• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Exclusives
    • Nutraceuticals
    • Markets
    • Health
    • Jobs
    • Events
    • Buyers' Guide
    • Showcases
    • More
  • Magazine
  • News
  • Exclusives
  • Nutraceuticals
  • Markets
  • Health
  • Jobs
  • Events
  • Buyers' Guide
  • Showcases
  • Current & Past Issues
    Features
    Columns
    Editorials
    Digital Edition
    Subscribe Now
    Advertise Now
    eNewsletter
    Editorial Guidelines
    Top Features
    Nutraceuticals for Men: Muscle Health and Performance Nutrition

    Aging in Place: Healthy Lifestyles Supplement Science-Based Solutions

    Getting an Edge in Esports: Meeting the Health Needs of Competitive Gamers

    Beyond CBD: Cannabis Compounds Warrant Recognition and More Research

    Leveling Out the Energy Segment for Mainstream, and Rethinking Caffeine
    Breaking News
    Certifications, Approvals and Patents
    Exclusives
    Industry & Market News
    People
    Products
    Regulatory
    Research
    Supplier News
    Supplier Insights
    Live From Shows
    Top News
    Nootropics and Adaptogens Respond to Demand for Mind and Mood Support

    Sabinsa Honors 70th Anniversary of Diplomacy Between India and Japan

    Solvay Invests in Suanfarma’s Vanillin Production

    GNC Adds Products from The Honest Company, Hers, and Womaness

    NSF and SCNM’s School of Nutrition Collaborate on Master of Science Program
    Exclusives
    Blogs & Guest Articles
    Health E-Insights
    Area Code 420
    eBook
    Antioxidants
    Dairy-Based Ingredients
    Enzymes
    Fatty Acids
    Fiber & Carbohydrates
    Green Foods
    Herbs & Botanicals
    Marine Nutraceuticals
    Minerals
    Omega 3s
    Probiotics & Prebiotics
    Proteins, Peptides, Amino Acids
    Sweeteners
    Vitamins

    Nootropics and Adaptogens Respond to Demand for Mind and Mood Support

    Sabinsa Honors 70th Anniversary of Diplomacy Between India and Japan

    Solvay Invests in Suanfarma’s Vanillin Production

    Tocotrienols May Aid Weight Loss and Cognitive Performance, Animal Study Finds

    Leaven Essential to Launch Branded Botanical Extracts to Global Markets
    Consumer Trends
    Contract Manufacturing
    Cosmeceuticals / Nutricosmetics
    Delivery & Dosage Technologies
    Dietary Supplements
    Flavors & Colors
    Functional Foods & Beverages
    Healthcare Trends
    Medical Nutrition
    Mergers & Acquisitions
    Natural/Organic
    Nutrition Bars
    Packaging
    Pet Nutraceuticals
    Quality & Safety
    Regulations
    Research
    Testing
    World Markets

    Nootropics and Adaptogens Respond to Demand for Mind and Mood Support

    Sabinsa Honors 70th Anniversary of Diplomacy Between India and Japan

    Experts Debate Role of Supplements in Improving Public Health in EU

    Solvay Invests in Suanfarma’s Vanillin Production

    GNC Adds Products from The Honest Company, Hers, and Womaness
    Bone & Joint Health
    Cancer Risk
    Cardiovascular Health
    Cognitive Function
    Diabetes & Blood Sugar Management
    Digestive Health
    Energy
    Eye Health
    Healthy Aging
    Immune Function
    Infant & Children's Health
    Inflammation
    Men's Health
    Mood Health & Sleep
    Oral Health
    Sexual & Reproductive Health
    Skin Health
    Sports Nutrition
    Weight Management/Weight Loss
    Women's Health

    Nootropics and Adaptogens Respond to Demand for Mind and Mood Support

    Experts Debate Role of Supplements in Improving Public Health in EU

    GNC Adds Products from The Honest Company, Hers, and Womaness

    Tocotrienols May Aid Weight Loss and Cognitive Performance, Animal Study Finds

    Red Seaweed Digestive Supplement for Cattle Could Reduce Enteric Methane Emissions by 80%
    Industry Events
    Live From Show Events
    Webinars
    All Companies
    Categories
    Trade Associations
    Company Capabilities
    International Buyers Guide Companies
    Aiya America, Inc. (Aiya Matcha)

    Applied Food Sciences, Inc.

