Hain Celestial: the cost containment challenge

As food companies jostle for organic product market share, one company is confidently snapping up important minor players. Hain Celestial's [HAIN] latest acquisition of Acirca Foods reinforces its position as a major force in the specialty market, but cost containment will remain a major challenge for Hain's and the entire organics and specialty products industry.

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Kraft: cutting itself down to size

As US obesity levels rise, Kraft [KFT] has been under increasing pressure to promote a healthy lifestyle. After a court case involving Kraft's Oreo biscuits, new reforms are set to reduce portion sizes and to remove all advertising from schools. While Kraft's move makes sense, it will not be able to completely distance itself from the obesity issue.<BR />

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Food: US consumers will eat out more in 2007

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On-trade drinking: US market to grow at just 1.3% CAGR

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CKE Restaurants: keen on lean

CKE Restaurants [CKR] is preparing to test market its new 'bunless' burger - aimed at patrons of the Atkins diet. The move reflects a growing trend as retailers seek to cater for increasingly health conscious consumers. What was once a niche market is quickly developing into a crucial target group.

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Whole Foods Market: organic prices remain a barrier

The comparatively high price of organics has been shown to be a stumbling block to market growth. Given that the higher prices typically reflect the true costs of production, manufacturers and retailers worldwide need to place more emphasis on consumer education and price justification.

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Pizza Hut: delivering reduced fat

Weighing in with a lower-fat pizza offering, Pizza Hut is the first major pizza chain to launch a national better-for-you product in the US. With plans for packaged salads to accompany deliveries later this year, Pizza Hut looks to be doing what it can to help the nation's waistlines. Whether it can service those on the highly popular Atkins diet remains to be seen.

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Wrigley: a new TV push

Wrigley's [WWY] latest promotional push comes during an exciting time for the gum market. Increasingly sophisticated product innovation has led to renewed manufacturer and consumer interest in the segment. However, promotions must avoid becoming overly scientific, especially in a category where image is so important.

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Atkins diet: high profits for some, losses for others

The US bread industry is expected to hold a crisis summit to discuss the recent fall in sales due to rising interest in protein-rich, low carbohydrate regimes such as Atkins. While Atkins has propelled sales for low-carb alternatives, high carbohydrate staples like bread and pasta could suffer significant losses if Atkins is here to stay.

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FTC: help needed to stop false advertising

The US government is failing to stem the tide of false weight-loss advertising through regulation alone. Educating consumers and rallying the media industry is a positive next step. However, there is no shortage of consumers desperate to believe such claims, or media sources willing to accept any advertising dollars. As such, the effectiveness of this campaign will be difficult to monitor.

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