Archive for category: Beverages & Drinks

Big Food Looks to Startups for Innovation

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With a push for innovation and new ideas, even food companies are looking to startups.  Recently, General Mills has backed startups for new ideas they can release to their loyal customers. But it is not only General Mills jumping onto this latest trend of looking to startups for new ideas.  In fact, companies like Coke and Kellogg’s have already partnered with their smaller competitors to stay on top of their game.

What’s Pushing the Trend?

With a large number of high-profile companies investing in smaller companies, it is no wonder why many players in the food industries are following suit. But why are companies investing in startups? There are many reasons why large enterprises venture into smaller companies. First off, big food can offer lower supply chain costs and increased sales channels that it takes years for startups to gain traction in.

Larger companies can introduce new products their loyal customers without spending directly on staffing as well as research and development. General Mills, for example, has invested in startups like the New York-based company, Tio Gazpacho, to develop products that appeal to both wellness and health.

Startups As Looming Competitors

With more customers looking for innovative goods and services, it cannot be denied that many startup companies are becoming very competitive these days. Startups are growing threats to bigger players in the food industry. For instance, Coca-Cola has faced problems in their sales as more people opt to drink healthier beverages than the infamous soda. This is the reason why it established its venturing arm to invest in products with billion-dollar potentials such as brands like Zico coconut water and Honest Tea. Instead of competing with their small, budding competitors, big food manufacturers would rather buy, invest, and work with them.

Startups Are Not Selling Out

Both small and big companies can benefit from such arrangement. While large enterprises get new ideas and even expand their client reach, smaller brands can get the funding that they need to develop their products and their sales channels.

But more than revenue and expanding their consumer base, there are other benefits to this kind of arrangement.  For instance, when General Mills invested in smaller startups, it also transformed its product lines towards clean, healthy and natural options. Going towards, cleaner, healthier and more natural products is something that startups have been dominating in the past few years. In fact, the sales of healthier products have grown to 11% during the first period of this year, and 7.9% of the food sales comes from organic foods. Large food and beverage companies have overlooked this trend in the past but are now trying to win back by investing in startup companies.

Inspired by WSJ.com

Adding Vitamin D in Food Can Reduce Respiratory Infections

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Millions of people suffer from respiratory infections every year. Respiratory infections including coughs, flu, pneumonia and bronchitis are typically caused by virus or bacteria. In the United Kingdom alone, about 3.25 million people suffer from at least one type of respiratory infection per year. Most of these infections occur during the winter months when the weather is cold, wet and dreary.

Researchers believe there is a plausible explanation why people get such infection during the winter months. Studies have shown that the occurrence of respiratory infection may also be attributed to the lack of exposure to sunlight – the leading source of Vitamin D. For the body to function properly, you need to take in at most 10,000 IU per day. Unfortunately, sun exposure can be quite difficult during the winter months.


Epidemic of Respiratory Diseases During Winter Time

Experts believe that respiratory infections can be lessened if people add more vitamin D to their diets during the winter. In fact, this will not only prevent people from incurring diseases, but it will also help NHS cut down its costs.

However, in the UK alone, there is a huge deficiency of the sunshine vitamin. Researchers from the Queen Mary University advise against fortification as it can significantly change the cost of food. Fortification may be a good idea for people who show significantly low levels of serum vitamin D.

But instead of fortification, one of the best solutions to this problem is to encourage people to bolster their Vitamin D intake through food. The problem is that food sources that are rich in vitamin D are only limited to oily fishes and shitake mushrooms. While getting vitamin D from food is important, one of the best ways to get this nutrient is to spend some time under the heat of the sun. Other options for food companies is to add natural vitamin D to food from sources like shiitake mushrooms. NutriFusion developed a stand-alone Vitamin D2 and D3 for food manufacturers to add to a variety of food without impacting flavor or texture.

Benefits of Vitamin D Against Respiratory Infections

About 70% of the population in the United Kingdom suffer from respiratory infection every year. Regularly taking vitamin D can reduce the risk of respiratory infection by 10% and reduces the need to take prescription antibiotics.

The study conducted by the researchers from the Queen Mary University places profound importance on fortification, but some authors believe that fortification should only be given to people who are at risk of developing osteomalacia that is the weakening of the bones due to low levels of vitamin D.

How does vitamin D fight against respiratory infections? Vitamin D plays a significant role in boosting the immune system. If you look at the cells of the immune system closely, they have receptors for vitamin D. Once the vitamin D adheres to the receptors thus reducing the levels of cytokines–a type of inflammatory proteins and increasing the amount of anti-microbial proteins.

