Canola Council of Canada

Riding The Wave: Canola & The Consumer

Bob Messenger
Publisher and editor of the Morning Cup


SLIDE 1: The Overweight Crisis and the Solutions

  • Clearly, health and nutrition drives product development and growth in today’s food industry. Food manufacturers are scrambling to "contemporize" their established product ones while working quickly to develop new ones.
  • The momentum toward further development of foods accommodating prevailing wellness standards: 60% of Americans are overweight; 66% of Canadians. It’s beyond epidemic.
  • Trans fats, carbs … are major issues and must be addressed. Trans fat hysteria especially good news for canola growers and processors (40%, probably more, of foods in supermarket contain trans fats.

SLIDE 2: Wellness - An Irreversible Trend

  • The push toward low-carb "fixes" for both packaged and restaurant foods is irreversible … don’t believe hype suggesting this (and the trans fat momentum) is more fad than long-term trend.
  • Notice that all the major players in the food industry, on both sides of the border, are reacting strongly to low-carb developments, even in difficult segments like confections and bakery.
  • The next momentum after low-carb…will be trans fats. This will be equally as difficult to tackle …. TASTE will always be defining factor in consumer food choices, so processors and restaurateurs will have to be very certain about the quality of products they develop to accommodate these trends.

SLIDE 3: Wellness Demands To Drive Growth

  • By 2010, I predict all food and beverage products will offer one or more significant wellness benefits (trans-free, low-carb, low- or no-salt, functional, nutraceutical, medicinal, organic, soy-based, natural, etc.) … American and Canadian consumers are demanding this attention to health and the food industry, which does not create demand, but follows it, will have to respond.
  • Fusion of food and dietary value components will be building block for 2010 success, a response to growth in medical knowledge and its relationship to health and nutrition.

SLIDE 4: The Vegetarian Makeover

  • By 2010, majority of Americans and Canadians will consider themselves "vegetarians," ranging from minority hard-core vegans to majority traditional and pseudo-veggies.
  • Majority will identify themselves as vegetarians even though many will continue to consume non-vegetarian food such as meat, snacks, dessert, etc., but not as often and in smaller portions.
  • Only non-vegetarian food products that offer health and nutrition benefits will succeed in this environment.

SLIDE 5: The Changing Face of America

  • Customers for new products will be increasingly defined by culture, with emphasis on America’s growing Latino influence. We are transforming into a Nation of Tribes
  • There are wholly ethnic towns and villages within large U.S. urban centers (e.g., Little Havana in Miami) where the English language is seldom spoken.
  • Like Canada already has, U.S. is moving ever closer to nationwide bilingual labeling and advertising, but, unlike Canada, it will be English and Spanish that will drive this change … Manufacturers who do not connect with this "truism" will be left on the fringes of the mainstream marketplace.

SLIDE 6: The Life Choice Factor

  • The image of an "innocent" America of the 50s is long gone. Today, society is being defined by a preference for "personal lifestyle choices" – the current Gay Marriage Movement in America exemplifies how culture is redefining itself, but not without controversy. I.e., John Wayne finally, really, at long last…is truly dead in America.
  • I see the day when the North American food industry will be developing culture-specific products not only to particular ethnic segments of society, but also for life-choice consumers, such as Gays and Lesbians.

SLIDE 7: Hispanics - The Majority Minority

  • 13% of US population is Hispanic.
  • Nearly 40 million Hispanics now reside in US.
  • Hispanic population of the United States will increase by almost 25 million people by 2020, to 60.4 million.
  • Mexicans currently comprise 66.9% of US Hispanic population.
  • Hispanics are largest and fastest-growing ethnic group in the United States.

SLIDES 8 & 9: The Vending Boom!

  • Vendable foods and beverages will be new super distribution channel by 2010
  • Prominent in office and apartment complexes; vending-only centers (similar to c-stores); on street corners, and, in some cases, in the home.
  • Vendable foods will include hot meals, ethnic-ready meals, meal combos … with broad selections of sides, desserts and snacks

SLIDE 10: "C’ For Corporate Stores

  • By 2010, large food marketers like Kraft Foods will manage their own chain of c-stores
  • Designed to not only enhance convenience factor for consumers, but also, along with packaged products, featuring kitchens, chefs, etc., providing fresh, prepared hot (and cold) meals utilizing diverse portfolio of Kraft’s brand name products

SLIDE 11: The Wal-Mart Universe

  • Wal-Mart is world’s largest retailer.
  • Wal-Mart Supercenters will continue to steamroll competitive landscape – to tune of about 200 new units a year.
  • Wal-Mart will consume almost a third of expected growth in US spending on grocery and drug products during 2003-2007; would give Wal-Mart control of 35% of food store industry sales and 25% of drug store industry in the U.S.
  • Wal-Mart was sued 4,851 times in 2000––or about once every 2 hours, every day of the year.Wal-Mart lawyers list about 9,400 open cases," according to USA Today

SLIDE 12: Supermarkets Fighting Back

  • Supermarkets will eventually have to accommodate on-the-go consumers in North America with quick-service drive-throughs.
  • Customers can order in the morning or afternoon and have their hot or cold meals and desserts ready when they drive through.

SLIDES 13 & 14: The Internet Factor

  • By 2010 marketers will be doing minimum 25%-30%, or more, of their sales via Internet marketing.
  • New products will be designed ONLY for internet sales.
  • Bulk-quantity sales will prosper and become brand-name marketers’ answer to Sam’s Club and other warehouse operations where bulk is boss.
  • Americans 50 and older increasingly using Internet to shop.
  • More than 33 million, or 43 percent, of Americans age 50 and older have been online. (Source: "A Nation Online," a Commerce Department study released in February 2002)
  • 54 percent of those under the age of 55 had bought online, while 42 percent of those over 55 had done so.
    (eMarketer.com, a New York-based Internet research firm)

SLIDE 15: Thinking Outside The Box

  • Engage, educate, excite and enlighten; consumers need to know health and taste benefits associated with canola oil
  • Provide more leadership in developing unique new product concepts, including convenience-oriented packaging approaches; e.g., sponsor annual Creative Retreat for members; two to three days of envisioning and inventing new product ideas
  • Step-up interaction with consumer and trade media to generate greater coverage of canola oil as healthy ingredient; promote speaker’s bureau and steady flow of information
  • Develop more aggressive internet presence; build online bridges to consumer, media and marketer; e.g., online newsletter encompassing world of canola, from product reviews to recipes; offer online purchase of high-quality, branded canola oils
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