THE world’s largest maker of adult nutritional beverages, Abbott Laboratories, is doubling down on the crowded $6.2bn US snack market with a line of six bars it hopes will grow into a new brand of wide-ranging products.
The Curate snacks — including a chocolate, quinoa and hemp-seed bar and another one combining mission figs and balsamic vinegar — will start selling this month, with children’s choices coming in April.
While research turned up more than 1,000 varieties of snack bars, Abbott is betting it can find a sweet spot by marrying health food with a taste that appeals to the masses.
For a company that already makes almost $7bn a year from selling nutritional products such as the infant formula Similac, Ensure shakes and EAS sports bars, creating a line from scratch to expand in a relatively small market is an unusual strategy.
Curate, Abbott’s first new US retail brand in 15 years, was developed in seven months under Dustin Finkel, who joined in December 2014 as general manager of nutritious snacks with the task of revitalising sales.
"This space has tremendous growth," says Finkel. "They are allowing us to be a start-up business and brand within the company, and come up with novel ways to bring products to market."
While the initial sales are likely to be small, Abbott has a three-year plan to build Curate with offerings beyond traditional snacks.
Curate was created in Abbott’s existing labs, Finkel says, declining to provide further details on costs, future products or sales targets.
...
ABBOTT is taking on industry giants such as General Mills and Kellogg, as well as more targeted brands such as Kind and Clif Bar.
A July 2015 report from the research firm, Mintel, found that 94% of Americans snack every day. And while a third of them reported eating healthier snacks than they had a year earlier, 60% said they wanted more healthful options.
That’s the area Abbott is targeting with Curate. The Salted Decadence snack bar, for example, contains dark chocolate, Marcona almonds, hemp seed and quinoa. The Dark & Tempting bars mix figs, hazelnuts, orange with sunflower kernels and balsamic vinegar, while the Sweet & Tart includes berries, almonds, quinoa, chia and flax seeds.
Salted Decadence has 10g of sugar and 7g of protein. By comparison, Clif’s Chocolate Chip Bar has 250 calories, 22g of sugar and 10g of protein.
Upmarket millennials are eager for products such as Abbott’s new bars, according to Kurt Jetta, CEO and founder of Tabs Analytics, a retail and consumer analytics firm.
Still, Abbott will need patience to cultivate the line. Large corporations typically buy innovative, up-and-coming brands and expand their distribution, Jetta says. That’s what Abbott did in 2003 and 2004 when it acquired ZonePerfect and EAS, after the brands were embraced by dieters and athletes seeking high-protein, low-carbohydrate foods.
By going straight to the masses with Curate, Abbott may have a harder time developing a following. "The big companies typically don’t follow that template," Jetta says.
Abbott will also have to confront the same objections as its rivals: the wisdom of reaching for a packaged snack in the first place.
...
WHILE they’re healthier than sweets, it’s debatable whether they’re a good food choice, says Marion Nestle, professor of nutrition, food studies and public health at New York University.
In addition, Abbott is sticking with sweet and salty at a time when health-conscious consumers are turning away from sugars, says Carl Jorgensen, director of global consumer strategy and wellness at Daymon Worldwide.
"If you’re doing a me-too product and going head-to-head (with) established brands, that’s a tough proposition," Jorgensen says. "You still see a lot of swings and misses in this industry."
Still,Abbott can rely on a vast distributionsystem — in outlets such as supermarkets, petrol stations and pharmacy chains — to sell the new snacks. It will help gain traction for the company’s first brand introduction in the US since Glucerna in 2001, a line that includes bars, shakes and snacks for diabetics who are trying to keep their blood sugar levels stable.
"They have great relationships with the supermarkets and the Wal-Marts of the world," says Glenn Novarro, an analyst at RBC Capital Markets in New York who rates the shares outperform. "They have the shelf space. Why not fill it with new products?"
