Scott Gottlieb’s FDA Will Continue to Push Food Transparency Measures

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With the focus on deregulation by the Trump administration, many food industry experts worried that the newly appointed commissioner of the FDA, Scott Gottlieb, would roll back pending changes to nutrition labels and consumer information. However, at a recent conference, Gottlieb made it clear that the FDA is going to continue to push for food transparency with Nutrition Facts, labeling, and definitions playing a significant role in the agency’s new nutrition innovation strategy.

Improving the Health of Americans Through Food Transparency

At the National Food Policy Conference in Washington, D.C., Gottlieb let everyone know that the nutrition innovation strategy is meant to improve the health of all American regardless of socioeconomic status.

“Our challenge is to help create more healthful choices and foster inovation and competition, and also make these choices more afordable.” – Scott Gottlieb, FDA Commissioner

A study found that 20% of American deaths in 2015 could be attributed to poor dietary factors. Gottlieb made sure to emphasize the importance of research and facts on everything his agency does. He said that clear science-based information is the central pillar of the work we do at the FDA and is essential to helping drive better consumer choices.

Nutrition Facts Labeling Updates

 

Gottlieb indicated that the new Nutrition Facts labeling initiative is of the utmost importance, but he wants to make sure it is right. He wants to roll out the new label with a consumer educational campaign to help the average American better understand how many calories they should be consuming each day.

On top of the new label, he promised to handle the definition of “healthy” and “natural” for labeling. A core definition of “healthy” is critical to help consumers better understand what they are buying. The new definition will consider nutrient content. Consumers also want more clarity on “natural” which has never been defined by the NDA. While Gottlieb did not offer up much on this definition, he did indicate that it will need to be science-based.

Streamlining the Labeling Process for Food Manufacturers

Gottlieb believes the regulatory labeling process is currently too lengthy and time consuming for food manufacturers. He has added to his docked to streamline the labeling process to modern times. He wants it to be easy for consumers to understand the health benefits of a product.

He wants to make it easier for the food companies to clean up their labels. Interestingly, he used vitamins as an example since they typically appear by their chemical name on the ingredient statement. We believe it should stay this way as most of these vitamins do not come from whole food sources and are chemically derived. Our GrandFusion products concentrate these natural vitamins from fruits and vegetables and as a result, allow products to use a much cleaner ingredient statement.

Conclusion on Gottlieb’s Remarks

The FDA is overall in good hands with this Trump appointee. He is committed to pushing forward all of the Obama-era regulations and making decisions on scientific fact. He believes some of the processes in the FDA are archaic and need updating to work faster in today’s environment. It will be interesting to see all the changes that move forward under Scott Gottlieb’s leadership.

Inspired by www.fooddive.com

Infographic: Organic vs. Non-GMO – What’s the Difference?

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PacMoore recently released an interesting infographic on the differences between organic and non-GMO labels. Most consumers, as well as food brands, struggle to understand what is the difference. The certification and verification process is much different. Check out PacMoore’s infographic to learn more!

organic non-gmo what is difference certification verification

Inspired by https://www.pacmoore.com/organic-versus-non-gmo-labels/

On-The-Go Habits Putting Pressure on Ingredient Manufacturers

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During the CAGNY conference in Florida, Food Dive sat down with ingredient manufacturer, Ingredion, to talk about insights into how CPG companies are planning for growth and adapting to changing consumer preferences. The CEO of Ingredion, Jim Zallie, believes that on-the-go consumption habits are the most challenging for the ingredient industry. The lucrative market opportunity is leading new players in the restaurant and retailer industry to compete with well-known CPG brands.

The Grab-and-Go is Stressing Ingredient Companies to Adapt

Jim Zallie told a consumer analyst group that the grab-and-go market, as well as food ordered online, has reached $110 billion globally. In just one year, from 2015 to 2016, the amount of U.S. on-the-go purchases grew by 56%. Zallie told the audience that this is critical to ingredient companies because of the importance of developing high-quality products that deliver the right texture and maintains heat.

