Archive for category: Beverages & Drinks

Consumers Going All In On Allergy Free Foods

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Over the past 20 years, there has been an increase in the number of people who suffer from food allergies. The increasing number of individuals with food allergies is one of the top reasons why most people develop specialized diets with preference to clean eating and non-GMO foods.

With consumers suffering from food allergies, more people want access to allergy free foods. In the 2004 passage of the Food Allergen Labeling and Consumer Protection Act, all food manufacturers in the United States are required to label their products with ingredients that may contain top allergens such as dairy, soy, gluten, peanuts, eggs, tree nuts, fish, and shellfish. This is the reason why you will see these ingredients in the label list in plain language. Thus, if the product contains “soy lecithin,” it should still indicate “Soy” on the package.

Allergy Free Food is on the Rise

Katherine Allmandinger, manager of strategic insight for Nielsen’s health and wellness practice, noted that there is a growth of allergy free foods in the market today. About 46% of consumers say that the allergy free claims of food manufacturers influence their purchase decisions.

In fact, there are two types of consumers who buy allergy free products–the worriers and wonderers. While worriers have medical bases to avoid a particular kind of ingredient due to adverse reactions, this only reflects a low percentage of the actual consumers who want allergy-free foods.

It is essential to take note that average consumers are not necessarily looking for allergy-friendly foods because they suffer from specific allergic reactions. Instead, they look for these foods because they want to cut out on too much dairy or they want to jump in on the bandwagon of eating healthy.

How Food Manufacturers Make Allergy-Free Products

Before the popularity of allergy-free foods, people only ate naturally allergy-free food. For instance, Enjoy Life, a food company in the United States, has been making allergen-free products for over a decade. Their factories were some of the first to have no cross-contamination with other products.

 

On the other hand, other food manufacturers are developing products that use alternative yet non-allergen ingredients. For instance, snack company Quinn uses sorghum instead of other gluten-containing grains to create their products. They also tested other ancient grains to be able to develop allergy-free products for their customers.

Allergy-Free Foods are a Trendy Niche in the Market

As food allergies continue to rise all over the world, the allergy-free food trend will likely flourish as more and more people want food products that are healthier. In fact, there are many noticeable booths and shops that showcase allergen-free options. Moreover, many food manufacturers are innovating their products so that they are not only healthy but that they also pass the taste test.

Inspired by www.fooddive.com

The Mighty Cauliflower Is Not Just Hype

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Time Magazine declared in 2017 that the lowly cauliflower is the new “it” vegetable while Bloomberg dubbed is as “the new kale.” Although these declarations should have encouraged people to eat more of this vegetable, its sales remained flat for a few months. In fact, Nielsen Perishables reported that while the sales of cauliflower grew to 8% annually from 2011 to 2016, it remained flat ever since.

How the Cauliflower Debuted As the “It” Veggie

Although people have been intrigued about cauliflower for a few years, it was only now that it was presented under the limelight. It was the Cauliplower’s 2017 debut that made this vegetable famous. It was during the expo when consumers were first introduced to the first gluten-free cauliflower pizza crust. To date, nearly 9,000 stores distribute this product that led to the creation of a new baking mix by the company. This also sparked the trend which resulted in the market seeing products like cauliflower chips and cauliflower pretzels. Gone are the days when the only cauliflower product available at Trader Joe’s is cauliflower rice.

What makes the vegetable trendy is that it is healthy, full of fiber and low in carbohydrate content, which makes it a very logical alternative to grains especially among people who cannot eat grains. Grains have been blamed for digestive issues which are pushing the gluten-free trend. This vegetable also fits well with the growing vegan and plant-based movement. In a report released by GlobalData, there was an increase of 600% of people who opt for the vegan lifestyle in the U.S.

High Demand, Low Production

 

There is an increased consumption of fresh cauliflower according to the US Department of Agriculture’s Economic Research Service. The per capita consumption of cauliflower is estimated to 2.18 pounds in 2017 that is 38% higher from the 1.57 pounds in 2016 and 1.33 pounds in 2010.

Despite the increased consumption per capita of cauliflower, there is still a limited supply of cauliflower to meet the growing demands of the consumer. This is expected to drive the prices of the vegetable higher. But will this make a price war in the market? Not entirely as the agriculture sector is working hard to meet the growing demands of this wonder veggie.

On the other hand, cauliflower contains a minimal amount of starch, which makes formulation challenging to create new products without using specialized equipment. For instance, cauliflower pretzels and crackers need special tools to develop the new products according to Ground Up COO Vincent James–maker of cauliflower crackers and pretzels.

