Mother May I?

Healthier Options Broaden the Children’s Food Category

Sales of foods and beverages designed for children aged 3 to 11—a group of 35.8 million in the United States—exceeded $15.1 billion in 2006, an 8.5-percent annual increase, according to a new report from market research firm Packaged Facts. Kids’ Foods and Beverages puts total growth of the segment at 39 percent between 2001 and 2006, with a projection of annual growth at 11.5 percent through 2011, taking the segment to $27 billion.

There is a confluence of factors influencing interest among U.S. parents in healthy and natural children’s foods. “There is a growing health consciousness among parents,” noted Cheryl Tallman with Fresh Baby. “Perhaps much of this interest is driven by the media coverage about the issues of childhood obesity. It could also be the ‘greening’ of Hollywood and the celebrity baby boom influencing mainstream America.”

Likely the biggest factor is the dramatic increase in childhood overweight and obesity. The American Obesity Association (AOA) notes that approximately 30 percent of children aged 6 to 19 are overweight with a body mass index (BMI) at or above the 85th percentile, with half of those children qualifying as obese with a BMI at or above the 95th percentile. And the prevalence of obesity has quadrupled over the past 25 years, according to the Centers for Disease Control and Prevention (CDC) (JAMA, 288:1728-32, 2002).

“This rise of obesity in children is one of America’s most dire health crises and is fueled by the consumption of processed foods that do not nutritionally serve the body, though they are high in calories,” said Shazi Visram with HAPPYBABY. “Parents are starting to demand better options for their children, and parents of infants, in particular, are becoming more aware that these eating habits and the predilection toward processed foods form early in life.”

This rise in overweight and obesity has been linked with the growing incidence of degenerative health conditions, including Type 2 diabetes—formerly called adult-onset diabetes—which is 12.6 times more likely in obese children than non-obese kids; hypertension, which is nine times more likely to manifest as persistently elevated blood pressure in obese children; and orthopedic issues, such as bowing or overgrowth of leg bones or pain in the hips. Furthermore, overweight children appear to face increased risk of morbidity and mortality in later life.

“There is so much news about child obesity that ‘conscious’ product manufacturers are making a commitment to healthy products for kids, and retailers are responding,” said Roberta Greenspan from Maddies Beverage Co., makers of Wateroos beverages. “Parents are demanding healthier beverage options, for example, as more research shows links between sugary beverages and a host of health issues such as obesity, diabetes and tooth decay.”

Coupled with these efforts to raise awareness of basic nutrition is the growing presence of natural and organic options in a wider range of distribution channels. With Wal-Mart and Target each launching extensive lines of organic private label options, organic has been a mainstay of the news media in 2006. While organics only account for 2.5 percent of the overall U.S. food market, sales of organic foods have risen about 15 to 20 percent annually. “It’s interesting,” noted Brett Schulman with Snikiddy Snacks, “that parents will often buy regular milk for themselves, but only organic for their children. I think they’re wanting to spend money on the best food for their children, rather than just on material things.”

Finally, there is concern over other health issues, such as trans fats, genetically modified (GM) ingredients and food allergies. “Consumers are being bombarded with negative articles about trans fats, hydrogenated oils, GMOs and more,” said Debbie Reynolds with Healthy Handfuls. “Thus, they’re turning to healthier alternatives.”

Interestingly, parents with children who suffer from food allergies are significantly more likely to limit intake of both allergy-related foods and general food categories that may be thought of as less healthy. “It has been hard to find products for the many children that have multiple food allergies,” said Jill Robbins with Gak’s Snacks. “I started making our products to provide treats for my son like everyone else got to eat, but with wholesome ingredients. I didn’t know until recently that all the things I’m doing are considered ‘hot’: organic, whole grain, allergy solutions, no cholesterol.”

Libby Moyer from College Farm Organic added, “We’ve been surprised by the number of consumers looking for products that are allergen-free. Parents are desperate to find snacks their kids can eat without getting sick or having behavioral problems.”

While all this bodes well for the natural products market, there remain roadblocks. Among the challenges facing marketers, according to Packaged Facts, is the need for constant innovation to cater to children’s desire for both variety and the “wow” factor, while balancing nutritional needs and convenience. “Children actively seek out new products when shopping and are very receptive to products that are new and intriguing,” the report stated. “New kids’ products that have the greatest success know how to crack the code of not only what kids want, but what parents will buy.”

