Saturday, July 11, 2009

About 73% of supermarket bakery officials claim their in-store bakery sales increased this year

After several consecutive years of flat sales and stale performance, in-store bakery department performance is on the rise, but there still remains ample room for continued improvement, according to the latest insights revealed in Progressive Grocer’s 2009 annual Bakery Operations Review.

Among the key highlights of the annual “state-of-the-in-store bakery” study, 73 percent of supermarket bakery officials polled said their in-store bakery sales have increased this year, which is up a full three points vs. last year. And though the overwhelming majority of retailers posted higher bakery sales during the 12-month measuring period vs. last year’s study, the gap similarly widened for 13 percent of retail bakery survey panelists whose category sales declined, along with the same amount of respondents whose sales remained the same.

And though turning a healthy profit in the bakery department has long required a delicate balancing act – all the more so during a profoundly trying economic cycle that found incremental spending reduced to a bare minimum -- 56.3 percent of survey executives said that the at-home eating movement was especially good for bakery dollar sales, with another 43.7 percent indicating no change. In terms of the effects of more meals being eaten at home vs. in restaurants, 47 percent reported increases in bakery unit volume, with 41.2 indicating no change and 11.8 reporting decreases.

Shrink remains a perennial bakery departmental foe, having increased slightly to 7.8 percent vs. last year’s 7.3 percent. Consistent with the aforementioned data, comparable bakery department profits during the 12-month period year were hard hit for 43.8 percent of survey participants vs. 32 percent last year, while a smaller number -- 37.5 percent vs. last year’s 48 percent -- said their comp profits were stronger, with 18.8 percent reporting static bakery revenues.

While bakery profits are under siege, a look at the category’s fastest-growing lines finds breads (artisan, rustic, etc.), whole grain-based products and cakes the pre-eminent bakery leaders during the past year, while the most bankable best-selling bakery stalwarts relied on to offset the profit shortfall include perpetually top-ranked cakes, breads, rolls cookies, muffins and pies.

As can be expected, a reshuffling of the bakery operations problem index -- a hierarchical ranking of the most problematic operational issues facing in-store bakery officials -- found labor costs switching places as the foremost category challenge with last year’s top-ranked culprit, product/ingredient costs. Traditionally viewed as the lone “controllable” operational expense, labor has been tagged as either the first or second foremost problem among our Bakery Operations Review panelists for the duration, paced closely this year by profits, which were not surprisingly deemed to be the second-leading problematic issue among retail panelists during the past year.

Local/national economic conditions, which moved up to the third rung from 9th place last year, made the biggest gain as a key operation headache this year, followed by product and/or ingredient costs; shrink/waste; recruiting effective employees; employee training; customer satisfaction and equipment costs. Other supermarket competition, food safety, attracting shoppers to bakery, product quality levels, sanitation and non-supermarket competition rounded out the list of top operational hot spots.

When asked to weigh in on product reformulations they’re seeking in response to changing consumer preferences and concerns, nearly 70 percent of bakery officials said they’re going with single-serve/smaller-portioned products, while 56.3 percent are on the prowl for more whole grain product formulations. Sugar-free baked goods are also in the crosshairs of 43.8 percent of retail bakery buyers, while gluten-free options were cited by 31.3 percent.

Environmentally friendly packaging options are also being sought by 25 percent of in-store bakery execs, followed by indulgent items they can add to the mix in response for reward-type splurges.

The number of in-store bakery panelists now employing category management is also on the rise among 44 percent of retailer respondents. Yet for the 56.3 percent of panelists who are still not using it to help guide decision-making, the practice is clearly becoming more popular in the fresh bakery domain.

Parting thought: Profits remain elusive, but the in-store bakery has been a major benefactor of the eat-at-home mealtime trend that’s pumped up both departmental dollars and volume. To keep the wheels spinning, aggressive bakery suppliers can gain an edge by heeding the direct constructive feedback offered up from this year’s Bakery Operations Review panelists, as revealed below:

“Better communication with warehouse/ordering.”

“More demo and sample incentives.”

“Spending at least some time at each store to communicate new ideas and new products.”

“Continue to offer new ideas to create smaller portion sizes for existing products.”

“New packaging, such as a 16-ounce ‘show-bowl’ offered to us in nine new, high-volume SKUs in 2008, which created a large percent of sales.”

“Drop surcharges.”

“Maintain a continued focus on health-and-wellness product lines.”

“Work to keep product costs consistent with cost increases of other categories.”

“Racks, signage, better packaging.”

“Better nutrition information.”

“Reduce out-of-stocks and provide better product descriptions for ads/promotions.”

