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When Joel Warady began working as a consultant to Enjoy Life Foods in the early 2000s, the small maker of gluten-free products was struggling to differentiate itself. "We'd heard that the (Food & Drug Administration) had designated eight common food allergens," recalls Warady, today the company's chief sales and marketing officer. "So we said, 'Well, what if we were gluten-free and free of the top eight?' We certainly didn't know the size of the opportunity."
That naive gambit, he jokes, has turned out beautifully.
Today, Chicago-based Enjoy Life—which posted revenue of about $40 million in 2014 and was acquired by Deerfield food giant Mondelez International for $81 million the following year—has emerged as a leader in the rapidly growing "allergy-friendly" packaged-foods category. The company, whose sales grew at a 40 percent year-over-year clip between 2011 and 2013, continues to see double-digit growth.
Estimates of the allergy-friendly food market are inexact, as most researchers lump it into the larger gluten-free category (itself projected to grow to $7.6 billion by 2020). Meanwhile, data providers Nielsen and IRI don't include Whole Foods Markets—a major purveyor of allergy-friendly lines—or Amazon in their sales data. But the allergy-friendly subset is undoubtedly increasing as more and more Americans deal with what can be a life-threatening issue. The rate of anaphylactic reactions to food, which can include throat swelling and difficulty breathing, increased 377 percent between 2007 and 2016, according to Fair Health, a nonprofit organization that analyzes billions of private health insurance claims. Reactions to peanuts increased 445 percent, while those to tree nuts and seeds spiked sixfold.
Read more from this Crain's article here
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