Consumer Packaged Goods

Misleading Labeling Claims Can Land Food Companies in a Lawsuit

in Beverages & Drinks, Consumer Packaged Goods, Food Business

In today’s modern society, most consumers are driven to purchase healthy foods. Customers take the time to read and compare food labels to decide which products are right for them. Food producers use labels as a marketing ploy. Food manufacturers love to claim different kinds of health benefits to boost their products’ sales. Unfortunately, many of these claims are misleading.

The Problem with Misleading Food Labels

Food and beverage brands come up with the latest buzzwords that are designed to boost product sales. Consumers expect the labels to be truthful so that they can make healthier choices. Moreover, they assume that the government is keeping a strict eye on the food manufacturers.

While there is some truth to this, what’s good to know though is the system is currently working to make companies accountable for their misleading food labeling. On August 12, 2016, the company Nature’s Way falsely labeled its coconut oil as healthy; thus, a California federal judge found that the firm’s advertising and labeling are misleading.

The company branded their products as a healthy alternative to shortening, margarine, butter and other cooking oils despite the fact that it is not much better than those products. Moreover, the company’s advertising and product labeling violated several state food regulations in Canada.

Food Labeling Laws

Food manufacturers are expected to evaluate their foods and make their nutrition labels. They are allowed to make a margin of error of plus or minus 10%. The Food and Drug Administration imposes that all food producers are straightforward when it comes to labeling their food products. For instance, products that are labeled as “natural” may contain surprisingly unnatural ingredients. Moreover, food manufacturers should also include the exact serving size and calories on the label as part of FDA regulations.

FDA Issues Public Warning

With the increasing trend of using misleading labels, the FDA strictly defines the term “natural” in food products, and it restricts many food manufacturers to abuse such claim. Those who do not comply with the agency often suffer repercussions.

For instance, the agency issued a public warning letter in 2014 to Premier Organics about its product named Arisana Coconut Butter Whole Coconut Flesh is not healthy because it contains high amounts of saturated fat per serving.

Another company that has found itself in hot water with the FDA was General Mills. The company experienced a lawsuit when it allegedly claimed that the product Cheerios Protein is a protein-rich version of the regular Cheerios when, in fact, it does not contain significant amounts of added protein.

The false advertising of many companies has led to the proposal of the Food Labeling Modernization Act to streamline food labeling and create a standard labeling requirement for all food products. With this proposal, food manufacturers will be more careful in using buzzwords like “natural” and “healthy.”

Source: legalnewsline.com

Tyson Meat Company Invests in Plant Protein with Beyond Meat

in Consumer Packaged Goods, Food Business, Health & Nutrition

People are now shying away from eating so much meat. Some nutrition experts believe that eating too much meat can cause serious, long-term health problems. New companies developing plant-based meat alternatives are racing to create the next big product in “meat.”

As one of the largest meat processors in the country, Tyson Foods shocked consumers when they decided to embrace plant proteins. They invested in the vegan “meat” company, Beyond Meat. Beyond Meat is the company that brought the market, the Beyond Burger, which is a plant-based burger that looks and tastes like the real thing. Senior vice president in charge of strategy and new ventures, Monica McGurk, noted that the quality of the plant-based burger is amazing and Tyson Foods wants to diversify their food business.

Why Plant-Based Proteins?

There is a growing movement of vegetarianism and veganism in the United States. As more American consumers are eating more plant-based foods, many traditional meat manufacturers are thinking of new ways to grow share of the new plant-based market.

According to the Plant Based Foods Association, businesses in the country such as Califia Farms, Heidi Ho, and Beyond Meat have grown to at least $4.9 billion in sales last June. The investment that Tyson Foods poured into Beyond Meat came as a shock because a meat company suddenly decided to invest in a plant-based business. Tyson must have seen the lucrative business of plant-based proteins.

Why did Tyson Diversify its Portfolio?

In 2014, Pinnacle Foods which produces canned meat products bought Gardein which creates a line of plant-based products. This creates a positive view that the meat industry is recognizing the movement of veganism. Although it may not cause the complete shift in meat to plant-based proteins, it is still a good sign for vegans and vegetarians all over the world.

