Dan something I thought you, Howard and others here might enjoy reading. Couple of references to Gumtech. BTW anyone know the deal between geltech and gumtech on zicam
Regards, Mad2
Copyright 1999 Information Access Company,
a Thomson Corporation Company;
ASAP
Copyright 1999 Stagnito Publishing
Candy Industry
March 1, 1999
SECTION: No. 3, Vol. 164; Pg. 29; ISSN: 0745-1032
IAC-ACC-NO: 54297113
LENGTH: 4130 words
HEADLINE: Nutraceuticals fuel confectionery growth.
BYLINE: Vreeland, C. Curtis
BODY:
Candy and gums are efficient vehicles for delivering medicinal ingredients.
Candy is "one of the most portable, stable, potentially nutritionally perfect and delicious foods available." This truth as affirmed by confectionery industry consultant Maurice Jeffery is fueling the functional foods or nutraceuticals trend in the U.S. food industry.
Functional confectionery, being uniquely positioned between the food and drug markets, is transforming an industry long regarded as a producer of empty calories into one of healthy options.
Candy and gums are efficient vehicles for delivering medicinal ingredients. For example, hard candy provides a wide variety of textures, flavor variety and active ingredient release rates, and shapes. A sugary confection can mask the unpleasant tastes of botanical ingredients, while some sugar substitutes are designed to blend easily with functional ingredients.
Chewing gums can deliver caries- and halitosis-fighting ingredients directly to the teeth and gums. Coated bars offer good bases for oil-soluble vitamins and for controlling dosage size. Some traditional confections, such as chocolate and licorice, provide their own therapeutic benefits.
Ranging from weight loss to disease prevention, functional confections address a wide range of health issues. Thirty-seven percent of functional foods and nutraceuticals carry claims concerning gastrointestinal health issues; 26 percent have cholesterol-control claims; and 23 percent center on disease resistance (immune system bolstering), according to an audit of European Union functional foods and nutraceuticals conducted in 1998 by Leatherhead Food Research Association, a research group in Surrey, England.
Containing hot functional ingredients such as botanicals, energy products, and phytochemicals containing carotenoids (antioxidants), flavonoids (green tea), and isoflavonoids (soy), functional confections also promote fun and pleasure.
NutraPops, a lollipop with a medical mission, is made by NutraPops Inc. Two sisters seeking a "valium salt lick" to relieve the stress of raising children were its developers, says President Jules Bailey.
Another example is F&F Foods' line of fruit or vegetable flavored hard candy called Happy Health Candies that combine antioxidants, fiber and echinacea.
"Satisfying people's sweet cravings as well as providing nutritional benefits," is how Dave Daneliak, F&F's director of marketing, describes the products. "Less than 20 percent of all Americans eat the recommended five servings [of fruit and vegetables] a day. With that lack of nutrition in the diet combined with the fact that the average American eats over 27 pounds of candy per year, what better way is there to get nutrition than through candy."
Gum racks are filled with gums delivering anti-cavity properties, vitamins, caffeine (Stay Alert), ginseng (Love Gum), cold fighting properties (Zinc Gum), and memory boosting (Brain Gum). Several manufacturers are using child-friendly candies to deliver drugs and supplements. For children that have trouble swallowing pills, Metabolic Response Modifiers developed a dietary supplement bar called Attention!. It is loaded with DHA and phosphatidyl serine for children suffering from Attention Deficit Disorder.
Even chocolate has been recognized as providing intrinsic health benefits. It contains flavonoid phenolic compounds that have antioxidant properties believed to protect the body against free radicals, substances that may cause certain types of cancer and heart disease. Polyphenols are the substances that have promoted red wine's reputation as a healthy drink.
Last April, Japan's Meiji launched the brand Chocolate Koka that contains 2.5 times more polyphenols than ordinary chocolate and 20 times more polyphenols than a glass of red wine. This brand is being targeted at adult Japanese males who traditionally have not been major consumers of chocolate, says the firm.
Japanese chocolate manufacturers hope the introduction of polyphenol-enhanced chocolates will revitalize a market suffering from a 2.5 percent decrease in consumption. Sakuma projects its export sales of polyphenol sweets will expand to one-third of its entire domestic confectionery sales by September.
