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    Features

    The Next Frontier for Nutrition Bars

    The market continues to hold its own, but falling consumption and product saturation may threaten future growth.

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    Rebecca Wright01.03.11
    While the economy has not been kind to businesses, the nutrition bar market may be an exception. According to Lu Ann Williams, head of research at Netherlands-based Innova Market Insights, the downturn has not had a great impact on global new product launch activity for nutrition bars, with 2010 product launch numbers being similar to that of 2009. “Innovation has also not been stifled, with various ingredient, flavor and format innovations apparent in recent times,” she said.

    “If anything, consumption rates would have increased as consumers are eating out less to save money and nutrition bars offer healthy convenience for multiple consumption occasions,” she added.

    That being said, nutrition bars seem to be struggling with a demographics problem. According to a 2009 “Nutrition & Energy Bars” report from Mintel, Chicago, IL, Hispanics and males with children are two demographics that are avid consumers of nutrition/energy bars. Yet a review of commercial spots and web pages reveals that energy bars are typically marketed to men aged 18-24, and dads are left out, the market research firm claims.

    Mintel’s exclusive research also shows a pronounced link between exercise, performance and purchase. Therefore marketers may want to explore and leverage this finding by creating sport-specific nutrition/energy bars—products customized to improve the performance of the individual based on the activity (i.e., golf, football, baseball, etc.).

    Satiety is another angle bar companies may want to consider. According to a 2010 Gallup study on satiety, more than half (55%) of current dieters/weight managers have heard of or read about specific types of foods/beverages that can help them feel fuller longer. And according to Ms. Williams, the satiety benefit is ripe for growth. “Various manufacturers are using protein and fiber combined in formulations to keep hunger at bay,” she said. “Common claims include ‘to help you stay satisfied’ or ‘keeps you fuller for longer.’ Kashi GoLean Chewy Bars is a current product exemplifying this trend.”

    In a similar vein, Ms. Williams pointed out, “Product launch numbers with a weight management positioning have remained steady over recent years. Ingredients such as CLA (conjugated linoleic acid) may find more nutrition bar applications and this may well be the next trend for weight management.

    “The primary benefit of nutrition bars is the convenience they provide for snacking on-the-go, and for this very reason products that can offer a secondary benefit such as satiety and other weight management attributes are well received by consumers, particularly weight conscious females,” she added.

    Bars that are condition-specific could also be another positioning to exploit. “Marketers may also want to start looking to the Asian functional beverage market for inspiration and direction. Product claims that ameliorate certain common ailments and complaints may be enticing for those purchasing nutrition and energy bars,” Mintel said in its 2009 report. “Anti-aging properties, ingredients to build muscle mass, functional ingredients that improve skin tone or help keep away wrinkles are but a few examples of benefits that can be touted.”

    On the other hand, a return to basics may sell more bars as well, Mintel says. A January 2009 article in The New York Times suggests that fruit and nut bars made from a small number of ingredients and with little processing are generally healthier, and more importantly, may mark the next step in the evolution of the nutrition/energy bar.

    Kerry Watson, Manager, SPINS Product Library, agreed. “Many shoppers today tend to look for healthy options like whole-food-based bars or even raw food varieties,” she said. “Gluten free is another trend that has found it’s way into this category.”

    In terms of ingredient developments, Ms. Watson said prebiotics, probiotics, EFAs (flax, hemp, pumpkin seed) and green foods are the most popular right now. As far as flavors go, she added that chocolate and peanut, both alone and in combination, as well as berries, nuts and seeds are all happily accepted by consumers. She said certain brands have also won consumers with less common flavors, such as coconut, lime, coffee, cinnamon and tropical fruits.

    As far as actual product launches, Tom Vierhile, director—Product Launch Analytics, Datamonitor, Canandaigua, NY, said as of December 6, 2010 there were 526 new SKUs for bars in the market compared to 383 SKUs in 2009. See Table 1, below, for his rundown of the latest trends among bar products.

