Navigating Health Claim Regulation in Food and Drinks: Making substantiated claims in a changing regulatory environment

Published Date: May 2009 Published By: Business Insights Page Count: 124 Order Code: R162-943 $2,875.00   Online Download $10,781.25   Global Site License   Questions About This Report E-mail a Colleague Printable Page Fax Your Order Description Table of Contents Search Inside this Report Similar Products Executive Summary Consumer attitudes Claims & corporate strategy Marketing strategy Product claims strategy Chapter 1 The impact of new legislation Summary Introduction The new legislation will have a dramatic effect on the marketing landscape Overview of regulation # 1924/2006 Introduction The creation of stronger, clearer regulation A “gold standard” approach is proving controversial Definitions and scope of the regulation Definition of “food” Definition of nutritional and health claims Medicinal claims are beyond the scope of this regulation Articles 13, 13.5 and 14 - the heart of the regulation Article 13 Article 13.5 Article 14 Problems with the implementation of the regulation Communication breakdown? Dossier insufficiencies and related problems Interpretation of Article 13 and the “Gold Standard” approach A need within a defined population must also be shown for a health claim The costs of dossier compilation are harming innovation budgets Direct challenges to EFSA’s opinions are risky and ignore the wider context Challenges the food and drinks industry must meet The future impact of the regulation Conclusions The rationalization, and not the death, of nutrition and health claims A narrow focus on the regulation will miss a vital piece of the marketing puzzle Chapter 2 Consumer attitudes Summary Introduction A need to address the latest consumer trends affecting the market Addressing consumer issues can lead to major rewards A note on the following sections A major trust issue needs addressing Mistrust is the number 1 inhibitor of continued growth The majority of consumers still need convincing before they will buy products An independent expert approving claims is crucial Functional foods are favored over other food technologies Clear benefits and low risk make functional foods more acceptable to consumers The media and governments play a fundamental role in shaping consumers’ views Regulation and corporate practices need to build trust A lack of consumer control creates a clear need for regulation Consumer understanding needs to be improved Areas of misunderstanding Claims should be concise and clear to avoid confusion Deep-seated food attitudes affect the marketing landscape Introduction The process of food attitude formation Steps to determining attitudes and behaviors in a category “Natural” products must also fit in with these attitudes As a result, some ingredients are seen as more natural than others The carrier food for any ingredient is crucial A logical connection between the carrier and ingredient is required Staples, and products already seen as “healthy”, make the best carriers Risk-Benefit assessments The prominence of “risk” in consumers’ minds What are the risks on which consumers need assurances? Education about regulation can help provide reassurances Differences by consumer groups Attitude towards the product is the key Demographic factors to augment attitudinal segmentation Attitude-Behavior discrepancies Research needs taking into context - consumer research can be misleading Price and taste remain more important than claims Claims are important, but the “golden rules” cannot be ignored Conclusions A tough recipe for success Chapter 3 Claims & corporate strategy Summary A need to update current strategies Health-orientated businesses should re-examine strategies Companies which simply wait upon EFSA’s decisions will fall behind It’s not just a case of “carrying on as usual” once a claim has been approved Areas that should be strategically reassessed Decisions to challenge EFSA will harm companies and industry in the long run Research & development needs to focus on clinical excellence and “marketability” Product pipelines and portfolios should be reassessed Next steps in corporate strategy Avoid distractions associated with the new regulation Adopting a pharmaceutical-style model for health brands Developing a corporate health brand Case study: Danone, developing a corporate health brand New approaches in portfolio management All health brands in the market need to offer highly credible health claims Research and development pipelines should be segmented by risk Where possible, make use of “stalking horses” when launching new ingredients Conclusions Chapter 4 Marketing strategy Summary Introduction The advantage will go to those who are quick to update their marketing A framework for marketing strategy Strategies can, and should, be based on consumer insight A tool for assessing products’ consumer appeal Assessments of product appear should be based upon consumer insights Market analysis can also be layered on top of consumer appeal assessments Marketing strategy and tactics Make claims clear, specific and benefit-focused The temptation to continually add claims should be avoided