Soy Retailers Capitalize on FDA Approval of Heart-Health Claim
Published: Wednesday, December 01, 1999
FDA says that 25 g of soy protein a day as part of a low-fat, low-cholesterol diet may reduce the risk of heart disease. Foods with 6.25 g of soy protein per serving can bear the heart-healthy label.
Cereal-giant Kellogg Co. (K) on Oct. 25 said it’s developing a soy-based cereal but declined to give details or to discuss the size of the U.S. market for soy products. Kellogg in October agreed to acquire meat-alternative products manufacturer Worthington Foods (WFDS) for $307 million (see Natural Business, November 1999, pg. 1).
Suiza Foods (SZA), which holds a stake in Horizon Organic (HCOW), says its Morningstar division will launch by the second week of January a soy-protein beverage called Sun Soy. Bing Graffunder, president and CEO of the Morningstar division, says the beverage was developed in 1999 and will be available in the refrigerated dairy section of supermarkets.
For the two weeks following the announcement, Pittsburgh-based vitamins, supplements and sports-nutrition retailer General Nutrition Cos. (GNC) experienced a 36% increase by dollar volume in sales of soy products, according to Roberta Gaffga, VP of training and communication at GNC.
Gaffga will not discuss a specific dollar amount, but, she says, “It’s pretty significant.” During the same period, GNC also saw a 50% increase in the total number of soy units sold. The growth is on target with the company’s expectations, Gaffga says.
Gaffga credits retail strategy, planning and response time for GNC’s soy sales increases. In conjunction with FDA’s announcement, the company launched its “Soy You Can Enjoy” campaign, designed to teach consumers how to get the recommended 25 g of soy protein in their daily diets. The campaign includes freestanding soy centers that were installed in all corporate GNC stores in anticipation of FDA’s announcement. Each soy center features current soy research, recipes, serving suggestions and a range of soy products including baking and shake mixes, soy nuts and bars, and soy supplements.
GNC also is launching in January a media campaign that includes $2 million in TV advertising plus a print campaign that kicks off in March. In addition, GNC has a soy section on its website.
Other companies jumping on the soy bandwagon include Con Agra (CAG), General Mills (GIS) and Campbell Soup Co. (CPB). All told The Wall Street Journal that they are exploring ways to put soy protein into their products.
Sales of soy foods in the U.S. are expected to reach $2.14 billion in 1999 and could increase to $2.26 billion in 2000 and $3.7 billion in 2002, says Peter Golbitz, president of the Bar Harbor, ME-based market research firm Soyatech Inc. The growth is due, in large part, to the popularity of meat alternatives, sales of which are expected to grow 45% in 1999, according to Dow Jones. At present, about 15% of Americans eat at least one serving of soy per week, according to the United Soybean Board.