The lowly cauliflower has emerged into a superfood, and it has come a long way since it debuted in the expo. If food manufacturers can continue to create more opportunities to develop cauliflower-based products despite the challenges such as the high price and low demand, then this vegetable will have a long way to go before it reaches its full potential.

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Nielsen: Private Label Sales Grew 3X Faster Than National Brands

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In a recent report released by Nielsen and cited by Food Navigator, private label sales surpassed the sales of national brands. Private labels are manufactured by one company under another company’s brand or private label. Also called OEM products, they can add margin to stores as well as provide more credibility to shoppers.

The Benefits of Private Labels

Whether it is a bottle of orange juice or a bottle of ketchup, today’s shoppers are comfortable with private labels, which they also called “generic” brands.  There are a lot of benefits to using private labels. Private skip the big brand name, so there is no added cost which allows vendors to add cost or value to their product in other areas to make it more reliable. It is also a solid strategy for retailers as it can reduce competition in different categories.

The Growth of Private Label Sales

 

The Nielsen report has shows that private labels have experienced a complete reversal regarding its growth, sales, and popularity. In fact, future projections indicate that there will be continued growth for such products and that the market share could hit 25.7% by 2027. This translates to an 8% growth rate over the next ten years.

The popularity of private labels has resulted in retailers like Lidl, Aldi, and Trader Joe’s to earn more revenue and build customer loyalty. In fact, such retail companies have emphasized these products in their online and brick and mortar stores with much success.

National Brands Vs. Private Labels

Big food manufacturers are watching this trend with alarm. And even the brands that remain strong and unsurpassed by private label products are still watching with keen eyes and ready to react. Most national brands are working on convincing shoppers that national brands have been tried and tested and worth the extra cost. But in reality, market experts noted that longtime legacy brands could get an extra boost especially if they continue to innovate and do not rest on their laurels.

While the private label brands are not yet posing too much threat to national brands, there is still a possibility that it can happen. If national brands cannot keep up with the private labels, the market scene in the United States will look more like in Europe where private label commands more loyalty from consumers.  In fact, in the UK, private labels hold 45% of the market share within the grocery sector. The reason why private labels are popular in Europe is that they provide more value for the money and that they offer more choices to shoppers.

Private labels will be huge in the following years. If private labels keep up with the changes as well as offer more value and choices to shoppers, they can ride the current trend for a long time to come.

Inspired by www.fooddive.com

Consumers of All Generations Are Loving Plant-Based Foods

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In a report released by survey company Datassentials, it revealed that many Americans are shifting towards plant-based foods because of the benefits to the body. In fact, most people are increasing their intake of fresh fruits and vegetables more than ever.

There are many reasons why consumers are shifting towards a new diet regimen, and the reasons vary across demographics. For instance, 44% of the Generation Z consumers change to plant-based foods as they enjoy the taste of fruits and vegetables while 21% of millennial consumers opt for plant-based products to show support to the local farmers.  It is essential to take note that while consuming plant-based products come with a lot of functional benefits, many consumers are uncertain about the role of plant-based foods. In fact, fewer can identify the attributes of the specific plant-based foods that they are consuming.

Big Companies Are Jumping on The Bandwagon

Having said this, consumers who opt for the plant-based diet usually count on seeds, nuts, legumes, and whole grains as part of their pantry staples. But aside from these food items, consumers also eat more fruits and vegetables.

The increasing consumption of fresh produce and plant-based products has resulted in sales growth for big companies. Around 30% of the consumers limiting their use of meat (flexitarians or pescatarians) or avoiding meat (vegan or vegetarians) have been attracted to the new plant-based meat alternatives in the market. Even big corporations have embraced this trend. Companies like Starbucks, for example, have released its line of nut milk-based beverages while TGI Fridays have stepped into the plant-based territory by using Beyond Meat’s meatless burger to create most of their plant-based dishes.

How Other Companies Can Leverage on The Trend of Plant-Based Foods

While big companies are joining the trend in releasing products made from plant-based ingredients, smaller enterprises are a bit skeptical. However, food manufacturers can leverage the trend and attract more consumers by incorporating global flavors to make their food more interesting. Using bold flavors and ethnic recipes can also attract consumers. On the other hand, avoiding alienating descriptions such as putting on the label “vegan” or “vegetarian” will also help promote the product.

In fact, 85% of consumers agree that plant-based foods are fulfilling and as delicious as animal protein-based products. But more than mimicking animal protein, consumers are also drawn to colorful produce thanks to the promotion of smoothies and fruit bowls on social media. The thing is that social media plays a critical role in promoting plant-based foods, especially among millennials.

With the increasing number of consumers opting for plant-based foods, it is no wonder why many companies are embracing this niche thus the sale is likely to increase in the years to follow. The only challenge here is to give further knowledge to consumers so that they will be encouraged to eat more plant-based foods not only for their health but also for the environment.

