Dr. Athanasios Krystallis Associate Professor, MAPP...World PS market. Main market characteristics:...

Dr. Athanasios KrystallisAssociate Professor, MAPP

Plant sterols:Consumer attitudes and preferences

Plant sterol (PS) food products

OverviewProducts which lower cholesterol by inhibiting cholesterol

absorption. They are relatively newCommercially 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

Plant sterols: consumer attitudes and preferences


Sales value by functionality type, %(source: adapted from Euromonitor data, 2004)

6,1

2,1

0

5

10

15

20

25

30

35

40

45

50

For sports orenergy

Lowerscholesterol

Promotesintestinal healthand/or digestion

Added calcium Added vitamins,mineral or

supplements

Other

199820032008

NOTE: forecast value for 2008

World PS market

Main market characteristics:Functional food and beverages (FFB) is a dynamic market: +40% in value sales between 2003-08 (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



Plant sterol products per country, 2008(source: adapted from Mintel, 2008)

0

5

10

15

20

25

30

35

40

USA

Italy

Finla

nd UKNeth

erlan

ds

Germ

any

Fran

ce

Russia

Japa

n

Irelan

d

DairySnacksBakerySugar & Gum ConfectioneryChocolate ConfectioneryDesserts & Ice CreamSide DishesSauces & SeasoningsBreakfast CerealsProcessed Fish, Meat & Egg Products

355 PS products in 10 main markets


Plant sterol product launches per country, total 2002-October 08(source: adapted from Mintel, 2008)

912

5

20

11

64

2 1

39

3335

9

2 2 2

22

39

22

57

35

9

31

7

16

27

2

16 15

47

1

38

77

10

10

20

30

40

50

60

70

80

90Ar

gent

ina

Aust

ralia

Aus

tria

Belg

ium

Cana

daCh

ileC

hina

Czec

h Re

publ

icDe

nmar

kFi

nlan

dFr

ance

Ger

man

yG

reec

eHo

ng K

ong

Hung

ary

Indi

aIr

elan

dIta

lyJa

pan

Mal

aysi

aM

exic

oNe

ther

land

sNe

w Z

eala

ndNo

rway

Phili

ppin

esP

olan

dPo

rtug

alRu

ssia

Sout

h A

frica

Spa

inS

wed

enSw

itzer

land

Taiw

anTu

rkey UK USA

Viet

nam

546 PS products in 37 countries


Trend of plant sterol product launches per category and year, 2002-October 08(source: adapted from Mintel, 2008)

26

56

78

100

109

93

84

0

20

40

60

80

100

120

2002 2003 2004 2005 2006 2007 2008

Baby FoodBakeryBreakfast CerealsChocolate ConfectioneryDairyDesserts & Ice CreamFruit & VegetablesMeals & Meal CentersProcessed Fish, Meat & Egg ProductsSauces & SeasoningsSavoury SpreadsSide DishesSnacksSoupSugar & Gum ConfectionerySweeteners & SugarTotal Sample

546 PS products in 16 categories

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)


Key strategies:Successful PS products tend to have a fairly mainstream positioning.− Marketed through mass-market channels

(e.g. 5% of 2002-08 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


0,00%

100,00%

200,00%

300,00%

400,00%

500,00%

600,00%

700,00%

800,00%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Quad‐weeks (1=launch quad‐week)

Inde

x sa

les va

lue (100

= sales

value

1 qua

d‐wee

k from

laun

ch)

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)


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



Number of plant sterol product launches in selected categories, 2004 - October 08


1

5

9

8

7

0

1

2

3

4

5

6

7

8

9

10

2004 2005 2006 2007 2008

Baby FoodBakerySauces & SeasoningsSugar & Gum Confectionery

Non-spread PS brand names’ sales value evolution, 2-year period after launch



‐500,00%

0,00%

500,00%

1000,00%

1500,00%

2000,00%

2500,00%

3000,00%

3500,00%

4000,00%

4500,00%

5000,00%

5500,00%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Quad‐weeks (1 = launch quad week)

Inde

x sales va

lue (100

= 1 qua

d wee

k from

laun

ch)

CocoaVia Smart Balance Sultana

http://iris.gnpd.com/sinatra/gnpd/images/newzoom&id=10154157&pic_num=0&destWidth=400&destHeight=400&origWidth=400&origHeight=400

http://iris.gnpd.com/sinatra/gnpd/images/newzoom&id=10252311&pic_num=0&destWidth=400&destHeight=400&origWidth=400&origHeight=400

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) (www.nutraingredients.com)


Operating environment

http://www.nutraingredients.com/

Activity Cost (Euros M)

Research (1996-2000): 15 FTEs 30 Clinical/Safety trials 14 Publications

15-18

Product Development (1996-1999): 3 FTEs Ingredient development and sourcing; product trials

3-4

Post Launch Monitoring (2000-2002): 3 FTEs Design, assessment, careline training, market research, reporting

1-2

Total 19-24

Business costs for bringing Pro-Activ spread into the market:


Milk/Yoghurt

4

7

6

3

20 Months

Initial Assessment

60 day Assessment

Scientific Opinion

Standing Committee

Launch

Yellow fat spreads

Key :

13

6

10

2

2

Total 33 Months

No

vel

Fo

od

s P

roce

ss

Calendar time for bringing Pro-Activ products into the market:

Danish consumers’ attitudes and preferences

Under the EU FP6’s NOFORISK project (FOOD-CT2001-506387), 3 studies undertaken by MAPP in Denmark, focusing among other products to plant sterols:

Prior to the launch of the 1st 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 1st PS food in Denmark:Study 3: Experiment: 726 consumers [September 2006]



Consumer mental model for phytosterols (source: NOFORISK Deliverable 31, 2004, MAPP)

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


Lessons drawn from the consumer study 1

Neutral strength

Consumer belief strengths, 1=strongly disagree,

7=strongly agree(source: NOFORISK Deliverable

33, 2006, MAPP)

STUDY 2


Consumer preferences for information delivery channel (source: NOFORISK Deliverable 33, 2006, MAPP)


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)

STUDY 3


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)


Percentage distribution of information details inspected on the front and the back package

(source: NOFORISK Deliverable 34, 2007, MAPP)


Percentage of consumers who attended to health-related information (source: NOFORISK Deliverable 34, 2007, MAPP)

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 productsStudy 3:

But even after launch of the 1st 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


Lessons drawn from the consumer studies 2 & 3

Overall conclusion

At the world FFB market level, the PS category has substantial growth potential, − when PS products target wider audiences (“life-

related” 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 pre-

existing consumer attitudes towards technology− Behavioural avoidance reaction and lost of trust in the

communication source“Awakening up” dormant risk associations must be avoided!


For more information:

Dr. Athanasios Krystallis

ASB/MAPP

email: [email protected]

homepage: http://www.asb.dk/staff/

Tel: 89 48 63 74


mailto:[email protected]

http://www.asb.dk/staff/

Dr. Athanasios Krystallis Associate Professor, MAPP...World PS market. Main market characteristics:...

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