Weighing The New Building Blocks

hen the U.S. Department of Agriculture unveiled its new food pyramid last month, proponents hailed the move as a positive step toward public education while skeptics scoffed at the indifference of American consumers to government-sanctioned nutritional advice. Yet the recent changes in dietary guidelines are just the latest chapter in the nation's ongoing love/hate relationship with food. Once again, consumers, marketers and nutrition experts find themselves at odds over what constitutes a healthy balanced diet.

There's a lot at stake in the debate. A large segment of the food industry is trying to recover from the negative impact of the low-carb trend, which has ebbed, and believes it has found an answer in whole grains. Prior to the USDA's January announcement, which increased the recommended daily allowance of whole grain foods from two to three servings, marketers rushed to roll out reformulated versions of staples such as cereals, breads, frozen entrees and fiber-rich yogurt.

Based on some predictions, it was a smart move. The U.S. whole grain food market in 2004 stood at $4.79 billion, up from $4.75 billion in 2000. However, research firm Packaged Facts, New York, projects the category's sales will jump to $7.5 billion by 2009.

The new guidelines also recommended higher intake of dairy products and healthy oils found in foods such as nuts, as well as more fruits and vegetables. These categories are all seeking ways to leverage the new information (see related story, page 26).

Recent history suggests that dieting trends can quickly become fads, especially when a single ingredient (such as oat bran or the low-fat substitute Olestra) is hailed as a panacea. Whether whole grains will remain a lasting and viable alternative is unclear, though some health experts point to their established nutritional benefits as cause for optimism.

"Low-carb diets were unrealistic. They wiped out half of what we eat, and that is not doable in the long run," said Glenn Gaesser, professor of exercise physiology at the University of Virginia. "Consumers won't think of whole grain as the next magic bullet because it is based on rock-solid scientific evidence."

"Diets like low-fat, low-carb come and go. But whole grains are here to stay," added K. Dun Gifford, president of Oldway Preservation Trust, Boston, the think tank that created the Mediterranean diet.

Even as the restrictive Atkins approach has given way to more moderate regimens like the South Beach diet—Kraft Foods in January introduced a line of new products under the label—several starch-related categories are still showing negative effects of the low-carb craze, which peaked in 2003-04. Sales during the last year or so were down significantly at many of the top pasta, cookie and granola bar brands, for example, according to IRI data.

Shifting mores about dieting means that many new low-carb products—3,730 in the last two years, according to Productscan Online—are languishing on shelves. That has resulted in several discontinued brands and even forced some carb-substitute food companies, such as New Jersey-based Keto Foods, to go out of business.

Many see the fallout as a symptom of the industry catering to consumers' unhealthy attitudes toward weight management, at a time when nearly a third of all U.S. adults are considered obese. A recent study by the Centers for Disease Control and Prevention caused a stir when it found that people who are modestly overweight had a lower risk of death than those at normal levels. Still, observers argue that food marketers need a new paradigm.

"They have to get serious about it and start updating their marketing practices," said Bob Goldin, an analyst with Technomic, Chicago. "It's just not enough to slap a label on a food product . . . They should be advocating more baking or grilling, less processed foods, limiting use of sugar and salt, and more exercise."

Nick Hahn, managing director of branding firm Vivaldi Partners, New York, agreed. "They need to address Americans' 'quick-fix' mentality," he said. "Consumers tend not to worry about weight gain because they assume they will lose it with the next fad diet."



Is MyPyramid Anyone's Pyramid?

The USDA's new customizable food pyramid marks the most significant overhaul of the guide since its introduction in 1992. Gone is the previous building block structure. Instead, five color-coded vertical stripes—representing the food groups grains, vegetables, fruits, milk and beans—are featured alongside a running man icon indicating the importance of supplementing diet with physical activity. MyPramid.gov requires Internet users to input their age, gender and activity levels to obtain specific daily recommendations of food amounts.

