Growing Demand for Organic Ingredients Leads to Supply Challenges

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The need for fresh ingredients by consumers has led many farmers to go into organic farming. According to data provided by the USDA, the number of organic farmers in the US has increased by almost 300% since 2002. This growth is to meet the demands of consumers who prefer organic foods more than those grown in conventional methods.

Why Is It Difficult to Completely Go Organic?

Although there is a rapid increase of organic operators in the country, it is crucial to take note that only about 0.7% of the total operable farms within the country are classified as organic.  Many farmers pointed out that the main reason why converting their conventional farmland to organic is difficult because it is expensive as well as time-consuming. In general, farmers have to wait for at least three years to be able to convert their farms. Unfortunately, during the first year of turning their land using organic practices, the produce that they grow is not sold at organic prices. Meaning, they are still paid cheap even when they are spending more on organic practices. This is leading to the supply challenges in the market.

Solutions to The Supply Challenge

To solve the supply challenges, farmers are given several incentives to make the necessary switch. These include the Environmental Quality Incentives Program (EQIP) that offers first-timer organic operators the right technical assistance to grow food the organic way. But, it is not only the government that provides support. Even food manufacturers, as well as retailers, have supported and implemented programs just to encourage farmers to boost their harvest. In fact, companies like Nature’s Path Foods, Whole Foods, Organic Valley, and Stonyfield Farms have provided grants to organic farmers to boost their production.

While organic farmers can supply the needs of food retailers and manufacturers, another problem is where to source specialty ingredients that are not grown in the United States. The solution proposed by the government was to get into digital platforms like Mercaris Auction Platform or GreenTrade.net to trade tons of organic products into the market.

All stakeholders are doing their best to provide the resources needed by the consumers. For instance, the Organic Trade Association was set up to provide suppliers and manufacturers the necessary information about their produce such as where to source their supplies, market data, and real-time pricing.

On the other hand, retailers like restaurants and grocery stores have also worked closely with organic farm operators to give them the idea of how much they will need to sustain their businesses. For instance, retail giant Walmart has worked with local organic farmers by giving them the outline of how much they need for the entire year so that the farmers can strategize on how they will be able to deliver the demands and needs of the end users.

The truth of the matter is that, while organic farming is prevalent, the number of organic operators is still not enough to be able to create a sustainable supply of products to the retailers and consumer product companies.

Inspired by www.fooddive.com/news

Effective Packaging Design Is Key To A Successful Start-Up Brand

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In today’s social media-driven world, the competition of food and beverage brands can be tough. No longer should companies settle on traditional commercials on TV, print ads, and radio. Brands are now placing importance on effective communication through design.

Packaging design is an important element in getting a particular brand into people’s minds and hearts. An effective packaging design can catch the attention of the consumers encouraging them to engage and buy new products.

Why Is Effective Packaging Design Beneficial?

Packaging design is beneficial for start-up companies, and they don’t need to enlist the help of a million-dollar advertising firm to get their message across their clients. Never underestimate the power of an effective packaging design because coupled with social media advertising, it can catch the attention of people from around the globe.

Startup companies who wish to make their brand well-known should seek the help of an active brand designer. Startups need to communicate with the brand designer to incorporate the potential of the product in the branding and also make it appealing to its intended target market. Knowing the target market is crucial in designing the packaging that will conform to the preferences of the targeted consumers.

For instance, the company Bear produces kid’s snacks, and it went to great lengths to create an effective packaging design while incorporating collectible cards and codes to make it look fun for children. By the end of 2015, the company became the largest children’s fruit snack company in the United Kingdom.

 

Adding Personality Is Important In Packaging

Every brand needs to show people the company’s unique personality. It is important to take note that packaging is the unspoken way of making introductions. A package design that is unpretentious is considered more appealing for everyone. In most cases, using humor and wit is very useful in branding, which can be evident in the logo, type of fonts used and other elements used in the brand. It is important to take note that none of this wit and humor will be useful if the product isn’t also good. Simply put, effective branding should conform to the quality of the product being represented by the packaging.

Effective branding due to package design always works best if the product is made out of passion. If a product is conceived out of passion, everyone–the creator, brand designer, and consumers–will all believe in the product that is being promoted. Without passion, startup companies find it hard to sell their products even if the packaging designs are appealing.

The success of a startup relies so much on the brand designer and how he or she can turn words and visions into reality–a real brand. A brand designer does not only understand the market, but they also know the product and the company. With an effective packaging design, everything is balanced.

