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R e s t a u r a n t D a i l y N e w s 5 5 S a t u r d a y, M a y 1 6 , 2 0 1 5 SERVING THE FEW ALSO SERVES THE MANY By Lorrie Baumann Serving special diet food tribes, includ- ing Paleo, vegan and vegetarian eaters, may pay dividends for grocers, a strate- gist for New Hope Natural Media told an audience of Natural Products Expo West attendees. Natural Products Expo West was held March 5-8 in Anaheim, California. "A lot of forces are driving products and in what consumers want and are looking for," said Eric Pierce, Director, Strategy & Insights, for NEXT at New Hope Natural Media. NEXT is New Hope's business intelligence unit. Pierce noted that grocers are seeing a growing consumer awareness about food, a shift in the values that are driving purchasing decisions, that consumers are finding it more worthwhile to invest their time in food, and that natural foods are continu- ing to mainstream into the food market- place. He noted that two nascent trends in particular that should be of interest to grocery retailers: new interest in special diets, especially Paleo and vegan diets, and the beginning of a migration of prod- ucts that we know as shelf-stable to new offerings that require refrigerated storage as consumers express their preference for foods with less preservatives. These new trends are already affect- ing sales patterns. While conventional food sales are currently flat, survey data indicates a 12 percent growth in the nat- ural and organic sector in 2014. Although the size of the vegan and Paleo popula- tions are now small, with Paleo eaters accounting for only 6 percent of the American population, the number of Paleo eaters is growing at 56 percent per year and is expected to quadruple by 2018, while the number of vegetarians and vegans is expected to be growing at a 23 percent rate by 2018. These growth rates represent a siz- able opportunity for retailers willing to cater to them, Pierce said, especially since products that appeal to these special diet tribes also appeal to other shoppers who share some, but not necessarily all, of their values. And that can be very easy to do, said Melissa Hartwig, New York Times – bestselling author of "It Starts with Food" and the upcoming "The Whole30: The 30-Day Guide to Total Health and Food Freedom." "Retailers don't have to decide between promoting vegan or Paleo, because there's actually a ton of overlap. Put up a sign in the produce section that says, '100 percent of these items are vegan, and 99 percent of them are Paleo.' If you find a way to demonstrate that, your store will be welcoming to every- body. I would love to walk into my natu- ral foods store and see that sign. I would take a picture and Instagram that sign," she said. Catering to vegans allows a grocer also to connect with vegetarians, who generally eat dairy products, and flexitar- ians, who eat a mostly vegetarian diet but do allow for the occasional consumption of meat. Paleo eaters eat seafood and meat, preferably grass-fed meats, and fruits and nonstarchy vegetables but abstain from cereal grains, legumes and processed foods. Many Paleo eaters also abstain from dairy products, according to ground rules defined by Loren Cordain, PhD, who is credited with founding the modern Paleo food movement. Paleo dieters are a source of inspira- tion for those who want to incorporate more whole foods into their diet as well as those interested in a diet that's higher in fiber. Although only 6 percent of the American population is now following a Paleo diet, about 39 to 52 percent of con- sumers exhibit behaviors similar to the values of Paleo and vegan consumers, so spending time talking to customers who lean in the direction of Paleo or vegan is one way to learn how to reach both groups of shoppers, Pierce said. "It is easy. It's nice for grocers to have a Paleo section or item markers on Paleo alternatives, for instance, to see a Paleo tag on a package of grass-fed jerky or a bottle of coconut aminos, which are a soy sauce substitute, or a jar of almond butter. These are things that are real food, whole food, and they fall under a Paleo template. We don't need more grain-free pasta, breads or crackers," Hartwig said. "People who change to a Paleo diet do so in order to change their relationship to food and break unhealthy cravings. If your grocer is highlighting a bunch of grain-free, dairy-free dessert options, they're not doing our population a serv- ice. And trust me, if Paleo dieters want to find that stuff, we know where to look." Knowing what products appeal to consumers following special diets will help a grocer connect with that tribe, and understanding the products and how they fit into the tribe's values can help connect those products with the food tribe and also to a wider customer base, Pierce said. Educating staff about superfoods helps connect with vegans and vegetari- ans, since those consumers are usually looking for nutrient-dense foods. And since more shoppers are replacing expen- sive meat proteins with less expensive choices like nuts, beans or lentils, dairy and eggs, the products that appeal to veg- etarians will appeal to that budget-con- scious group of shoppers as well. Pierce pointed to the gluten-free movement as a model for understanding the needs of a niche population and for how under- standing