MD Foods’ Gaio faces chop in UK

Gaio yogurt, one of the first so-called “functional foods” to offer added ingredients with claimed health benefits, is likely to be axed in the UK.

Gaio is produced by Lurpak butter producer MD Foods. The company is considering pulling the brand after poor UK sales and damaging publicity over its “misleading” health claims which featured in a 4.5m advertising campaign through BMP DDB.

The yogurt contains the live bacterial culture Causido, and was marketed since its launch in June 1995 on the basis that it lowered cholesterol levels. But in March, the Advertising Standards Authority upheld complaints that these claims were unproven, although the Independent Television Commission gave clearance to Gaio’s TV advertising.

Gaio has also been the target of criticism from lobbyists such as the Food Commission.

The brand has proved unpopular with British consumers, who have been put off by the thought of eating a live culture, say industry sources. However, in Denmark Gaio has 15 per cent of the yogurt market.

MD Foods has also taken a battering over its other health food, Pact, a spread containing the fatty acid Omega 3. Complaints against two Pact press ads over misleading health claims were upheld in October and now Tesco has delisted both Gaio and Pact. It continues to stock its own spread containing Omega 3, which is called Tesco Life.

Despite doubts over the future of Gaio, Pact will stay on shelf, says MD Foods, even though its sales have also been disappointing.

MD Foods has set up a project team to investigate further possible launches, but accepts future marketing strategy for functional foods will have to be radically different…