However, this particular type of investment will also raise eyebrows, particularly among ardent vegetarians and vegans. Ethan Brown, founder, and CEO of Beyond Meat, said that many vegans see the ethical problem of a meat company investing in a plant-based business. But he is hopeful that this action can make plant-based meats become part of the mainstream decision of many consumers. Such investment is a great way for customers to enjoy plant-based protein in their daily diet.

Do Consumers Want More Plant-Based Meat Alternatives?

So, will such kind of investment be welcomed by many users? In a research conducted by Midan Marketing and Meatingplace, 70% of meat-eating respondents said that they could use meat substitutes in place for real meats at least once a week. The remaining number of correspondents are already using meat substitutes frequently.

The reasons why there are a huge following and acceptance of plant-based proteins in the United States is mainly for health. However, other people do it for the ethical reasons. Whatever the reasons may be, Tyson Foods investment in Beyond Meat proved that there is an emerging market for this particular niche.

Inspired by: www.nytimes.com

Packaged Facts Reports Stable Growth in the Natural Food Industry

in Beverages & Drinks, Consumer Packaged Goods, Food Business, Supplements & Nutraceuticals

Modern consumers are no longer driven only by the price and taste of food. With most consumers seeking healthy foods, their shopping behaviors have also changed. Today, American consumers consider safety, experience, social impact, transparency, as well as health and wellness when it comes to purchasing food. This is the reason why organic and natural foods are a growing niche in the food industry.

According to the report titled Natural and Organic Foods and Beverages in the US (5^th edition), most consumers value the transparency and eco-conscious models of how their foods are made. Opting for natural and organic foods fulfill the needs of the customers.

Research Director of Packaged Facts, David Sprinkle, noted that this new behavior of consumers resulted in the rise of the organic and natural foods market. Packaged Facts estimated that the industry would earn $69 billion by the end of this year. This is 11% higher than the sales from last year.

The Industry Shift to Organic And Natural Foods

The growth of the organic and natural products has outpaced the sales of conventional food items. It is forecasted that the growth will be up to 70% from 2016 to 2021. This is the reason why big food manufacturers are shifting towards the natural and organic food niche. They hope to achieve this by overhauling their products or creating a new portfolio in the hopes of attracting consumers who lean towards natural and organic foods.

But what most big companies do not realize is that integrating organic and natural foods to their established brand can be quite challenging. While the market for organic food products is rising, it still has big shoes to fill. Conventional companies might find it difficult to look for clean ingredients because the suppliers are not quite there yet.

Big Food Companies Making Changes

Although there are some challenges present, investing in the natural and organic food niche is worth it. In fact, many big companies have seen stark improvements in sales after jumping into the natural and organic bandwagon.

For instance, Campbell Soup Co. announced to remove all artificial flavors and colors in its products by the end of 2018. Other companies that have plans to remove its artificial colors and flavors include Mondelez, General Mills, Mars Inc., Kraft Heinz, and Hershey Co. On the other hand, companies like WhiteWave Foods have pledged to use only organic ingredients in their products.

The food manufacturing industry has come a long way from using artificial flavors and colors in the past to using only natural ingredients. As consumer behavior continues to lean towards clean ingredients and healthy foods, the other main food manufacturing companies will follow suit–an action that will not only benefit food manufacturers but consumers as well.

Inspired by prnewswire.com

Premium Packaging: The New Trend in Private Label

in Beverages & Drinks, Consumer Packaged Goods, Food Business, Supplements & Nutraceuticals

The food manufacturing industry is highly competitive right now, and private label brands are keeping big brands on their toes. Aside from using clean ingredients, another industry trend is premium packaging.

Packaging is considered by most the brand and forms the first impression of products at the shelf in stores and online. Private label is adopting premium packaging to increase the perceived quality of their products and increase brand loyalty.

What Is Premium Packaging?

