Ingredients and Formats adapts for Healthier, Portable Candy and Snacks

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Snacking is popular among consumers, but with increased health awareness and wellness education, snack companies are now changing their format to adapt to the needs of shoppers. Brands are focused on clean-label snacks, organic, gluten-free, and non-GMO products to meet these new requirements.

Emphasis For Healthy Snacks

With the rise of health-conscious consumers, it is no wonder why snack companies are clamoring to fill this new niche. For instance, aside from using clean labels, companies are designing snacks made from fewer natural ingredients without the use of artificial coloring and flavors.

Consumers are now following different diet restrictions. People who suffer from celiac disease, for example, can now find snacks that are made without the presence of gluten. Other companies have specialized in making healthy snacks without the use of genetically modified ingredients.

Why Focus on Candy Bars and Snacks?

So why are companies focused on making healthy candies and snacks? The smaller serving size is perfect for people who are always on the go. According to Millennial, a US-based research company, consumers are looking for bite-sized snacks that are not only easy to consume but that offer portion control in a re-sealable format. This format is being adopted by food brands like Snickers, Milky Way, and Twix by producing 100 calorie sticks.

 

Aside from the portion sizes, the packaging of candies and snacks is changing. The change in the packaging is aimed at improving the shopping experience for consumers. Candy companies are also focused on changing the ingredient list. For instance, the infamous Mars bar uses gluten-free ingredients such as whole nuts, fruits, and dark chocolate for those who have gluten restrictions.

Better Opportunities for Snacking Companies

The strategies implemented by snack companies have resulted in a huge revenue of $13.7 billion this year, which is a 2.4% increase compared to the previous year. The increase provides real motivation to snack companies when it comes to innovating their products.

Most consumers are actively shopping for healthier food items, so the merchandising of healthy snacks often involve placing the snacks near the produce section. This is to give the consumers the idea that the snacks are healthy. On the other hand, the store that receives a high amount of traffic can also place their snack products on visual shipper displays to provide appealing storage.

The thing is that the snacking industry will be big given a few years’ time as more people demand products that contain healthier ingredients. With the steady increase in revenue as well as popularity, the category of healthy snacks will continue to grow.

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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

Small Manufacturers Are Experiencing Large Growth

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Although almost $3 billion in losses took place in U.S. retail during the first quarter because of a shift in the timing of Easter as well as changing consumer preferences, growth is not impossible. Contrary to what the numbers show, a few small food and beverage manufacturers are thriving during an unexpected time. Only five years ago, the largest food and bev manufacturers represented one-third of all dollar sales. However, to date, they account for only 31%, and smaller manufacturers (which exceed $100,000 in sales annually) have gained the two percentage points of market share, valuing at about $2 billion. Currently, nearly 16,000 companies, which make up the smallest manufacturers, are responsible for 19% of dollar sales and are also experiencing over half of the growth (53%).

For Full Article and Results From Nielsen, please visit: http://www.nielsen.com/us/en/insights/news/2017

Transparency is Now Key to Consumer Approval

Research put into the shift of growth in the U.S. retail industry shows that transparency is winning. Small manufacturers place a significant portion of their focus on health as well as the need to provide a transparent environment for consumers. At the same time, they do well to maintain an exceptional price point that retailers love!

Clean Labels Gaining Popularity

A “clean label” refers to a product that does not contain any artificial sweeteners, preservatives, colors, and flavors, as well as antibiotics and hormones in beverage and food categories. These products also typically make marketing label claims on their packaging to entice consumers.

As shown in a worldwide ingredients survey conducted by Nielsen, consumers have a tendency to keep a close eye on the details of products―actually, nearly three-quarters of survey participants said they felt positively toward businesses dedicated to honesty regarding their product sourcing; 68% were willing to spend more money on beverages and food free of ill-favored ingredients; 64% of the diets of consumers forbid specific ingredients. The longing for clean labels stems from the growing desire for company transparency.

