Archive for category: Beverages & Drinks

Energy Drink Industry Reached Record Global Sales in 2015

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Energy drinks are all the rage these days. People are fascinated with the idea that a drink will give them enough energy for all their daily activities. But how is the energy drink industry faring these days? In the study conducted by research firm, Mintel, it revealed that the number of energy drinks launched in 2015 surpassed the previous highest number recorded in 2008. Between 2010 and 2015, the numbers of energy drinks have grown by 29%. The key country leading the industry is Germany which had the highest share of new energy drinks at 9% launched in 2015.

However, it is not just the new products that are booming. The sales volume of traditional energy drinks rose by 10% globally which is translated to around 8.8 billion liters. The top markets for energy drinks regarding volume sales include U.S. (at 3.3 billion liters), China (at 1.4 billion liters), UK (at 561 million liters), Thailand (at 465 million liters), and Vietnam (at 351 million liters).

The Popularity of Energy Drinks

So why is there such a massive increase in the sales of energy drinks? Mintel’s Global Food and Drink Analyst Alex Beckett noted that while there is a huge controversy surrounding energy drinks, it remains successful because of its promise to deliver a quick energy boost to consumers. And this is something that resonates with consumers all over the world.

 

Moreover, major brands are devoted to investing in advertising as well as creating high profile initiatives to give energy drinks an exciting image. To make the products more appealing, Mintel noticed that many brands are now introducing organic claims to promote their products for people who are on a clean eating lifestyle.

In fact, 7% of the energy drinks that have been launched in 2015 have an organic claim. This is 3% higher compared to the products launched in 2011.  The products that have been launched with organic claims are 58% greater in Europe than anywhere else in the world with North America (39%) and Latin America (3%) trailing behind.

 

All-Organic Claims

The study confirmed that 26% of the consumers in the US are more comfortable drinking energy drinks that are made from natural ingredients while those in Europe opt for products that contain natural flavors and colorings. This trend is also observed among Chinese consumers where 40% are motivated to buy products that are made from natural ingredients.

The most important target market for energy drinks is young parents who are very self-conscious of the types of drinks they consume. The Mintel research reveals that these kinds of parents are also responsible for motivating their children to drink energy drinks.

This trend indicates that the energy drink sector is trying its best to appeal to a wider range of audiences. It also implies pressure on the rest of the energy drink manufacturers to formulate a new line of drinks that come with better and healthier ingredients.

Inspired by mintel.com

Annie’s Wants Organic To Be Affordable For All Consumers

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The rise of organic food is creating waves all over the United States. The news circulating about the dangers of eating foods laced with pesticides and other harmful agricultural chemicals is shifting people towards clean eating. Consumers are seeing the benefits of eating organic products. However, the accessibility of organic foods is mostly exclusive to people who can afford them. In reality, not everyone can afford to buy a pound of strawberries for $15. It is just too much!

Fortunately, there are now organic companies trying to reach out to a broad spectrum of consumers. The all-American favorite food company Annie’s is encouraging people to eat food products made from organic ingredients by launching new healthy and price sensitive products.

Annie’s Leading Revolution in Affordable Organic Foods

A survey conducted by the USDA in April 2016, reveals that only 23% of American consumers can afford to buy organic foods. With the rising cost of organic food, it is no wonder why many people cannot afford to buy organic even though they are now available in most grocery stores.

Poor nutrition is a big problem in the United States. Poor nutrition is often translated to high obesity rates in the country. Having seen this issue progress over the years, Annie’s has vowed to launch at least 30 new products made from certified organic ingredients.  These organic products will be sold in the form of soups, yogurts, cereals, and baking mixes. The acquisition by General Mills has opened doors to supply chains that Annie’s never thought was possible.

John Foraker, Annie’s President, noted that the company has been passionate about making organic foods for decades and this principle not only benefits the farmers and consumers but the planet as a whole. Moreover, the company believes that organic foods should not be restricted to people on high social and economic tiers. The company’s decision to make their foods available to people from all income levels is ground-breaking on its own.

To fortify its new campaign, Annie’s launched an integrated digital campaign which helped the growth of the company. With the launch of the new campaign on August 19 of 2016, it allowed people to find out about the exciting campaign and participate in it by buying the new products.

So what is the implication of Annie’s campaign on the rest of the industry? Perhaps this bold move by the company will push the other primary players of the industry to opt for the wider distribution of organic foods thereby increasing the accessibility of healthy foods to all consumers. Will this happen in the future? We can only hope so.

Inspired by prnewswire.com

Beverage Giant, PepsiCo, Joins The Organic Bandwagon

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Food and beverage manufacturers are revamping their products by using organic and natural ingredients. One company that has recently joined the bandwagon is PepsiCo.

