The emphasis is on action at this year's Healthy Foods International Exposition and Conference. From childhood obesity to rating product nutrition, each session focuses on issues of current importance to retailers, manufacturers and their allied trading partners. In this section, moderators and panel experts participating in the education program preview the topics they'll be talking about during their seminars.
If there's one theme that runs through all the sessions, it's commitment. When it comes to health and wellness, consumers are rewarding those operators who demonstrate their involvement in whole health, not only with product selection, but through information, services and support.
The New Way to Shop for Health
Wednesday, June 18, 8:30-9:30 a.m.
The Overall Nutritional Quality Index is one of several new information tools being offered to retailers interested in helping their customers make more healthful food-purchasing decisions. Within a year, ONQI — as it's known — will be in more than 5,000 stores. Topco Associates, the Skokie, Ill.-based supply cooperative, is marketing the information system on behalf of Yale University's Dr. David Katz, who developed the nutrition comparison tool.
“This thing is moving with greater momentum than we previously imagined,” said Jeff Posner, a Topco executive who's head of business development for ONQI.
Posner and Katz will take HFI attendees on a top-to-bottom tour of the ONQI program, issuing a “call to arms” to the food industry in the revitalized battle against poor eating choices and diet-related health conditions like diabetes.
“We can no longer close our eyes to the situation here in the United States,” Posner said.
The rollout of the program will begin in earnest around Labor Day. ONQI will be used in three lead markets, and a total of 500 to 1,000 stores. Posner notes this shake-down period will allow Katz and Topco to make final adjustments to the program.
“It's going to allow us to test the operational elements and help us refine our message,” he added. “These lead markets are going to help us stage the broader national launch, which will be in March.”
Kids' Nutrition: Balancing Profit & Responsibility
Wednesday, June 18, 9:45-10:45 a.m.
Sales of healthful foods and beverages for kids are growing faster than their young consumers, but merchandising these products is far from child's play. According to Janice Hamilton, president of New York City-based marketing firm JMH Education, parents are carefully reading labels and holding products to a higher standard than ever before.
“Moms are pretty savvy these days, there's no doubt about it,” she said.
Hamilton, who will serve on a panel along with Judith Dodd, dietitian for Giant Eagle, and Peter Fabricant of Wide-Eye Kids, a firm that promotes health through various media, has used education-based marketing to help numerous companies communicate their message. Recently, JMH worked with the Food and Drug Administration on a campaign to help educate expecting moms.
Because of her extensive work with kids and parents, Hamilton understands the importance of supporting products that are truly healthful — and not just trying to put a spin on products that aren't.
“It's really about looking at what your healthy brands are and then positioning those healthy brands in a way that can help the mom with nutrition, the kid with taste, and then really be aware of what the government wants, which is accountability,” she explained.
Winning Strategies in Global Retailing
Wednesday, July 18, 9:45-10:45 a.m.
With his company's bread products currently sold in six countries, Michael Girkout, president of Rohnert Park, Calif.-based Alvarado Street Bakery, knows something about the important role that global strategies play in building a successful business.
“Everybody's different, and every country is different,” he said. “What might be a popular, big-selling item here in the United States is not necessarily going to work in other countries. You have to adjust to the market, to the different cultures and buying patterns of those consumers.”
Girkout, appearing with Robert Verloop, vice president of global marketing for Naturipe Farms, and Bryan Roberts, global research director for PlanetRetail, said Alvarado Street Bakery has had to tweak product lines to make them more appealing to foreign consumers. Homes in Japan, for instance, have much smaller refrigerator/freezers, so the bakery had to create a smaller loaf that would fit into those appliances. In Europe, with its bread-eating culture, loaves are sold unsliced.
“It's almost a ceremonial thing, to sit at the table and slice the bread with your meal,” Girkout noted.
Luckily, globalization works both ways. Girkout said the company is testing paper-based packaging that's popular in Europe, to see if it resonates with American consumers. And those smaller loaves preferred by the Japanese have been adapted successfully to the U.S. market.
Ingredients That Matter
Wednesday, June 18, 9:45-10:45 a.m.
With sales expected to top $100 billion annually within the next few years, the functional food and beverage category seems hardly in need of an introduction. But according to Daniel Fabricant, vice president of scientific and regulatory affairs with the Natural Products Association, it's an opportunity that keeps reinventing itself. New ingredients can become popular just as quickly as others fade.
“We come to this crossroads as an industry every year, when we look at opportunities with ingredients, because what's hot this year may not be hot next year,” said Fabricant, who will be presenting along with Krystyna Kras, commercial development manager for ingredients giant Cargill, and Amy Barr of Marr Barr Communications.
Antioxidants and omega-3s are proving to be especially popular ingredients right now, going into everything from breakfast cereal to bottled water. How do consumers learn about these value-added ingredients? Retailers need to familiarize themselves with the popular healthful additions to products.
“If there's real science there, then that's something they need to understand and communicate to their customers,” said Fabricant.
As it turns out, retailers in particular can play a critical role in the sales process, since the informative materials they display with a product helps to interpret its benefits for consumers.
