Evolving Views of Healthy Eating Strain CPG Sales

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The consumer packaged goods industry sky-rocketed after World War II when people suddenly realized that it takes a fraction of a time to prepare meals with processed foods than with whole foods. Consumer packaged goods (CPG) are sold quickly because they are convenient and useful for a variety of household jobs. Fast-forward today, the popularity of consumer packaged goods is starting to dwindle as more consumers are becoming conscious about their health and the environment.

Corporations Are Suffering In Sales Decline

In fact, the sales of consumer packaged goods have started to decline as observed during the first quarter of 2017. But this isn’t news and brands knew that consumers shifted to using healthy and environmentally-friendly products. Giant CPG manufacturers have reported a decline in their sales. Companies like PepsiCo, Procter & Gamble, and Nestle have all reported lower CPG sales but are still expecting things to pick up soon.

In a survey conducted by Nielsen, the purchase of consumer packaged goods in the United States has dropped by 2.5% in unit sales in the first quarter. Most of the companies blame the dip in sales to the changing mindset of their customers.

Reason For The Sales Decline

Customers these days demand fresh and healthy foods, which most CPG companies are not experts in manufacturing. The changing mindset of consumers forced major food manufacturers to reformulate their products to contain less salt, preservatives, and sugar. Aside from reformulating their products, they also rebranded their image by offering more health-focused products.

While such initiatives will help big manufacturers pick up their sales, analysts notice that more major brands still find it difficult to gain back traction as smaller startups are emerging and filling the needs of consumers. Startups are in better position to adapt to the changing requirements of the customers. According to Nielsen, startups are growing at a steady rate of 2.4% annually. This is probably the reason why many big brands are also looking into investing in smaller companies.

Startups Taking The Lead

So why is it difficult for major manufacturers to rebrand their image? These big companies have always been known for their products, and that is their legacy. Changing the reformulation of their products may lead to the alienation of their core customers who might not like the new taste and appearance of the new product.

For instance, Coca-Cola experienced a rebranding disaster during the 1980s when it revamped its formula and offered Diet Coke, but they were still able to pick up their sales and move forward soon after. Still, consumers have a mindset that if the product from a smaller startup has similar nutrition profile than its counterpart produced by giant companies, then they will opt for new things. Most consumers believe that startup companies can offer new things better than well-known CPG brands.

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Eating More Plant Proteins Can Reduce The Risk Of Diabetes

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Plant protein benefits are currently widely studied and acknowledged by doctors, scientists, and nutritionists. Plant-based food manufacturers are developing different products to provide many options not only for vegans and vegetarians but also for new flexitarians.

Researchers have noted that many people eat too much meat and not enough vegetables and fruits. The National Institute of Health issued a guideline for physicians to recommend to their patients to eat plant-based proteins as an alternative to animal protein and as an effective way to reduce the risk for high cholesterol levels, high blood pressure, high BMI, cancer, and type 2 diabetes.

The Study On Type 2 Diabetes And Eating Plant Proteins

Latest studies reveal that consuming less animal meat, particularly processed meat and replacing it with nuts, whole grains, and other plant-based sources can significantly reduce the risk of type 2 diabetes.  In fact, a study published in the British Journal of Nutrition noted that eating even a hundred grams of unprocessed meat every day can increase the likelihood of getting type 2 diabetes by as much as 19% while consumption of processed meats was linked to a 51% risk.

The long-term study involved 2,332 Finnish men between the age 42 and 60 years old. The respondents were examined according to their protein intake and their risk for type 2 diabetes. The study found out that replacing 15 of calories from animal protein with the same amount of plant protein can decrease the possibility of type 2 diabetes by as much as 18%.

 

The Shift From Animal To Plant-Based Proteins

New research concerning the harmful effects of red meat on health has pushed many consumers to eat healthily. In fact, the consumption of red meat in the United States fell by 33% since 1970 to about 101 lbs. per individual per year while the number of vegetarians has remained stable at 3%. Meanwhile, the number of vegetarian products has doubled over the past decade.

Studies about the health benefits of plant-based diets have encouraged some meat eaters to incorporate more plant proteins in their meals. This has also led to many food companies like Tyson to invest in companies like Beyond Meat.

While it pays to be a vegetarian, the Academy of Nutrition and Dietetics noted that not all vegetarians are equal. For instance, vegetarians who consume eggs and dairy can get their daily dose of healthy protein while vegans need to eat a broad range of grains, nuts, and beans to supplement their protein needs.

