Functional Ingredients and Label Claims Continue to Lure Consumers

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According to the latest numbers from Packaged Facts market research, 49% of all U.S. consumers buy nutritional bars, beverages, or both. Food and beverage products using functional ingredients with functions like nutritional support, weight loss, increased energy, and meal replacement were included in their analysis. However, energy drinks, sports drinks, milkshakes, granola bars, and snack bars with no nutritional purpose were excluded from their analysis. The Packaged Facts’ National Online Survey consisted of 2,000 U.S. consumers aged 18 and over.

Convenience is Key to Category Growth

Brands have been positioning their nutritional drinks and bars as convenient, healthy, on-the-go options for the busy American. As a result, sales have skyrocketed over the past five years. The market has hit $8.8 billion in 2016 with an annual growth rate of 9.5% over the past five years. Packaged Facts predicts a bullish future for the two categories with combined sales reaching $13.1 billion by 2021.

Younger generations are key purchasers with highest use rates. Many of the Millennials and Gen-Xers see being busy as a “badge of honor” so these products are essential to maintaining a healthy lifestyle. Packaged Facts found that 57% of all U.S. consumers are drinking nutritional beverages as a meal replacement.

Functional Ingredients: Superfoods and Protein

 

Functional ingredients are booming, and nutritional drinks and bars are using them to enter the market with a unique value proposition. The barriers to entry are low, but gaining significant market share is a different story. High protein content is expected from consumers at this point with 72% saying they look for that feature when purchasing nutritional drinks.

Some nutritional bars and drinks are turning to innovative superfood solutions to increase nutrient support claims. Brands are using products like GrandFusion to enhance their bars and drinks with natural vitamins from up to twelve fruits and vegetables without impacting flavor or texture. Interested in learning more? Click your industry in the navigation and learn more about how GrandFusion could benefit your products.

Inspired by www.nutraingredients-usa.com

Food Scientists Say Clean Labels Have Trade-Offs in Food Safety

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To no surprise, two food safety and nutrition professors at Iowa State University believe there are significant trade-offs in cost and food safety for clean labels. The clean label is one of the most significant trends hitting the food and beverage industry. While there is no clear-cut definition, it is understood that clean label products do not contain additives or preservatives and typically have easy to read ingredients.

Why do Clean Labels Present Issues in Food Safety?

The two food scientists believe that not all food additives and preservatives are bad. Many of those hard-to-pronounce names are used to guard against pathogens and spoiling. While market demand is driving food companies to get rid of these additives, the scientists believe there should be a measured consideration for keeping some of these ingredients. The professors mentioned taking nitrates out of Hotdogs and deli meat as an example since their presence can help prevent clostridium botulinum bacteria.

Professors Ruth MacDonald, Ph.D. and Ruth Litchfield, Ph.D. believes that social media can take a lot of the blame for this hysteria around additives and preservatives. They insist consumers not to believe everything they read on social media and to take a deep dive into any research mentioned in posts.

clean label food safety consumers

How are Clean Labels Costing us More?

Label-readers have become fascinated with the “no high fructose corn syrup”  claim, but they are not looking closely at one is being replaced to sweeten the product. Many times companies are using tapioca syrup which is made from cassava, and typically more expensive. The professors say that the industry is developing all of these “cleaner” syrups like beet syrup, etc. and they are all sugar. They are no better than high-fructose corn syrup.

There seems to be a clear issue with what consumers expect and the reality of ingredients. Consumers want ingredients they understand, they want them cheap, they want them nutritious, they want them safe, and they want them to be beneficial. However, it is almost an impossible feat for food scientists. Consumers are more willing to accept technology in other aspects of their life but have now wholly shifted when it comes to food. It will be interesting to see how this all plays out as consumers become more educated about the science of food.

Inspired by www.fooddive.com

Whole Foods Releases Top 10 Trends to Watch in 2018

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Whole Foods Market, one of leading natural grocery retailers, teamed up with experts to forecast what they believe will be the top 10 trends food in 2018. The seasoned-trend spotters were purchased by Amazon earlier this year, and now have over 100 years of combined experience in product sourcing and studying consumer preferences.

Whole Foods Top Ten Trends in 2018

1. Super Powders

The superfood powders have been gaining traction and will reach new heights next year. They gained market share because they are easy to incorporate into smoothies, nutrition bars, soups, and baked goods. Popular superfood powders include maca root, cacao, ground turmeric, kale, herbs, collagen, and more. Even nutritionally dense powders like GrandFusion are being used to add natural vitamins and minerals to new products.

2. Floral Flavors

Infusing botanical flavors into drinks and snacks will be a huge trend to watch this year. Look for things like lavender lattes and rose-flavored everything. Teas will continue to be huge category using botanicals but be on the lookout for granolas, cocktails, frozen pops, and mineral water.

