the more processed it was, the less likely it was to have antioxidants.