Inspired by www.smartbrief.com

Study Warns Brands to Rethink Clean Label Products

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Clean label products are are the fastest growing market in the food and beverage industry. While this movement is trending, it leaves a lot of gray areas—not only for the food manufacturers but also for the retailers and consumers. Unfortunately, there is no single definition of the word “clean label” even if it has been around for a few years. This has led to a lot of confusion among many people.

A joint study from the Food Marketing Institute and Solutions for Retail Brands called “The Clean Label Phenomenon for Food Retailers: Enhancing Transparency for consumers” is aimed at determining what consumers think about clean labels.

The Definition of Clean Label

So, what are clean label products? The conventional definition indicates that products are made from natural ingredients devoid of artificial additives, preservatives, and flavoring. Other definitions also include food that comes with ultimate authenticity as well as trustworthiness. The thing is that clean label is often interchanged with the word “natural” that is way too far from the truth.  Currently, there is no legal definition of a clean label, and the lack of a precise definition and consistency makes it confusing for everyone.

If you are a follower of the clean label movement, it is crucial to know which foods come with clean labels and which ones do not. While it is apparent among consumers that preservative and additives are not included in the clean label food list, 65% of shoppers are still confused such that they tend to avoid ingredients like sugar and salt actively. People consider GMO foods not to be clean label products.

Problems Involving the Clean Label Movement

Aside from the vague definition of “clean label,” another issue involving this movement is transparency. While consumers want more straightforward ingredient lists, what they want more is greater transparency. Further, different generations of consumers also demand different qualities from clean label products. The differing needs from each generation of consumers also mean that they have differing views on different brand labels. For instance, consumers that prefer free-from-modifications products may view other traditional unaltered products unacceptable.

While there are some problems involved in the clean label movement, food manufacturers and retailers can address these issues by being transparent when it comes to how they interpret the word “clean label.” For some companies, they may view clean labels as non-GMO ingredients while some might focus on how the ingredients are processed.

How to Solve the Problems with Clean Label Products

In fact, European companies are more receptive towards the clean label movement. The food industry in the United States can learn from European companies. To date, only 27% of packaged foods are marketed with a clean label to which private brands make up the most substantial amount of sales. While the sales of products that are packaged as a clean label are still meager in the United States, it will eventually grow as more and more people become more aware and conscious of the foods that they are eating. Hopefully, in the future, clean label products will be better defined so we can all get behind eating better for you foods.

Inspired by www.fooddive.com

Innovative Premix Products for Infants to Grow By 2028

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New market research predicts increasing growth of nutritional food premixes for infants over the next ten years. With more parents wanting to feed their precious babies with only the best infant formula, companies have developed innovative nutritional premixes with nucleotides, organic ingredients, probiotics, and botanicals—aside from the usual ingredients like Vitamin D, DHA, ARA, and iron to name a few.

Infant formulas are food products that are intended to give the right nutrition to babies and infants. When it comes to infant nutrition, premixes play an essential role in formulas. Infant nutrition premixes are customized blends that are intended to improve the overall nutritional value of infant formula.

More Formula Consumption in Near Future

The trend of unique infant formula is growing in developed countries particularly in North America due to the increasing awareness associated with different blends of vitamins, minerals, amino acids, and other fortifications. In fact, North America shares a large regional market for nutritional premixes for infant formula, and it is forecasted that the value of the market will rise to $103 million by the end of 2028.

Powdered infant nutritional premixes are preferred because of their convenience compared to liquid infant mixes.  Aside from convenience, the contamination of powdered premixes is lesser compared with liquid premixes.

Which Ingredients Are Popular in Powdered Premixes for Infants?

 

There are different types of ingredients put into powdered nutritional premixes. But one of the most popular ingredients used is nucleotides. Nucleotides are added widely not only in infant nutrition but even in pharmaceutical nutrition industries.  Premixes containing amino acids such as threonine, lysine, and methionine to name a few are very popular as they are the primary amino acids needed by small children to grow well. Infant nutritional premixes are now becoming more functional as they are designed to help improve bone health, digestion, and immunity of infants.

Infant nutritional premixes are gaining traction and are now competing with the sports nutrition market as one of the industries that use nucleotides, vitamins, and other dietary supplements. Formula producers are looking for more natural premixes from fruits and vegetables to create more attractive packaging.

Key Players in The Market

The company Future Market Insights (FMI) released a report titled “Infant Nutritional Premix Market: Global Industry Analysis (2012-2017) and Opportunity Assessment (2018-2028)” which revealed that there are now a lot of critical players taking a bite of the infant nutritional premix niche. These include Plc, Glanbia, Royal DSM N.V., GmbH & Co, BASF, Watson-Inc., Hexagon Nutritional Pvt. Ltd., Farbest Brands, Vitablend, ADM company, and Jubilant Life Sciences to name a few.

