The Gluten-Free Food and Beverage Market: Trends and Developments Worldwide, 2nd Edition

Table of Contents

Chapter 1: Executive Summary

• The Products
  • What is Gluten?
  • FDA gluten-free food labeling standards are overdue
  • A List of the Types of Products and Categories Represented in the Gluten-free Foods and Beverages Market
• The Market
  • Size and Growth of Market
  • Market Definition
  • Products that Could Conceivably Contain Gluten, but Clearly Don' t
  • A Summary of Market Forces from 2004-2008
  • 2008 Finishes Off with $1.56 Billion in Retail Sales
    • Table 1-1: Retail Sales of U.S. Gluten-free Foods and Beverages, 2004-2012
    • Sales Are Projected to Reach $2.6 Billion by 2012
    • Table 1-2: Projected U.S. Retail Sales of Gluten-Free Foods Beverages, 2008-2012
• The Marketers
  • Overview of Marketers: 4 Basic Types
  • Specialty-Marketers Still in the Majority
  • Health/Natural Food Marketers Convert to Gluten-Free
  • Supermarket' s Private-Label Brands Leap in with Both Feet
  • Mega-Marketers Join the Fray
• The Marketplace
  • Different Types of Retail Channels
  • G-F Products are Retailed through Some Unusual Channels
  • Market Composition by Retail Outlet 2008
    • Table 1-3: U.S. Share of Sales of Gluten-Free Foods and Beverages, by Retail Outlet 2008 (percent)
• The Consumer
  • Numerous Medical Problems are Associated with Gluten
  • Gluten-Free 2.0
  • Healthy Consumers Go Gluten-Free
• New Products & Trends
  • Vast Array of Marketers are Going Gluten-Free
  • Private Label is Coming on Strong
  • A Rash of New G-F Beers has not Yet Made a Splash in Sales
• Global Spotlight
  • Europe, North America, & Anzac Countries are at the Forefront
  • Affluent Countries are Prime GF Markets
  • European Governments are Proactive about G-F Dieting

Chapter 2: The Products

• Key Points
• What is Gluten?
• What is Gluten-Free?
• FDA Gluten-Free Food Labeling Standards Overdue
• What is a Gluten-free Food?
• A List of the Types of Products and Categories Represented in the Gluten-free Foods and Beverages Market
• Sources for Gluten-Free Flour, an International Guide
• Gluten-free Doesn' t Mean Home Free When it Comes to Baking
• Gluten-Free Advocacy Groups' Certification Approval Programs
• Other Forms of Gluten-Free Endorsements from Gluten-Free Advocacy Groups
• Self Labeling is the Most Common Form of Certification, but it has Some Pitfalls

Chapter 3: Medical Conditions Relating to Gluten and the Consumer

• Key Points
• Numerous Medical Problems Involve Gluten
• Celiac Disease
• Celiac Disease Can be Symptomatic or Asymptomatic
• Only 40,000-60,000 Americans Diagnosed with Celiac Disease
• Undiagnosed Celiacs Estimated at Between 1.5 to 3 million
• Celiac Patients Have Influence Well Beyond their Diagnosed Numbers
• Anheuser-Busch Pegs G-F Demographic Base at 3.2 Million
• Gluten-free Diet is the Only Treatment for Celiac Disease, but this May Change
• Gluten Allergy, Gluten-Sensitivity, Idiopathic Gluten-Sensitivity and Gluten-Sensitive Idiopathic Neuropathy
• Irritated Bowel Syndrome (IBS)
• Gluten-free Dieting Embraced by IBS Sufferers, but Frowned on by Mainstream Medicine
• Autism
  • Autism Cuts Across All Ethnic and Income Groups
  • The Number of Autism Diagnoses Rising Annually
  • Unknown Until the 1940s, Autism Remains Mysterious
  • Refrigerator Mom Concept Melts Away
  • Autism Diets Eliminate Casein as Well as Gluten
• Attention-Deficit/Hyperactivity Disorder (ADHD) and Attention Deficit Disorder (ADD)
• MS, RSI & Other Neurological Conditions
• Cancer and Other Outlyers
• Lack of Medical Evidence Does Not Deter a Public Benefiting From the Placebo Effect
• Gluten Tolerances Vary Depending on Medical Condition
• Gluten-Free 2.0
  • Table 3-1: Diseases that Have a Major Effect on the Market and the Types of Gluten-Free Diet Use to Treat Them
  • Table 3-2: A Sampling of U.S. Organizations and Support Groups with Gluten-Free Diet Information