 

Clean label products are now responsible for 30% of sales in the market, which has grown by 5.6% over the last five years. Small manufacturers dominate large competitors regarding clean label sales and growth. This past year has shown that small manufacturers sold the most share of clean label products in comparison to their other sales. Small manufacturers led with 40% of their sales coming from clean labels, followed by middle-sized manufacturers at 38%, private-label manufacturers at 27%, and lastly, large manufacturers at 24% of their sales coming from clean label products.

Small manufacturers take the lead in premium price tiers as well. Recently, premium-priced sales made up 44% of small producers’ sales, a significant difference when compared to the premium price of the sale of large manufacturers, recorded at 39% and below.

During the last five years, both medium- and small-sized manufacturers have upped their distribution throughout regions, resulting in a greater amount of space inside stores. Out of the roughly 900 beverage and food items that have been stock on store shelves since 2013, 88% came from medium- and small-sized companies. Retailers are giving small manufacturers an opportunity to sell their products to customers more frequently than ever before.

Increasing Sales with Promotion

Due to a larger variety and connection to real consumer desires, smaller and private manufacturers are finding sales success while also spending less on the promotion of their offerings. Larger corporations, on the other hand, have spent much more money than average on trade promotions. As of April 2017, sales based on advertising are accredited to 40% of large manufacturers’ sales, compared to 27% of small manufacturers’ sales.

 

As the demand for clean label products increases, more and more people will be willing to buy them, whether or not there are promotions. To adapt to the smaller manufacturers taking advantage of this trend, retailers and marketplaces must provide more space in order to account for the consumer demand. The long term success of this trend is still undefined. We will see how large brands respond. The most consistent way to adapt for large companies is through the acquisition of small manufacturers.

Inspired by www.nielsen.com

The Rise of Cauliflower Rice

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The recent rise of “riced” vegetables has led to criticism amongst food connoisseurs. Betsy Ward, the president of USA Rice, has boldly declared that “Only rice is rice, and calling ‘riced vegetables,’ ‘rice,’ is confusing and misleading to consumers.” One of the most well-known of these controversial food products is cauliflower rice, the result of pulsing in a food processor. Although cauliflower rice soaks up sauces and spices like classic rice, plenty of seasoning is necessary to enrich the dull flavor. One cup of cauliflower contains two grams of net carbohydrates; on the other hand, white rice includes 51 grams of carbs and brown rice 42 grams.

Healthy Alternatives Reflected in Other Food Sectors

Cauliflower Rice vs. Traditional White Rice CarbsJust as the term milk has broadened to include non-dairy based products, such as almond and soy milk, rice has followed suit and done the same. Although the new cauliflower product is not the consumer’s first pick, it appeals to people looking for healthy food options.

Similarly, the pasta business has seen its share of the growth of alternative pasta products, with squash and zucchini pasta becoming a more attractive alternative to starchy, traditional pasta. People are ready to grab and utilize the vegetables they already have at home, threatening industries that incorporate and sell carbohydrate-rich food products.

The dairy industry’s unsuccessful attempts to eliminate competition such as the nut, soy, and other non-dairy based milk drinks is an affair that could potentially be seen in the rice business. If the rice industry raises this concern to the FDA, however, they might be able to avoid this. The definitions of terms such as “milk” and “healthy” have long been in limbo, and some are unsure whether or not the current presidential administration will provide a traditional definition, finally putting an end to the conflict between conventional and unconventional, alternative food and beverage manufacturers.

Wise Marketing Strategies Will Help the Rice Industry

Despite the growing popularity of non-traditional rice products, there are ways for the industry to weaken the acclaim for cauliflower rice. Ripple, a plant-based milk brand, has introduced a game that educates consumers on the advantages of milk in comparison to traditional dairy milk. Rice businesses could use similar strategies to teach users on the rewards of eating regular rice. Through purposeful advertisement and other marketing strategies, the rice industry could certainly achieve this goal.

It is still unclear to all, whether or not cauliflower rice will be above its traditional counterpart. A possibility remains that cauliflower rice may not achieve the same success as alternative dairy products in the dairy industry. In the end, regardless of how successful or trendy cauliflower rice may become in the future, the rice industry should remain on their toes and ready to face more competition.

Inspired by www.fooddive.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