Obviously, marketers are looking to balance the desires of children for great fun and innovation with parents’ desires for nutrition and convenience. Visram noted infancy and toddler years are critical for developing tastes and preferences for natural, fresh-tasting foods. “The idea is that feeding children fresh tasting foods allows them to develop a taste for natural flavors and fibers, so they will crave these things later on when they make their own decisions,” she said. “Ideally, we want our toddlers asking for carrot sticks over French fries.”

However, for the current crop of children who either have developed a taste for processed foods, or those who just want to “fit in” with the crowd, “cleaner”

options of mainstream products can fit the bill. “We’re aiming to provide healthier choices of the foods kids ask for using all natural, clean ingredients,” said Jeff Canner with Ian’s Natural Foods, which offers frozen products such as chicken nuggets and popcorn turkey corn dogs. “We’re working with our formulations to incorporate more whole grains and natural flavors, in response to consumer demand.”

One of the hottest trends in the children’s food arena is healthier snacks. “I think parents want their kids of any age to be able to enjoy treats, but don’t want them to eat ‘junk’,” Robbins said. “They want healthier options to feed their children.”

Kent Spaulding from Barbara’s Bakery noted providing options is important for parents. “An all natural choice can prevent a high intake of refined sugars, preservatives and unnecessary trans fats in children’s diets, while still giving them the great taste and variety they crave,” he said. “Introducing natural and organic products in earlier childhood can train the palate and will familiarize your child with healthier alternatives.”

At the Natural Products Expo East in Baltimore, children’s products were the hot trend on the show floor. Crisped rice bars, sandwich cookies, puffed snacks, lollipops and more were offering “healthier” options to mainstream snack products. “The entire cookie and cracker category exploded in 2006, with many options including organic,” observed Annie Bennett with My Family Farm. “Retailers want to supply their customers with healthier, better tasting choices plus more variety in all categories for children.”

“Parents are often short on time and want convenient, healthy foods for kids,” Schulman said. “Everybody snacks, so we are delivering solutions by developing products that may not be perfect but are a step in the right direction.”

One example is College Farm Organic’s Naturepops organic lollipops, which Moyer noted may not be a “nutritional powerhouse” but, “we view them for what they don’t contain—like no high-fructose corn syrup, no artificial colors or flavors. A child who is eating balanced meals and getting regular exercise should be able to have a lollipop.”

Of course, the question of what makes a balanced meal is also an issue. In fact, the U.S. Department of Agriculture’s (USDA) new My Pyramid encourages consumption of a wide range of foods and acknowledges the importance of snacking for children. Snacks play a huge part in a small child’s regime,” Reynolds echoed. “Children need to eat more often than just three meals a day. In fact, they tend to snack more than anything; thus, every bite counts. A snack needs to be just as healthy as a meal.”

Keri Glassman, R.D., is launching KeriBar for Kids, a snack designed for children on the go. “Snacking is so important for children because so often they do not eat when it is time to eat at a meal,” she noted. “Then they get hungry when they are out and about, and parents often make the mistake of giving more traditional snack foods that are loaded with chemicals or provide no nutrients. You have to think about meal-time food for snacks as much as possible and think natural, so the children’s snacks are providing nutrients without a lot of added junk.”

An interesting launch from CoreNaturals is taking advantage of a new ingredient, salba (also known as “chia”), an ancient plant food that is rich in fiber, protein and omega-3 essential fatty acids (EFAs). “Salba is nature’s most powerful whole food,” said Mark Gobuty with Source Salba, CoreNatural’s Canadian partner. “We’re offering super-nutritious products— these crisped rice snack bars and flat bread snacks—that can deliver 50 percent of a child’s omega-3 needs and all of their fiber. Also, salba has a low glycemic index, so you get more stable energy.”

In addition to developing healthier options, marketers of natural and organic children’s foods are getting the word out to the street through work with community and philanthropic organizations. Most companies note they donate product to charity functions, athletic events and more. Others are taking greater steps to make a difference by donating profits to outside organizations.

Nature’s Path, for example, has donated $560,000 to environmental organizations such as the Wildlife Trust, Dian Fossey Gorilla Fund and the Australian Koala Foundation through sales of its EnviroKidz™ cereals, snacks and toaster waffles. “We’re educating children about healthy body, healthy mind and healthy world,” said Maria Emmer-Aanes with Nature’s Path. “We place one percent of annual sales into our EnviroFund to donate to causes protecting the environment and species conservation.”

