CONSUMERS LOOK FOR HEALTH SOLUTIONS

MATTHEW ENIS

WASHINGTON -- American consumers are increasingly aware of the role that diet and nutrition play in their health, but, at the same time, their food-preparation skills have sharply declined.

That seeming irony emerged as the common theme of two major presentations at last week's Grocery Manufacturing Association's Conference on the Future of Food. The event drew manufacturers, scientists, retailers and trend analysts.

The two presentations that set the tone for the conference were a keynote address by Faith Popcorn, the well-known principal at BrainReserve, a New York-based consultancy, and a subsequent related panel discussion, which featured five topside executives. Alluding to consumers' ongoing demand for food that can be rapidly prepared, Popcorn remarked that "consumers expect retailers to curate [select and aggregate] their food choices and meal experiences."

And concurrent with that demand for convenience, she said, is a growing consumer expectation that food can play a role in treating maladies of various sorts. She said that last year 65% of consumers claimed to have used diet to treat a health condition: "Consumers are looking to food as a remedy. They're even looking for health promises in junk food."

These trends present obvious possibilities for suppliers, restaurants and retailers. But there are implicit pitfalls, too, if consumers become more likely to place the blame on business for the diet-related problems.

Discussing those situations were those on the executive panel: Hugh Grant, chairman, president and chief executive officer, Monsanto; Craig Miller, president and CEO, Ruth's Chris Steakhouse; Norman Rich, president, Weis Markets; Steve Sanger, chairman and CEO, General Mills; and Steven Schmidt, president and CEO, ACNielsen. The panel was moderated by Michael Sansolo, senior vice president, Food Marketing Institute.

Rich, the retailer on the panel, spoke to challenges set before business enterprises when it comes to consumer knowledge of diet: "It's not a problem with customers who know and understand nutrition. The basic problem is education, and it should start at the school. Without [consumers'] understanding food, nutrition and portion control, [the country] is going to have to deal with significant health problems in the future."

Other panelists agreed.

Miller of upscale restaurant chain Ruth's Chris Steak House, noted that in some states, such as Florida, there has been only recent consideration of the requirement of mandatory physical education classes -- once a staple of elementary and secondary school education.

Yet, there are hopeful signs. Rich noted that the convenience of healthful products such as bagged salads has caused that category to grow from $4 million in U.S. sales 15 years ago to a $3 billion category today. He added that demand for natural and organic foods was growing rapidly in many rural areas where Weis operates. The company has also hired nutritionists to help interested customers better navigate its stores, and mirroring broader industry trends, Weis was slated to open a new, large-store format that places heavy emphasis on fresh food perimeter departments, he said.

"We have a 72,000-square-foot store we're opening next year, and it won't have any more [center store] grocery space than our other stores have today," he said.

Genetically engineered crops may also hold some promise for helping manufacturers improve the nutritional content of processed foods without sacrificing flavor, Monsanto's Grant said. Monsanto is a developer of biotech crops. Although he wasn't quizzed about the controversy that surrounds agricultural bioengineering, Grant predicted a bright future for his industry when the benefits of such products become more evident to consumers. As an example, Grant said, Monsanto is working on crops that would enable food producers to create soy and canola products enhanced with omega-3s, the essential fats currently deficient in the American diet.

"New technology is always controversial," agreed General Mills' Sanger. He too said consumer perception will likely come when biotech firms begin making products with "obvious benefits to consumers."