Sports and Energy Bars - US - July 2003

SUMMARY

This report provides a detailed analysis of the sports and energy bars marketin the U.S. In the mid 80s, the first sports and energy bars were introducedand geared toward serious athletes, through alternative channels of distributionsuch as health food stores. The bars, which were often dry, hard and crumbly,were not relevant to mainstream consumers. Todays category is redefiningitself, emerging as a mainstream food option that is outpacing drinks andpowders.

Mintel defines sports and energy bars largely by where they are likely to befound in a store. In typical supermarkets, mass merchandisers, and warehouseclubs, sports and energy bars are separate from "cereal bars," whichare not covered by this report. Sports and energy bars are typically locatednear vitamins and supplements, sold both individually and in boxes. Top sellersinclude SlimFast, Power Bar, Clif Bar and BALANCE Bar.

Over the last decade, the competitive arena has transformed from a fragmentedmarket with small and regional players to the influx of conglomerates withsophisticated distribution and marketing programs at their disposal. The marketfaces vital challenges and opportunities ahead as the category continues todevelop.

Among the key issues covered in this report are the move from niche tomainstream consumer, the shift to wide distribution, the displacement of agingproducts, and the demands of the modern lifestyle. Original consumer researchexamines attitudes and behavior by age, gender, ethnic and economic groups.Particular attention is paid to the major players in the market, and a six-yeartrend analysis predicts future growth.

Research data and analysis answer questions such as:

• What is the primary consideration for consumers choosing a sports or energybar?
• Which advertising has been the most successful for this sector?
• When are consumers eating sports/energy bars?
• What is the link between athletics and sports/energy bars?
• Cookies & Cookie Bars, consumer intelligence--U.S. Report, August 2003
• Energy Drinks, consumer intelligence--U.S. Report, July 2003
• FDA Foods, consumer intelligence--U.S. Report, April 2003
• Cereal Bars, consumer intelligence--U.S. Report, August 2002
• Energy Supplements, consumer intelligence--U.S. Report, March 2002
• Ingredient Trends, consumer intelligence--U.S. Report, December 2001
• Slimming Drinks & Diet Aids, U.S. consumer intelligence, October 2001
• Functional Beverages, consumer intelligence--U.S. Report, September 2001
• Functional Foods, consumer intelligence--U.S. Report, September 2001
• Sports Drinks, consumer intelligence--U.S. Report, July 2002
• The Bottled Water Market, U.S. consumer intelligence, July 2001
• The Yogurt Market, U.S. consumer intelligence, June 2001
• The Milk Market, U.S. consumer intelligence, May 2001

TABLE OF CONTENTS

INTRODUCTION & ABBREVIATIONS

• INTRODUCTION
• OTHER RELEVANT REPORTS
• DEFINITION
• ABBREVIATIONS & TERMS
• Abbreviations
• Terms

EXECUTIVE SUMMARY

• FROM NICHE CONSUMER TO MAINSTREAM CONSUMER
• SHIFT TO WIDE DISTRIBUTION
• AGING PRODUCTS ARE BEING DISPLACED
• SEGMENTATION CONTINUES TO TRANSFORM THE MARKET
• MAINSTREAM ADVERTISING
• CONSUMER SURVEY SHOWS STILL MUCH ROOM FOR GROWTH
• THE FUTURE

MARKET DRIVERS

• Lifestyle Demands
• Wellness hits mainstream
• Challenges yet to overcome
• Help from the FDA
• TASTE IS KING
• WIDENED DISTRIBUTION

MARKET SIZE & TRENDS

• Figure 1 Total U.S. retail sales of sports and energy bars, at current and constant prices, 1997-2003
• Graph 1 Total U.S. retail sales of sports and energy bars, at current and constant prices, 1997-2003

MARKET SEGMENTATION

• OVERVIEW
• Figure 2 Sales of sports and energy bars, by segment, 2000 & 2002
• Graph 2 Sales of sports & energy bars, by sector, 1997-2002
• LIFESTYLE/WELLNESS BARS
• Figure 3 Sales of lifestyle/wellness bars, 1997-2002
• Organics
• Special health claims
• DIET BARS
• Figure 4 Sales of diet bars, 1997-2002
• ATHELTIC BARS
• Figure 5 Sales of athletic bars, 1997-2002

SUPPLY STRUCTURE

• FOREIGN TRADE COMPANIES AND BRANDS
• Figure 6 Top manufacturers and brands of sports & energy bars in the U.S., by FDM sales, 2000 & 2002
• Sports and energy bar company profiles
• Atkins Nutritional Inc. (ANI)
• Clif Bar, Inc.
• ZonePerfect Nutrition (Eicotech)
• Experimental Applied Science (EAS)
• Kraft Foods/Nabisco/BALANCE Bar
• Nestl??/PowerBar
• Rexall Sundown/Met-Rx/Richardson
• Unilever/Slim-Fast

ADVERTISING & PROMOTION

• INTRODUCTION
• COMPANY & BRAND ACTIVITY
• Atkins Nutritional, Inc. (ANI)
• Clif Bar
• Experimental Applied Science (EAS)
• ZonePerfect Nutrition (Eicotech)
• Kraft/Nabisco/BALANCE Bar
• Rexall Sundown/Met-Rx/Richardson
• Nestl??/PowerBar
• Unilever/Slim-Fast

