HPR Business Plan for Kelloggs

Honors Program at the University of Rhode Island Senior Honors Project Year 2007 Business Proposal: Kellogg’s Inc Product: Cholesterol Lowering Snack bar University of Rhode Island Nicole St Jean Business Proposal: Kellogg’s Co Product: Cholesterol Lowering Snack bar Nicole St Jean University of Rhode Island Candidate for: B.A in Biological Science B.S in Business Administration: Marketing Faculty Sponsor: Dr Edward Mazze, Business Administration Professor May 2008 Table of Contents Page I Executive Summary………………………………………….……………… …4-6 A Description of Product/Technology………………………………………… 6-8 i Technical Information………………………………………………….8-10 B Intellectual Property…………………………………………………………10-13 II Industry Description………………………………………………………………14 A Size and scope of industry………………………………………………… 14-15 B Future direction of industry ………………………………………………… 15-16 C Life-Cycle of the Industry………………………………………………………16-17 III Industry Competitiveness……………………………………………………… 18 A Major Industry Leaders …………………………………………………… …18-19 B Direct and Indirect Competition…………………………………………… …19-21 C Barriers/Obstacles to Market Entry…… …………………………………… 21-22 IV Market Potential (US and Global) …… …………………………………… 22-25 A Target Market …… …………………………………………………………… 25 B Customers' Needs and Price Expectations……… …… ……………………… 26 C How Customers Benefit from Product(s) …… ………………………………26-27 V Costs A Costs of manufacturing the product…… …………………………………… 28 VI Conclusion A Recommendations…… ……………………………………………………… 29 VII Works Cited…… …………………………………………………………… 29-32 I Executive Summary This report encompasses a business proposal that I have designed for Kellogg’s Co, an international cereal and convenience food company founded in 1906, headquartered in Battle Creek, Michigan This proposal outlines the innovative technology of adding plant sterols and stanols (phytosterols) to foods and beverages to develop cholesterol lowering products Kellogg’s Co specializes in producing cereals and convenience food products, manufactured in 17 different countries and marketed to 180 countries worldwide Kellogg’s maintains a diverse product line including: cereals, portable snacks, cookies, crackers, natural, organic and frozen brands, as well as some specialty channels Kellogg’s is the world’s leading producer of cereal and convenience foods and has a strong commitment to health, nutrition and quality Kellogg’s Co had sales last year of $12 billion, and plans to remain consistent with its core business strategy that it has maintained over the past years, to grow its cereal business, expand its snack business, and pursue selected growth opportunities.2 Kellogg’s Co Website 2008 20 March 2008 http://www2.kelloggs.com/General.aspx?ID=466 Kellogg’s Annual Report 2008 20 March 2008 http://www.shareholder.com/visitors/dynamicdoc/document.cfm? CompanyID=K&DocumentID=2112&PIN=&Page=7&Zoom=1x My decision to focus on expanding Kellogg’s product line stems from its very well recognized and credible company name and its large customer base Since, one of Kellogg’s main focus is on snacks products, it would be a great opportunity to increase one of its product lines to cater to the growing consumer demands of on-the-go and healthy snack products In a recent study conducted by the International Food information council in 2007, it was discovered that 70% of consumers are making changes to improve the healthiness of their diets Also, 36% of American consumers (up from 23% in 2006) said they are increasing their consumption of specific foods and beverages to maintain a better diet Studies done by the International Food Information Council also indicate that 80% of consumers believe in benefits offered by foods and beverages to improve heart health This study also examined the top health concerns of consumers; findings indicated that 53% of consumers indicated that Heart/Circulatory Health issues were their top health concern in 2006 When making purchasing decisions, 65% of consumers indicated that the healthfulness of the product was significantly important, 88% said taste, 72% price, and 55% said convenience.3 Kellogg’s is a company, who consistently strives to provide consumers with nutritionally beneficial and convenient products for