Inspired by www.foodbev.com

Clean Labels: From Trend To Movement

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Today’s consumer is more interested in eating fresher and cleaner foods. Industry experts have noticed that many food companies have adopted the movement for cleaner foods.  Companies like Campbell’s Soup and PepsiCo have implemented food transparency through clean labeling. There is also a rise in food start-ups applying clean labels with their new products.

Chief Marketing and Innovation Officer, Suzanne Ginestro from Campbell Soup, noted that modern consumers are moving towards cleaner labels, transparency, as well as opting for products that are healthier and have ingredients that are easier to understand. People want transparency on all kinds of products from household cleaning supplies to electronics. Consumers just want to know what is inside the products they are using.

Why Transparency And Clean Labeling? 

So why are people so particular about clean labeling and transparency? Becky Frankiewicz from Quaker Foods North America indicated that consumers want to have more choices and this can only be achieved if they know the ingredients of the products they are buying.

While clean labels promote companies to indicate all ingredients on their labels, it does not mean that they should only focus on healthy ingredients yet. Companies have adopted the clean label movement to prove that they care about their consumers and their products. It also enables consumers to make informed decisions about their purchases.

Some food manufacturers still include ingredients that will make their products more palatable and that means using fat and sugar. The clean label is there to educate consumers about the types of ingredients utilized in the product. It is all about giving customers access to different food choices.

Clean Label: Trend or Movement?

What started out as a fad has become a movement that will surely stay. Today, many food startups have found success in introducing healthier foods and beverages to consumers. Large food companies are also capitalizing on the opportunity by introducing healthier product choices to their customers. Executives from large food manufacturing companies noted that the clean label movement had pushed brands to go back to their old business practices.

For instance, the 140-year old company Quaker Foods first started using fresh ingredients and developed ways to package their products so that it is easier for the consumers who live in urban places to enjoy healthy foods—similar to those living on the farm.

From trend to movement, clean labels are here to stay. Brands that focus on delivering healthy food with simple ingredients will win, plain and simple. Don’t be surprised to see more acquisitions of small, successful brands over the next five years as large companies like PepsiCo try to a secure a competitive advantage in this evolving space.

Inspired by fortune.com

Mintel’s 2017 Global Food and Drink Industry Trends

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Now that 2016 is over, it’s time to look at the food and beverage trends shaping up to make an impact in 2017. Mintel recently announced the top six trends that they believe will see fast growth this year. Check out their predictions below!

1. Traditional Processing

While our food today is made using modern processing, many people are now opting for foods made by conventional processing techniques. Companies are looking at using age-old formulation as well as classic flavors. People tend to view these foods as safe, reliable, and recognizable. This trend can be attributed to the recent rise of ancient recipes, cooking practices, and traditions that have resurfaced to incite the feeling of familiarity in the kitchen and food.

2. Plant-Based Formulation

Plant-based diets are becoming more popular, and Mintel expects this to be a huge area for growth in the industry. As a result, the food and drink industry is developing more products that emphasize using plant-based ingredients. This trend will not only be perfect for vegans and vegetarians but also flexitarians. We predict there will be an increased consumption of vegetables, fruits, seeds, nuts, grains and other botanical products.

3. Zero Food Waste

The year 2017 will be the year of the environment. But how does that relate to food? The answer is zero food waste. Today, many food manufacturers and restaurant owners want to address the growing problem of food waste. There will be an increasing awareness among people to use “ugly” produce as well as repurposing food ingredients to avoid wastage.

4. Night Shift Market

In today’s fast-paced life, many people have to work at night when we are all asleep. This lifestyle creates a new market niche for food manufacturers. Companies are developing products that are solely dedicated to nighttime workers as well as those who stay up late at night. Products such as teas made from lavender and chamomile are now introduced to night owls so that they can relax better just before their bedtime.

5. Healthy Food for Everyone

In the past years, only people from the higher income brackets could afford to eat healthily. Fortunately, 2017 will be the year when even lower-income consumers can afford to eat healthily.  2016 helped drive this change with companies like Annie’s leading the Everybunny campaign and other organizations lobbying for subsidized fruits and vegetables to keep prices low.

6. Convenient Healthy Foods

Convenience has been driving change in food for over 30 years, but the new opportunity is in creating fast, healthy foods. People want to eat food conveniently so many food and drink manufacturers are developing new ways to deliver their products faster without compromising the taste and nutritional content.

If you have noticed, the trends of 2017 revolve around the idea of eating convenient, healthy, and reliable foods. It’s not that surprising if you’ve watched the market over the past few years. It will be interesting to see which companies take advantage of these growth opportunities in 2017 and beyond.