3. Functional Mushrooms

This could be the hottest trend in 2018, but only time will tell with shoppers. Typically found in dietary supplements, mushrooms use is growing amongst a variety of food and beverage categories. Bottled drinks, coffees, smoothies, teas, and broths will lead the way in 2018.

4. Transparency 2.0

Product transparency is not going anywhere anytime soon. In fact, in 2018, consumers only expect more. They want to know the story of their food from the source to the store. Responsible production and animal welfare will continue to drive a lot of purchases with GMO transparency being important as well.

5. All Plant-Based Everything

The tech world has now met the plant-based world and they have some cool ideas brewing. They are using science to manipulate ingredients and proteins to create crazy dishes like “bleeding” vegan burgers and sushi-grade “not-tuna” from tomatoes. Dairy-free desserts will be a huge trend in 2018 with vegan frosting, brownies, and ice cream making their way to the shelf.

6. Puffed and Popped Snacks

New extrusion methods are paving the way for unique crunch and popped snacks like popped cassava chips and puffed pasta bow ties. Better-for-you snacks will get an upgrade with snacks like lentil crisps, unique veggie straws, and rice crisps joining the snack aisle.

7. Middle East Feast

It’s interesting to see Middle Eastern culinary influences start to catch fire in 2018. Hummus and Pita were taste entry points, but consumers are hungry for more like shakshuka, grilled halloumi, and lamb. Pomegranate, eggplant, chickpeas, and tomato jam will start to pick up more steam in 2018 as well.

8. Tacos Leave Their Shell

Tacos are not only meant for lunch and dinner. In 2018, you will start to see them more at breakfast and in desserts. New kinds of wrappers are showing up like seaweed and grain free options. But don’t worry, classic tacos aren’t going anywhere.

9. Root-to-Stem

Root-to-stem cooking will be one of the leading trends in 2018 as reducing food waste drives the style. The cooking style uses the entire fruit or vegetable including the steams and leaves which are less commonly eating. Recipes including beet-green pesto, broccoli-stem slaw, and pickled watermelon rinds.

10. Cheers to the Other Bubbly

Sparkling beverages are the hot drinks on the block with LaCroix leading the way. But, please don’t call them SODA! New sparkling waters are going plant-based with maple and birch as well as mocktail flavors of grapefruit, lemon, lime, and orange.

Check out Whole Foods in 2018 to try a variety of products hitting on these trends in 2018!

Inspired by media.wholefoodsmarket.com

Consumers are Confused about “non-GMO” and “organic” Labels

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The Meatingplace reported on a new study conducted by researchers at the University of Florida’s Institute of Food and Agricultural Sciences. They found more results pointing to confusion amongst consumers when evaluating “non-GMO” and “organic” labels.

How the Study Worked

Researchers based their findings on a national survey of 1,132 respondents. These people were specifically asked about their willingness to pay more for food labeled as non-GMO or genetically modified. The two products that the researched focused on were a 12-pack of granola bars versus fresh apples. The evaluated how much more respondents would pay for either of these items labeled as “Non-GMO Project Verified” or “USDA Organic.”

Their Findings Showcase Confused Consumers

The team of researchers found that consumers will pay $0.35 more for a 12-pack of granola bars with the “Non-GMO Project Verified” label on the packaging. However, the “USDA Organic” label did not hold as much weight, as consumers would only pay $0.09 more for the granola bars.

When consumers looked at fresh apples, things changed. Consumers were willing to pay $0.35 more for a pound of fresh apples labeled as “Non-GMO Project Verified” while they were willing to pay $0.40 more for the same pound of fresh apples labeled as “USDA Organic.” It seems that the “USDA Organic” label carries more weight in fresh produce than processed foods based on this study.

Why are Consumers Confused?

Consumers have almost done this to themselves as they have demanded more product transparency from brands over the past few years. Food companies are scrambling to add claims that stick out and show their food is “real.” Label Insight showcased last year that consumers find it difficult to understand if a product meets their needs by looking at the package.

What’s interesting about this new study from the University of Florida is how consumers are confused about “organic” and “non-GMO.” According to the USDA, the use of GMOs is prohibited in “organic” foods. So in reality, all organic foods are “non-GMO.” However, not all “non-GMO” foods are organic. Which makes it even more interesting that consumers are willing to pay more for packaged products with the non-GMO project verified logo.

The bottom line is education is needed on this subject. As food manufacturers invest in more organic foods and certifications, they expect consumers to be willing to pay more. This could spell trouble for brand betting big on organic in 2018 and beyond.

