Baby Cereals & Biscuits Innova Market Insights June 2009 Introduction This review focuses on ‘Baby Cereals & Biscuits’ product launches globally tracked by Innova Database. The review contains information regarding new ‘Baby Cereals & Biscuits’ product launches from January 2008 to December 2008. Market Analysis Company Analysis Positioning Analysis Flavour Analysis Baby Cereals & Biscuits Product Trends Packaging Analysis Conclusion Market Analysis Market Analysis: Top 15 Countries United States and Vietnam are the most active countries in terms of baby cereals and biscuit product launches, followed by UK and China. Despite increasing opposition, the baby food industry continues to grow on account of rising health awareness, the changing roles of women and the expanding and emerging economies. The baby food market has been recording growth over the years due to rising per capita income, migration to urban areas and the increasing number of working women. Company Analysis: Top Companies Company Products Launched Nestlé is the world's foremost Nutrition, Health 26% and Wellness company. The Nestlé NESTLE Developmental Nutrition Plan (NDNP) identifies 16% four major stages of development for babies from HEINZ six months to around three years old. NaturNes 12% is the first wholly natural baby food to be BEECH NUT NUTRITION CORP launched in Europe by Nestle. NaturNes baby 9% foods claims to retain nutrients more effectively NUTRICIA 7% and captures more of the taste of natural GERBER ingredients than competitor products. 5% (www.nestle.com). BEBIVITA GMBH MILUPA 4% Heinz claims that its baby foods are "Everything you could want in a baby food!" and provide 4% "Only the best ingredients for the best nutrition." HIPP GMBH & CO VERTRIEB KG 4% HUMANA GMBH In keeping with the company’s ongoing 3% commitment to innovation and advancing NUMIL nutrition for infants and toddlers, the new Beech- 3% Nut Let’s Grow! foods are the first to feature UNILEVER Beech-Nut’s “No Junk Promise” to mothers. 3% HIPP UK LTD Baby food is a $1.25 billion a year industry in the ORGANIX BRANDS LTD 3% United States. Just three companies--Gerber, Beech-Nut and Heinz--control over 95% of the 2% COW & GATE market (Source: www.cspinet.org) Positioning Analysis Positioning Analysis Positioning Analysis: Top 15 Positioning Categories Positioning Category Products Launched No Additives/Preservatives 13% Product “naturalness” is very important in No Added Sugar 10% Baby food market and it is not surprising that the No Additives/Preservatives Vitamin/Mineral Fortified 9% positioning topped the table. Convenience 9% The DHA positioning should experience Allergy 8% significant growth in the future as this ingredient is increasingly being utilised with DHA 8% associated brain health claims. Digestive/Gut Health 7% Digestive/Gut Health should experience Wholegrain 7% significant growth due to the emerging trend of adding prebiotics and probiotics to baby Organic 6% cereals & biscuits. Vegetarian 5% Companies are focusing on the market Low Sodium potentiality of alternative baby products 4% such as organic, frozen and gluten free Gluten Free 4% items. Added Calcium 4% Natural 3% Added Iron 3% Products may have more than one positioning. No Additives/Preservatives A Natural Choice 13% of products had a No Additives/Preservatives positioning. United States: Beech Nut United States: Comforts For Toddler Let's Grow! Toddler's Cereal Bars with Mixed Berry Flavor. Yogurt Nibbles - Tropical Individually wrapped cereals bars Fruit. No Junk Promise - made with real mixed berry and oats. No artificial colors, flavors, Perfect size for little hands. For MSG or preservatives All- toddlers 12 months onwards. natural ingredients without Naturally flavored with other natural unnecessary salt, sugar or flavors. No artificial flavors or trans fats Excellent source preservatives. of vitamins and minerals for healthy growth and development Wholegrain. Russia: Frutonyanya Buckwheat Porridge with Apples for Babies. Buckwheat porridge with apples, for babies from 5 months. Comes Ukraine: Remedia Non-milk in a foil sachet. Enriched with Instant Oat Cereal for 12 vitamins and minerals. Newborns Older than 5 Sugar free. Gluten free. Milk Months Babies. No sugar, free. No preservatives, colors salt, and preservatives. and flavors. Contains gluten, 21 mineral and vitamins. For 25 servings. Fortifying with