More and more people are encouraged to eat plant proteins, and food manufacturers can play a paramount role as they fill this particular niche.

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Effective Packaging Design Is Key To A Successful Start-Up Brand

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In today’s social media-driven world, the competition of food and beverage brands can be tough. No longer should companies settle on traditional commercials on TV, print ads, and radio. Brands are now placing importance on effective communication through design.

Packaging design is an important element in getting a particular brand into people’s minds and hearts. An effective packaging design can catch the attention of the consumers encouraging them to engage and buy new products.

Why Is Effective Packaging Design Beneficial?

Packaging design is beneficial for start-up companies, and they don’t need to enlist the help of a million-dollar advertising firm to get their message across their clients. Never underestimate the power of an effective packaging design because coupled with social media advertising, it can catch the attention of people from around the globe.

Startup companies who wish to make their brand well-known should seek the help of an active brand designer. Startups need to communicate with the brand designer to incorporate the potential of the product in the branding and also make it appealing to its intended target market. Knowing the target market is crucial in designing the packaging that will conform to the preferences of the targeted consumers.

For instance, the company Bear produces kid’s snacks, and it went to great lengths to create an effective packaging design while incorporating collectible cards and codes to make it look fun for children. By the end of 2015, the company became the largest children’s fruit snack company in the United Kingdom.

 

Adding Personality Is Important In Packaging

Every brand needs to show people the company’s unique personality. It is important to take note that packaging is the unspoken way of making introductions. A package design that is unpretentious is considered more appealing for everyone. In most cases, using humor and wit is very useful in branding, which can be evident in the logo, type of fonts used and other elements used in the brand. It is important to take note that none of this wit and humor will be useful if the product isn’t also good. Simply put, effective branding should conform to the quality of the product being represented by the packaging.

Effective branding due to package design always works best if the product is made out of passion. If a product is conceived out of passion, everyone–the creator, brand designer, and consumers–will all believe in the product that is being promoted. Without passion, startup companies find it hard to sell their products even if the packaging designs are appealing.

The success of a startup relies so much on the brand designer and how he or she can turn words and visions into reality–a real brand. A brand designer does not only understand the market, but they also know the product and the company. With an effective packaging design, everything is balanced.

Inspired by www.foodbev.com

Coca-Cola Rolls Out New Healthy Soda With Fiber

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With most people opting for healthier beverages, it is no wonder why Coca-Cola is brewing up a new concoction to capitalize on the growing trend. As soda sales have slowed to all-time lows over the past ten years, Coke is trying to bring a healthy soda to market that’s calorie-free, sugar-free, and loaded with fiber.

Coca-Cola Plus Fiber in Japan

The company spent more than ten years developing the beverage and was inspired by Metamucil. It claims to be useful for moving things through the digestive system. Although the product is only available in Japan, the company is confident that it will be patronized in all parts of the world.

So what does this Metamucil-inspired soda contain? It comes with five grams of fiber, which is 20% of the recommended daily needs of an average person. According to CEO James Quincy, this type of soda is one of the functional beverages that the company wants to introduce to consumers. The company is also planning to roll out a fiber packed version of its Canadian ginger ale.

This is not the first time that the firm has reinvented some of its products. In fact, Coca-Cola was very successful in marketing their low-calorie brands such as the Diet Coke and Coke Zero. Over time, the soda giant has reformulated its product, adjusted its ingredients, and improved its taste using natural ingredients. The fiber-rich soda is a testament that the company will go to great lengths to reinvent their brand to fill the needs of the changing times.

But Will It Be Popular Just Like The Others?

Coca-Cola has good intentions for producing this beverage, but the question is will consumers patronize it? Professor Marion Nestle from New York University doubts that it will. The nutrition and food studies professor also noted that Coke fanatics just do not want their soda to be tampered with and those who are seeking fiber in their diet can find other sources instead of relying on this product.

Another nutritionist, Felicia Stoler, noted that while the functional beverage niche is currently hot, this functional soda will not help alleviate the lack of fiber in the Western diet. She believes that people can get their daily fix of fiber by eating more fresh fruits and vegetables instead of gulping more Coke.

Nutritionists believe consuming too much artificially sweetened, and fiber loaded Coca-Cola may also give rise to other problems. In a study conducted by researchers from the Boston University School Of Medicine, they found out that consuming “healthy” artificially-sweetened drinks every day can increase the likelihood of stroke, Alzheimer’s disease, and Type 2 diabetes.