their increasingly “on-the-go” lifestyles Kellogg’s company’s website states: 2007 Consumer Attitudes toward Functional Foods October 2007 22 March 2008 http://www.ific.org/research/upload/IFICExecSumSINGLE_vF2.pdf “Our founder, W.K Kellogg, had a strong commitment to nutrition, health and quality His vision continues to drive improvement in our products and processes, with the goal of providing great-tasting, nutritious products that meet the most rigorous quality standards.”4 Combining Kellogg’s efforts in continuing to manufacture nutritionally novel products to satisfy the changing and growing demands of customers, are inventors of food technologies The technology of adding plant sterols and stanols (also known as phytosterols) to specified food products, as a natural means of lowering cholesterol would be a great opportunity for Kellogg’s to pursue Kellogg’s currently has a brand of heart smart cereal products, “smart start”, which was created to promote healthy hearts The brand “smart start” has four different types of cereal including: Toasted Oat, Antioxidant, Maple Brown Sugar, and Cinnamon Swirl My proposal would be for Kellogg’s to create a new line of products for the Smart Start brand to incorporate a product line of Smart Start snack bars with phytosterols added to the snack bars These bars would be consistent with Kellogg’s brand user image of heart healthy and would also help to lower individual’s cholesterol A Description of Product/Technology Kellogg’s Our Company 2008 22 March 2008 http://www.kelloggcompany.com/company.aspx?id=32 Plant sterols are found naturally in many fruits, vegetables, nuts, seeds, legumes, vegetable oils and other plant sources Plant stanols are found in the same sources, just in smaller amounts Sterols and stanols are important elements of plant cell membranes and resemble cholesterol in a structural form.5 A term that can be used to include both plant sterols and stanols is phytosterols More than 200 sterols and stanols have been found in plants with beta sistosterol, stigmasterol, and campesterol most abundant in sterols and sistostanol and campestanol most abundant in stanols Approximately 50% of dietary cholesterol is absorbed from the intestinal tract, where phytosterols such as: campesterols/stanols are absorbed at 10-15%, 4-7% for sisterol and less than 1% for sitostanols A typical diet in western populations provides about 150-400 mg/day of phytosterols and phytostanols from the ingestion of vegetable oils, cereals, vegetables, and fruits The majority of this intake is considered to be plant sterols, accounting for about 150-350 mg/day, where plant stanols only account for about 15-50 mg/day Plant sterols were first noticed for their cholesterol lowering effects in the 1950’s, when they were taken from vegetable fats/oils and pine trees and analyzed for their effectiveness Plant sterol and stanols work to lower cholesterol by slowing its intestinal absorption As mentioned above, sterol and stanols structurally resemble cholesterol, thus they interfere with cholesterol loading into the mixed micelles (submicroscopic aggregation of molecules), thus less cholesterol is absorbed by the body “Functional Foods Fact Sheet: Plant Stanols and Sterols.” April 2003 21 October 2007 http://www.ific.org/publications/factsheets/sterolfs.cfm Stipanuk, Martha H Biochemical Physiological and Molecular Aspects of Human Nutrition Saunders Publisher 2nd Edition Pp.24-25 2006 Stipanuk Pp 24-25 2006 In multiple studies performed, reviewing 41 trials and in another study, 50 trials, it was concluded by both studies that on average, intake of 1.5-2.0 g/day of stanol and sterols decreased LDL (bad cholesterol) by 10% Both studies similarly concluded that ingesting more than grams of plant sterols and stanols a day did not add any greater benefits of lowering a greater percentage of cholesterol Another study was conducted involving the effectiveness of plant sterols and stanols added to individuals diets, which were either already on a heart-healthy diet or on a cholesterol lowering medication Patients in this study following the National Cholesterol Education Program (NCEP) diet alone were given 2.3 g/day of stanols to their diets These patients were shown to have