“You'll hear that something has a very high antioxidant value, and that may very well be true, but what does that mean in terms of providing nutritional health for consumers?” Fabricant asked.
Bigger Baskets, Better Consumers
Wednesday, June 18, 10:45-11:45 a.m.
Understanding the relationship between consumers and the amount they spend on health and wellness is the Holy Grail of whole health merchandising. Discover the key, and success is guaranteed.
Until the secret is uncovered, there are plenty of clues to help fill in the puzzle, and utilizing these pieces can reveal additional information that's helpful in capturing this species of shopper, according to Bill Capsalis, agency director of the Fresh Ideas Group.
“What I think it means is ‘better informed,’” he said when asked to define the connection between consumers and their purchases. “The smarter the consumer, the more money they'll spend on those products they're looking for, and the more questions they'll ask.”
Capsalis will moderate this session, and participate along with Bill Crawford of Nutrition Business Journal and Maryellen Molyneaux, president of the Natural Marketing Institute.
Retailers and manufacturers are not passive participants in the sale process. Capsalis believes they can elicit insightful purchase responses from consumers if they act in a transparent manner.
“Consumers are looking for more, not just regarding the source of products, but what went into making them,” he said. “I think there's a lot of sales potential for any company that can do the transparency dance well.”
Sales also can be enhanced by other attributes, like truthfulness, authenticity and accessibility, Capsalis added.
Building Authenticity & Credibility
Wednesday, June 18, 10:45-11:45 a.m.
Growing consumer awareness and involvement in health and wellness has put supermarkets in the spotlight, facing higher expectations. As much as this is an opportunity, it's also a challenge — particularly for the conventional retail segment, which doesn't have a long history of marketing whole health solutions. Shopper loyalty in this category is essential for success, according to Thom Blischok, president of consulting and innovation at Chicago-based Information Resources Inc.
“You have to do more than just put products in stores,” he said. “You have to tell the customer what you really stand for.”
Getting involved in the community, sourcing locally and establishing a nutritional rating system are all ways in which retailers can go the extra mile to make an authentic connection with their customers, explained Blischok, who will be presenting along with Chris Sherrell of Sunflower Farmers Markets. Knowing which strategies to adopt requires companies to have a finger on the pulse of their customers.
“One of the issues of authenticity is, who are my customer segments? How well do I know these segments? How are they changing, and how can I serve them better?” said Blischok. “It's all about the customer.”
Making Health Convenient
Wednesday, June 18, 10:45-11:45 a.m.
The typical consumer doesn't normally associate health with convenience. But the two can coexist, according to seminar panelists Jason Brown, chief executive of quick-serve chain Organic To Go; Dr. David A. Gentile, a board-certified physician specializing in healthful eating; and consultant Marcia Schurer, president of Chicago-based Culinary Connections.
Take pizza, for example.
“People might not think that's healthful. But if it's organic dough and organic cheese, and organic tomato sauce, those all provide a great deal of healthful ingredients for your body,” said Brown, whose 29 restaurants on the West Coast specialize in portable organic fare. “It's when you eat to excess that you have a problem.”
First, retailers need to determine how their particular consumers define “health.” It doesn't always mean low fat or low sodium, said Brown.
More important, supermarkets need to commit to wellness merchandising if they want to be successful at it.
“There's no way to ‘organic-wash,’” Brown continued. “You're either committed or you shouldn't be. Instead, put your energy into something else, whether it's gourmet foods or price impact, or whatever it is you want to excel at. Represent yourself honestly.”
Special Keynote Speaker — Samuel Fromartz
Wednesday, July 18, 5:30 p.m.
A veteran business journalist who spent more than 10 years at Reuters and whose work has appeared in Fortune, Newsweek, The New York Times and other publications, Samuel Fromartz is probably best known to the food industry for his 2006 book, “Organic, Inc.” In it, Fromartz details the rise of organic food and its impact as both a business and a cultural movement.
“I was curious about how it began and why it succeeded and why so many of the pioneers have had trouble with that growth,” writes Fromartz on his website, www.fromartz.com. “You could say the book's about what happens when ideals meet the marketplace.”
“Organic, Inc.” garnered positive reviews when it was published, and it has since gone on to join the pantheon of respected books detailing modern food culture. Because of his expertise, Fromartz is sought after for commentary on the organic movement by news outlets across the country.
He also posts regularly on his food-related blog, Chews Wise, which recently won an excellence award from healthful eating website foodfit.com.
In a recent post, Fromartz talked about his dedication to growing his own food. It was a decision, he wrote, inspired by what he learned while researching “Organic, Inc.”
“Before that project, I had absolutely no interest,” he wrote.
State of the Healthy Food Industry
Thursday, June 19, 9-10 a.m.
This exclusive, proprietary study, conducted by Avero Research for Nutrition Business Journal, seeks to expose the “disconnects” between wellness consumers, food retailers and manufacturers of whole health products. Unlike conventional categories, health and wellness presents the industry with multiple challenges, even as it evolves.
“The study will focus on lesser-known points,” said NBJ's Patrick Rea. “There's a lot of intelligence out there and a lot of consumer research, but with this study we're pulling out the data, with examples, and showing everyone there are finer points to this business than saying it's about the Baby Boomers and people in general wanting to get healthier.
