You can no longer walk into a grocery store, mass market pharmacy or convenience store-let alone a health food store or specialty market-without being subjected to a vast array of nutritional or energy bar products. The market has grown at a remarkable rate in the past several years, according to ACNielsen, Stamford, CT, which places the value of the bar market at $700 million. Sales through the grocery, drug and mass merchandise channels are up 53% for the 52-week period ending September 9, 2000 and the category has seen double digit growth for each of the last four years. Major players include PowerBar, which holds 44% of the market, Balance Bar, which hold 20% of the market, MET-Rx, which controls 12% of the market and Clif Bar, which has an 8% share. Other bar manufacturers hold 16% (Figure 1).
According to an analysis of ACNielsen Homescan® consumer panel information, energy bars are especially popular with single men, upper income professional households and households located in large cities. On a national basis, 10% of households purchase energy bars. In terms of region, however, there are significant differences. Energy bar sales are strongest in the Pacific region (California, Oregon and Washington), where 16% of households buy energy bars, and the Mountain region (Arizona, Colorado, Idaho, Montana, New Mexico, Nevada, Utah and Wyoming), where 14% of households buy energy bars. These are areas where consumption of healthy foods and participation in outdoor activities are high.
Although the bar category has experienced tremendous growth over the past couple of years it does not seem to be leveling off. In fact some industry experts agree that we have only seen the tip of the iceberg. "The bar category has experienced huge growth since 1995 and there have been a lot of new entrants into the category, both in protein bars and energy bars," said Kim Mayone, public relations manager, Odwalla/Fresh Samantha, Saco, ME. "The growth of the category comes as a result of nutrition awareness, convenience and portability and consumer affinity for energy products." In addition, she said, bars are gaining a greater presence in grocery stores and convenience stores and they are not just a novelty item in natural food stores anymore. "Bars are clearly becoming a mainstream item for snacking, meal replacements, active lifestyles and athletic performance," Ms. Mayone said.
As the market grows, its sophistication has grown as well. Consumer demand for convenience and taste continues to drive the market and manufacturers have responded with better tasting choices across all product categories. And product categories abound. Today's bar market includes not only energy bars but protein bars, low carbohydrate bars, nutritional bars, soy bars, meal replacement bars, low glycemic bars, food bars, medical bars and the list goes on.
The Protein Boom
One of the hottest areas right now is the low carbohydrate, high protein concept, which some industry experts say was spurred by diet plans such as Dr. Atkins' Diet Revolution.
According to Susan Howe, president and founder, All Terrain Foods, Hayward, CA,-manufacturer of the Zuma Bar, Tahoe Bar, Berkeley Bar and Maui Bar-"People are really pushing high protein right now. It used to be that 15 grams of protein was enough but now you have companies trying to cram 30 grams into a bar." However, she said the trend may change tomorrow. "High protein is really hot but that is only temporary. Soon you will see carbohydrates take over again." She added, "High protein and high carbohydrates will continuously take turns falling in and out of favor."
Voicing concern about the low carbohydrate and high protein concept was Lorie Zapf, marketing communications director, Boulder Bar, San Diego, CA. "This no carb, high protein phase is inherently unhealthy for the public," she said. "The low carbohydrate idea was mostly brought forth to combat America's love for bagels, pasta and refined starches but what they left out was the fact that not all carbohydrates are bad for you." In addition, Ms. Zapf said she feels as if the market is moving more in the direction of candy bars. For example, she said, "Soon we are going to have companies looking at a Butterfinger® and thinking to themselves 'Hmmm...how can we change this into an energy bar?' I think the initial concept of the energy bar conceived by Brian Maxwell (of PowerBar) has been stretched too far at this point."
Alyssa Berman, public relations manager, PowerBar, Berkeley, CA, agreed. She said the focus is moving away from the traditional energy bar. "The hottest thing right now is protein," she said. "People are paying less attention to fat and more attention to protein and carbohydrates." Ms. Berman also noted that there has been increasing focus on taste with less of a focus on nutrition. "Taste has become a major issue, which you will notice as companies come out with bars that taste really good but do not necessarily have a great nutritional profile."
Despite concerns over protein, right now it remains a hot ingredient. Terry Giles, senior manager, Rexall Sundown, Boca Raton, FL, said, "The trend still appears to be a low carbohydrate content and higher protein matrix and the bar is one of the most convenient ways to consume additional protein for a quick snack."
In another trend, disease specific offerings may have potential for the future. According to Darlene Walley, president and CEO, Cooke Pharma, Belmont, CA,-manufacturer of the HeartBar™-"Diet bars were the hottest thing this past year but I think soon we will see products that are more disease specific," she said. "In fact I think you will see bars move into prescription and OTC channels."
Who's Adding What
As for popular ingredients, Philip Kim, brand manager, Universal Nutrition, New Brunswick, NJ, which manufactures Hi Protein and the Doctor's Diet LowCarb Bar™, said, "Some of the energy herbs are still popular like panax and Siberian ginseng but even more popular right now is the fortification of bars with vitamins, minerals, proteins and amino acids." In addition, he suggested that the demand for specific types of protein has become extremely prevalent. "There is more of a demand for soy protein versus any of the other conventional proteins such as whey protein and casein because of the recently approved soy claim," he said.