While most of the populace is aware of the pyramid, a 2000 Gallup poll determined only 10% of Americans actually follow its advice. A recent NDP study found only one-third of U.S. adults knew about the guidelines contained in MyPyramid, whose online component has drawn criticism for alienating minority groups and consumers from lower education levels.

Thus, it might be asked, why are food companies riding so heavily on the government's coattails? In mature categories like cereal, the answer may simply be they have nothing to lose.

Prudential Securities analyst John McMillin sees little downside, for example, in General Mills' conversion of its portfolio to whole grains. At the same time, he does not believe the reformulated products will catapult Big G or the industry to serious growth. "There's a bit of an opportunity here that may [generate] an uptick in sales," he said. "It all depends on how consumers buy into their messaging."

Other analysts point to the questionable impact of the dietary guidelines on consumers' lives, arguing that Americans don't like to be told by the government what to eat. "[Marketers] need to do a lot of communicating without adding to the clutter of health messages," said Jack Trout, founder of a namesake consultancy in Greenwich, Conn. "You can't differentiate your brand on whole grain alone."

Of course, there are also those who doubt the government's motives. Margo Wootan, nutrition policy director at the Center for Science in the Public Interest in Washington, said that while the dietary guidelines were the strongest ever, they fall short on several counts. "The USDA seems to have bent over backwards to avoid upsetting any particular commodity group or food company by not showing any foods that Americans should eat less of."

Marion Nestle, professor of food studies and public health at New York University, asserted the new pyramid "takes the food industry off the hook" for its role in the obesity problem.



Waves of Whole Grain:

The Cereal Test

Whether society's overconsumption is perpetuated by marketing or is more a matter of individual responsibility is an issue of ongoing debate. But the facts about nutrition are clear: Most adults are barely consuming one serving of whole grain or fiber a day; for kids, it's even less. Which is why many companies are clinging to the health benefits of whole grains, whose seeds are rich sources of vitamin B, fiber, protein and minerals, and help stem maladies such as heart disease, diabetes and cancer.

Most Americans get their whole grains and fiber at the breakfast table, usually from cereals, which translates into a big opportunity for the industry. General Mills was first at the gate with its many new whole grain products, which began selling in January. Rivals Kraft and Kellogg similarly repositioned, though on a lesser scale. Kraft emphasized the whole grain content of its existing cereals, such as Shredded Wheat and Grape Nuts, while Kellogg played up the whole grain message of Frosted Mini-Wheats and introduced its new Tiger Power cereal.

Big G's sweeping initiative meant revamping some 30 cereals, including Trix and Lucky Charms, backed by an integrated campaign. Ads via Campbell Mithun, Minneapolis, touted health benefits using a newsreel approach. Print ads incorporated real story clips with headlines like, "Studies show whole grain may help manage weight," and "Studies show whole grain is good for the heart." TV spots took the same tack with man-on-the-street interviews and typewriter sounds in the background. Support included milk cartons, radio, online banners and health/professional outreach.

"During our research phase, we learned that America faced a whole grain deficit . . We knew we had to educate consumers," said Tammy Seitel, director of health initiatives at General Mills. Initial results from the efforts were positive: Sales of the new products over the first three months were up 13.5%, per company data.

Kellogg later aimed its advertising squarely at Big G. In a current TV campaign—via Leo Burnett, Chicago—Frosted Mini-Wheats outweighs Honey Nut Cheerios as a narrator bellows its higher whole grain content, with the tag, "Frosted Mini-Wheats is your whole grain heavyweight."

Kraft Post cereals, meanwhile, are promoted in TV and print ads, via Ogilvy & Mather, New York, that splash larger-than-life banners to support venerable brands Shredded Wheat and Grape-Nuts.

"Post Cereals is not a newcomer to the benefits of whole grain," said Mike McGee, Post category business director at Kraft. "[We've] recognized the importance of whole grains for over 100 years."

At www.posthealthyclassics.com, visitors are invited to "lose 10 pounds the heart-healthy way with Post Healthy Classics," and are supplied information on how to manage weight, diabetes and cholesterol. Singer Naomi Judd is featured on the site, urging consumers to make changes in their daily routines with exercise and whole grain foods.