Inspired by www.mintel.com

Vegetable Powders: A Game Changer in The Healthy Food Movement

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The whole food movement has increased people’s consumption of fruits and vegetables. This trend has also led food producers to offer fruit and vegetable powders that are used to flavor and enhance food and beverages. Dehydrated vegetable and fruit powders are more practical than their fresh counterparts for food manufacturing. They have a longer shelf life and some powders like NutriFusion are packed with essential vitamins and minerals.
While powders are high in demand, the problem is that most of them exist with bland flavors and washed out colors. This is caused by poor extraction, processing, and storage. The developing food powder industry uses different drying techniques to produce vibrant fruit and vegetable powders.

vegetable powder fruit powderSensient Natural Ingredients, a company in Turlock in California, manufactures fruit and vegetable powders. They use methods like air, vacuum, and freeze drying. The drying technique employed depends on the types of ingredients used. For instance, air drying is utilized to dry herbs while vacuum drying is used to retain more nutrients from the dried food.

Challenges in Making Whole Food Powders

Drying fruits and vegetables is not a walk in the park. Several types of fresh fruit and vegetables can be powdered, and manufacturers face a few obstacles. For instance, high sugary foods are difficult to process because they stick to everything. Moreover, the sugar found in sweet fruits can be difficult to deal with in high-temperature drying because they burn even from the start. Drying leafy greens and herbs are also very delicate to handle and are more at risk to spoilage or decay.

The problems encountered during the drying process drive manufacturers to optimize their harvest timing by processing the materials within a short yet specified time frame to prevent spoilage and decay. They also use technology like infrared light to kill pathogens and preserve colors, nutrients, and texture.

The Future of Fruit and Vegetable Powders

fruit powders vegetable powders greens powders vitamins mineralsOver the next ten years, we will see a lot of fruits and vegetables turned into powder for nutrition, flavor, and texture in our packaged foods. One of the reasons why this trend will continue to flourish is because of the convenience. Whole food powders like NutriFusion tend to last for a long time without losing their nutritional value. They can be used in augmenting the nutrient content of the food that you are cooking or can be utilized as emergency food.

Astronauts will not be the only ones to benefit from powdered fruits and vegetables. The industry is already buzzing with wild dried fruits and vegetables like powdered coconut water, watermelon juice powder, tart cherry, and shiitake mushroom powder. NutriFusion separates itself from the pack by delivering blends of fresh fruit and veggies for optimal nutrition content. In many of our blends, you will find apple, blueberry, cherry, cranberry, shiitake mushroom, broccoli, tomato, carrot, orange, spinach, beet, and strawberry. The combination of those fruits and vegetables can deliver up to 12 different plant-based vitamins for food and beverage brands.

Food manufacturers also see an increasing trend in superfoods being turned to powder. Ingredients like acai berry, Camu Camu, cranberry, goji berry, and acerola will be mainstream in the future. The challenge here for food scientists is how to maintain a high ORAC value (an indicator of antioxidant capacity) despite the drying process.

Source:  http://www.wholefoodsmagazine.com/suppliers/features-suppliers/powder-play/

NutriFusion Fruit and Vegetable Powders Nutritional Claims FDA

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.

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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

Small Rivals Assaulting Big CPG Brands for Market Dominance

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Gone are the days when owners of traditional consumer packaged goods (CPG) brands can sleep well at night. With small brands gaining traction today, brands like Nestle, Procter & Gamble, General Mills and Unilever are experiencing problems they didn’t see coming. The rise and dominance of small brands between 2011 and 2015 caused large conglomerate food companies to lose nearly 3% of their market share in the United States.  In the study conducted by data provider IRI and Boston Consulting Group, emerging local competitors are now being considered as threats to big multinational companies.

The Rise of Smaller Competitors

Why are large CPG companies suffering from decline? Marketing experts believe that size has something to do with it. One of the challenges of giant companies is their centralized decision-making processes and their consolidation of manufacturing processes. With the popularity of the brands themselves, companies have to spend millions of dollars in advertising and shelf placements at retailers.

On the other hand, advertising is also changing through time. TV advertising is no longer effective according to Nik Modi from RBC Capital Markets. With the rise and relevance of social media, it has provided an avenue for small brands to market their products to many people. In fact, hundreds of small brands have benefited from the rise of e-commerce as online sales have increased over the past five years.

Fast-Changing Market for CPG Brands

Many multinational giants find it hard to keep up with the fast-changing market trends. For instance, many people tend to patronize local companies producing essential products.  Ali Dibadj of Sanford C. Bernstein research firm pointed out that in many developing countries, middle-income consumers assume that Western products are superior therefore expensive; instead, they opt for local products that are cheaper but are just as effective.