Inspired by www.fooddive.com

Kroger Looks to Natural Brands for Innovation

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Project Nosh reported on Kroger’s first natural innovation summit last month. The U.S.’s largest grocery retailer with 2,778 locations is looking to growing natural brands for innovation. The summit brought 50 of the best up and coming natural brands to their headquarters in Cinncinati, Ohio.

Kroger Natural Innovation Summit

The summit was held during the first week of October with a presentation from Jill McIntosh, VP of Merchanding for Natural Foods at Kroger, to kick off the first day.

“I thought of the idea because I wanted to bring a Natural Foods show to our Kroger category managers and invite some new and innovative brands to Cincinnati…Bringing the mountain to Mohammed, I guess.”
– Jill McIntosh

After Jill’s presentation, the summit featured 50 of the natural brands in a mini-trade show format. The natural brands were hand picked by VMG Partners, Harlow, and 84.51 degrees. For this first summit, Kroger wanted to focus on brands in water, fitness, yogurt, and packaged snacks.

“The brand selection committee prioritized high growth emerging wellness brands that have a proven sales velocity track record outside of Kroger, that were under-indexing in sales at Kroger. The event wasn’t focused on brands that don’t yet have a track record of sales velocity success elsewhere. The goal is help Kroger maximize their batting average as it relates to wellness emerging brands.”
– Wayne Wu, Managing Partner of VMG Partners

Key Takeaways From the Summit

The summit’s goal is the benefit both the brands and Kroger’s category managers. By bringing the brands to one place, this enables all of their buyers to be able to meet with the top brands and have more one on one discussions. The brands love the opportunity to connect with a specific retail customer in a more calm environment that trade shows like Expo West, Fancy Food Show, etc.

Kroger knows its business is moving towards more organic and natural foods, so the summit is an excellent fit in helping them push their “Restock Kroger” initiative. Kroger is leading the way in integrating their natural aisle with the conventional aisles so that both types of buyers become one.

“We have basically combined our natural with our conventional category management. Which makes sense as we want our category managers, when it comes to looking at a category, to know everything about it, not just the natural side or the conventional side but to be the subject matter expert over the total category. The customers are shopping that way more and more and we want to make it easy for our customer. So we’re mixing it up… As we integrate teams we’re able to integrate sales planning, ad, display and store formats.”
– Jill McIntosh

It will be interesting to see how the summit impacts the growth of innovative brands into Kroger’s massive retail chain.

Inspired by www.projectnosh.com

The Evolution of Nutrition Facts Labeling

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According to the U.S. Food and Drug Administration, the nutrition facts panel is one of the most widely recognized graphics in the world. Food Dive recently published an article on the origins and evolution of nutrition facts labeling. Our post hopes to detail some of the key points from their report.

The History of the Nutrition Facts Label

FDA Historian, Suzanne Junod, told Food Dive that the nutrition panel has been appearing on food packages since 1994, but mandatory labeling dates back more than 100 years. Junod says,”The modern U.S. food-package label has evolved steadily throughout the 20th century, and its content and format are regularly revised to reflect and apply new knowledge in the fields of medical, nutritional and regulatory science.”

However, minimal changes have taken place within the past 20 years except for the addition of Trans Fat in 2006. If you looked back 100+ years ago, the Pure Food and Drug Act of 1906 established the FDA and was the first significant consumer protection law passed in the 20th century. The law intended to stop adultered and mislabeled products to improve consumer trust in the food and drug industries. Packaged foods started to grow at the turn of the 20th century as these goods were more convenient that bulk or boxed products.

 

From there, low-cost competitors jumped in to sell short-weight packaging meaning they put less food in packages and sold them for less. In 1913, Congress passed the first mandatory food labeling law with the Gould Net Weight Amendment. The amendment required all packaged foods to have the quantity of their contents marked on the package regarding weight, measure or numerical count.

The next significant change took place in 1938 in the Food, Drug, and Cosmetic Act which required all artificial flavoring, coloring, or chemical preservatives to be listed on the product label.

“We didn’t know that much about vitamins until the ’20s. A lot of them weren’t even discovered until then. And no one was really clear about the role they played in human nutrition,” Junod said. “But scientific studies began. That was pretty much when [the FDA] started getting into the nutrition business and taking a really hard scientific look at nutrients and what role they play in the diet.”
Suzanne Junod
FDA Historian

In 1940, the FDA accepted a standard for enriched flour that established the levels for enrichment with vitamins and minerals. The formula was adopted for white bread and later standardized for other food products. Nutrition facts labels would not change for decades.

Nutrition Labeling Activity From the 1970s to the 1990s

In 1973, the FDA published the first regulations that required nutrition labeling for foods. The foods included those with added nutrients for which a claim was made on the package or in advertising.