Whether people take vitamin D-fortified foods or just bask in the sun as much as they can, the truth is that vitamin D can make significant improvements to the immune system resulting in a lowered risk for respiratory diseases.

Inspired by www.theguardian.com/science

The Transformative Food Trends of 2017

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While we are still in the middle of the first quarter of the year, food analysts have already determined different food trends that will become popular throughout the rest of the year.

#1: Perfectly Imperfect Whole Foods

People used to be so obsessed with perfection when it comes to their food. They want their carrots to be free from blemishes, and their spinach must have uniformly sized leaves. Today, however, the perception of perfection has changed. To achieve perfect produce, they need to undergo a lot of agricultural treatments. For carrots to be blemish-free, they need to be sprayed with nematicide so that their roots can grow perfectly without being eaten by nematodes.

This year, many customers want imperfect whole foods. For them, foods with cleaner labels are more important than perfect produce. Customers prefer foods that are unadulterated and has undergone minimal processing.

#2: All Smart Everything

You have your smart appliances so expect to see all smart everything in the food scene this year. Multiple companies that manufacture kitchen appliances have developed smart devices to provide more convenience to users. For example, the company Flatev has made kitchen appliances that will allow you to make homemade tortillas or bread with just a few clicks of the finger.

#3: Plant-Based Movement

Another trend this year is the plant-based movement. Consumption of plant products is increasing this year as more people are becoming aware of the health and environmental benefits of eating a plant-based diet. In fact, many companies have jumped on the bandwagon of producing plant-based food. Almond milk, for instance, is a billion-dollar industry that is constantly increasing its revenue as more people are looking for dairy alternatives. Other companies have also created plant-based meats to meet the demands of people who prefer not to eat meat.

#4: Internet Retailing

Big retailers like Walmart, Safeway, and Kroger have typically expanded by building a larger store or opening more distribution all over the country—or the world. Building a business through traditional retail may still be popular today, but it is being replaced with internet retailing.

Today, most millennials prefer convenience, which is why online shopping is a very attractive option for buying things. In fact, we can buy anything on the internet. From ready-to-eat meals to groceries, you can simply purchase anything with just a few mouse clicks.

But aside from internet shopping, the use of technology is also implemented in brick and mortar stores. Amazon launched its Amazon Shop where people can shop for items without having the need to go through a checkout counter as their payments are already deducted through RFID.

Inspired by www.forbes.com

Mixed Reality: The Future For Food And Beverage Brands

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Virtual reality and augmented reality have been two of the largest trends in technology over the past few years. Companies like Apple, LG, Samsung, and Microsoft are putting significant investments in mixed reality. They are even planning to make this technology available to the masses. However, it is not only tech giants that are looking into using augmented reality. In fact, food and beverage brands are eyeing mixed reality to improve the marketing of their products.

Brands Buy Into Mixed Reality

In the future, consumers will throw away their bulky devices for mixed reality glasses to do ordinary things like surf the internet, play games, and communicate with other people. Brands will have the opportunity to engage customers in the 3D world through packaging and point of sale displays. As a result, mixed reality technology will bridge the gap between digital and physical shopping.

In an even distant future, food manufacturers can use mixed reality to manage their inventory through eye sensors and spatial mapping. While there is still a long way for food manufacturers to go before they can fully benefit from mixed reality, some companies have already adopted the digital campaign.

Coca-Cola, for example, has offered 3D gaming to encourage more people to buy their products. Another company, Hellman, has also launched 3D recipe tutorials provided by celebrity chefs. In the future, retail industry giants will create an augmented-reality store where customers can see a digital image of the store and order their products online.

 

The Future of MR, AR, and VR for Big Brands

Many believe this technology will become mainstream in the future. Opportunities for many food and beverage brands to market their products will create an automatic analysis of the market. The challenge that manufacturers are now facing is how to index billions–even trillions–of data points to market to the right audience.

A new feature of mixed reality technology is eye tracking. Multiple tech companies have invested in this feature as it allows them to track where customers are focused. Eye tracking is an additional way to improve the analytics of the business. This feature is also used to improve machine learning over time.

Developers are also looking to integrate the internet of things (IoT) with mixed reality. This means that if you look at your fridge, for example, through the mixed reality glasses, it will generate information about your inventory and nearby grocery stores. This natural feature provides an emotional connection with the technology.

With mixed reality technology, everything will become real estate regarding brand marketing, and it will provide a better shopping experience to customers. The technology already exists and what food and beverage companies need to do is to improve the platform.

Inspired by Keith Curtin’s article on venturebeat.com

Shoppers Willing To Spend Extra For Ingredients They Recognize

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Most shoppers today are more aware of the food and beverage products they buy. They opt for products made from organic and natural ingredients, and they value the transparency of product labels more than ever before.

