Cranberries’ victory march stops at nothing
Author: Ewa Hudson
Date published: 27 Jul 2009
In recent years, the status of the cranberry has soared from barely palatable to “superfruit”. Euromonitor International charts the progress of the cranberry from juice to packaged foods, and identifies some key considerations for future success.
It all started with juice
Euromonitor International's fresh food data shows that global volume sales of fresh cranberries/blueberries in retailers, foodservice and institutional channels grew by a commendable 20% (from 1.04 to 1.24 million tonnes) over the 2003-2008 review period, but it is safe to say that cranberries had it much tougher than blueberries. Unlike blueberries, which are nowadays found throughout mainstream grocery retailer outlets and which are avidly consumed au natural by an ever-increasing health-conscious, berry-popping public, the tartness of cranberries has proved a major impediment to their success as a healthy fresh fruit snack.
The juice format, by virtue of permitting the addition of sweeteners, was instrumental in cranberries overcoming this hurdle. Arguably, it was the cranberry, together with the difficult-to-eat pomegranate, which gave birth to an entirely new juice category – that of “superfruit juice” or “superjuice”. The juice format makes the more challenging fruits not only palatable, but also highly convenient to consume.
Euromonitor International's health and wellness data shows that value sales of naturally healthy superfruit juice climbed by 50% between 2002 and 2007, reaching US$2.2 billion in 2007. Cranberry juice is increasingly successful outside its North American “home” market. For example, in the UK, cranberry juice is the most popular type of nectar (25-99% juice), accounting for 35% of off-trade volume sales in 2008, and the same goes for Ireland, where almost half of nectar sales were accounted for by cranberry products. In Israel, cranberry juice's share of off-trade nectar volume sales shot from virtual obscurity in 2005 to almost 6% in 2008.
Treasure chest of health benefits
Cranberry juice's roaring success is in no small part being fuelled by manufacturers employing the health and wellness positioning as a marketing platform. Cranberries' most distinctive and most highly publicised health benefit pertains to their application in preventing urinary tract infections (UTIs). The cranberry contains natural plant compounds termed proanthocyanidins (PACs), which are believed to stop harmful bacteria from sticking to the inside of the bladder wall, thus preventing infection. UTIs are a very common female ailment. According to the New England Journal of Medicine, over half of all women suffer from at least one UTI during their lifetime. Recurring UTIs can be very debilitating to live with, and instead of routinely resorting to antibiotics, which are often ineffective, cranberry juice has been adopted by many as the natural remedy of choice.
Other less highly publicised health benefits include the prevention of peptic ulcers caused by helicobacter pylori infection (again through the anti-adhesive action of cranberry compounds preventing the attachment and spread of this bacterium in the digestive tract), dental health (including the prevention of gum disease and cavities), heart-health benefits and anti-ageing properties. The latter two benefits are chiefly attributed to cranberries' high antioxidant content, quantified by the USDA as 1,750 ORAC (Oxygen Radical Absorbance Capacity) units per 100g of fresh fruit – an impressively high value when compared to around 700 for oranges, 950 for broccoli and 1,250 for raspberries. Current research focuses on cranberries' potential anti-cancer action, as well as brain protective qualities.
A dried cranberry is a versatile cranberry
The cranberry's rise to superfruit stardom in the juice domain has served to facilitate its entry into the packaged food realm. Massachusetts-based Ocean Spray Cranberries Inc, which reportedly enjoys a 65% share of the global cranberry market, has been highly influential in pushing the cranberry agenda by squeezing the magic berry into as many product sectors and categories as possible.
The promotion of dried cranberries has been one of the most fruitful of routes, particularly as dried fruit snacks is a huge growth area, propelled by the health and wellness trend. Euromonitor International data shows that global retail value sales of fruit snacks grew by 64% over the 2003-2008 period. Ocean Spray's Craisins line features Original Sweetened Dried Cranberries alongside more adventurous variants, such as Cherry Flavour and Orange Flavour Sweetened Dried Cranberries, as well as several variants of Craisins Trail Mix. The company ranks third in the global fruit snacks market, with a 2% value share in 2007. Its value sales in the category rose from US$37 million in 2001 to US$73 million in 2007.