    ESHA Research

    Sabinsa Corporation

    PhytoGaia Inc
    Companies
    Product Releases
    News Releases
    Literature / Brochures
    White Papers
    Jobs
    VIdeos
    Services
    Add New Company
    International Buyers Guide Companies
    Aiya America, Inc. (Aiya Matcha)

    Applied Food Sciences, Inc.

    ESHA Research

    Sabinsa Corporation

    PhytoGaia Inc
    • Magazine
      • Current / Back Issue
      • Features
      • Editorial
      • Columns
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Buyers' Guide
      • All Companies
      • Categories
      • Trade Associations
      • Company Capabilities
    • Nutraceuticals
      • Antioxidants
      • Dairy-Based Ingredients
      • Enzymes
      • Fatty Acids
      • Fiber & Carbohydrates
      • Green Foods
      • Herbs & Botanicals
      • Marine Nutraceuticals
      • Minerals
      • Omega 3s
      • Probiotics & Prebiotics
      • Proteins, Peptides, Amino Acids
      • Sweeteners
      • Vitamins
    • Markets
      • Consumer Trends
      • Contract Manufacturing
      • Cosmeceuticals / Nutricosmetics
      • Delivery & Dosage Technologies
      • Dietary Supplements
      • Flavors & Colors
      • Functional Foods & Beverages
      • Healthcare Trends
      • Medical Nutrition
      • Mergers & Acquisitions
      • Natural/Organic
      • Nutrition Bars
      • Packaging
      • Pet Nutraceuticals
      • Quality & Safety
      • Regulations
      • Research
      • Testing
      • World Markets
    • Health
      • Bone & Joint Health
      • Cancer Risk
      • Cardiovascular Health
      • Cognitive Function
      • Diabetes & Blood Sugar Management
      • Digestive Health
      • Energy
      • Eye Health
      • Healthy Aging
      • Immune Function
      • Infant & Children's Health
      • Inflammation
      • Men's Health
      • Mood Health & Sleep
      • Oral Health
      • Sexual & Reproductive Health
      • Skin Health
      • Sports Nutrition
      • Weight Management/Weight Loss
      • Women's Health
    • Online Exclusives
    • Webinars
    • Slideshows
    • Blogs & Guest Articles
    • Health E-Insights
    • Videos
    • Podcasts
    • Infographics
    • eBook
    • Whitepapers
    • Research
      • TrendSense
      • Monograph Center
      • White Papers
      • Research News
    • Jobs
    • Events
      • Industry Events
      • Live From Show Events
      • Webinars
    • Supplier Showcases
      • Companies
      • Product Releases
      • News Releases
      • Literature / Brochures
      • White Papers
      • Jobs
      • VIdeos
      • Services
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Features

    Marketing Nutraceutical: It's All About Profits And Stock Prices!

    Consumer product marketers jockey for position.

    Related CONTENT
    • Red Seaweed Digestive Supplement for Cattle Could Reduce Enteric Methane Emissions by 80%
    • James Roza of Layn Natural Ingredients: Driving the Science and Botanical Innovation
    • Environmental, Social and Governance in the Cannabis Industry: A Perfect Storm is Brewing
    • ADM Invests $300 Million to Expand Soy Protein Production
    • Diana Morgan, Founder of What’s Up With Supps, Leads with Passion and Purpose
    Greg Kitzmiller07.01.00


    Unilever buys Bestfoods in the U.S., which jumps them up to rival Nestl as the world's largest food company. Durk Jager, CEO of Procter and Gamble, resigns with poor financial results. For the world's senior food executives the game is about profitability and buoying stock prices. And that is the exact same recipe that is fueling the investigation and involvement by major food companies into nutraceuticals and functional foods. Let's look at why companies cannot afford to overlook this trend.

    Business is tough and turnover in the top spots seems to reduce the tenure of CEO's to shorter and shorter terms. This is particularly true in the U.S. food business where such firms as Campbell and Kellogg have had changes based on company performance and those management changes impacted those firm's projects. Add Procter and Gamble to the list. After only 18 months Mr. Jager resigned. He had been decisive, tough and had made sweeping changes. What drove the man to resign? Slow growth and poor financial performance. In his own words, "I am proud of the vision we set out to achieve with Organization 2005 and we've made important progress. It's unfortunate our progress in stepping up topline sales growth resulted in earnings disappointments" (P&G press release, June 8, 2000). Many P&G brands reportedly lagged behind other companies' performance and stock prices for P&G have dropped precipitously since the first of this year.

