Gluten-Free Certification Program Allergen Control Group Inc. - - PowerPoint PPT Presentation

Gluten-Free Certification Program

MARKETI NG GLUTEN-FREE FOR SUCCESS

Canadian Spice Association Annual Meeting Convention May 9, 2014 - Toronto, CANADA

Allergen Control Group Inc.

Gluten-Free Certification Program www.GlutenFreeCertification.ca Allergen Control Group I nc. ( ACG) represents a team of food industry experts, who understand how to manage manufacturing risks, while maximizing procurement and specialty product marketing opportunities. ACG manages, administers, and markets the Gluten-Free Certification Program in partnership with North America’s leading celiac organizations, the Canadian Celiac Association and the National Foundation for Celiac Awareness.

Gluten-Free Certification Program www.GlutenFreeCertification.ca

The CCA Endorsement in Canada

The Canadian Celiac Association (CCA) is the only national voice for people who are adversely affected by gluten, and is dedicated to improving diagnosis and quality of life. The Gluten-Free Certification Program ( GFCP) was developed by the CCA and launched in May 2011 with the goal to:

• Help Canadians make clear and informed safe, gluten-

free food choices

• Increase ease of access to safe, gluten-free products
• Broaden the scope of available & affordable gluten-free

products

• Be trusted by medical doctors and other medical

practitioners

The NFCA Endorsement in the US

Gluten-Free Certification Program

• Promoting an internationally recognized robust, management

system based program

• Enabling easier flow of both finished product and source ingredients

across the US/ Canadian border

• Building confidence and brand loyalty via providing transparency

and education to consumers

• Offers a channel for NFCA to engage with consumers at point-of-

sale

• Supports August 2013 FDA regulation defining ‘Gluten-Free” claims

There are an estim ated 2 .3 m illion Canadians requiring gluten-free products for m edical reasons

• Celiac disease is on the rise - It is 4 x m ore

com m on today than is was in the 1950s. It is expected to double every 15 years

Setting the Stage

Gluten-Free Certification Program www.GlutenFreeCertification.ca

• 7 1 % of consum ers buy at least some gluten-free food/ beverage

products & 51% will continue to purchase

• Gluten-Free Consumer inquires are the second most requested

ingredient question for retailers & food service establishments

• The “Halo” Group: Family members of those suffering as well as those

seeking a gluten-free diet for its health benefits adds approxim ately 7 m illion to the total number of Canadians looking to buy gluten-free products.

22% Gluten “avoiders”

6% Gluten-sensitivity (2,000,000)

1% Celiac Disease (300,000)

Approximately 9.0 Million Canadians are eating gluten-free

The Facts

Who is Our Consumer?

Gluten-Free Certification Program www.GlutenFreeCertification.ca

• What they didn’t realize was that Andrew wasn’t the only one who

would have to get over feeling different. “I felt like one of those people who think that nothing you do is good enough for my kid,” Nettie says. From fam ily m eals at the holidays to play dates w ith friends, food is the heart of their social interactions, and w hen the food changed, so did everything else.

• They replaced all the pots, pans, colanders and utensils, w hich

w ere too contam inated to use. Next came a new toaster and mixer and rolling pin and a once-in-a-lifetime cleaning of the oven. “I couldn’t get rid of my grandmother’s cast iron skillet, though,” Nettie says.

• They endured their first holiday season of saying no to Christmas

cookies, and the first visit to relatives in Louisiana where Martinez had to explain that Andrew and Danny couldn’t eat the gum bo, no m atter how little flour the cook put in the roux.

Who is Our Consumer?

Gluten-Free Certification Program www.GlutenFreeCertification.ca

• The cost of buying certified gluten-

free foods is astronomical, especially to such a savvy, budget conscious shopper:

• $3.50 for a baguette (“They are

good, but not that good,” she reports), $5 for six flour tortillas (“that’s why we always have corn tortillas”)

• $6 for oatmeal that used to cost $2 (“we don’t eat as much
• atmeal anymore”),
• the tiniest loaves of bread you’ve ever seen for $6. That’s enough

bread for one round of the homemade lunches she makes for the kids every day.

Who is Our Consumer?