decreased levels of total cholesterol by 811% and a 4-14% decrease in LDL cholesterol levels.9 *No unfavorable side effects were encountered with the ingestion of plant stanol or sterols in these studies i Technical Information The technology of adding phytosterols in food and beverage products was discovered in 1986, when 1.5 g/d sitostanol was noted to lower total human cholesterol.10 The discovery of sitostanol being effective at 1.5 g/d led to the development of fat-soluble phytostanol Katan MB et al “Efficacy and safety of plant stanols and sterols in the management of blood cholesterol levels.” August 2003 Nov 2007 Stipanuk p 25 2006 10 Heinemann, T., Leiss, O and von Bergmann, K Effect of low-dose sitostanol on serum cholesterol in patients with hypercholesterima 1986 esters, and later to the creation of the first phytostanol-enriched food product by Benecol 11 The technology of phytosterol-enriched foods is described by the World Intellectual Property Organization as: “A food in which a plant sterol and/or plant stanol whose dissolution in water is difficult is stably dispersed homogeneously while suppressing any deposition or coagulation (ring formation) thereof; and a process for producing the same An emulsifier of to 16 HLB and a plant sterol are added to a food raw material in a weight ratio of 3:8 to 10:1 and heated at 110˚ to 200˚C, thereby obtaining an intended food.”12 This technology has been proven effective, in its implementation in the product line of General Mill’s Nature Valley snack bars, “Healthy Heart” These snack bars come in two different flavors of Honey nut and Oatmeal Raisin, containing the ingredients: Rolled Oats, High Maltose Corn Syrup, barley Flakes, Raisins, Crisp Rice Flour, Sugar, malt extract, salt, mixed Tocopherols (preservative), honey, fructose, sugar, plant sterols, canola oil, maltodextrin soy lecithin, salt, natural flavor, cinnamon, baking soda, sunflower meal, almond flour, peanut flour, mixed tocopherols added to retain freshness.13 An individual snack bar contains g of plant sterols 11 Vanhanen, H.T., Kajander, J Lehtovirta, H And Miettinen, T.A Serum levels absorption efficiency, faucal elimination and synthesis of cholesterol during increasing doses off dietary sitostanol esters in hypercholesterolemia subjects 1994 Clin Sci 87 Pp 61-67 12 Process for Producing Food Containing Plant Sterol April 2006 25 March 2008 http://www.wipo.int/pctdb/en/wo.jsp?wo=2006046686&IA=WO2006046686&DISPLAY=STATUS 13 Nutrition Facts 2005 April 2008 http://www.naturevalley.com/ “Studies have shown that 0.8 grams – the amount found in two Nature Valley® Healthy Heart Granola Bars consumed over a period of as little as four weeks can reduce LDL or ‘bad’ cholesterol by about percent 14 This study proves that consuming a designated amount of snack bars with plant sterols can lower cholesterol in as little as four weeks Since, Kellogg’s Co has the know-how to produce snack bars (Special K snack bars) it will have the capability and knowledge to produce an additional line of snack bar products aimed at lowering cholesterol The reason I suggest to diversify the “Smart Start” product line, is because that brand name is focused on heart healthy product, which is consistent with the plant sterol-enriched snack bar image to be displayed B Intellectual Property: A very important question Kellogg’s Co will be faced with when figuring out how to incorporate this cholesterol lowering snack bar into its product line is how? How will Kellogg’s Co obtain the technology to create this phytosterol-enriched snack bar? Kellogg could produce its new line of cholesterol lowering snack bar by participating in an agreement with a plant sterol manufacturing company 14 General Mills Launches Nature Valley® Healthy Heart Granola Bars with Plant Sterols 24 March 2008 24 March 2008 www.generalmills.com/corporate/media_center/news_release_detail.aspx? catID=20369&itemID=10208 10 Plant sterol-enriched products have been on the market shortly after the FDA approved these products in 2000, but have experience very slow growth Entry barriers, for this industry, are low-medium due to the fact that the companies producing the ingredient must have the know how and capabilities to invent the