Chapter 4: The Market

• Key Points
• Market Definition
• Products that Could Conceivably Contain Gluten, but Clearly Don' t
• A Summary of Market Forces from 2004-2008
• 2008 Finishes Off with $1.56 Billion in Retail Sales
  • Figure 4-1: Retail Sales of Gluten-free Foods and Beverages, 2004-2008 (in millions of dollars)
• How Packaged Facts Derived its Sales Figures
• Market Composition by Retail Outlet 2008
  • Table 4-1: Share of Sales of Gluten-Free Foods and Beverages, by Retail Outlet, 2008 (percent)
• Different Types of Products Favor Different Types of Retail Outlets
• Future Market Growth Factors
  • Mainstreaming of Gluten-Free Foods and Beverages
  • General Mills Opens the Floodgates
• Anheuser-Busch Breaks New Ground
• Retailers Use Private Label, Special Sections and Product Lists to Push Gluten-Free
• Wegmans Rides the Gluten-Free Wave
• Market Driven by Consumer Activism
• Web 2.0 Marketing a Key Factor
• Chinese Ingredient Scandal Raises Anti-Gluten Consciousness as Gluten-free Dons a Healthy Halo
• Gluten-free Dons the Healthy Food Halo
• Autism' s Unlikely Gluten-Free Spokeswoman
• Growing Awareness and Diagnosis of Celiac Disease
• Manufacturers Expand Gluten-Free Offerings
• One Large and Omnipresent Cloud on the Market' s Horizon
• Economic Downswing has a Silver Lining for the Gluten-free Market
• Sales are Projected to Reach $2.77 Billion by 2012
  • Table 4-2: Projected U.S. Retail Sales of Gluten-Free Foods Beverages, 2008-2012 (in millions of dollars)

Chapter 5: The Marketers

• Key Points
• Overview of Marketers: 4 Basic Types
• Specialty-Marketers Still in the Majority
• Health/Natural Food Marketers Convert to Gluten-Free
• Supermarket' s Private-Label Brands Leap in with Both Feet
• Mega-Marketers Join the Fray
  • 3 Paths into the Gluten-Free Market
• Determining Market Share
• Methodology for Tracking Gluten-free Sales
• Monitored Retail Sales of Gluten-free Marketers in Food/Drug/Mass Merchandiser Outlets by Category
  • Dry Packaged Dinners
  • Table 5-1: Retail Sales of Gluten-free Marketers in the Dry Packaged Dinner Category (in dollars and percent of GF products)
  • Dry Packaged Dinner Category
  • Spaghetti/Italian Sauce
  • Table 5-2: Retail Sales of Gluten-free Marketers in the Spaghetti/Italian Sauce Category (in dollars and percent of GF products)
  • Pasta
  • Table 5-3: Retail Sales of Gluten-Free Marketers in the Pasta Category (in dollars and percent of GF products)
  • Frozen Pizza
  • Table 5-4: Retail Sales of Gluten-Free Marketers in the Frozen Pizza Category (in dollars and percent of GF products)
  • Frozen Breakfast
  • Table 5-5: Retail Sales of Gluten-free Marketers in the Frozen Breakfast Category (in dollars and percent of GF products)
  • Cold Breakfast Cereal
  • Table 5-6: Retail Sales of Gluten-free Marketers in the Cold Breakfast Cereal Category (in dollars and percent of GF products)
  • Crackers
  • Table 5-7: Retail Sales of Gluten-free Marketers in the Cracker Category (in dollars and percent of GF products)
• Market Expands in Different Directions Complicating Competition
• General Mills Shuffles the Deck
• Using Private-Label and Special Sections, Retailers Join the Fray
• Gluten-free Marketers Have the Advantage of Clarity Over Broader Based-Marketers
• Food Roulette Isn' t Something You Want to Put Your Money On
• Wellshire Farms Response
• Consequences for Consumers Inevitably Lead to Consequences for Marketers
• Specialty Marketers Struggle with Pricing During a Downturn
• Mega-Marketers Remain Poised for a Move - Watch Your Price Points!
• An Ace in the Hole that No Amount of Price Points Can Take Away

Competitor Profiles

Competitor Profile: Amy' s Kitchen, Inc., Santa Rosa, California

• Amy' s Markets to Consumers with a Wide Variety of Health Concerns
• A Continuing Focus on Gluten-Free Since 2002
• A Continuing Aggressive Stance on New Product Introductions

Competitor Profile: (Weetabix) Barbara' s Bakery, Inc., Petaluma, California

• Weetabix Enters the Picture
• A Private Equity Firm Takes Charge

Competitor Profile: Bob' s Red Mill Natural Foods, Inc., Milwaukie, Oregon

• Rising Like a Phoenix from its Own Ashes, Bob' s Red Mill Relocates
• A Gluten-Free Manufacturing Area Reflects Bob' s Commitment to Expanding Gluten-free Offerings Gluten-free
• Years of Double Digit Growth