Big retailers are relying on cutting-edge packaging to enhance their brands. Premium packaging is all about improving the presentation of the product to make it distinguishable from competitors. It reinforces the identity of the brand, thereby making the products more appealing to the consumers. But it is important to take note that premium packaging is not only about using heavy-duty and expensive materials, but it also considers convenience and sustainability.

The Elements of Premium Packaging

Creating premium packaging can be a challenging task. Companies need to consider many things in the design of the packaging to sell their product, identity, and brand. Certain things should be taken into consideration when creating premium packaging, and these include the following:

technical design innovation
the durability of packaging
convenience
consumer health and wellness
eco-friendly materials

For instance, thinking about the use of eco-friendly materials is necessary for creating premium packaging since so many people are now conscious of the green movement. Today, many manufacturers look into the sustainability of their packaging as they aim to produce less waste.

Convenience is also another factor especially if the product is designed for a particular target market. For instance, products that are created for the elderly should be convenient enough so that they can open the packaging without the help of others.

The Benefits of Premium Packaging in Private Label

The idea of presenting a product or brand as “luxurious” depends on the type of packaging used. People opt for luxury products to maintain a certain social standard. But more than social standards, luxury packaging can also improve the consumer experience. Private label companies are interested in premium packaging for this primary reason. They are already beating competitors on price, but they want to compete on experience now.

For instance, when the first microwavable meals became popular, demand increased because of the attractiveness of quick meals. Today, microwavable meals are no longer attractive and are commonplace. The use of ceramic pots to contain microwavable meals are used to create a better eating experience.

It is inevitable for companies to change their product packaging. It is one of the marketing strategies that companies should do to ensure success. With the constant evolution of product packaging, it will continue to push private label manufacturers to innovate and stand out from the crowd.

Inspired by http://digital.foodmanufacturing.com

Consumers Looking for More Plant-Based Proteins

in Beverages & Drinks, Consumer Packaged Goods, Food Business, Health & Nutrition, Supplements & Nutraceuticals

Where do you get your protein? The usual answer would be from meat and other animal products. Proteins are also found in plant sources, and they are gaining a lot of traction. In fact, 63% of Americans want to eat healthy by better understanding the ingredients found in their food. The preference of most consumers for natural and simple foods has led them to explore other food alternatives such as plant-based proteins.

Plant-Based Pulses: The New Meat

Although the sales of lean proteins in the United States have increased by 4.8% or $19.6 billion, many consumers are also buying pulses or grain legumes. Pulses are edible seeds made up of aggregates of peas, lentils, chickpeas, and other dried beans.

In a survey conducted by Nielsen, about 61% of the respondents opted for foods that have both high protein and fiber content where pulses are clearly spot on. And with the many health benefits attributed to eating pulses, it is no wonder why the United Nations declared this year (2016) as the International Year of Pulses.

Pulses are not only perfect for vegans and vegetarians. In fact, even carnivores can also take advantage of the many health benefits of pulses. But aside from nutritional and health benefits, people are now shifting to pulses because of its taste and eating convenience.

Why Are People Eating Pulses?

Health is becoming a priority for many American consumers these days. One of the most popular superfoods for health-conscious individuals is pulses.

There are different categories of consumers that consume pulses, and they vary in their income levels, dietary preferences, and life stages. However, the recent study conducted by Nielsen Homescan Consumer Moments indicated that most people who consume lentils are women who make up 70% of the respondents.

It is also important to take note that the manner of consumption of pulses indicated that consumers eat them at home. In the study, 86% of the respondents consume legumes at home, and more are preparing them not as side dishes but as the main entrée. This means that many consumers today are taking control of their personal health by making time to cook their meals.

The Future of Pulses

Although there has been a rapid increase in popularity, the overall sales of some legumes have dropped significantly this year. For instance, while lentils and chickpeas are still dominating the sales chart with 11.1% and 64% growth respectively, other lentils like red, black, and white beans are on a steady decline.