For this report, Avero Research interviewed 1,500 individuals in two rounds of consumer research, as well as 190 retailers and 120 manufacturers.
Among the more surprising insights from the consumer portion of the study was the finding that the current economic climate is having less of an impact on wellness sales than expected.
“I expected to find that most people would be spending less on healthful foods,” said Sherwood Smith, president of Avero Research. “What we found were things that are subtly different.”
For example, the study found that maintaining health, preventing illness and fear of higher insurance premiums figured into consumers' decisions to continue buying whole health products and services — to a degree.
“People might no longer be willing to pay the price premium for organic, but they're still looking for whole, healthful foods,” said Smith. “And it's a pretty robust trend.”
Making Healthy Food Works
Thursday, June 19, 10:15-11:15 a.m.
Retailers and manufacturers have assumed new roles in selling health and wellness, and this, in turn, has created gaps that potentially threaten to dampen sales. Many of the splits can be traced back to the increased emphasis on education and transparency, rather than conventional marketing and promotion.
In the first morning session (see story, left), presenters Patrick Rea of Nutrition Business Journal and Sherwood Smith, of Avero Research, will point out that consumers are not withdrawing completely from health and wellness purchases. Opportunities remain in this questionable economic environment.
The breakout sessions following the morning overview seek to examine the gaps that are currently separating consumers, manufacturers and retailers. Are manufacturers developing partnerships in key whole health categories? Do retail strategies currently being used satisfy customer demand?
“There are alternatives out there now,” said Rea. “There's so much choice now. Consumers can shop for health anywhere they want.”
The market remains lively, despite the economy. Smith said the survey revealed that shoppers seem to be adjusting their behavior in shopping for wellness, but they're not discarding it.
“Though overall spending on food has decreased, spending on healthy food has increased,” he said. “Now, it's not massive growth, but something else is going on within this period of economic uncertainty.”
Much of the activity centers on maintaining good health, Smith added.
“Probably to a greater extent than ever before, people are managing their specific health conditions with the foods and the beverages they eat,” he said.
Among the untapped opportunities still available to manufacturers — and retailers, too — is developing products for chronic health conditions that have not been addressed.
“They can create long-term opportunities for the retailers and manufacturers who are able to deliver good alternatives,” said Rea.
The hour-long, concurrent sessions will focus on either retailers or manufacturers. Each session will include an in-depth look at the relationship between each party in several main categories, including health concerns, preferences and purchases, health conditions and organics.
Integration Strategies
Thursday, June 19, 11:15 a.m.-noon
As natural and organic products build mainstream momentum, many retailers are rethinking their decision to segregate these items from the rest of the herd. And that's a good thing, according Denis Ring, president of consulting firm Bode International in Lafayette, Calif. He said store-within-a-store formats don't fit with the normal flow of conventional shopping.
“When I'm in stores where these configurations exist, the vast majority of people I watch who come into the store don't go into the special health section,” said Ring, who will be presenting along with Jeff Hilton of Integrated Marketing Group and Rick Moller of Tree of Life. “It takes too much intellection, it takes too much attention and cognitive presence of mind to go into one of these sections if that's not already part of your routine.”
By integrating health and wellness products into the same aisles as their conventional counterparts, supermarkets have started banking on the acceptance and popular appeal of these premium items. Bashas', Price Chopper, Wegmans and others are examples of retailers that are streamlining their offerings this way.
“Consumers are no longer caught off guard when they see organic soy milk next to regular soy milk, or organic apple juice next to regular apple juice,” said Ring.
Ring's advice: To make a smooth transition, retailers should shoot for lower margins while still shining the spotlight on natural and organic products.
“When you're doing the planogram, you want to have your organic products at eye level along with your other very desirable products,” he said.
Retail Food Safety: Responding to Recalls & Protecting Customer Trust
Thursday, June 19, 11:15 a.m.-noon
Considering last year's string of meat recalls and the spinach scare of 2006, shoppers have every right to question the safety of the food they eat. Gary Ades, president of G&L Consulting in Bentonville, Ark., feels the industry can do much to alleviate such worries by educating them.
“Consumers are extraordinarily concerned, but they're also getting numb because there are so many of these going on,” said Ades. “They're not sure who to believe and what to do.”
As the public face of the food industry, supermarkets can play an important role in cutting through this confusion. Ades, who will present along with John Spinks of the National Food Safety Institute, Sharon Beals of Smithfield Farms and Scott Silverman of Winn-Dixie, said this means communicating with shoppers in a clear and straightforward manner.
“You have to communicate the situation and mediate it from a caring standpoint to your customers,” said Ades.
At the same time, retailers need to make sure they have the right systems in place to prevent, identify and pull recalled products in their stores, he added. A key step is to identify and address high-risk areas, like produce, deli and prepared-food sections. It's also important to provide comprehensive food safety training for employees that doesn't just list protocol, but also tells why each measure is taken.
Getting ahead of the game can go a long way in the end, Ades explained.
“We're an extraordinarily litigious society, so you really have to do your due diligence up front to make sure you're minimizing risk,” he said.