Bloomberg
With 94% of Americans snacking every day and 60% wanting more healthy options, Abbott Laboratories is launching a range of bars the company hopes will fill the gap. Picture: ISTOCK
THE world’s largest maker of adult nutritional beverages, Abbott Laboratories, is doubling down on the crowded $6.2bn US snack market with a line of six bars it hopes will grow into a new brand of wide-ranging products.
The Curate snacks — including a chocolate, quinoa and hemp-seed bar and another one combining mission figs and balsamic vinegar — will start selling this month, with children’s choices coming in April.
While research turned up more than 1,000 varieties of snack bars, Abbott is betting it can find a sweet spot by marrying health food with a taste that appeals to the masses.
For a company that already makes almost $7bn a year from selling nutritional products such as the infant formula Similac, Ensure shakes and EAS sports bars, creating a line from scratch to expand in a relatively small market is an unusual strategy.
Curate, Abbott’s first new US retail brand in 15 years, was developed in seven months under Dustin Finkel, who joined in December 2014 as general manager of nutritious snacks with the task of revitalising sales.
"This space has tremendous growth," says Finkel. "They are allowing us to be a start-up business and brand within the company, and come up with novel ways to bring products to market."
While the initial sales are likely to be small, Abbott has a three-year plan to build Curate with offerings beyond traditional snacks.
Curate was created in Abbott’s existing labs, Finkel says, declining to provide further details on costs, future products or sales targets.
...
ABBOTT is taking on industry giants such as General Mills and Kellogg, as well as more targeted brands such as Kind and Clif Bar.
A July 2015 report from the research firm, Mintel, found that 94% of Americans snack every day. And while a third of them reported eating healthier snacks than they had a year earlier, 60% said they wanted more healthful options.
That’s the area Abbott is targeting with Curate. The Salted Decadence snack bar, for example, contains dark chocolate, Marcona almonds, hemp seed and quinoa. The Dark & Tempting bars mix figs, hazelnuts, orange with sunflower kernels and balsamic vinegar, while the Sweet & Tart includes berries, almonds, quinoa, chia and flax seeds.
Salted Decadence has 10g of sugar and 7g of protein. By comparison, Clif’s Chocolate Chip Bar has 250 calories, 22g of sugar and 10g of protein.
Upmarket millennials are eager for products such as Abbott’s new bars, according to Kurt Jetta, CEO and founder of Tabs Analytics, a retail and consumer analytics firm.
Still, Abbott will need patience to cultivate the line. Large corporations typically buy innovative, up-and-coming brands and expand their distribution, Jetta says. That’s what Abbott did in 2003 and 2004 when it acquired ZonePerfect and EAS, after the brands were embraced by dieters and athletes seeking high-protein, low-carbohydrate foods.
By going straight to the masses with Curate, Abbott may have a harder time developing a following. "The big companies typically don’t follow that template," Jetta says.
Abbott will also have to confront the same objections as its rivals: the wisdom of reaching for a packaged snack in the first place.
...
WHILE they’re healthier than sweets, it’s debatable whether they’re a good food choice, says Marion Nestle, professor of nutrition, food studies and public health at New York University.
In addition, Abbott is sticking with sweet and salty at a time when health-conscious consumers are turning away from sugars, says Carl Jorgensen, director of global consumer strategy and wellness at Daymon Worldwide.
"If you’re doing a me-too product and going head-to-head (with) established brands, that’s a tough proposition," Jorgensen says. "You still see a lot of swings and misses in this industry."
Still,Abbott can rely on a vast distributionsystem — in outlets such as supermarkets, petrol stations and pharmacy chains — to sell the new snacks. It will help gain traction for the company’s first brand introduction in the US since Glucerna in 2001, a line that includes bars, shakes and snacks for diabetics who are trying to keep their blood sugar levels stable.
"They have great relationships with the supermarkets and the Wal-Marts of the world," says Glenn Novarro, an analyst at RBC Capital Markets in New York who rates the shares outperform. "They have the shelf space. Why not fill it with new products?"
Bloomberg
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