SPECIAL REPORT
Thanks in part to
consumer health
and wellness
trends, the natural
and organic
segments have
experienced
growth during the
past few years and
show no signs of
slowing, sources
tell Candy & Snack
TODAY.
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Candy& Snack TODAY
All-Natural,
Organic Segment
Benefits From
Health Trends
THE SECOND MOST POPULAR on-pack claim
globally, according to Mintel International
Group, Ltd., all-natural and organic items have
experienced exponential growth during the past
few years as a result of health and wellness
trends.
Nearly 90 percent of consumers are looking
to eat healthier in the coming years, according
to SymphonyIRI Group, Inc., which says the
combined natural and organic market has
experienced double-digit sales growth during
the past two years.
“The growth has been phenomenal,” says
Sandy Gencarelli, director of marketing and
export sales for Hillside Candy, LLC. “With
consumers’ continued awareness, more
products will become available as a result of the
high demand for healthier choices.”
Sam Shehayeb, president and CEO of
Flamous Brands, Inc., maker of all-natural and
organic falafel chips, says: “People are waking
up and saying, ‘Why don’t I take care of myself
and watch what I eat so I don’t develop issues
down the road?’ Consumers aren’t just looking
for a snack that tastes good or just something to
eat; they want a guarantee that the product isn’t
going to hurt them with trans fats, MSG and the
usual suspects that have proven not to be very
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good for you.”
Nature’s American Co.’s Kevin Hannan,
president, says staying the all-natural course for
its products is driven in part by the segment’s
growth, which he likewise attributes to health
and wellness trends.
A Segment Marked For Growth
It is projected that sales of natural and organic
products will increase more than 100 percent
between 2010 and 2015, exceeding $78 billion in
sales by the end of the estimated period,
according to market researcher Packaged Facts.
Suzanne Riddell, marketing assistant and
communications manager for SweetWorks, Inc.,
says: “It is not an exclusive market; people of all
sorts are attracted to products with all-natural
ingredients. Health conscious or not, consumers
can take solace in indulging in a real premium
chocolate product that is all-natural.”
Many suppliers agree growth will continue
well into the future across demographics, as
Maria Mouchati, president and CEO of Wonder
Food Co., Inc., explains: “With the aging Baby
Boomer generation, the maturing of Gen X and
the arrival of Gen Y into economic
independence, the demand for healthy choices
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SPECIAL REPORT
CONTINUED FROM PAGE 26
‘With the aging Baby
Boomer generation,
the maturing of Gen X
and the arrival of Gen
Y into economic
independence, the
demand for healthy
choices that taste
good and support
sustainable
agricultural practices
will only increase over
time.’
MARIA MOUCHATI
Wonder Food Co., Inc.
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that taste good and support sustainable
agricultural practices will only increase with
time.”
“Baby Boomers are trying to find the
fountain of youth,” Hannan says, adding
younger generations purchase all-natural and
organic products more frequently than Baby
Boomers. “This should result in stability in the
segment and will help growth as generations to
come have access to organic foods,” he
explains.
The typical consumer purchasing in the
segment tends to have higher education and
income levels, according to Bert Cohen,
president of TruSweets, LLC. However, he
explains parents are the primary target.
“The caring mom is a very valuable shopper
and one retailers should try and capture,”
Cohen says, echoing the sentiment of a number
of sources, explaining moms are still responsible
for a majority of household shopping decisions.
Targeting Moms, Families
SweetWorks’ Riddell says studies linking artificial
dyes and flavors to diseases and disorders are
raising a red flag for a majority of the
population.
“People are becoming more conscious of
the food that is being consumed by themselves
and their families, and all-natural and organic
foods are at the top of the list to avoid such
artificial and harmful substances,” Riddell says.
To this end, Piper Cochrane, owner of the
Organic Candy Factory, agrees, adding: “It’s
definitely a trend now among moms to educate
and feed their families better.” She says the
company promotes to this demographic
through magazines and sponsoring charity
events that focus on moms and children.
YummyEarth Inc. tries to reach parents
through pack graphics, as Rob Wunder,
company co-founder, explains: “If you look at
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our artwork and ingredients, they speak directly
to moms and dads. The images are familyfriendly and designed by a mom for a mom.”
He also says mom-focused blogs are an
important tool for driving brand awareness for
YummyEarth, noting the company finds this
type of marketing is more effective than
sampling.
“Mom-centric bloggers seek out
YummyEarth and are changing the segment by
shining a light on this corner of the industry and
bringing it to the mainstream,” Wunder says,
adding: “This is a mommy revolution.”
Taking an alternative view, Nature’s
American designs packs to catch kids’ eyes, as
children can hold the key to moms’ baskets. In
addition, packs highlight the nutritional value of
the products, according to Jason Samatas, CEO.