Also weighing in on soy was Dr. Ari Babaknia, founder and chairman, Dr. Soy Nutrition, Irvine, CA. "We have been telling people for years don't eat this and don't eat that but what we should be telling them is to eat a balanced diet," he said. "Beyond this people should eat a balanced diet with added value and soy is a good way to do that because besides the high quality protein, soy also contains isoflavones, which have many health enhancing capabilities in terms of cardiovascular health and cancer prevention."
Discussing ingredients from a female health perspective was Nicky Tesh, director of marketing, women's health, Mead Johnson, Evansville, IN. "The whole idea of antioxidants, especially B vitamins, has really caught the attention of women," she said. "When you look at heart disease being the number one killer of women, the B vitamins in addition to folic acid and calcium are pretty important ingredients for women's products."
Doreen Whitaker, brand manager, consumables, Twin Laboratories (Twinlab), Hauppauge, NY, speculated on ingredients of the future. "Down the pike companies are going to try and find new ways to get new ingredients into bars," she said. "Taste is key and some companies are already moving toward the encapsulation of ingredients so that consumers will be unaware of bars that contain off-tasting components."
Will The Bar Be Raised?
For the future, industry experts believe the bar market will continue to grow. But the success of future products in an already crowded market will depend on savvy science and savvy marketing.
Kimberly Whitney, key accounts manager, Premier Nutrition, Carlsbad, CA, suggested that the fate of the market lies on research and taste. "There is a lot more growth potential because of the ongoing research on what protein blends are the best for the body," she said. This factor, along with a continued emphasis on taste, she said, will determine how far this market will go.
Twinlab's Ms. Whitaker agreed. "I don't think the bar market has even hit its peak yet and newer developments in technology will keep the category growing and evolving."
Universal Nutrition's Mr. Kim, disagreed. He said, "The category of bars seems to be losing momentum according to some sources. However, there is more room depending on how the industry behaves in the next few years, especially with the bigger companies becoming more involved."
Tom Ciola, president, Logia, Orlando, FL, which manufactures the Bible Bar, commented that although the nutritional bar market is booming and there are new players entering daily, there is a downside. "The nutritional bar market is exploding with every manufacturer/distributor rushing to market with some form of nutritional bar. We are seeing overkill. There is a lot of copycat marketing going on, yet there are only so many needs for bars to fill-energy, recovery, low carbohydrate, high protein," he said. "There must inevitably be a shakeout since there is only so much shelf space. Some companies have been a bit more innovative by targeting bars for specific health needs-memory, heart, menopause-however, it remains to be seen if this type of marketing will catch on or not."
Finally Cooke Pharma's Ms. Walley offered three important factors that companies must keep in mind in order to stay afloat. "Products need to have a point of difference with clinical efficacy, they need patent protection and they also need consumer appeal," she said. "In this market we will see those companies who will survive and thrive on these principles and those who will experience only temporary success."
What's New
New bars continue to flood the marketplace as marketers look to win overconsumers with better taste, new flavors and improved nutrition. And as the market becomes more crowded some companies are looking for ways for their bar offerings to stand out. What follows is an overview of the latest developments from bar manufacturers.
Riding the wave of success of its flagship product and its newer product for women, Clif Bar has been in the spotlight for more than its products lately. Recently the company doubled its annual support for The Breast Cancer Fund with a $60,000 commitment, which represents a portion of the proceeds from the sale of Luna™ bars. In addition, the company has been ranked No. 1 in sales for the six month period ended June 2000 among approximately 100 companies that sell energy bars in natural food stores. Also, according to ACNielsen, Clif Bar moved from third to second place in grocery store sales among energy bar makers, accounting for 18.8% of the energy bars sold for the year-to-date ended September 23.
The market leader in the bar market, PowerBar, recently launched new flavors. Lemon Crisp has been added to the company's Performance™ Bar line, Iced Oatmeal Raisin and Toffee Chocolate Chip have been added to Harvest® line and Lemon Yogurt and Cookies and Cream have been added to the Protein Plus™ line.
Coming off last year's acquisition by Kraft, Balance Bar, Carpinteria, CA, has been busy introducing new bars and flavors. In its Jenny Craig® line the company added a Chocolate Mint flavor. Earlier in 2000, Balance Gold™, boasting great taste and a host of vitamins and minerals, was introduced. Most recently, the company expanded the flavor offerings in its Balance+™ line to include Lemon Meringue Plus Calcium and Chocolate Mint Plus Vitamin E, which contains 300% RDA of vitamin E.
New from Odwalla, which made its entrance into the bar market more than a year ago, are two additions to its line and a change in packaging as well. Odwalla has introduced Cranberry C Monster, which contains 250% of the recommended daily intake (RDI) for Vitamin C and Chocolate Chip Peanut, which contains 100% RDI for folic acid with semi-sweet chocolate chips and fresh roasted peanuts.
