• Prices for organic products can be 20 to 120% higher.
• Explain why prices are higher.
• Walnut Acres survey shows that 68% of those who rarely or never buy organics cited price, with 45% saying it’s a major reason.
• Experts say that when organic is priced within 20% of conventional, the value of the products will be perceived as equal. Manufacturers cite barriers to growth
• OTA study shows that manufacturers are concerned about several issues.
• Consumer issues are another large category.
• High cost and a general lack of quality organic ingredients appeared as a major barrier to growth in most product categories.

• Challenge for retailers - and consumers - how to integrate products. Space and positioning challenges.
• The majority of consumers who purchase or are likely to purchase organic fruits and vegetables prefer that the organic varieties be offered separately.
• A less clear-cut pattern emerges for placement of organic soups, cereals, frozen foods or packaged goods.
• Convenience of choice is a particular factor for some groups.
• Other research points to integrating products rather than creating an organic “ghetto.”
• Retailers responding differently. Wegmans separate section. Giant, Safeway integrated, etc.
• Issue offers food for thought.

• With the new label, things are clearer, but many consumers are still uncertain about what organics mean.
• People who aren’t already buying organics may be a harder sell.
• OTA realizes consumers need more info and creating Center for Organic Education and Promotion.

Chapter 3 Competitive Situation

• Introduction
• Changing competitive landscape
  • Overview of how many organic companies started out small with committed environmental philosophies.
  • Large companies are settling in.
  • Organic now accounting for majority of natural/organic market.
  
  
• Six US companies had more than $100 million in sales in 2001
  • Dean Foods (White Wave, Alta Dena)
  • Natural Selection Foods (Earthbound Farm)
  • Horizon Organic Dairy
  • The Hain Celestial Group
  • General Mills (Sunrise, Cascadian, Muir Glen, Gold Medal)
  • Organic Valley / CROPP
  
  
• Giants investing in organic firms
  • Attracted more by strong sales figures than strong environmental concerns, large companies are getting more involved.
  • Positive repercussions - more products available, more marketing, more awareness..
  
  
• Mergers and acquisitions
• Company profiles: Conglomerates
  • Hain-Celestial introduces variety of new products
  • Acirca (Walnut Acres)
  • Pepsico tests Organic Frito-lay snack foods
  • Dole trying organic bananas
  • Kraft builds organic business through Boca Burger
  • Heinz ketchup
  • Starbucks organic coffee.
  • Kellogg introduces Kashi organic cereal line
  • Small Planet (owned by General Mills) developed organic cereals
  
  
• Company Profiles: familiar brands
  • Horizon Organic Dairy
  • Amy’s Kitchen
  • Organic Valley
  • White Wave
  • Stonyfield Farm
  • Imagine Foods
  • Newman’s Own
  • Annie’s Homegrown
  • Earthbound Farm - leading the way with bagged produce.
  
  
• Company Profiles: Independents
  • Nature’s Path
  • Eden Foods
  • Golden Temple
  • Country Choice Naturals
  
  
• Company Profiles: Meat/Poultry - Emerging Market
  • Green Circle Organics
  • Organic Valley
  • Booth Creek Management Corp. (Petaluma Holdings, Coleman Natural Products, B3R Country Meats)
  • Harris Ranch
  • Davis Mountains Organic Beef
  • Applegate Farms (deli products)
  
  
• Company Profiles: Trendsetters/Niche Marketers
  • Allgoode Organics
  • Rudi’s Bakery. Organic bread.
  • Organica Cookies.
  
  
• Company Profiles: Wholesale distributors
  • United Natural Foods (UNFI)
  • Tree of Life

Chapter 4 The Products

• Introduction
• Overview
  • Produce, grains, packaged foods and dairy were leading major categories.
  • Main gateways to the category are produce, baby food and milk.
  • Categories with most potential are soups or sauces and organic eggs.
  • Growth in the mainstream, specialty markets
  
  
• New Products
• Differentiating products
  • Not much brand recognition yet. Challenge and opportunity for companies to differentiate products.
  • Private label competition Product segment overview
  • Packaged Produce
  • Meat/Poultry/Eggs
  • Dairy
  • Cereals
  • Snack Bars
  • Desserts
  • Frozen Foods
  • Soyfoods and other meat/dairy alternative
  • Beverages: Juices/Coffee/Tea