    The Numbers

    SymphonyIRI Group (Chicago, IL) estimates show that the snack bar/granola bar category brought in a little more than $3 billion in 2010 (Latest 52 Weeks Ending Oct 31, 2010; TOTAL U.S. FDMxC—supermarkets, drugstores, gas/c-stores and mass market retailers, excluding Wal-Mart, club stores and liquor stores). This includes everything from granola bars to cereal bars to nutrition bars. The latter posted $1.13 billion in 2010 (Latest 52 Weeks Ending Oct 31, 2010; TOTAL U.S. FDMxC—supermarkets, drugstores, gas/c-stores and mass market retailers, excluding Wal-Mart, club stores and liquor stores).

    Per SymphonyIRI figures, some of the top performers in the nutrition bar category include: General Mills Fiber One Bars ($156 million); Clif Bar ($112 million); Kellogg’s Special K Protein Bars ($89 million); Zone Perfect ($67 million); and Clif’s Luna Bars ($56 million).

    SPINS data show that “Energy Bars & Gels” brought in $462 million in 2009 between the natural and conventional channels, which had sales of $61 million and $401 million, respectively. Sales growth dipped into the negative in the natural channel (-.5%), while in the conventional channel the category made a modest gain of 4.5%.

    Commenting on the performance of specific bar categories in its latest report, Mintel said diet bars are falling out of favor, wellness bars are on the rise and athletic bars are declining. In actuality, wellness bars are stealing market share from diet bars and athletic bars.

    Based on Mintel figures, the overall nutrition bar market posted $570 million in sales in 2008. Broken down further, the diet category raked in $221 million, the wellness category $240 million and the athletic category $109 million.

    Although diet bars are struggling, Mintel says 33% of consumers eat nutrition/energy bars as an alternative to dieting. To capture these consumers, the market research firm suggested companies position bars as less expensive alternatives to diet plans—an appealing message in a down economy.

    Brands such as Kellogg’s Special K and Zone have survived for the most part, Mintel claims, because these bars appeal to consumers who may not be on specific diet plans but are seeking convenient healthy snacks and meal replacements.

    The Innova Database records that globally more than 1600 cereal bars were launched in the first 11 months of 2009, up from the same period in 2008, but well down from the total of more than 2000 launched in the same period in 2007.

    Innova says further that the majority of launches have a health positioning, particularly in the U.S., where more than 90% of the launches recorded had a health positioning of some kind, compared with just more than 80% in Western Europe. Innova’s Ms. Williams commented on more specific developments. “Within the nutrition bars market, traditional-style energy bars are having to compete with a range of other health-oriented bars, not only those positioned on a general or multi-benefit platform, but also on a range of formats that are currently very much in vogue, including wholegrain, high fiber, weight management, digestive health, free-from and natural,” she said.

    For the future, Ms. Williams predicted, “With the high levels of product activity apparent in the bars market in recent years, it may be that a saturation point is approaching, with market maturity and segmentation reaching a point where further innovation opportunities are going to be more limited, possibly causing further shakeouts in the market and creating an even more challenging environment.”

    The Latest Launches

    (This information was compiled over the course of several months, using several sources, including press releases, promotional materials and Datamonitor Product Launch Analytics.)

    During the last six months KIND Healthy Snacks (KIND), New York, NY, added six new flavors to its line of whole nut and fruit bars and introduced KIND minis. And if that’s not enough, it also partially funded a clinical trial geared toward weight management.

    As for the fruit and nut bars, each bar contains between 170 and 190 calories, approximately 4 grams of fiber and 3-7 grams of protein. The new varieties include Apple Cinnamon & Pecan and Peanut Butter & Strawberry. New KIND PLUS flavors include Blueberry Pecan + Fiber, Dark Chocolate Cherry Cashew + Antioxidants, Peanut Butter Dark Chocolate + Protein and Pomegranate Blueberry Pistachio + Antioxidants.

    KIND minis are available in four varieties: KIND Fruit & Nut Delight, KIND Almond Apricot, KIND PLUS Almond Cashew and KIND PLUS Cranberry Almond. The product contains all-natural fiber, protein and heart-healthy fats. Each 24-gram bar is less than 115 calories and contains about 3 grams of fiber and 3 grams of protein.