Ingredion North American President, Jorgen Kokke says that texture claims on packaging have increased by over 90% in the past five years.

“We can talk about health trends… We can talk about cost and affordability and sustainability, but underneath all of that, [food] always has to taste good and be fun. And that’s where texture comes in. … We say it’s as important as flavor.”

Jorgen Kokke

Pockets of Growth in Functional On-The-Go Foods

Zallie believes there are “pockets of growth in the food anywhere space.” He points to the fresh refrigerated space as a critical example. The freshly prepared food category is generating over $25 billion in sales annually according to the Supermarket Guru. The clean label trend and simple ingredient trend play significant roles in the development of functional on-the-go foods. With 62% of consumers now looking for recognizable ingredients on the label, it’s imperative to use things they understand.

NutriFusion developed the GrandFusion product line for this very reason. We saw the way synthetic vitamins were reading on the label and thought there had to be a better way. With our products, consumers read fruits and vegetables instead of chemicals, so it makes a lot more sense to them. See the graphic below. If you are interested in learning more, visit our R&D page and download the GrandFusion resource kit to get started with product development.

supplements-ingredients-nutrition-panel-clean-label

New Survey Reveals Why Consumers Buy Plant-Based Dairy Alternatives

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Comax Flavors introduced survey last summer to better understand consumer perceptions around plant-based dairy alternatives. Comax surveyed 1,000 adults in the United States last July that said they used plant-based dairy products at least three days a week.

Why are Consumers Buying Plant-based Dairy Products?

This question about purchase behavior was at the center of Comax’s survey. They found that for most (48%) consumers, the flavor was the top reason why the purchased the plant-based alternatives. The most frustrating takeaway for the dairy industry was that 36% of consumers bought plant-based dairy products because of the perceived health benefits. Dairy industry veterans are annoyed because they believe that cow’s milk is nutritionally superior.

 

The survey also took a look at health and wellness as well as animal welfare to understand better why the rapid growth in plant-based dairy products. They found that the younger generations (millennials and Gen Z) were more concerned and influenced by animal welfare. As a result, they are purchasing more plant-based products all around.

The Plant-Based Category Continues to Soar, and Dairy Fights Back

Non-dairy milk sales have soared over 61% in the past five years to an estimated market size of $2.11 billion in 2017. In that same period, regular dairy milk sales have dropped by 15% to $16.12 billion in 2017.

 

The dairy industry is not going down without a fight and is pursuing a variety of options to challenge the new plant-based dairy alternatives. They are taking plant-based beverages to court over the word “milk” much like how Unilever challenged Just Mayo over the use of “Mayo” in the name. It will be interesting to see how this plays out.

The dairy industry is also trying to diversify with innovative products including carbonated or fizzy milk products. The new products have a longer shelf life than traditional milk which hits on one of the plant-based dairy’s competitive advantages.

Plant-based dairy products are not going anywhere anytime soon. It’s interesting to see why consumers are buying them and it turns out the flavor is the significant factor. The dairy industry will have their hands full trying to slow down this plant-based boom.

Inspired by www.fooddive.com

Daymon Report: Private Label Brands Are Booming

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Daymon, global consumer retail, and private label brand agency, recently published its first Private Brand Intelligence Report. In the report, Daymon analyzes how retail brands and private label brands are competing based on proprietary survey data, category research, and expert insights.

Significant Findings in the Private Brand Daymon Report

Daymon’s analysis found some interesting insights for private label brands and some dangerous ones for national brands. The agency found that 81% of shoppers buy private label brands on every or almost every shopping trip. 85% of consumers in the study indicated that they trust store brands as much as their national counterparts. On top of these shopper stats, private label brand sales are up 4% over national brands in the past 12 months.