Global sales for Coke fell by 1% last year. But the company is still positive in their move as their aim is to provide more options to sophisticated drinkers as well as catch the attention of health-conscious individuals.

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More Than 82% of Americans Bought Organic Food in 2016

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Organic food has become more popular over recent years. In fact, more than 82% of American consumers have bought certified organic foods since last year, and the growth is increasing by 3.4% each year.

According to the survey conducted by the Nielsen company and released by the Organic Trade Association (OTA), more than 100,000 households indicated that they had bought organic foods recently. Out of these families, 14.2% of the respondents hail from North Dakota followed by Rhode Island at 12.3%.

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There is a growing trend when it comes to the consumption of organic foods. In fact, according to the OTA, the sales of organic produce rose to a record $43.3 billion in 2015 with an estimated growth of 11% annually. This increase has led to the proposal of different research and promotion of more organic products.

In fact, the USDA released a plan to create an industry-funded program called the check-off program that would certify many agricultural products as organic. This program imposes a small fee on each sale made by the producers. The funds generated can be used for research and promotion of organic products.

The Popularity Of  Organic Food

So why are people opting for organic foods? The reason why 60% of American consumers opt for organic foods is for health reasons.  One of the biggest shares of the organic market is organic milk as more and more people are concerned about getting bovine growth hormones from milk obtained from conventional dairy farming practices. Aside from milk, the sale of organic baby food is also increasing.

But what does it take for a product to be considered organic? Aside from being grown in organic means, organic products should also be made without the use of chemicals like fertilizers, pesticides, and hormones.  They should also not contain any preservatives.

The Future Of Organic Foods

While the organic food market is increasing, it still occupies a small segment of the food industry. In fact, it only consumes 2% of the pie in the entire food industry.  Speaking on the future of organic food, even large-scale supermarket chains like Safeway and Target are now providing organic food offerings to their customers.

Aside from supermarket chains supplying organic foods to consumers, there are also many large-scale organic farms in the country. The advantage of such a large agricultural setting is that it tends to decrease the price of organic products as well as improve distribution to consumers. Aside from the benefits for customers, large-scale farmers earn competitive returns from their products.

There is indeed an increasing demand for organic products in the United States, but the market is lagging behind European countries where all supermarkets carry organic brands. Although this may be the case, the United States is off to a good start.

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Kale: The Most Popular Ingredient In Your Pantry

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Many types of superfoods are available for consumers and kale is one of them. Kale is considered as the hottest superfood over the past few years.

You can find it in your baby food, vitamins, supplements, and tons of new clean label food and beverage products. The popularity of the green plant has even gone past food. For example, even some nail polish brands are infused with kale essence to strengthen nails supposedly.

Kale-Infused Products Show Increase In Sales

According to a market analysis conducted by Nielsen for MarketWatch, kale is being infused into snacks, pasta sauce, sausages, and even pet food. You can also find it in your favorite desserts like frozen yogurt and even cakes. The sales of kale-infused vitamins and supplements, for instance, grew by as much as 125% over the last year.

kale marketwatch nielsen study products superfood

While kale-infused products are very popular, consumers should not be too swayed. For example, many companies add a small amount of kale in their products even if they are obviously junk foods to look like they are healthy. Unfortunately, kale is used as a marketing ploy to give unhealthy food a health halo.

Marketers Using It To Their Full Advantage

It is not only junk foods that use the green plant as a marketing ploy. Many supplements appear to use kale as ornaments in marketing their products. Kale powders, for example, encourage people to get kale in powder form thus defeating the purpose of eating the real thing.

The idea of taking it in powder or pill form might be enticing to people who are not a big fan of this leafy green. However, they are devoid of fiber resulting in a lot of missing nutrition.

Should You Eat The Real Thing Or Not?

According to Kristin Kirkpatrick from the Cleveland Clinic Wellness Institute, the addition of kale in food products does not mean that you are getting a full serving of this leafy green. Most of these kale-infused products are often processed with a lot of oil, salt, and sugar to make them taste better than the unadulterated ones.

In conclusion, the best way to get your fix of this superfood is to eat the green vegetable itself. While kale-infused products are an excellent way to slightly supplement your daily needs, they are not enough to meet your daily requirements. Prepare kale in salads, stir-fry, and slaws to get the most out of it.