    Lastly, a study conducted by the Yale-Griffin Prevention Research Center showed that when it comes to effects on weight, not all snacking is created equal. In contrast to some recent studies linking snacking to weight gain, this study, which provided two KIND Fruit & Nut bars per day as snacks to 94 overweight adults, found that no weight gain occurred. Study participants were assigned to either the control group or the experimental group. Members of the control group were advised to follow their normal daily diet while members of the experimental group were asked to add two KIND Fruit & Nut bars to their habitual diet for the duration of eight weeks.

    At the culmination of the study, researchers found that members of both groups successfully maintained their weight, body mass index (BMI) and waist size—despite the fact the experimental group had added approximately 350 calories to their daily diet.

    Exploiting the rising popularity of chia, Pure NRG, Detroit, MI, unveiled its Chia Breakfast Bar, which is vegan, dairy-free, gluten-free and wheat-free. The 2.5-oz. bar contains 8 grams of fiber, 16 grams of protein, 230 calories and 5 grams of fat. The company’s products combine coconut flour, brown rice, tapioca, hemp protein, chia seeds, quinoa flour and agave nectar, along with the natural sweetener xylitol.

    The company also unveiled its “Plus” line of vegan, gluten-free, shelf-stable and raw bars. Available in Chocolate Coconut, Cherry Pecan, Autumn Apple and Cinnamon Raisin flavors, all four “Plus” bars contain at least 10 grams of fiber and 7 grams of protein.

    Maintaining its presence in the bar arena, Odwalla, Half Moon Bay, CA, added two new flavors to its line-up. Its Chocolate Peanut Butter Protein bar contains 12 grams of protein, along with calcium and vitamins E, B6 and B12. The Blueberry Swirl Superfood bar contains calcium, folate and vitamins A, C and E. It also features blueberries, organic oats, dates and crisp rice.

    Looking to take advantage of the rising consumer demand for protein, Clif Bar & Company, Emeryville, CA, added Mint Chocolate Chip and Chocolate flavors to its LUNA Protein nutrition bar line. LUNA Protein bars contain 12 grams of protein and 3 grams of fiber, along with calcium, iron, folic acid and vitamin D.

    In other news, the company has also added Chocolate Dipped Coconut and Chocolate Chunk flavors to its LUNA bar line. Both flavors contain 9 grams of protein, 3 grams of fiber and are low glycemic.

    On the Clif Bar side of the business, the company launched CLIF C, a new double-layered fruit and nut bar that contains nine all-natural and organic ingredients. Each CLIF C bar contains 130 calories, provides one full serving of fruit and is a “good source” of fiber, offering 4 grams or 16% of the recommended Daily Value. It is available in Raspberry, Apple, Blueberry and Cherry Pomegranate flavors.

    Abbott Nutrition, Abbott Park, IL, introduced ZonePerfect Cookie Dough Bars, which contain 170-190 calories per serving. The bars are a “good source” of 17 vitamins and minerals, and are rich in antioxidant vitamins C and E, as well as selenium. They are also an “excellent source” of protein (10 grams). ZonePerfect Cookie Dough Bars are available in Chocolate Chip, Peanut Butter and Oatmeal Raisin flavors.

    Since the company and brand was acquired in November 2009 by Greenwich, CT.-based Brynwood Partners VI L.P., Balance Bar added three new flavors to its main line—Double Chocolate Brownie, Lemon Meringue Crunch, S’mores—as well as new varieties to its Pure, Bare and Gold lines. All three new flavors in the main line contain 14 grams of protein, 200 calories, 23 vitamins and minerals, as well as an “excellent source” of antioxidants and vitamin D. They also adhere to the 40/30/30 nutritional model (40% of calories come from healthy carbohydrates, 30% from quality protein, and 30% from dietary fat).

    Balance Pure Gluten Free Fruit & Nut Energy Bars come in a Cherry Pecan flavor. According to the company, it is made with simple ingredients and contains 9 grams of protein and 2 grams of fiber. Balance Pure Bars also come in a Chocolate Cashew variety.

    Balance Bare Nutrition Energy Bars come in a Sweet & Salty Peanut Butter variety touted as “Real roasted peanuts and creamy peanut butter flavor, plus rolled oats’ whole grain goodness—with soy protein to help provide lasting energy.” The company has positioned this bar as low glycemic, and it contains 23 vitamins and minerals and 5 grams of whole grain. The bars also come in Trail Mix Fruit & Nut, Trail Mix Chocolate Chip and Trail Mix Cinnamon Oats & Honey flavors.

