Chapter 1: Executive Summary
Scope of Report
Methodology: Notes on Sources

• Simmons Market Research Bureau
• Information Resources, Inc.
• CMR/TNS

Population Trends
Spending Power of Children
The Market
Table 1-1: Kids' Food and Beverage Market Projected Category Volume & Growth, 2002 to 2007
Ten Firms Control 73% of the Market
Figure 1-1: The Top 10 Marketers Control 73% of the U.S. Kids' Food & Beverage Market
Meals and Meal Components
Breakfast Leads Meals Segment
Table 1-2: Kids' Breakfast Item Sales, 1998-2002
Lunch Items
Table 1-3: Kids' Lunch Item Sales, 1998-2002
Dinner Items
Top Manufacturers of Dinner Items
Figure 1-2: Top 10 Manufacturers' Share of Kids' Meal & Meal Component Sales
Meal Segment Projections
Desserts and Sweet Snacks
Table 1-4: Desserts and Sweet Snacks Sales by Category Segment
General Mills Spurs Tube Trend
Fruit Snacks
Frozen Novelties
Ten Manufacturers Control 80% of Sweet Snack Sales
Figure 1-3: Manufacturer Share of Dessert Sales
Projected Sweet Snack Sales Growth
Candy
Top Candy Marketers
Figure 1-4: Marketer Share of Kids' Candy Sales
Projected Sales Growth
Beverages
Two New Categories Joined Kids’ Beverages
Five Manufacturers Control 85% of Kids’ Beverage Sales
Figure 1-5: Manufacturers’ Share of Kids’ Beverage Sales
Projected Beverage Growth
Savory Snacks
Salty Snacks Lead Sales, Cheese Snacks are Growing
Frozen Snacks Are Growing Strong
Top Snack Marketers
Figure 1-5: Top Manufacturers’ Share of Savory Snack Sales
Future Growth
New Product Trends
Common Attributes of Kids’ Product Introductions
Innovation is Not a Common Feature of Kids’ Products
Flavor Plays a Role
Table 1-6: The U.S. Kids' Food and Beverage Market Incidence of Selected Attributes In New Product Introductions, 2002
Top Flavor Trends
Advertising Spending
Communicating Effectively
Mom’s Working and Nobody’s Cooking
Snacks Replace Meals
Family Meals Promote Healthy Eating
Nutrition Awareness of Parents
Kids’ Food & Beverage Manufacturers Focus on Nutrition
Childhood Obesity on the Rise
Figure 1-7: Prevalence of Overweight Children, Ages 6 to 19
Challenges and Opportunities

Chapter 2: Population Trends Among Children Ages 5 to 14
Census 2000 Found Some Surprises
Table 2-1: Current and Projected Populations of Children Ages 5 to 14, Total and by Ethnicity/Race
Projected Growth to 2010
America’s Children are Increasingly Diverse
Table 2-2: Distribution of Children Ages 5 to 14 by Race and Ethnicity
Table 2-3: Projected Growth of Children Ages 5-14, Overall and by Race/Ethnicity, 2000-2010
Table 2-4: Projected Growth of Children Ages 5-9, Overall and by Race/Ethnicity, 2000-2010
Table 2-5: Projected Growth of Children Ages 10-14, Overall and by Race/Ethnicity, 2000-2010
Traditional Families No Longer the Norm
Figure 2-1: Hispanics, Asians Favor Traditional Families
Table 2-6: Household Type as Share of all Households by Race, Ethnicity, 2002
Household Size Influences Food Spending
Table 2-7: Household Size and Spending on Food, 2000, 2+ Person Household
Table 2-8: Weekly Median Food Spending Per Person by Household Composition
Food Spending Varies by Race, Ethnicity
Income is Highest Among Asians, Lowest Among Blacks
Table 2-9: Median Incomes are Highest Among Asian Households

Chapter 3: The Overall Market
The Overall Market
Assumption Regarding Sales Volume
Table 3-1: Estimated U.S. Supermarket Sales of Kids' Foods and Beverages, 1998 to 2007
The Top 10 Firms Control Nearly Three-Quarters of the Market
Table 3-2: Annual Sales of Top 10 Manufacturers of Kids' Food, Beverages
Table 3-3: Top Market Share of Kids’ Food and Beverage Market, 1998-2002
Figure 3-1: Top 10 Marketer Share of the U.S. Kids' Food & Beverage Market
Sales of Kids’ Food and Beverages by Category
Figure 3-2: Share of Kids' Food & Beverage Market by Category
Table 3-4: U.S. Kids’ Food and Beverage Market Segment Share, 1998 & 2002
Table 3-5: Kids’ Food and Beverage Sales by Category
Table 3-6: Kids’ Food and Beverage Market Volume and Growth by Category, 1998 -2002
Table 3-7: Kids’ Food and Beverage Market Projected Category Volume and Growth, 2002-2007
Market Drivers

