Plant sterols: Consumer attitudes and preferences. Dr. Athanasios Krystallis Associate Professor, MAPP
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1 Plant sterols: Consumer attitudes and preferences Dr. Athanasios Krystallis Associate Professor, MAPP
2 Plant sterol (PS) food products Overview Products which lower cholesterol by inhibiting cholesterol absorption. They are relatively new Commercially available in Finland since 1995 Not rolled-out internationally until 1999, when Benecol and Pro-Activ spreads launched Initially shown good growth, aided by effective marketing and consumer concern over heart health PS products remain a niche, due to the relatively narrow focus on a medical complain and on a restricted consumer base
3 Sales value by functionality type, % (source: adapted from Euromonitor data, 2004) ,1 5 2,1 0 For sports or energy Lowers cholesterol Promotes intestinal health and/or digestion Added calcium Added vitamins, mineral or supplements Other NOTE: forecast value for 2008
4 World PS market Main market characteristics: Functional food and beverages (FFB) is a dynamic market: +40% in value sales between (Euromonitor, 04, 2008 value sales forecasted) PS belong to the cholesterol-lowering functional area, which constitutes a key growth area in the wider category PS-based FFB are mainly dairy (and fat) spreads Main market for plant sterol spreads is W. Europe
5 Plant sterol products per country, 2008 (source: adapted from Mintel, 2008) PS products in 10 main markets Dairy Snacks Bakery Sugar & Gum Confectionery Chocolate Confectionery Desserts & Ice Cream Side Dishes Sauces & Seasonings Breakfast Cereals Processed Fish, Meat & Egg Products USA Italy Finland UK Netherlands Germany France Russia Japan Ireland
6 Plant sterol product launches per country, total 2002-October 08 (source: adapted from Mintel, 2008) 546 PS products in 37 countries Argentina Australia Austria Belgium Canada Chile China Czech Republic Denmark Finland France Germany Greece Hong Kong Hungary India Ireland Italy Japan Malaysia Mexico Netherlands New Zealand Norway Philippines Poland Portugal Russia South Africa Spain Sweden Switzerland Taiwan Turkey UK USA Vietnam
7 Trend of plant sterol product launches per category and year, 2002-October 08 (source: adapted from Mintel, 2008) PS products in 16 categories Baby Food Bakery Breakfast Cereals Chocolate Confectionery Dairy Desserts & Ice Cream Fruit & Vegetables Meals & Meal Centers 60 Processed Fish, Meat & Egg Products 56 Sauces & Seasonings Savoury Spreads Side Dishes Snacks 40 Soup Sugar & Gum Confectionery Sweeteners & Sugar 26 Total Sample
8 Key-players: PS food producing companies: Unilever Group (spreads), but just over 1.5% of all FFB market value share (Euromonitor) Kao Corp. (PS oils), and Raisio Group (specialists in PSs) Danone Group (PS dairy) PS ingredient companies: Raisio (Benecol) ADM (Archer Daniels Midland) supplier of many functional ingredients including PSs (believed to be supplier of Unilever) Forbes Medi-Tech leader player in PSs (Reducol, approved GRAS status in 2000) Teriaka (Diminicol)
9 Key strategies: Successful PS products tend to have a fairly mainstream positioning. Marketed through mass-market channels (e.g. 5% of launches under private labels, Mintel, 2008) Produced by well-known food companies Or being extensions of well-known brands However, PS success came with some penalties: PS spreads were initially priced at a premium of around 5-times the standard price (!) Initial too narrow focus on only people who suffer from high cholesterol levels
10 Becel Pro-Activ family sales value, top-5 EU and US markets 2-year period after launch (index numbers, 100=month 1) (source: adapted from Mintel, 2008) 800,00% Inde x sales value (100 = sales value 1 quad week from launch) 700,00% 600,00% 500,00% 400,00% 300,00% 200,00% 100,00% 0,00% Quad weeks (1=launch quad week)
11 Market prospects: PS spreads still have great potential in the US market, where consumers are particularly worried about their cholesterol levels New applications of PS emerge in all markets, slowly substituting the dominance of PS dairy and oils; e.g: Raisio created a range of new foods containing its core ingredient, Benecol, from single-dose bottles ( little bottles ) to chocolates, sausages and pasta dishes US s Minute Maid launched PS orange juice (Euromonitor, 2004) Other PSs: babyfood, lollipops, mayonnaise, biscuits
12 Number of plant sterol product launches in selected categories, October 08 (source: adapted from Mintel, 2008) Baby Food Bakery Sauces & Seasonings Sugar & Gum Confectionery
13
14 Non-spread PS brand names sales value evolution, 2-year period after launch (source: adapted from Mintel, 2008) 5500,00% 5000,00% Index sales value (100 = 1 quad week from launch) 4500,00% 4000,00% 3500,00% 3000,00% 2500,00% 2000,00% 1500,00% 1000,00% 500,00% 0,00% 500,00% Quad weeks (1 = launch quad week) CocoaVia Smart Balance Sultana