    The Balance Bar Gold Balanced Nutrition Bar with Three Indulgent Layers comes in “reformulated” Chocolate Peanut and Triple Chocolate Chaos flavors.

    Also looking to keep it simple, PowerBar, Glendale, CA, unveiled PowerBar Pure & Simple Long Lasting Energy Bars. They are available in Cranberry Oatmeal Cookie and Roasted Peanut Butter varieties. Billed as “all-natural” snack bars, they are high in protein, whole grains and fiber and contain “nothing artificial.”

    Satiety is the main health attribute for a new product called FullBar, Greenwood Village, CO. Designed to be eaten 30 minutes before every major meal, it was developed by a leading weight-loss surgeon, and comes in several varieties, including: Cinnamon Roll, Banana Nut Bread, Berry Bliss, Caramel Apple Crisp, Cocoa Chip, Cranberry Almond, Peanut Butter Crunch and Zesty Lemon Lime.

    Stepping outside of the beverage world, POM Wonderful, Los Angeles, CA, introduced Antioxidant Superbars Dipped in Chocolate, which contain POMx, “an ultra-potent natural antioxidant.” In addition to being natural, the company says the bars are gluten-free and made with real fruits and nuts. Pomegranate and Peanut Butter varieties are available.

    Building on the momentum from its Wheaties Fuel line, General Mills, Minneapolis, MN, rolled out Wheaties Fuel bars. They contain 15 grams of protein, 100% of the daily value of five B vitamins and are available in Double Chocolate and Chocolate Peanut Butter flavors.

    Produced in Australia by Slim Secrets Pty. Ltd., new Slim Secrets Snack Bars are distributed in the U.S. by Sandbar Distributors, Inc. The varieties include Night Time Binge-Buster! (Berries Drizzled With White Chocolate); Afternoon Snack-Attack! (Choc-Nut Caramel Decadence); Morning Rev-Up!, (Cafe Latte Brewed to Perfection); and Mintabolism Boost! (Cool Mint Chocolate with Added Green Tea Extract).

    Kellogg's has introduced Nutri-Grain Superfruit Fusion Flavored Cereal Bars, which feature Cherry Pomegranate and Strawberry Acai varieties. They are billed as having “antioxidant vitamins C and E, and a hearty whole grain texture.”

    In other news, Kellogg’s FiberPlus Antioxidants Chewy Bars now come in a Chocolatey Peanut Butter flavor. The bar offers 35% of the daily value of fiber, plus antioxidants vitamin E and zinc and whole grains.

    Granola Gourmet, LLC, Santa Clarita, CA, has introduced Granola Gourmet 100% Natural Energy Bars, which are kosher and vegan and come in Ultimate Berry, Ultimate Fudge Brownie, Ultimate Mocha Fudge and Ultimate Cran-Orange flavors. They contain 10-12 whole grains, 530-590 mg of omega 3s, no refined sugar or fat and “are free of wheat and dairy and very low in sodium.” According to the company, these bars are made from low-glycemic-impact ingredients and are claimed to meet the needs of diabetics, as well as athletes and health conscious consumers.

    Table 1: Nutrition Bar Trends At-A-Glance

    High fiber products (Examples: Life Soft Baked Nutrition Bars, Kellogg’s FiberPlus Antioxidants Bars)

    Nuts as the main attraction (Examples: Planters Nut-trition, Balance Bare)

    “Naked” or raw food bars that are not enrobed in chocolate so you can see the ingredients (Examples: Balance Bare, PowerBar Pure & Simple, KIND Fruit & Nut Bars)

    High antioxidant levels and/or superfruit ingredients (Examples: PomX Antioxidant Superbar, Nutri-Grain Superfruit Fusion)

    Increasingly functional (Examples: FullBar, Winetime Resveratrol Bar)

    Launching bars that don’t look like traditional bars or candy bars (Examples: Corazonas Heart Healthy Squares, Quaker True Delight Squares)

    High protein contents and other “good for you” ingredients like whole grains (Example: Wheaties Fuel Energy Bars)

    Focusing on weight control/management (Example: FullBar) or longer-lasting energy

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