The market for pulses in the United States is still very young. While the market is still experiencing slow growth for some of the seeds, well-known seeds like lentils and chickpeas are dominating the market. As more and more people appreciate the benefits of eating lentils, this food trend will continue to persist for years to come. It’s up to manufacturers to develop new plant-based alternatives that are tasty and excite consumers.

Inspired by nielsen.com

8 Natural Food Trends Disrupting the Market

in Beverages & Drinks, Consumer Packaged Goods, Food Business

Natural food products are no longer a unique niche with a few followers. With the natural food movement growing across the industry, this niche has turned into a necessity for brands.

The New Hope Network conducted research that showed that people are consuming a lot of natural food products. Food manufacturers are prioritizing such opportunities to create products that meet the demands of many health-conscious consumers. Below are the natural food trends disrupting the market today.

Trend #1: Prebiotics

Our gut is our second brain. It is important to feed your gut bacteria with the right kinds of foods. Prebiotics are very popular right now, and many consumers buy them for health reasons. Modern prebiotic food manufacturers include Rainbow Light and Jica Chips. Products and supplements containing prebiotics have a high market prediction rate of 93% which means that the future of prebiotics will be huge.

Trend #2: Natural Food Products with a Mission

Products that are developed out of a mission is a popular food trend today. These products are not only geared towards health but also to the environment. For instance, the Marley Coffee EKOCups are recyclable pods that can help solve the problem of solid waste pollution caused by non-biodegradable coffee cups. Food companies that also support charities and communities are also appreciated by consumers.

Trend #3: Paleo Foods

The Paleolithic diet has caught on with a lot of people seeking a healthier lifestyle. This particular diet involves eating minimally processed foods that include no dairy, no refined sugar, and no grains.

Trend #4: Locally Sourced Foods

Gone are the days when people go crazy over imported food products. Today, many consumers want traceability through locally sourced foods. Many customers also want to source their foods locally because they want to support the local economy and the surrounding community.

Trend #5: Brain Food

Brain food is another trend that has become popular in the last few years. People want to protect their memory and brain function. Products that contain brain foods like hemp and green tea extract are becoming more popular. Moreover, foods that also contain omega-3 fatty acids vs. omega-6 are gaining traction for brain function benefits.

Trend #6: Hidden Veggies

With many children avoiding their vegetables, hidden vegetables in food products are a welcome addition to the natural food trends disrupting the market. Many food manufacturers are developing products to hide vegetables since 33% of consumers in the United States indicated that they would rather eat vegetables they cannot see in their foods. Examples of sneaky veggies include the Made Good Granola Mini Snack Poppers and Good Health Salty Snack products with natural vitamins from vegetables.

Trend #7: Grass-Fed Meat

Many consumers are also looking for grass-fed meats and free-range poultry products. Today, most meats are obtained from grain-fed livestock. Feeding grains to livestock does affect not only the quality of meats but also the nutritional value. With the popularity of naturally grown livestock, this trend has a prediction score of 99%.

Trend #8: Eco-Friendly Packaging

Many consumers want products that come in eco-friendly packaging. To answer the need of many consumers, food manufacturers are developing compostable packaging to reduce the waste produced from their products.

Inspired by fooddive.com

The Medical Food Trend is Growing

in Consumer Packaged Goods, Food Business, Health & Nutrition

Hippocrates once said, “Let food be thy medicine and medicine be thy food.” Despite the advancements in medical technology, many people are now considering medical food and nutrition to treat diseases and improve health conditions.

In a survey conducted by Nielsen, 39% of American households have someone who suffers from a particular ailment. And with the aging population increasing, chronic diseases will only grow in the coming years. Traditionally, people have turned to medications to solve these problems.

According to the Nielsen’s Global Health and Ingredient Sentiment Survey, 70% of consumers worldwide and 60% of the American respondents noted that they are actively making choices for their health to avoid different conditions like diabetes, high blood pressure, obesity, and high cholesterol.

What is Medical Food?

Medical food is a new concept, but it is defined as food formulated for the dietary management of diseases with distinct nutritional needs that a traditional diet cannot fulfill. Medical food should be nutritionally complete and are designed to meet the distinct nutritional requirements of particular patients.