plant sterol ingredient Also, several companies have already been issued patents for the invention of the plant sterol ingredient Technological uncertainty still might be lingering around companies and or consumers, which could also support the fact that the product lies in the emerging industry In this stage of the industry, companies aim to merge or acquire other firms, pool resource strengths, gain added expertise, pursue new customer groups, and enter new geographic areas (foreign markets) Although, the market for plant sterol-enriched products has a positive outlook, the industry would still be considered emerging because of the slow growth and lack of awareness it has created among consumers.28 III 28 Industry Competitiveness Crafting and Executing Strategy: Concepts and Cases, 16th Edition C 2008 17 A Major Industry Leaders The major industry leaders for producing plant sterols are29: • Arboris LLC • Cognis • Forbes MediTech • Archer Daniels Midland (ADM) • Teriaka • Cargill • Novartis Consumer Health • McNeil Consumer Health These companies are in the business of producing plant sterols and are expanding into the business of using plant sterols in food These companies all large companies, dedicated to research and are all competing in the global marketplace, producing plant sterols and providing ingredients to other companies These large scientific based companies are competing in Research and development methods in designing and implementing its plant sterol patent There are several companies that are now producing plant-sterol enriched products, including: 29 “Plant Sterols-all hyped up and nowhere to go?” March 2008 20 March 2008 http://www.newnutrition.com/newspage/Plantsterols.htm 18 • General Mills • Kraft • Mars • Benecol • Unilever B Direct and Indirect Competition Kellogg’s is a global company- leading the breakfast cereal industry, also having many other products in the snack food industry This report focuses on implementing a snack bar product line with added plant sterols in order to reduce cholesterol Kellogg’s main competitors would be those companies producing cholesterol lowering or heart healthy snack products General Mills has already developed a product line, of “Healthy Heart” granola bars with CoroWise plant sterols, proven to lower cholesterol Direct Competitors are businesses that sell similar products in the same market- Kellogg’s direct competitors are listed below.30 • Coca-Cola Company- Minute Maid Orange Juice • Unilever- Promise active SuperShots • Unilever-Promise Margarine Spread 30 Corowise: Naturally Sourced Cholesterol Reducer 10 April 2008 http://corowise.com/products.html#oroweat 19 • OroWheat- Whole grain & Oat Bread • Vitatops-Muffin Tops • Rice Dream- Rice Dream Heart Wise • Lifetime- Low fat cheese • Giant Eagle- Fat Free Milk • Kroger- Active Lifestyle Milk • GNC- Heart Advance dietary supplement ã Centrum Cardio- Two Centrum Cardiođ a Day ã Mars- Coco Via Circulation Indirect competitors are businesses that sell products that fill the same need as your business Kellogg’s indirect competitors would therefore be companies that are offering products for a healthy heart, but not necessarily aimed at lowering cholesterol • Power Bar- Harvest Whole Grain Snack Bars • Kashi- Heart to Heart Product line of Hot & Cold Cereals, waffles • General Mills- Cheerios • V8- Vegetable Juice These products offer heart healthy benefits but not contain plant phytosterols and are not label health claims to lowering cholesterol and risk of CVD The reason these companies are still competing with Kellogg’s heart healthy snack bars is due to 20 consumers in this category Consumers that are purchasing heart healthy items could also most likely benefit from plant-sterol enriched products and be keen on purchasing plant-sterol enriched products Indirectly, companies with heart healthy products are stealing market share away from companies that offer a cholesterol-lowering product line C Barriers & Obstacles to Market Entry Factors to consider with barriers to growth in the plant sterol industry are the mass amount of companies such as: Arboris (US), striving to have the largest capacity for producing plant sterols in Georgia, and Forbes MediTech growing larger and