we are buying health

October 13, 2011

in wellness

yesterday i published the findings of the edelman health barometer 2011 and specifically called out how we are buying health. we are buying health as consumers. we are buying health as potential talent. we are buying health as investors.

today a new report from the hudson institute lends further credibility to this finding:

“Food and beverage companies with a higher percentage of their sales coming from better-for-you foods and beverages perform better financially, according to a new report produced by the Hudson Institute with funding from the Robert Wood Johnson Foundation.

“The report analyzed the sales of 15 major food and beverage companies and found that sales of better-for-you (BFY) products drove more than 70 percent of sales growth from 2007 to 2011. BFY products were defined as no-, low- and reduced-calorie items, such as flavored waters or diet sodas, as well as products that generally are perceived to be healthier, such as yogurts and whole-grain cereals.

“Researchers also found that, compared with companies with lower-than-average sales of BFY items, those that sold a higher percentage of such items:

  • showed a 50 percent growth in operating profit, as compared with just over 20 percent growth for the other companies;
  • outperformed the S&P 500 Index by 60 points on average, compared with roughly 40 points for the other companies;
  • delivered returns to their shareholders that were 15 percentage points higher than those generated by companies with lower sales of BFY items; and
  • recorded reputation ratings that were more than 30 percent higher than those of companies with lower sales of BFY items.”
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Tish Van Dyke October 13, 2011 at 6:44 pm

This is a great piece that underscores what the 2011 Edelman Health Barometer has found — that there’s a definite ROI for food companies engaging in health.

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fran October 14, 2011 at 1:30 pm

tish, thanks for reading. it’s really interesting that both these reports find that doing good (OK, doing better…not all “better for you” foods are all that swell) means doing well.

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