Common flavorings being marketed for their medical claims are licorice (reduces liver inflammation), ginger (stimulant and decongestant),lavender (relaxing affect), and mint (stress reliever).
Market drivers
Consumer interest in healthy products, advances in human physiology, and, improved understanding of the role of active food ingredients in nutrition are factors in the growth of functional sweets. There also appears to be a shift in consumers' expectations over the utility of food. They increasingly view candies, foods and drinks as imparting functional, rather than strictly refreshment or reward properties.
The growing dissatisfaction with the medical establishment has encouraged consumers to seek alternative and complementary forms of treatment. According to HealthFocus Inc.'s 1998 Trend Report, 52 percent of consumers believe that certain foods can reduce their use of drugs and other medical therapy, and 33 percent "regularly choose foods for specific medical purposes ..."
The general functional food and nutraceutical market appeals to a spectrum of consumer profiles. The predominant consumers tend to be baby boomers, 34-52 years old, who are educated about the link between diet and health.
However, Generation Xers (25-34 years old) and active seniors (over 70) are stimulating demand for sports/fitness enhancement products, a specialty segment within the functional food and nutraceutical market.
Food technology has continued to improve, particularly in the area of extracting and standardizing active ingredients and in masking the bitter components of botanicals. This has allowed better tasting products to be developed without detracting from their medical benefits.
Market size
Considering the relative newness of the functional foods and nutraceuticals market and the lack of clear category definitions, it is not surprising that estimates for the market's size and growth rates vary greatly. Datamonitor estimates the market at $ 25.8 billion, while the Nutrition Business Journal estimates $ 39.7 billion. Dr. Stephen DeFelice, of the Foundation for Innovation in Medicine, projects a $ 250 billion potential market.
Data tracking U.S. functional confection sales is as yet unpublished. European sales figures are available, however, and can be extrapolated with limitations to estimate U.S. functional confection sales.
Datamonitor estimates that 1998 European functional confection sales range from 1.2 percent of total confectionery sales in the U.K. and Italy, to 7.3 percent in Germany. Given the National Confectioners Association's newly released estimate of total U.S. retail sales of confections at $ 23 billion, functional confection's portion of total sales is inferred to be $ 280 million to $ 1.7 billion.
Datamonitor projects that within five years (by 2003) functional confections' share of total confectionery sales will range from 4.2 percent in Italy to 12.1 percent in Germany.
Assuming that total U.S. confectionery sales continue to grow at the 1997 rate of 2.1 percent per annum, then total sales of confectionery by 2003 will be $ 27 billion, with functional confections accounting for $ 1.1 to $ 3.3 billion of these sales.
Regulatory control
Functional confections, together with functional foods, nutraceuticals, and dietary supplements, are classified as dietary supplements and regulated under the Dietary Supplement Health and Education Act (DSHEA) passed in 1994. Such products are held by the Food and Drug Administration (FDA) to a lower standard of proof of efficacy than are drugs. The FDA investigates only if consumer complaints are received against a particular supplement.
DSHEA permits functional confections to be marketed with structure or function claims rather than with disease treatment or prevention claims. For example, products with echinacea can be labeled "supports the immune system" but not "supports the body's ability to resist infection."
Whenever the manufacturer makes a structure or function claim, it is required to notify the FDA 30 days prior to the product's initial marketing.
Companies must also place an asterisk after the claim that says: "These statements have not been evaluated by the FDA. This product is not intended to diagnose, treat, cure, or prevent disease."
The manufacturer does not have to submit any substantiation with its notification. Under DSHEA the burden of proof that a supplement is mislabeled or poses a health risk lies with the FDA.
Proponents of nutraceutical products insist that DSHEA provide a method to disseminate truthful information about such products.
Opponents counter that DSHEA fosters the use of false or misleading claims because supplements are marketed without normal FDA due diligence. This regulatory gray area has been a deterrent for food and drug companies from entering the market, but, the market is attractive to candy manufacturers eager to develop value-added products. To-date, small confectionery and pharmaceutical manufacturers have built the functional confectionery industry. In the U.S., leading functional can dymakers are American Licorice, Ricola, F&F Foods, Quigley, and GumTech. In Europe, they are Haribo, Leaf, and Chupa Chups.