now entering the European market The market is expanding annually at15%, and companies such as Forchem are counting on organic growth of the market, instead of stealing market share from its competitors 31 Obstacles to market entry include the process of obtaining a patent to produce plant sterols, the high licensing and agreement fees, and consumer awareness about the new food technology In a recent study conducted by the International Food Information Council, it was found that people surveyed has typically lower levels of awareness of plant sterols, probiotics, soy protein, etc Opportunities for Kellogg’s would be to heavily invest in marketing and promotion for their new product line and launch efforts to educate consumers on the benefits of their plant sterol-enriched snack bars 31 New Capacity for Plant sterols at Finnish Plant 21 March 2005 10 April 2008 http://www.nutraingredients.com/news/news-ng.asp?n=58862-new-capacity-for 21 IV Market Potential (US & Global) Recent consumer trends have pointed out that a growing number of consumers are purchasing healthy snack items, as this has becoming the number one choice to satisfy hunger between meals Consumer Research recognizes that 36% of American and Europeans overall consume healthy snacks one or more times per day.32 A study conducted by the International Food Information Council, also discovered that 53% of Americans rate heart disease as their top health concern, and 13% of Americans are concerned with cholesterol levels 85% of consumers indicated that functional foods, providing health benefits beyond the basic nutrition to reduce the risk of disease or other health concerns Also, 70% of consumers surveyed indicated that they have a great amount of control over their health, compared to 44% who believed they had moderate control, and 36% who believed they had no or limited control over their health This study also indicated that 83% of American are interested in learning more on functional foods, and are interested in consuming a variety of foods for health benefits.33 Clearly, there is a market for the functional food product to lower cholesterol Kellogg’s has a great opportunity to diversify its product line with plant sterol-enriched snack bars Consumers are more conscious of health concerns and taking more actions to improve 32 Healthy Snacking: Future Trends & New Insights August 2007 23 March 2008 http://www.reportbuyer.com/food_drink/snacks/healthy_snacking_future_trends_new_insights.html 33 2007 Consumer Attitudes towards Functional Foods/Foods for Health October 2007 March 2008 http://ific.org/research/funcfoodsres07.cfm 22 their health through purchasing functional food items such as cholesterol lowering products This current food technology is something that many companies have already started to pursue Companies such as Unilever have created cholesterol lowering Promise Spread and Activ Super shots Other companies such as Mars Inc are manufacturing products such as Cocoa Via, a heart healthy snack line, which is proven to lower cholesterol and provide healthy circulation 34 The technology of manufacturing foods with plant sterols has proven to be very safe and the FDA has permitted companies to label claims on approved products to advertise their cholesterol lowering effect “The IFR authorizes the use of a health claim relating plant sterol/stanol esters and reduced risk of CHD on labeling of (1) spreads and dressings for salad containing at least 0.65 g plant sterol esters per serving, and of (2) spreads, dressings for salad, snack bars, and dietary supplements in soft gel form containing at least 1.7 g plant stanol esters per serving.”35 The European phytosterol market is currently worth $75 million dollars and is forecasted to grow by 15% annually, in a study done by Frost and Sullivan This growth, they 34 Cocoa Via 2008 10 April 2008 http://www.cocoavia.com/ Stanols/Sterols and Risk of Coronary Heart Disease 14 February 2003 April 2008 http://www.cfsan.fda.gov/~dms/lab-ssa.html 35 23 indicate will be attributed to the new plant sterol enriched product launches Also, a study by Reuters predicts cholesterol-lowering products the most profitable innovation for food producers within the next five years.36 David