I have to admit that I didn’t know that there were such things as phoods (products at the intersection of the foods and pharmaceuticals). Well there are and it is believed (hoped) that the 50+ are going to avid customers for the stuff.
The Wall Street Journal published an article about Nestle (With Food Sales Flat, Nestle Stakes Future on Healthier Fare) but it covers the whole subject of the food products, laced with a tinge of health giving pharmaceuticals. The WSJ article might be for subscribers only. A slightly abridge version of the article can be found on this site.
There are several things of interest about this article. Firstly, the industry statistics make fascinating reading. I didn’t realize how little growth there is in the food business and how many product failures there have been.
Secondly, how much hope for the future is based upon this premise”.. aging baby boomers increasingly willing to spend to protect their health…. “ Not only is the industry seeking this group to drive sales but it will be sales of much higher margin products and products that it will difficult for the Wal Marts of this world to copy. I instinctively feel that the assumption is right but it would be good to see it substantiated by research.
Finally, the importance of the health dimension to foods – mainly driven by the fear of the government and consumer backlash to the rise in obesity. "Ten years ago, health and wellness represented less than 1% of a food company's portfolio," says Hrishi Batticharya, former head of nutrition research at Unilever. "Today it's 5% and tomorrow it will definitely be 10%. This is a significant growth area."
This is a long article but well worth reading, even if you are not a marketer in the food industry.
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