Vitamins & Minerals Vitamin and mineral fortification adds value. India: Wockhardt Farex Milk Cereal Based Complementary Food for Babies Stage 2 - Wheat Rice Fruits. Essential to build China: Glanboo Banana immunity. Fortified with ion, zinc, Flavored Biscuits for 6- calcium, iodine, vitamin A. Month to 3-Year Old Baby. Enriched with taurine, potassium, beta- carotene, calcium, and vitamins. Brazil: Cornstarch Based Traditional Baby Food. Enriched in vitamins and minerals (A, B1, Brazil: Nestle Mucilon Zinc, B12, B2, Lacteo Oat and Honey Niacinamide, C, B6, Powder for Babies. Folic Acid, Iron, D). Enriched with calcium United States: Beech Nut Good Morning 2-Pack and 12 vitamins. Peaches, Oatmeal & Bananas for Babies. All Enriched with iron of natural plus added vitamins and minerals. better absorption. Minimal Organic Choices Only 6% of products had an organic positioning. Further growth however, is predicted for the future. Dr. Harvey Karp, noted pediatrician and author of the best-selling book The Happiest Baby on the Block says, “When children develop a preference for fresh foods, parents establish a foundation of healthy-eating habits that will last a lifetime. Parents can build a foundation of healthy eating habits by feeding their babies and toddlers foods rich in fresh, organic ingredients”. Belgium: BioKorn Bis Kids 6 Duo Packs Biscuits for Babies. No added sugar. Organic. Canada: Hot-Kid Organic Toddler United Kingdom: Mum-Mum Organic Rice Biscuits. Organix Finger USDA Certified Organic Rice. Foods 12 Organic Baby Biscuits. Five organic baby United Kingdom: Heinz Organic Pure biscuits naturally Baby Rice. Organic pure baby rice sweetened with enriched with vitamin B1 and with no grape juice and added sugar, suitable for babies from suitable for stage 4 to 6 months onwards, just add 2, from 7 months baby’s usual milk. onwards. DHA Product Launches Thrive From product launch data to date for 2009, product launch numbers will well and truly outnumber those of 2008. The Happy Baby Difference With Organic Source: www.happybabyfood.com Marketing DHA To Mothers Front of packaging promotion for DHA. Malaysia: Heinz Farley's Rusks - Orange Contains DHA, 15 vitamins and minerals, iron, and calcium. Indonesia: Milna Marie Vegetable Flavored Biscuits for Babies. Contains AA, DHA, Indonesia: SGM Vegetable Baby Cereal. prebiotic, calcium, 18 Added with omega 3 (47.5mg/serving), vitamins and minerals. omega 6 (475mg/serving), DHA United States: Nurture Happybellies Organic (2.5mg/serving), prebiotic FOS Multi-Grain Cereal. With DHA + probiotic (43mg/serving), vitamins, minerals, and immunity support. honey. Probiotics Set To Take Off Baby cereals & biscuits containing probiotics is showing promising growth in the global market. 2009 product launch numbers should eclipse those of 2008. Probiotic Baby Cereal & Biscuits Immune health seems to be one of the most important health platforms in baby food NPD at present. Slovakia: Nestle Osmizrnna Bifidus - No Milk Pudding Vietnam: HIPP Milk Pap Mix for Babies. Contains 8 Fruits with Yogurt. Probiotic vitamins and essential milk pap fruits with yogurt, minerals. Contains active for babies from 8 months. cultures bifidus B L. United States: Nurture Happybellies Organic Brown Rice Cereal. Happybellies Organic Indonesia: Cerelac Gold Brown Rice Cereal is the Oats and Prunes Baby only baby cereal that is Cereal. With added bifidus organic and that has BL, DHA and prebio 1. probiotics and DHA. Certified halal. Starting Young With Dietary Fiber (Prebiotics) Indonesia: Promina Instant Cereal for Indonesia: Cerelac Baby Porridge with Indonesia: Promina Cookies Balita. Babies - Swiss Chocolate. With prebiotic Honey and Milk. Enriched with DHA, Soft cookies for toddler, made of FOS, omega 3, omega 6, and lecithin. prebio 1, and easy digest CHE. arrowroot. With prebio, omega 3, omega 6, calcium, and iron. Indonesia: Nestle Cerelac Gold for Babies 8-24 Months. Enriched with bifidus, prebio 1 and DHA. India: Heinz Farley's Rusks for All Ages from 4-6 Months – Original. With prebiotics - supports baby's natural defenses. Good sources of iron and calcium. With added vitamins. Vietnam: Powdered Cereal India: Nestle Cerelac Infant Made with Milky Rice & Cereal with Milk for Stage 1 Fruits For Babies. Contains After 6 Months. prebiotics and DHA. Prebiotics Available Everywhere As Asian and Eastern European