Reverse Engineering Project

Nutrition/Energy Bar Analysis

Rossy Bueno, Zhi Ming Chua, Kristen Hendricks, Keun-il Kim, Rachel Massey

Purdue University

ABE 201

Nathan S. Mosier

Label Deconstruction Product name: MetraGenix 1:1 protein bar almond coconut flavor Component functionality A component functionality table has been created containing columns with the following headings: ingredient, purpose, texture, color, taste, structure, macronutrients, and micronutrients. The table provides specific information in terms of each ingredient listed on the nutrition label of the MetraGenix 1:1 protein bar almond coconut flavor. *Table 1 provided below on its own page

Physical dimensions The physical dimensions of the MetraGenix 1:1 protein bar almond coconut flavor have been recorded in Table 2. Table 2

Length 11.5 cm

Width 2.7 cm

Height 2.0 cm

Mass 54.0 grams

Volume 62.1 cm3

Color/appearance tan bar with white fleck of coconut; brown chocolate coating drizzled on top; brown chocolate base on bottom of bar; grainy texture (appearance)

Nutrition Description

Description of nutrition This product advertised a gluten free bar with 20 grams of protein and 10% of your recommended daily value of iron for only 210 Calories. A blend of whey protein isolate and soy isolate provided the majority of the protein. Additionally, several kinds of oils, emulsifiers, sugars, starches, and flavoring were included to improve overall flavor and texture. After a thorough nutritional analysis of the MetraGenix 1:1 protein bar almond coconut flavor, we believe certain modifications can be made to improve the quality of this protein bar. The protein blend is the main area of focus in terms of the bar’s nutrition. However, the three different kinds of sugar and various oils (some of which are not environmentally-friendly) could be modified or reduced to decrease saturated fat and Calories.

This bar is intended as a snack between meals, to provide energy, protein, and sugar. Because of its focus on protein for bodybuilding, the bar contains a significant amount of protein and carbohydrates. There is not much focus on vitamins or minerals, and the dietary fiber is relatively low. While protein is an important part of a healthy diet, this bar is very high in sugar and sodium and doesn’t offer much nutritional benefit in exchange for its saturated fat.

Potential hurdles or challenges to improving nutrition There might be some issues with respect to finding an alternative to palm oil that would

remain semi-solid at room temperature. Another aspect that can become a potential challenge is finding a lower-calorie sweetener syrup that wouldn’t significantly affect the taste of the bar. Many of the minor ingredients in the bar have macronutrients and micronutrients that could be lost if we were to exclude those ingredients from the bar. We have to take special attention to the improvements we want to incorporate in the bar in order to avoid significantly changing the bar’s flavor. If the flavor was significantly altered, consumers of this bar could react by buying different bars. We clearly do not want this to occur, so we must take this into consideration. The main purpose is to improve the bar in terms of nutritional content and at the same time attract more consumers to buy it.

Tech Wizard Nutrition Label Attempted bar nutrition label using Tech Wizard

Improved bar nutrition label using Tech Wizard

Explanation of changes to improve the nutrition of the bar Our major nutritional changes to the improved candy bar include decreased sodium, decreased Calories from fat, and decreased total fat. We have been working in terms of improving the MetraGenix 1:1 protein almond coconut flavor by focusing on these three factors. After a specific analysis of the impact each ingredient has on the overall nutrition and flavor of the bar, we determined that these categories could provide opportunity for potential improvements. More information regarding these changes is provided in the description of differences between the original label and the revised/improved one.

Description of differences between our label and the label on the revised product We decided to replace types of corn syrup with sorghum syrup and molasses for a

healthier alternative with more vitamins, nutrients, and complex sugars. In addition, we increased the gelatin content significantly (from 5g to 36g), which reduced the sodium content from the Soy Protein Isolate. This however, might make the bar more pliable and cause variation in taste. Finally, we decided to replace palm oil with sunflower oil for its nutritional benefits, such as the infusion of more vitamins and minerals, and the environmental concern for the tropical rainforests where palm oil is harvested. These changes should improve the overall nutrition of the bar by increasing the vitamins and minerals while decreasing the empty Calories, sodium, and saturated fat. The sorghum syrup and sunflower oil might be less widely available than the original ingredients, which could slightly increase the price of the bar.

