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March 22, 2004 Presentation to Canola Council of Canada Bob Messenger, Publisher & Editor, The Morning Cup,

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Presentation on theme: "March 22, 2004 Presentation to Canola Council of Canada Bob Messenger, Publisher & Editor, The Morning Cup,"— Presentation transcript:

1 March 22, 2004 Presentation to Canola Council of Canada Bob Messenger, Publisher & Editor, The Morning Cup,

2 ► More than 40% of products on grocery store shelves contain trans fats ► Trans Fats in 95% of cookies, 80% of frozen breakfast foods, 75% of salty snacks and chips, 70% of cake mixes and almost half of all cold cereals Winnipeg Sun “Trans fats fall into the category of ‘killer.’ [It is] ‘toxic garbage’ and should be banned altogether … Trans fats are toxic and only one molecule away from plastic.“ Pat Martin Winnipeg NDP MP (Heart & Stroke Foundation) (US Census Bureau) Health & Nutrition

3  Low-carb Michelob Ultra - Anheuser-Busch's most successful launch since Bud Light  H.J. Heinz introducing low-carb ketchup  Panera Bread developing low-carb variety  Russell Stover and Hershey both introduce low-carb candies; Carbolite makes gummi bears as well as ice cream  Hardee’s (Thickburger), Subway (Atkins Wrap), other fast-food chains develop low- carb alternatives

4  By 2010, all food and beverage products will offer one or more significant wellness benefits (functional, nutraceutical, medicinal, organic, soy-based, natural, etc.)  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

5  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

6 Customers for new products will be increasingly defined by culture, with emphasis on America’s growing Latino influence The Changing Face of America Cultural Diversity

7 “Coach treats us like men. He lets us wear earrings.” U niversity of Houston Football Player

8  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 The Hispanic Factor

9  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 The Vending Boom

10  Beverly Hills, Calif.-based Pure Foods rolling out line of low-carb vending machines featuring 17 snacks and 8 low-carb beverages. Includes Atkins-brand Shakes and snack bars, and variety of other health-oriented snacks

11  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 Illustration by Paul Vilser, The Morning Cup “C” For Corporate Stores

12 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

13 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.

14  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 The Internet Factor

15  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. (, a New York-based Internet research firm)

16 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

17 “If we had asked the people what they wanted, they would have said faster horses!” Henry Ford Bob Messenger, Publisher & Editor, The Morning Cup,

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