Friday, July 10, 2009

Starbucks, Subway and McDonald's were ranked No. 1, 2 and 3 on Vitrue's Top 25 Most Social Restaurants list

Whether they know the difference between Facebook and MySpace or tweets and texts, restaurants large and small are getting more involved with their guests on social networks, according to marketing firm Vitrue and its latest social-media index rankings.

Industry giants Starbucks, Subway and McDonald’s led the pack in getting the most attention online and were ranked No.1, 2 and 3, respectively, on Vitrue's nationwide Top 25 Most Social Restaurants list for the first half of the year. However, smaller chains and regional favorites also are getting in on the act, including Krystal, Chick-fil-A, Pinkberry and In-N-Out Burger.

Vitrue chief executive Reggie Bradford said the companies atop the firm’s rankings recognize the potential that various social-networking tools have for connecting restaurants with their guests.

“The encouraging thing that we’re seeing,” Bradford said, “is that all brands in the top 25 are seeing the benefits and value of social media, whether it’s an individual pizza store messaging to Twitter followers or the largest restaurants in the world creating a comprehensive Facebook experience. It’s not only cost-effective, but it also develops real long-term bonds between consumers and brands.”

Starbucks continues to be the “Kleenex” of the restaurant industry, Bradford said, meaning that its brand name has become synonymous with an entire category, like Kleenex, Frisbee or Dumpster. The word “Starbucks” is mentioned online more than the word “coffee,” he said.

For its part, Starbucks has more than 245,000 followers on Twitter, and the Seattle-based coffeehouse chain currently is running an ice cream giveaway promotion on its Facebook page through July 16. The company also recently inked a sponsorship deal with popular MSNBC morning show “Morning Joe,” which airs nationwide five days a week.

Bradford noted that 17 of the 25 ranked companies, including the top nine brands, are quick-service chains.

“All the bigger guys have been aggressive building out their social-media presence, from Starbucks to Burger King up and down the line,” Bradford said. “Social media really is about instant gratification, and quick service is the same thing. There’s a lot of impulse behavior in purchasing. They tie well together.”

Krystal, a Chattanooga, Tenn.-based hamburger chain, made instant gratification the centerpiece of its most ambitious social-media initiative, the Krystal Giveaway Show, a live broadcast online, where the restaurant’s fans could answer trivia questions in real time by posting responses on Twitter and Facebook.

A Krystal spokesman said the May 27 broadcast attracted more than 1,600 viewers who posted more than 500 comments on the brand’s Facebook page and wrote about 300 tweets on Twitter with a “#KrystalHD” tag. Vice president of marketing Brad Wahl called the social-media event “encouraging” and told Nation’s Restaurant News, “Customer retention and loyalty is a big deal, and anything we can do to develop our database of Krystal lovers will go a long way.”

Bradford of Vitrue said many companies initially turned to Facebook to start their social-media strategies. That network continues to grow rapidly, especially among older consumers, and it conveniently groups people in networks by region.

“Marketers are more focused on Facebook because of the growth and size of the audience and demographics of the audience,” Bradford said, “as well as the ability to order them nationally and geographically. Technology-wise, for a corporation to be able to roll something out systematically, Facebook is the best-developed method today.”

Twitter, the popular microblogging site, allows restaurants great online versatility, Bradford said, because each unit of a chain can have its own Twitter feed for promotions and branding while the corporate headquarters can manage the brand’s official messaging on the company profile.

“Certainly, with Twitter, you can have tons of activity with individual locations, as well as have Dunkin’ Dave doing the corporate stuff,” he said, referring to the man behind Canton, Mass.-based Dunkin’ Donuts’ Twitter feed.

Bradford singled out Pinkberry as a notable entry on the Top 25 list, at No. 19, especially since the frozen-yogurt chain opened its first store in 2005. The brand’s rabid following in New York and Los Angeles have plenty of people talking about it online, however.

“With Pinkberry, what was interesting to us is that it’s a newer concept, so we were surprised to see it make the list,” Bradford said. “It’s generated a larger buzz than bite, I guess.”

The Vitrue chief executive wasn’t quite so surprised to see Chick-fil-A on the list, as the chicken chain’s fans, known to camp out in front of new units and wear cow costumes for free food, are likely to promote the brand online.

“Chick-fil-A has developed such a passionate audience,” Bradford said. “A lot of people are such big fans, and they camp out in front of new-store openings. Their corporate brand is consistently high quality, and from a social-media standpoint, that translates into people who are satisfied with that relationship and want to talk about it.”

Thursday, July 09, 2009

About 63% of consumers are still confused by probiotics

Well it certainly isn't Jamie Lee Curtis' fault, but the fact remains many consumers do not actually know what probiotics are. Curtis has served as a very visible spokesperson for Dannon Activia, a leading yogurt that contains probiotics-which are healthy bacteria said to help digestion.