Product Improvements and Revisions

Current bar nutrition label

*Nutritional information and nutrition label obtained from http://www.bodybuilding.com/store/metragenix/1-to-1-protein-bars.html

1 Bar Almond Coconut Serving Size(54G) Servings Per Container1

Amount Per Serving

Calories 210

Calories From Fat 50

% Daily Value*

Total Fat 5g 8%

Saturated Fat 2g 10%

Trans Fat 0g

Cholesterol 0mg 0%

Sodium 190mg 8%

Potassium 190mg 5%

Total Carbohydrate 21g 7%

Dietary Fiber 1g 4%

Sugars 13g

Sugar Alcohols

Glycerol 2g

Protein 20g

Vitamin A 0%

Vitamin C 0%

Calcium 10%

Iron 10%

* Percent Daily Values are based on a 2,000 calorie diet. Your daily values may be higher or lower depending on your calorie needs.

Ingredients:

Protein Blend (Isolated Soy Protein, Whey Protein Isolate, Whey Powder), Brown Rice Syrup, Corn Syrup, Sugar, Hydrolyzed Gelatin, Almond Butter, Glycerol (Vegetable Based), Fractionated Palm Kernel Oil, Roasted Almonds, Dehydrated Coconut, Tapioca Starch, Water, Natural Flavors, Canola Oil, Cocoa Powder, Soy Lecithin, Milk Powder, Salt, Mixed Tocopherols, Palm Oil, Calcium Carbonate.

Allergen Information: Contains Milk, Almonds And Soybeans. This Product Is Manufactured In A Facility That Uses Peanuts, Tree Nuts, Seeds And Eggs.

Bar Usage The bar is primarily used as an energy snack. The main group of target consumers is

active people that undergo a routine of physical activity and exercise. They can be described as high-performance athletes. As a result of this, the nutrition panel must be elaborated with the purpose of fulfilling the needs of these consumers. In terms of the MetraGenix 1:1 protein bar almond coconut flavor, the principal health claim made is the protein content, which is equivalent to 20 grams. This can be considered as the underlying nutritional factor that appeals to the consumers. Areas of concern

One of the important considerations when producing an edible energy bar is how it tastes. The original bar is high in sugar and has a chocolate coating to improve the taste. There are also coconut flakes and almonds to provide flavor and some nutritional content. When tasting the bar, the sense of coconut and chocolate were very apparent, but it was hard to detect the almond. It was slightly too sweet, with the kind of sugar flavor that left a bad taste in the back of one’s mouth. The glycerol was probably responsible for the lasting sweetness, which was similar to drinking a diet pop. The bar also had a distinct grainy quality that stayed in the mouth long after consumption. Perhaps the increase in gelatin content would improve this by making the bar more pliable. Also, changing the different types of sugars might improve the sweet taste.

Difficult to obtain ingredients There is an environmental concern in that this bar uses palm oil, which has recently

been contributing to the destruction of rainforests. The demand for palm oil and palm kernel oil drives the price up as well. Most of the other ingredients are relatively easy to obtain, including dry tapioca pearls, which are easy to find because of the popularity of Boba Tea. In terms of the substitutions of ingredients for the improved bar, sorghum syrup and sunflower oil might be less widely available than the original ingredients. Nevertheless, these two ingredients can still be obtained they’re just not as popular.

Product/Process Improvements We ran into a few problems when we were recreating the nutrition label for our bar.

Some of the ingredients listed were not in the USDA database. Therefore, we made a few minor substitutions, but tried to keep our bar’s ingredients as similar as possible. We assumed that Isolated Soy Protein was the same thing as Soy Protein Isolate, but our next ingredients, Whey Protein Isolate and Whey Powder, were nowhere to be found. We used “Whey, Acid, Dried” in place of these two. Brown Rice Syrup was also not present, nor was it in the USDA online database, so we substituted dark corn syrup (“Syrups, corn, dark”). We knew that the purpose of Brown Rice Syrup was to act as a sweetener, and Corn Syrup is a widely available sugar. Also, although Brown Rice Syrup has more complex sugars than corn syrup and doesn’t cause a spike in blood sugar, it can still be substituted for corn syrup ("Corn Syrup Substitutions," 2011). Then Corn Syrup became “Syrups, corn, light”. Hydrolyzed gelatin wasn’t in the list, so we used “Gelatins, dry powder, unsweetened,” hoping it was essentially the same thing. Glycerol became “Sweeteners, tabletop, sucralose, SPLENDA,” because we learned that