The market for customized infant nutritional premix is becoming popular and is expected to get stronger as more and more people are looking for infant food products that contain more value than the usual conventional baby formula products.

Inspired by thefinancialconsulting.com

Scott Gottlieb’s FDA Will Continue to Push Food Transparency Measures

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With the focus on deregulation by the Trump administration, many food industry experts worried that the newly appointed commissioner of the FDA, Scott Gottlieb, would roll back pending changes to nutrition labels and consumer information. However, at a recent conference, Gottlieb made it clear that the FDA is going to continue to push for food transparency with Nutrition Facts, labeling, and definitions playing a significant role in the agency’s new nutrition innovation strategy.

Improving the Health of Americans Through Food Transparency

At the National Food Policy Conference in Washington, D.C., Gottlieb let everyone know that the nutrition innovation strategy is meant to improve the health of all American regardless of socioeconomic status.

“Our challenge is to help create more healthful choices and foster inovation and competition, and also make these choices more afordable.” – Scott Gottlieb, FDA Commissioner

A study found that 20% of American deaths in 2015 could be attributed to poor dietary factors. Gottlieb made sure to emphasize the importance of research and facts on everything his agency does. He said that clear science-based information is the central pillar of the work we do at the FDA and is essential to helping drive better consumer choices.

Nutrition Facts Labeling Updates

 

Gottlieb indicated that the new Nutrition Facts labeling initiative is of the utmost importance, but he wants to make sure it is right. He wants to roll out the new label with a consumer educational campaign to help the average American better understand how many calories they should be consuming each day.

On top of the new label, he promised to handle the definition of “healthy” and “natural” for labeling. A core definition of “healthy” is critical to help consumers better understand what they are buying. The new definition will consider nutrient content. Consumers also want more clarity on “natural” which has never been defined by the NDA. While Gottlieb did not offer up much on this definition, he did indicate that it will need to be science-based.

Streamlining the Labeling Process for Food Manufacturers

Gottlieb believes the regulatory labeling process is currently too lengthy and time consuming for food manufacturers. He has added to his docked to streamline the labeling process to modern times. He wants it to be easy for consumers to understand the health benefits of a product.

He wants to make it easier for the food companies to clean up their labels. Interestingly, he used vitamins as an example since they typically appear by their chemical name on the ingredient statement. We believe it should stay this way as most of these vitamins do not come from whole food sources and are chemically derived. Our GrandFusion products concentrate these natural vitamins from fruits and vegetables and as a result, allow products to use a much cleaner ingredient statement.

Conclusion on Gottlieb’s Remarks

The FDA is overall in good hands with this Trump appointee. He is committed to pushing forward all of the Obama-era regulations and making decisions on scientific fact. He believes some of the processes in the FDA are archaic and need updating to work faster in today’s environment. It will be interesting to see all the changes that move forward under Scott Gottlieb’s leadership.

Inspired by www.fooddive.com

Starbucks is Working on Blockchain for “Bean to Cup” Tracking

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Starbucks released this week that it is working with blockchain technology to create a “bean to cup” tracking system. The innovation is driven by the consumer’s desire for more transparency into where food and beverages come from. Starbucks is launching the pilot program to track coffee beans from Costa Rica, Rwanda, and Colombia.

Starbucks + Blockchain = Coffee Traceability

The premium coffee company believes that blockchain’s “traceability technology” pairs well with their commitment to ethically sourced coffee and ecologic sustainability. Starbucks believes the technology will enable them to strengthen their supply chain and relationship with consumers.

The blockchain pilot program will go through multiple phases over the next two years. The pilot will fall in line with the Sustainable Coffee Challenge that the company championed with Conservation International in 2015. The company plans to share its results with the public.

Shortcomings of Current Blockchain Technology for the Food Supply Chain

The traceability of coffee beans to the cup is a noble cause by Starbucks, but it is worth noting that there are still some shortcomings with blockchain technology when applied in the food industry. Food supply chain experts still believe the “winning” blockchain application has yet to be developed for the food industry.

There are currently issues with entirely tracking that ingredient to the final product in many cases. IBM is working on a few innovations to help solve this issue. They believe that “cryptographic anchors” may be the solution in the next five years. Anchors would include microscopic, digestible ink dots on products to verify the authenticity of the final product within the supply chain.

While there are a few shortcomings, Starbucks is again leading the way with technology in the food industry. It will be interesting to see how blockchain works for them over the next few years.

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