Other interesting philanthropic endeavors include HAPPYBABY’s work with Project Peanut Butter, a nonprofit that provides food to children in Malawi—one day’s food for each box of HAPPYBABY food sold; and My Family Farm, which donates net profits to Prevent Child Abuse America for its work to educate parents and caregivers about healthy, safe care.

Companies are also making educational grants and holding workshops to help further the goals of the organic movement. Country Choice Organic, for example, offers grants to organizations that are committed to sustainable agriculture and organic farming; one of this year’s recipients was a grassroots non-profit started and operated by people with learning disabilities that will have hands-on sessions to educate people about what “organic” really means.

Obviously, all the good intentions and new formulations don’t mean a thing if the products don’t move. Naturally, endcaps and displays spotlighting new products can take advantage of the growing interest in the healthy children’s food category. Moyer suggested retailers could take advantage of two hot trends by highlighting children’s products that are both natural/organic and allergen-free. “Retailers should think like a consumer and place items where the customer expects to find them,” she added. “Shoppers don’t have time to hunt for things, but they will buy something they never knew existed if they see it at the right place and time.”

What this means in practical terms is often integration rather than separation “Retailers should offer as much variety as possible and place these children’s products right next to their ‘unhealthier’ counterparts,” Reynolds said. “Consumers need to see that they have a choice, and a tasty one as well.”

This works in the baby foods area as well. “A separate section just means a tired new parent has to do more work to find options,” said Tallman, whose company offers instructions and tools to make fresh baby food at home. “Consider adding more shelf space and displaying all the baby products in one area.”

Many companies also offer product for tastings, whether active or passive, and provide promotional discounts to pass on to consumers. Along with tastings, provide educational literature to educate shoppers about the benefits of healthy children’s foods. “Parents always want to know exactly what to do and how best to do it,” Glassman said. “So offering literature and samples on how to substitute these foods is helpful. Also, offering new ways to help incorporate those foods into the home is helpful.”

Another method to grow tomorrow’s natural foods shoppers is to offer store tours. Wild Oats Markets, for example, has a national Be A Natural Shopper program that provides nutrition and natural product education lessons to elementary school teachers and brings those lessons to life through field trips to local stores. Wild Oats employees provide a 60- to 90-minute guided tour of the store, teaching children how to read nutritional labels and sampling healthy foods and beverages. Wild Oats also encourages parental interaction, suggesting, for example that parents try different culinary styles from around the world and take their children through the produce department to discover the wide array of healthy offerings.

Natural Lunchbox

School lunch programs and vending machines are drawing attention for how they can promote healthy eating among children—and natural products companies are responding.

One recent study found elementary school children welcomed healthier breakfast and lunch items—higher fiber, lower sugar, nutrient dense—when they were presented with created nutrition education. A similar program is found in Barbara’s Bakery’s “Teaching Garden” project that awards grants to teachers who establish organic gardens and a curriculum that uses the garden as holistic education. Kent Spalding with Barbara’s Bakery added, “Students enjoy organic salad bars in their cafeterias and learn how to create meals and cook with Barbara’s Bakery and other organic and natural products. Our efforts have been incredibly well-received by parents, students and teachers.”

Organic Valley recently launched “Lunch Lottery”, a national education campaign designed to build support for healthier lunch foods. “In a nation where childhood obesity, diabetes and other food-related illnesses are rampant, it is essential that we even the odds in the school lunch game of chance,” said Organic Valley’s Theresa Marquez.

Another innovative program is the Healthy Vending Machine Makeover, a program launched by Stonyfield Farms in 2004 in which schools feature vending machines stocked with organic and all-natural products from companies like Stonyfield, Newman’s Own Organics, Stacy’s and Organic Valley. “We found that kids will eat healthy, as long as it tastes good,” said Stonyfield’s Carmelle Druchniak. “We had kids drinking soy milk and eating organic string cheese, much to the amazement of their teachers and parents.”

Schools are able to download a product list at www.Stonyfield.com/menuforchange to make over their existing vending machines.

Share this article: Email, Slashdot, Digg, Del.icio.us, Yahoo!MyWeb, Windows Live Favorites, Furl
Add this article feed to: RSS, My Yahoo, Newsgator, Bloglines

Read Comments [0]