it is a large component of artificial sweeteners. Fractionated Palm Kernel Oil just had to be Palm Kernel Oil. We used dry tapioca pearls instead of Tapioca Starch because it was the only thing with tapioca that didn’t include baby food or pudding. Next, we omitted the Natural Flavors and used a Muscle Milk protein supplement in place of Mixed Tocopherols. Hopefully, these substitutions still kept the bar reasonably similar. However, the Soy Protein Isolate and Whey Acid have a much higher sodium content than the originals because we couldn’t bring our sodium content down below about 250mg. We also had a bit of trouble calibrating the protein because it seems that Whey Acid, while substituting for a part of the protein blend, was actually bringing the content down.

Description of PROS with regards to making substitutions The advantages in terms of making substitutions include: having a general idea of each ingredient’s purpose made it easier to find a potential substitution for a particular ingredient; finding ingredients in the USDA online database specifically helped us to an extent when we could not find the original ingredient on the program TechWizard; and understanding the effect of substituting an ingredient for another in the nutrition of the bar allowed us to make good choices and assumptions in terms of including that ingredient in the bar. Description of CONS with regards to making substitutions At first, we thought it was going to be problematic the fact that we couldn’t find some of the bar’s original ingredients on the ingredient list provided by TechWizard. This was basically the first disadvantage we encountered. Later on, we were informed that some ingredients not found on TechWizard could be searched for on the USDA online database. We tried to find the missing ingredients, but still struggled in terms of specific ingredients that were not found. This basically required us to focus on the specific missing ingredients and come up with potential ingredients that could serves as substitutions. Furthermore, a special consideration had to be made for these ingredients to work and be included in the nutritional content of the bar: the substitute ingredients must not significantly alter the flavor of the bar. Another disadvantage was the principle that some ingredients resulted on counter effects to the addition of other ingredients. When this occurred, we had to continue to modify the amount of that ingredient and see how it affected the overall protein content, for example.

Marketing Research/ Analysis

Target Consumer The sports and fitness nutrition industry first emerged in the late 1980’s primarily

targeting serious athletes. The products, including nutrition and energy bars, were designed to meet the energy and nutrition need of athletes without focusing primarily on the taste and texture. Thus, the nutrition and energy bar never really made it into the mainstream market.

As the nutrition and energy bar industry tried to make a move into the mainstream the market, it started adding better taste and texture while targeting specific audiences, thus it branched into the 3 markets for diet bars, athletic/sports bars, and health/wellness bars. Studies show that diet bars took the lead earlier on but then faced slow growth after people started discovering newer diet methods that do not involve low-calorie intake, which the diet bars offer. Recent years have shown that the athletic/sports bar industry has slowly been picking up pace with more people showing interest in sports activities such as triathlons which can be seen in the 557% membership growth of the USA Triathlon national governing body. The health and wellness bar has been a driving force of the nutrition and energy bar industry mostly due to people changing to aim for health instead of weight loss, which is a movement spearheaded by First Lady Michelle Obama. Overall, the nutrition and energy bar did not take a huge hit from the 2008 recession because of “recession fatigue” where people are tired of endless sacrifices and are willing to indulge in small expenses such as a nutrition and energy bar. People have also been replacing meals with nutrition and energy bars because these bars are compact and easy to eat. Nutrition and energy bars also provide consumers a way to track the amount of calories and nutrition being consumed because of the nutrition content label on the back which has proven beneficial to the industry due to the increase in health awareness recently.

The main consumers of nutrition and energy bars are athletes, body builders and young adults in their 20s – 30s. Clearly, this is because people are focused in staying healthy and trying to look good at the same time while having a tight schedule. The majority of these individuals are busy training, working out or just coming out into the work industry to find time to eat, what most people would consider, a normal meal. However, with the relatively high growth in sales of the health/wellness bars compared to the athletic/sports bars, the industry is trying to target a larger audience market especially in the older customers where health is an increasing concern. Studies also show that there is a trend that the male customers are interested in stamina while females are more interested in weight loss. So, the market might even be branching off in that sense. The diet bar may have a huge comeback especially since reports have shown that the percentage of people who are trying to lose weight have stayed consistent at approximately 30%, the population has been growing by 5% each year, which indicates that the market pool is constantly growing.

