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Update on FACT I am glad to say that we are having our biggest year yet! FACT Foods surpassed last year’s sales in the first six months of 2004. Science-based foods are catching on in a big way as consumer knowledge expands. With this redesign of our monthly newsletter, we hope to keep you up to date on what is happening in the functional foods arena and what that means to you. We will use real-world case studies and examples to give you some idea of the maturation of the functional foods market and what works best on supermarket shelves. If you aren’t familiar with our current product lineup, bread, muffin, cake and various other dough pre-mixes form the core of FACT’s business. All-purpose bake mix for various bread-based applications and cookie mixes are selling well, and Aunt Lydia’s Italian Creme™ non-dairy whipped toppings are natural summer sellers. For the complete listing, click here. We would love to hear from you! If you have any questions, feedback or news of your own that you would like to share, please let us know and we will discuss it in this journal. Jacqueline Danforth, President |
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Just how big is your market? How are functional food sales doing? Very well! Sales are largely impacted by three things: consumer awareness; the size of the target market; and disposable income. The worldwide trend of cheaper foods, inexpensive and plentiful sugar combined with less activity means an explosion in diet and weight-related problems. In the United States, a full two thirds of adults are either overweight or obese. In the rest of the world, over one quarter of world population is overweight – for the first time there are more overweight people than hungry. Over 100 million Americans are now limiting their carbohydrate consumption, and 40% of consumers have cut down on bread and bread-type foods such as pizza. What does this mean for FACT customers? Good news! It’s all about the timely intersection of science and demographics. While the consumption of bread products has slumped as much as 10% over the past three years, the average carbohydrate-conscious shopper now spends $85 per month on specialty foods. Bakers are boosting sagging sales by offering premium bread products with added health benefits. Our customers’ dough-based products are not only appealing to health-conscious consumers, but also provide a greater margin on each sale. |
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Growing by bagels and loaves San Fernando Valley, California–based Western Bagel Baking Corporation chose FACT Foods’ Healthy Lifestyle ™ all-purpose bake premix for their Alternative Bagel ™. Recognizing a carbohydrate-reduced gap in their product offering, the Alternative Bagel was born and sales are now soaring. It is sold at Publix, Albertson's, Gelson's, Food4Less, and Ralph's, and has made it onto shelves not only on the West coast but also in the East. Western Bagel has an online ordering facility and ships only one category of bagel, The Alternative Bagel, all over the country. Margins are high enough to make this worthwhile. In fact, the functional food category has proven so profitable that Western Bagel is working with FACT on an all-natural product line due out on shelves late summer. |
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It's in the dough What makes FACT Foods premixes so special? It has everything to do with the exact proportions of science-based, FDA-approved ingredients. The Alternative Bagel, for example, has no fat or cholesterol, low sodium and just 18g net digestible carbohydrates. It also has a whopping 7g of fiber. Sound appetizing? Hardly. But with the right blend of soluble and insoluble plant-based fibers, cutting edge ingredients such as Inulin and others, FACT has created dough premixes that bake into delicious finished products with just the right flavor and mouth-feel. All FACT premixes impart specific health benefits. Low digestible carbohydrates keep blood sugar levels low and digest more slowly, keeping hunger at bay for longer. Our proprietary blend of prebiotic fibers is beneficial to the digestive system in several different ways, and zero cholesterol and fat speak for themselves. All of our premixes are suitable for carbohydrate and calorie-reduced, diabetic and heart health-specific diets. For more FACT product info, click here. |
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