Retailers jump on the gluten-free bandwagon

Outlet: Inside Business

There are the givens – pasta, bread and beer – but gluten can be tricky. It’s hidden in soy sauce, bouillon cubes, instant coffee, some hard candies, mustard, baked beans, and though not recommended for consumption, in toothpaste and Play-Doh too.

For those allergic to this protein found in wheat, rye and barley, the symptoms can be crippling, even life-threatening.

Though originally thought to be a rare childhood syndrome, celiac disease, a gluten allergy, is now known to be a common genetic disorder, according to the U.S. Department of Health and Human Services. More than 2 million people in the United States have it. And then there are another 18 million people who test negative for celiac disease, but have similar symptoms – chronic diarrhea, gas and abdominal bloating, though symptoms can go beyond an irritable bowel.

Awareness of gluten sensitivities is on the rise, especially as Hollywood A-listers like Elisabeth Hasselbeck, Jenny McCarthy and Gwyneth Paltrow gush about their gluten-free guts, and retailers are touting gluten-free products to feed the frenzy.

Atkins and South Beach are out, said Cynthia Kupper, a registered dietitian and executive director of the Gluten Intolerance Group. Gluten-free is the new fad.

“While some stars may have celiac disease or a gluten sensitivity, as soon as they start publicizing it, everyone in Hollywood has celiac’s,” she said. “It’s not a weight-loss diet. It’s not going to help athletes perform better, but that is the thinking.”

Burton’s Grill, located off Laskin Road in Virginia Beach, has an entire menu devoted to gluten-free food. Kevin Harron, who owns the Hingham, Mass.-based chain, suffers from celiac disease. From his own frustrations with eating out, the restaurant was born. Though smaller than the regular menu, gluten-free options include four appetizers, six salads, 13 entrees and three desserts.

“I frequently hear, ‘I haven’t had a burger and fries in years,'” said Cliff Bennett, general manager of the Virginia Beach location, one of 10.

When ordering, Executive Chef Tyson Lord said he stocks gluten-free dinner rolls and hamburger buns, as well as pasta, sauce and alcohol. It’s all about sourcing, he said, and keeping things separate.

In the kitchen there are designated fryers, prep stations, cutting boards and knives for gluten-free food preparation to eliminate cross-contamination. Gluten-free meals are even plated differently, on square dishes instead of round, so not to be confused with items on the regular menu.

Though gluten-less products are more expensive, Tyson said the added costs aren’t passed on to the restaurant customer.

The expense is a result of stricter U.S. Food and Drug Administration regulations involving production, processing and packaging, according to a Packaged Facts October 2012 report. But regardless of price, studies show, gluten-free product purchases are on the rise.

“The market for gluten-free foods and beverages has continued to grow even faster than anticipated, reaching $4.2 billion in 2012,” according to Packaged Facts, which publishes market research on food, beverages and consumer packaged goods. From 2011 to 2012, retail sales jumped from $3.3 billion to $4.1 billion, a 24 percent growth, with the leading product being gluten-free snack bars.

And in the natural food store circuit, the gluten-free market is larger. Kupper said Spins, a company that tracks sales of natural and specialty products, estimates that gluten-free food sales will hit $17 billion at natural food stores by the end of 2013.

Grocers like Harris Teeter, Farm Fresh and Kroger have either tagged or put gluten-free products in a special section. On Harris Teeter’s website, the gluten-free product list is 15 pages long and in stores the items are tagged “gluten free.”

If you don’t have celiac disease or a sensitivity to gluten, however, nutritionists say there’s no reason to avoid it. Cutting out wheat also cuts out other dietary essentials like vitamin B and iron, and gluten-free products could cause weight gain.

Compare two brownies side-by-side, Kupper said, one with gluten and one without, and the gluten-free brownie will have more calories.

“In gluten-free products, a lot of starches are used, which are more dense and have more calories,” she said. “A gluten-free diet is not a weight-loss diet unless you don’t eat carbs, then you are back on South Beach or Atkins.”

The misconception that gluten-free products are healthier is the main motivator behind the product purchases, and the food industry is seeing the growing demand.

As a result, consumers are demanding more transparency, said Pat Peterson, the executive chef of Moe’s Southwest Grill, a fast-casual restaurant chain. “Since we use a lot of fresh ingredients at Moe’s, a lot of our options are gluten-free.”

Moe’s does not yet carry a gluten-free tortilla, but all dressings are gluten-free and salads can be served in a plastic rather than tortilla bowl.

While the manufacturing industry, with all its FDA rules and regulations, has got gluten-free down, Kupper said the retail food industry is lagging behind, partly due to tight profit margins.

“Having to label for allergens is not something they have wanted to deal with,” she said. “Some restaurants that have done it, like Burton’s, talk about increased sales and all of a sudden we have others wanting to jump on this bandwagon.”

But Burton’s said it isn’t offering gluten-free entrees to keep up with the latest trends.

“It’s not a fad,” Bennett said, “it’s for people with real health issues.”

By Lydia Wheeler

lydia.wheeler@insidebiz.com