“Then in 1977, a Senate committee came out with a report called Dietary Goals for the United States. That was a landmark report. [It] said that Americans should be cutting down dramatically on sugar, salt, and saturated fat, and eating more fruits and vegetables, whole grains, beans, and healthful foods”
Michael Jacobson
Sr. Scientist at CSPI

The Department of Agriculture, would soon after published the first Dietary Guidelines for American which agreed with Senate findings: eat more fruits and veggies, eat less salt and sugar.

Mandatory nutrition labeling and the first nutrition facts label were introduced in the Nutrition Labeling and Education Act of 1990. The FDA spent a lot of time developing the nutrition facts label with an outside branding firm to be flexible for scientific advances in nutrition.

Where the Nutrition Facts Label is Going…

The new nutrition facts label is undergoing its first significant overhaul in almost 20 years. In the new version, the FDA requires added sugars, essential nutrients like vitamin D, potassium, calcium, and iron. The label was initially set to be active in 2018 but has now been pushed back to 2020. Many believe they are trying to line this up with the Department of Agriculture’s Non-GMO labeling law. It will be interesting to see how this all plays out over the next few years.

Inspired by www.fooddive.com/

Mazars’ Food and Beverage Industry Study Indicates Increased Sales

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Mazars, a leading accounting, tax, and consulting services firm, released its annual Food & Beverage Industry Study Results Report. The report indicates that food and beverage companies are predicting a significant sales increase in 2017 for the second year in a row. Study participants included manufacturers, distributors, restaurateurs, and retailers with sales between $1 million or less and $500 million or more.

What are Companies Projecting for 2017?

Participants in the survey are expecting some significant increases in sales and profits for 2017 with an increase of 21% over 2016 sales numbers and a 16% increase in net profits. Of the 200 companies surveyed, most attributed growth to industry trends favoring private label and healthy/nutritious foods.

 

The study provides executives in the industry with a ton of information on performance, planning, and challenges facing food and beverage companies. The study also took a deep look at changing consumer trends, proposed regulations, emerging companies,  and new products.

Mazars Report Projects Increased Sales Due to Changing Consumer Trends

One of the biggest drivers of increased sales in 2017 is changing consumer trends. Consumers are starting to settle into a more healthy lifestyle, so nutritious foods are going to be critical for growth. Companies have been adapting to these changes over the past few years, and believe they have finally caught up.

It will be interesting to see if sales meet the expectations that executives are projecting in the Mazars Report.

Inspired by www.prnewswire.com

Mom’s Sweet Tooth May Be to Blame for Child’s Allergies

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The World Health Organization reports that around 235 million people suffer from asthma and children lead the list. To make matters worse, the number is predicted to increase to 400 million by the year 2025.

Asthma is a global health threat, and reports indicate that 50% of children are more sensitive to one or more allergens. This respiratory epidemic has been rising over the last 50 years, and the unlikely cause is the change in diet.

If your child is suffering from allergies, then chances are that the culprit is your sweet tooth. In a study published in the European Respiratory Journal, women who consume sugary foods during pregnancy may increase the risk of their baby developing allergies.

According to the lead author of the study, Annabelle Bedard from the Queen Mary University of London, there has been a rise when it comes to the intake of free sugar in the form of high fructose corn syrup over the last five decades. Free sugar is not found naturally in fruits and vegetables, and these include syrups, honey, sweeteners, and table sugar to name a few.

How the Study Was Conducted on Children’s Allergies 

The researchers used data obtained from 9,000 mother and child pairs in the Avon Longitudinal Study of Parents and Children. This is a long-term and ongoing research study that tracks the health of families with children who were born between April 1991 and December 1992.

To investigate the connection between the diet of the mother and the allergies of their children, the researchers calculated the number of free sugars consumed by women during their pregnancy through questionnaires. The researchers then looked into the sugar consumption and the allergies of their children.

The Sugar-Allergy Relationship

The study shows that 62% of children in the study do not suffer from any allergies, but the rest suffered from common allergies (22%), eczema (16%), and asthma (12%). On the other hand, the researchers looked into the sugar consumption of moms during pregnancy.

Children from moms who had a high sugar intake have a 38% increased risk of developing allergies compared to those who are born from moms who consumed less sugar. The researchers calculated that kids from moms who consumed more sugar are also likely to suffer from two or more allergies such as asthma, hay fever, and eczema. For instance, the risk of allergic asthma increased by 101% for kids born from moms with high sugar consumption group versus the low sugar group.

Although there is a strong link, researchers emphasized that the results are inconclusive such that there are other factors that can lead children to suffer from allergies. Allergies are complex diseases that are associated with different factors such as genetic defects, pollutants, and many others.

In fact, senior lecturer in immunology at the University of Manchester, Sheena Cruickshank, noted that more studies should be carried out to determine the cause of the relationship between sugar consumption of mothers and the allergies of their children.

Inspired by www.cnn.com