Kids Food Marketers - Corporate Profiles
Apple & Eve, LLP
Aurora Foods
Cadbury Schweppes
Campbell Soup
Chiquita
Coca-Cola/The Minute Maid Company
ConAgra Foods, Inc.
Crazy Cow Sparkling Milk Company
The Dannon Company, Inc.
General Mills, Inc.
H.J. Heinz
Hershey Food Corp.
J.M. Smucker Co.
Kraft Foods, Inc.
Kellogg Company
Nestle USA
PepsiCo. Inc.
Procter & Gamble

Chapter 4: Desserts and Sweet Snacks
Figure 4-1: Overall Sales Shares, by Product Type, within the Desserts & Sweet Snacks Category
Table 4-1: Desserts and Sweet Snacks Sales by Category Segment
Bakery Snacks
Figure 4-2: Share of Bakery Snack Sales by Segment
Cookies
Table 4-2: Use of Cookies, Overall and Households with Kids
Table 4-3: Use of Cookies, by Brand, Overall and Households with Kids
Table 4-4: Use of Cookies, by Brand and Type, Overall and Households with Children
Figure 4-3: Marketer Share of Cookie Sales, 2002
Table 4-5: Sales of Cookies, by Brand, 2002
Cupcakes and Snack Cakes
Figure 4-4: Marketer Shares of Snack Cake/Cupcake Sales, 2002
Table 4-6: Use of Snack Cakes, Overall and Households with Children
Toaster Pastries
Figure 4-5: Share of Toaster Pastry Segment, by Marketer, 2002
Table 4-7: Use of Toaster Pastries, Overall and Higher in Households with Children
Granola Bars
Figure 4-6: Share of Granola / Cereal Bar Segment by Marketer
Table 4-8: Sales of Kids' Granola & Cereal Bars, 2002
Table 4-9: Use of Granola / Cereal Bars, Overall and Households with Children
Refrigerated Cookie & Brownie Dough
Figure 4-7: Marketer Share of Refrigerated Cookie Dough Segment, 2002
Table 4-10: Refrigerated Cookie Dough Sales, by Marketer, 2002
Table 4-11: Use of Cookie & Brownie Dough, Overall and Households with Children
Graham Crackers
Figure 4-8: Marketer Share of Graham Cracker Sales, 2002
Packaged Donuts and Muffins
Figure 4-9: Marketer Share of Packaged Donut Sales, 2002
Baking Mixes
Total Bakery Snacks Segment
Figure 4-10: Marketer Share of Bakery Snack Sales, 2002
Table 4-12: Bakery Snack Sales by Segment, 1998-2002
Yogurt, Gelatin & Pudding Snacks
Table 4-13: Yogurt, Gelatin & Pudding Desserts& Snacks Sales, 1998-2002
Refrigerated Pudding Snacks
Figure 4-11: Marketer Share of Refrigerated Pudding & Yogurt Sales, 2002
Table 4-14: Use of Pudding, Overall and Households with Children
Table 4-15: Use of Pudding Brands, Overall and Households with Children
Yogurt
Table 4-16: Refrigerated Yogurt Sales by Manufacturer, 1998-2002
Figure 4-12: Marketer Share of Yogurt Sales, 2002
Table 4-17: Use of Refrigerated Yogurt, Overall and Households with Children
Table 4-18: Yogurt Brands Eaten Most Often, Overall and Households with Children
Table 4-19: Refrigerated Yogurt Number of Cups Eaten in Last 30 Days, Overall and Households with Children
Shelf Stable Gelatin & Pudding Snacks
Table 4-20: Shelf Stable Gelatin & Pudding Snack Sales by Manufacturer, 1998-2002
Figure 4-13: Marketer Share Gelatin & Pudding Snack Sales, 2002
Table 4-21: Use of Gelatin Desserts, Overall and Households with Children
Table 4-22: Flavored Gelatin Dessert Brands Used, Overall and Households with Children
Go-Gurt Spurs Tube Trend
Packaged Facts Estimates Tube Food Sales at $176.2 million to $211 million
Excluding Go-Gurt, Ad Spending for Tube Foods is Limited
Gelatin Mixes
Figure 4-14: Share of the Yogurt, Pudding & Gelatin Desserts & Snacks Sales, by Marketer, 2002
Fruit Snacks

