Raising the Bar

Fans of “Seinfeld” have watched Jerry, George and Elaine wolf down corned beef sandwiches and greasy potato chips for years. Are they ready for a high-protein snack?

Carpinteria-based Balance Bar Co. sure hopes so. It is gambling about 10% of its entire ad budget on a lavish commercial for its energy bars that will appear in tonight’s final “Seinfeld” episode.

Balance Bar is up against tough competition for viewers’ attention. Visa, Fuji Photo Film and other deep-pocketed firms are also airing new commercials during the hourlong program, all hoping to make an impression on the huge audience of young, affluent adults expected to watch the program.

While big advertisers such as Visa will have many other chances to reach prime-time viewers, Balance Bar, with an ad budget this year of $9 million, can’t afford to miss out on what is being billed as the television event of the year.

“It is definitely a risk,” says Balance Bar Chief Executive James Wolfe. “But we think people watching the finale are very much our audience.”

Risk is nothing new to Balance Bar, which until two years ago sold its snacks with little success through infomercials and mail order. Sales took off in 1995 after publication of “In the Zone,” a controversial best-seller urging people to load up on protein while avoiding carbohydrates. The energy bars contain the same mixture of protein, carbohydrate and fat advocated in the book.

The “Seinfeld” spot is the most visible part of Balance Bar’s attempt to reach beyond devotees of the Zone diet, who’ve driven the company’s sales so far. Balance Bar is taking aim at time-pressed young adults who might gobble a Balance Bar for breakfast instead of a bagel as they rush off to work.

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In the commercial that will air during “Seinfeld,” Balance Bar is touted as a good-tasting snack. The ad uses a squadron of flying pigs as a visual metaphor to convince people who are skeptical about its flavor. If pigs can sprout wings and fly, then anything is possible, says Shawn Buckley, whose Costa Mesa-based agency created the ad.

Getting noticed by “Seinfeld” viewers is only the most immediate challenge facing Balance Bar. An advertising watchdog group has asked Balance Bar to modify claims about weight loss and performance. And in a lawsuit filed in federal court last month, rival PowerFoods Inc. has accused Balance Bar of false advertising and anti-competitive behavior.

Competitors “may not be growing as fast as we are and are looking for excuses for their lack of performance,” Wolfe said. “It is not unusual [for rivals] to be jealous of that success.”

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Advertisers are paying NBC an average of $1.5 million for a 30-second spot during “Seinfeld,” more than the $1.3 million they paid to advertise during the Super Bowl in January. “Seinfeld’ is expected to attract slightly fewer viewers than the Super Bowl, but fans of the “show about nothing” are a desirable bunch.

Eisner & Associates, a Baltimore-based advertising agency, said “Seinfeld” attracts large numbers of Gen-Xers and adults with above-average incomes.

“The show revolves around four very self-absorbed singles, and interestingly, this . . . segment is the most likely to watch the show,” said David Blum, an Eisner vice president.

Blum predicts “Seinfeld” viewers will pay closer attention to commercials than Super Bowl fans, since they’ll be watching “Seinfeld” in the quiet of their homes, rather than at noisy parties.

“Less distraction means any one advertiser will have a better chance to capture the attention of the viewer,” Blum said.

Balance Bar is cherry-picking viewers by buying time in local television markets where it has the best chance of building sales. Its commercial will air in Southern California--one of the nation’s biggest markets for energy bars--and possibly eight other cities. Negotiations were expected to continue through early today, according to Balance Bar’s agency, Buckley/Friedman.

The cost of a 30-second spot in local markets is significantly less than a network ad.

Balance Bar hopes its $750,000-plus ad will send a message not only to consumers but to executives at supermarkets and convenience store chains that sell its product. “It indicates that we are serious about building the brand,” Wolfe said.

Since the company got started in 1992, Balance Bar has tried to find a niche. Through 1994, it alternately pursued health club patrons, diabetics, cyclists and distance runners, without much success. After joining the company at the end of 1995, Wolfe zeroed in on busy adults, mostly women in their 20s and 30s, who frequently lack time for regular meals.

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The approach helped set Balance Bar apart from nutrition bar leader PowerFoods, whose high-carbohydrate PowerBar is popular among dedicated athletes.

“They are the testosterone bar,” said Buckley of Balance Bar’s rival. “We went in another direction.”

Balance Bar placed ads in fashion and beauty magazines, showing svelte businesswomen using cell phones and portable PCs. Advising women to “hit the bar for lunch,” ads touted Balance Bar as an “all-natural, 200-calorie meal.”

In signing up endorsers, Balance Bar has tried to combine athleticism with glamour. Among its pitchmen is Madonna’s personal trainer, who collects a fee when he appears on such television programs as “Entertainment Tonight,” wearing a T-shirt with the Balance Bar logo.

Balance Bar also began using another advantage--the Zone diet. Its print ads refer to the “40-30-30 nutrition concept,” the percentage of protein, carbohydrates and fat the diet calls for. On its Web site, Balance Bar traces its roots to “In the Zone” author Barry Sears--though Sears is miffed his name is used without permission.

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Nonetheless, Balance Bar’s approach seems to be working. Sales rose to $39.6 million in 1997 from $1.3 million in 1995, pushing Balance Bar to No. 2 in energy bar sales. Seizing opportunity, Balance Bar is preparing a public offering in the wake of record gains.

Balance Bar, however, faces allegations that its growth is being fueled in part by flimsy claims. In February, Balance Bar agreed to modify ads questioned by the National Advertising Review Board, a watchdog arm of the Better Business Bureau. The NAD said Balance Bar couldn’t substantiate claims about performance (“Keeps you alert . . . Better concentration and focus”) and weight loss (“Provides better access to stored body fat . . . Leads to weight control.”)

Balance Bar also agreed to modify a claim that the Zone diet--controversial among medical experts--has been “clinically proven” to work.

PowerFoods, in its federal lawsuit, alleges that Balance Bar hasn’t adequately modified its claims.

“We don’t feel they have a case against us,” Wolfe said.

But in a document filed with the Securities and Exchange Commission, Balance Bar lists other marketing hurdles. It might not be able to enforce a trademark on the word “balance” because it is widely used, the company says. And bad publicity about the Zone diet could “lead to a loss of consumer confidence” in its energy bar.

Balance Bar is counting on the “Seinfeld” spot to quickly raise its profile. “This is the most significant thing we’ve done,” said Buckley. “We want the cache of being on the final episode.”

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Raising the Bar

Here’s how the finale of “Seinfeld” compares with other similarly hyped programs when it comes to the cost of a 30-second commercial:

‘Seinfeld’ finale: $1.5 million

1998 Super Bowl: $1.3 million

‘Cheers’ 1993 finale: $650,000

‘MASH’ 1983 finale: $450,000

Source: Eisner & Associates

Energy Bar-rage

PowerBar has long been the best-selling energy bar. But it’s being threatened by fast-growing competitors, including Balance Bar.

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Bar Sales* PowerBar $29.9 million Balance 7.6 million Met Rx 7.4 million Clif 6.4 million

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*For the 12 months ended March 22 and excluding natural food stores.

Source: Information Resources Inc.