Gluten-Free Certification Program www.GlutenFreeCertification.ca Martinez says that gluten-free icons and labeling help trem endously, but som etim es you still can’t be sure. Last year, she purchased what she thought was gluten-free rice mix from Zatarain’s. When she discovered it contained orzo pasta made with wheat, she contacted the company and got coupons for three free boxes.

Gluten-Free Certification Program www.GlutenFreeCertification.ca

The Facts Reasons for Gluten free Consumption Symptoms

100%

39%

Digestive Health

31%

Nutritional Value

25%

Lose Weight

5%

Celiac Disease

Gluten-Free Certification Program www.GlutenFreeCertification.ca

The Facts Reasons for Gluten free Consumption The Facts

Reasons for Gluten-Free Consumption

Source: Wellness Trends, The Great Transformation, 2010 report, The Hartman Group Inc.

Gluten-Free Certification Program www.GlutenFreeCertification.ca

More Trend Than Fad

Source: Wellness Trends, The Great Transformation, 2010 report, The Hartman Group Inc.

Market Growth – Version #1

Gluten-Free Certification Program www.GlutenFreeCertification.ca

• The 2013 market for Gluten-Free products

in Canada is currently estimated to be $ 9 0 m illion.

• Reports show a 1 0 % ( CAGR) grow th of

gluten-free sales until 2018 with a value of $ 1 4 5 .2 m illion in Canada *Source: MarketsandMarkets

• According to the researchers, the growth is fueled by an increase in

celiac disease and food allergy awareness & diagnosis.

• The gluten-free avoider consumer segments perceive gluten-free

foods as healthier i.e. no GMO, no preservatives, heath food store heritage

• The 2013 market for Gluten-Free products

in Canada is currently estimated to be $ 4 5 0 m illion.

• Reports show a 2 6 % ( CAGR) grow th of

gluten-free sales 2008-2012 and projected doubling of the market in Canada. NOTE: Reflects an average spend of $50.00 per year per consumer) *Source: Packaged Facts includes frozen & refrigerated/beer

Market Growth – Version #2

Gluten-Free Certification Program www.GlutenFreeCertification.ca

Gluten-Free Certification Program www.GlutenFreeCertification.ca

Key Market Research Findings

“Gluten” trending on gluten 2004-Present *Source: Google Trends 2013

Gluten-Free Certification Program www.GlutenFreeCertification.ca

Key Market Research Findings

Gluten-Free Certification Program www.GlutenFreeCertification.ca

Key Market Research Findings

• Major drivers for gluten-free products are health benefits & general

interest in healthy eating

• The winning imperative for the gluten-free products industry is

new product development

• High price of gluten-free products have restricted the growth of the

market

• However, consumers have to serve this GF diet as there is no

alternative

• Private label brands will cause a significant growth of the GF

market revenue

• The global gluten-free food products market is dominated by US

companies

Gluten-Free Certification Program www.GlutenFreeCertification.ca

Market Numbers

The US market is the fastest and largest growing gluten-free market in the world. Canada represents about 4% of world dollar volume, but is growing at parallel rates to the US. Region 2011 2012 2013 e 2018 p CAGR% 2013-2018 U.S. $ Millions 1,768.9 1,942.3 2,141.1 3,548.7 10.6 Canada $ Millions 74.5 82.2 90.0 145.2 9.8

Gluten-Free Certification Program www.GlutenFreeCertification.ca

Market Numbers

Type 2013 e $ million 2018 p $ million CAGR % (2013-2018) Bakery & Confectionary 40.1 64.9 10.1 Breakfast Cereals 5.4 8.0 8.3 Snacks 16.4 27.0 10.4 Baking Mixes & Flours 12.8 20.5 9.9 Meat & Poultry 9.1 14.4 9.5 Other 7.1 10.5 8.0 Total 90.9 145.2 9.8

Canada Gluten Free Food Market By Revenue

Gluten-Free Certification Program www.GlutenFreeCertification.ca

Market Numbers

Gluten-Free Market Revenue by Retail Format Retail Format 2013 Canada $ Million 2013 Canada % 2013 US $ Million 2013 US % Stand Alone Natural 10.8 11.9 237.0 11.1 Natural Chains 16.3 17.9 358.2 16.7 Grocery 48.5 53.4 1,030.9 48.2 Mass 7.7 8.5 236.3 11.0 Club 4.5 4.9 76.8 3.6 Drug 0.1 0.1 21.4 1.0 Other 3.0 3.3 180.5 8.4 Total 90.9 100.0 2,141.1 100.0

Gluten-Free Certification Program www.GlutenFreeCertification.ca

Competitive Landscape

• New product launches have been

the most widely used strategy in this market.

