Published : Nov. 13, 2013 - 19:29
Gluten-free products sit on display at a supermarket in Princeton, Illinois. (Bloomberg)
Grain sellers want to have their gluten-free cake and eat it, too.
As the stretchy protein found in wheat and other grains has become the latest dietary bogeyman, sales at companies like General Mills Inc., Kellogg Co. and Britain’s Warburtons Ltd. have come under pressure. Yet instead of fighting back against what many dietitians contend lacks scientific grounding, they’re boosting output of pricier gluten-free foods while leaving industry groups to defend their traditional products.
Less than 1 percent of Americans have the disorder that requires a gluten-free diet, yet almost one in three now eschews gluten, according to trend watchers NPD Group, influenced by bestselling anti-gluten books and celebrity endorsements. The U.S. market for gluten-free foods will climb from $4.2 billion in 2012 to $6.6 billion by 2017, according to researcher Packaged Facts, as bread bakers, craft-beer makers and eateries from Hooters to Michelin-starred Hakkasan embrace the trend.
“Consumers, rightly or wrongly, have made a connection between gluten-free and healthy,” said Nicholas Fereday, an analyst at Rabobank. “Grain companies are hoping this trend crashes and burns sooner rather than later. But any trend is a marketing opportunity.”
General Mills, the Minneapolis-based maker of Cheerios, has transformed most of its Chex cereal brand into a gluten-free offering by replacing barley malt syrup with molasses. Sales of Chex have jumped by at least 10 percent in each of the past three fiscal years, while the $6 billion breakfast cereal category has remained stagnant. The company makes over 400 gluten-free products, including versions of its Pillsbury cookie dough and Betty Crocker baking mixes. (Bloomberg)