Wellness positionings should also be avoided for specific products Market benefits first and provide the science as back up Naming specific ingredients is a powerful tool in marketing communications Safety of products is a tricky issue Marketing should reassure consumers about safety Improving communications Commercializing science and educating consumers are key A flexible blueprint for global marketing is crucial Companies must take the lead in responsible communications The Natural Perspective Natural positioning should be used where possible Determining just what is “natural” is not an easy task Natural positionings must meet consumers’ expectations as well as regulation New “natural” sweeteners highlight the power of a natural positioning Marketers will need to decide how overt to make any natural positioning Conclusions Chapter 5 Product claims strategy Summary Introduction Scope of the chapter Analyzing the last year of new launches provides insight into latest strategies Scope of the data Claims analysis Claims by type and by industry An average of 2.6 claims is made by a product making any claim Beverages focus on “positive” nutrition, but food focuses on avoiding the “bads” Innovation is greater in North America and is more focused on positive nutrition Why should positive nutrition be more popular in the US? Most popular claims by industry “High”, “low” and “no” positioning still dominate The natural angle Natural positionings are of fundamental importance American products heavily focus on natural benefits Most popular functional claims by industry Most functional claims are not specific Functional claims are much more prevalent among North American launches Leading countries for new claims Leading manufacturers for new claims Private Labels are providing competition to brands Conclusions Chapter 6 Appendix Bibliography Index List of Figures Figure 2.1: The top-down process of food attitude formation: a hypothetical example from the yogurt category Figure 3.2: An initial framework for segmenting product development portfolios by risk Figure 4.3: Framework for assessing product strengths and weaknesses Figure 4.4: Fewer, clearer claims make a product more, not less, compelling Figure 4.5: Pistachi Oats: The Heart Healthy Cookie. A credible product proposition for European consumers? Figure 4.6: Actimel uses a consistent set of key messages to clearly and succinctly explain product benefits List of Tables Table 2.1: Percentage of European and US consumers who find health and nutritional claims onfood and drinks “trustworthy”, 2008 Table 5.2: % share of different claims being used, by type, in North America and WesternEurope, in new product launches between April 2008 and April 2009 Table 5.3: % share of different claims being used, by type, in North America and WesternEurope, in new product launches between April 2008 and April 2009 Table 5.4: Most popular claims made by new product launches that feature health or nutritionclaims (% of products with any claim), by industry, in North America and Western Europe, April 2008 to April 2009 Table 5.5: Ranking of the most popular claims, overall and by industry, for new productlaunches, in North America and Western Europe, April 2008 to April 2009 Table 5.6: Most popular claims made by new product launches that feature health or nutritionclaims (% of products with any claim), by industry, in North America and Western Europe, April 2008 to April 2009 Table 5.7: Percentage of new product launches that feature health or nutrition claims which makea specific functional claim (% of products with any claim), in North America and Western Europe, April 2008 to April 2009 Table 5.8: Percentage of new product launches that feature health or nutrition claims which makea specific functional claim (% of products with any claim), by region, April 2008 to April 2009 Table 5.9: Leading North American and Western European countries by the number of new product launches featuring health and nutrition claims launched between April 2008 to April 2009 Table 5.10: Leading manufacturers in North America and Western Europe, based on new product launches that feature health and nutrition claims, April 2008 to April 2009 Similar Products • Freedonia Focus on Weight Loss Products & Services Published Nov 2009 by Freedonia Focus • Profiting From Consumer Mega-Trends in Asia Pacific: Health Published Nov 2009 by Datamonitor • Weight Reduction Services Published Nov 2009 by First Research, Inc. • Weight Loss Centres in Australia - Industry Risk Rating Report Published Oct 2009 by IBISWorld • Weight Loss Centers in the US - Industry Risk Rating Report Published Oct 2009 by IBISWorld • Weight Loss, Babysitting and Other Personal Services in Australia - Industry Risk Rating Report Published Oct 2009 by IBISWorld • World Nutraceutical Ingredients Published Oct 2009 by Freedonia Group Inc • Opportunities in Whey Products and Lactose: Market growth and new product development in sports and infant nutrition Published Oct 2009 by Business Insights • Health Spas Published Oct 2009 by Global Industry Analysts • Profiting From Consumer Mega-Trends in the UAE and Saudi Arabia: Health Published Sep 2009 by Datamonitor