Henstrom, overseer of operations at Cargill Health & food Technologies, indicates: "Cargill's proprietary marketing research indicates that the majority of consumers in selected European markets think seriously about their health and the nutritional value of what they eat Good-tasting, efficacious functional foods are experiencing a greater acceptance by mainstream consumers than ever before We're committed to promoting heart health by bringing easy-to-formulate forms of CoroWise plant sterols to a broader audience." David also commented on the good market growth of the functional food industry with respect to products enriched with plant sterols “This has continued to grow at more than 10% The market for cholesterol lowering foods also continues to experience great growth and will continue to substantially outpace that of traditional food."37 The market for plant sterol-enriched food is growing as more and more people are becoming aware of how important it is to take action in supporting a healthy lifestyle 36 Multibene to enter US Food Market 28 October 2004 10 April 2008 http://www.nutraingredients.com/news/news-ng.asp?n=58862-new-capacity-for 37 A healthier World 31 January 2007 March 2008 http://www.foodchain-magazine.com/articlepage.php?contentid=422&issueid=18 24 Companies are providing more functional foods that are healthy, convenient and taste good as a result A Target Market The Target Market for cholesterol lowering food products is intended for those who want or need to lower their cholesterol Patients on a cholesterol lowering medicine can also consume plant sterol products, but should consult their health care provider first It is not suggested that plant-sterol enriched foods are appropriate for children, pregnant and breast-feeding women.38 Cognis, currently the global leader in producer of plant sterols, claims that the target market for sterol-enriched products are likely to be oil based and low-fat products Products that are oil based, such as salad dressing, margarines and butter spreads, and a variety of low fat products: yogurt, milk, bread would be a good match to add plant sterols into that product B Customers' Needs and Price Expectations Consumers are in need of convenient, functional food products that are proven to lower cholesterol Products enriched with plant sterols are priced higher than similar products that not contain plant sterols, but are for a reason In manufacturing plant sterol products, 2500 parts of raw materials are needed to remove one part of a sterol Cargill’s 38 Do We Need to Be Buying Plant Sterols? Food Magazine 67 Oct/ Dec 2004 p 16 25 CoroWise plant sterols are added to food and beverages without increasing the calories, or affecting flavor or texture, which makes it easier for consumers to ass plant sterols into their daily lives and help them lower cholesterol at the same time.39 Also, compared to drug treatment, the spreads and food products containing plant sterols are a more costeffective way to lower blood cholesterol concentration A strict diet and consuming plant sterol enriched products may allow individuals to lower cholesterol levels to target levels, if they have moderately high cholesterol In people with extremely high cholesterol levels, the LDL cholesterol lowering power of the statin drug proves to be greater; however the combination of the statin drug and the plant sterol enriched food could provide a greater benefit.40 C Benefits to consumers Consumer studies have pointed out what is most important when choosing which snack food they buy Taste is by far the most important factor in governing snack choice for consumers Brand was least important thereby suggesting that big name manufacturers and retailers cannot rely on brand strength alone to generate healthy snack sales 30 In a consumer survey taken by the US Food and Drug Administration in November of 2005, 93% of consumers agreed that by eating a healthy diet, it would greatly reduce the chances of getting heart disease (72% strongly agreed to this statement) 41 39 A healthier World 31 January 2007 March 2008 http://www.foodchain-magazine.com/articlepage.php?contentid=422&issueid=18 40 Phytosterols—a new dietary aid for the treatment of hypercholesterolemia August 2003 