Annie’s Wants Organic To Be Affordable For All Consumers

The rise of organic food is creating waves all over the United States. The news circulating about the dangers of eating foods laced with pesticides and other harmful agricultural chemicals is shifting people towards clean eating. Consumers are seeing the benefits of eating organic products. However, the accessibility of organic foods is mostly exclusive to people who can afford them. In reality, not everyone can afford to buy a pound of strawberries for $15. It is just too much!

Fortunately, there are now organic companies trying to reach out to a broad spectrum of consumers. The all-American favorite food company Annie’s is encouraging people to eat food products made from organic ingredients by launching new healthy and price sensitive products.

Annie’s Leading Revolution in Affordable Organic Foods

A survey conducted by the USDA in April 2016, reveals that only 23% of American consumers can afford to buy organic foods. With the rising cost of organic food, it is no wonder why many people cannot afford to buy organic even though they are now available in most grocery stores.

Poor nutrition is a big problem in the United States. Poor nutrition is often translated to high obesity rates in the country. Having seen this issue progress over the years, Annie’s has vowed to launch at least 30 new products made from certified organic ingredients.  These organic products will be sold in the form of soups, yogurts, cereals, and baking mixes. The acquisition by General Mills has opened doors to supply chains that Annie’s never thought was possible.

John Foraker, Annie’s President, noted that the company has been passionate about making organic foods for decades and this principle not only benefits the farmers and consumers but the planet as a whole. Moreover, the company believes that organic foods should not be restricted to people on high social and economic tiers. The company’s decision to make their foods available to people from all income levels is ground-breaking on its own.

To fortify its new campaign, Annie’s launched an integrated digital campaign which helped the growth of the company. With the launch of the new campaign on August 19 of 2016, it allowed people to find out about the exciting campaign and participate in it by buying the new products.

So what is the implication of Annie’s campaign on the rest of the industry? Perhaps this bold move by the company will push the other primary players of the industry to opt for the wider distribution of organic foods thereby increasing the accessibility of healthy foods to all consumers. Will this happen in the future? We can only hope so.

Inspired by prnewswire.com

Nielsen Says Consumers Are Now Ingredient Inspectors

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

Infographic: What do Millennials Eat?

As we already mentioned in this article, the millennials are currently the most exciting generation of product and service companies because of their buying power, shopping demands and capacities. One of the things that the millennials do not feel sorry paying for is food. Research shows that they spend more money on food than previous generations, and they are quite picky and opinionated about their food choices. They are in the loop about trendy restaurants, curious about food ingredients, and they carefully read food reviews in magazines and online media. Consequently, the appetites and eating habits of the Millennials are different, and food producers need to keep up with the change in the food scene to cater to desires of this growing population.

The following infographic presents information about the eating habits of the Millennials and the factors that shaped them, from the digital revolution to economic and obesity crisis. Take a look and discover some interesting and contradictory information related to this topic, find out what the millennials typically have for lunch, and have fun reading about the eating habits of some of the famous millennial celebrities.

millennials eating habits food and beverage

 

Developer Creates More Visual Food Data With Interactive App

More consumers are reading food labels than ever before. Customers expect packaged foods to contain the appropriate and promised ingredients. A developer has reinvented food data by launching a new web app, Sage Project. Co-founded by Sam Slover and backed by the FDA, the Sage Project is an online platform that gives food data and labels a new visual understanding of what we are eating.

 

The Sage Project

The project deconstructs thousands of food products–both fresh and packaged–into a personalized, interactive platform that contains necessary information you would find in conventional food labels. The information accessed with this app includes nutrients, calories, allergens, vitamins, and ingredients. But aside from providing food data, the developer wanted to communicate the nutritional content and what it means in the context of the health of an individual. The app also contains information on how it affects the fitness goals and activity levels of a person.

The app itemizes all the ingredients regarding weight in a list. While it is straightforward enough, the developer also ensured that the ingredients and nutrients also change depending on the serving size. This gives consumers a clear idea of how much of a particular ingredient or nutrient they are getting from the food in a specific amount.


Why People Are Not Reading Food Labels

There is a big reason why most consumers do not read food labels. While it takes some time getting used to reading food labels, conventional food labels are downright boring to look at. In a study conducted by researchers from the University of Minnesota, they revealed that one of the biggest reasons why people are not looking at labels is because they do not have strong visuals.

To solve this problem, the Sage Project deconstructed the traditional food label into an infographic. A list of the five most abundant nutrients of the food product is located at the top of the page, while an analysis of the nutritional content is found beneath it.

The app also features the types of exercises needed to burn off a particular food item when eaten; while an annotated list of ingredients including allergens is found in the lower part of the screen. Since most of the consumers are not familiar with some of the ingredients used in making a product, there are information icons beside each ingredient that you can scroll through to understand that particular ingredient better.