Chapter 5 Distribution

• Introduction
• Supermarkets
• Natural food stores
  • Whole Foods
  • Wild Oats
  • Trader Joes
  • Mom’s Market
  
  
• Conventional supermarkets
  • Wegmans
  • JB Pratt
  • Kroger
  • Albertsons
  • Safeway
  • Giant
  
  
• Mass Marketers
  • Walmart
  • Target
  
  
• Convenience
  • 7-11
  • Others
  
  
• Restaurants
  • Chef’s Cooperative
  • Nora Pouillon
  • Fast Foods - Gary Hirshfeld’s concept

Chapter 6 The Consumer

• Introduction:
• Original organic buyer and how market is evolving
• Changing face of the organic consumer
• More diversity
• Younger
• Less wealthy
• Profiles of organic consumers
• Why consumers are buying organic
• Health/food safety - families buying for kids
• Challenges
• Price
• Understanding

Chapter 7 Trends and Opportunities

Chapter 8 Appendix of Marketers

Volume II: Functional Foods and Beverages

Chapter 1 Executive Summary

Chapter 2: The Market

• The Scope of This Report
• Functional Foods Defined
• Distinguishing Functional Foods from Fortified Foods and Dietary Supplements
• Fortified vs. Enriched
• Glossary of Products Included in Functional Foods
• The Products
• Categories of Functional Foods
• Cereals
• Comprehensive Nutritional Drinks (CNDs)
• Confections
• Dairy and Dairy Substitutes
• Juices
• Waters
• Other Food
• Ingredients Supporting Functional Foods
• Market Size, Composition and Growth
• Sales of Functional Foods in 2002
• Table: U.S. Retail Dollar Sales of Functional Foods and Beverages, 1998-2002
• Table: U.S. Retail Sales of Fortified Foods Category, 1998-2002
• Table: U.S. Retail Sales of Fortified Beverages Category, 1998-2002
• Most Popular Ingredients Used in Fortified Foods
• Regional Bases of Sales
• Factors in Future Growth
• All Age Groups Use Functional Foods
• Aging Baby Boomers Focus on Fortified Foods
• Kids Another Driving Force
• Growing Ethnic Population Shaping Sales
• Looking Toward Self-Care and Alternative Health Solutions
• Linking Diet and Health
• Functional Foods Can Supplement a Normal Diet
• Current Health Concerns
• Fortification a Competitive Strategy
• New Functional Products
• Market Projections
  
• Sales Projections through 2007
• Table: Projected U.S. Retail Sales of Functional Foods and Beverage Market, 2003-2007
• Functional Foods Category Projections
• Table: Projected U.S. Retail Sales of Functional Foods Category, 2003-2007
• Table: Projected U.S. Retail Sales of Functional Beverages Category, 2003-2007

Chapter 3: The Competitive Situation

• Types of Marketers
• Marketers Sometimes Focus on Specific Retail Channels
• Table of Marketers and Brands
• Table: Selected Functional Food Marketers and Their Brands, 2003
• Marketer and Brand Shares
• The Marketers
  
• Hundreds of Marketers
• Leaders Are Major Food or Pharmaceutical Companies
• Minor Marketers
• Most Compete in Only a Few Product Areas
• Cereal Marketers
• Marketers of Other Shelf-Stable Foods
• Juice and Juice Drink Marketers
• New Age Beverage Players
• Natural Beverage Marketers
• Dairy Products
• Soy Products and Other Milk Alternatives
• Table: The U.S. Functional Foods Market: Leading Marketers and Their Top Brands
• The Competitive Situation
• Impact of Acquisitions
• Ways Mainstream Marketers Compete
• New Product Development Issues
• Reformulating Existing Products and Adding Line Extensions
• Acquiring Existing Companies and Brands
• Joint Ventures Can Provide Synergies
• Major Companies Have the Edge
• The Importance of Smaller Marketers
• Competitive Profiles
  
• Competitive Profile: Cadbury Schweppes Plc (Snapple)
• Competitive Profile: Clearly Canadian Beverage Corp.
• Competitive Profile: The Coca-Cola Co. (Minute Maid)
• Competitive Profile: General Mills, Inc.
• Competitive Profile: The Hain Celestial Group
• Competitive Profile: Kellogg Co.
• Competitive Profile: Kraft Foods, Inc.
• Competitive Profile: PepsiCo, Inc.
• Consumer Advertising and Promotions
• National Consumer Advertising Estimates
• Cereal and Beverage Giants the Top Advertisers
• Website Alternatives or Supplements to Traditional Media
• Advertising Focuses on Nutrition, Health Benefits, and Taste
• Taking Charge of One's Health
• Taking Care of Others
• Family Focus
• New Age Beverages Trade on Their Image

