One of the more compelling presentations at the recent FMI Connect conference in Chicago was made by Hank Cardello, a senior fellow at the Hudson Institute and head of its obesity solutions program.

One of the more compelling presentations at the recent FMI Connect conference in Chicago was made by Hank Cardello, a senior fellow at the Hudson Institute and head of its obesity solutions program.

He laid out the case that the ongoing paradigm shift toward "better for you" consumables is not only beneficial for consumers but good for food retailers.

Based an analysis of Nielsen point-of-sale data from the three largest supermarket operators in the country, Cardello and his team concluded that lower-calorie products were responsible for 59% of sales growth in the trade class between 2009 and 2013, 17 percentage points higher than traditional food and beverages. The findings are in line with previous studies conducted by the Hudson Institute on the restaurant and CPG sectors, although lower-calorie alternatives performed even better in those ­industries.

"Customers are looking for lower-calorie choices wherever they are," noted Cardello, a former executive at food and beverage suppliers Coca-Cola, General Mills, Anheuser-Busch and Cadbury-Schweppes. "The good news is that supermarkets’ growth is being driven by these products, but compared to other sectors they’re still leaving money on the table."

He said most consumers see the link between nutrition and well-being, with 88% of respondents in a National Marketing Institute survey noting a definite connection between diet and health, and 76% expressing a desire for nutritional labeling that clearly states a product’s health benefits.

Despite those positive developments, the Hudson Institute report uncovered some gaps. Access to healthy products is limited in so-called food deserts, even though sales from lower-calorie items have been growing faster than their higher-calorie counterparts in those areas. Another troubling finding is that when it comes to food and beverages that account for the majority of calories in the diet of children and adolescents, higher-calorie products had a growth rate more than twice that of healthier ­alternatives.

The research should be an eye-opener for food retailers. It confirms the increasing preference among consumers for products that promote health and wellness, and provides retailers with reasons to rethink their merchandise mix and promotional strategy. The researchers recommended repositioning store brand programs to meet the surging demand for lower-calorie products, especially those targeted to young people.