Bottled Water is Top Beverage Among Generation Z

For more than a few decades, carbonated drinks and sodas have remained as the number one beverage. In fact in 1998, an average American drank 54 gallons of soda and only 30 gallons of water a year. However, the excessive consumption of soda fueled the country’s rising rates of obesity and type 2 diabetes, and as a result many have shifted to other healthier beverage options. But with the age of Generation Z and Millennials at hand, soda is now being replaced by a pure and unadulterated drink–water.

Bottled Water and Beverage InfographicGen Z and Millennials have been taught to make healthy choices. This is especially true when it comes to choosing beverages. A recent survey conducted by the Beverage Marketing Corporation and Fluent indicated that most Millennials and Gen Z prefer natural drinks like water.

It is important to take note that these generations grew up knowing that soda and sugary beverages are bad for you. This is the reason why many opt to drink water. However, this also creates an opportunity for beverage companies to create healthy drinks to fill in the niche.

 

Bottled Water Tops the List

It is interesting to know that bottled water tops the list of beverages that gen z and millennials prefer. In the survey, 43% of the correspondents consume water seven times per week while 22% consume it with coffee, milk or tea.

The popularity of bottled water as the healthiest alternative to soda and other flavored drinks is the reason why it became the second most popular drink in the United States. Soda companies are shaking in their boots.

What makes it perplexing is that tap water is also available, but respondents still prefer bottled water. In fact, 20% indicated that they solely drink bottled water instead of tap water due to safety concerns (Flint, Michigan). However, more are willing to drink from the tap as long as it has been filtered with an efficient filtering system.

As more and more people have become conscious about their health, water has become the most favored beverage in the country. Unlike other drinks, water does not contain any calories. It makes sense since we need it to survive.

What’s Next for Bottled Water?

The bottled water industry has fast-tracked since people started drinking more water than soda. In fact, an average American today drinks 58 gallons of water compared to two decades ago. That’s a 20-gallon increase since 1998. So what’s next for bottled water?

Industry experts suggest that the bottled water will surely hold on to the top spot for many years to come. But the question whether people will start drinking from the tap is still uncertain unless they are sure about the source of their water.

The popularity of water as the number one beverage allowed companies to develop their line of flavored water as well as enhanced water to appease the market’s growing need for innovation. However, the concerns for plastic can cause a backlash in the industry, and this is something that water bottling companies need to address.

Inspired by beveragemarketing.com

Guilt-Free Products Account for 45% of PepsiCo’s Portfolio

Americans love to eat unhealthy snacks. In fact, the US snack food industry is one of the largest in the world. With many food manufacturers jumping on the health bandwagon, PepsiCo is not an exception. Over the past few years, the company has geared to producing healthier and guilt-free snack products for their health-conscious consumers.

Pepsico’s Chief Executive Officer, Indra Nooyi, noted that most of the sales of the company come from its carbonated drinks. With the reshaping of its portfolio, the company is planning to release more products that use natural and healthy ingredients like fruits, grains, vegetables, and proteins. They also plan on releasing other beverages like water and unsweetened tea to give variation to their consumers.

The company’s plan to sell guilt-free food products will result in changing their entire product line up. In fact, the company noted that the health and wellness focused products account for 45% of the company’s revenue.

 

The Shift to Healthier Options

PepsiCo sees the need to change their products after being criticized for producing beverages that can contribute to obesity, type 2 diabetes, heart diseases, and other metabolic syndromes. Moreover, most consumers today have shifted to healthy lifestyle thus opting for beverages that are made from natural ingredients. With the rising obesity rates in the United States, the company also wants to contribute to solving the problem by releasing drinks that have fewer calorie counts than usual.

 

Benefits for PepsiCo

PepsiCo has always relied on their fizzy drinks to drive their sales up. But since most of the consumers have shifted their attention to healthier beverages, the decision of the company to create guilt-free products has paid off.