Chapter 4 New Products and Product Trends

• New Product Trends
• New Products Continue to Proliferate
• Perception of Appropriate Added Ingredients
• Calcium and Antioxidants
• Folic Acid to Prevent Birth Defects
• Soy Gaining the Spotlight
• Probiotics and Prebiotics on the Cutting Edge
• Cholesterol-Lowering Foods Are More Like Medicines
• Jury Still Out on Herbal Fortifiers
• Product Trends by Category: Foods

• Product Trends by Category: Beverages

• Selected New Product Introductions
  
• Table: The U.S. Functional Foods Market: Selected New Product Introductions, 2001-2003

Chapter 5 Retail Strategies

• Where Functional Foods Are Sold
• Supermarkets the Leading Outlet
• Convenience Stores Strong in Beverages
• Natural Foods Stores Selection
• Limited Selections in Warehouse Clubs
• Mass Merchandisers Expanding Food Selections
• Drugstores Have a Natural Health Connection

Chapter 6 The Consumer

• The Consumer: America’s Major Illnesses
• Consumer Overview
• Growth in Functional Foods Driven by New Health Awareness
• Product Usage Rates
• Attitudes Toward Health and Nutrition
• Use of Functional Foods
• Important Factors in Decision-Making Process
• Prime Health Concerns
• Calcium and Vitamin C Claims
• Food as Medicine
• Foods for "Wellness"
• Focus on Categories
  
• Table: Consumer Overview for Functional Foods
• Consumer Focus: Cold and Hot Cereals
• Consumer Focus: Energy Bars
• Consumer Focus: Functional Beverages

Chapter 7 Trends and Opportunities

Appendix I: Addresses Of Selected Marketers

Volume III: Soy Foods

Chapter 1 Executive Summary

Chapter 2 The Market

• What are soy-based foods
• Scope of report/market
• Market Size and Growth
• 2002 Retail Sales
• Table 2-1: U.S. Retail Sales of Soy-based foods, 1998-2002 (dollars)
• Market Composition
• Share by Product Category
• Table 2-2: Share of U.S. Soyfood Sales by Product Category: By Dollar and Percent Share, 2002
• Supermarkets the Leading Outlet
• Health and Natural Product Stores
• Natural Food Supermarkets
• Soy in Foodservice: Soymilk in Lattes
• Table 2-3: Share of U.S. Soyfood Sales by Retail Outlet Type, 2002 (
• Factors Affecting Market Growth
• A Health-Aware Population
• Aging Population Drives Soyfood Sales
• Growing Hispanic and Asian Populations Expand Market
• Vegetarianism Taking Early Root - More Teens Adopt Non-Meat Eating Habits
• Natural Foods Marketers Gear Up for Mainstream Distribution
• Growth of Soyfoods Is in Conventional Channels
• Conventional Producers Embrace Soyfoods
• Concern Over Food-Safety Issues Draws Consumers to Soyfoods
• GMOs Another Food Safety Issue
• Organic Soyfood Sales Will Climb
• “Hot” Food Categories Present Opportunities: Snack/sports bars, Smoothies, Convenience Meals
• Foodservice Distribution Limited, But Growing
• Taste Could Prevent Repeat Purchases by Conventional Consumers
• Safety Issues a Concern for Mass-Market Consumers
• Projected Market Growth
• Table 3-5: Projected U.S. Retail Sales of Soyfoods, 2003-2007 (dollars)