markets continue to develop, more specialty products are emerging in these markets. Prebiotic fiber is just one example. China: Glanboo Pumpkin Flavored Biscuit for 6-Month to 3-Year Old Baby. Enriched with dietary fiber, calcium, China: Wakodo Roast Sweet Potato Biscuit for 9- mineral, and vitamins. Month Old Babies and Above. With added dietary fiber (Fructo-oligosaccharides-can act as prebiotic). Healthy Wholegrain Choices 7% of products had a wholegrain positioning. This number should rise as wholegrain is now in more demand. UK: Organix First Organic Creamy Oat Porridge. Organic wholegrain oat flakes with milk, apples and added vitamin B1. Suitable for babies from 6 months onwards. United States: Beech Nut Let's Grow! 7 Grain Nibbles Sweet Potato Snacks for Babies. Made with wholegrain. Canada: Beech Nut Good Evening Whole Grain Brown Rice Cereal for babies from India: Nestle Cerelac 7 months old, or stage 2. Infant Cereal with Milk, United States: Earth's Multi Grain & 5 Fruits Best Organic Whole Stage 4 for Babies from Grain Wheat 12 Months. Semolina Pastina. Cutting Out Salt Where Possible United States: Beech Nut Let's Grow Wakey Flakes Australia: Heinz Cereal Apple Cinnamon Little Kids 6 Rice Oats. All-natural Bars - Banana & ingredients without Honey. Contains unnecessary salt, sugar or 25% less sugar. trans fats. 80% less sodium. Source of dietary fiber. No Ukraine: Remedia Non-milk preservatives. Instant Oat Cereal for Newborns Older than 5 Months Babies. Non-milk instant oat cereal without sugar, salt, and preservatives. India: Heinz United States: Gerber Farley's Rusks for Graduates For Toddlers 6 Months Babies Crackers Made with Whole – Original. No Grain – Cheese. Contains artificial colors, 2g whole grain cracker per flavors, and serving. 25% less sodium preservatives. No than the leading snack added salt. 100% cracker. vegetarian. Vietnam: Heinz Multigrain Banana Breakfast for Babies. Enriched with iron and high in protein. No added sugar or salt. Flavour Analysis Flavour Analysis: Flavour Group Healthy grains and fruit are natural choices for growing bodies. Incorporating Fruit For Healthy Eating United States: Beech Nut Let's Grow Wakey Flakes Cereal Multigrain with Bananas. No artificial colors, flavors, MSG, or preservatives. No added sugar. United Kingdom: Heinz Orchard Apple Biscotti Baby United Kingdom: Bebivita Fruity Biscuits. Breakfast Cereal Baby Food. A smooth blend of apple, orange, pear, banana and apricot for babies and toddlers from 4 to 18 months, just add water. Australia: Heinz Ukraine: Nestle Little Kids 6 Rice Non-Milk Oat Bars - Apricot Cereal with Apple Delight. and Apricot. No milk. Contains 11 Hungary: Milupa Jo mineral and Ejszakat! Tejpep Almas vitamins including - Powdered apple iodine and zinc. flavored cereal milk puree for babies from the 8th month. Incorporating Protein With Poultry, Meat & Fish South Korea: Maeil Mamamil Okelbokel Takkoki Yache Yong Yang Juk - Porridge with Chicken & Vegetable for 9 Month and Older Babies. Vietnam: Nestle Bot Ngu Coc 3 Dau Nanh Ga - Infant Cereal with Indonesia: Empro Baby Choice Soy and Chicken. Rice Rusks for Babies - Chicken with Vegetable. China: Eastwes Salmon Carrot Starch. Instant rice flour with salmon and carrot, Vietnam: Nestle Lua Mi Ca Infant Indonesia: Promina Baby for 4 month to 24 month aged baby. Wheat Cereals – Anchovies. Cereal For Weight Gain - Chicken & Corn. Flavour Analysis: Flavour Sub-Category Multiple Berry Flavour Alternatives Germany: Bebivita China: Beingmate Happy United States: Parent's Choice Sweden: Nestle Puuro Grot - Fruhstucks Musli Himbeere Mouse Baby's Nutritional Little Puffs Plus Calcium Baby Porridge with Wholemeal - Raspberry Muesli Biscuits – Strawberry. Blueberry Grain Snack. & Raspberry. Sugar free! Breakfast Meal for Babies. India: Gerber Graduates For Toddlers Cereal Bars - Strawberry Banana Fruit & Cereal Bars. Brazil: Maizena Cremogema Russia: Rasti Bolshoy Raspberry Flavored Morango - Biscuits for Babies 6-Months Onward. Strawberry Flavored Pap Powder. Flavour Analysis: Primary Flavour Oats & Oatmeal Offer A Healthy Start To The Day Russia: Myllyn Paras Instant Oat Mash with Orange, Cherry United Kingdom: Cola and Sugar. Organix Goodies Organic Oaties. Five snack bags of tasty Malaysia: Country mini oat biscuits Farm Organics Oats containing Instant Baby Oats. wholegrain oats and High in Beta-Glucan, naturally