Nearly 24 million children and adults in the Untied States have diabetes, and another 57 million are currently in a pre-diabetic state, according to the American Diabetes Association (ADA). In the past, this diagnosis would have meant these consumers would have to eschew bakery products. However, Hill & Valley, Rock Island, Ill., is serving this niche by offering a variety of sugar-free and no-sugar added sweetgoods.

“For those diagnosed with diabetes, one of the first things that comes to mind is ‘I can't have sweetgoods anymore,’ or they go to the store and the baked products made without sugar have an aftertaste. They are under the impression they have to eat products that don't taste great,” says Scott Florence, president/C.E.O. “We have award-winning products we formulate to taste just as good if not better than full sugar products. That's the first step that connects with the consumer.”

And, the consumers are responding. For the past 10 years, Hill & Valley has consistently delivered double-digit growth. Florence expects similar growth this year, selling almost exclusively to supermarket in-store bakeries.

With 109 SKUs in four categories — muffins, cakes, cookies and pies — Hill & Valley offers something for almost every consumer looking for a sugar-free or no-sugar added bakery product. The high SKU count is a result of founder George Coin's experience with his family's wholesale bakery that sourced all bakery products for a local supermarket chain. In 1986, Coin opened his own bakery, Nancy's Pies, that made sugar-free products. Florence joined the company in 1995, and at that time the bakery began to rapidly expand its product line. Coin retired in 2005, selling the bakery to an investment firm.

About three years ago, the bakery renamed itself Hill & Valley, with all products carrying the same brand name. “This is a brand now, emerging from a nutritional claim, so we have to think differently,” Florence says. “How do we communicate that to the consumer? Our partnership with the ADA is part of that.”

In step with ADA

In 2009, Hill & Valley became a national promotional sponsor of the ADA and its Step Out Walks to Fight Diabetes. Fourteen products — two-pack oatmeal cookies and several varieties of angel food cake, mini muffins and sliced crème cakes — rolled out with new labels in May featuring a special Step Out to Fight Diabetes logo, highlighting the product's compliance with ADA standards. Hill & Valley is currently working with the ADA to introduce even more ADA-labeled products in 2010.

“We were naturally aligned to meet ADA requirements, but we did have to do some minor reformulations in order to make sure we were compliant with what the ADA would perceive as being proper food items for a healthy diabetic lifestyle,” says Amy Behning, director of marketing. “We looked at their guidelines and said, ‘this product is really close, we could do some minor modifications.’ ADA-labeled products have the same premium tasting qualities as the rest of our products.”

The sponsorship also includes a significant brand and sales promotion to help grow and introduce the bakery's products to the diabetic market, Behning adds. It includes manufacturer's coupons and instant redeemable coupons on certain products as well as ads in national diabetic and healthy living magazines. Hill & Valley also provides in-store bakeries with ironman signs, tabletop signs, rack toppers and freezer clings to help promote the walks and Hill & Valley's sugar-free products.

Throughout the year, Hill & Valley will partner with retailers in about 20 markets to help promote the Step Out Walks. In five of those markets, the bakery will showcase its Step Out Café, a large tent offering free fresh fruit, Hill & Valley ADA-compliant products, hot coffee and bottled water. The cafés are co-branded with the bakery, ADA and the local supermarket and will connect with walkers who can sample Hill & Valley products as well as entertain participants before and after the walks, Behning says. “Hill & Valley wants to assist in positioning our retailer partners as a community resource for health and nutrition. It is truly a win-win-win promotion for the ADA, Hill & Valley and our retailers,” she adds. “Diabetes changes a person's lifestyle, but what Hill & Valley provides are great-tasting bakery items that they thought they had to give up.”

Formulating without sugar

“We spent a lot of time coming up with the right blend of sugar substitutes because the taste profile we are looking for has to be equal to or better than its matching product with sugar,” says Jose Velez, R&D manager.

Hill & Valley uses a variety of sweeteners, but mainly maltitol and sorbitol as well as acesulfame potassium and sucralose or Splenda to give products a little extra sweetness, Velez adds.

“We've been in business a long time, and we know a lot more about these sugar replacers and how they apply to bakery than other manufacturers,” Florence says.

By removing the sugar, Velez and his R&D team not only have to replace the sweetness, but sugar's other qualities, such as caramelization, shelf life, moisture and texture or mouthfeel. And, the replacement ingredient is often not a simple 1:1 ratio. For example, Splenda is 600 times sweeter than sugar, so emulsifiers and starches need to be added.

“We're always changing our formulations and trying to solve problems. We always want to make sure we have the best-tasting products,” Florence adds.