Chapter 3 The Competitive Situation

• Significant Soy Marketers
• Conventional Marketers Acquire Soyfood Companies
• Leaders in Meat Alternatives
• Soy Beverage Leaders
• Leading Tofu Marketers
• Cheese and Other Dairy Alternative Leaders
• Meal Replacement and Protein Powder Innovators
• Nondairy Dessert Leaders
• Other Soyfood Marketers
• Table 3-1: The U.S. Soyfood Market: Selected Marketers by Brand Line and Product
• Marketer and Brand Shares
• Table 4-2: Leading Soyfood Products Distributed by Nature's Best;
• By Product Segment, 1 st Quarter 2000 (Company/Brand/Product
• Competitive Situation: Overall Market
• Marketers Compete Primarily Through Product Introductions
• Growth Through Mergers and Acquisitions
• Marketers Compete by Offering Branded Ingredients
• Competitive Situation: Meat Alternatives
• Conventional Marketers Compete with Existing Companies
• Newcomers Make Immediate Impact in Mass Market
• Unique Ingredients Draw Consumers
• McSoy?
• Competitive Situation: Dairy Alternatives
• Line Extentions Are Key to Growth
• Conventional Marketers Enter Category
• Specialty Items Help Marketers Carve Out Space
• Coffee Craze Propels Soymilk Distribution
• Flavored Drinks Capture Attention
• Competitive Situation: Non-Dairy Desserts
• Retail Space Limited for Frozen Desserts
• Soy Yogurt Companies Revitalize and Introduce Products
• Competitive Focus: Other Soy Products
• Soy Meal Replacements Compete on Price
• Soy Finds Home in Snack/Sports Bars Find Ho
• Competitive Profile: Eden Foods, Inc.
• Competitive Profile: Imagine Foods, Inc.
• Competitive Profile: Kellogg Co.
• Competitive Profile: Lightlife Foods, Inc. (ConAgra, Inc.)
• Competitive Profile: Turtle Island Foods, Inc
• Competitive Profile: Vitasoy USA, Inc
• Competitive Profile: White Wave, Inc.
• Marketing Trends
• Updated Packaging
• Innovative Containers Sell Product
• Soy Protein Content Listed
• GMO-Free; Organic the Next Step
• Pushing into New Distribution Channels
• Advertising Trends and Expenditures
• Advertising Difficult to Monitor
• Print Advertising the Preferred Medium
• Advertising Positioning

Chapter 4 New Products and Product Trends

• Product Introductions Rising
• Table 4-1: The U.S. Soyfood Market: Number of Product Introductions, 1998-2002
• Variety of Soyfoods Growing
• More Meat-like Products
• Convenience Is Key
• Single-Serve Is Big
• Low Fat Still Desired
• Organic Becoming More of An Issue
• Products Geared Toward Demographics: Soy for Youth
• New Flavors and Varieties; Many Gourmet and Upscale
• Ethnic, Especially Thai and Asian, Fusion
• Table 4-2: The U.S. Soyfood Market: Selected New Product Introductions, 2001-2003

Chapter 5 Retail and Foodservice Strategies

• Two Distinct Channels
• Mass-Market Products: Warehouse Delivery Used Most
• Natural Food Products: Independent Distributors Used Most
• Health and Natural Product Distributors
• Ethnic Food Distributors Service Asian Grocers
• Supermarkets Are Main Channel for Sales
• Table 5-1: Share of U.S. Soyfood Sales by Retail Outlet Type
• Foodservice Strategies
• Soy-Themed Restaurants
• Starbucks and Soy: Perfect Together

Chapter 5 The Consumer

• Consumer Attitudes Toward Healthful Eating
• Nutrition Important in Food Choices
• Americans Try to Eat Healthfully
• Consumers Increasingly Seek Information on Soy
• How Does Soy Fit Into The Health Trend
• Sources of Soy Information
• What Motivates Soy Consumption?
• Eating Healthy for Specific Reasons
• Consumer Awareness of Soy on the Increase
• Awareness of Tofu Highest
• Majority Deem Soy Products "Healthy"
• Consumer Awareness of Soy's Benefits
• Consumers Hear More About Soy
• Consumer Use
• Estimates of Soy-based Food Users
• Consumption Increases
• Table: Consumer Use of Soy on a Weekly Basis
• Top Soy Products Tried by Consumers
• Soy Products Purchased in Health and Natural Product Stores
• More Than One in Three Have Tried Meat Substitutes
• Soy Protein Added to Existing Foods Is Another Choice
• Consumer Profiles
• Traditional Soyfood Customers
• New to Soy
• Youth and Soy
• Back and Forth?
• The Vegetarian Consumer
• Types of Vegetarians
• Teenagers Choosing Vegetarianism
• Market for Vegetarian Products Broader
• Demographic Characteristics
• Income
• Region
• Household Make-up
• Race/Ethnicity
• Age

Chapter 7 Trends and Opportunities

Appendix I: Addresses Of Selected Marketers