• Partnerships and collaboration of

the business entities is the second most sought after growth strategy

75% New products 7% Expansion 12% Agreements 6% Mergers & Acquisitions

Gluten-Free Certification Program www.GlutenFreeCertification.ca

Key Brands

Boulder Brands 58%

Dominos Pizza 8%

• Dr. Schar

6% Jovial Foods 5% Bob’s Red Mill 8% Kellogg 5%

Gluten-Free Certification Program www.GlutenFreeCertification.ca

Certification Programs

Observations:

• Consumers have in the past relied upon the natural channel to

provide certified brands of gluten-free products.

• Does this suggest the move into grocery & more mainstream

supports the need for GFCP mark?

• Recent industry workshop on certification programs suggests

consumers lack trust in the food industry (i.e. Rice & Arsenic).

• The use of a mark like GFCP builds confidence in brands.
• Certification of gluten-free products leads to more consistency and

consumer confidence.

• There is no cure for people suffering

from celiac disease and gluten sensitivity.

• The only remedy is to adhere to a strict

gluten-free diet for life which, up until now, has been difficult.

• The gluten-free market is growing at

an exponential rate leading to consumers being confused and

• verw helm ed by the number of

gluten-free label claims on the market.

• The definition of “gluten-free” and/ or

associated regulations vary between countries and government enforcement is limited.

The Problem

Gluten-Free Certification Program www.GlutenFreeCertification.ca

Developed by the Canadian Celiac Association

• ver a 5 year period through consultation with

food industry experts, consumer groups and government stakeholders. Based on globally recognized preventative, food- safety approaches for managing the production

• f gluten-free products.

Designed to meet and exceed Health Canada regulations for gluten-free claims. To provide an easily identifiable and trustworthy mark allowing consumers to easily shop with confidence. Gluten-Free Certification Program www.GlutenFreeCertification.ca

The Solution

Gluten-Free Certification Program

Gluten-Free Certification Program www.GlutenFreeCertification.ca

ACG Industry Expertise

• Gluten-Related Disorders – Celiac disease, non-celiac gluten sensitivity

and the medical aspects of the gluten-free diet

• Research & Demographics – Needs & habits of the gluten-free consumer
• Gluten-Free Solutions – Challenges, opportunities and best-in-breed

solutions in gluten-free supply

• Gluten-Free Safety – Safety issues, including certification, testing and best

practices

• Foodservice Sector – Responding to gluten-free consumer needs

GFCP Strengths & Benefits

Gluten-Free Certification Program www.GlutenFreeCertification.ca

For I ndustry

• GFCP minimizes risk when making a gluten-free claim
• Based on stringent, proven food safety systems (HACCP / GFSI)
• Management of gluten beyond just end-product, testing “thresholds”
• Adaptable for gluten-free in dedicated and non-dedicated manufacturing

facilities

• Certification audits conducted by 3rd party independent auditing companies

following ISO guidelines – (eliminates any possible conflict of interest)

• Expand potential market with private label opportunities and gain access to

those retailers with strict compliance requirements for their GF claims.

• GFCP enables a “go-to-market” opportunity, without un-for-seen and risky

barriers

GFCP Strengths & Benefits

Gluten-Free Certification Program www.GlutenFreeCertification.ca

I n the Marketplace

• Communicates to the consumers your brand is safe and creates

trust and brand loyalty

• Differentiate your brand from other gluten-free claims and

certification but partnering with the leading national celiac

• rganizations in Canada and the US.
• A recent industry workshop on certification programs suggests

consumers lack trust in the food industry (i.e self declarations)

• Access millions of consumers through listing on the CCA and GFCP

websites

• Take advantage of marketing opportunities at the national, regional

and local levels

GFCP Value

Gluten-Free Certification Program www.GlutenFreeCertification.ca

• 90% of consumers understand the GFCP mark to mean “safe”, and

“approved by CCA in Canada & NFCA in the United States”

• 90% of consumers view GFCP mark as a program to help them make safe

gluten-free food choices.