Companies like Hormel and Nestlé are now looking into medical foods to help their consumers manage their ailments through nutrition. Manufacturers want to join the niche of medical food because of the rising trend. Food brands who are delving into medical food are looking into producing foods intended for patients suffering from obesity, lactose intolerance, diabetes, Crohn’s disease, and gluten intolerance. Food companies understand that being health-conscious is one thing but using medical food is a safer way to treat chronic illness.

The Future of Medical Food

The concept of medical foods is still in its infancy stage, but many question its future. With many people suffering from chronic diseases, consumers are looking for ways on how to manage their conditions without relying too much on conventional medicine and treatments.

Medical foods will go through a lot of scrutiny than conventionally processed foods. The extra attention that medical food gets will not only be focused on its nutrition claims, but also its safety as well as marketing. Marketing is critical because brands should not sell medical foods that fail to meet its promises.

The U.S. Food and Drug Administration is responsible for regulating medical foods under the Food Drug and Cosmetic Act Regulations 21 CFR 101.9(j) (8). The regulations for medical foods is not yet that strict, so food companies are not required to get approval by the FDA nor undergo premarket review. Moreover, they are exempted from getting labeling requirements for its health claims. Although the regulations for medical foods are not that stringent, they will surely change as the market expands. Medical food has a bright future but will face challenges from the FDA and consumers as the industry niche grows.

Inspired by http://www.fooddive.com

Innovative Food Brands Sneak Veggies on to Your Plate

in Beverages & Drinks, Consumer Packaged Goods, Food Business, Kid's Health

Clean eating is taking over as more people connect their health to the food they eat. Many consumers are moving away from eating artificial ingredients for better and healthier options. Food companies are taking advantage by adding fruits and veggies to a variety of convenient foods that consumers eat.

The Clean Eating Shift

This shift towards clean eating has not gone undetected by food manufacturers. As a result, many manufacturers have developed new products with one goal in mind and that is to create delicious products charged with clean ingredients.

In a study conducted by the Produce for Better Health Foundation in 2015, researchers noted that the per capita consumption of vegetable decreased to 7% in the years 2009 to 2014. This was attributed to people consuming fewer side dishes during their meals.

The US Department of Agriculture recommends eating at least five cups of fruits and vegetables every day, but Americans only average two cups daily. This dietary problem was acknowledged and seen as an incredible opportunity for food manufacturers to create food products that use fruits and vegetables creatively to fill the nutritional void in most Americans.

Innovative Hidden Veggies

Companies such as Archer Daniels Midland, Green Giant and B&G Foods are now rolling out new products that sneak fruits and vegetables in them. For instance, the Green Giant brand introduced a new line of frozen veggie products like mashed cauliflower, veggie tots, and roasted vegetables.

Vice president and general manager of Green Giant, Jordan Greenberg, noted that many consumers are looking for products that are not only convenient but also healthy. Many companies are seeking alternatives to starches as well as looking for ways on how to introduce vegetables to children in the most appealing ways.

While this trend is very popular today, many marketing analysts of food companies believe that the trend will not die down anytime soon. In the food prediction trend called The Pinterest 100, the website noted that people will still continue to follow the trend of cutting their calorie intake by swapping vegetables for their carbohydrate and meat comfort foods.

Aside from prepared foods and meals, food manufacturers have also created drinks that are based on fruits and vegetables. Unique combinations of fruit drinks like ginger-pumpkin-orange or cucumber-kiwi-spinach have already found their way onto store shelves.

With the increasing obesity rate in the United States, many Americans are trying to eat clean and better. The problem is that most consumers are not willing to give up their comfort foods, so they don’t bother doing clean eating at all. As a result, a large population of Americans remains overweight. To answer the need of consumers for satisfying yet clean and healthy foods, many food businesses have found a new niche and have innovative products that incorporate fruits, vegetables, and other natural ingredients to provide real nutrition and not just empty calories to consumers. This results in a win-win situation for both consumers and food manufacturers.

Inspired by fooddive.com/news/vegetable-food-innovation