Let There Be Lite

By New Year’s Day 2006, consumers will be able to pick up a box of chocolate donuts in the grocery store and scan the nutrition label for the amount of trans fatty acids in the product.

Whether they put it back on the shelf or not is yet to be determined, but more than half the population, or 53%, frequently scrutinize food labels looking to avoid harmful substances like fat, cholesterol, sugar and additives. That’s up from 51% in 2002, according to The NPD Group.

Adding trans fat content data to food labels signals the first significant change the Food and Drug Administration has required for the Nutrition Facts panel since it was established in 1993. Trans fats will be listed directly under the line for saturated fat. Scientific evidence, which showed that consuming trans fats, saturated fat and dietary cholesterol increases the risk of coronary heart disease, was the impetus for instituting the labeling change.

“This label change means that trans fat can no longer lurk, hidden in our food choices,” Mark B. McClellan, the commissioner of the FDA says.

The FDA estimates that between $900 million and $1.8 billion each year will be saved in medical costs, lost productivity and pain and suffering, by changing the regulations. It also estimates that 600 to 1,200 cases of coronary heart disease and 250 to 500 deaths each year will be prevented.

The FDA isn’t stopping there. It hopes to make more improvements to nutrition labels to provide clear, up-to-date guidance on a healthy overall diet. It plans to increase the focus on health in food product development as well as how those foods are promoted. It plans to spur greater science-based competition among food producers to improve health and has taken enforcement action against companies that make misleading health claims that are not accurate and science-based.

As America undergoes a major makeover, losing weight and eating healthier for the first time in six years, a fresh flood of food choices and promotions have been unleashed.

Marketers have been quick to capitalize on the low-carb diet trend with claims on packaging, coupons and in-store materials; but some watchdogs say that the FDA needs to establish guidelines to define “low carb,” for consumers as well as the industry.

“We’re not marketing any of our products as low carb because the FDA doesn’t recognize that,” says Sarah Delea, a spokesperson at Kraft Foods. “We want to do it responsibly, so when we’re talking about a product it fits nutrition research and supports what the FDA is thinking as well as what science is finding.” The FDA is looking into the matter.

“It’s something that we’re aware of and the FDA is currently exploring the need to define low carbs,” an FDA official says.

“Low fat,” “fat free” and “trans fats” have already been defined by the FDA.

Last year, the FDA put a process in place to review such health claims. Effective Sept. 1, 2003 the FDA requires that all health claims be reviewed by the agency before they appear on labels.

“If you’re making a qualified health claim on conventional foods, you have to go through this process,” the FDA official says. “We approve the claim or disapprove it depending on the level of scientific evidence.”

Frito-Lay has already eliminated trans fats from its six biggest snack chips brands — Lays, Fritos, Ruffles, Doritos, Cheetos and Tostitos, plus Rold Gold Pretzels — and launched a campaign to tout the change. P-O-P and P-O-S materials begin appearing this spring in some retail locations to draw attention to the products. Food manufacturers have until Jan. 2, 2006 to comply with the new trans fat labeling changes.

Frito-Lay is also testing two new low-carb products, Doritos Edge and Tostitos Edge, which have 60% of the carbohydrates of regular Doritos and Tostitos. Soy proteins and fiber are used as substitute ingredients. The tests are being conducted in Subway restaurants in Phoenix, AZ, and plans call for a national roll out in May.

And this month, Miller Brewing Co. debuts a low-carb flavored malt beverage, SKYY Sport. In-store merchandising including the low-carb message will build awareness for the summer season, when 50% of sales are generated. Samples will be doled out at events across the country this summer.

Some retailers are segmenting out low carb and other healthful products for ease in consumer shopping.

Wal-Mart, in January, opened Zero Carbohydrate destinations in its super centers, or 1,430 of its 2,966 stores.

“Our customers are making it very clear to us that they’re limiting their carb intake and are looking for low or zero carbs when shopping with us,” says Danette Thompson, a Wal-Mart spokesperson.

The destination incorporates local flavors as well as general items like sugarfree candy from Russell Stover and Hershey’s, baking mixes and pasta selections from Atkins, wheat and white bread offerings from Sara Lee, and Diet-Rite.

“We’re getting lots of interest from retailers around the country who are trying to offer lower carb or healthier choice products,” says Jim Trebilcock, senior VP-marketing at Cadbury Schweppes Americas Beverages, which produces Diet Rite through its Dr Pepper/Seven Up subsidiary.

In January, Diet Rite promoted a new zero-carbs message in a national ad with a coupon to be used at Kroger grocery stores and launched a direct mail campaign targeting female households in major Diet Rite markets. Two more waves drop in April and August. The mailings are timed to coincide with New Year’s resolutions, preparing for summer and back-to-school. Sampling will take place throughout the year.

The race to be out first with healthier foods and beverages is certain to spark competition among rival brands.

Pepsi-Cola Co. and Coca-Cola Co. are likely to duke it out, with both reportedly looking into a lower-calorie version of their originals, termed “mid-calorie” colas. The companies are tight lipped about the reports, which say the new products would be distinct from the diet versions of the colas.

“We are exploring a whole range of products under the health and wellness umbrella,” says Dave DeCecco, a spokesperson for Pepsi. “We consider new products everyday.”

DeCecco confirmed that Pepsi has recently applied for a trademark for Pepsi LS, which news reports speculate stands for “low sugar.” He declined comment on what the letters stand for.

Coke was equally secretive.

“Innovation is at the heart of everything we’re doing at the Coca-Cola Co. and we’re always looking for ways to strengthen and expand the franchise,” the company said. “We’re developing and testing a broad range of products and that’s our job. Right now we’re not in a position to confirm or deny any speculation.”

Cadbury Schweppes continues consumer research on a mid-calorie Dr Pepper product it has been conducting since last summer. No decisions have been made.

“It’s ongoing research to determine if a mid-calorie product is something consumers desire,” says spokesperson Mike Martin.

Richard George, professor of food marketing at St. Joseph’s University, says that all the media attention and marketing of low carb and other healthy offerings has consumers confused.

He says Americans are looking for ways to sort through the morass, which affords marketers a tremendous opportunity to educate the consumer as well as differentiate their brands.

“I think we have to be very clear how we position our products and offerings to educate consumers, so that when consumers want to get back in the mainstream, which I think is inevitable, we are still perceived as the brands we once were,” George says.