Daymon CEO, Jim Holbrook, believes that this is a “renaissance period” for store brands. He attributes this growth in private label to the way retailers are creating one-of-a-kind brands that national competitors are even having a time emulating. Grocery discounters like Aldi and Lidl are causing turmoil for traditional retailers because of their low cost, organic private label brands. The report concludes that the majority of shoppers (60%) want retailers to create more private brands in the fresh products category. Consumers can expect retailers to listen and start competing more aggressively in this category over the next 36 months.

Private Label is Disrupting Retail in a Big Way

 

The Private Label Manufacturer’s Association reports that store brands make up 17% of all grocery sales with a market size of $150 billion. Retailers like Aldi and Target have changed the way consumers think about private label. They now often recognize these store brands with quality and trust. National products are finding it tougher and tougher to compete with lower cost alternatives that are built on transparency and trust.

However, the private label market is facing some inside challenges. Brandless, San Francisco-based e-commerce startup, offers 115 “brandless” private label brands for the same price. For only $36, consumers can get free shipping all year on all orders.

As private label gets more competitive, it’s imperative for retailers to get savvy and compete even more. Simple ingredients and clean label products will be a win-win for store brands. Download our GrandFusion R&D Resource Kit to learn more about how our products can help you stand out from the crowd.

Top 7 Food & Beverage Industry Predictions for 2018

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What can we expect for the year 2018? What do you think the food and beverage industry will bring to our dining tables this year? You may have a lot of questions, but one thing is for sure, delicious and healthy improvements are in the forecast. Concentric, a leading marketing and branding agency, curated the top seven food and beverage industry predictions for 2018. Let’s take a look!

1 – Instagrammable Food Packaging

Is it “Instagrammable?” If it is, then most likely the food or beverage product will be shared by thousands, if not millions, of people on social media. Free and instant exposure—and this makes it a good selling point for manufacturers. Concentric expects to see an upsurge of carefully organized breakfast bowls that may be too appealing to destroy. And of course, brands would delve into the heightened aesthetics of their packaging.

2 – Light Snacking

Small, frequent feedings have been a slogan of a lot of diets which has led to the rise in snacking. Shoppers’ search for light snacks has been in full swing for the past few years. This year will be a bit different with food manufacturers rolling out “light” snacks and drinks, instead of the outdated and overpowering flavors. Food and drink producers are now geared for lighter tasting options like floral enhanced waters, less sweetness, less alcohol, and lighter ABVs as a whole.

3 – Exotic Flavors

More and more US consumers are embracing various ethnic flavors. As the American palate becomes more and more accustomed to International dishes, newer flavors are being introduced in the market. Think in the lines of za’atar, harissa, tahini, falafel, and pita to name a few.

4 – Plant-Based Still Going Strong

While this trend is nothing new, the innovation and technology behind this growth are evolving. The direction of going plant-based is growing by leaps and bounds with introductions like plant-based egg substitutes and veggie burgers. Also, think of foods in the lines of jackfruit and zoodle pasta dishes.

5 – Natural Processing

 

A lot of diets debuted in the past few years totally eliminated processed foods in the diet. So, this may not be new but naturally-processed foods will be a big hit in 2018. We are slowly evolving into the mindset of “less is more.” And this is the niche where smaller companies can explore and seize opportunities by being able to deliver naturally-processed, no-preservative, and higher quality food.

6 – Sustainability and Sourcing

We’ve heard a lot of phrases like farm-to-fork, farm-to-plate, sustainable sourcing, local sourcing, fair coursing, etc.—all these means sourcing and sustainability practices. The food industry is reducing their footprint while making food fresher longer and saving money. It is seen that the food industry is looking into kelp and seaweed for a more nutrient rich and sustainable food option.

7 – Transparency

This has been an age-old fight between consumers and producers, but it is seen that in 2018 food manufacturers are more than ever going to strive harder for brand and food transparency or else risk losing their market. 2018’s consumer is more probing and meticulous when it comes to their food than ever.