Solgar Vitamin and Herb, Leonia, NJ, has unveiled Triumph Bar™, which is an all natural weight management bar specifically formulated to help manage weight and boost energy. The bars are available in three flavors, including Raspberry Yogurt Crunch, Chocolate Caramel Crunch and Peanut Butter Crunch.
Soy bar manufacturer GeniSoy Fairfield, CA, has released a new product to the market called the SoyNutty!™ Bar, which is made from dry-toasted soy nuts and chocolate. Each bar contains 12 grams of soy protein and 25% of the daily value of essential vitamins and minerals.
Dr. Soy Nutrition this month launched three new bars targeted toward the entire family. Dr. Babaknia commented, "We are going to produce bars that mothers can give to their children that have added nutritional value and are good tasting at the same time." The bars contain 100% of the daily value of 16 vitamins and minerals, 35% of the RDA for calcium and 11 grams of soy protein and will be positioned as a snack food for children to include in school lunches. To further the effort, Dr. Babaknia said the company is creating a program for schools in California to incorporate Dr. Soy bars into school lunches with hopes of launching a program nationally. The idea behind this comes as a result of a March 2000 announcement by the USDA, which said that soy protein could replace meat in school lunches. Also in the product pipeline are three new flavors to be added the original line of bars including Iced Oatmeal Cookie, Cool Chocolate Mint and Chocolate Chip Cookie Dough.
Premier Nutrition has a broad range of protein bars that includes the Premier Protein™, Premier Eight™ and Premier Elite® lines. Recently the company added Chocolate Coconut to its Premier Eight line. The bar contains three grams of carbohydrates and 30 grams of protein and one gram of sugar. Ms. Whitney said, "The sugar is very important because a lot of people are diabetic and are watching their sugar intake. With this bar Premier is still targeting the sports bar market but with the idea of weight loss behind it."
Universal Nutrition has extended its bar offerings to include the Doctor's Diet LowCarb Bar, which comes in Chocolate Brownie, Chocolate Mint, S'mores, Chocolate Peanut Butter, Banana Nut Cake and Raspberry Chocolate Truffle flavors. The bars contain 2.6 grams of carbohydrates with no aspartame, sucralose or other artificial sweeteners and 19 grams of soy protein. In other new product news, the company has added a Chocolate Brownie flavor to its Hi Protein bar line up.
On the corporate front, Universal Nutrition recently opened a new sales and warehousing facility in Moerdijk, The Netherlands, to better service its distribution network throughout Europe. The new 10,000 square foot facility will stock all of Universal Nutrition's more than 350 products.
At Cooke Pharma these days Ms. Walley said that the company is looking to extend the base of its patented HeartBar. She said, "Currently our bars are a regimen for individuals ages 55 and older. People have to eat at least two a day to receive the benefits. We are now looking to expand our target market to include those individuals 40 years old and older and those who are at risk for heart disease."
In terms of new product introductions, according to Ms. Walley, the first quarter of 2001 will bring new bars with reduced calories and a better flavor profile. Most recently Cooke Pharma extended its flavor offerings of the HeartBar to include Peanut Butter. Globally the company is looking at expansion and to license its technology to the functional food category. In other news, the company has launched a beverage version of the HeartBar.
At Twinlab new formulations abound. Recently, the company debuted Soy Sensations™, which is available in Lemon Cake, Crunchy Peanut and Chocolate Fondue and contains 15 grams of soy protein. Discussing the bars, Ms. Whitaker said, "We wanted a bar that talked about soy in a fun way but also communicated the benefits as well." In terms of the well-established Ironman® bar, Twinlab has brought forth a new package and has also added two new flavors, Chocolate Mint and Carrot Cake.
Within Twinlab's Fuel line, Protein Fuel has been added. The bar is bigger than most of the bars offered by Twinlab and is geared toward "hardcore" athletes, providing 35 grams of protein in an 81 1/2 gram bar. The big thing about the bar, said Ms. Whitaker, is the 3:1 ratio of protein to carbohydrates. As for new bar introductions, the company has unveiled Metabolift®, which is a thermogenic bar targeted toward weight loss, available in Chocolate Coconut, Lemon Delite, Chocolate Mint and Chocolate Fudge Cake flavors. The bar is high in fiber and protein, low in carbohydrates and contains ma huang, ginseng, green tea extract, guarana seed extract, ginger root and caffeine.
All Terrain Foods markets a line of four energy bars including the Zuma Bar, Tahoe Bar, Berkeley Bar and Maui Bar. All of the bars are oven baked and contain a high amount of carbohydrates and grains. The point of difference of the bars, according to Ms. Howe, is the fact that they can withstand high and low temperatures. As for the target audience, Ms. Howe said, "Our bars are for people who are constantly active and need continuous energy." In addition she said the bars are super premium priced and therefore exist in niche markets more than mass markets.
For the Atkins' Center, New York, NY, the most recent introduction to the bar category is its breakfast bars. Atkins Breakfast Bars contain 14 grams of protein, only non-hydrogenated fat, fruits and nuts, all natural flavors and colors and are fortified with over 20 vitamins and minerals with no added sugar. The bars are available in three flavors, Cherry Almond Danish, Lemon Poppy Seed Muffin and Blueberry Pancake.
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