• Fruit Rolls, Bars and Snacks
• Figure 4-15: Marketer Share of Fruit Snack Sales, 2002
• Fruit Cups

Table 4-23: Fruit Snacks Sales by Segment & Manufacturer, 1998-2002
Frozen Novelties & Ice Pops
Table 4-24: Use of Frozen Novelties, Overall and Households with Children
Success Depends on the Familiar as Well as the New
Ad Spending
Market Leaders
Table 4-25: Frozen Novelty & Ice Pop Sales by Manufacturer, 1998-2002
Figure 4-16: Marketer Share of Frozen Novelty Sales, 2002
Miscellaneous Desserts & Sweet Snacks
Figure 4-17: Share of Miscellaneous Sweets by Segment, 2002
Dessert Toppings
Marshmallows
Trail Mix Type Snacks
Ice Cream Cones
Top Marketers in Miscellaneous Sweet Snacks
Figure 4-18: Manufacturers Share of Miscellaneous Desserts & Sweet Snacks Sales, 2002
Ten Manufacturers Control 80% of Dessert & Sweet Snack Sales
Projections Going Forward
Figure 4-19: Manufactuer Share of Dessert Sales, 2002
Table 4-26: Dessert & Sweet Snack Sales, Top 10 Manufacturers, 1998 - 2002

Chapter 5: Meals and Meal Components
Figure 5-1: Share, by Category, of the Meals & Meal Components Segment
Table 5-1: Meals and Meal Components Sales by Category Segment, 1998-2002
Breakfast Items
Table 5-2: Breakfast Food Use by Households with Kids
Breakfast Cereal
Figure 5-2: Sales Share of Breakfast Segment Categories
Table 5-3: Kids' Breakfast Item Sales, 1998-2002
Table 5-4: Breakfast Cereal Usage by Households with Children
Table 5-5: Breakfast Cereal Brands Used By Households with Children
Frozen Breakfast Items
Table 5-6: Household Usage of Frozen Breakfast Items
Breakfast Syrup
Margarine Spreads
Lunch Items
Figure 5-3: Kids' Lunch Sales by Product Segment
Table 5-7: Kids' Lunch Item Sales
Refrigerated Lunch Kits
Table 5-8: Households Use of Prepared Lunch Kits
Peanut Butter
Table 5-9: Peanut Butter Usage in Households with Kids
Figure 5-4: Share of Peanut Butter Segment by Brand
Bread 113
Table 5-10: Use of Bread Brands in Households With Kids
Packaged Cheese Slices
Dinner Items
Figure 5-5: Share of Kids' Dinner Item Sales by Category
Table 5-11: Kids' Dinner Item Sales, 1998-2002
Frozen Pizza
Figure 5-6: Share of Frozen Pizza Sales by Manufacturer
Table 5-12: Frozen Pizza Usage in Households with Kids
Frozen Entrees & Handheld Sandwiches
Macaroni & Cheese Mixes
Table 5-13: Use of Macaroni & Cheese Mixes in Households with Children
Shelf Stable Dinners
Table 5-14: Microwaveable Dinner in Households with Kids
Frozen Potatoes
Table 5-15: Frozen Potato Products Use in Households with Kids
Ketchup
Table 5-16: Ketchup Usage
Top 10 Manufacturers of Kids’ Meals and Meal Components
Volume Projections
Table 5-17: Top 10 Manufacturers of Kids' Meals and Meal Components, 2002 Sales
Figure 5-7: Top 10 Manufacturers' Share of Kids' Meal & and Meal Component Sales

Chapter 6: Candy
Table 6-1: Retail Sales of Kids’ Candy, 1998-2002
How We Arrived At Our Sales Estimates
Non-Chocolate Candy
Figure 6-1: Non-Chocolate Candy Sales by Type
Table 6-2: Non-Chocolate Candy Sales by Segment, 1998-2002
Chocolate Candy
Figure 6-2: Share of Kids' Chocolate Candy Sales by Segment
Table 6-3: Chocolate Candy Sales by Segment, 1998-2002
Candy Usage is Higher in Households with Kids
Table 6-4: Candy Consumption in Households with Children
Table 6-5: Consumption of Chocolate Candy Brands in Households with Children
Table 6-6: Consumption of Non-Chocolate Candy in Households with Children
Advertising Support
Robust New Product Activity in Candy
Two New Product Trends: Healthy and Hispanic
Licensing/Co Branding
The Wal-Mart Factor
Five Manufacturers Control 63% of the Kids’ Candy Market
Figure 6-3: Marketer Share of Kids’ Candy Sales
Table 6-7: Total Retail Sales of Candy, by Major Marketers, 1998-2002
Projected Growth