The growth of the company by promoting nutritious and guilt-free food products now accounts for 45% of the revenue portfolio of the company. And with the high demand from consumers for healthy products, it is expected that the corporation’s return on investment will grow as more market trends take shape. This trend does benefit not only PepsiCo but also other food manufacturers. Companies are doing their best to focus on health and wellness products as consumers continue to connect food to their health.

With the high demand for healthy snacks and foods, it is no wonder why PepsiCo and other food companies have started producing their guilt-free products. What will PepsiCo do next to stay ahead of the curve?

Inspired by marketwatch.com

Papa John’s Removes High Fructose Corn Syrup from Menu

After decades of being under public scrutiny about serving empty calories to their customers, it is no wonder why many fast food companies have shifted their operations to eliminate unhealthy food ingredients. From McDonald’s kale salad to Chipotle’s sofrito and black bean salad, it seems that fast food restaurants are trying to serve healthier options. The infamous pizza delivery brand, Papa John’s, has followed suit by eliminating the use of high fructose corn syrup from their menu.

This national pizza place is pushing towards creating better and healthy pizza by removing one ingredient from its menu–high fructose corn syrup–on all its food items. This means that the pizza topping, sauce, and even desserts won’t contain this menacing sweetener. This is the first pizza delivery company in the United States to adopt this policy.

 

What is High Fructose Corn Syrup?

High fructose corn syrup is found in just about any kind of processed foods. It is a common sweetener used in creating soda as well as fruit-flavored drinks. It is also used in manufacturing different types of condiments such as ketchup, mustard, and other dipping sauces. This kind of sweetener is made from corn starch that has been converted into fructose. As a sweetener, it is often compared to table sugar. However, manufacturers are more attracted to it because of its low price point.

Excess consumption of high fructose corn syrup can contribute to unwanted calories that are linked to different types of health problems including obesity, type 2 diabetes, high blood pressure, high triglyceride levels, and heart diseases. Thus, the American Heart Association recommends only 6 teaspoons of added sugar for women and 9 teaspoons for men.

The decision for Papa John’s to completely remove high fructose corn syrup is big news to consumers who are looking for fast food chains that serve healthier food options.

 

What’s Next for Papa John’s

Chief Ingredient Officer Sean Muldoon noted that the company is always striving to provide foods made from high-quality ingredients, not only to improve the dining experience of customers but also to uphold their social responsibility.

This is the reason why the company is not only focused on the removal of the high fructose corn syrup in their menu but it is also looking for other ways to serve natural and healthy foods to its clients. For instance, the company is also now looking into using chicken that is raised without any antibiotics. The company has also stopped using fillers, MSG, artificial flavors, BHA, and hydrogenated oils in making their food. They are also looking into creating foods that will cater to their vegetarian and vegan customers.

Hopefully, the dedication of the company to produce better foods by using healthy ingredients will become a signal for other fast food restaurants as consumers continue to connect the dots between food and their health

Inspired by businesswire.com

Fast Food Eaters Are Consuming Industrial Chemicals

Do you like eating fast food? If yes, then you might reconsider your habit after reading this article. Several research studies have found out that people who consume fast food all the time have high levels of industrial chemicals in their bodies.

 

What’s Inside Your Favorite Fast Food?

Research indicates that most fast food items contain the chemical substance called phthalates which are used to make plastic materials durable and flexible. This type of molecule is also found in soap, food packaging, cosmetics, and other consumer items.  The Center for Disease Control noted that exposure to this kind of compound is highly rampant in the United States.

While the effects of the exposure to these industrial chemicals are not yet fully known, scientists suspect that it might have effects on cell development, especially among pregnant women and children. In fact, laboratory research conducted on laboratory rats noted that exposure to such industrial chemicals can disrupt the male reproductive system. To date, the regulation of phthalates and other industrial chemicals is not very strong.

In a study published in the journal Environmental Health Perspectives, a team of researchers studied 9,000 people between 2003 and 2010. The urine samples of the participants were tested for the presence of industrial chemicals. The study indicated that phthalate and another chemical compound called DiNP showed a positive relationship between high fast-food intake as well as exposure.  This means that people who tend to eat more fast-food have more phthalates in their urine.