Dried cranberries, (which are usually sweetened to take the edge off their natural tartness), are a very popular addition to snack bars and breakfast cereals, such as granolas and mueslis. Product examples include Jordans Super Berry Muesli from Jordan Cereals Ltd, the UK's leading muesli maker, and German food giant Oetker Gruppe's Vitalis Knusper Plus Mutri Frucht Müsli. Dried cranberries also feature in more far-out categories such as cheese, for example in traditional UK cheese maker The Wensleydale Creamery's Real Wensleydale with Cranberries. This product carries the Ocean Spray logo, which shows that ingredient co-branding is starting to catch on in the Western European region.
Entry in indulgence sectors hails acceptance as a mainstream flavour option
Admittedly, in terms of shifting cranberry volumes, chocolate confectionery provides a more promising vehicle than cheese, and in July 2009 Nestlé launched Raisinets milk chocolate-covered dried cranberries – also courtesy of Ocean Spray – in the US.
Even more indulgent are offerings like Dark Chocolate Cranberry Truffles from US premium confectionery company Harvest Sweets and the funky Cranberry Bog Frogs product from the upmarket Cape Cod Cranberry Candy Company.
Baked treat foods, such as cakes and biscuits, are also experiencing cranberry infiltration. For instance, UK premium biscuit maker Walkers Shortbread Ltd not only offers Walkers Oatflake and Cranberry Biscuits, but the company also supplies Duchy Originals Ltd with its Duchy Originals Hazelnut & Cranberry Sweet Oaten Biscuits. Duchy Originals Ltd is a leading UK organic food player with a 2% value share of the UK's organic bakery products market.
These developments, and in particular the entry of cranberry into indulgence categories, show that health positioning is no longer the sole driving force behind cranberries' continued success. It seems that consumers have really taken to the distinctive cranberry taste, and have started to expect cranberry versions of virtually any product, which is either fruit-based or conventionally features a fruit component. This includes jams/preserves, yoghurts, desserts, baby food and ice cream, and there is still much room for development in these categories, especially the latter two.
Careful positioning recommended
Cranberry products are incredibly versatile and can be successfully marketed with several positionings. These may sometimes overlap, but it is still important for manufacturers to be clear about which marketing platforms they are leveraging. For example, a health and wellness-oriented positioning works well for fruit snacks, but is unlikely to do the trick for cranberry ice cream. In fact, a seemingly contradictory health and wellness-indulgence positioning may well detract from the product's credibility. An emphasis on cranberries' refreshing taste being ideal in hot summer weather, on the other hand, would be far more conducive.
Even for perfectly suitable products, care has to be taken when deciding how and to what extent to employ the health and wellness marketing platform. For example, any overt claims relating to cranberries' proposed efficacy in alleviating specific conditions, such as urinary tract infections, risks alienating mainstream health and wellness consumers. They may unintentionally be led to associate the product as being “for sick people” as opposed to being helpful in maintaining and improving their general health. A broader “superfruit” and “high in antioxidants” marketing slant is less likely to evoke the dreaded “not relevant to me” consumer reaction, which could easily kill the mass- market appeal aspirations of an otherwise perfectly good, healthy and tasty product.
Dental health a likely mainstream attraction
One product sector in which a very specific health and wellness positioning, namely dental health, is bound to work exceedingly well, is the gum sector. As already mentioned, cranberry compounds appear to be active against plaque, a prime cause of caries, periodontal disease and, above all, bad breath. Dental hygiene is a major consumer concern, as evidenced by the success of the functional gum category. In 1998, 12% of global gum value sales were accounted for by functional gum, while in 2009, this has risen to one quarter. Furthermore, and applying the same rationale, cranberry-flavoured mints stand an excellent chance of pulling in the fresh-breath- hungry crowds.