By David Jones - Analysis
CHICAGO (Reuters) - The food industry is turning to healthier product lines to fight off the effects of the weak U.S. economy and help price hikes stick after a big leap in commodity costs.
The emergence of so-called health and wellness foods with lower fat, sugar and salt are aimed at keeping consumers buying premium brands even amid the escalating credit crisis, high fuel prices and housing meltdown.
Industry giants such as Kraft, General Mills, Sara Lee, ConAgra, Unilever and Danone all told the Reuters Food Summit in Chicago that healthy products were on top of their menus in insulating themselves from the U.S. economic malaise as they showed much higher growth than more-traditional selections.
Some companies said the health benefits of the new products helped attract customers squeezed by the price rises forced by the spiraling cost of commodities such as wheat, corn, milk and crude oil.
Kraft Foods Inc (KFT.N: Quote, Profile, Research, Stock Buzz), which leads the industry in North America, said health and wellness was key, and its "better for you" products were growing two to three times as fast as others.
The maker of Oreo cookies, Philadelphia cream cheese and DiGiorno pizzas said its healthy initiatives covered 30 percent of its lines and stretched across all of its five categories of beverages, snacks, cheese, grocery and convenience.
"Health and wellness is a priority," Rick Searer, president of Kraft North America, told the Reuters Summit.
General Mills Inc (GIS.N: Quote, Profile, Research, Stock Buzz) said all its breakfast cereals, including Cheerios, contained whole grain as part of its health and wellness drive. In addition, its Yoplait yogurts have added vitamin D, and the company has introduced low sodium-soup choices at its Progresso brand. Continued...
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