Competitor Profile: Ener-G Foods, Inc., Seattle, Washington

• One of the Oldest Dietary Needs Food Producers in the U.S.
• A Diverse Gluten-free and Gluten-free/Casein-free Product Line
• An Ever Changing Product Line

Competitor Profile: Enjoy Life Natural Brands, LLC, Schiller Park, Illinois

• Changing of the Guard
• The Company Acquires Perky' s

Chapter 6: The Marketplace

• Different Types of Retail Channels
• G-F Products are Retailed through Some Unusual Channels
  • Gluten-Free E-Tailers
  • Gluten-Free Specialty Stores:
  • G-F Stores also Pay Attention to Other Dietary Needs
• Marketer/Producer Websites and Visitor Centers
• Ethnic and International Stores and Websites
• Untraditional Retail Outlets Benefit from Web 2.0 Marketing
• Gluten-Free E-Tailers Battle E-Grocers
• Where there' s a Mouse there' s a Way on the Gluten-free Web
• Supermarkets also Use Web 2.0 to Embrace the G-F Consumer
• Health/Natural Foods Stores Have a Similar, but Different Culture than Gluten-free Specialty Stores
• Whole Foods Completes $565 Million Acquisition of Wild Oats
• Supermarkets Embrace the Gluten-Free Consumer
• The Prime Beneficiaries of Retailers' G-F Activities are Retailers
• SuperValu Yanks Gluten-free Lists
• Missing Out on G-F Private Label Customers Could be Costly for Retailers

Retail Distribution Methods

• Direct Delivery Advantages
  • The Cost of Face-To-Face Business
• Advantages of Warehouse Delivery
• Smaller Marketers Work through Brokers
• Introducing New Special Dietary Needs Products to the Market
• Gluten-free Presence is Felt at Health/Natural Foods Expos
• Local Gluten-Free Events

Chapter 7: New Products and Trends

• Key Points
• New GF Product Intros Continue to Increase Annually
  • Table 7-1: New U.S. Gluten-Free Food and Beverage Product Intros, U.S., 2003-2008
• Frozen Ready Meals Category Leads the Way
  • Table 7-2: New U.S. Gluten-Free Food and Beverage Product Intros in 2008, by Category
• Junk Food is the Strongest Trend in G-F Foods and Beverages
  • Table 7-3: New Gluten-Free Sweet and Snacks (Junk Food) Product Intros, U.S., 2004-2008
• Gluten-Free Beer: A World of Potential Not Yet Realized
• Buckwheat & Sorghum are Most Common Grains in G-F Beer
• The Great American Beer Festival Adds a Gluten-free Beer Category in 2007
• Gluten-free Beer Competition "Will Grow Dramatically in the Future", according to Beer Fest
• Anheuser-Busch' s Redbridge Takes the Gold
• Lakefront Brewery' s New Grist Captures the Silver for Milwaukee
• Sprecher' s Brewery Introduces Traditional African Beer
• 2008 Bronze Goes to Deschutes Brewery
• The Vast Beer Market Beer has Room for a Profitable G-F Niche
• Bard' s Tale an Exclusively Gluten-free Brewer
• Passover Honey Lager, a Kosher, Gluten-Free Beer
• Nouvelle-France Tries Gluten-Free Brewing North of the Border
• Gluten-Free U.K. Ales Available in the U.S.
  • Nick Stafford' s Hambleton Ales
  • Green' s Gluten-free Beers
• Belgian Style Ale Offers Opportunities to Gluten-Free Brewers
• Carlsberg Finds a Way to Brew Gluten-free with Barley Malt
• Around the World with Gluten-free Beer
• Over 225 Marketers Introduced New Gluten-free Products into the U.S. in 2008
  • Table 7-4: New Gluten-Free Foods and Beverage Product Intros by Company, U.S. 2008
  • G-F Private-label Soar - as Supermarket Chain Wegmans Leads in New Product Introductions
  • Green Mountain Coffee Embraces the Junk-food Trend with Gluten-free Chocolate
  • Brothers International Joins Disney to Introduce G-F Kid Snacks
  • Lhian Thai Rice Vermicelli Co. Comes in Fourth
• Single Grain Marketers from Salba to Hemp
  • Ruth' s Hemp Foods Hedging the Single Grain Strategy
• The Marketing of Nutritional Addition vs. the Marketing of Taste Neutrality
  • Unique Grains More Nutritious than their Glutinous Counterparts
  • Taste Just as Good as a Glutinous Product - Angel' s Touch
  • Glutenfreeda' s "Crossover" Taste
  • Quinoa Corporation Emphasizes Nutritional Superiority
• Unfamiliar Gluten-free Grains are Nutritional Powerhouses

