Food Business News - June 18, 2013 - (Page 37)

Sports Nutrition Improved performance The sports nutrition category is growing and expanding into mainstream products A June 18, 2013 Burger and the Cheesecake Factory as among their favorite restaurants and Ben & Jerry’s as their favorite ice cream brand. Gatorade leads the way With its Gatorade brand, PepsiCo, Inc., Purchase, N.Y., is a leader in the sports nutrition category. Indra Nooyi, chairman and chief executive officer of the company, said on April 18 in a conference call with financial analysts to discuss the company’s first-quarter results that she feels “very good” about the sports nutrition category. “In Gatorade, we are playing a sports nutrition game between Gatorade juice, Gatorade hydration and Gatorade recover,” Ms. Nooyi said. “As a system, that business is doing well. We are staying very true to our premium sports nutrition positioning. We continue to play the game that way. We are beginning to gain share in sports nutrition, even though we had lowprice competition come in with really aggressive pricing. “We held our ground and we are beginning to gain share. So, we feel very good about our sports nutrition strategy.” PepsiCo first began refocusing its efforts on the Gatorade brand in 2010, when the company adopted a more holistic approach to sports hydration and nutrition. The result was the G Series, developed by the Gatorade Sports Science Institute with two focuses in mind: getting the body ready for exercise and helping the body recover afterward. Each portion of the series is designed to help athletes compete before, during and after athletic events. The G Series includes Prime, a pre-performance drink in a pouch; Perform, a sports drink containing electrolytes to promote hydration; and Recover, a post-performance beverage. Many of the G Series products have been successful. Others, such as G Fit, which was pulled from shelves late last year, have not. Protein, amino acid and …? FCG/SHUTTERSTOCK.COM response to the health and wellness trend is often cited as a reason food and beverage manufacturers are interested in the sports nutrition category, but there is another reason — consumers participating in the category tend to have higher educations, more income and, more importantly, more disposable income. In a market that has been dominated by the value trend for the past few years, consumers of sports nutrition products stand out as a lucrative target market. The main demographic that sports nutrition used to cater to comprised bodybuilders and extreme athletes, according to the market research firm Euromonitor International. But growing consumer awareness and education made sports nutrition accessible to the mainstream consumer and sales of sports nutrition products are growing as products are diverging to meet the needs of these athletes. Every two years the trade association Running USA, which represents businesses participating in the running industry, conducts a survey of the group’s core customer. Published this past April, the 2013 survey, which incorporated responses from more than 30,000 runners, showed that today’s core runners are highly educated, with 76% having earned a college degree, and affluent, with 73% reporting a household income of more than $75,000. Not surprisingly, the Running USA survey also showed runners to be frequent consumers of Gatorade, Clif Bars and energy gel products, but they have an indulgent side and cited McDonald’s, In-N-Out In its report “Sports nutrition in the U.S.,” that was released in late April, Euromonitor said onthe-go sports nutrition product formats such as ready-to-drink beverages, bars and powders showed substantial growth in 2012. The market research firm added that ready-to-drink beverages are expanding into more retail channels and achieved $502 million in sales during 2012. It may be argued that the trend toward consumers adding protein to their diet began in the sports nutrition category as athletes turned to protein to add muscle mass and aid in recovery following a workout. Euromonitor said that as protein is being marketed as a recovery product, it has been positioned by some marketers as a meal replacement option. “This resulted in a growing number of women to adopt protein as it has wiped away the notion that protein simply builds muscle mass leading to bulkier frames,” Euromonitor said. “Additionally, as older generations are also using gyms more frequently, they are slowly learning more about the positive benefits (of protein), which has been incorporated into their gym regimes.” Developing protein fortified products for women was the rationale for CytoSport, Inc., Benicia, Calif., the processor FOODBUSINESS NEWS ® 37

Table of Contents for the Digital Edition of Food Business News - June 18, 2013

Food Business News - June 18, 2013
Diamond Foods challenged by walnut supply and Emerald relaunch
Market Insight: Mid-year commodity outlook
Fruitful ice cream options
Table of Contents
Web Contents
Editorial - Proposed SNAP cuts will be felt throughout the food sector
Flavored milk to grow at double the rate of white milk
Smucker exits bulk coffee, remains bullish on K-Cups
C.e.o. in unsolicited takeover bid for Dole
Heinz acquisition completed, new c.e.o. takes over
Mondelez to offer coffee pods compatible with rival’s system
Tyson Foods expands prepared foods portfolio with acquisition
Nielsen honors Breakthrough Innovation winners
Taco Bell taking charge of breakfast
Expanded breakfast helps lift McDonald’s May sales
McCormick & Company sees growth ahead from innovation and acquisitions
Wal-Mart doubles-down on fresh produce promise
Morningstar buy may be just the beginning for Saputo
Target delves deeper into organics
PepsiCo hires chief marketing officer
Wenner sees winner in Pirate Brands acquisition
Single-serve coffee' harbinger of things to come at TreeHouse'
Washington - Senate passes farm bill, stage set for debate over SNAP cuts
Sports Nutrition - Improved performance
Ingredient Innovations - Diverse Dynamos for Digestion
I.F.T. to convene in Chicago
New Food Products
Ingredient Market Trends - Imports from Mexico send U.S. sugar stocks to record highs
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - June 18, 2013