Chapter 7: Savory Snacks
Table 7-1: The Top Five Favorite Snacks of Kids and Teens
Figure 7-1: Savory Snack Sales by Segment
Salty Snacks
Table 7-2: Savory Snack Sales by Segment
Advertising Spending
Two Manufacturers Control Almost 87% of Salty Snack Sales
Table 7-3: Salty Snack Sales by Manufacturer, 1998-2002
Crackers
Table 7-4: Cracker Sales by Manufacturer, 1998-2002
Table 7-5: Types and Brands of Crackers Used in Households with Children
Cracker Consumption is Higher Among Households With Kids
Table 7-6: Cracker Consumption in Households With Children
Table 7-7: Popular Cracker Brands in Households With Kids
Mom’s Buy Cracker Snack Packs for Kids
Table 7-8: The Top Five Single Serve Snacks Moms Buy For Children/Teens
Five Manufacturers Control the Bulk of Cracker Sales
Figure 7-2: Manufacturers’ Share of Cracker Sales
Frozen Appetizers & Snacks
Figure 7-3: Share of Frozen Snack Sales by Manufacturer
Table 7-9: Retail Sales of Frozen Snacks, 1998-2002
Table 7-10: Frozen Snack Sales by Manufacturer, 1998-2002
Advertising Spending
Popcorn
Table 7-11: Popcorn Sales by Manufacturer, 1998-2002
Popcorn Usage is Higher Among Households with Children
Table 7-12: Popcorn Use in Households With Children
Distribution of Sales by Manufacturer
Figure 7-4:Share of Popcorn Sales by Manufacturer
String Cheese and Cheese Snacks
Figure 7-5: Share of String/Snack Cheese Sales by Manufacturer
Table 7-13: Snack Cheese Sales by Manufacturer, 1998-2002
Top 10 Marketers Share of Savory Snacks Segment
Figure 7-6: Top Manufacturers’ Share of Savory Snack Sales
Table 7-14: Manufacturers Retail Sales of Savory Snacks, 1998-2002
Projections Going Forward

Chapter 8: Beverages
Figure 8-1: Sahre of Kids’ Bevrage Sales by Segment
Aseptic Juices & Drinks
Table 8-1: Aseptic Juice Sales by Manufacturer, 1998-2002
Usuage of Juices & Drinks, Particularly Aseptics, is Higher in Households with Kids
Table 8-2: Use of Fruit/Drink in Households with Children, by Form/Package
Table 8-3: Use of Fruit/Drink in Households with Children, by Type
Households with Children Have Above Average Use of Fruit Juices
Table 8-4: Use of Fruit/Drink by Brand, in Households with Children Have Above Average
Shelf Stable Bottled Fruit Juices & Drinks
Table 8-5: Sales of Kids’ Shelf Stable Juices & Drinks by Manufacturer, 1998-2002
Figure 8-2: The Top 5 Marketers Share of Shelf-Stable Fruit Juice Sales
Households With Kids’ Have Above Average Usage of Most Fruit Drink Brands
Table 8-6: Use of Fruit Drinks by Brand, in Households with Children
Household with Kids Drink More Juice
Table 8-7: Consumption of Juice in Households with Children
Packaged Dry Drinks Mixes
Households with Kids Have Above Average Use of Beverage Mixes
Table 8-8: Use of Powdered Soft Drinks in Households with Children
Table 8-9: Comsumption of Powered Soft Drinks in Households with Children
Refrigerated Fruit Drinks
Cocoa Mixes And Milk Flavorings
Table 8-10: Sales of Instant Cocoa Mixes and Milk Flavorings, 1998-2002
Households with Children Use More Milk Flavorings
Table 8-11 Use of Milk Flavorings in Households with Children
Cocoa Mixes Are More Popular Than Milk Flavorings
Table 8-12: Usage of Cocoa Mix in Households with Children
Flavored Milks and Milk Shakes
Figure 8-3: Refrigerated Flavored Milk & Shakes, Share of Sales by Manufacturer
Shelf Stable Non-Fruit Drinks
Figure 8-4: Share of Non-Fruit Beverage Sales by Manufacturer
Canned Juices and Drinks
Juice Drinks Concentrates
Bottled Water
Isotonic Beverages
Beverage Preferences of Tweens
Table 8-13: Favorite Beverages of Teens/Tweens, Girls and Boys
Summary of Performance by Form
Table 8-14: Beverage Sales Trends by Product Form, 1998-2002
Top 10 Manufacturers of Kids’ Beverages
Table 8-15: Top 10 Manufacturers of Kids’ Beverages 2002
Five Manufacturers Control 85% of Kids’ Beverage Sales
Figure 8-5: Share of Kids’ Beverage Sales by Manufacturer
Volume Projections Going Forward

