Probably more than one marketer squirmed when the Globe and Mail ran a series of front-page stories late last year, which threw the issue of trans fats into stark relief and named names. A variety of marketers, from Campbell Soup Company to Kraft Foods, found themselves suddenly under the gun. But some smart companies, like Voortman Cookies, which removed trans fats (the substance formed when liquid oil is hydrogenated to change it to solid form, such as shortening) from its recipes, have been quick to react – in this case with a PR push that landed a front page story in the Globe – and are turning the trans fat scare into a marketing advantage they can leverage against competitors.
To be fair, virtually all marketers are responding in some way, ahead of new labelling regulations scheduled to take effect in 2006 that will require the disclosure of trans fats. Toronto-based Frito-Lay Canada has even taken the unprecedented step of creating a new management position to address health issues. ‘We recognize the concerns that are going on right now so we need to respond,’ says Dan Hua, the company’s new health and wellness leader. ‘So there’s a new position that has been created to really look at this opportunity.’
He points out that Frito-Lay has had baked versions of its potato chips out since 1995, but adds that the company is in the process of producing new labels that will declare the chips to have zero trans fats.
Consumer concern, if not demand, appears to bear out the wisdom of such moves. An August 2003 Ipsos-Reid poll found 93% of Canadians said they tried to be health conscious when making decisions about what to eat. Trans fats have been linked to a higher risk of heart disease, Alzheimer’s and diabetes.
Toronto-based Kraft Foods (parent to Nabisco, which makes the Oreo cookies that were recently the subject of legal action in the U.S.) is also addressing the issue. ‘We have significant [efforts] under way across North America to reduce trans fats in our products where possible,’ says Susan Davison, director, corporate communications.
But because brands like Oreo cookies have a particular taste consumers have come to love, Kraft faces some challenges in reformulating recipes to maintain that taste.
Says Davison: ‘Consumers are looking for a specific taste and texture and quality in their Oreo cookies so we need to be able to offer them the product that they’ve come to expect from us.’
Other marketers are perhaps in a more natural position to take advantage of the fear of trans fats. Kelowna, B.C.-based Sun-Rype makes a variety of healthy snacks, all of which it claims possess no trans fats. Barb Grant, communications manager, says healthy living – not just eating – has always been the marketer’s central message, as evidenced by some of the programs it runs that are designed to keep children active.
However, true to its word, attacking trans fats as a singular issue isn’t something Sun-Rype plans to do. ‘It could be part of the overall story, but our overall story is premised on the importance of fruits and vegetables in your diet,’ says Grant. ‘We always promote a balanced approach and would not focus on just one singular aspect of healthfulness.’
Sun-Rype has nevertheless been the beneficiary of an increase in consumer awareness about health issues. For instance: a 2003 national back-to-school campaign garnered a 10% increase in awareness of Sun-Rype’s Fruit To Go snack. (Sun-Rype’s agency is Palmer Jarvis DDB in Vancouver.)
Strategy asked creatives, analysts and industry executives to comment on staying lean and mean in a new era of fat fright.
Wendy Evans, president, Evans and Company Consultants, Toronto
If you’re doing something to benefit the public I think I would talk about it, but I’d want to make sure I had everything right before I talked about it. That’s a fault of many companies – there’s a lot of talk sometimes without the results.
[Even if you aren’t first to market], you should still respond. You don’t want to position it as a me-too strategy but rather as ‘We are dealing with you, our customers, and your interest.’ Maybe you do it in a different and catchy way. But more and more people are thinking about health so that’s not going to go away. And the good corporate citizens are going to be the winners.
[It’s important] to be straightforward and honest with the consumer. Nabisco has said it is doing some reworking of its [Oreo] recipes and that’s a step in the right direction.
[Frito-Lay creating a health and wellness management position] is a great strategy because it is capitalizing on a trend that is happening and is only going to grow. It’s going to be good for their top line and bottom line. It’s going to increase consumer trust.
Nick Jennery, president, Canadian Council of Grocery Distributors, Toronto
We’re all in the same business, and that is to provide consumers with choice. And we’ll continue to do that more so now than ever before. There has never been a time when there were more SKUs and more choices within the four walls of a grocery store than what you see today.
What I am seeing is a lot of activity around new product development and innovation. Particularly with the new product labelling regulation, there’s much more declaration of ingredients and there’s more knowledge of what the impact of those ingredients are.
It used to be that the majority of shelf space was for dry groceries but now the majority is for fresh, ready-to-eat food – and that includes produce, fish, etc. One of the things you’ll see particularly in the new and renovated stores is a much greater accent on healthy choice, whether it’s variety of produce, supplements or organics – and they’re all showing tremendous growth.
Dan Pawych, CD, Downtown Partners DDB, Toronto
We all know trans fat is a consumer health issue these days and consumers are looking for guidance and the easiest nutritional message in products.
I don’t think [every marketer has to respond to the issue of trans fats] but probably a lot of them will be compelled to because they’re going to see others jumping in with those kinds of messages.
It is an opportunity [to market new products].
I know from some of the work that we’re doing that the key thing is still the product and the brand that we’re trying to promote versus trans fat.
To us, trans fat is something you can mention but it’s not the focus of the communication.
The concern is that with any hot topic people are very quick to jump on a bandwagon and luckily we’re not doing that.