PepsiCo is launching a new version of Gatorade that has been certified organic by the USDA. The new product is devoid of any artificial flavoring and coloring. PepsiCo is releasing the new product to adapt to the growing natural food movement in the United States amongst athletes.

This is not the first time the company has changed ingredients found in Gatorade. In the past, it has removed some ingredients like brominated vegetable oil (BVO) after the company has been criticized online for using a questionable ingredient. However, this time, PepsiCo will launch organic Gatorade as a new product line with a higher price than traditional Gatorade.

Beverage Companies Like PepsiCo Must Give Consumers the Option

Gatorade controls 70% of the sports drink market, but it faces pressure from newcomers like coconut water which is favored by many people. Moreover, the organic food industry has increased its sales to $43.3 billion in 2015 which is equal to 11% of the total consumer food and beverages sales.

It took the company two years of research before it could launch the new line of products. Today, the company released different flavors of organic Gatorade such as lemon, mixed berry, and strawberry in Kroger for the initial beverage launch. Gatorade’s senior vice president Brett O’ Brien noted that the company aims to expand the distribution of the product to many natural convenience stores as well as select groceries.

Ordinary consumers are not the only ones who prefer to drink organic beverages. Athletes, who are the biggest consumers of Gatorade, want to go organic. According to the survey conducted by Gatorade, 12% of athletes show interest in buying organic products.

Revamping Gatorade to an all-natural product means that the company had to shed all artificial ingredients and refine its manufacturing practices. One of the major concerns from consumers is a change in taste because of the significant changes in ingredients.  PepsiCo assures its current customers that the taste will remain the same without sacrificing the nutritional value.

This bold move is not only observed in PepsiCo. Other companies have also shifted and joined the natural movement. For instance, General Mills has stopped using artificial ingredients in some of its cereal products while Kraft Heinz Co. released an organic version of its fruit juices.

While the product is sold at $0.50 more than the non-organic equivalent, the company is still confident that people will patronize the product because of its organic claim. After all, many consumers are now after organic products, and this is what the new Gatorade is all about.

Inspired by bloomberg.com

Nielsen Says Consumers Are Now Ingredient Inspectors

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With the advent of healthy living and clean eating, more people all over the world now practice due diligence when it comes to their food. In the recent Nielsen’s Global Health and Ingredient-Sentiment Survey, 70% of the respondents said that they make dietary choices to avoid health problems like diabetes, high blood pressure, and obesity. Nielsen has nicknamed these consumers the “ingredient inspectors.”

 

People Are Willing to Pay More for Healthy Foods

Around 68% of the respondents surveyed agreed that they are willing to pay more for healthy food and beverages. This was supported by U.S. retail sales data which indicated that the sales of health and wellness products are outpacing other types of fast-moving consumer goods.

According to Director Andrew Mandzy from Neilsen’s Strategic Health and Wellness Insights group, most consumers want to eat healthily. But they need the commitment from food manufacturers to create products that are made from simple and clean ingredients. Consumers depend on food companies to develop “better-for-you” products that are still convenient for their busy lifestyles.

 

Reasons for The Rise in Ingredient Inspectors

So why is there a rising trend in the food and wellness industry? Perhaps one of the reasons is food sensitivity or intolerance. The same survey conducted by Neilsen indicated that 36% of the respondents revealed that they opted for healthy foods because they are suffering from allergies or live with someone who does. The rise of lactose intolerance and seafood allergies was cited by 12% of the respondents.

Aside from food allergies, many consumers are actively excluding several ingredients from their diets. This motivation to eliminate certain foods can be brought about by religious influences or just small lifestyle decisions. Regardless, 64% of the respondents follow diets that prohibit certain foods or ingredients. For instance, 84% of the African and Middle Eastern respondents reveal that they follow a special diet as cited by their religion.  Respondents from Asia-Pacific scored 72% on the survey indicating that they support it for lifestyle and religious purposes. Most of them adhered to a vegetarian diet as reflective of their beliefs. Only 44%  of people living in North America and Europe cited motivation from religion to exclude ingredients in their food.

 

In the global survey, it was indicated that sugar is the most common ingredient that is eliminated by 31% of the respondents. Others limit their intake of carbohydrates and sodium for health reasons. Many of the interviewees are well aware of the effects caused by the foods they eat. In fact, 75% of people are anxious about the long-term impacts of incorporating synthetic ingredients into their food. Most of the respondents avoid foods that contain preservatives, coloring, and artificial flavors.

Consumers are demanding better food, and it’s up to food companies to supply this growing demand. It’s up to food companies to capitalize on the new opportunity and win customers with new healthy options.

