Functional Food Growth Slows

To some extent, the numbers reflect category maturation after an extended period of accelerated growth. Sales of the largest functional categories grew at a compound annual rate of 8% between 2003 and 2008 in retail outlets tracked by Information Resources Inc. (IRI), points out PF's "Functional Foods and Beverages in the U.S."

The slowdown also reflects consumers' reduced ability to afford non-essential and more costly specialty items, and the impact on specialty item sales of consumers' continuing shift to shopping at Walmart and other discount retailers.

MediaPost

Frito-Lay pitches its Lay's potato chips as locally made

Mass-y mass brand Lay's jumps on the locavore trend:

On Tuesday, Frito-Lay (PEP) will unveil an unlikely marketing strategy for its Lay's brand chips that focuses on the 80 "local" farmers from 27 states who grow the potatoes used to make its chips. In a new world of better-for-you food concerns, it's not about chips being fun to eat. It's about chips being local.

And trackable. A tech toy at Lays.com dubbed Chip Tracker will let folks see where any bag of chips was made. Type in the first three digits of the product code on the bag and your ZIP code and out pops the location of the plant.

USA Today

Study: Organic Products Selling Strong Despite Economy

U.S. sales of organic products, both food and non-food, reached $24.6 billion by the end of 2008, growing 17.1% over 2007 sales, according to the OTA, which released final results from its 2009 Organic Industry Survey on Monday. However, the industry's growth rate last year was its slowest since 2004, when the year-to-year increase was 14.6%. Organic food sales grew 20.9% in 2006 and 18.5% in 2007, according to OTA.

"Organic products represent value to consumers, who have shown continued resilience in seeking out these products," said Christine Bushway, executive director of the Greenfield, Mass.-based OTA, in a statement. "This marks another milestone for the organic food market."

Media Post

Premium Foods, Beverages Redefine Simplicity

"Whereas in the past, more sophisticated foods were complex, time-intensive and somewhat unattainable," today's successful premium-brand positioning stresses "quality, purity, authenticity, superior taste and optimum nutrition and health" within a context of streamlined preparation and attractive presentation, she says. "Our research suggests that brands that celebrate the aesthetic beauty in real ingredients, simple preparation and artful presentation will be aligned with the driving philosophy that good food is eaten fresh and prepared unpretentiously."

Media Post

Ethnic Foods Expand, Organics More Selective

A quick overview of trends from Packaged Facts' "Food Flavors and Ingredients Outlook 2009" report:

The range of available ethnic food varieties is actually expanding at an accelerated pace, reflecting both the growth of ethnic populations and evolving mainstream tastes. World cuisines that are expected to be in increasing demand this year include "rustic French," reflecting consumers' desire for "down-to-earth and comforting qualities," and a wide range of Asian (with Japanese becoming better established and Korean going mainstream). Mediterranean (particularly Spanish) food offerings will become ubiquitous, and the cuisines of Peru, Laos, Algeria, Ethiopia and Somalia will become available in more markets, PF prognosticates.

Full article at MediaPost

2009 Will Be Year Of Comfort Food, Cocktails

Chicago-based market research firm Mintel, which says that 54% of people who dined out regularly were cutting back on restaurant spending because of the economy, argues that the recession could still be a boon for those who know what consumers want. One of those things is comfort food, based on slow baking and grilling. Braising and poaching will become au courant, says the firm.

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