Still despite Dannon and competitors like LiveActive from Kraft Foods' efforts, 63 percent of consumers reported that they are still confused by probiotics. Only 13 percent of those claiming familiarity could accurately provide a definition. These were the findings from a Datamonitor study released today which was commissioned by Kraft.

Still, the results show an improvement, said Datamonitor's consumer markets analyst Mark Whalley. A survey conducted by Opinion Research Corporation for Ganeden Biotech in 2008 found that 85 percent of respondents were unfamiliar with probiotics. In 2007, 78 percent of respondents to an NPD Group had no knowledge the term probiotics at all.

"This emphasizes how there is still a need for brands to educate U.S. consumers about the benefits of probiotic consumption. The good news is that Americans appear to be responding to marketing messages," said Whalley.

Whalley said that Datamonitor predicts the US probiotic market will continue to grow as more consumers shift to healthier eating habits and increase their working knowledge of the associated health benefits of probiotics. Datamonitor forecasts that the industry could be worth up to $2 billion or more by 2013.

"What is clear is that during the economic crisis manufacturers need to continue to create probiotic products, which consumers find an integral part of their daily routine, otherwise much of the early good work will have to be repeated to get these consumers to resume consumption if they sacrifice it now to save money," Whalley said.

Dannon, has kept its foot on the gas, earlier this year launched Activia drinks and Activia Fiber.

Still, no matter who is producing the products containing probiotics, they need to be mindful of their claims. In April, is was reported that The Dannon Co. was working on a settlement of complaints filed by customers questioning the health claims made on behalf of its Activia as well as DanActive yogurts.


the International Scientific Association for Probiotics and Prebiotics released a clarified definition of the term "probiotic."

he International Scientific Association for Probiotics and Prebiotics (ISAPP) released a clarified definition of the term "probiotic" to assist consumers, manufacturers, researchers and regulators (see www.isapp.net). ISAPP promotes correct use of the term "probiotics" to enhance precision for basic and clinical research efforts on probiotics as well as facilitate the work of regulatory bodies concerned with issues of probiotic safety and consumer protection.

Davis, Calif. (PRWEB) June 24, 2009 -- The International Scientific Association for Probiotics and Prebiotics (ISAPP) today released a clarified definition of the term "probiotic" to assist consumers, manufacturers, researchers and regulators (see www.isapp.net).

Probiotics were defined by the FAO/WHO in 2001 as live microorganisms, which when administered in adequate amounts confer a health benefit on the host. This definition is widely acknowledged by the scientific community, but the term "probiotic" remains undefined by most regulatory bodies worldwide. Over the years the FAO/WHO definition of probiotics remains applicable to scientific, industrial and regulatory communities, as long as it is interpreted correctly.

The term "probiotic" is commonly misused both commercially, when the term is featured on products with no substantiation of human health benefits, and scientifically, where the term has been used to describe bacterial components, dead bacteria or bacteria with uncharacterized health effects in humans.

ISAPP promotes correct use of the term "probiotics" to enhance precision for basic and clinical research efforts on probiotics as well as facilitate the work of regulatory bodies concerned with issues of probiotic safety and consumer protection.

FOOD USE

When combined with the specifications outlined by the FAO/WHO Working Group for the Evaluation of Probiotics in Food (2002), the key aspects of this definition include:

 A probiotic must be alive when administered
 A probiotic must have undergone controlled evaluation to document health benefits in the target host
 A probiotic must be a taxonomically defined microbe or combination of microbes (genus, species and strain level)
 A probiotic must be safe for its intended use

Although regulations differ internationally, in general, foods and nutritional (dietary) supplements are targeted for the generally healthy population and can carry substantiated claims for both disease risk reduction (if proper approval is obtained) and claims which relate them to general health or the normal structure and function of the human body. Substantiation is required for all claims.

NON FOOD USE

The FAO/WHO effort was specifically focused on food uses of probiotics; however, the definition advanced by this group is sufficiently broad to encompass a range of probiotic preparations and intentions of use. In addition to being a food or a dietary supplement, a probiotic microorganism(s), including genetically modified strains, may be used in drug applications (referred in some instances as a live biotherapeutic), microbial feed (animal uses), and live vaccines if administered orally.

Requirements for establishing efficacy and safety for probiotics are different for these categories of probiotics. For example, a probiotic used as a drug must not only fulfill the general FAO conditions stipulated above, but also conform to existing national regulations (e.g., US Food, Drug, and Cosmetic Act and EU Directive 2004/27/EC on substances used for treating or preventing disease) and guidelines on good clinical practices.

IN SUMMARY

- Since its genesis in 2001, the FAO definition on probiotics has proven its scientific value as shown through acceptance worldwide by key players in the field of probiotics and health.