Inspired by nielsen.com

Developer Creates More Visual Food Data With Interactive App

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More consumers are reading food labels than ever before. Customers expect packaged foods to contain the appropriate and promised ingredients. A developer has reinvented food data by launching a new web app, Sage Project. Co-founded by Sam Slover and backed by the FDA, the Sage Project is an online platform that gives food data and labels a new visual understanding of what we are eating.

 

The Sage Project

The project deconstructs thousands of food products–both fresh and packaged–into a personalized, interactive platform that contains necessary information you would find in conventional food labels. The information accessed with this app includes nutrients, calories, allergens, vitamins, and ingredients. But aside from providing food data, the developer wanted to communicate the nutritional content and what it means in the context of the health of an individual. The app also contains information on how it affects the fitness goals and activity levels of a person.

The app itemizes all the ingredients regarding weight in a list. While it is straightforward enough, the developer also ensured that the ingredients and nutrients also change depending on the serving size. This gives consumers a clear idea of how much of a particular ingredient or nutrient they are getting from the food in a specific amount.


Why People Are Not Reading Food Labels

There is a big reason why most consumers do not read food labels. While it takes some time getting used to reading food labels, conventional food labels are downright boring to look at. In a study conducted by researchers from the University of Minnesota, they revealed that one of the biggest reasons why people are not looking at labels is because they do not have strong visuals.

To solve this problem, the Sage Project deconstructed the traditional food label into an infographic. A list of the five most abundant nutrients of the food product is located at the top of the page, while an analysis of the nutritional content is found beneath it.

The app also features the types of exercises needed to burn off a particular food item when eaten; while an annotated list of ingredients including allergens is found in the lower part of the screen. Since most of the consumers are not familiar with some of the ingredients used in making a product, there are information icons beside each ingredient that you can scroll through to understand that particular ingredient better.

 

The Drawbacks to The Sage Project Food Data

The Sage Project provides a lot of information, which is one of its drawbacks. Some people just want their food labels to be straightforward. With so much information, some people may find the entire app overwhelming. However, the visual appeal of the data makes it easy to comprehend for the more data savvy generation, millennials.

 

According to Angela Lemond from the Academy of Nutrition and Dietetics, consumers might experience information overload when using this app. But nevertheless, this app can be customized to fit any customers’ dietary restrictions as well as health goals. What matters is that this app can help a lot of people make the right health decisions when it comes to their food.

Inspired by wired.com

New Research: Food Shopping Habits of Millennials

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The food landscape is ever changing, and so does the behavior of people. Watershed Communications, a national brand strategy agency, conducted a study regarding the food shopping habits of Millennials. The participants, aged 18 to 35 years old, were asked to describe a food brand that they found authentic. They also had to answer questions related to their food shopping habits.

Millennials are considered the most highly engaged shoppers in all demographics. They are also the ones who have more shopping demands and higher capacities. With this study, companies will be able to understand the food shopping habits of Millennials so that they can apply the information in developing new products to meet their desires.

Food Shopping Habits Among Millennials Shows Branding Wins

Studies have found out that 84% of millennials can describe a particular brand or product that they have just discovered. They learn about brands by reading magazines, but they are keen on finding new brands through the internet. Once they have heard of a particular brand, 61% of millennials will share the information with their friends, family, and acquaintances while 63% plan to buy the product.

Millennials are consistent with the brands and products that they use. According to US food analyst Alexia Howard from the Stanford C. Bernstein, most millennials opt for products that are authentic, simple and consistent.

Millennials habits food shopping

The Need for Authenticity

Millennials have a constant need for authenticity in their products. Authenticity of a brand can be difficult to define, but five characteristics determine the authenticity of a particular product as follows:

  • The use of clean ingredients: Clean ingredients refer to ingredients that are real, natural, organic, and fresh. Clean ingredients are expected and demanded by millennials to ensure that safety and quality of the product that they are buying.
  • High-quality products: Quality products use top-of-the-line ingredients. Quality food products should also have great flavor.
  • True to its mission:  Authentic brands should stay true to its mission. They should stick to their claims.
  • Culturally accurate: A lot of millennials are exposed to global brands, but many of them feel that brands that honor their cultural heritage are more authentic than those that try to appeal to a market audience that are thousands of miles away from them.
  • Transparent: Transparency is imperative in defining the authenticity of products. Transparency divulges the origin of the product and the processes that it has to go through before landing on your table.

Millennials make decisions instantaneously. They are also the most influential. For instance, a 35-year-old mother can make decisions for her children to purchase a particularly healthy snack or she can encourage her parents to buy a product that she has already tried and tested.  It is, therefore, necessary for companies to use this information to create products and a marketing strategy to attract them.

Inspired by businesswire.com

 

Baby Boomers Want More Clean Label Products

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Clean label is a new term used in the food manufacturing industry to depict food as only using simple and natural ingredients. The trend was expected to appeal to the younger consumers, but clean label products surprisingly appeal to the baby boomers too.

