Company Responses to the Health Fad

Sophie Paridon

Persily-Lamel

29 March 2012

Blog 6A

Company Responses to the Health Fad

            Companies within the Food and Beverage industry are very responsive to the different trends and fads that the population follow, updating old products and releasing new ones to satisfy customers’ wants and needs. The current trend shows that people are taking greater interest in their health and are therefore buying foods and beverages that are healthier and more organic. John M. Foraker, Annie’s chief executive, describes the current food trend by stating that “Organic was considered a niche business 15 years ago, now it’s mainstream” (Rusli).  Therefore, increasingly, the emerging companies are those that are known for their healthy and/or organic products. This includes companies such as Vita Coco and Annie’s

Vita Coco is a company that sells coconut water that is “considered the best-selling coconut juice in the US with 2011 sales expected to hit $100 million” (Gorgon). This product is growing high in demand due to the fact that it is a completely natural rehydration beverage. Not only does this beverage rehydrate and detoxify your body, but it also is “naturally loaded with the five key electrolytes: potassium, magnesium, phosphorous, sodium and calcium” (Gorgon).

Annie’s is an increasingly popular company known for their organic foods, such as Mac & Cheese, pizza, and cheddar snacks. The consistently increasing desire for customers to buy healthier goods resulted in Annie’s recording “revenue of $117.6 million, a 22.5 percent jump from the previous year, with net income attributable to common shareholders of $596,000” in 2011 (Rusli).

With the emergence of companies such as Vita Coco and Annie’s, it becomes clear that the customers of the Food and Beverage Industry are in fact following the popular fad of staying healthy and organic. Not only are new companies emerging, but already popular companies such as General Mills and Pepsi Co are updating their products as well as releasing new ones to follow this new trend. This proves that the Food and Beverage industry is in fact extremely responsive to this growing health trend.

http://dealbook.nytimes.com/2012/03/28/annies-pops-64-on-debut/?scp=1&sq=food%20and%20beverage&st=Search

http://news.softpedia.com/news/Latest-Celebrity-Fad-Vita-Coco-Coconut-Water-140455.shtml