Archive for category: Supplements & Nutraceuticals

Germany Takes Second Lead in Superfood Market Launches

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Consumers all over the world are fueling the growth of superfoods. In new market research released by global agency Mintel, Germany has overtaken Australia and UK regarding the superfood market launches. In the Global New Products Database published by Mintel, it revealed that 9% of new superfood launches in 2017 occurred in Germany.

The UK’s market launches dropped from 9% to 7% from June 2016 until the end of the year. Australia has fallen in third place with only 5% launches since June 2016. While Germany’s love of superfoods has grown, the United States still tops the list. But recent statistics show that the superfood launches in the US fell to 19% this year. This is a far cry lower from last year’s, 25%.

Why Is Germany Shifting to More Superfoods?

According to Katya Witham, senior analyst for Germany at Mintel, noted that the country is moving up in its ranks due to the growing demand of superfoods from consumers. The country is experiencing an increasing number of consumers who are interested in health and wellness.

So, what pushed Germany to have this huge embrace for superfood? The growing aging population and rise of health-related problems have driven the demand for the consumption of healthy superfoods. The country is experiencing health issues like heart disease and obesity. As a result, it is also increasing the health-care costs in the country.

 

Initially, superfood launches in Germany included a simple line of products from quinoa, chia, and amaranth. Recently, there is a growing demand of lesser-known superfoods, and this has led food manufacturers to harness the whole food goodness of other superfood ingredients to boost the quality of their food products.

The Launch of Supergrains

Specifically, Germans are interested in ancient grains such as millet and spelt.  In fact, 30% of German adults aged between 25 and 34 want to consume baked goods that are made from these grains. Also called super grains, spelt and millet appeal to the German market because they are deemed healthier than other grains. These ancient grains have a special place in the German kitchen as people have been using them in a variety of home-baked products over the years.

Today, German food manufacturers have incorporated the supergrains in products like breakfast cereals, energy bars, and snacks to boost the nutritional value of their products. Supergrains contain high amounts of fiber, omega-3 fatty acids, protein, and antioxidants.

The Future of German Superfoods

The agency also forecasted a stable future for superfoods in Germany.  In fact, retail sales of superfoods have amounted to €3.2 billion since 2016. The rising consumption of super grains and other healthy foods will result in a growth of 20% within the next five years.

Inspired by www.mintel.com

Brick-And-Mortar Stores Still Here to Stay Amid Online Grocery Platforms

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In the digital age, people have the luxury of buying whatever they need online. However, there are still many consumers who prefer to shop the traditional way. In a report released by The NPD Group, only 7% of consumers in the United States shop online for their groceries.

The Rise of Online Shopping Platforms

Consumers are not willing to adopt the online grocery shopping platform for various reasons, and one of them is that they want to pick out fresh items by themselves. There remains a significant number of the US population who prefer shopping in brick-and-mortar stores.

 

For instance, Amazon recently purchased the popular grocery chain Whole Foods to extend the online shopping experience of their Amazon Prime members. The acquisition is a big step for online shoppers including young professionals and urban consumers. The NPD Group predicts that online shopping will also expand faster due to the convenience factor appreciated by most shoppers.

In the same study, around 20 million of consumers who are new to online grocery shopping increased their virtual shopping activities, particularly on foods and beverages. The reason for this is that many online groceries offer a variety of unique products that traditional grocery stores do not carry. The diversity of products is another selling point of online grocery stores. But even if this is the case, it is a far cry to the hundreds of millions who still prefer to shop at brick-and-mortar grocery stores.

Why Are Traditional Grocery Stores Still Popular?

So why are brick-and-mortar stores here to stay? While one of the strongest points of online shopping is the convenience, there are still many barriers that they need to address. Aside from the fact that many people want to check and pick out food themselves, many people report the nostalgia that shopping in brick-and-mortar grocery stores provides. Another barrier to shopping for food online is higher costs.

 

Most consumers believe that online stores do not maintain high overhead costs so they can offer lower prices. However,  it is the consumers who have to suffer from paying delivery charges or even membership fees. Consumers, in a nutshell, simply want to get their food fresh and now!

What Should Brick & Mortar Grocery Do?

While online grocery stores are becoming popular among the millennials, brick-and-mortar stores are here to stay. But to improve the shopping experience for their customers, they need to step up their strategies. According to Darren Seifer, industry analyst of the NPD Group, B&Ms need to market unique needs of consumers so that they can compete with online groceries that are offering a wider variety of products that brick-and-mortar stores do not usually carry.  By doing so, they can keep up with the pressure of time and the demands of their customers.