The category of energy and nutrition bars allows its products to reach a wide range of consumers. The bars corresponding to this market have been designed to meet the need of different consumers. In general terms, target consumers for nutrition and energy bars are dieters, mainly women, Asians, and wealthy people. Society depicts a view for women to have a thin figure. Culturally speaking, Asians are known for conserving a slender body and thus

become potential consumers of energy and nutrition bars. Nevertheless, consumers can be subdivided into the following groups: high-performance athletes, health-conscience individuals, active women, active children, and on-the-go individuals (Booth, March 2010). High-performance athletes Endurance athletes who basically have a strict regime of physical activity performed on a daily basis. This group includes runners, cyclist, triathletes, weight-lifters, among others. High-performance athletes prefer energy bars because they want something that can be easily digested and will help increase their overall performance. Health-conscience individuals This group consists of people that have chosen to incorporate a healthy lifestyle. Their purpose is to eat right and work out regularly to stay in shape and at the same time benefit their health. They are looking for organic and all-natural foods. Both nutrition and energy bars are chosen by health-conscience individuals depending on their specific needs. Active women The energy bar industry has focused on excelling their market by targeting women. This is because women have specific nutritional needs that differ from those for men. For instance, women need calcium, folic acid, antioxidants, and iron in their daily diets. In order to meet these specific needs, companies in this industry have created several products exclusively for women. Active children Companies have decided to create products with children in mind as potential consumers. This idea aims to work towards reducing childhood obesity. The intention is to emphasize the importance of exercise and healthy eating habits among children. The bars within this category have “kid-approved flavors” to increase the interest of kids to consume them. On-the-go individuals This is a more general category of consumers that has been designed for people that have a series of responsibilities and usually spend a lot of time at the workplace. As a result they end up eating on-the- go meals and snacks. Nutrition and energy bars become very handy because they’re just waiting to be consumed.

The MetraGenix 1:1 protein bar falls into the distinction of an athletic/sports bar targeting high-performance athletes. To increase the number of consumers for this bar, we decided to make some changes in terms of the bar’s overall nutrition. While increasing the protein content and decreasing the amount of sodium, we managed to improve the nutrition of it substantially in the hope of being able to target the audiences of the athletic/sports bar and the health/wellness bar.

Key Product Characteristics MetraGenix 1:1 Protein Bar, almond coconut flavor According to the information provided on the MetraGenix products website, the MetraGenix 1:1 Protein bar has a price of $2.99 and its supported goal is to build muscle. The main ingredient is protein. The ratio refers to a 1:1 ratio of protein to net carbohydrates. Observations on taste: The bar has a chocolate coating, coconut flakes and almonds that make up for the main components of the overall taste. The sense of coconut and chocolate were very apparent, but it was hard to detect the almond. In general, the bar was slightly too sweet. There didn’t seem to be a good fusion of flavors between the chocolate, coconut flakes, and almonds because the first two ingredients were more prominent than the almonds. Competitors and their prices

Snack, cereal, and energy bars have become the second most innovative category in the overall snack market, followed by potato chips, which hold first place. This is based on the number of new varieties of the specified product that are introduced to the market. Companies are dedicating a lot of time and work on creating new varieties of nutrition bars with the use of all-natural products, even to the extent of avoiding preservatives. The introduction of reduced calorie and gluten-free bars is increasing. Although chocolate is a popular flavor, new flavor combinations, including fruits, are entering the market as well. In order to target kids, companies have also designed special “healthy bars” that will attract parents to buy them for their children to easily eat these snacks in school. Cereal and energy bars are being selected as snacks for athletes and people involved in sports or any other physical activity. Most of the users in this group consume these bars to get an energy boost and improve performance. New varieties of protein bars are also being introduced targeting the aspects of muscle growth, endurance, and weight loss. The main manufacturers of energy and nutrition bars are the following: Note: Prices are provided for one individual nutrition or energy bar. *Prices obtained from Walmart.com and the manufacturer’s websites