Chapter 9: Trends in Advertising and Promotion
Advertising Spending
Children are Active Media Consumers
Table 9-1: Percentage of Children Ages 6 to 14 Having a Television, VCR of DVD in Their Room
The First Challenge is to Reach Kids; the Second is to Engage Them
What Makes Kids Tick
Connecting with Kids
Don’t Forget the Gatekeeper
Kids are Wise to Advertising
The Best Way to Reach Kids
Cable Rules with Kids
Kids’ Opinions About Advertising That Works
Sampling, Sweepstakes, Games, and Giveaways
Food as Toys, Toys as Food
Advergaming Targets Tweens
Potential for Backlash
Parental Attitudes Toward Advertising
Table 9-2: Media Attitudes of Parents
American Children are Active Consumers
Spending Power
Money of Their Own
Kids Exert the Most Influence in Grocery Stores
Table 9-3: Percent of Children Ages 8 to 17 Saying They Influence Household Purchases
“Kid-fluence” and Shopping - Parental Attitudes
Table 9-4: Children Influence Their Parents' Shopping Behavior
The Nag Factor

Chapter 10: Food Consumption Trends
Changing Food Patterns in America
Two-Thirds of American Women Are in the Labor Force
Mom’s Working and Nobody’s Cooking
Snacks Replace Meals
Family Meals Promote Healthy Eating
Changes in Nutrient Intake
Consumption of Added Sugars Continues to Rise
Figure 10-1: America's Changing Patterns of Sugar Consumption
The More Things Change…
Table 10-1: Percentages of Children with Diets Meeting 100% of the RDA
Nutrition Attitudes of Parents
Table 10-2: Attitudes Toward Nutrition Among Adults in Households With Kids
Main Meals Provide The Best Opportunity for Nutritional Improvement
Kids’ Food & Beverage Manufacturers Focus on Nutrition
Childhood Obesity on the Rise
Figure 10-2: Prevelance of Overweight Children, Ages 6 to 19
Activists Weigh In

Chapter 11: New Product Trends
Variety is the Spice of Life
Product Attributes
Table 11-1: The U.S. Kids' Food and Beverage Market Incidence of Selected Attributes In New Product Introductions, 2002
Packaging Plays a Critical Role in Kids’ Products
Innovation
Table 11-2: Kids' Food and Beverage Products Considered "Innovative," as a Share of Category Introductions and as a Share of all Innovative Products Introduced
Packaging Innovation
Formulation/Positioning Innovation
Variations on a Theme
Extreme Flavor Trends
Hispanic Flavor Trends
Top Flavor Trends
Color
Health Aspects of Kids Intros
Kids’ Products as Share of All Intros
Table 11-3: Introduction Trends: Kids' Food and Beverages, Introductions of Kids' Products Total Count, and as Share of all Food & Beverage Introductions
Product Introductions by Manufacturer
Key to Success
Table 11-4: Kids' Food and Beverage Introductions by Manufacturer, 2002

Chapter 12: Regulatory Considerations
Trans Fatty Acid Labeling
FDA Action Plan for Acrylamide in Food
Potential Health Claim for Omega-3 Fatty Acids
Biotechnology, Genetically Modified Food Ingredients
Organic Labeling
Food Allergens

Chapter 13: Trends and Opportunities
Population Shifts
Fractured Families
Nobody’s Cooking
Kids Wield Substantial Spending Power
Snacks Show the Most Promise
Convenience, Portability, Single Serve
Obesity, Health May Be The Biggest Wild Cards
Nutrition

Appendix: Addresses of Selected Marketers