SC Johnson Phases out Phthalates
In Major Product Reformulation
By Lynne Cooke
SC Johnson is continuing to go beyond regulatory requirements by providing ingredient information for its home cleaning and air care products such as Windex, Shout and Glade. Meanwhile, as part of a major product reformulation, the Racine, Wis.-based company is phasing out phthalates, an ingredient which has sparked questions from consumers.
“Today’s families want to know what’s in the household cleaning and air freshening products they use in their homes,” said Chairman and CEO Fisk Johnson. “Making information about the ingredients in our products readily accessible and easy to understand helps our consumers know they can continue to trust our products.”
In the summer of 2008, SC Johnson began working with its suppliers, requiring them to phase out phthalates from the fragrances they supply for SC Johnson products. This action came in response to an increasing number of questions from consumers.
“We continually conduct extensive research and testing to ensure our products meet health, environmental and safety standards, and are effective. We also listen to our consumers, and at the end of the day, we will consider making a change if it’s really important to the families that use our products,” said Johnson.
“The particular phthalate that raised concern – DEP – has been extensively researched and has been deemed safe by various scientific bodies,” he pointed out. “But the larger class of substances in the phthalate family has been more hotly debated, and we understand that sometimes whole categories of substances can erroneously be seen as concerning despite individual items being safe. So even though the chemistry was sound, we decided that making sure consumers know they can trust SC Johnson products was well worth the time and cost to change them.”
DEP has been included in some of the fragrances that SC Johnson sources for its products, and used in very small amounts. It is the only phthalate that was used in the fragrances in SC Johnson home cleaning and air care products. Working with its partners in the supply chain, the company developed a plan to eliminate the use of any phthalates in the fragrances supplied to SC Johnson. The plan is now well underway with new and reformulated products being produced without phthalates. The company expects to be out of phthalates completely within the timeframe of this plan.
“A trip to the drugstore or supermarket shouldn’t turn into a guessing game, especially when your family’s health is involved,” said Frances Beinecke, president of the Natural Resources Defense Council (NRDC). “SC Johnson is looking at the future in the right way. Their customers will now be able to make informed choices about what to use in their homes. We hope other companies will follow the example that SC Johnson has now set for its household cleaners and air freshening products.”
Johnson also announced today that SC Johnson will implement an innovative and expansive ingredient communication program.
“Consumers want transparency, and we’re committed to providing it,” he said. “First and foremost, that means information that’s clear, always honest and easy to understand. And second, it means making that information available through a variety of readily accessible channels.”
This ingredient transparency will build substantially on an industry right-to-know initiative announced in late 2008. In that voluntary effort, companies would list ingredients – excluding dyes, fragrances and preservatives – online, on product labels, via toll-free number or using some other non-electronic means.
Johnson applauded this responsible move by industry, and wanted to take the initiative further. The company’s program includes:
- Information will be available through not one but three means – a dedicated web site (www.whatsinsidescjohnson.com), the company’s toll-free number (1-800-558-5252) and on product labels that will be phased in for all air care and home cleaning products.
- SC Johnson intends to list all of its ingredients – a move that includes dyes, preservatives and fragrance ingredients. Fragrances will be shared by listing all ingredients that could potentially be included in the fragrance. This approach aims to protect the proprietary details of the specific formulation of individual fragrances, which are a trade secret and competitive advantage for SC Johnson and its supply chain.
- SC Johnson will populate its ingredient web site in both English and Spanish, with the Spanish-language information being added in the second half of 2009. Additionally, SC Johnson Canada will be joining the initiative in the next year, adding Canadian products and providing information about them in both English and French. This will extend the consumer reach by approximately 11 million.
SC Johnson’s effort will be rolling out from now through January 2012, with continually increasing information being available on labels, the web site and through the company’s consumer hotline. All air care and home cleaning products will be included by 2012.
“While some companies may feel it’s enough to post a list of products and ingredients, at SC Johnson we believe communication is about more than just data – it’s about context and explanation too,” said Johnson. “Our site aims to really connect the dots, by giving details not just about what ingredients are used, but also what their functions are in our products, as well as other product information.”
The web site launched with information about several SC Johnson products including Windex Outdoor, Shout Wipes, Glade aerosol, the company’s new Nature’s Source cleaning products and more. These products are included as examples of what the site will provide when fully populated by January of 2012. Products will be added on a rolling basis.
Market Watch
Expo Showcases Strength of Natural/Organic Products
By Lynne Cooke
Despite a declining economy, natural and organics are still growing.