Clif Bar & Company o Clif Bar $1.50 o Clif Builder’s Protein Bar $2.00 o Clif Kit’s Organic Fruit & Nut Bar $1.75 o Luna Bar $1.50 o Clif Kid Z Bar $1.00 o Clif Crunch Granola Bar $1.00 o Clif Mojo $1.50

General Mills Inc. o Nature Valley Granola Bar $1.00 o Larabar $1.50 o Fiber One Chewy Bar $1.00

Abbott Labs Inc. o Glucerna Mini Snack Bar $1.00 o Zone Perfect $2.00

o EAS Lean 15 Bar $2.50 o EAS AdvantEDGE Bar $2.25

Atkins Nutritionals Inc. o Meal Advantage Bar $2.00 o Advantage Bar $2.00 o Day Break Bar $2.00 o Endulge Bar $2.00

Nestle S.A. o PowerBar $2.00 o PowerBar Protein Plus $3.00 o Fitness Cereal Bar $

Kellogg Co. o Fiber Plus $1.50 o Nutri Grain Bars $1.00 o Special K Bars $1.00

Quaker o Chewy Granola Bars $1.00 o Chewy Dipps Granola Bars $1.00 o Chewy 25% Less Sugar Granola Bars $2.00 o Chewy 90 Calorie Granola Bars $2.00 o Chewy SmashBar $2.00

Brynwood Partners o Balance Bar Mini Energy Bar $1.50 o Balance Bar $1.50 o Balance Bar Gold $1.50 o Balance Bar Bare $2.00 o Nimble Bar $2.00 o Balance Bar Café $1.50 o Balance Bar Carbwell $1.50

According to Mintel’s Nutrition and Energy Bars report, US - February 2012 report, Clif

Bar & Company is the dominant player in the market. General Mills holds second place while Abbott Labs remains third. These three companies have shown growth and an increase in sales for the years 2010 and 2011. Current and Emerging Trends

As millions of Americans are suffering from obesity and other diet-related diseases, consumers are trying to make healthier diet choices. Since energy/protein bars are perceived by consumers to be a healthy alternative to sugary and fatty snacks, more and more Americans are buying them. Consumers are primarily looking for bars with high protein and low sodium. It is interesting to also note that the global sport nutrition/wellness industry (sports drinks, dietary supplements, exercise equipment) is also booming. The market growth of energy/protein bars is likely tied to this fact, as the two markets share target consumers.

Market Size According to Mintel’s report, Nutrition and Energy Bars, US - February 2012, the

energy/protein bar market is growing rapidly. Between 2006-2011, the size of the nutrition and energy bar market grew by 71%. In 2010 and 2011, the market grew 14.7% and 13.9% respectively. It appears that the market will continue to grow because the popularity of energy/protein bar is tied to Americans’ increasing concern to have a healthy lifestyle and diet.

The target consumer of most health food bars with an emphasis on protein is males between the ages of 18 and 24. This bar appeals to this demographic because it provides protein and sugar for energy and repair after a long workout. There is also a smaller demand among consumers aged 65+ because of the sugar boost energy bars provide. However, the protein content is more important in appealing to consumers of a post-workout energy bar, which is why our bar advertises 20g of protein on the front packaging. As previously mentioned, Clif Bar & Company is the leading firm in the energy bar market, with 23% market share and $227 million dollars in sales in 2011. PowerBar is also a competitor specifically for our bar, especially because it focuses on athletic performance.

Point of Differentiation There isn’t much to set our bar apart in the energy bar market. The chocolate covering

seen through the packaging looks more appealing than some of the plain bars, and there is a high emphasis on protein, of which this bar has 20g. Also, it is advertised as being Gluten Free and 100% Natural. These claims might appeal to a consumer who is trying to decide between two brands, but it wouldn’t bring new consumers in. The improvements we make to the bar would lower the sodium content and calories from fat while increasing the protein, which would probably be more attractive to someone looking for a source of protein. We could also advertise that our ingredients were obtained from environmentally responsible sources because we got rid of the palm oil, which has been in the news a lot lately. Overall, our original bar probably has a pretty small share of the energy bar market, but packing it with more vitamins and decreasing the sugars and sodium might give it more of an edge.

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