Inspired by www.npd.com

Grocery Stores Carry 40,000 More Items Than They Did in the 1990s

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Grocery stores have been around for a long time. It was only after the post-war era that self-service grocery stores became popular as more people especially women became liberated from domestic duties and started going to work.

Today, grocery stores are big enterprises that provide people whatever their household needs. According to author Michael Ruhlman, the evolution of grocery stores is remarkable. Today, there are more than 38,000 supermarkets across the United States that earn billions of dollars yearly.

The Evolution of Grocery Stores

According to the Food Marketing Institute as well as the US Bureau of Labor Statistics, there is a growing need for grocery stores in the country and this growth is reflected in the rising stock prices of publicly-owned grocery enterprises. Aside from brick-and-mortar stores, grocery stores have also expanded to deliveries to accommodate all types of consumers.

But perhaps the biggest change attributed to the evolution of supermarkets is that modern groceries offer more diversity regarding their products. During the 1990s, there was an average of 7,000 items sold in a grocery store. Now, it has ballooned to over 40,000 items.

The Evolution of Shoppers

Parallel with the development of grocery stores is the evolution of shoppers. Over the past ten years, shoppers’ food preferences have drastically changed. For instance, you would never have been able to find gluten-free food a decade ago. Today, those kinds of products are prevalent and important many people’s diets.

The thing is that the taste and desires of ordinary consumers have also changed through time. It is important to take note that we are now becoming more conscious of our food choices and we tend to read labels more compared to 20 years ago.

Aside from reading food labels, consumers are also opting for organic foods especially if they can afford them. More than 50% of American consumers believe that organic foods are more nutritional than those grown using conventional farming techniques.  To supply the needs of consumers for organic products, many grocery stores also dedicate a section in their store for organic food products.

The Future of Grocery Stores

The future of grocery stores is very predictable. With the rising demand and food preferences of American consumers, grocery stores will get even bigger and will carry more diverse items. But then variety can also have its downsides. Ruhlman believes that too much variety sends consumers the wrong message that they can rely on grocery stores to get instant food instead of learning how to cook their meals from scratch. After all, cooking is an age-old skill everyone must learn, and that ability allows you to control the number of ingredients that you put in your food.

Inspired by www.marketwatch.com

Vitamin Fortification Can Cause Off Flavors in Dairy Milk

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Adding value to food and drinks is a popular trend in the food manufacturing industry. Consumers are demanding food and beverage brands to find ways to improve the nutritional value of their products. In fact, you can see many nutrient fortified products from cereals to soda.

 

The Rise of Value-Added Beverages

This is the reason why there is an increase of probiotic-infused beverages in the market. Examples of probiotic-based drinks that are available to the public include kombucha, flavored yogurts, and even drinking vinegar. But aside from drinks filled with healthy bacteria, another trend is to fortify ordinary drinks with vitamins and minerals. This is the reason why coffee and tea fortified with vitamins have found themselves on many supermarket shelves.

Plant-based milk created from nuts and seeds is also on the rise. These plant-based counterparts are positioned as healthier alternatives to traditional dairy milk.  But for a long time, dairy milk has held on to fortifying milk with vitamins to make it a healthier beverage.

The Problem with Fortified Dairy Milk

The most common vitamins that are added to milk are A and D. In the United States, these vitamins have been added to dairy milk since 1930 to halt the possibility of children developing blindness, cancer, and other vitamin deficiencies. The practice of adding vitamins and minerals to milk has been the standard in making pasteurized milk.

While beverage manufacturers have good intentions in fortifying milk, some consumers are complaining. The vitamin fortification of milk often results to imparting a distinct flavor that consumers mistake for spoilage.

In a study conducted by researchers from the North Carolina State and Cornell University, they found out that water-soluble vitamin concentrates often used in fortifying milk can lead to off flavors. On the other hand, using oil-soluble fortifications often results in no taste difference from unaltered milk. In the same research, test subjects detected a slight difference regarding flavor between enhanced skim milk and unfortified skim milk.

The Implications of The Study

The study revealed that while fortifying milk is a great idea to improve its nutritional value, it is crucial for beverage manufacturers to use the right vitamin concentrates.  Having said this, food manufacturers need to improve their process and invest in solutions that can control the impact of vitamin concentrates on the flavor of the dairy product.  The researchers recommended using less water-soluble vitamins and rely more on oil-soluble vitamins to improve the quality of their milk products.

But this strategy can backfire when it comes to the organic milk niche. Consumers who value natural and unaltered dairy products might find the fortification against their volition, so they opt not to buy them instead. Milk brands need to be clear and transparent about whether their milk is fortified or unfortified. Companies should look for ways to add food based vitamins like GrandFusion. GrandFusion is a concentrated blend of vitamins from fruits and vegetables including vitamins A and D.

