Food Maker’s Gluten-Free Line Goes Against Grain

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Shari Cole’s father started having alarming health problems several years ago. He lost weight quickly and had to be bedridden.

Eventually, Mayo Clinic doctors diagnosed celiac disease, an extreme allergic reaction to the gluten in grain products.

The father, Larry Schneider, recovered. But as the two learned about the disease, they realized there might be an opportunity to meet the needs of celiac patients. Three years ago they started their company, Gluten Free and Fabulous.

“Gluten-free products are not a fad. They are here to stay because people who are on medically prescribed diets have to eat gluten free for the rest of their lives,” said Cole, a former Hollywood producer who is now vice president of marketing for the company.

Celiac disease is a digestive ailment that damages the small intestine and interferes with the absorption of nutrients. It is often triggered by eating food that contains wheat, barley or rye.

According to the Mayo Clinic, about one in 100 people suffer from the disease, which would total about 3 million Americans. But only one-tenth of those cases, or about 300,000, have been diagnosed.

Gluten-free diets have become something of a trend even among those who don’t have celiac disease. More health-conscious consumers are avoiding processed foods that tend to contain gluten.

“A lot of clients are looking for gluten-free products,” said Juan Hernandez, a manager at Erewhon Natural Foods in Los Angeles. “We have tags that run in stores for gluten-free products.”

According to Nielsen Co.’s LabelTrends data, gluten-free products generated $1.3 billion in sales in a recent 12-month period. That’s up 21 percent from the same period one year earlier.

In June, Gluten Free and Fabulous, which is headquartered in Thousand Oaks and Arizona, expanded its reach in Los Angeles when Whole Foods started carrying the items in its Beverly Hills, Woodland Hills, Pasadena, Thousand Oaks and West Hollywood stores. The products are carried by some other chains in the Midwest. Cole expects revenues of $8 million to $9 million next year.

The company also recently extended its line from three products to 11. New items include butterscotch and shortbread cookies, quinoa pasta with marinara sauce, and frozen pizzas with cheese and pepperoni toppings. A package of cookies retails for $5.99 or more, and are manufactured in Hayward.

Challenges abound. Cole said the company, like many food manufacturers, is grappling with the rising cost of ingredients. But she noted that her company has a higher hurdle because the cost of the natural ingredients used in its products is double or triple normal prices.

“It’s been tough,” Cole said. “You have to find that balance, because you don’t want to price yourself out, but you want the consumer to be able to buy your product.”

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