LFRA's European survey finds that 34 percent of respondents have established functional food task forces, and an another eight percent plan to do so. Companies identified as potential leaders are Nestle, Unilever, Danone, Kellogg, MD Foods, Smith Kline Beecham, Yakult, Novartis, Nutricia, Oraffi, Monsanto, Campina, Kraft Jacobs Suchard, Procter & Gamble, Unigate, ICI, and Ajinomoto.
It is anticipated that pioneering functional confectioners will become acquisition targets for these larger firms. "Smaller companies will have trouble with distribution, raising capital and marketing," says Amy de Rham, managing director of Nations-Banc Montgomery Securities.
Japan's functional confections market is much more developed. "Not only were the Japanese the first to introduce functional foods or nutraceuticals, they also were the first to establish a government approval system for health claims on these products," says Carole Burke, a researcher at JapanScan.
Major players in functional candy development include such giants as Meiji Seika Kaisha, Lotte, Morinaga, and Ezaki Glico.
Current challenges
The functional confectionery market faces considerable challenges as it grows from niche segment into a trend. The market must address the same factors as conventional treats. Taste, convenience, and value remain primary factors for success. "Food must be nice to eat as well as functional and the key will be to supply confections that meet this criteria," says Jeffery.
Consumer recognition of the terms nutraceuticals and functional foods is poorly developed. When shoppers were asked in the 1998 HealthFocus survey if they were familiar with nutraceuticals, 80 percent had never heard the term. "It ... generally evokes apprehension from shoppers," the survey says.
Fifty-one percent of shoppers were equally unfamiliar with the term functional foods, but construed a more user-friendly positive association. "'It helps my body to function better' is a positive association," the survey reports.
As the market pushes the regulatory envelope, FDA will be forced to reevaluate the market's classification. Such testing can cost as much as $ 200 million and take 10 years to complete, creating a financial burden beyond the reach of most functional confectioners and nutraceutical manufacturers. Candy with medical benefits can also present a risk to consumers, especially children, of overdosing by mistaking powerful drugs for candy. Production of such products requires strong quality controls.
Future prospects
If the more experienced European and Japanese functional confectionery markets can serve as guides, then the previously described hurdles are surmountable and the future prospects for the U.S. functional confectionery market are bullish.
Datamonitor's 1998 report on the European functional confectionery market finds that the "potential for growth is huge." Another study reports that the functional foods category leads in new food product introductions in the European Union and that in Japan most new products include some sort of health claim.
With the U.S. functional confectionery market poised to gain from both functional foods and nutraceuticals sales, this market's future prospects appear very sweet.
Active Ingredients in Functional Confections
Ingredient Effect
Astragalus Enhances the immune system
Calcium fortification Reduces risk of osteoporosis,
essential element for
developing and maintaining bones
Casein phosphopeptide
Chitosan Helps inhibit absorption
of cholesterol
Echinacea Supports the immune system
Ginger Nausea reduction and
digestive aid
Ginkgo biloba Memory enhancer
Ginseng Combats fatigue, reduces stress,
and increases concentration
Glucose Prevents hypoglycemia in
insulin-dependent diabetics
Hydrogenated palatinose Low cariogenicity sugar
L-arginine An amino acid required to produce
nitric acid used to
prevent heart disease
Lacto-sucrose Increases naturally occurring
intestinal Bifido-bacteria
that promotes health and well being
Lavender Relaxing effect
Licorice Treatment of gastric & duodenal
ulcers, and as cough and
asthma remedy
Maltitol Anticariogenic eliminating