Advocacy groups are also weighing in. In January, the Grain Foods Foundation, whose 90 members include ConAgra, General Mills and Sara Lee, launched a $1.5 million outdoor campaign with six ads—via Mullen, Wenham, Mass.—tagged, "Bread is essential" plastered on subways, gyms, physicians offices and grocers in New York and D.C.

The Whole Grains Council developed three stamps to be displayed on food packages that indicate if the product is an "excellent" (at least 16 grams of whole grain), "100% excellent" (16 grams and no refined grains) or "good" (at least six grams) source of whole grains. More than 20 companies, including Kashi, Arrowhead Mills and Gardenburger, now bear the stamps.

By law, a product may only be labeled "whole grain" if it has at least 51% whole grain ingredients. The rest can be a blend of refined, whole grains and other ingredients. To tout a product as whole grain, there must be at least two grams of fiber per serving. MyPyramid.gov recommends that at least three daily servings of 16 grams each come from whole grains.



The Taste Factor:

Pizza, Muffins and More

Convincing consumers of the health advantages of whole grains is one thing. Overcoming their unappetizing image is another. As new new technologies emerge, food companies like General Mills, Con-

Agra, Sara Lee, Pepperidge Farm and Kellogg have begun to develop whole grain products that purportedly have the same smooth texture, taste and ease of preparation as those made with refined flour.

"Consumers want healthy options but won't sacrifice on taste," said David Jacobs, epidemiology professor at the University of Minnesota. "If we can provide the health benefits of whole grain along with great taste, then that should go a long way."

One problem is that whole grain does not lend itself to some cooking applications, including baking. ConAgra, however, thinks it has found a solution. Last year the company launched Ultragrain, a whole wheat substitute which the company says combines the nutritional benefits of whole grains with the smooth texture, taste and baking-friendly qualities of regular flour.

"Many folks avoid whole grains due to unpleasant texture and bitter taste," said Don Brown, vp-marketing at ConAgra's milled ingredients unit. "Now we have an opportunity to offer other marketers, food service operators and other customers whole grain goodness that feels like refined flour."

Like the popular sugar substitute Splenda, ConAgra is looking to brand its Ultragrain ingredient as a viable whole wheat alternative and market it to the food industry. The company tested a frozen pizza item (initially dubbed The Max) that will launch in several school districts on the East and West coasts in September, with education administrators seeking healthier lunch options. "When we tested the pizzas with kids, they loved it, so there's a big back-to-school push in September," said Brown.

Sara Lee and Pepperidge Farm also recently launched whole grain bagels, breads and muffins. The two brands already possessed a number of whole grain options, but are ramping up marketing efforts behind the new products and bowing additional SKUs. According to the company, Sara Lee's Heart-Healthy and Delightful whole grain brands are enjoying brisk sales, up a combined 18% to $84.7 million for the 12 weeks ending March 20.

"We let taste drive our whole grain breads," said Peter Reiner, svp-marketing/R&D at Sara Lee. "Wellness is not a fad. Diets come and go, but people are becoming more health-conscious."

Pepperidge Farm's animated commercial (via Young and Rubicam, New York) borrows from General Mills' newsy format. The spot shows a man reading a broadsheet headlined, "Health benefits of whole grain revealed." Print ads similarly tout bread's heart-healthy aspects.

In other categories, ConAgra bolstered its marketing to remind consumers that its Orville Redenbacher Smart-Pop! popcorn is made from whole grains, a fact tagged on-pack and in a current ad effort that touts "a great source of whole grain."

The number of frozen entrees made from whole grains is also expected to increase. Last December, Nestlé launched Lean Cuisine's Spa Cuisine, an eight-SKU line of entrees featuring whole grain pasta, brown/wild rice rice with lean protein and vegetables. Print ads take a lighthearted jab at low-carb lovers. Headline reads: "Fuddy-duddy whole grains get a spa makeover." Below, the copy says, "It turns out the oatmeal guys were right . . . So put away the bunless bacon cheeseburger and start enjoying the foods you love again."