In a recent survey conducted by Ingredients Communications, it revealed that 52% consumers are willing to spend 10% more on food products that contain ingredients they trust and recognize. The survey interviewed 1,300 consumers from North America, Europe, and the Asia-Pacific. The survey also noted that 18% of the respondents are willing to pay more than 10% for reliable brands.

Consumers from the United States are the ones most prepared to pay extra to 44% of the respondents responding yes. This is followed by shoppers from the Asia-Pacific including the Philippines (29%) and Malaysia (26%) indicating that Asia is an emerging market for food companies who want to improve their transparency and recognizability of the ingredients they use.

Co-Branding Allows Shoppers to Recognize Reliable Products Easily

So, what does this survey imply? It simply points to the importance of having clean labeling on food and beverage products. Consumers are becoming aware that many food companies are now using synthetic or artificial ingredients to make their products. These ingredients are now known to cause negative side effects to the body. The movement of going back to basics which include buying products made from all natural ingredients is becoming popular. Food manufacturers are using this movement to their advantage by rebranding their products and co-branding with their suppliers.

Co-branding has become hugely popular in the clean labeling movement. According to the director of Ingredient Communications, Richard Clarke, co-branding has been used in the tech industry to sell products like laptops. If the food industry uses it, it will be easier for the consumers to know which brands to trust because they have partnered with other reliable brands and ingredient suppliers. This will result in higher spending, repeat purchase, and stronger loyalty to the company.

While co-branding is a great way for shoppers to easily recognize the ingredients and brand of the product that they want to buy, it may lead to higher prices. This leaves food companies to shop around from among its co-branded suppliers to find ingredients that are also cheaper. Successful branding is still resulting in more revenues because shoppers are willing to pay more for products that are made from familiar ingredients.

Shoppers Make Informed Decisions When Shopping

While co-branding is a great strategy to make ingredients more recognizable to the consumers by partnering with equally reliable companies, there are other factors that influence the product choices and decisions of consumers. Today, many consumers are very critical about the decisions that they make when it comes to buying different types of products. With their savvy abilities and increasing awareness, they are able to recognize which ingredients are good and which ones are not. The ability to distinguish the good from the bad ingredients make consumers want to pay more.

Inspired by www.groceryheadquarters.com

Why Consumers Are Filing Class Action Lawsuits with Food Manufacturers

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Today’s consumers are vigilant. In fact, cases that have been filed against the food industry have increased since 2008. The class action lawsuits filed in 2008 went from 19 to 158 in 2015. According to food litigation group Perkins Coie LLP, the food industry has compiled 114 class actions since October last year (2016).

Examples of these lawsuits include Hershey’s not putting a lot of Kisses in their bags and P.F. Chang adding an extra charge to their gluten-free products. So why are food and beverage companies facing class action lawsuits from consumers? Many attorneys are also wondering the same thing.

Food companies are now becoming the target for the plaintiff’s bar. According to Yvonne McKenzie from Pepper Hamilton LLP, a legal firm that counsels food businesses that are in trouble, there are many reasons why food companies are facing a lot of legal lawsuits.

The Food Industry Has Untapped Deep Pockets

One of the most obvious reasons is that food companies have deep pockets. They have become a lucrative target for litigations. There are a lot of gray areas regarding federal regulation. For instance, the term “natural” has no official definition from the Food and Drug Administration (FDA), and consumers use this to file against companies making erroneous claims about their food and beverage made from natural ingredients. Other examples include the class action lawsuit against KIND Snacks for using the claim “Healthy” on their packaging and website.

Some Courts Are Willing To Entertain Claims In Lawsuits

Another reason for the rise in food and beverage lawsuits recently is some courts are just willing to consider even the most frivolous claims. For instance, one of the ridiculous lawsuits the food industry experienced last year was when plaintiffs accused Starbucks of putting too much foam in their lattes and too much ice in their iced coffee. In general, courts are quiet when it comes to getting rid of the cases and grant the motion to dismiss the case. Even entertaining the lawsuit is giving class action attorneys precedent to take more cases to court.

Increasingly Health-Conscious Public

So far this article has probably sounded like the big bad consumers are taking advantage of the food business, right? It would be too unfair to say that. In fact, one of the greatest reasons for increases in lawsuits is the increasing awareness of the consumers about the food and drinks that they buy.

Today, there are more health conscious consumers than ever. They scrutinize just about anything in their food. Many consumers feel that companies are not transparent enough and mislead consumers with catchy packaging and marketing.

