New recipe for food marketing makes for “healthy” profits
Wednesday, March 5th, 2008Food companies have long suffered from public backlash regarding their marketing efforts. They have been continually (and rightfully) criticized for the way sugary snack and fast foods are marketed to children and adults alike. It seems, however, with our national discussion about health and wellness heating up, that food marketers are listening and responding to complaints. More and more companies have reformulated and repackaged familiar products to make them healthy, and the strategy seems to be paying off.
Health claims made on food labels must be authorized by the Food and Drug Administration. This is a consequence of the 1990 Nutrition Labeling and Education Act (NLEA), which was aimed at stopping food marketers from making unfounded claims about the benefits of certain foods. Any marketing material or label that makes health claims must now be validated by scientific evidence from a federal scientific body (i.e. CDC, USDA, etc.). For example, a company claiming that their yogurt can help build stronger bones must cite legitimate scientific evidence connecting calcium and bone strength.
In spite of strict regulations, food companies have responded to the consumer’s interest in healthy foods. A recent Wall Street Journal article profiles the reformulation and marketing efforts of General Mills. Beginning in 2004, the company set a goal to have 20% of sales come from healthy product lines. After succeeding beyond expectations, General Mills added another 20% to the goal, and many of their top executives receive incentives based on how well they meet health and wellness objectives. Their strategy was to reformulate products to match up with consumer’s expectations of healthy foods. “A product could meet the new health standard in a number of ways: a 10% reduction in fat, sugar, or sodium content; a 10% increase in healthful ingredients, including vitamins and fiber; or by meeting FDA guidelines that allow a product to carry labels such as ‘reduced sodium’ or ‘low fat’.”
It seems clear that these measures are not only helping average consumers make informed food choices, but also paying off for the companies which have marketed to the growing group of health-conscious shoppers. General Mills brought in an impressive $12.4 billion in fiscal year 2006, and they recent upped their profit forecast for this year, giving their healthy product lines the credit for increasing sales.
They aren’t the only food company attempting to cash in on this trend, however. Kellogg and Kraft have recently stopped using trans fats in their products, and Campbell Soup sold off Godiva Chocolates to focus on healthier fare. Heinz is another big winner in this marketing strategy, growing sales by 9 percent last year. They give the credit to their division called Pure Food Company. A representative from Heinz says, “From organic Classico pasta sauces to our expanding range of reduced calorie meals, soups, and desserts under the Weight Watchers from Heinz and Weight Watchers Smart Ones brands, we provide consumers with multiple options to suit their lifestyles.”
And more shoppers are indeed choosing a healthy lifestyle. Organic foods supermarkets are expanding, and U.S. consumers are embracing healthy food products as never before. Are these food companies truly providing a healthier product, or is it all just a marketing ploy? Certainly FDA regulations have helped to curb the “spin” and ensure that companies can back up their claims, but consumers need to be aware that the label “healthy” is always on a continuum. A Progresso soup which General Mills has labeled “50% less sodium” means only that it has less sodium than their original soup, not that it is necessarily a low-sodium food by FDA standards.
While the efforts of these food companies are a step in the right direction, it is still important for informed shoppers to look past the marketing to the real nutritional content of the foods they buy. As health and wellness move into the world of big business, it’s up to buyers to hold companies like General Mills and Heinz to their claims.
By Haley January Eckels