    These are exactly the factors driving the food industry. They center around branding, competitiveness and resulting stock performance. Food companies, many with disappointing financial results, are looking to their future. And some are acquisition targets, while others will likely seek merger possibilities.

    The food business has suffered from slower growth than other industries. It is that slow growth that is transforming firms who are looking for items that will propel their business along. Many firms have sought new products. However, you cannot neglect current brands and efforts to make those current brands grow. The greatest successes in functional foods thus far have been the acceleration of brand growth through health or structure function claims. Tropicana is the prime example of a brand that has become the star of Pepsico, growing the category, increasing share and strengthening an already strong brand. Quaker Oats has grown an old brand into a first-class functional food with a health claim. Ocean Spray has combined good marketing practices of packaging, distribution increases and item proliferation with a strong underpinning using public information about the benefits of cranberry juice and urinary tract health to build their business. Thus, touting the functionality of products for health benefits is giving certain brands new life.

    The other major result in a food industry driven by profits and stock prices is consolidation. Unilever bought BestFoods to increase its stake in the U.S., gain another profitable unit and become an even more important global player. Nabisco will likely be part of another firm by the time the ink is dry on this column. At a recent conference in Italy it was concluded that if you don't have one of the top three positions in an industry you are not likely to have major impact. Unilever wants to assure its spot, either as number one or two. Kraft is now threatened as it falls to number three. Kraft is also the only one of the three firms that has bought two brands in the healthy food/nutraceutical arena but has not yet directly developed new products in food-based nutraceuticals.

    What do nutraceuticals have to do with all of this? Nutraceuticals represent a potential for growth in the food industry. In addition to the examples of food brands that have been strengthened by functionality claims, we can clearly look at the growth in the natural products industry, which has been in the double digits consistently for nearly a decade with increases above 20% for a number of those years. As traditional products from the natural products industry have migrated to mass retailers in both the grocery and drug trades, traditional food manufacturers have been spurred to grab a part of this growth. Those retailers have added products to their assortment that were traditionally sold only in natural products retailers. Why should traditional food manufacturers be missing out?

    In addition to pure product volume increases, most natural products and nutraceuticals provide a real value-added to the consumer, which means they command higher prices and higher margins. Those margins can assist the profitability of traditional food manufacturers.

    Thus, it makes sense for food manufacturers to be entering either nutraceuticals or natural products in some way. The difference between them may be in the degree of long-term potential. Making an orange juice that tastes good and adds to bone health may lead to greater overall market potential than jumping into vegetarian products. Participation in nutraceuticals is less about jumping into a new market and more about increasing sales, share and profitability that will lead to increased stock prices.

    What do we expect? I rarely go out on a limb with predictions as my crystal ball is no better than yours, but we do expect more consolidation in the industry. The top two firms in the global food industry are now European firms. Will number five Danone try to improve their ranking? Or will two of the American giants merge to move further up the ladder? I predict both. Which ends up as number four is not predictable but let's watch for a major U.S. merger while Danone will likely look for some global acquisition target. Danone may be more likely to buy brands than to buy a firm. Each of the major firms will continue to be very active in functional foods and nutraceuticals. Suppliers and packaging firms will play an increased role in helping food firms find a sustainable advantage. Look at the role P&G played in providing the unique calcium found in Tropicana orange juice.

    If we think the food industry has been exciting in the past year, as the song goes, "You ain't seen nothin' yet!" Just keep in mind it's all about getting the growth, the share and a healthy stock price!