Also entering the segment are Barilla Plus Multigrain pastas and Healthy Harvest from New World Pasta. Barilla Plus, the first whole grain pasta with omega-3 fatty acids, arrived in February with a $10 million print campaign, via Y&R, Chicago, focusing on taste and health benefits. Barilla maintained robust sales atop the pasta category as it continued to advertise during the low-carb phase, while other brands retrenched. Barilla sales are up a robust 6.7% to $192 million for the year ending Feb. 20, per IRI.

"We are targeting health-conscious people who love the indulgence of pasta but want a more fiber-rich option that delivers functional benefits but tastes good," said Sergio Pereira, vp-marketing at Barilla. "It took a long time to formulate Barilla Plus because, unlike other foods, people are very demanding about how their pasta tastes."

According to a study published by Packaged Facts, the recent changes in the food pyramid may translate into "a time of dramatic change for the Italian food market. This is expected to bolster consumer demand for healthier whole grain pasta in the future despite lingering low-carb fears." Currently, whole grain pastas account for less than 5% of total category sales, per the study.

As the whole grain push continues to span new categories, marketers will face the question: Is this a magic bullet or a mainstay? Analysts say it's up to brands themselves to keep momentum going.

"It's a big undertaking to change people's eating habits, [whether you're] marketers or the government," said Technomic's Goldin. "Marketers have to look at the nutrition/health equation with fresh holistic eyes and a willingness to drop the tried-and-true." B

Grain marketers are not the only ones who stand to benefit from the new USDA guidelines. The food pyramid also increased recommended daily servings of fat-free or low-fat dairy (milk, yogurt, cheese) from two to three cups. In fruits/veggies, the previous "five-a-day" slogan is now nine servings. Consumers are told to stay away from saturated fats and trans fats, but are reminded not all fats are bad. Some marketing highlights from the winners:



Dairy: Dairy Management Inc., Rosemont, Ill., the marketing arm for America's dairy farmers, early last year launched a $50 million marketing blitz dubbed "3-A-Day of Dairy." Said Kevin Burkum, svp-retail at DMI: "We're telling moms at several touchpoints that it's easy to just remember the number 3." The campaign, via DDB, Chicago, will run throughout the year.

Dannon recently rolled out a Light 'n Fit with Fiber yogurt touted in print ads as, "So smooth and creamy, you might forget it's fiber." New studies show "dairy products can also aid in weight loss as part of a reduced-calorie diet," said Heidi Dvorkin-Krauss, senior marketing director at Dannon. "That said, the new guidelines' emphasis on calcium is certainly a benefit for our brand."



Fats: The pyramid suggests curtailing "bad" fats in favor of good ones. Total fat intake should be between 20-35% of calories, with most coming from polyunsaturated and monounsaturated fatty acids such as fish, nuts and vegetable oils.

The guidelines specifically cite walnuts as packing the most omega-3s. Diamond of California and its Emerald of California snack brand ramped up its marketing via its "Good News for Health Nuts" downloadable brochure on diamondnuts.com/emeraldnuts.com, and in-store displays and packaging. Additionally, the National Fisheries Institute is launching a heavy pr push to tout seafood's benefits.



Fruits/Veggies: With a higher recommended veggie intake, potato growers in Idaho are hoping to regain the spud's former glory. The Idaho Potato Commission hopes to bolster its much maligned image (thanks to low-carb) by touting health benefits such as high fiber and potassium in TV spots featuring fitness guru Denise Austin.

Did someone say produce? FreshDirect, the Long Island City, N.Y.-based online grocery retailer, is thrilled that the guidelines specifically recommend an abundance of green and orange fruits and veggies. Its Web site contains a page entitled "Green & Orange is good for you." Other retailers are jumping in. Waldbaum's and Stop & Shop plan to use in-store signage and ad circulars highlighting items and categories for a healthy lifestyle. At Wild Oats, a comprehensive educational push is underway via brochures, banners, displays. Shelf-talkers will highlight foods most recommended by the USDA. —S.R.