 

The Drawbacks to The Sage Project Food Data

The Sage Project provides a lot of information, which is one of its drawbacks. Some people just want their food labels to be straightforward. With so much information, some people may find the entire app overwhelming. However, the visual appeal of the data makes it easy to comprehend for the more data savvy generation, millennials.

 

According to Angela Lemond from the Academy of Nutrition and Dietetics, consumers might experience information overload when using this app. But nevertheless, this app can be customized to fit any customers’ dietary restrictions as well as health goals. What matters is that this app can help a lot of people make the right health decisions when it comes to their food.

Inspired by wired.com

New Research: Food Shopping Habits of Millennials

The food landscape is ever changing, and so does the behavior of people. Watershed Communications, a national brand strategy agency, conducted a study regarding the food shopping habits of Millennials. The participants, aged 18 to 35 years old, were asked to describe a food brand that they found authentic. They also had to answer questions related to their food shopping habits.

Millennials are considered the most highly engaged shoppers in all demographics. They are also the ones who have more shopping demands and higher capacities. With this study, companies will be able to understand the food shopping habits of Millennials so that they can apply the information in developing new products to meet their desires.

Food Shopping Habits Among Millennials Shows Branding Wins

Studies have found out that 84% of millennials can describe a particular brand or product that they have just discovered. They learn about brands by reading magazines, but they are keen on finding new brands through the internet. Once they have heard of a particular brand, 61% of millennials will share the information with their friends, family, and acquaintances while 63% plan to buy the product.

Millennials are consistent with the brands and products that they use. According to US food analyst Alexia Howard from the Stanford C. Bernstein, most millennials opt for products that are authentic, simple and consistent.

Millennials habits food shopping

The Need for Authenticity

Millennials have a constant need for authenticity in their products. Authenticity of a brand can be difficult to define, but five characteristics determine the authenticity of a particular product as follows:

  • The use of clean ingredients: Clean ingredients refer to ingredients that are real, natural, organic, and fresh. Clean ingredients are expected and demanded by millennials to ensure that safety and quality of the product that they are buying.
  • High-quality products: Quality products use top-of-the-line ingredients. Quality food products should also have great flavor.
  • True to its mission:  Authentic brands should stay true to its mission. They should stick to their claims.
  • Culturally accurate: A lot of millennials are exposed to global brands, but many of them feel that brands that honor their cultural heritage are more authentic than those that try to appeal to a market audience that are thousands of miles away from them.
  • Transparent: Transparency is imperative in defining the authenticity of products. Transparency divulges the origin of the product and the processes that it has to go through before landing on your table.

Millennials make decisions instantaneously. They are also the most influential. For instance, a 35-year-old mother can make decisions for her children to purchase a particularly healthy snack or she can encourage her parents to buy a product that she has already tried and tested.  It is, therefore, necessary for companies to use this information to create products and a marketing strategy to attract them.

Inspired by businesswire.com

 

General Mills Looking to Improve Yogurt Products in 2017

General Mills has created a giant with its yogurt business by generating $2.8 billion in annual sales. But the company has seen a significant drop off across brands in the past two years, and they believe it’s time to innovate their portfolio to become more competitive in the evolving category.

Yogurt is an Essential Food for Most

Yogurt and other yogurt-based products have experienced steady growth in sales for the past two decades.  NDP Group Inc. analyst, Darren Seifer, noted that yogurt experienced a steady increase over the years because it is considered by many consumers as a healthy and convenient food. Innovation in flavoring has caught the attention of many consumers. Today, yogurt companies are designing their products to have less sugar and more protein since so many people are dropping sugar and other artificial ingredients.

However, there are many challenges involved in the yogurt industry. General Mills will probably experience challenges with creating yogurt-type products for the emerging vegan markets.Moreover, there is also an increasing demand for non-GMO yogurt.

What’s surprising about yogurt is the lack of nutrients. Many people eat yogurt as their primary source of calories for breakfast, yet they are getting no vitamins unless they eat fruit. General Mills and other yogurt brands have any opportunity to add natural vitamins from fruit and/or vegetables to supply essential nutrition to consumers’ favorite breakfast option.

General Mills Makes Bold Move

In its investor presentation, General Mills, President, and COO, Jeff Harmening mentioned that the yogurt portfolio of the company is not aligned with the latest trends. Currently, the company has too many light and regular yogurts. More competitors are offering a wider product range which includes Greek yogurt, organic yogurt, and yogurt drinks. The yogurt industry is worth $84 billion globally, and the company is only capturing less than 1% of the global market share.