sweetened nutritious, high fiber, with grape juice. flavorful. Brazil: Nestle Mucilon Lacteo Oat and Honey Powder for Babies. Vietnam: Beech Nut Good Germany: Humana Morning Haferflocken- Whole Grain Milchbrei - Milk Oatmeal & Cereal with Mixed Fruit. Oatmeal for Babies. Flavour Analysis: Secondary Flavour Yogurt Inclusion For Flavour & Calcium Inclusion of ingredients such as yogurt increases the functionality and nutrition value of products. Yogurt is a good source of friendly bacteria and calcium and can partially fulfill the calcium need for babies. Canada: Heinz Mini Cereal Bars – Strawberry Banana Yogurt Flavour For Babies From 12 of Age. Vietnam: Nestle Gold Stage 3 Brown Rice with Yoghurt & Raspberry for Babies. With DHA, Bifidus - Prebio1, and CHE-easy to digest. United States: Beech Nut Let's Grow! Toddler's Yogurt Nibbles - Berries & Cherries. Added Vegetables Increases Nutrients India: Graduates For China: Firmus Babyrich Nutritious China: Nestle Rice with France: Carrot Flavored Toddlers Crackers Made Rice Powder with Marrow and Mung Bean for 8-Month Instant Cereal Formula for with Whole Grain Veggie. Vegetable for 6-24 Month Aged Old Babies. Babies from 4 to 6 Months. Baby. Added with walnut oil, carrot powder, and vegetable marrow. Thailand: Nestle Cerelac Pumpkin Tomato Carrot & Milk for Infants. Contains DHA. Easy to digest. South Korea: Euu Organic Malaysia: Nestle Rice Porridge Vegetable Biscuits for Babies. Vegetable with Carrot. Flavour Analysis: Tertiary Flavour Baby Cereals & Biscuits Trends Morning & Night Products From Beechnut •Beech-Nut Good Morning products give babies the right nutrition for breakfast: One gram of soluble fiber – soluble fiber gives Good Morning a low glycemic index which enables a steady release of energy and balanced blood-sugar level throughout the morning. This helps to keep babies satisfied, alert and happy, and contributes to better attention span, concentration, word recall and memory – all essential to good learning. •Beech-Nut Good Evening products give babies the right nutrition for dinner: Whey protein - a high-quality, easy to digest protein that helps build muscles when baby grows most – at night. Prebiotic - nutrients that stimulate the growth of “good” bacteria in the digestive system United States: Beech-Nut Good Evening Puerto Rico: Beech-Nut Good Whole Grain Mixed Grain Cereal For Baby. Morning Whole Grain Oatmeal & Mixed Fruit Cereal for Baby. Source: www.beechnut.com New Easy Pour Packaging United States: Beech Nut Rice Cereal for Baby. Rice cereal for babies, packed in a carton box with an easy-to-pour spout. Made with natural ingredients, plus vitamins and minerals. 45% daily value of iron. 25% daily value of 10 other vitamins and minerals. Single Grain With Multiple Benefits United States: Gerber Oatmeal Cereal with DHA Single Grain. Single grain cereal for babies transitioning from milk to solid foods held in a cardboard container. Cereal for babies that helps support brain and eye development. Contains 18 mg of DHA per serving. Made with natural grains. No added sugar or artificial flavors. India: Gerber DHA Helps Support Brain & Eye Development Rice Cereal. DHA is an important nutrient in aiding brain development. All the great nutrition of other Gerber cereals including iron, zinc, and 6 B vitamins. Contains 18mg of DHA per serving. Resealable tin for freshness and no mess serving. Made with natural grains. No added sugars or artificial flavorings. Packaging Analysis Packaging Analysis Packaging Analysis China Slovakia China France Vietnam China Philippines United States Netherlands United States Packaging Analysis Indonesia United States Japan United Kingdom Italy Conclusion USA (14%), Vietnam (14%) and UK (12%) were the product launch leaders. Nestle (26%) was the company with most product launches, with the other 14 companies ranging from 16% to 2% of remaining product launches. Baby food's naturalness is an important trend in all the regions. Preservative and/or additive free and organic/natural formulations have established their niche in the baby food market. Gut/digestive health positioned products should experience significant growth due to the recent trend of adding prebiotics and probiotics to baby cereal and biscuit products. DHA product launches in this category should also experience growth as the associated claims have appeal to parents.