Chapter 8: Global Spotlight

• Key Points
• Gluten-Free Glance at the World
  • Table 8-1: Gluten-Free Food & Beverage Product Introduction SKUs, 2000-2008, by Nation
• Productscan is Only a Measure of New Products and Not Existing Products Converted to Gluten-free Status
  • Europe and North America are the Most Important Markets
  • In The Rest of the World, the Trans-Tasman Countries Stand Out
  • Asia, Africa and South America Have Mostly Gluten-Free Diets
• World-Wide - G-F Marketing and Affluence Go Together

Spotlight on Europe

• In Europe, Gluten-Free Dieting Becomes a Quality of Life Issue
• Celiac Disease Occurs in One Out of Every 100 Europeans
• In Europe, G-F Dieting is Even More Closely Associated with Celiac Disease than in the U.S.
• European Governments Actively Involved in Promoting Gluten-Free Consumption
• New European Gluten-Free Labeling Standards Passed in January 2009
• Europe-wide Research Project to Facilitate Gluten-free Monitoring 149
  • Proactive Approach to Monitoring Will Benefit Market
• Gluten-free Grassroots Organizations also Active in Europe
• AOECS is the Most Important Grassroots Organization in Europe When it Comes to Gluten-free Dieting
• U.S. Company Alba Actively Involved in Gluten-Free Pharmaceutical Research in Europe
  • Alba Sees a Turning Point in Treatment for Celiac Disease
  • Packaged Facts Predicts Alba' s Medication Will Not Affect the Market Over the Short Term
• Europe, a Common Market?
• European National Spotlight: Germany
  • The Largest Gluten-free Market in Europe
  • Pandea GmbH
  • The Schär Company
• European National Spotlight: Italy
  • Giuliani Tackles the Schär Company
• European National Spotlight: Scandinavia (Denmark, Finland, Norway, Sweden)
  • In Certain Respects Finland is the Odd Man Out
  • A Leader in Organic Foods and State of the Art Manufacturing
  • Swedish Celiac Epidemic Linked to Baby Formula
  • Denmark, Compared to its Neighbors, a Bit of a Gluten-Free Slacker
  • Tulip and Carlsberg Supply Danes with Gluten-free Beer and Hot Dogs
  • Norwegians Feast on Gluten-Free McDonald' s, Burger King Burgers & Other Fast Food
  • Finland, the Gluten-free "Paradise"
  • Moilasen Leipomo & Friabröd Bakeries Distribute Frozen Gluten-free Goods Throughout the Whole of Finland
  • Finnish Gluten-free Food has Europe-Wide Impact
  • Sweden' s Karolinska Institutet is a Leader in Gluten-free Medical Research . 161
  • Swedish Gluten-Free Marketers have European & Domestic Impact
• European National Spotlight: Spain
  • Spain Gets Gluten-free Religion
  • European Marketers Roll Out G-F Products in Spain
  • Spanish Marketers are Active Too
• European National Spotlight: The United Kingdom
  • Pharmacies Important Venues for G-F
  • Table 8-2: Prescribable Product List, January 2009
  • U.K. Gluten-free Marketers Comprise a Wide Spectrum
  • Gluten-Free Foods Ltd
  • Barkat Brand
• North American National Spotlight: Canada
  • Canada Beats the U.S. to the Gluten-free Punch
  • The CCA' s Work has Created a Fertile Environment for Gluten-free Marketing
  • Exclusively G-F, Glutino Foods has Line of 60 Gluten-free Products and a Thriving Online Business
  • Nature' s Path an Organic Food Marketer Can Trace its Roots Back to 1971
  • Nature' s Path Grows 800% in Four Years
  • Nature' s Path Invades Washington
  • Farmpure Foods & Source Salba are Leading Canadian Single Grain G-F Marketers
• Asian-Pacific National Spotlight: Australia
  • Coeliac Society of Australia Certifies G-F Products, Using its Trademarked Logos
  • Australian Companies Kez' s & Oway Self-Certify
• International Gluten-free Marketers have Multiple Paths into the U.S.
• Market
• Nestle
  • Figure 8-1: Nestle Website Poll, Substances Nestle' s Website Visitors are Allergic to: (percent)
  • Source: Nestle website as viewed in January 2009

Appendix