Healthy Snacks, Kid's Items and Dinner Take-out Top the Wish List of Dairy, Deli and Bakery Shoppers

For Immediate Release
For more information contact Jessica Hughes (jhughes@iddba.org or 608.310.5000) or Dr. Elizabeth Sloan (760-822-4321).

Madison, WI, June 13, 2008 — With more than $120 billion in sales in 2007, the healthy-food segment holds enormous new opportunities for dairy, deli and bakery operators, reports Dr. Elizabeth Sloan, President of Sloan Trends Inc. whose firm compiled the International Dairy Deli Bakery Association's Health & Wellness 2008: The Purpose-Driven Consumer study to be released this summer.

Sloan pointed to a resurgence in lite, low-fat, and low-calorie foods, citing that actions for weight loss are at an all time high, while dieting is at an all time low. While interest in portion sizes, whole grains, and natural products continue to soar, demand for reduced sodium, antibiotic/hormone free, humane-certified and locally-sourced foods are other trends fast gaining momentum. Health & Wellness 2008: The Purpose-Driven Consumer provides insight into these and many more key health and wellness trends and identifies those that present sustainable opportunities for the dairy-deli-bakery industry.

Healthy Snack Trends Open Whole New Door for Deli and Bakery Departments

There is a key opportunity for stores to capitalize on the trend to restaurant-sourced snacks, which equaled $12.1 billion in 2007, by offering healthy grab-and-go snack options in the dairy, deli and bakery departments. Healthy snacks topped shoppers' wish list for new items in these departments.

With America in the midst of its largest baby boom in history, healthy items for kids are another huge opportunity. Parents who responded to the survey said they were most interested in having more healthy kids' snacks in the deli and bakery departments of the store.

Healthy take-out meals are another key opportunity with diners cutting back on restaurant visits and switching to supermarket to-go foods. One in five consumers have replaced restaurant takeout with supermarket prepared foods.

Dairy-Deli-Bakery (D-D-B) Consumers Are True Believers in Food's Link to Health and Wellbeing

The vast majority of D-D-B shoppers (98%) believe that food has a direct effect on their health and well-being. While D-D-B shoppers' attitudes about health are similar to all shoppers, they differ in three distinct ways:

• They are more avid label readers, suggesting that operators pay particular attention to healthy in-store signage and ingredient information
• Frequent deli and bakery shoppers (3+ times per month) are more likely than the average shopper to indulge themselves on occasion. Seventy-seven percent admitted that they may eat less healthy foods they enjoy more, but at the same time try to balance their diet with healthy options.
• D-D-B shoppers were also more likely to make an effort to buy natural/organic with the exception of full-service bakery consumers.

Shoppers Making Food Choices for Health Impact Some Dairy-Deli-Bakery Categories

Although the frequent Deli and Bakery customer is more likely to say they balance healthy foods with less healthy foods they enjoy more, they indicate substantial changes to their purchases of many "less healthy" options in the dairy, deli and bakery sections of the store.

When asked if they purchased items more often, less often or the same during the past 3 months, the biggest gainers were healthier items such as reduced fat milk (+30%), whole grain bakery products (+29%), and yogurt (+19%). Items with the largest loss include fresh baked desserts, down 24%, deli salads such as tuna and potato (-20%), and fresh take-out deli meals (-20%).

Importance of Label Claims to Deli, Dairy and Bakery Shoppers Show Freshness is Key

Freshness and sell by/use by date were the most important attributes to Dairy/Deli/Bakery shoppers. Interestingly, messages such as "no hormones or antibiotics" and "no additives and preservatives" were rated important by at least 30% more shoppers than "natural" or "organic."

Where and How Food is Grown/Raised is of Increasing Concern and Importance to Shoppers

The importance of freshness is taking on a whole new meaning to consumers. They not only want to be assured that the foods don't contain any hormones, antibiotics, additives or preservatives, they now prefer that it is locally raised or grown. Locally raised/grown is important to 57% of all shoppers, while more than one-third find "farm-raised" an important product claim, followed by "humane treatment certified," 30%, free range, 25% and cage-free, 22%.

The full report will be released by IDDBA this summer.

Information on IDDBA's research, education, and other industry activities is also available on the Web site, www.iddba.org, or by calling 608.310.5000. Now in its 44th year, IDDBA specializes in promoting the dairy, deli, cheese, and bakery industries. Member companies enjoy many benefits and services including the annual seminar and expo, leading-edge research, video and CD-ROM training programs, management tools, on-line training, an annual trends report, and a member directory of key industry contacts.

Jessica Hughes, Communications Coordinator
International Dairy-Deli-Bakery Association (IDDBA)
636 Science Drive, Madison, WI 53711-1073
PO Box 5528, Madison, WI 53705-0528
Tel: 608.310.5000 Fax: 608.238.6330
jhughes@iddba.org