15 Operating environment Legislation: Far from harmonious, making international roll-out extremely complex and product launch too costly: Raisio s Benecol spread s plant sterol ester had to be approved as GRAS ( generally regarded as safe ) by FDA before the product could be sold (Euromonitor, 2004) Unilever s Pro-Activ was the first undergone approval under the EU s Novel Food Regulation, after objections by many member states. The EU s Novel Foods Committee requested further clarifications, despite US approval. Pro-Activ finally approved in July 2000 (Euromonitor, 2004) Benecol is finally approved by EFSA (granted article 14- status about disease-reduction claims) only few days ago (3/11) (
16 Business costs for bringing Pro-Activ spread into the market: Activity Cost (Euros M) Research ( ): 15 FTEs 30 Clinical/Safety trials 14 Publications Product Development ( ): 3 FTEs Ingredient development and sourcing; product trials Post Launch Monitoring ( ): 3 FTEs Design, assessment, careline training, market research, reporting Total 19-24
17 Calendar time for bringing Pro-Activ products into the market: Yellow fat spreads Milk/Yoghurt 4 Novel Foods Process Key : Initial Assessment 60 day Assessment Scientific Opinion Standing Committee Total 33 Months 20 Months Launch
18 Danish consumers attitudes and preferences Under the EU FP6 s NOFORISK project (FOOD-CT ), 3 studies undertaken by MAPP in Denmark, focusing among other products to plant sterols: Prior to the launch of the 1 st PS food in Denmark: Study 1: Qualitative consumer survey: in-depth interviews with 25 consumers [June-September 2004] Study 2: Quantitative consumer survey: 943 consumers [August-September 2005] After the launch of the 1 st PS food in Denmark: Study 3: Experiment: 726 consumers [September 2006]
19 STUDY 1 Consumer mental model for phytosterols (source: NOFORISK Deliverable 31, 2004, MAPP)
20 Lessons drawn from the consumer study 1 Consumers voiced little concern about PS-based novel foods On average they raised just 1-2 risks or benefits Issues raised were biased towards benefits Risks and benefits of PS foods are not something Danish consumers are very concerned about in their daily lives This holds for other novel foods, even for GM ones, although perceived as more problematic
21 Neutral strength STUDY 2 Consumer belief strengths, 1=strongly disagree, 7=strongly agree (source: NOFORISK Deliverable 33, 2006, MAPP)
22 Consumer preferences for information delivery channel (source: NOFORISK Deliverable 33, 2006, MAPP)
23 STUDY 3 On the previous screens, we have shown you three milk brands. Which of them are you most likely to buy? To make your choice, click on the I choose this product button below the product. Then, click continue. Choice screen layout (source: NOFORISK Deliverable 34, 2007, MAPP)
24 Imagine you are in your usual supermarket. The product you see below is the third of three milk brands on the shelf. If you want to see more details about the product, just move the mouse over the package, and the section you are pointing at will appear in higher resolution. If you don't want to know more about the product, click "continue". Product presentation, plant sterols milk (source: NOFORISK Deliverable 34, 2007, MAPP)
25 Percentage distribution of information details inspected on the front and the back package (source: NOFORISK Deliverable 34, 2007, MAPP)
26 Percentage of consumers who attended to health-related information (source: NOFORISK Deliverable 34, 2007, MAPP)
27 Lessons drawn from the consumer studies 2 & 3 Study 2: Specific beliefs about particular aspects of PS foods do not exist in most consumers, at least apart from consumers general evaluation schemes (e.g. heuristics) Not surprising, given the absence of specific experiences with or knowledge about those products Study 3: But even after launch of the 1 st PS product, most consumers are not in any way personally interested in information about the risks and benefits of these foods Same results with or without clearly indicated price For the minority that inquired information, the likelihood to choose the PS milk over conventional or organic is higher, However, this likelihood is not related to the type of information inquired Meaning that any inquisition is done out of curiosity
28 Overall conclusion At the world FFB market level, the PS category has substantial growth potential, when PS products target wider audiences ( liferelated rather than death-related products) when PS benefit embodied in larger variety of carriers In Denmark, the PS category is surrounded with lack of personal relevance and indifference, despite the rather positive associations developed in consumers perceptions Unwise communication (e.g. trying blatantly to convince about benefits) is likely to yield boomerang effects i.e. if communication messages contradict preexisting consumer attitudes towards technology Behavioural avoidance reaction and lost of trust in the communication source Awakening up dormant risk associations must be avoided!
29 For more information: Dr. Athanasios Krystallis ASB/MAPP homepage: Tel:
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