Marie Spano, MS01.01.07
SPINSscan data indicate over $600 million was spent on energy bars this past year, though growth declined slightly compared to the previous year. According to David Browne, vice president, SPINS Product Library, San Francisco, CA, the slight decline in the market is mainly due to major sales decreases in the diet bar segment, most especially low carbohydrate bars. In fact, diet bars are down 19% overall from last year. Despite the slight decline in bar sales, one particular segment within this category has experienced positive growth-lifestyle and wellness bars for general snacking, energy and weight management.
What drives this category? Convenience. Consumers eat bars both for snacks and as meal replacements. In addition, consumers choose functional food bars over granola bars and other portable foods for three main reasons: sustained energy, weight management and heart health benefits.
Most bar consumers are between the ages of 25 and 54, and generate household incomes of $50,000 or more, according to Kerry Ingredients, Beloit, WI (see side bar on pages 34 and 39 featuring highlights from Kerry's 2006 consmer research). A random survey of self-identified bar users found that the two things people look at when shopping for a bar are protein and fiber. Calcium and antioxidants are the next two considerations. Consumers are also likely to look at overall calories, carbohydrates and sugar content. However, they are still not very aware of saturated and trans fats, despite heightened media attention on trans fats thanks to recent research and labeling requirements. However, even the most nutritious bar won't sell well if it doesn't taste good. As Dr. Soy founder Ari Babaknia says, "taste is non-negotiable."
The bar market is indeed saturated. In fact, some retailers are complaining that bars are going stale on the shelves. Many bars only have a shelf life of about six months-one year before they get hard or stale. But with so many different bars stocked, some don't fly out of the store before they go bad.
This mass bar confusion has some companies that established their roots in the natural channel move their products over to the mass market in search of greater sales and exposure. The success associated with this strategy is mixed. As noted by SPINS' Mr. Browne, the typical Wal-Mart and mass grocery store shopper is very price driven and less likely to buy some of the premium products that line the aisles of Whole Foods and Wild Oats-especially without an employee nearby to explain why certain bars cost more money. It's no wonder that sales in the mass market channel (which makes up 80% of all bars sold) are down 3%, whereas the natural channel has enjoyed a 15% increase in growth.
In an effort to meet consumer demand and forecast consumer trends, some companies conduct their own focus groups (Atkins is an example), while others rely on market research information. According to Vanessa Wagar, corporate communications manager for Berkeley, CA-based PowerBar, the latest trends revolve around organic offerings, particularly in the context of whole grains and fiber. She said consumers are also interested in bars that contain no saturated or trans fatty acids.
Beth Neumann, vice president and chief marketing officer, Atkins Nutritionals, Inc., Ronkonkoma, NY, echoed the focus on fiber, while adding that protein is another component that is increasingly being incorporated into bars. Even though low carb isn't in fashion anymore, consumers remain "carb conscious," and they are likely to accept carbs as long as they are good, clean carbs such as fiber and complex carbohydrates as opposed to sugar.
So what can companies expect in the future? Natural and organic products will continue to be "red-hot" growth drivers in conventional channels, along with gluten-free products. According to the Organic Trade Association (OTA), Washington, D.C., 40% of the U.S. population uses at least some organic products and consumption is projected to bring in more than $30 billion by 2007.
Raw is another growing trend and a logical extension from natural and organic products. LARABAR has enjoyed a great deal of success by creating a product that stands out from the sea of other bars. By focusing on simple, raw, fair trade ingredients, this company has successfully differentiated itself from the carbohydrate- and protein-focused crowd.
Riding on 15% growth over the previous year, the natural channel will continue its growth by focusing on its core customer and incorporating unique products. While the conventional channel had a tough time adjusting to the height of the low carb craze, it also was slow to react when the craze went bust. Stores within this category would be wise to follow Wal-Mart's lead and add shelf space for natural and organic products.
According to Jay Jacobson of Optimum Nutrition, Aurora, IL, it is getting harder and harder for companies to differentiate their products. Aside from meeting consumer demand by incorporating fiber and protein into bars, Mr. Jacobson suggested companies work the taste angle by adding numerous layers or toppings. Again, taste is critical, so any bar that is healthy and tastes good will stand out from the crowd.
Atkins Nutritionals. Well-known for its famous namesake and low carbohydrate products, Atkins Nutritionals prides itself on catering to consumers who embrace an overall healthy lifestyle. Through focus groups, the company has discovered that a majority of individuals are interested in products with higher protein and fiber, and lower sugar and calories. Atkins reformulated all of its nutrition bars over the past year to improve the taste. Under the Atkins Advantage Morning line, it has made two introductions, the Peanut Butter Crisp and Oatmeal Raisin bars. At just 140-160 calories, with 10-11 grams of protein and 5-7 grams of fiber, these bars are meant to be eaten as snacks for those watching their calorie intake. And of course, they are low in sugar and contain no potentially stomach-upsetting sugar alcohols.