 

What’s the Solution to our Fast Food Problem?

Although it is still difficult to determine the exact health risk that phthalate exposure provides, it is still important to take extra precautionary measures. For instance, in Japan food handlers are no longer allowed to wear any vinyl gloves during food preparation over concerns of the phthalate exposure. On the other hand, the United States government has also decided to restrict the sale of toys made with industrial chemicals.

Aside from being found in fast food items, they are also found in fruits and vegetables via the plastic wraps that they are sold in. That’s one of the reasons it is always important to wash your fruits and vegetables before you eat them. Industrial chemicals have deleterious effects on the body. Since it is suspected to have adverse effects on the body, some concerned groups are lobbying for the ban of industrial chemicals used on food—particularly fast food.

Moreover, they also encourage people to eat more healthy whole foods like organic fruits and vegetables to avoid exposure to these industrial chemicals. While we don’t have any laws to ban chemicals in our food, we can avoid these chemicals by avoiding fast food altogether. So instead of eating fast foods that are laden with industrial chemicals, eat clean, and enjoy whole foods like fruits and vegetables.

Inspired by fortune.com

What’s Next for Probiotics in Sports Nutrition?

There is a high demand for healthy beverages all over the world, which has given rise to probiotics, cold-pressed, organic, and plant-based beverages. This is the reason why food and beverage manufacturers have started developing sports nutrition drinks that are not only natural but also contain probiotic ingredients to attract a new market of health-conscious athletes and individuals.

Defining Probiotics

Probiotics are live bacteria that are good for the digestive system. In fact, we naturally have probiotics inside us.  The gut is where millions of bacteria live and if the population of your gut microflora is made up of good bacteria, you reap the benefits by having proper digestion as well as a healthy well-being.

So why should you drink probiotics if you already have them inside your body? Unfortunately, abusive lifestyles such as being stressed and eating processed foods can affect the number of good bacteria in your body. Moreover, if you have been taking antibiotics, your good bacteria are also eradicated as antibiotics are not selective when it comes to killing bacteria in the body. Adding probiotics to your diet is an excellent way to replace the population of good bacteria in your body.

Adding Probiotics in Sports Nutrition

Probiotics are already found in many fermented products that we consume. These include sauerkraut, vinegar, kimchi, yogurt, and many others. But many market innovators want to add probiotics to boost foods that do not traditionally contain them.

The use of probiotics as a primary ingredient in sports nutrition is becoming a popular trend and is expected to reach a global market value of $46.55 billion in the next four years.  For instance, companies like Ingredion, GoodBelly, and NextFoods Inc. are aiming to tap into the sports drink market by improving their product using probiotics. Soon, many companies will also join this trend and will create probiotic product lines that are not only limited to beverages but also protein bars and snacks.

The Rising Demand of Probiotics

In a recent survey conducted by Ganeden, it was noted that 70% of the consumers are open to consuming probiotics in food instead of supplements. The respondents also mentioned that they are willing to pay more for healthy foods especially those containing probiotics.

More and more people are becoming health conscious. They are aware and picky when it comes to what they are eating. People are now interested in looking for food that can give them more health benefits. The increasing demand for healthy and functional foods is the reason why food and beverage manufacturers are developing ways to incorporate probiotics into their products.

For now, probiotics are seen primarily as a potential ingredient for sports drinks, but manufacturers are innovating for the future use of probiotics in fruit beverages, baking mixes, granola bars and much more. It is forecasted that probiotics are set to make appearances in different types of products not only in sports nutrition but also in functional day to day products.

