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

Sales of Pet Food Growing Faster Than Packaged Human Food Sales

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Pet manufacturers have been racking up the sales from their pet foods over the past few years. They have been doing so well that they are now growing faster than packaged human food sales. The video above digs into a little more detail on just how quickly pet food sales are growing.

The latest acquisition in the pet food space shows how big pet food brands can be. General Mills recently acquired Blue Buffalo for $8 billion. Mars also purchased VCA pet care provider in 2017 for $9 billion to go with their purchase of IAMs for $3 billion 2014.

So Why so Much Capital Investment in Pet Food?

The $30.6 billion U.S. pet food market is expected to grow by 2.3% over the next five years compared to 1% in packaged human food. The fast-growing pet food market is not slowing down anytime soon, and investors want to grab profits while the industry is hot.

NutriFusion Adds Plant-Based Vitamins & Minerals to Premium Pet Food

Why does NutriFusion care about the pet food market? We developed a patent-pending method for stabilizing the naturally occurring vitamins in fruits and veggies. Premium pet food manufacturers are in love with our product because now they don’t have to add synthetic supplements to their fantastic products. With our grandfusion blends, you can dial in the exact amount you need without losing large percentages in the production process. Interested in learning more? Download our GrandFusion for Pet Resource kit today!

Starbucks is Working on Blockchain for “Bean to Cup” Tracking

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Starbucks released this week that it is working with blockchain technology to create a “bean to cup” tracking system. The innovation is driven by the consumer’s desire for more transparency into where food and beverages come from. Starbucks is launching the pilot program to track coffee beans from Costa Rica, Rwanda, and Colombia.

Starbucks + Blockchain = Coffee Traceability

The premium coffee company believes that blockchain’s “traceability technology” pairs well with their commitment to ethically sourced coffee and ecologic sustainability. Starbucks believes the technology will enable them to strengthen their supply chain and relationship with consumers.

The blockchain pilot program will go through multiple phases over the next two years. The pilot will fall in line with the Sustainable Coffee Challenge that the company championed with Conservation International in 2015. The company plans to share its results with the public.

Shortcomings of Current Blockchain Technology for the Food Supply Chain

The traceability of coffee beans to the cup is a noble cause by Starbucks, but it is worth noting that there are still some shortcomings with blockchain technology when applied in the food industry. Food supply chain experts still believe the “winning” blockchain application has yet to be developed for the food industry.

There are currently issues with entirely tracking that ingredient to the final product in many cases. IBM is working on a few innovations to help solve this issue. They believe that “cryptographic anchors” may be the solution in the next five years. Anchors would include microscopic, digestible ink dots on products to verify the authenticity of the final product within the supply chain.

While there are a few shortcomings, Starbucks is again leading the way with technology in the food industry. It will be interesting to see how blockchain works for them over the next few years.

Inspired by www.ciodive.com

 

Bowery Startup Building World’s Techiest Indoor Farm

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With space becoming limited in urban areas, people are looking for ways to start indoor farms. Vertical farming is popular in urban areas because you can grow food in vertically-inclined surfaces or layers. Buildings and warehouses are being transformed to create vertical indoor farms.

When it comes to vertical farming, startup company Bowery is taking the lead by building a facility that allows people to do indoor vertical farming. The facility will be in Kearny, New Jersey and what makes this facility different is that it will be the most tech-savvy in the world. The company was able to raise $20 million from investors like GGV, General Catalyst, and GV to build its new indoor farm.

The Technology is the Key to Indoor Farm Production

The new facility can grow 30 times more than current indoor farms and it can supply 100 types of leafy greens to its customers. Recently, the company partnered with companies like Foragers and Whole Foods. The company is increasing efficiency by using machine learning, robotics, and predictive analytics to grow food. Bowery has developed a proprietary software system with a robust network to automate the farming practices.

Bowery CEO, Irving Fain, noted that the software is the brains of the farm. It can make small adjustments to changes in water flow, humidity, temperature, and light intensity to grow the best crops. The use of precision-level technology to control the environmental parameters is seldom used in agriculture and the company is keen on being the first to deliver this technology at an unparalleled level.

With this technology, Bowery is able to be 100 times more efficient when it comes to growing food compared to a square-foot of farmland. There is also no downtime as Bowery can grow food all year round and is not at the mercy of the changing seasons. The startup also does not use agri-chemicals like synthetic pesticides and fertilizers to grow food but surprisingly is able to produce higher yields for each crop cycle. This is definitely not doable when implemented out in the open field.

 

Fewer Middlemen Between Food and Consumers

The crops are grown through a system called hydroponics. This “soil-less” system uses substrates such as pebbles and rocks submerged in nutrient-rich waters to grow crops. But while the National Organic Standards Board has voted hydroponics as organic, Bowery is focused on growing post-organic food. The thing is that organic produce still uses pesticides, but Bowery does not use it at all.

This urban vertical farm provides food immediately to the neighborhood. Since the farm is located in the heart of New Jersey, the food produced goes to the local tri-state area. And since the food is grown close to the consumers, there are not so many players that sit between the food and the consumers which keeps the cost of the food down.  If more of these farms are built in the United States, it can provide fresh and healthy foods to all income levels and areas.

Inspired by fortune.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

Trends: Consumers Want More Functional, Healthy Beverages

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Consumers approach wellness in a holistic view these days. They prefer foods that come are organic and GMO-free, and other clean label cues. This trend is taking over drinks as well as more consumers want functional and healthy beverages.

The Trend for Healthy Beverages

Innova Market Insights, a Netherlands-based company, noted that many consumers are now becoming savvy when it comes to buying their favorite drinks. In 2016, a trend regarding the rising consumption of functional beverages rose to 27.2% from 12.6% in 2012. This means that more people opt for drinks that are fortified with vitamins and minerals or those that contain high amounts of protein for muscle buildup. These drinks are touted for their health benefits. The result is many companies in the US and UK are shifting their focus to healthy beverages to supply the growing demands of the market.

coco cocktail nutrifusion refresh alcoholic beverage

Aside from functional beverages, there is also a growing trend called “lighter enjoyment” where consumers are opting for alcoholic drinks that have lighter alcohol content and more flavor and texture to reap the benefits of the alcoholic beverage without the need to be intoxicated.

Today’s shoppers are taking health and other wellness-related matters into their own hands, and this has created a niche within the beverage industry to meet the growing demand. There is an increasing number of consumers who are following healthy routines such as training and exercising, so they need a drink to support their lifestyle.

The Effect of The Healthy Beverage Market

So why are many people turning to healthy foods and beverages instead of medicine? People who are not getting their desired results from traditional medicine are trying out health and wellness products. The trend here is an opportunity for companies to innovate their products into functional food and beverages.

This is where personalization of products comes in as people have different preferences when it comes to their health and wellness. For instance, people who follow specific diets tend to avoid specific ingredients in their beverages. So the traditional, one-size-fits-all approach to creating drinks is no longer a reliable concept for manufacturers.

 

Many shoppers are making more focused and informed buying decisions. They are very mindful of the types of products that they buy.  Aside from the kinds of ingredients, the “why,” as well as the “how” behind the product, is an essential factor in the decision making process of today’s shoppers. This adds another layer of complexity to the food and beverage industry to develop products that will appeal to more educated customers.

Beverages attribute to more than $11 billion in global sales, and these highly competitive functional drinks are slowly creeping up to make up a quarter of the market. In fact, functional and healthy beverages made $3.1 billion in sales last year, and the projections seem to grow more by the year.

Inspired by www.bevindustry.com