Inspired by www.fooddive.com

Probiotic Drinks More Popular Than Ever

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There is an increasing number of health-conscious individuals who prefer to buy products that have more nutritional value than junk foods. As a result, the sales of probiotic drinks increased by 31.2% over the past year based on the data generated by the Chicago-based research company, SPINS.

But what could have led the change of heart to switch from standard sugary drinks to probiotics? Consumers have become increasingly aware of how important it is to maintain a healthy gut for good overall health. On top of that, the natural approach to digestive health is trending. With an increasing number of people opting for healthier drinks, this also pushed beverage manufacturers to find innovative ways to add more nutritional value to their products.

New Niche Created By Probiotic Beverages

Beverage makers are now using botanical ingredients to add natural flavor and nutritional benefits to their drinks. Uncommon ingredients such as lavender, lemongrass, elderberry, and turmeric are being added to intrigue consumers. They have also incorporated probiotics in different bases including dairy, grains, plant-based milk, as well as fruit and vegetable juices.

Some manufacturers have created shelf-stable probiotics that contain billions of live good bacteria that can last longer than traditional probiotics.

Backed by Science 

Good stomach health has always been linked to a better immune system. What resides in the gut is a plethora of microflora that controls the release of hormones and even the body’s metabolism. Probiotic drinks are marketed as healthy drinks that can help in weight loss, depression, and solve allergy problems.

The results of the extensive research involving probiotics have been used by beverage companies to create exceptional drinks. But aside from using probiotics, beverage companies are also interested in using fiber to boost the nutritional value of their products.

For instance, studies have indicated that the use of chicory root can feed the normal microflora bacteria in the gut. According to Carol Lowry, Cargill’s senior food scientist, chicory root can enhance the growth of lactobacillus in the gut thus maintaining the neutral balance of the gut. This is the reason why beverage manufacturers are also looking into using chicory roots in making powdered beverages, flavored water, smoothies, and juices. Even coffee has been seen as a marketable product that may possibly contain chicory roots.

While the industry of probiotics has huge market potential, food scientists are still facing a huge obstacle to creating beverages that are still tasty and can withstand higher temperature without destabilizing its structure.

Inspired by www.bevindustry.com

PowerBar Brand Adds Plant-Based Snack Bars

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PowerBar, a snack bar company, based in California decided to meet the demands of vegans, vegetarians, and anyone who is into clean eating by producing their line of plant-based snack bars as part of their Clean Start campaign. This campaign involves the use of cleaner ingredients and labeling to create transparent, nutritious, and better-tasting products.

According to Doug Cornille, Vice President of Marketing, the plant-based snacks are made from plant proteins and are designed primarily for sports players. Research and marketing have developed the snack bars for athletes who have health restrictions, but these snack bars are perfect for people from all walks of life. The company also produced this line of plant-based snacks to diversify their portfolio and have a wider reach in the market.

PowerBar’s Plant-Based Protein Sources

Most people who are not aware of the plant-based movement are confused about plant-based protein sources. Protein, contrary to what most people think, is not restrictively sourced from animal products. They can be obtained from nuts, seeds, grains, and even green leafy vegetables. The company can make snack bars from peanuts, almonds, and cashew nuts.

The snack bars also contain ample amount of fiber to aid in proper digestion. The company also made sure that the snack bar is ideal for people with other food restrictions. In fact, it is gluten, soy, and dairy free. This makes it a perfect snack bar for individuals who suffer from celiac disease.

The Future of Plant-Based Snack Bars

As part of the Clean Start campaign, the company makes sure that all ingredients used are organic and GMO-free.  They also use natural sweeteners to make the snack bars more appealing without using sugar. Healthy nut fats and butter are also used not only to enhance the flavor profile of the product but also to boost its nutritional value.

While food scientists have only tapped a few ingredients to make the protein snack bars, it is expected in the future that they will also try other ingredients like vegetables, fruits, root crops, and even leafy greens to make better versions of the popular snack bars. The future of this particular niche is to produce snack bars that are not only delicious and nutritious but also less calorie dense and more fiber content.

The future of plant-based snack bars is auspicious. Market studies have shown that the plant-based niche of the snack industry is still new and since many people are adopting the vegan and vegetarian lifestyle, brands can expect an increase in the demand for healthy and high-performing snacks bars in the future.