Yogurt products are paramount to General Mills as it makes up 16% of the total business.  The company is planning to renovate 60% of its yogurt business in the following year. This means that the corporation will be able to offer new yogurt products as well as flavors. They will also be carrying organic brands such as Annie’s due to the increasing demand for organic yogurt all over the world. This dynamic change is supposed to catch up with the change in the behavior of yogurt consumers.  General Mills expects that they will be able to increase their revenues in 2017.

But aside from reinventing its yogurt portfolio, the company is also venturing to other business strategies which include buying well-known yogurt manufacturer Yoplait SAS and Carolina. The company is experiencing stiff competition with other yogurt manufacturers that have already caught up with consumer trends.  While this bold move is very promising for General Mills, the challenge here is how the company will the company restructure its yogurt business to deal with the change in consumer behavior five years from now.

Inspired by fooddive.com

American Consumers Want More Healthy Snacks

Consumers are becoming wiser these days, and they are not only buying snack foods to satisfy their cravings but also to maintain good health. Healthy snacks are the leading category for growth for companies looking to enter the “better-for-you” food market. Companies like Mondelez and Diamond Foods have taken into account the needs and preferences of consumers and are now offering nutritious foods in a variety of snack categories.

The healthy snack market is rapidly growing with a compound annual growth rate of 4.7% on overall sales. In the past two years, healthy bars have led the way in “better-for-you” snacks. The industry has a very positive outlook with a predicted growth of 5.7% per year into 2020.

Healthy Snacks Sell

healthy snacks shopping One of the significant reasons is that there is a rising preference among snackers for products that provide functional benefits. Second, products with “free from” labels are very appealing as many people suffer from different health conditions. Healthy snacks that are labeled gluten-free and allergen-free cater to an entirely new yet growing niche.

In general, adult consumers are snack more than ever before. In fact, 30% of most adults believe that snacking should be a part of their daily meals. They almost all agree that snacks are necessary to achieving daily nutrition requirements to sustain them through the day.

Large companies are Catching On…                                                                                                                     

The popularity of the healthy snack market has led many food manufacturers to invest in new equipment or acquire smaller niche brands. One of the fastest growing snack categories deals with protein based snacks like meat bars, nuts, and more.

Another development is the use of innovative flavors to make the healthy snack products unique. The market uses ethnic-based and other clever combinations to catch the attention of the consumers. This trend is very popular among the millennial and younger snackers who are not afraid to try new snack items as well as use snacks as meal replacements.

Aside from influencing the types of products that we see in the market, healthy snacking has also paved the way for many conventional snacking companies to create healthier snack lines. For instance, companies like Link Snacks, General Mills, PepsiCo, and ConAgra have ventured into the healthy meat snacks and snack bars. Moreover, even small retail stores and private labels have created products to answer the demand of the growing number of consumers who are looking for healthy snacks.

Inspired by fooddive.com

Baby Boomers Want More Clean Label Products

Clean label is a new term used in the food manufacturing industry to depict food as only using simple and natural ingredients. The trend was expected to appeal to the younger consumers, but clean label products surprisingly appeal to the baby boomers too.

Baby boomers or those who belong in their fifties are the ones who readily patronize baby boomers. According to Dr. Elizabeth Sloan, president of the Sloan Trends, Inc., this particular demographic has both the time and money to buy clean label products.

Why Does It Appeal to The Boomers?

baby boomer clean label products real ingredientsConsumers have different reasons for why they opt for products with such labels. Younger people look for products that are all-natural, gluten-free, and organic. Baby boomers have an even simpler reason, and that is to avoid artificial additives in their products. There is an increasing interest for products with clean labels among baby boomers as this age group is starting to experience many health setbacks. The need for clean and natural food is essential to maintain good health for all ages.

In the research conducted by Sloan Trends, they investigated different products with clean labels and the age groups that patronize them. A whopping 76% of the correspondents who are 65 and above opt for products with clean labels for health reasons while contributors who are 50 to 64 gave a higher value for health at 75%.

The Domino Effect of Clean Label Products

There is a domino effect on this buying trend among older consumers. The report from the Organic Trade Association showed that the food sales of organic products in the United States rose to 11% in 2014 which is equated to $35.9 billion. Moreover, one-third of the consumers opts for organic products because they know that the products are all-natural and do not contain GMOs. Many consumers are confused when differentiating organic, non-GMO and naturally-flavored. For instance, a strawberry shortcake may not contain real strawberries but are just naturally flavored with strawberries.

The thing is, while clean labeling a buzzword among many consumers, it remains a very complicated topic that needs to be defined by the experts. The Food and Drug Administration coupled with the U.S. Department of Agriculture should work hand in hand to make it easier for consumers to understand the new labeling as well as the food that they are buying.

After all, clean labeling boils down to one thing: avoidance of artificial additives. Whether you are a boomer or millennial, people want real food made with real ingredients.

Inspired by foodbusinessnews.net