“Once kids see the packs, they are the ones
to take it to mom and say, ‘We want to buy
this,’” he says, adding: “The Nutrition Facts
summarize the values for sugar, fat, trans fat
and calories. This points out to consumers in
their busy rush to shop that this is a healthy
product besides just saying it’s all natural.”
Wonder Food’s Mouchati says offering
consumers easily accessible product information
is important in driving trial and ultimately repeat
sales, explaining: “Retailers who do this are
taking proactive measures both to aid their
customers in critical information gathering and
to show they’re unequivocally proud to offer the
quality products they do.”
She adds successful retailers train customer
service staff to accurately answer questions
about natural and organic products, helping
boost consumer confidence.
Sources agree a dedicated set for all-natural
and organic products is the best way to raise
awareness for the segment.
Grouping Items To Boost Sales
“Marketing natural candy is new to a lot of
retailers,” says Wunder. “They need to follow our
lead, listen to our advice and we will help them
every step of the way.”
SPECIAL REPORT
He says cross-category groupings of candy,
snacks and other packaged goods helps to make
a destination for shoppers looking for natural
and organic products. “If the retailer announces
that natural is here, they will retain shoppers
and sell in volume,” he adds.
YummyEarth works with retailers to develop
specific merchandising tools to maximize gains,
according to Wunder. This includes in-store
coupons, advertising, floor displays and
everyday low prices.
For example, he says Wegmans Food
Markets, Inc. successfully merchandises natural
and organic items through cross-category
endcaps, buying natural seasonal items and
placing the segment near the front of its stores.
“There is an education process, though,” he
says, explaining the company needs to
accommodate retailers’ requested programs
and explain how to fit YummyEarth products
into existing merchandising strategies.
Further, Wunder says while dedicated
natural and organic sets can be successful, they
take years of focus and promotion, while in-line
presentations can instantly announce expanded
offerings.
“Products of these types need to be
highlighted,” agrees TruSweets’ Cohen. “You
can’t just throw them in with other candy and
expect consumers to find them.”
To this end, he recommends retailers
establish a “set within a set.” Cohen explains this
grouping is important because natural and
organic brands aren’t as recognizable to
consumers as traditional lines.
To encourage trial, Flamous puts an
additional bag of its falafel chips without a UPC
code into every case and asks retailers to use it
for shopper sampling.
“Consumers don’t have to worry about how
the product will taste when they get home,”
Shehayeb explains. “The proof is in the pudding;
once they taste it they will come back to buy
more. Retailers that adopt these practices are
making inroads in the marketplace.”
Helping drive brand awareness and trial,
TruSweets offers shippers, spinning racks and
clip strips as well as customized passive
sampling demonstrations, according to Cohen.
Retailer-specific demonstration packs offered by
the company usually include coupons, literature
on the products and samples in either bulk or
individual packs to hand out, he explains.
“It is most effective when retailers draw
attention to natural products by placing them
together with signage,” says Deborah
Schimberg, founder and CEO of Glee Gum
supplier Verve, Inc. She adds signage is
important as most people expect to find candy
in front ends, and don’t think about going to a
natural set.
A number of sources agree the influx of allnatural and organic products is strengthening
the segment’s position at retail. According to
YummyEarth’s Wunder, the proliferation of
items has resulted in more shelf space, further
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PAC K S G O G R E E N
WHILE SOURCING NATURAL, organic and sustainable ingredients is paramount for
suppliers in the segment, a number of sources say their companies undertook
efforts to ensure that products also are attempting to lighten the potential
environmental impact. This includes using biodegradable and recycled materials.
For example, prior to exhibiting for the first time at the SWEETS & SNACKS EXPO
this year, the Organic Candy Factory switched to 100 percent biodegradable and
compostable bags. In addition, the company offers its products in organic cotton
bags, which have a drawstring and can be reused.
“People don’t realize that dyes and chemicals are not just bad for the body, but
also the environment, which is where they end up,” explained Piper Cochrane,
owner of the Organic Candy Factory, adding: “Consciously hurting the environment
didn’t sit well with me.”
Similar initiatives have been implemented by Hillside Candy, LLC, which uses
recyclable materials in both the outer bags and twist films for its line of hard
candies. “Our commitment to green business practices has led us to keep our
products locally made, using sustainable sourcing efforts,” says Sandy Gencarelli,
director of marketing and export.
Wonder Food Co., Inc. currently is in the process of redesigning its packs to
embrace sustainable materials, according to Maria Mouchati, president and CEO.
“We are careful in the sourcing of all our ingredients for both our food and the
packaging of our marketed products,” she explains. “We’ve had our eye toward
long-term environmental sustainability since our beginning.”