the concerns of a small group of consumers can help a grocer serve a much larger group too. "The most important thing I think for grocers to understand about a Paleo eater is that we are not interested in recre- ating junk food with alternative flours or Paleo ingredients. Paleo eaters are focused on nutrient-dense whole foods, just like vegetarians and vegans, so gro- cers can accommodate our tribe by high- lighting the nutrient-dense whole foods they carry and by highlighting that they pay attention to where those foods come from – whether they're local, organic, grass-fed, pastured," Hartwig said. "That's really what a Paleo eater is going to walk into a grocery store and look for – is this grocer highlighting for me real food options and do they care about where it comes from – especially the ani- mal protein sources." JAMES M. COX FOUNDATION SUPPORTS FARM TO SCHOOL PROGRAM The James M. Cox Foundation has made a $250,000 grant to Georgia Organics in support of the organiza- tion's Farm to School (F2S) program. F2S is a nationwide movement that connects schools and local farms to serve healthy meals in school cafete- rias, improve student nutrition and promote farm or gardening educational opportunities. Georgia Organics founded the state's first F2S program in 2007 and has since implemented the pro- gram in 30 school districts. The organ- ization currently has a three-year fundraising campaign that will deepen the existing F2S programs with an anticipated impact on 900,000 students statewide. "It is an exciting time to be a part of the Farm to School movement," said Alex Taylor, Cox Enterprises Executive Vice President and great- grandson of company Founder James M. Cox. "These programs not only bring healthy food to our children, they also teach them about how to grow healthy food and that is a power- ful investment in the future." The F2S program increases children's exposure to fresh fruits and vegetables, as well as provides positive economic benefits. According to the Georgia Department of Economic Development, agribusiness is the state's leading industry and contributes $71.1 billion to Georgia's economy. However, much of what Georgia grows is sent out of state. The F2S program allows farmers to sell closer to home and introduce children to Georgia's rich agricultural heritage. "A successful Farm to School pro- gram depends on many partners, and the James M. Cox Foundation is play- ing an important role in our expan- sion," said Georgia Organics' Executive Director Alice Rolls. "Farm to School has a great story to tell through offering fresh, healthy foods, lifetime learning experiences, school gardens, recycling techniques, com- posting, farm visits and more. By par- ticipating in these programs, Georgia's students have the opportunity to expe- rience history and achieve a healthier future." Cox Enterprises is a long-time partner of Georgia Organics through its national sustainability program, Cox Conserves. U.S. DAIRY MANUFACTURERS CALL FOR REPLACEMENT OF JAPAN'S IMPORT SYSTEM In a letter to U.S. Trade Representative Michael Froman and Secretary of Agriculture Tom Vilsack, the International Dairy Foods Association recently called for the replacement of Japan's current import administration program in the Trans-Pacific Partnership, calling it a potential Achilles heel in the negotiations. Japan's Agriculture and Livestock Industries Corporation is the state-trad- ing enterprise that administers the coun- try's manufacturing milk quotas and imports of dairy products under tariff rate quotas. IDFA believes that ALIC oper- ates in a trade-distorting and inconsistent manner that makes it difficult for U.S. dairy exporters to access the market. "Suffice it to say that its administra- tion of Japan's import constraints on dairy products is the antithesis of free and open trade. ALIC is in total control of Japan's dairy imports," said Connie Tipton, President and CEO of IDFA. "The financial benefits of the system flow entirely to the government, after which those financial 'gains' are shared with Japanese dairy producers. It would be difficult to imagine an import man- agement system that is more trade dis- tortive than this one." IDFA sent the letter in advance of bilateral meetings and the TPP Ministerial held recently in Sydney, Australia. IDFA urged the officials to seek to replace the current ALIC system with a tariff rate quota system as part of the bilateral negotiations with Japan. IDFA supports significant and real market access into Japan for all dairy products that would reach across all tariff lines and ultimately bring tariffs to zero within a reasonable transition period. Based in Washington, D.C., the International Dairy Foods Association represents the nation's dairy manufactur- ing and marketing industries and their suppliers, with a membership of 550 companies within a $125-billion a year industry. IDFA is composed of three con- stituent organizations: the Milk Industry Foundation, the National Cheese Institute and the International Ice Cream Association. IDFA's nearly 200 dairy processing members run nearly 600 plant operations and range from large multina- tional organizations to single-plant com- panies. Together they represent more than 85 percent of the milk, cultured products, cheese, ice cream and frozen desserts produced and marketed in the United States.