Final Thoughts on Predictions

2018 is going to be an important year for the food and beverage industry. Many of the new products and reformulations have been in the works over the past 18 months and their launches will be critical. Be on the lookout for products utilizing multiple trends mentioned above to attract consumers. A variety of products with GrandFusion launching in 2018 will pair plant-based and light snacking trends together. These superfood snacks will pack a nutritional punch from GrandFusion’s plant-based vitamins without impacting the flavor or texture. Interested in learning more? Download our GrandFusion R&D Resource Kit.

Merchandising Strategies Can Boost Better For You Snack Sales

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Researchers at Utah State University conducted a three-month study testing different merchandising strategies at convenience stores to determine if you could improve better-for-you snack sales. Their study found that placing fresh fruit and other healthy snack options near the checkout area plus promoting their beneficial attributes increased sales on many of these items. Another study developed by the National Association of Convenience Stores (NACS) found that better-for-you snack sales increased by 34% when merchandised next to traditional snacks.

What Merchandising Strategies have the Most Success?

Point of purchase displays near checkouts hosting a variety of healthy options from clean label granola bars to whole fruits and vegetables saw the most success in the Utah State study. Food manufacturers have spent much time in R&D to reformulate snacks and create packaging that speaks to the health benefits, but they are losing momentum in retail. Placement and callout need to be improved to showcase why these snacks are so much better for you than traditional ones.

“Both the healthy checkout and better-for-you planogram tests showed that low-cost tactics can be implemented at convenience stores to grow sales of healthier foods. What works in some stores may not work across all stores, but the success of these tests clearly shows that convenience stores can be a destination of choice for better-for-you items.”

Carolyn Schnare, Director of Strategic Initiatives at NACS

Retailers have to buy into the health-focused movement to see the real benefits. It can be a win-win for retailers and food brands as the clean label movement continues to pick up steam.

The Better For You Planogram Study

The better for you planogram study tracked by NACS looked at four low-calorie snacks in a few convenience stores. They found that integrating these products in with fan favorites on the endcaps of aisles significantly boosted the sales. Veggie chips sales were up 119% during the study! Better for you sales and GrandFusion is a crucial ingredient helping snack foods making powerful health claims on their packaging. Our powdered blend of fruits and vegetables stabilizes and concentrates the natural vitamins and minerals so that you can quickly add super nutrition without impacting flavor or texture of your end product. Let NutriFusion help you take your healthy snack to the next level!

M&A Strategies are Evolving in Small Brand Acquisitions

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Big CPG companies have been focusing on growth through acquisitions the past few years. They see small brands as an opportunity to tap into a growing customer segment that they currently have little access to. However, the transition from a small brand into the big company structure can lose the “craft,” and “authentic” feel that makes those brands so successful. 2018 is the year when mergers and acquisitions teams will evolve and apply tactics that ensure the small brand keeps its quality and authentic feel.

How are Mergers & Acquisitions Tactics Evolving?

 

M&A teams are finally noticing that some of the small brand’s most loyal consumers see these deals as the brand “selling out to the man.” These loyal customers matter, because are typically the people that helped the company grow so fast. It is important for big CPG companies to keep brands “local” and maintain the product’s integrity after an acquisition. M&A Teams are focused on the following to keep small brands authentic feel:

  • Keep the founder and initial innovator to maintain the appearance of a healthy marriage. This is important to building continued trust with loyal customers.
  • Basing the purchase price on post-sale performance as well as making small investments in multiple small brands.
  • Allow small brands to continue to operate independently by not buying them outright. Look at Mars’ recent investment in KIND.
  • As soon as the sale is complete, both companies should be working together to tell the future plans for the brand. Look at how General Mills and Annie’s accomplished this over the years.

These Relationships are About Maintaining the Look and Feel

Risks in M&A exist for both the buyers and sellers. The small brands fear that the large company will ignore their mission and vision in pursuit of profits, and big companies fear they will never recoup a return on their investment. The M&A teams are telling both parties to focus on maintaining the look and feel of the brand. Keep the price the same, keep the packaging the same, keep the ingredients the same, at least for a little while. The bottom line here is if it ain’t broke, don’t fix it.

Inspired by www.fooddive.com