Chew on This
Cater to customers with food allergies, and you'll be sure to get a good reaction.
For the 11 million-plus Americans who suffer from food
allergies, finding great-tasting food products that meet their
needs is a challenge. Still, as the demand for allergen-free foods
rises among consumers, so does the opportunity for health-minded
entrepreneurs. In fact, sales of food allergy and intolerance
products jumped 17 percent in 2004 and are projected to reach $3.9
billion by 2008, according to Packaged Facts, a division of
MarketResearch.com, which publishes reports on a range
of consumer industries. Though children are more likely to have
food allergies, entire families often adopt the allergen-free diet,
in turn growing the market, says David Lummis, a project manager
for MarketResearch.com. The founders of Enjoy Life Natural Brands, Bert Cohen, 33, and Scott
Mandell, 34, have watched the market grow since they launched their
food manufacturing and marketing company in 2002. Selling only
foods free of the most common allergens (eggs, fish, milk, peanuts,
shellfish, soy, tree nuts and wheat are responsible for 90 percent
of all allergic reactions in the United States), these Chicago
entrepreneurs say their most popular products are granola cereals
and cookies. But their bagels and snack bars do well in their
online store and the specialty and health-food markets they
distribute to, which are located throughout most of the country as
well as Canada. Getting distribution for their specialty products
is a challenge, says Cohen, but they're steadily growing with
annual sales in the low seven figures. And because their customers' lives are on the line--food
allergies account for about 30,000 emergency room visits as well as
150 to 200 deaths each year, according to the Food Allergy &
Anaphylaxis Network (FAAN)--Cohen and Mandell are meticulous about
testing and monitoring cross-contamination in their facilities.
"From a business perspective, there are three critical
things," says Terry Furlong, COO of FAAN, based in Fairfax,
Virgina. "An absolute knowledge of ingredients used,
prevention of cross-contact in manufacturing and, perhaps most
importantly, accurate labeling." The tiniest nut particle, for
example, can cause severe allergic reactions, he says, so adhering
to the strictest health, safety and contamination guidelines is
vital. In fact, since the 2004 passing of the Food Allergen
Labeling and Consumer Protection Act, all food manufacturers are
required to indicate on the label the presence of any of the eight
most common allergens. Content Continues Below
Though it takes more diligence and probably more startup capital
to launch an allergen-free food business compared with a regular
food business, say experts, the rewards are tremendous. Just ask
Kelly Koeller, whose Buffalo Grove, Illinois, store, the
Gluten-Free Market, sells more than 670 gluten-free products to
people who have celiac disease (a disorder where the body can't
digest gluten, a protein found in grains such as wheat). Founded in 2002 after his young son was diagnosed with celiac
disease, Koeller's brick-and-mortar store attracts consumers
from all over the nation. Though he also sells online, Koeller, 46,
notes that most of his company's $400,000 in annual revenue
comes from the store. "People walk in and have a story to
tell," says Koeller. "People say, 'I don't have
to read labels for the first time in my life.'" For those
with food allergies, it's music to their ears. Itching to Get Started?Check out these online resources for more information about
allergen-free products and businesses: - Celiac.com:
A gluten-free resource page and directory
Also check out these gluten-free businesses: The Gluten-Free
Pantry, The Gluten-Free Mall and Glutino.
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