    NW

    Greg Kitzmiller is a marketing faculty member at Indiana University's Kelley School of Business, Bloomington, IN. He is also on the Board of Advisors and is part of the faculty for the Johnson Center for Entrepreneurship at Indiana University 's Kelley School of Business. He combines international and domestic strategic and marketing management experience with university teaching, professional speaking, executive education and consulting. Mr. Kitzmiller can be reached at 1309 East Tenth St., Bloomington, IN 46405-1701; 812-855-1004; Fax: 812-855-6440; E-mail: gkitzmil@indiana.edu.
    Related Searches
    • Healthcare Trends
    Related Knowledge Center
    • Healthcare Trends
    Suggested For You
    Red Seaweed Digestive Supplement for Cattle Could Reduce Enteric Methane Emissions by 80% Red Seaweed Digestive Supplement for Cattle Could Reduce Enteric Methane Emissions by 80%
    James Roza of Layn Natural Ingredients: Driving the Science and Botanical Innovation James Roza of Layn Natural Ingredients: Driving the Science and Botanical Innovation
    Environmental, Social and Governance in the Cannabis Industry: A Perfect Storm is Brewing Environmental, Social and Governance in the Cannabis Industry: A Perfect Storm is Brewing
    ADM Invests $300 Million to Expand Soy Protein Production ADM Invests $300 Million to Expand Soy Protein Production
    Diana Morgan, Founder of What’s Up With Supps, Leads with Passion and Purpose  Diana Morgan, Founder of What’s Up With Supps, Leads with Passion and Purpose
    BESO Wellness Taps Tradition to Offer Modern Cannabis Formulations BESO Wellness Taps Tradition to Offer Modern Cannabis Formulations
    Michelle Martin Combines Passion & Purpose as President and COO of Cypress Systems Michelle Martin Combines Passion & Purpose as President and COO of Cypress Systems
    Hello Again Brand Sets to Lift Women’s Health with Cannabis Product Line Hello Again Brand Sets to Lift Women’s Health with Cannabis Product Line
    ‘Mingling Maven’ Susan RoAne Offers Tips for Working the Virtual Meeting Room ‘Mingling Maven’ Susan RoAne Offers Tips for Working the Virtual Meeting Room
    S2G Ventures Discusses 10 Trends in Food and Agriculture Technology S2G Ventures Discusses 10 Trends in Food and Agriculture Technology
    IFIC Predicts Food Trends for 2022 IFIC Predicts Food Trends for 2022
    Sustainable Packaging from Melodea Features Plant-Based Coating Sustainable Packaging from Melodea Features Plant-Based Coating
    Nutiva Launches Purpose-Driven Rebrand with New Logo and Packaging Nutiva Launches Purpose-Driven Rebrand with New Logo and Packaging
    CBD-Infused Beverages Designed to Deliver Flavor and Experience CBD-Infused Beverages Designed to Deliver Flavor and Experience
    An Interview with Hikaru Asari, Senior Executive, J-Oil Mills, Inc. An Interview with Hikaru Asari, Senior Executive, J-Oil Mills, Inc.

    Related Content

    • Breaking News | Energy | Industry & Market News | Marine Nutraceuticals | World Markets
      Red Seaweed Digestive Supplement for Cattle Could Reduce Enteric Methane Emissions by 80%

      Red Seaweed Digestive Supplement for Cattle Could Reduce Enteric Methane Emissions by 80%

      Blue Ocean Barns’ product Brominata has been approved for sale in California.
      05.10.22

    • Antioxidants | Herbs & Botanicals | Research
      James Roza of Layn Natural Ingredients: Driving the Science and Botanical Innovation

      James Roza of Layn Natural Ingredients: Driving the Science and Botanical Innovation

      The chief scientific officer for Layn Natural Ingredients has over 30 years of experience in the natural products and nutraceutical industry.
      By Sheldon Baker, CEO of Baker Dillon Group 05.03.22

    • Dietary Supplements | Healthcare Trends | Herbs & Botanicals | Natural/Organic | Regulations | World Markets
      Environmental, Social and Governance in the Cannabis Industry: A Perfect Storm is Brewing

      Environmental, Social and Governance in the Cannabis Industry: A Perfect Storm is Brewing

      Marc Ross discusses how companies getting in front of ESG are well-positioned to win investors, talent, and customers.
      By Sheldon Baker, CEO Baker Dillon Group LLC 05.03.22


    • Breaking News | Herbs & Botanicals | Proteins, Peptides, Amino Acids | Supplier News
      ADM Invests $300 Million to Expand Soy Protein Production

      ADM Invests $300 Million to Expand Soy Protein Production

      A new Protein Innovation Center is also in development in Decatur, IL, power innovation and speed to market.
      04.14.22

    • Dietary Supplements | Regulations
      Diana Morgan, Founder of What’s Up With Supps, Leads with Passion and Purpose