In China, for instance, the sale of a local toothpaste manufacturer Yunnan Baiyao Group rose from 10% to 45% which indicated that the small local brands are being patronized instead of the branded consumer packaged goods (CPG).

Another interesting thing about small brands is that most consumers trust small brands more than the established ones. In the survey conducted by consultancy firm Deloitte, 10% of the respondents said that they are willing to pay more for the “craft” or “artisan” version of products than the mass-produced ones from large enterprises. This is one of the reasons why there is a rise of small companies that market the idea of “artisan,” “craft,” and “organic.”

Small Brands Remain Competitive

The market situation has provided an excellent opportunity for smaller brands.  These brands have contributed to the introduction of new products in the market. In America, for instance, more than 4,000 craft brewers have emerged over the last ten years as well as thousands of small brands using real, organic, and non-GMO ingredients.

What are big companies doing to address the problem? Aside from merging with other big companies to create better versions of their products, many are also backing smaller rivals. For instance, companies like Campbell Soup and Hain Celestial have helped small consumer packaged goods companies to manufacture organic baby foods.

The market remains strong for giant CPG companies, but they will have to pay closer attention to their nimbler, smaller counterparts. We will see more and more companies acquire small brands to fill their voids in market trends.

Inspired by economist.com

Fortified Premixes: Fundamental Considerations

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Research by the International Food Information Council Foundation on Food and Health revealed that 47% consumers prefer food with added nutrients. Consumers are now more aware of the food they eat. They read labels carefully and are informed enough to know the difference between what’s right for them and what isn’t. The massive demand for nutrient-rich food with added vitamins and minerals has given way to food fortification.

Food Fortification is the process of incorporating essential vitamins and minerals such as folic acid, iodine, vitamin A and iron into food products. These are blended into powdered premixes which are then added to products.

Fortified food was a breakthrough for disease elimination. Fortification is now used for filling nutrition gaps and balancing nutrient loss in the storing process of goods. Manufacturers are on the lookout for partners to launch their own fortified premixes and give their products additional features. However, it’s the process of formulating fortified premixes that pose the challenge. Here are the aspects that need to be considered regarding fortified premixes:

  • The fortification process relies heavily on the kind of food product that’s being fortified
  • Manufacturers need to chart a profile for the desired nutritional value.
  • The size of serving and shelf life must be considered.
  • Manufacturers will have to change the entire packaging and present the product as a new brand before the consumers.
  • The cycle of production will go through a significant change.
  • Cost-effectiveness is a major aspect of consideration for manufacturers.

The Desired Amount of Nutrients in Fortified Premixes

Manufacturers will have to chalk down the quantities of natural vitamins and other nutrients that are already present in the food and then decide what kind of nutrients must be added and in what quantities so as to meet the claim the product is looking to make. This is a critical decision when using GrandFusion® products in your premixes. GrandFusion® is heavily concentrated nutrients from whole fruits and vegetables. 112 mg of the GrandFusion® fruit mix is equivalent to 25% daily value in 6 essential vitamins including vitamin A, vitamin C, vitamin D, vitamin E, vitamin B1, and vitamin B6.

Loss of Nutrients in Food Processing

To hold true to the labels, formulators will have to ensure that nutrient loss in the production processes and treatment of the product is calculated in advance and taken into consideration while creating the formula for the premixes. Nutrient loss in processing has caused problems for formulators and food manufacturers for a long a time. NutriFusion® is the solution to this problem. Our stabilized nutrients are capable of withstanding the intensive heating and cooling of modern day food processing. Our GrandFusion® products also have a minimum two-year shelf life to keep your nutrients stable through distribution and retail.

Adding the Right Elements

Vitamins and minerals that are to be added must blend in with the distinct taste, color, and aroma of the product recipe.

Fortified premixes do nothing to change the texture or taste of the food product. Therefore, manufacturers get to introduce a new product that isn’t very different from other items their brand is known for. But, it will have all the nutritional perks consumers are looking for.

The push for NutriFusion® nutrient fortification is simple: the difference is natural. Our GrandFusion® products are blends of whole fruits and vegetables so that we can deliver complete nutrition in a variety of products. The big difference between NutriFusion® nutrient fortification and synthetic nutrient fortification is bioavailability. Our products have 100% bioavailability versus 10% to 20% bioavailability for synthetic vitamins. Why? Our bodies need complete nutrients from fruits and vegetables to function properly, so we easily absorb these natural vitamins. On the other hand, synthetics are chemical formulations trying to resemble nature, and are bodies do not entirely recognize them. If you are building a non-GMO or Organic food product, please reach out to learn more about our nutrient fortification process. Also, please visit your respective category below to learn more about our products!