Baby boomers or those who belong in their fifties are the ones who readily patronize baby boomers. According to Dr. Elizabeth Sloan, president of the Sloan Trends, Inc., this particular demographic has both the time and money to buy clean label products.

Why Does It Appeal to The Boomers?

baby boomer clean label products real ingredientsConsumers have different reasons for why they opt for products with such labels. Younger people look for products that are all-natural, gluten-free, and organic. Baby boomers have an even simpler reason, and that is to avoid artificial additives in their products. There is an increasing interest for products with clean labels among baby boomers as this age group is starting to experience many health setbacks. The need for clean and natural food is essential to maintain good health for all ages.

In the research conducted by Sloan Trends, they investigated different products with clean labels and the age groups that patronize them. A whopping 76% of the correspondents who are 65 and above opt for products with clean labels for health reasons while contributors who are 50 to 64 gave a higher value for health at 75%.

The Domino Effect of Clean Label Products

There is a domino effect on this buying trend among older consumers. The report from the Organic Trade Association showed that the food sales of organic products in the United States rose to 11% in 2014 which is equated to $35.9 billion. Moreover, one-third of the consumers opts for organic products because they know that the products are all-natural and do not contain GMOs. Many consumers are confused when differentiating organic, non-GMO and naturally-flavored. For instance, a strawberry shortcake may not contain real strawberries but are just naturally flavored with strawberries.

The thing is, while clean labeling a buzzword among many consumers, it remains a very complicated topic that needs to be defined by the experts. The Food and Drug Administration coupled with the U.S. Department of Agriculture should work hand in hand to make it easier for consumers to understand the new labeling as well as the food that they are buying.

After all, clean labeling boils down to one thing: avoidance of artificial additives. Whether you are a boomer or millennial, people want real food made with real ingredients.

Inspired by foodbusinessnews.net

Flexitarians: A Food Manufacturer’s New Best Friend

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American consumers are now opting to eat less meat in favor for plant-based protein sources like nuts, beans, and jackfruit.  Dubbed as “flexitarians” or the flexitarian diet, this has sparked a new trend in the market for products that feature meaty texture and flavors minus the meat. Around 38% of Americans claim that they have at least one meatless day in a week. So why are they gaining traction? While vegans and vegetarians are becoming increasingly popular, there are more flexitarians and they have a high demand for plant-based protein snacks and meals.

The Rise of the Flexitarians                                                       

There is an increasing number of people whose diets lean towards plant-based foods. In the United States alone, more than 120 million people claim that they follow the flexitarian diet.  This is a tremendous market opportunity that is twice as large as the domestic vegan and vegetarian markets. Also called as part-time vegetarians, flexitarians have influenced many food manufacturing companies to develop new products that will appeal not only for the flexitarians but also to vegetarians and vegans.

The Effect of the Flexitarian Diet

The rise of consumers who follow the flexitarian diet has also increased the demand for food manufacturers to create alternative plant-based proteins. According to Lu Ann Williams from Innova, these alternative products are becoming more sophisticated over time. Gone are the days when people can only opt for soy and tofu as alternative protein sources. NutriFusion in particularl offers a variety of plant-based protein options for food manufacturers including potato, pea, cranberry, and hemp.

made good products grandfusion vegetables vitaminsAside from creating alternative protein sources, many food manufacturers are also joining the bandwagon of free-from foods. Free-from foods are those that do not contain a particular detrimental ingredient. These include gluten-free, dairy-free and allergen-free foods. Many food manufacturers produce these specialty food products for flexitarian consumers who suffer from certain conditions that can be triggered by the presence of “detrimental” foods.

The rise of the flexitarian diet has led many food manufacturing companies to launch new products. The number of launches that feature vegetarian claims has increased by more than 60% from 2011 to 2015. Products with vegan claims also rose to 4.3% from 2.8% from 2012 to 2014.

Consumer Food Market Trends Colliding 

beyond meat nutrifusion natural vitamins fruit vegetablesIt seems the rise of the flexitarian is due to the collision of the health, nutrition, and wellness trends in the market. The “clean label” and “simple ingredients” trends fall in line with the demand from flexitarians. Many flexitarian consumers are now opting for products that are made from natural ingredients using natural processing methods.

For instance, the use of natural processing methods such as the cold-pressing of juices has also increased by 64% between 2011 and 2015. The same growth has been observed in products like chilled soups. Using natural processing methods has led many food companies to invest in new machinery and equipment to meet the demands of the consumers.

Plant-based protein and ingredients are booming, and it doesn’t look like they are slowing down anytime soon. Food companies should launch more new products that appeal to this 120 million consumer market over the next five years.

Inspired by prnewswire.com