TruSweets, LLC has committed to environmentally friendly packaging, using
completely recycled materials and printing using soy- and vegetable-based inks,
according to company President Burt Cohen; however, he adds: “We would love for
our Surf Sweet items to have a biodegradable film, but unfortunately the options
out there don’t meet our standards.”
Nature’s American Co. has experienced similar roadblocks when searching for
green packaging, as Kevin Hannan, president, explains the company is trying to use
a paper-type pack with a lining, but has not found anything that offers the same
shelf life as its current packaging.
Because natural and organic products are largely free of preservatives, the ability
of some items to meet the shelf life thresholds of traditional products can be
difficult. However, modern technology is changing this with advanced refrigeration
systems, faster transportation and just-in-time ordering, according to Wonder’s
Mouchati.
Nature’s American also is embracing technology to extend its products’ shelf
life, according to Hannan, explaining that the company’s GoNola line of granola
achieves a 12-month shelf life, without using preservatives, through nitrogen
flushing.
Innovations are not just driving packaging developments, but also products, as
Sam Shehayeb, Flamous Brands, Inc. president and CEO, explains: “The world of
innovation never stops, so whether it’s Flamous or someone else, we’ll continue to
see innovation in product and packaging developments in this segment.” CST
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‘With consumers’
continued awareness,
more products will
become available
as a result of the high
demand for healthier
choices.’
SANDY GENCARELLI
Hillside Candy, LLC
helping to increase consumer awareness.
TruSweets’ Cohen agrees more products
entering the segment is a positive trend,
explaining it helps meet consumer demand, but
warns that there are downfalls to the growing
popularity of the segment: “At the same time,
there can be too many items and people
misrepresenting what they do.”
SweetWorks uses pack graphics to convey
the all-natural formulations used for six of its
chocolate Break-A-Part balls, according to
Riddell, who explains: “The packaging for these
items display attractive scenes of the flavors in a
natural setting.”
For example, the company’s pumpkin spice
Break-A-Part packs show pumpkin patches,
while the orange flavor’s packaging portrays an
orange grove.
Defining, Certifying The Segment
In order for a company to claim a product as
organic, it must first meet a number of
certification requirements as set by the USDA.
However, no certification currently exists in the
U.S. for products making the all-natural claim,
leading some companies to misrepresent their
items, sources tell Candy & Snack TODAY.
“Everyone is trying to jump in on the health
and wellness trend and manufacturers will use
any angle they can to capture that market,” says
Hannan, of Nature’s American. “The claims are
just flying off the shelf. At some point the
segment will have to come out with some clear
definitions.”
The Organic Candy Factory’s Cochrane
agrees: “It’s amazing what some companies get
away with. All-natural is a dangerous thing to
say; there are 100 ways around it. The public
reads ‘all-natural’ and people automatically
think it’s good for them.”
She went on to explain that to have the
company’s items certified as organic, a thirdparty organization had to audit both the
finished products and the manufacturing facility,
adding the costs associated with these
certifications have driven some smaller suppliers
to leave the claim off their packaging.
Cara Welch Ph.D., senior vice-president of
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scientific and regulatory affairs for the Natural
Products Assoc. (NPA), says that unlike organic
certification, which is set by the USDA, any
future natural designation would come from the
FDA. She explains this is because the natural
designation would not be classified as an
agricultural initiative.
“The USDA organics program looks at how
ingredients are grown and cared for,” she says,
adding that the FDA would have to set
guidelines for each individual product category
to establish a natural label.
Welch notes that if the FDA were to accept
standards for natural claims, they would likely
come from an outside source such as the NPA.
“I don’t know if it would accept the
standards as is,” she says. “If the FDA were given
an initial set of standards accepted by the
industry, that would give it a good head start in
developing its own guidelines.”
The NPA is currently in the early stages of
setting guidelines for snack products, and is
working with manufacturers and suppliers to
develop an ingredient-focused standard with a
strong science base, Welch notes.
She says that consumers are looking for a
definition for natural foods, but until the FDA
develops a standard, shoppers will have to
depend on third-party auditors and certification.
“Third-party certification is becoming more
important in the same way the USDA standards
are important for organic products,” says
Schimberg, of Verve. “The kinds of questions
people are asking about supply chain issues lend
themselves to third-party certification,” she
adds, explaining consumers are looking for
someone to have done the work for them to
ensure the product claims are truthful.
For Flamous, certification is one main way to
communicate with consumers, according to
Shehayeb. The company’s falafel chips have
been certified as organic, kosher, halal, glutenand GMO-free, from a number of third-party
organizations. Packs bear the third-party logos
and Shehayeb explains that while the product is
by nature gluten-free, it was significant to clearly
state this for consumers.
“It’s important for consumers to check those
third-party certifications,” Shehayeb adds. CST