Inspired by www.marketwatch.com

Almost 80% of Consumers Look For Products With a Fewer Ingredients

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Most consumers these days think about their health and the environment whenever they are shopping. According to the Market Lifestyle of Health and Sustainability (LOHAS) of 2017, shoppers are opting for products that have fewer ingredients and clean product labels. Activities related to this include buying plant-based, non-GMO, and organic products to show support to the planet and their health.

In the same study, 8 out of 10 consumers are now conscious, about their health and opt to buy products with fewer ingredients that they can understand and pronounce. Most consumers are not afraid to ditch their old grocery stores for shops that offer products with clean labels. This resulted in the popularity of farmer’s markets and health food stores.  As a result, many of retail supermarkets are now carrying clean label products to increase their market reach.  Examples of these retail giants include Trader Joe’s, Whole Foods Market, Target, and Price Clubs.

Millennials Opt For Clean Labels with Simple Ingredients

consumers want fewer simple ingredientsBut who drives the whole clean label movement? In the survey, Market LOHAS noted that millennials occupy most of the pie, at about 60%, while the older generation is not so keen on the advantages of clean labels.  The younger generation worries too much about the effects of using harmful ingredients in food while the older consumers stress the importance of allergy related label claims.

The thing is that more and more Millennials are health conscious because this is the generation of sick people. With the presence of fast-food restaurants and a plethora of processed junk food, it is easy for this generation to suffer from metabolic-related diseases like obesity and Type 2 diabetes.

What Drives Their Purchase

Almost 70% of Americans buy free-from food products mainly for health and nutritional reasons. In fact,  personal well-being is one of the most important driving factors that push people to buy products with clean labels. There is also a growing belief that free-from foods are also linked to having a healthy planet. For instance, cage-free poultry is believed to be better for the body and the world because the animals are grown in a humane way.

Another driving factor that pushes people to buy products with clean labels is the company’s ethics. In fact, 56% of the respondents claim that they refuse to buy from a company whose products are perceived to be produced by unethical means. This has also driven companies to adhere to better policies when it comes to manufacturing their products.

Consumption of products with clean labels is not only healthy and ethical, but it is also sustainable for the environment. While more expensive, people are willing to spend extra more to be able to buy products that they believe are not only good for their health but also the environment.

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Frozen Fruits And Vegetables More Nutritious Than Fresh Ones

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There is this old belief that eating fresh fruits and vegetables is better for the body than eating them frozen or cooked. However, a new study conducted by researchers from the University of Georgia revealed that frozen fruits and vegetables are as healthy as fresh ones.

The Hurdles Of The Frozen Produce Industry

This is good news as more and more people are buying foods that are frozen due to convenience. Food companies, to increase the shelf-life of their products, opt for different types of preservation techniques including flash freezing. This technique quickly freezes food so that they retain their flavor and freshness longer.

Although flash freezing allows food manufacturers to provide different types of frozen foods to customers, the idea of consuming frozen foods has a bad rap. Many consumers believe that eating frozen foods are less healthy because they are more “processed.” In fact, a report released by the survey company, Packaged Facts, revealed that while 75% of American household consume frozen fruits and vegetables, the sales have remained identical to the 2012 sales.

While the industry of frozen produce has not shown much growth over the last few years, there has been a surge in sales of fresh fruits and vegetables. The report shows that this industry has earned over $62 billion within the last four years indicating that it has a yearly growth of 3.8%.

Frozen vs. Fresh: Fruits and Vegetables

To dispel the belief that fresh fruits and vegetables are way better than frozen foods, the researchers from the University of Georgia worked with the Frozen Food Foundation. The study analyzed the nutritional value of frozen foods and compared it with those of fresh produce.  They inspected food like frozen blueberries, corn, strawberries, cauliflower, broccoli, spinach, and green peas.

So what did the study find out? Researchers revealed that frozen foods contain the same, if not greater, amounts of vitamin A, vitamin C, and folate than most fresh fruits and vegetables. Researchers found the results staggering and believe that frozen fruits and vegetables are better at nutrient retention than their fresh counterparts.

One of the reasons why frozen fruits and vegetables are healthier is that they are matured properly before freezing. When fruits and vegetables are harvested, they start to lose nutrients. But since frozen fruits and vegetables are frozen shortly after being harvested, they are allowed to fully ripen and retain high amounts of vitamins and minerals that are locked within their frozen cells.

Contrary to popular belief, freezing fruits and vegetables does not destroy the natural nutrients found in food. So the next time you go shopping for fruits and vegetables, make sure that you think about frozen ones too.

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