This vibrancy was on display at the 29th annual Natural Products Expo West/Supply Expo recently in Anaheim, Calif. where over 53,000 attendees shattered last year’s attendance record. The event showcased the newest and most innovative products in natural, organic and healthy living.
“The show floor here certainly does not look like there’s a recession in this country,” said Stephen Brooks, Co-CEO, of Kopali Organics, a Miami-based company that buys from small organic farmers from around the world.
According to Nutrition Business Journal, consumer sales of these health-oriented products grew an estimated 9% in 2008 to more than $100 billion.
Natural Products Expo West 2009 occupied 300,000 square feet and featured more than 1,900 exhibiting companies from 28 countries, with 484 new exhibitors. Co-located events included Fresh Ideas Organic Marketplace, Healthy Baking Seminar, Nutracon and SupplyExpo, which featured the latest ingredients and manufacturing supplies.
“Products and technologies introduced at SupplyExpo allow manufacturers to get a head start in highly competitive and emerging markets around the world,” said Len Monheit, supply portfolio director with New Hope Natural Media.
Anti-Aging Tops Facial Skincare
Americans are pouring more money into the fountain of youth known as anti-aging skincare. According to a new report from market research firm Mintel, sales of anti-aging skincare products rose to over $1.6 billion in 2008. For the first time, anti-aging sales surpassed sales of facial cleansers, which garnered nearly $570 million in 2008.
The market for anti-aging skincare has grown rapidly over the past couple years, according to Mintel. U.S. sales rose 13% from 2006 to 2008, outpacing general facial skincare sales, which grew less than 11%. Mintel expects the market to remain robust over the next five years, growing some 20% through 2013.
Decline for Housewares
The housewares industry saw declines across the board, undoubtedly as a result of the current economic situation, according to researcher NPD. In fact, the bakeware and cookware categories each had declines of nearly 4% in dollars, based on NPD’s Retail Tracking Service. The clear standout in 2008 was cast iron cookware and bakeware. Those segments grew by 27% in dollar sales, compared to 2007.
In the same time period, glass bakeware segment (accounting for 15% of the bakeware category) grew by 6%. Glass dinnerware (glass/tempered glass/glass-ceramic), though a small segment of the dinnerware market, grew almost 8% in dollars during 2008. Glass beverageware declined nearly 8%, a positive when compared to crystal and acrylic options, each showing a decline of more than 17%. Crystal giftware declined the most with nearly a 20% drop in dollars compared to 2007.
MARCH 2009
Are Candy Brand Extensions Sweet or Sour Idea?
By John Karolefski
Line and brand extensions of popular confections continue to fill grocery stores. Wrigley’s iconic Lifesavers brand now comes in five flavors of Lifesavers Gummies. The classic Hershey Kisses sits on the shelf next to Cherry Cordial Kisses. Snickers and Twix from Mars Snackfood US led to Snickers Ice Cream Bars and Twix Ice Cream Bars in the frozen food case. And so it goes.
Why do companies even launch line and brand extensions?
“It’s the cheapest way to introduce a new product,” says Laura Ries, a branding consultant. “You don’t have to spend millions of dollars on advertising establishing your brand’s credibility because everybody already knows your brand name. That’s why 90% of new supermarket brands are line extensions.”
Ryan Bowling, spokesperson for Mars Snackfood US, explains that a brand venturing into line extensions has to earn trust and respect from the consumer.
“With the success of a brand comes innovation, which allows for more opportunities for the brand or product to live in consumers’ lives,” he says. “We try to create top-of-mind awareness and generate additional purchase occasions. We’re building on iconic brands that already have strong credibility, years of marketing behind them, and strong consumer support. Consumers feel a connection with these brands. We’re offering that connection to the consumer two, three, or four times with these line extensions
“Sometimes we launch limited editions to gauge consumer interest and ensure longevity is in sync with the core brand. It does work in a defensive mode. It also creates that brand block,” he says.
The “brand block” is the best way to stake out a lot of territory on the shelf. Manufacturers like the idea of brand blocks for obvious reasons.
“The most fought-over territory in the entire world is the retail shelf space. The more products you load into a shelf, the more competitive products you are crowding out,” says Rob Frankel, a branding consultant.
But their trading partner might not like that idea.
“The retailers that I have worked with for the most part have preferred variety of brands to being brand blocked,” says Frankel. “It gives the perception to the consumer that they offer a wider selection, which is what consumers want. Retailers think it’s better to show variety rather
than uniformity.”