Many factors interplay the complexity of legal actions filed against food and beverage industries, and since there will likely be more class actions that will be lodged in the future, food companies should be prepared.

Inspired by www.forbes.com

PepsiCo Pushed Zero Sugar for Super Bowl

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PepsiCo is one of the major sponsors for the Super Bowl and the highlight for this year’s game was its premium bottled water brand called Lifewtr and Pepsi Zero Sugar.  The company announced that it would use the halftime show sponsorship to promote its zero-sugar line of products. But the company did not rely only on its healthy drink, but it also enlisted the help of Lady Gaga.

While PepsiCo is no longer new when it comes to halftime sponsorship during the Super Bowl, what makes this year’s sponsorship unique is that it ditched its traditional soda and pushed for something healthy with its zero-calorie and zero-sugar Lifewtr. But what drove the company to stay off course from tradition?

Super Bowl Showcases PepsiCo’s Brand to Millions

The company’s decision was geared towards the increasing number of Super Bowl fans who are also health advocates. Chief Marketing Officer Seth Kaufman noted that the firm was happy to feature its zero-calorie products on such a unique sporting event. He also indicated that the corporation is actively transforming its products so that they can meet the needs of every consumer following different lifestyles.

It may be surprising to some consumers to know that PepsiCo is now producing premium bottled water. This new product is the result of the company’s aim to catch up on the premium bottled water trend led by Coca Cola’s SmartWater. While the company is still earning profits from its traditional full-calorie drinks, they are still losing revenue as more and more consumers are becoming health-conscious. It is not only PepsiCo that is suffering from sales of traditional soda brands.

Soda Giants Adapting to Meet New Consumer Needs

One of the reasons that have likely resulted in the decline of the sales of the company is the shift by consumers to buying healthier options.  In fact, the company has lost a significant bulk of its millennial consumers who now prefer drinks with little sugar and calories.  PepsiCo used the Super Bowl opportunity to get more attention from people all over the world

The company is designing its drinks to provide more benefits to consumers. The Lifewtr, for instance, is not just premium bottled water but it is concocted with balanced electrolytes and pH level to provide more hydration. But aside from the premium bottled water, the company has also rebranded its product as part of their healthy drinks lineup. They recently rebranded Pepsi Max as Pepsi Zero Sugar.

So, was the decision to push a healthy Super Bowl efficient for PepsiCo? For now, it is hard to tell.

Inspired by adage.com

Private Label Innovation: Connecting To Millennials

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Private label brands are manufactured by a particular company under another company’s brands. Over the past few years, private labels have seen a growth in market share. In fact, during the Private Label Manufacturer Association show last year in Chicago, the association indicated that the business continues to grow by 5%.

Private labels are available in different types of industries from cosmetics to food. They are mostly lower cost alternatives to other types of brands. Nielsen noted that the store sales of private labels are estimated to be at $120 billion. Private label company giants like Aldi and Save-A-Lot have catered to retail store companies like Trader Joes and Whole Foods. According to the National Bureau of Economic Research, most consumers tend to patronize private label brands because they are cheaper than others.

Why Private Label Is Innovating

The popularity of private labels has presented opportunities to manufacturers of major brands to create products that appeal to private label shoppers. For example, Hormel Foods is launching its latest commercial retail team to help partners grow their private label strategies.

Private labels also need to take a step further to meet the demands of their customers. Private label brands are also venturing into healthier products. For instance, Ohio-based SmithFoods have started producing almond milk aside from traditionally manufacturing milk and other dairy products.  On the other hand, Perrysburg from Ohio manufactures not only private label frozen pizza and snacks but also “better for you” products with organic and gluten-free ingredients.

Millennials Are The Future Consumers

Neil Stern, a senior partner from McMillanDoolittle, noted that most food retailers in the United States are updating their private label offerings to meet the demands of their customers. For now, these private label brands are focusing on producing organic and natural products.

The direction towards healthier options is being driven by younger consumers in the market. Younger or millennial shoppers are now warming up to startup brands especially those that offer healthier choices. Millennials are considered the most aggressive of all types of consumers.

 

In a recent survey conducted by the PLMA, millennials agreed that they have the knack to try food created in different ways. Meaning that they opt for healthier options that are prepared in the most sustainable way. Their food choices have also reflected their eating habits. However, Millennials do not like to spend an exorbitant amount of money to buy their food. According to the same survey, 75% of millennials tend to shop in the supermarket, where bakery goods and dairy items top their list.

With this data, supermarkets can experience big payoffs by innovating their private labels to meet the eating habits of Millennials.  Store brands have the opportunity to compete with the well-recognized national brands and in some cases, win.

Inspired by www.foodbusinessnews.net