Healthy Foods Equal Healthy Profits

WASHINGTONSelling more healthy foods not only benefits consumers waistlines, it helps  companies bottom lines. A new study from the Hudson Institute Obesity Solutions Initiative, Better-For-You-Foods: Its Just Good Business," concluded that food and beverage companies that have a higher percentage of product sales in the Better-For-You (BFY) category perform better financially.

BFY foods are defined as a combination of Lite" foods ( foods and beverages that contain no, low, or reduced calories) and "Good" foods (products that generally are considered wholesome, for example wholegrain products, as well as traditional products that have been made healthier but do not qualify as lite.")

The study found that:

·        BFY foods drove a disproportionate share of sales growth in the past five years.

·        Between 2007 and 2011, BFY foods made up roughly 40 percent of sales, but generated more than 70 percent of the growth in salesmore than traditional foods.

·        Companies that have been growing their sales of BFY items faster than sales of traditional items are delivering overall sales growth at over two times the rate.

For the study, researchers examined Nielsen sales data from 15 grocery stores, drug stores, and mass merchandisers. They examined operating income, share price appreciation and return to shareholders, and company reputation and favorability.

Click here for more details on the study.