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SECTION 3 - Saskatchewan Grocery Retail and Foodservice Value ...

SECTION 3 - Saskatchewan Grocery Retail and Foodservice Value ...

Section 3all respondents

Section 3all respondents “strongly” (12%) or“somewhat” (25%) agree that theyseek out natural and organic foods andbeverages.The organic food trendis now mainstreamand has crossed alldemographic groups.Organics were originally targeted at women (25-45) with families seeking the healthiest optionsfor their children. The trend has now becometrans-demographic, migrating first down to 17-24year olds and now up to the older generations(45-65).The growth in the organic meat market andpoultry market is substantial and fast food organicrestaurants are opening in the U.S. and Canada.The primary issue facing the organic sectoris supply not consumer demand. The cost oforganic inputs has increased significantly (cornup 60%, soy and oats up 10% and 30%) with theresult that supply is being curtailed as farmerscannot get good returns on dairy and meatproducts.NaturalOverall projections are that the marketfor natural and organic food productswill grow by 103% between 2010 and2015, with total annual sales exceeding$78 billion in 2015. Helping to fuelgrowth are recent moves by majormarketers and manufacturers seekingto capitalize on consumer demand forthese products. At the beginning of 2011,Frito-Lay North America, the $13 billion snackfood division of PepsiCo, announced that bythe end of the year, approximately half of itsproduct portfolio will be made with all naturalingredients. The change will affect three ofFrito-Lay’s biggest brands: Lay’s potato chips,Tostitos tortilla chips, and SunChips multigrainsnacks.However, there is evidence of growingconsumer distrust in the term due to a lackof clear definition by the FDA. For example:in 2007 Cadbury Schweppes faced lawsuitsafter making a “natural” label claim on 7UP.The label was changed before any legal actionwas taken. Tyson Foods withdrew claims on itslabels stating that their chickens “were raisedwithout antibiotics” after it became subject toa lawsuit. Tyson qualified the claim to read“chickens raised without antibiotics that impactantibiotic resistance in humans”. That label wasalso withdrawn by the company in 2008.Natural foods are generally considered in theindustry to be processed foods without anyartificial ingredients or preservatives.A February 2011 Packaged Facts consumersurvey found that 38% of adults who are groceryshoppers regularly buy organic groceries, and58% buy packaged food products marketedas “all-natural” (but not organic). Furthermore,the Packaged Facts survey found that 37% of8Industry ResponseThe food industry has responded to consumersconcerns about health and wellness bydeveloping and marketing products that directlyaddress these concerns. The response insome areas has been rapid (functional foods,organics, convenience and natural); slow inothers such as trans-fat reduction, and salt andsugar reduction.

SECTION 3 - Saskatchewan Grocery Retail and Foodservice Value ...
SECTION 3 - Saskatchewan Grocery Retail and Foodservice Value ...
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