CLIF BAR. Berkeley, CA-based CLIF Bar recently added a new flavor to its CLIF Nectar line, Cherry Pomegranate. This organic, wheat-free, gluten-free snack bar has just four or five ingredients and two servings of fruit from antioxidant-rich cherries and pomegranates. And of course, per the CLIF BAR line, it contains no trans fats or processed sugars.
Other new introductions include Banana Nut Bread in the CLIF BAR line and Peanut Butter Pretzel in the MOJO Bar line. Made with 70% organic ingredients, this MOJO Bar is filled with roasted whole nuts for heart health, pretzel pieces, and a balance of salty and sweet ingredients.
Dr. Soy. Irvine, CA-based Dr. Soy started out as a company making soy products geared toward women's health. Although it has not introduced any new bars lately, Dr. Soy has reformulated its existing bars to remove all trans fats. It also increased the protein content so that each product has more grams of protein over sugar.
Garden of Life. Garden of Life, West Palm Beach, FL, a company that specializes in whole food nutrition, introduced a new version of its organic Perfect Food Bar, the chocolate-covered greens bar. The all-natural Perfect Food bar is made with 50 organic raw ingredients, including 24 vegetables and probiotics. The bar also contains 6 grams of fiber to support digestive health. Like all other Garden of Life products, the Perfect Food Bar contains no genetically modified ingredients, artificial ingredients or preservatives.
Optimum Nutrition. Optimum Nutrition manufactures its own bars on site. This allows them to run bars in smaller batches and ship them out to stores immediately, which helps keep prices down and ensures maximum freshness. Optimum features higher protein bars for a variety of consumer needs, including new bite-sized bars for portion controlled healthy snacks. The idea behind MOR'SOs, a mini-bar, is that not everyone wants or needs a regular-sized bar all of the time. Each package of MOR'SOs contains 2 bite-sized pieces delivering 20 grams of high-quality protein, 19 vitamins and essential minerals, and a multi-layer composition of tastes and textures. MOR'SOs are available in Chocolate Brownie, Cookies & Crème, and Peanut Butter Supreme flavors.
The company's Lift Bar has a unique, thin look compared to many typically chunky protein bars. Lift Bars contain 20 grams of blended premium proteins to support muscle rebuilding, 33 grams of simple and complex carbohydrates for energy, 16 vitamins and essential minerals, and 3 grams of dietary fiber. Lift Bars are available in Quadruple Chocolate and Peanut Butter Crunch flavors.
Finally, the XXL Bar maintains the appearance of a "man-sized" bar for those trying to bulk up. High in both protein and calories, XXL Bar was designed to help athletes involved in high-intensity sports or those trying to add the size and strength needed to excel at these types of sports. It is also a great diet addition for people trying to gain weight. Each XXL Bar provides over 500 calories, 40 grams of protein, and 70 grams of energy-rich carbohydrates. XXL Bars are available in two varieties, Chocolate Marshmallow (topped with real mini marshmallows) and Chocolate Peanut Butter (topped with mini chocolate chips).
PowerBar. Powerbar, recently introduced Pria Grain Essentials to its calorie-controlled Pria line. Pria Grain Essentials are made with 70% organic ingredients and contain 8 grams of whole grains, made with a blend of inulin (which helps increase satiety) per bar. At just 160-170 calories per bar, Pria Grain Essentials, like the entire Pria line, is made for women. Each bar contains 40% of the DV (daily value) of calcium, 23 vitamins and minerals, 5-6 grams of protein and a maximum of 3.5 total grams of fat. The Pria Essentials line contains no artificial ingredients or coloring and no genetically modified ingredients.
PowerBar Performance also has three new flavors: Carmel Cookie Crunch, Honey Roasted Nut and Milk Chocolate Brownie. This line is made for athletes or those who exercise. With each bar containing 19 vitamins and minerals, 250 calories, 10 grams of protein and 45 grams of carbohydrate, these bars make a perfect post-workout snack.