Vol 93.8 http://search.sabinet.co.za/images/ejour/m_samj/m_samj_v93_n8_a7.pdf 30 41 FDA Health and Diet Survey-2004 Supplement http://www.cfsan.fda.gov/~comm/crnutri3.html#fat November 2005 10 April 2007 26 The trend of healthy items are shaping many company’s new product developments and marketing Data monitor surveyed European and Americans to find that health concerns are increasing and income is no longer a direct indicator of consumption behavior For example, 28% of US consumers traded up to higher priced items at the grocery store in categories they enjoy of find important Also, stresses, work life and time constraints have had a large impact on the ways in which consumers obtain and consumer meals The need for convenient health is gaining momentum: nearly in 10 (59%) of European and US consumers overall sought more convenient and healthy food and drinks in 2006 compared to the 12 months previously In the past, it was difficult to consume healthy convenient foods because they were often not available, however now that consumers have convenient and healthy products at their disposal, they are taking advantage of this development.42 IV Costs A Costs of manufacturing the product Costs associated with manufacturing a product containing plant sterols would include: research and development, production, (plant and equipment), labor, materials, marketing and promotion, legal processing costs, and purchasing the plant sterols Most of this information is confidential, and private to the individual company However, I did obtain information regarding the costs of the plant sterol ingredient from the 42 Food & Drink Weekly August 2007 10 April 2008 27 supplier (Cargill) Cargill prices its plant sterol ingredients at $20-40 a kg In order for the food product to be labeled with health claims to lower cholesterol (FDA), the individual product must contain at least 0.65 g of plant sterols Therefore, 1000g (1kg)/0.65g= 1538.46 bars could be manufactured by purchasing a kg (1,000g) of plant sterols for $20-40 a kg Since, Kellogg’s will most likely package these bars together, purchasing $20-40 of plant sterols would allow Kellogg’s to make roughly 308 boxes of plant sterol-enriched snack bars, assuming bars came in one package.43 Due to the lack of available information, no other costs could be calculated VI Conclusion A Recommendations Kellogg’s would greatly benefit from adding a product line of plant-sterol enriched snack bars Kellogg’s is a company with a great reputation, contingent on evolving its products with the changing demands of consumers After researching the food technology of plant sterol-enriched products and the large number of Americans who have high cholesterol and are at risk for heart disease, it is extremely important for companies to produce products for these individuals Since the technology has been proven effective, and the 43 Interview with Cargill Employee Colleen Ness April 2008 28 FDA supports labeling health claims about the effectiveness of plant sterols lowering cholesterol, companies are able to promote its products in this light It is not only a great opportunity for companies to increase profits and strengthen their bottom line of promoting healthier products, but it is also a way for companies to let consumers know they care about the health of consumers, disease prevention and healthy lifestyles Incorporating a line of snack bars to lower cholesterol and improve heart health would be a great opportunity for Kellogg’s VII Works Cited 2007 Consumer Attitudes toward Functional Foods October 2007 March 2008 http://www.ific.org/research/upload/IFICExecSumSINGLE_vF2.pdf A Healthier World 31 January 2007 March 2008 http://www.foodchain-magazine.com/article-page.php? contentid=422&issueid=18 Cargill Website.2008.3 April 2008 http://www.cargill.com/ Clarkson, Kenneth W West’s Business Law Text and Cases Tenth Edition 2006 Pp.161-162 Cocoa Via 2008 10 April 2008 http://www.cocoavia.com/ Competition Proliferates 2001 March 2008 www.new-nutrition.com/newspagre/plantsterols/htm Corowise: Naturally Sourced Cholesterol Reducer 10 April 2008 http://corowise.com/products.html#oroweat 29 Crafting and Executing Strategy: Concepts and Cases, 16th Edition C 2008 Do We Need to Be