      Diana Morgan, Founder of What’s Up With Supps, Leads with Passion and Purpose

      New VP of Global Regulatory at Nutrabolt has built a must-attend series of networking events.
      By Sheldon Baker 04.14.22

      Breaking News
      • Nootropics and Adaptogens Respond to Demand for Mind and Mood Support
      • Sabinsa Honors 70th Anniversary of Diplomacy Between India and Japan
      • Solvay Invests in Suanfarma’s Vanillin Production
      • GNC Adds Products from The Honest Company, Hers, and Womaness
      • NSF and SCNM’s School of Nutrition Collaborate on Master of Science Program
      View Breaking News >
      CURRENT ISSUE

      May 2022

      • Aging in Place: Lifestyle Supplements Science-Based Solutions
      • Getting an Edge in Esports: Meeting Health & Nutrition Needs
      • Nutraceuticals for Men: Muscle Health and Performance Nutrition

      Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
      You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

      • About Us
      • Privacy Policy
      • Terms And Conditions
      • Contact Us

      follow us

      Subscribe
      Nutraceuticals World

      Latest Breaking News From Nutraceuticals World

      Nootropics and Adaptogens Respond to Demand for Mind and Mood Support
      Sabinsa Honors 70th Anniversary of Diplomacy Between India and Japan
      Solvay Invests in Suanfarma’s Vanillin Production
      Coatings World

      Latest Breaking News From Coatings World

      DIC’s Indian Subsidiary Begins Construction of Coating Resins Production Facility
      Celanese Declares Force Majeure on Acetyl Chain and Acetate Tow Products
      CPI Announces New Hybrid Professional Development Program for 2022
      Medical Product Outsourcing

      Latest Breaking News From Medical Product Outsourcing

      Linear Health Sciences’ Orchid SRV Receives FDA & Health Canada Approval
      Vivasure Medical Raises $23 Million in Series D Financing Round
      New Patents Add Value to Know Labs' Bio-RFID Tech
      Contract Pharma

      Latest Breaking News From Contract Pharma

      Evotec SE and Sernova Corp Announce Partnership in the Field of Diabetes
      Emergex COVID-19 Vaccine Candidate Successfully Coated onto Zosano Micro-Needle Patch
      Thabor Therapeutics Appoints Jérémie Mariau as CEO
      Beauty Packaging

      Latest Breaking News From Beauty Packaging

      Aveda is Leaping Bunny Approved by Cruelty Free International
      Smashbox Expands Becca Highlighter Collection
      Bite Beauty Is Closing Later This Year
      Happi

      Latest Breaking News From Happi

      Filipino Cosmetics Company Sunnies Face Enters US Market
      Selig Group Names Adam Sheridan Next President
      Nautica Introduces Oceans Pacific Coast Vegan & Sustainable Fine Fragrance Collection
      Ink World

      Latest Breaking News From Ink World

      Nazdar Ink Technologies to Manufacture VFP Ink Technologies Electronic Inks for US
      Sun Chemical Heads to Flexo and Labels 2022
      PETRONAS Chemicals Group to Acquire Perstorp Group
      Label & Narrow Web

      Latest Breaking News From Label & Narrow Web

      Essentra Packaging invests in Landa Nanographic press
      Nazdar to manufacture VFP electronic ink for US Market
      SunDance moves into flexible packaging with HP Indigo
      Nonwovens Industry

      Latest Breaking News From Nonwovens Industry

      H&V Appoints Vice President and General Counsel
      The Honest Company to Sell Diapers, Wipes at Walmart
      Jim Cree Joins Monadnock Nonwovens
      Orthopedic Design & Technology

      Latest Breaking News From Orthopedic Design & Technology

      Paragon 28 Launches Grappler Suture Anchor System
      Paul Stellato Appointed Chief Accounting Officer at Zimmer Biomet
      DuPuy Synthes’ INHANCE Shoulder System Cleared by FDA for Reverse Total Shoulder Arthroplasty
      Printed Electronics Now

      Latest Breaking News From Printed Electronics Now

      Jabil Strengthens Additive Manufacturing Offerings
      Avery Dennison, Wiliot Partner to Build and Scale the Future of IoT
      HP Delivers Enhanced Platform Capabilities to Accelerate Additive Manufacturing Production at Scale

      Copyright © 2022 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

      AD BLOCKER DETECTED

      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker.


      FREE SUBSCRIPTION Already a subscriber? Login