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NewsBites January 2012 Issue

“Better for You” Foods Also Better for Profits

Healthier foods are also good for the bottom line, according to a new report from the Hudson Institute. The report looked at products and earnings at 15 major food companies, including Kraft, Heinz, General Mills and Coca-Cola. “Better for you” foods included whole-grain products, yogurts and low- or reduced-calorie options. From 2007 to 2011, such healthier products accounted for about 40% of the companies’ sales but a disproportionate 70% of sales growth. Manufacturers with a higher share of “better for you” products also tended to show higher profits and shareholder returns. “For the first time we now have concrete evidence demonstrating that it’s just good business to sell better-for-you products,” said Hank Cardello, lead author of the report. “Companies’ bottom lines can benefit from selling these sorts of products.”

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