- The strength of this definition is that it encompasses the many different applications of probiotic science and does not restrict probiotics to specific mechanistic activities.

- This definition has its place in today's debates that revolve around the substantiation of health benefits for probiotics, and it offers a valuable reference for regulatory authorities.

- Adherence to this definition by those involved in the field will assure that the term "probiotic" is meaningful commercially, clinically and scientifically.
References:

Food and Agriculture Organization of the United Nations (FAO). 2001. Health and Nutritional Properties of Probiotics in Food including Powder Milk with Live Lactic Acid Bacteria, http://www.who.int/foodsafety/publications/fs_management/en/probiotics.pdf

Food and Agriculture Organization of the United Nations (FAO). 2002. Guidelines for the Evaluation of Probiotics in Food. ftp://ftp.fao.org/es/esn/food/wgreport2.pdf
About ISAPP

The International Scientific Association for Probiotics and Prebiotics (www.isapp.net) is a non-profit, scientific organization dedicated to advancing the science of probiotics and prebiotics through convening scientific conferences which enhance networking in the field, publishing peer-reviewed reviews on current topics relevant to probiotic and prebiotic science, communicating to regulatory bodies and providing collaborative reaction to relevant current events. ISAPP functions as an objective, science-based voice to benefit end users of probiotics and prebiotics by helping them make informed choices. ISAPP is the only scientific organization dedicated specifically to both probiotics and prebiotics. As a scientific society, ISAPP strives to have all activities focused on science, not promotion of specific commercial products. Corporate participation through scientific and financial contributions is important to ISAPP, but no industry group or commercial entity dictates its activities or opinions.

Wednesday, July 08, 2009

Drinking five cups of coffee a day could reverse memory problems

Drinking five cups of coffee a day could reverse memory problems seen in AlzAdd Imageheimer's disease, US scientists say.

The Florida research, carried out on mice, also suggested caffeine hampered the production of the protein plaques which are the hallmark of the disease.

Previous research has also suggested a protective effect from caffeine.
But British experts said the Journal of Alzheimer's disease study did not mean that dementia patients should start using caffeine supplements.

The 55 mice used in the University of South Florida study had been bred to develop symptoms of Alzheimer's disease.

First the researchers used behavioral tests to confirm the mice were exhibiting signs of memory impairment when they were aged 18 to 19 months, the equivalent to humans being about 70.

Then they gave half the mice caffeine in their drinking water. The rest were given plain water.

The mice were given the equivalent of five 8 oz (227 grams) cups of coffee a day - about 500 milligrams of caffeine.

The researchers say this is the same as is found in two cups of "specialty" coffees such as lattes or cappuccinos from coffee shops, 14 cups of tea, or 20 soft drinks.
When the mice were tested again after two months, those who were given the caffeine performed much better on tests measuring their memory and thinking skills and performed as well as mice of the same age without dementia.

Those drinking plain water continued to do poorly on the tests.
In addition, the brains of the mice given caffeine showed nearly a 50% reduction in levels of the beta amyloid protein, which forms destructive clumps in the brains of dementia patients.

Further tests suggested caffeine affects the production of both the enzymes needed to produce beta amyloid.

The researchers also suggest that caffeine suppresses inflammatory changes in the brain that lead to an overabundance of the protein.

Earlier research by the same team had shown younger mice, who had also been bred to develop Alzheimer's but who were given caffeine in their early adulthood, were protected against the onset of memory problems.

'Safe drug'

Dr Gary Arendash, who led the latest study, told the BBC: "The results are particularly exciting in that a reversal of pre-existing memory impairment is more difficult to achieve.

"They provide evidence that caffeine could be a viable 'treatment' for established Alzheimer's disease and not simply a protective strategy.

"That's important because caffeine is a safe drug for most people, it easily enters the brain, and it appears to directly affect the disease process."

The team now hope to begin human trials of caffeine to see if the mouse findings are replicated in people.

They do not know if a lower amount of caffeine would be as effective, but said most people could safely consume the 500 milligrams per day.

However they said people with high blood pressure, and pregnant women, should limit their daily caffeine intake.

Rebecca Wood, chief executive of the Alzheimer's Research Trust, said: "In this study on mice with symptoms of Alzheimer's, researchers found that caffeine boosted their memory. We need to do more research to find out whether this effect will be seen in people.

"It is too early to say whether drinking coffee or taking caffeine supplements will help people with Alzheimer's.

Neil Hunt, chief executive of the Alzheimer's Society, said previous research into caffeine had suggested it could delay Alzheimer's disease and even protect against vascular dementia.

"This research in mice suggests that coffee may actually reverse some element of memory impairment.

"However much more research is needed to determine whether drinking coffee has the same impact in people.
"It is too soon to say whether a cup of coffee is anything more than a pleasant pick me up."