Cereals and health bars

Prepared Foods, March, 2004

* Convenience strong, with a focus toward health

* Health and wellness claims increase

* Alternative breakfast items steal market share

* Energy claims for the non-athletic

For several years now, the editorial team at Mintel International (Chicago), proprietor of the Global New Products Database (GNPD), has observed breakfast cereals losing, market share to more convenient, on-the-go cereal bars and nutrition bars. Why should consumers eat breakfast at home when they can just drop a bar in their bag and have it when they please?

In the U.S., there are more and more products that focus on health and wellness. And that trend is borne out in other parts of the world as well.

Health and Wellness

In this broad category, the number of products that bear some sort of claim concerning health and wellness continues to grow. In breakfast cereals, the trend has gone beyond simply listing vitamin and mineral fortification to including claims concerning lowering cholesterol, reducing heart disease (claims approved by the FDA) and, sometimes, even fighting free radicals and removing toxins. For example, Kellogg's (Battle Creek, Mich.) not only has fortified its Complete Oat Bran flakes with 11 vitamins and minerals, but claims that that fortification helps support the immune and digestive systems.

The popular organic trend also has made its impact on the cold breakfast cereal market. Again, smaller companies have driven the sector, with few introductions from mainstream players. Kellogg's, however, has interests in the organic cereals market via its Kashi subsidiary in North America. Many of the organic products include those for children, including EnviroKidz Organic Cheetah Chomps Cereal from Nature's Path Foods (Blaine, Wash.) and private label organic cereals from Whole Foods (Plano, Texas).

To market hot cereals as even healthier than they naturally already are, manufacturers are using low-fat, fortified (vitamin and mineral) and all-natural claims. U.S. product lines, such as Nutrition for Women from Quaker (Chicago), take fortification a step further by targeting a specific audience. The instant oatmeal line is fortified with high levels of calcium and folic acid.

There are limited functional health claims within the snack bars segment, leaving room for expansion and continued development. Many functional claims focus on aiding digestion (probiotics), lowering cholesterol (often with the use of soy) and improving heart health. In addition, a few varieties offer unique benefits such as memory enhancement or immune system support. Health from the Sun (Sunapee, N.H.), for example, launched the Omega-3 Flax Snax All-Natural Snack Bars for "busy health-conscious people who want to add flax to their diet." Legacy For Life (Melbourne, Fla.) launched a Wellness Bar under the Immune 26 label, described as "a healthy snack alternative for people on the go."

In North America, dietary practices shifted considerably in response to the enormous media attention surrounding low-carbohydrate, high-protein diets. In response, many producers developed snack bars with reduced carbohydrate content, including EAS, (Golden, Colo.) with the introduction of the AdvantEdge Carb Control Nutrition Bar. This has 26g of protein and only 3g of impact carbs (non-impact carbohydrates such as glycerin, fiber, maltitol and sugar alcohol have little to no effect on blood sugar levels). Peak Performance Foods (Bowling Green, Ky.) launched its Pro Bites, touted as a delicious, nutritious, low-carb, low-fat, soy protein source that serves as a snack, supplement or meal replacement. Interestingly, the line offers selections commonly encountered in the salty snacks category such Ranch, Sour Cream and Onion, Bar-B-Que and Nacho Cheese.

Many energy and sports bars claim to promote recovery by replenishing lost vitamins and minerals after strenuous activity. Additionally, products are formulated to maximize athletic prowess during sporting events, providing the necessary nutrients to improve endurance and increase energy levels. MET-Rx (Irvine, Calif.) repackaged its line of Protein Plus High Protein Bars to allow consumers to easily identify the four segments: Muscle Strength, Weight Loss, Endurance and Fitness. Included in the launch were Chocolate Chip, Chocolate Roasted Peanut and Chocolate Fudge varieties. Life Time Fitness (Eden Prairie, Minn.) introduced its Fast Fuel Chocolate Crunch Energy Bar, made with an increased energy formula to maximize energy, stamina, and muscle recovery. It has a blend packed with 12g of protein and balanced nutrients to control appetite.

We continue to see plenty of bars with energy-related claims, but without any direct association to sports. These are sometimes positioned as giving a quick boost or burst of "power," or even being a replacement for meals. They often are fortified with vitamins, minerals and protein, and are formulated with high-energy ingredients such as nuts and chocolate. Although the category is growing slowly, there now are product lines formulated with high-energy ingredients often found in energy drinks (such as guarana and taurine). Perhaps one of the most important of these types of products is from Masterfoods USA (Hackettstown, N.J.). It leveraged its Snickers name to offer Snickers Marathon, a 2oz. energy bar with 16 vitamins and minerals and 10g of a "special protein blend" that builds on the brand recognition of Snickers, a popular chocolate bar. The launch marks the confectionery giant's first entrance into the energy bar segment.