Boulder Brands Inc (BDBD), General Mills, Inc. (GIS): The Gluten-Free Craze Is Sweeping America

A trend among big companies is to test products and announce which are gluten-free. For example, Zatarain’s has tested and verified that 20 of its rice mixes are gluten-free. And its parent company, McCormick & Company, Incorporated (NYSE:MKC), has a specific section on its website dedicated to discussing how it lists gluten vs. gluten-free products.

McCormick grew its net sales by 2% in the second quarter with industrial sales down slightly and 4% growth in consumer sales. It recently acquired Wuhan Asia Pacific Condiments in China, and is following a growth pattern into markets worldwide. With the WAPC addition, it expects sales growth of 4% to 6%. The company foresees a near-future turnaround in industrial sales and continued growth in consumer sales.

Fast food restaurants are also trying to gain a foothold in the gluten-free industry, notably P.F. Chang’s China Bistro and Subway. Some bloggers have written about concerns that food coming from the unseen kitchen at P.F. Chang’s wasn’t verifiably gluten-free, or was placed on the wrong plate (different plates are used for gluten-free meals there), although Subway received high marks for handling gluten-free meals separately from other foods, under the customer’s watchful eye. As more dieters cut out gluten, expect to see more restaurant menus with gluten-free sections.

All diets fade in popularity

In the coming months, I suggest investors watch companies like McCormick for new products and increased performance in the world market and industrial sector. Companies that can reinvent their image for today’s health-conscious consumer will be big winners in the U.S. market.

As the gluten-free dieting trend continues, big companies like General Mills, Inc. (NYSE:GIS) will add more products and change labeling on their present products. Many of the currently available products come from small, private businesses, but expect a lot of elbowing and shoving as the giants try to cash in. Like other clean-living diets, such as the Atkins and paleo diets, gluten-free foods and higher protein foods will be trending in the next few years. If prices don’t drop on these foods, the diet’s popularity will wane and America will move on to its next diet fad.

The article The Gluten-Free Craze Is Sweeping America originally appeared on Fool.com and is written by Gretchen Stone.

Gretchen Stone has no position in any stocks mentioned. The Motley Fool recommends McCormick. Gretchen is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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