• Consumers trust

GFCP and the Canadian Celiac Association - 90% of celiac consumers trust the GFCP mark because it is a program from the Canadian Celiac Association in Canada and NFCA in the United States

• 82% view the CCA and NFCA as a credible source of food and nutrition

information

• Reasons consumer support the GFCP mark are:

" I want to eat safely" " It is based on science/ research/ independent audits of facilities not just finished products" "I trust the Canadian Celiac Association and National Foundation for Celiac Awareness".

GFCP Value

Gluten-Free Certification Program www.GlutenFreeCertification.ca

2011 Consumer Survey

Gluten-Free Certification Program www.GlutenFreeCertification.ca

W hy are 9 9 % of gluten-free consum ers concerned?

In adults with good dietary adherence, just

43% achieve intestinal healing

This signifies that other causes remain, including possibility of cross-contamination and unintentional gluten ingestion

The Facts Reasons for Gluten free Consumption Marketing Reach 10.0MM+

Gluten-Free Certification Program www.GlutenFreeCertification.ca

• Brand Listings on GFCP and CCA Websites

– Brand logos, product listing, website and social medial links

• Social media mentions

– Facebook, twitter, Pinterest

• Trade Events & Speaking Engagements
• Press releases

Customized marketing opportunities can be created tailored to your needs and objectives:  Blogger and CCA Chapter outreach programs  Public relations activity with monitoring  Audio-postcard email programs  Webinars using celiac experts to educate  Social media content and posting  CCA National and chapter opportunities – E-newsletter & quarterly “Celiac News” – New member packages inserts

The Facts Reasons for Gluten free Consumption Co-Op Marketing

Gluten-Free Certification Program www.GlutenFreeCertification.ca

The Gluten-Free Agency

Product Categories

Fresh / Frozen Bakery Snack Food / Energy Bars Dairy-Free Cheese Dry Goods / Mixes Meat & Poultry Alcoholic Beverages Pharmaceuticals Cereals

Applications to Date The Facts Reasons for Gluten free Consumption GFCP Program Status

Gluten-Free Certification Program www.GlutenFreeCertification.ca

Applications & Certifications 60+ Certified Brands 1,200+ Products 160+ Applications to date 60+ Brands in Process Facilities Audited I n

Canada United States New Zealand Sweden Switzerland India Thailand Italy China

Auditors & CB’s 10 Certification Bodies 90+ Approved Auditors 10 Countries

The Facts Reasons for Gluten free Consumption Certified Brands

Gluten-Free Certification Program www.GlutenFreeCertification.ca

Direct Costs :

• Application Fee: $499

– Brand Owner/ Manufacturer – Private Label Brand Owners – Contracted Manufactures

• Annual Program License Fees

– Based on annual revenue and number of SKUs – Starting at $1000 annually

Additional Costs

• Annual Third Party Audit
• Optional Consulting & Technical Support Services
• Optional Marketing & Communication Relations

Gluten-Free Certification Program www.GlutenFreeCertification.ca

GFCP Costs

Gluten-Free Certification Program www.GlutenFreeCertification.ca

GFCP Certification Steps

Apply to the Program

Obtain GFCP Documentation

Sign your License Agreement

Determine License Fees  Define Products

Conduct your GFCP Audit

Stand Alone  Combine with GFSI/HACCP  Approved Auditing Companies

Apply to the Program Use the GFCP Trademark

Trademark use is Mandatory  Approve Artwork Samples

Gluten-Free Certification Program www.GlutenFreeCertification.ca

In Summary

• The gluten-free category in dynamic growth appears to be a strong

trend not just a fad.

• GFCP is the only Canadian program endorsed by the CCA in Canada.
• Market research confirms the effectiveness of the mark on brands

and higher trial and purchase intent scores with consumers .

• The GFCP is a cost effective way to build trust between your brand

and consumers.

• You are part of a program directing the development of the gluten-

free market and food industry’s future.

Gluten-Free Certification Program www.GlutenFreeCertification.ca

The Facts Reasons for Gluten free Consumption Thank-You

Marketing & Communications Tricia Ryan 1-866-817-0952 x 230 Tricia@allergencontrolgroup.ca Sales & Business Development Mark Curtis 1-866-817-0952 x 228 Mark@allergencontrolgroup.ca