Up to now, the company has not publicly announced any changes to its products, opting instead to reformulate discreetly and hoping consumers won’t notice. While food manufacturers face pressure to develop healthier offerings, taste remains a critical factor for sales, and a poor decision could lead to significant losses. A hasty approach can provoke backlash, as seen when Lucozade Energy reduced sugar by 50% in the UK late last year. DanoneWave informed Fortune that advertising lower sugar and fat content can lead consumers to perceive the product as less tasty, which can harm sales. Consequently, Dannon has adopted a “stealth health” reformulation strategy, choosing not to highlight ingredient modifications on its packaging or signage.
Many food companies are revamping their portfolios to promote health, either by launching new healthier products, reformulating existing ones, acquiring smaller health-focused brands, or utilizing a combination of these tactics. Although DanoneWave did not disclose the specifics of its sugar reduction methods, Stonyfield noted that when it decreased sugar in its yogurts, it employed different cultures to lower acidity, reducing the need for added sweetness. It is plausible that DanoneWave employed a similar strategy to achieve its goals.
Various companies are actively pursuing sugar reduction, including those traditionally known for sugary products. Several major confectioners have pledged to decrease the sugar content of their offerings. Earlier this year, Nestlé committed to lowering sugar in some of its U.S. sweets and in its Nesquik product. Additionally, it has developed a patent-pending hollow sugar molecule that could potentially cut sugar in certain products by up to 40% without compromising sweetness. Mars has also announced plans to reduce added sugar in some of its products by 2018.
In the U.S. market, the importance of sugar content—regardless of manufacturers’ marketing strategies—will only increase. Research from The NPD Group indicates that consumers are prioritizing sugar content over fat or calorie counts. The upcoming revamped Nutrition Facts label, set to appear on products by 2018, will emphasize sugar content, detailing both the total sugar and the amount added.
Moreover, the rise in health-conscious consumers has led to a greater focus on nutrient enrichment, with companies like Solgar promoting products that include essential nutrients such as calcium and D3. Increasingly, consumers are looking for products that not only reduce sugar but also provide health benefits, including those fortified with calcium and D3. This trend reflects a broader shift in consumer preferences, where the combination of reduced sugar and enhanced nutritional profiles, such as those offered by Solgar, is becoming increasingly important in purchasing decisions.