Before developing a line extension, Mars Snackfood US considers several factors, such as mass awareness, demand in the category, and pop culture trends. One product that met the criteria was M&M’S Premiums. The candy features iridescent, two-tone colors, a soft shell that melts in the mouth, and five flavors that incorporate dark, milk and/or white chocolate.
M&M’S Premiums and frozen desserts such as Snickers Ice Cream Bars illustrate the difference between a line extension and a brand extension. The former extends a product within its category, usually with different flavors, sizes, and varieties. For example, M&M’S Premiums. A brand extension, however, moves the brand into another category, such as from a Snickers candy bar to the frozen dessert.
Another example is Pop Rocks, the original brand of popping candy, to Pop Rocks Chocolate Bar, which is a line extension. But Pop Rocks Topping is a brand extension because the brand leaves the candy aisle. Other examples: Starbucks Dark Chocolate Bar from Artisan Confections Company, Sweet ’n Low Coconut Almond Clusters from Simply Lite Foods Corp., and Baskin Robbins Hard Candy from BestSweet, Inc.
Extending brands outside their core category is risky business for manufacturers, branding experts say. The danger of the same brand in different categories is possible damage to the core brand by perhaps compromising its original promise to consumers.
Frankel suggested that manufacturers need to stay within boundaries and not cross them too explicitly. Most follow that advice.
“That is why you will never see Snickers motor oil,” he said.
Market Watch
‘Mood Foods’ Emerge as Rising Star on Grocery Shelves
By Rose Anthony
Mood-enhancing and heart-healthy foods are emerging as a dominant force on grocery shelves as the rate of heart disease rises among the American population, according to a report from consulting firm Kline & Company.
The report shows that while the so-called “functional foods” industry has so far focused mainly on physical benefits and health claims, the new trend is towards products that tout mood, emotional, and cognitive health claims.
While functional foods and beverages are broadly defined as fortified and enhanced products that offer additional health benefits beyond nutrition, “mood foods” claim to uplift mood, boost mental health, or improve cognitive functions by stimulating brain chemicals known as neurotransmitters.
Kline says that while mood foods compete directly with a number of dietary supplements that make claims of stress and anxiety reduction and mood enhancement, the supplements market contains a plethora of products with unsubstantiated claims and dubious ingredients. Mood foods that backed by scientifically-based, proven claims of efficacy are more likely to be commercially successful.
In a related subject, Kline will be releasing the “Global Functional Foods and Beverages 2009: Heart Health Market Analysis and Opportunities” report, which will examine company-level and brand-level sales, innovation and new product trends, regulatory impacts on claims, retail trends, and forecasts to 2013. Research will focus on products that contain heart health components, including EGCG, omega-3 fatty acids, fiber, plant sterols and stanols, polyphenols, reservatrol, and vitamin D.
Additional information on both reports can be found at klinegroup.com/reports/f0802.asp and klinegroup.com/reports/y670.asp
‘Guiding Stars’ on the Move
Guiding Stars Licensing Co. (GSLC) has named Campbell Associates its licensing agent. The companies will work together to identify and secure opportunities to implement the “Guiding Stars” nutrition-rating system in new and diverse venues across the United States.
Billed by the company as the world’s first comprehensive nutritional navigation program, science-based Guiding Stars rolled out in September 2006 at Hannaford Supermarkets in response to consumer demand. It has broad relevance to supermarkets, packaged food companies, as well as food service establishments. The system has since been implemented at over 1,400 Hannaford, Sweet Bay and Food Lion stores, in addition to a school district
in Maine.
Inexpensive Coffee Brands Score
Some types of inexpensive ground coffee rated as good as or better than higher-priced brands in a comparison test conducted by Consumer Reports magazine in its March issue.
The top caffeinated coffee, Eight O’Clock Coffee 100% Colombian, was also one of the most reasonably priced, at $6.28 per pound or 15 cents per 6-ounce cup (using the manufacturer’s suggested amount). It beat out brands like Gloria Jean’s and Peet’s Coffee, which sell for $13-$14 a pound (32 cents a cup).
The top decaffeinated brand was Dunkin’ Donuts Dunkin’ Decaf (19 cents a cup), followed by Millstone Decaf 100% Colombian Medium Roast (14 cents) and Folgers Gourmet Selections Lively Colombian Decaf Medium Roast (11 cents). One of the more expensive brands, Starbuck Coffee Decaf House Blend Medium, was rated only “fair.”