need for fluoride
Mentol (including Reduces the cortisol level
peppermint) in the blood,
nausea reduction,
digestive aid
Neuro-transmittors Boosts concentration and memory
(including
phosphatidyl
serine, DHA &
phosphatidylcholine)
Oligosaccharides (including Increases naturally occurring
fructo-oligosaccharides) intestinal Bitido-bacteria that
promotes health and well-being
Polydextrose Dietary fiber
Polyphenols Antioxidant, anticarcinagenic,
antibacterial, and antiviral
Pyruvate Induces weight loss and
increases energy levels
Vitamins & Minerals Essential building blocks
Xylitol Anticariogenic, eliminating
need for fluoride
Zinc Assists the immune function
Ingredients Confection
Astragalus Confections
Calcium fortification Chewing gums, candies and
energy bars
Casein phosphopeptide
Chitosan Biscuits
Echinacea Confections
Ginger Confections and soft drinks
Ginkgo biloba Confections
Ginseng Confections
Glucose NiteBite and Zbar candy bars
Hydrogenated palatinose Chewing gums
L-arginine Nutrition bars
Lacto-sucrose Hard candy, biscuits, soft drinks
and table sugar
Lavender Confections
Licorice Confections
Maltitol Chewing gums and confections
Mentol (including Gummy bears, chewing gum and
peppermint) cough drops
Neuro-transmittors Candy bars and chewing gum
(including
phosphatidyl
serine, DHA &
phosphatidylcholine)
Oligosaccharides (including Hard candy, biscuits, soft drinks
fructo-oligosaccharides) and table sugar
Polydextrose Soft drinks and confections
Polyphenols Chocolate, nutritional drinks,
confections and chewing gum
Pyruvate Power bars and candies
Vitamins & Minerals Gummy bears and sugar confection
Xylitol Chewing gums and confections
Zinc Chewing gums, lozenges, sports
nutrition products, and
breath mints
Defining nutraceuticals
Company Brand name
American Licorice Co. Herbal Chews
Amurol Confections Co. Stay Alert
Balance Bar Balance+
Celestial Seasonings Herbal Throat Drops
Cooke Pharma HeartBar
Quigley Corporation Cold-Eeze
Chocolat Nouveau Kids-Eeze
Intelligent Chocolate
Etherium Technology NutraPops
F&F Foods Happy Health Candies
Glorybee Foods Honeystix
GumTech Brain Gum
Halls Vitamin C Drops
Hearty Balance
Hero Nutritional Yummi Bears
Ivax Corp. Zbar
Medical Foods NiteBite
Metabolic Response Attention!
Modifiers
Ricola
Wrigley
Company Product category
American Licorice Co. Licorice
Amurol Confections Co. Chewing gum
Balance Bar Candy bar/nutrition bar
Celestial Seasonings Hard candy/lozenges
Cooke Pharma Nutrition bars
Quigley Corporation Hard Candy/lozenges
Chocolat Nouveau Chewing Gum
Chocolate truffles
Etherium Technology Lollypops
F&F Foods Hard candy
Glorybee Foods Honey
GumTech Chewing gum
Halls Hard candy/lozenges
Hearty Balance Nutrition bars
Hero Nutritional Gummies
Ivax Corp. Chocolate bar
Medical Foods Candy bar/nutrition bar
Metabolic Response Candy bar/nutrition bar
Modifiers
Ricola Hard Candy/lozenges
Wrigley Chewing gum
Company Active ingredients
American Licorice Co. Botanicals
Amurol Confections Co. Caffeine fortified
Balance Bar Combinations of antioxidants,
Ginseng & Ginkgo biloba
Celestial Seasonings Chamomile and botanicals
Cooke Pharma L-arginine
Quigley Corporation Zinc Gluconate Glycerine
Chocolat Nouveau Zinc Gluconate Glycerine
Ginkgo biloba, Gotu kola,
Etherium Technology Phosphatidylserine, and DHA
Botanical "essences"
F&F Foods Combinations of anti-oxidants,
vitamins, dietary fiber,
flavonoids, carotenoids and
Echinacea
Glorybee Foods Botanical infused honey
GumTech Phosphatidyl serine
Halls Vitamin C
Hearty Balance
Hero Nutritional Multi-vitamins, fiber supplements,
whole food supplements
Ivax Corp. Uncooked cornstarch which triggers
absorption of glucose
Medical Foods Uncooked cornstarch which triggers
absorption of glucose
Metabolic Response DHA & phosphatidyl serine
Modifiers
Ricola Echinacea & green tea
Wrigley Anti-cavity and anti-gingivitis
About the author: C Curtis Vreeland specializes in marketing research, product development and strategic procurement, and is based in Hershey, Pennsylvania.
GRAPHIC: Illustration; Table
LANGUAGE: ENGLISH
IAC-CREATE-DATE: April 13, 1999
LOAD-DATE: April 14, 1999
|