RETAIL DISTRIBUTION

• INTRODUCTION
• Figure 7 U.S. retail sales of sports & energy bars, by channel, 2000 & 2002
• Graph 3 Retail distribution share of the sports and energy bar market, 2002
• Graph 4 Trends of retail distribution share of the sports and energy bar market, 1997-2002
• Figure 8 Changes in U.S. retail shopping behavior, by channel, 2000 & 2002
• SUPERMARKETS
• Figure 9 U.S. supermarket sales of sports and energy bars, 1997-2002
• Figure 10 Top supermarkets, by number of stores, March 2003
• Figure 11 Top supermarket retailers, by sales, financial years ending 2002 & 2003
• DRUG STORES
• Figure 12 U.S. drug store sales of sports and energy bars, 1997-2002
• Figure 13 Top drug store retailers, by number of stores, March 2003
• Figure 14 Top drug store retailers, by sales, financial years ending 2002 & 2003
• MASS MERCHANDISERS
• Figure 15 U.S. mass merchant store sales of sports and energy bars, 1997-2002
• Figure 16 Number of mass merchandiser retailers, March 2003
• Figure 17 Top mass merchandiser retailers, by sales, financial years ending 2002 & 2003
• CONVENIENCE STORES
• Figure 18 U.S. convenience store sales of sports and energy bars, 1997-2002
• Figure 19 Number of convenience store retailers, March 2003
• Figure 20 Top convenience stores, by sales, financial years ending 2002 & 2003
• HEALTHFOOD SUPERMARKETS
• Figure 21 U.S. natural/healthfood store sales of sports and energy bars, 1997-2002
• Figure 22 Top healthfood retailers by number of stores, March 2003
• Figure 23 Top healthfood retailers, by sales, financial years ending 2002 & 2003
• THE INTERNET

THE CONSUMER

• INTRODUCTION
• INCIDENCE AND FREQUENCY OF SPORTS AND ENERGY BAR CONSUMPTION
• Figure 24 Incidence and frequency of consumption of sports and energy bars, May 2003
• Figure 25 Incidence and frequency of consumption of sports and energy bars, by gender, May 2003
• Figure 26 Incidence and frequency of consumption of sports and energy bars, by age, May 2003
• Figure 27 Incidence and frequency of consumption of sports and energy bars, by income, May 2003
• Figure 28 Incidence and frequency of consumption of sports and energy bars, by race/ethnicity, May 2003
• OCCASIONS FOR EATING SPORTS AND ENERGY BARS
• Figure 29 Occasions for eating sports and energy bars, May 2003
• Figure 30 Occasions for eating sports and energy bars, by gender, May 2003
• Figure 31 Occasions for eating sports and energy bars, by age, May 2003
• Figure 32 Occasions for eating sports and energy bars, by income, May 2003
• Figure 33 Frequency of eating sports and energy bars vs. occasions they are eaten, May 2003
• ASPECTS OF SPORTS AND ENERGY BARS WHICH INFLUENCE PURCHASE
• Figure 34 Aspects of sports and energy bars which influence purchase, May 2003
• Figure 35 Aspects of sports and energy bars which influence purchase, by gender, May 2003
• Figure 36 Aspects of sports and energy bars which influence purchase, by age, May 2003
• Figure 37 Aspects of sports and energy bars which influence purchase, by income, May 2003
• Figure 38 Frequency of eating sports and energy bars vs. aspects which influence purchase, May 2003
• HEALTH BEHAVIORS ASSOCIATED WITH EATING SPORTS AND ENERGY BARS
• Figure 39 Those who eat energy/diet bars vs. those presently dieting to lose weight, January-September 2002
• Figure 40 Those who eat energy/diet bars vs. frequency of exercise, January-September 2002
• Figure 41 Those who eat energy/diet bars vs. types of sports participated in, January-September 2002
• SUMMARY

FUTURE & FORECAST

• FUTURE TRENDS
• Figure 42 Composition changes in the U.S population, by race/ethnicity
• Opportunities waiting to be grasped
• Manufacturers reach into other categories
• Blurring segment lines
• New formats come with move from niche item towards consumer staple
• Figure 43 Forecast of U.S. retail sales of sports and energy bars, at current and constant prices, 2003-08
• Graph 5 U.S. retail sales of sports and energy bars, 1998-2002, and forecast, 2003-08

APPENDIX: BRANDS BY SEGMENT

• Figure 44 Sports & energy bars, brand listing and segment classification

APPENDIX: TRADE ASSOCIATIONS

APPENDIX: NEW PRODUCT DEVELOPMENTS

• CATEGORY REVIEW
• Figure 45 New product introductions of sports and energy bars, 2000-03
• NEW PRODUCT BRIEFS
• PepsiCo/Frito-Lay: Gatorade Chocolate Chip Energy Bar
• CarboLite Foods: CarboRite Sugar-Free Crispy Nutrition Bars
• Clif Bar: Luna Bar
• Kraft Foods: BALANCE Oasis Nutrition Bar
• Atkins Nutritionals: Indulge
• Nestl?? USA: PowerBar Pria
• GeniSoy: Soy Protein Nutrition Bars
• Unilever Foods: Slim-Fast Snack Options
• EAS: Results for Women

APPENDIX: RESEARCH METHODOLOGY

• CONSUMER RESEARCH
• Sampling & Weighting
• Presentation & Definition
• Further Analysis
• TRADE RESEARCH
• Informal trade research
• Formal trade research
• DESK & INTERNET RESEARCH SOURCES
• DEFINITIONS
• FORECASTS

APPENDIX: WHAT IS Mintel?

• Mintel PUBLICATIONS
• Mintel SERVICES
• Product retrieval
• Retail audits
• Tailored research
• Global New Products Database
• RESEARCH SUPPORT/CONSULTANCY/MIC
• The Mintel Information Centre (MiC)
• PR Research