Attune Wellness. Attune Wellness is a new company that was formed late last year. Its debut product is a line of daily wellness bars, which feature the health benefits of probiotics to support digestive health, provide immune support and heighten overall health and well-being. The company calls on consumers totreat themselves and their bodies right with Attune wellness bars in Chocolate Crisp, Cool Mint, Chocolate or Blueberry Vanilla flavors. These bars provide more than five times the live active cultures in yogurt, with less sugar. The bars also serve as an "excellent source" of calcium and pack only 100 calories.NW
What drives this category? Convenience. Consumers eat bars both for snacks and as meal replacements. In addition, consumers choose functional food bars over granola bars and other portable foods for three main reasons: sustained energy, weight management and heart health benefits.
Most bar consumers are between the ages of 25 and 54, and generate household incomes of $50,000 or more, according to Kerry Ingredients, Beloit, WI (see side bar on pages 34 and 39 featuring highlights from Kerry's 2006 consmer research). A random survey of self-identified bar users found that the two things people look at when shopping for a bar are protein and fiber. Calcium and antioxidants are the next two considerations. Consumers are also likely to look at overall calories, carbohydrates and sugar content. However, they are still not very aware of saturated and trans fats, despite heightened media attention on trans fats thanks to recent research and labeling requirements. However, even the most nutritious bar won't sell well if it doesn't taste good. As Dr. Soy founder Ari Babaknia says, "taste is non-negotiable."
The Marketplace
The bar market is indeed saturated. In fact, some retailers are complaining that bars are going stale on the shelves. Many bars only have a shelf life of about six months-one year before they get hard or stale. But with so many different bars stocked, some don't fly out of the store before they go bad.
This mass bar confusion has some companies that established their roots in the natural channel move their products over to the mass market in search of greater sales and exposure. The success associated with this strategy is mixed. As noted by SPINS' Mr. Browne, the typical Wal-Mart and mass grocery store shopper is very price driven and less likely to buy some of the premium products that line the aisles of Whole Foods and Wild Oats-especially without an employee nearby to explain why certain bars cost more money. It's no wonder that sales in the mass market channel (which makes up 80% of all bars sold) are down 3%, whereas the natural channel has enjoyed a 15% increase in growth.
In an effort to meet consumer demand and forecast consumer trends, some companies conduct their own focus groups (Atkins is an example), while others rely on market research information. According to Vanessa Wagar, corporate communications manager for Berkeley, CA-based PowerBar, the latest trends revolve around organic offerings, particularly in the context of whole grains and fiber. She said consumers are also interested in bars that contain no saturated or trans fatty acids.
Beth Neumann, vice president and chief marketing officer, Atkins Nutritionals, Inc., Ronkonkoma, NY, echoed the focus on fiber, while adding that protein is another component that is increasingly being incorporated into bars. Even though low carb isn't in fashion anymore, consumers remain "carb conscious," and they are likely to accept carbs as long as they are good, clean carbs such as fiber and complex carbohydrates as opposed to sugar.
Breaking the Mold
So what can companies expect in the future? Natural and organic products will continue to be "red-hot" growth drivers in conventional channels, along with gluten-free products. According to the Organic Trade Association (OTA), Washington, D.C., 40% of the U.S. population uses at least some organic products and consumption is projected to bring in more than $30 billion by 2007.
Raw is another growing trend and a logical extension from natural and organic products. LARABAR has enjoyed a great deal of success by creating a product that stands out from the sea of other bars. By focusing on simple, raw, fair trade ingredients, this company has successfully differentiated itself from the carbohydrate- and protein-focused crowd.
Riding on 15% growth over the previous year, the natural channel will continue its growth by focusing on its core customer and incorporating unique products. While the conventional channel had a tough time adjusting to the height of the low carb craze, it also was slow to react when the craze went bust. Stores within this category would be wise to follow Wal-Mart's lead and add shelf space for natural and organic products.
According to Jay Jacobson of Optimum Nutrition, Aurora, IL, it is getting harder and harder for companies to differentiate their products. Aside from meeting consumer demand by incorporating fiber and protein into bars, Mr. Jacobson suggested companies work the taste angle by adding numerous layers or toppings. Again, taste is critical, so any bar that is healthy and tastes good will stand out from the crowd.
The Latest Bar Introductions
Atkins Nutritionals. Well-known for its famous namesake and low carbohydrate products, Atkins Nutritionals prides itself on catering to consumers who embrace an overall healthy lifestyle. Through focus groups, the company has discovered that a majority of individuals are interested in products with higher protein and fiber, and lower sugar and calories. Atkins reformulated all of its nutrition bars over the past year to improve the taste. Under the Atkins Advantage Morning line, it has made two introductions, the Peanut Butter Crisp and Oatmeal Raisin bars. At just 140-160 calories, with 10-11 grams of protein and 5-7 grams of fiber, these bars are meant to be eaten as snacks for those watching their calorie intake. And of course, they are low in sugar and contain no potentially stomach-upsetting sugar alcohols.