Inspired by www.prnewswire.com

DanoneWave Quietly Reduces Fat and Sugar

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The French multinational food manufacturing giant, DanonWave, is famous for making nutrient-dense foods with less fat and sugar. The company is known for its brands such as Danimals, Dannon, Activia yogurt, and newly acquired plant-based brands like Vega and Silk. While it is one of the main players in the health food industry, the company has recently announced that it will embark on improving its products by boosting their fiber, protein, Vitamin D, and decreasing the fat & sugar. This announcement was part of the company’s recent commitment to address childhood obesity.

According to Philippe Caradec, Vice President of Corporate Affairs, the company values its mission to bring healthy food to as many people as they can reach all over the world.

Why Are Companies Like DanoneWave Redeveloping Their Portfolio?

Most of the giant food and beverage manufacturers have been redeveloping their portfolio by creating new product formulations or acquiring healthy startups. But, what is the reason behind this? It is imperative for big food companies to meet the changing demands of their consumers.

It is important to take note that more consumers are opting for healthier foods, so changing the brand portfolio is a good strategy to draw in more future customers. Examples of food companies that have revamped their portfolio by releasing a healthy line of products include Coca-Cola, PepsiCo, and Campbell Soup.

But what about DanoneWave? The company embarked on its robust portfolio when it acquired the great beverage-maker WhiteWave in a $10.4 billion deal. The company has been making snack bars, cookies, and more over the past few decades. While it has been treading on the health food path longer than other companies, DanoneWave lacks variety, so the company is betting on products like bottled waters, baby foods, and yogurts.

Millennials: The New Market

 

While some companies embark on revamping their portfolio as part of a bandwagon or fad, DanoneWave sees another potential. In fact, they are revamping their product line because they see the Millennials as the most promising of all target markets.

The biggest driver of the health food niche are millennials who are now becoming more aware of lifestyle diseases and healthy options. But while marketing to the millennials is needed by most health food companies, it is quite challenging to convince millennials to buy products by just claiming that they are sugar-free or fat-free. Marketing products as such can also lead to consumers to think that they are consuming products that are less appealing. Millennial consumers are becoming wiser every day, so companies like DanoneWave have to include clean labeling and transparency in their products by including honest nutritional labels on each of their products.

The future of health food companies like DanoneWave lies in the hands of meticulous consumers. This is the reason why it is so important to use different strategies such as reformulating their products, revamping their brand, acquiring healthy food start-ups, and also using transparent clean labels.

Inspired by fortune.com

How Brands Can Compete with Amazon’s CPG Subscriptions

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With technology at our fingertips, consumers all over the globe have experienced many conveniences–one in the form of online shopping. In a study conducted a few years ago, it noted that the e-commerce of consumer packaged goods rose by 42%. In fact, Amazon accounted for more than 20% of all the CPG growth.

Scott Galloway from New York University said that Amazon is dominating the retail industry and is undoubtedly evolving. But what makes Amazon the epitome of the retail industry? Simply put, the company delivers its products fast and simple. The brown packaging contains exactly what the clients ordered – no frills and flair involved.

The preference of people to get consumer packaged goods from Amazon has caused fierce competition for the smaller retailers. Although this may spell impending doom to Amazon’s competitors, there are still ways to compete with Amazon, and the secret lies heavily on owning the contact information of their customers so they can build their database and analyze purchase behavior analysis. Creating a competitive subscription service is the key, but, how can this be done?

Create A Dedicated Subscriptions Channel

Dedicate a subscription channel that can handle and connect with consumers. Customer service is critical. For bigger companies, look for a younger yet promising employee who exhibits management skills and IT skills to man the subscription channel. By doing so, they will be in-charge of making real-time reactions to different market conditions and make decisions based on what the customer wants and needs.

 

Do A Trial Run

Before introducing a subscription, it is important to perform a trial run. The test size for the trial run should be sizable enough that it is statistically significant. It should be marketed on different digital channels and must be done in different variations so that management can determine the best product offering. This means that the trial should involve many (even hundreds) of subscription orders to be able to pinpoint which one justifies the cost per order and the scalability of the campaign. Once the specific subscription has been identified, it is important to do continuous testing as digital channels are always evolving, what works today might not work tomorrow.

Partner with A Subscription-Focused Vendor

Launching a subscriptions campaign requires constant research. Smaller companies can take advantage of hiring technology vendors to create programs for e-commerce, analytics, as well as customer service. While creating a program in-house is easy, the systems necessarily do not communicate with one another and they are not scalable. Partnering with a vendor can provide experienced people who can work on a fully integrated solution, resulting in a faster transaction, better customer experience, and accurate data. Smaller companies can benefit from subscription channels but having their own in-house team to manage can be difficult, so partnering with experienced vendors provides the best solution.

Inspired by www.fooddive.com