Buying Plant Sterols? Food Magazine 67 Oct/ Dec 2004 p 16 10 Enhancing service and quality: Cognis expands sterol ester plant in Illertissen, Germany 14 November 2007 April 2008 http://www.cognis.com/company/Press+and+Media/Press+Releases/2007/Press+Room_Company+No vember+14_2007+(en).htm 11 FDA Authorizes New Coronary Heart Disease Health Claim for Plant Sterol and Plant Stanol Esters September 2000 March 2008 http://www.fda.gov/bbs/topics/answers/ans01033.html F 12 FDA Health and Diet Survey-2004 Supplement http://www.cfsan.fda.gov/~comm/crnutri3.html#fat November 2005 10 April 2007 13 Food & Drink Weekly August 2007 10 April 2008 14 Functional Foods Fact Sheet: Plant Stanols and Sterols April 2003 21 October 2007 http://www.ific.org/publications/factsheets/sterolfs.cfm 15 General Mills 2007 Annual Report April 2008 http://media.corporateir.net/media_files/irol/74/74271/GIS_AR07.pdf 16 General Mills Launches Nature Valley® Healthy Heart Granola Bars with Plant Sterols 24 March 2008 24 March 2008 www.generalmills.com/corporate/media_center/news_release_detail.aspx? catID=20369&itemID=10208 17 Healthy Snacking: Future Trends & New Insights August 2007 23 March 2008 18 Heinemann, T., Leiss, O and von Bergmann, K Effect of low-dose sitostanol on serum cholesterol in patients with hypercholesterima 1986 19 Interview with Cargill Employee Colleen Ness April 2008 20 Katan MB et al “Efficacy and safety of plant stanols and sterols in the management of blood cholesterol levels.” August 2003 Nov 2007 21 Kellogg’s Co Website 2008 20 March 2008 http://www2.kelloggs.com/General.aspx?ID=466 22 Kellogg’s Annual Report 2008 20 March 2008 http://www.shareholder.com/visitors/dynamicdoc/document.cfm? CompanyID=K&DocumentID=2112&PIN=&Page=7&Zoom=1x 23 Kellogg’s Our Company 2008 22 March 2008 http://www.kelloggcompany.com/company.aspx?id=32 24 Multibene to enter US Food Market 28 October 2004 10 April 2008 http://www.nutraingredients.com/news/news-ng.asp?n=58862-new-capacity-for 30 25 National Institute of Health June 2005 April 2008 www.nhlbi.nih.gov/health/public/chol/wyntk.htm 26 New Capacity for Plant sterols at Finnish Plant 21 March 2005 10 April 2008 http://www.nutraingredients.com/news/news-ng.asp?n=58862-new-capacity-for 27 Nutrition Facts 2005 April 2008 http://www.naturevalley.com/ 28 Phytosterols—a new dietary aid for the treatment of hypercholesterolemia August 2003 Vol 93.8 http://search.sabinet.co.za/images/ejour/m_samj/m_samj_v93_n8_a7.pdf 29 Plant Sterols-all hyped up and nowhere to go?” March 2008 20 March 2008 http://www.newnutrition.com/newspage/Plantsterols.htm 30 Process for Producing Food Containing Plant Sterol April 2006 25 March 2008 http://www.wipo.int/pctdb/en/wo.jsp?wo=2006046686&IA=WO2006046686&DISPLAY=STATUS 31 Stanols/Sterols and Risk of Coronary Heart Disease 14 February 2003 April 2008 http://www.cfsan.fda.gov/~dms/lab-ssa.html 32 Stipanuk, Martha H Biochemical Physiological and Molecular Aspects of Human Nutrition Saunders Publisher 2nd Edition Pp.24-25 2006 33 Thomsen AB, Hansen HB, Christiansen C, et al Effect of free plant sterols in low-fat milk on serum lipid profile in hypercholesterolemia subjects Eur J Clinical Nutrition.2004;58:860–70 34 US sterol foods market growing – but slowly September 2006 April 2008 http://www.functionalingredientsmag.com/fimag/articleDisplay.asp? strArticleId=1089&strSite=FFNSite 35 Vanhanen, H.T., Kajander, J Lehtovirta, H And Miettinen, T.A Serum levels absorption efficiency, faucal elimination and synthesis of cholesterol during increasing doses off dietary sitostanol esters in hypercholesterolemia subjects 1994 Clinical Science 87 Pp 61-67 31 ... intake is considered to be plant sterols, accounting for about 150-350 mg/day, where plant stanols only account for about 15-50 mg/day Plant sterols were first noticed for their cholesterol lowering... promotion for their new product line and launch efforts to educate consumers on the benefits of their plant sterol-enriched snack bars 31 New Capacity for Plant sterols at Finnish Plant 21 March... its plant sterol ingredients to companies for the production of plant sterol-enriched products B Future direction of industry & Potential Risks There is a positive outlook for the industry of plant