CLIF BAR. Berkeley, CA-based CLIF Bar recently added a new flavor to its CLIF Nectar line, Cherry Pomegranate. This organic, wheat-free, gluten-free snack bar has just four or five ingredients and two servings of fruit from antioxidant-rich cherries and pomegranates. And of course, per the CLIF BAR line, it contains no trans fats or processed sugars.
Other new introductions include Banana Nut Bread in the CLIF BAR line and Peanut Butter Pretzel in the MOJO Bar line. Made with 70% organic ingredients, this MOJO Bar is filled with roasted whole nuts for heart health, pretzel pieces, and a balance of salty and sweet ingredients.
Dr. Soy. Irvine, CA-based Dr. Soy started out as a company making soy products geared toward women's health. Although it has not introduced any new bars lately, Dr. Soy has reformulated its existing bars to remove all trans fats. It also increased the protein content so that each product has more grams of protein over sugar.
Garden of Life. Garden of Life, West Palm Beach, FL, a company that specializes in whole food nutrition, introduced a new version of its organic Perfect Food Bar, the chocolate-covered greens bar. The all-natural Perfect Food bar is made with 50 organic raw ingredients, including 24 vegetables and probiotics. The bar also contains 6 grams of fiber to support digestive health. Like all other Garden of Life products, the Perfect Food Bar contains no genetically modified ingredients, artificial ingredients or preservatives.
Optimum Nutrition. Optimum Nutrition manufactures its own bars on site. This allows them to run bars in smaller batches and ship them out to stores immediately, which helps keep prices down and ensures maximum freshness. Optimum features higher protein bars for a variety of consumer needs, including new bite-sized bars for portion controlled healthy snacks. The idea behind MOR'SOs, a mini-bar, is that not everyone wants or needs a regular-sized bar all of the time. Each package of MOR'SOs contains 2 bite-sized pieces delivering 20 grams of high-quality protein, 19 vitamins and essential minerals, and a multi-layer composition of tastes and textures. MOR'SOs are available in Chocolate Brownie, Cookies & Crème, and Peanut Butter Supreme flavors.
The company's Lift Bar has a unique, thin look compared to many typically chunky protein bars. Lift Bars contain 20 grams of blended premium proteins to support muscle rebuilding, 33 grams of simple and complex carbohydrates for energy, 16 vitamins and essential minerals, and 3 grams of dietary fiber. Lift Bars are available in Quadruple Chocolate and Peanut Butter Crunch flavors.
Finally, the XXL Bar maintains the appearance of a "man-sized" bar for those trying to bulk up. High in both protein and calories, XXL Bar was designed to help athletes involved in high-intensity sports or those trying to add the size and strength needed to excel at these types of sports. It is also a great diet addition for people trying to gain weight. Each XXL Bar provides over 500 calories, 40 grams of protein, and 70 grams of energy-rich carbohydrates. XXL Bars are available in two varieties, Chocolate Marshmallow (topped with real mini marshmallows) and Chocolate Peanut Butter (topped with mini chocolate chips).
PowerBar. Powerbar, recently introduced Pria Grain Essentials to its calorie-controlled Pria line. Pria Grain Essentials are made with 70% organic ingredients and contain 8 grams of whole grains, made with a blend of inulin (which helps increase satiety) per bar. At just 160-170 calories per bar, Pria Grain Essentials, like the entire Pria line, is made for women. Each bar contains 40% of the DV (daily value) of calcium, 23 vitamins and minerals, 5-6 grams of protein and a maximum of 3.5 total grams of fat. The Pria Essentials line contains no artificial ingredients or coloring and no genetically modified ingredients.
PowerBar Performance also has three new flavors: Carmel Cookie Crunch, Honey Roasted Nut and Milk Chocolate Brownie. This line is made for athletes or those who exercise. With each bar containing 19 vitamins and minerals, 250 calories, 10 grams of protein and 45 grams of carbohydrate, these bars make a perfect post-workout snack.
Attune Wellness. Attune Wellness is a new company that was formed late last year. Its debut product is a line of daily wellness bars, which feature the health benefits of probiotics to support digestive health, provide immune support and heighten overall health and well-being. The company calls on consumers totreat themselves and their bodies right with Attune wellness bars in Chocolate Crisp, Cool Mint, Chocolate or Blueberry Vanilla flavors. These bars provide more than five times the live active cultures in yogurt, with less sugar. The bars also serve as an "excellent source" of calcium and pack only 100 calories.NW
