A Mars a day to keep the doctor away?
Published:16-September-2005
By BR staff writer
Mars has unveiled a new product range that claims to satisfy chocolate lovers' cravings while also being good for the heart. With obesity on the rise, and following clampdowns on junk food in US and European schools, entering the health foods market could be a good move. However, Mars is not the only one to realize this, meaning it could face stiff competition.
As consumer tastes are becoming increasingly focused on health issues, confectionery companies are having to think of ways to diversify their offerings. A recent Datamonitor survey found that 45% of people in the US thought improving physical health through diet was important, and 28% believed it to be very important. Coupled with the fact that 59% of US consumers took active steps to improve their health through diet in 2004, the reasons for Mars diversifying from its usual offerings are clear.
CocoVia snack bars were released two years ago but were only available online. Now Mars has expanded the CocoVia line and is set for a US retail rollout in October. The products should prove popular with both dieters and those concerned about cardiovascular health. For example, the 0.78-ounce CocoaVia Original Chocolate Bar contains 100 calories, and each serving of CocoaVia contains at least 100mg of cocoa flavanols.
Despite a slowdown in the world chocolate market due to concerns over obesity, Datamonitor predicts the US chocolate market will expand at a compound annual growth rate of 1.4% from 2004 to 2009, rising to a value of over $14 billion by the close of that timeframe. The US functional health foods market is also proving to be a lucrative one, having grown from $18.9 billion in 1998 to $28.1 billion in 2003. This growth is expected to continue, at a CAGR of 6.6% between 2003 and 2008. Of particular relevance to Mars is the fact that the tremendous growth in this sector has been driven largely by the bakery and cereals, beverages and confectionery categories. This all indicates that Mars' emphasis on 'healthier' chocolate should be a success.
However, although Mars has patented a blend of 'heart-healthy' cocoa flavanols and cholesterol-lowering plant sterols from soy, the company is not alone in creating this kind of product. Hershey, for example, recently announced plans to launch an extra dark chocolate bar that flaunts the potential benefits of dark chocolate, and others are sure to follow suit.
Indeed, since 2004, the Productscan Online database of new products has recorded more than 20 healthy chocolate bar releases globally. These include Living Fuel's Living Fuel Rx Cocoa Chia Snack Fuel Bar, which claims to support heart health and normal cholesterol, and New Health Valley's Heart Wise Bar, which was promoted as a heart-health bar containing carowise natural plant sterols to lower cholesterol.
As an estimated 10% to 15% of US school-age kids are overweight or obese, according to Time magazine, more restrictions on junk food can be expected. Furthermore, the need for food manufacturers to focus on healthier food offerings - sooner rather than later - is clear, as increased legislation on advertising and distribution systems and health awareness begin to eat into snack food sales.
This is particularly important for major players such as Mars, which held an 30.4% share of the US chocolate market in 2003. Leading companies like Mars could be significantly affected by changes in the market due to their huge shares in this market. However, their leading positions put them in the enviable position of having the resources to invest in new, healthier products supported by well-recognized brand names, distribution networks and marketing power.