Inspired by fooddive.com

Half of Cropland Acres in the U.S. Were Devoted to GMO Crops in 2012

Farmers in the United States have been using genetically engineered organisms or GMO crops since 1996. These plants are modified so that they can resist pest and tolerate harmful pesticides. Genetically modified seed companies were so successful that 90% of the corn, cotton, soybean, sugar beets and canola are GMO crops. While crops like squash, papaya, and alfalfa are now being cultivated using genetically engineered (GE) varieties.  If you go to the countryside and admire acres of farmlands, you might just be surprised how many farms are planting GMO crops.

Acres of Lands Planted with GMO and Non-GMO Crops

According to USDA, there are about 182 million (of the 380 million) acres of agricultural land in the United States that have been planted with GMO crops of which 90% is planted with soybeans and corn while the rest with beets and cotton. Only 0.6% and 0.3% of said agricultural land were planted with genetically engineered varieties of vegetables and fruits.

On the other hand, there are only 5.4 million acres of farmlands that are certified organic farming systems. Only half of the organic system is used as a cropland because the rest is used for pasture. Out of it, only 0.3% is planted with non-GM corn and 0.2% with soybeans.  A large percentage of the cropland is planted with organic carrots, lettuce, squash and other vegetables.

 

Market Value of Non-GMO Crops

The USDA reported that organic corn and soy fetched higher prices than its GMO counterparts. While conventional farming resulted in more production, the consumers have shifted to patronizing organic products. In fact, most GE crops are now used to create processed foods and other food ingredients like breakfast cereals, corn chips, corn syrup, corn oil, soybean oil, and canola oil.

The non-GMO crops, on the other hand, continue to expand and co-exist with conventional crops as more and more people are looking for organically-grown foods and produce. This is the reason why many organic retailers are looking for additional assurance when it comes to labeling and differentiating their organic foods from the GMO crops. This is also to ensure that they get price premiums associated with organic cultivation.

 

Problems with GMO and Non-GMO Co-Existence

While it can be inferred that both GMO and organic crops can co-exist, there are still some problems related to its co-existence. The most common problem is how to maintain the integrity of the non-GM crops. Accidental pollination or co-mingling of the two types of plants is bound to happen which can result in a price drop of the premium organic food.

As a matter of fact, organic farmers from Nebraska, Oklahoma and Illinois have reported economic losses due to co-mingling of pollen. Unfortunately, this phenomenon has resulted in lower yields due to incompatibility. There are solutions implemented by the local organic farmers.  Practices such as the use of buffer strips can help protect the non-GM crops. Moreover, planting organic corn two to four weeks later than the conventional GMO crops can also prevent cross pollination.

Inspired by usda.gov

The Organic & Natural Health Association Scrap Natural Certification

Recently, the Organic and Natural Health Association held its first ever national conference. Among those that attended included thirty-five leaders in the industry of natural products. The CEO of the Association, Karen Howard, as well as former Senator Mark Pryor led the conference discussions on a new certification in the food industry.

 

The CEO set the tone of the conference by announcing the board’s conclusion after they had assessed the definition of “Natural.” The board’s decision is not what most of the industry would have liked to hear. It was concluded that the term “natural” could not and should not be used as a form of natural certification seal. More so, it should not be used on the product labels or even listed there. For most consumers, “natural” labeled products may soon be a thing of the past. However, the board did say that the term “natural” could be used in the description of particular attributes of the product in materials that are used for marketing and promotion.

Organic vs. Natural is Confusing Consumers

 

According to the research, it was assessed that the term “organic” and the term “natural” are quite confusing to the consumers. When the user is faced with a natural product, they would expect that it was automatically organic, and this is not the case. In the meeting, it was also noted that the consumer has a problem differentiating both of the products. It was this research among other factors that led to the conclusion that the board would not be considering a new “natural” certification seal. The primary reason was not to confuse consumers.

The director reiterated the necessity of increasing focus and encouraging people to go organic. For this, the institution would focus all their energy and resources to strengthen that program and the existing organic certification seal. The first order of business for this would be to support  Organic 3.0. The movement is being led by IFOAN Organics International. The intention is to have leading innovations that are geared towards providing people with sustainable agriculture and healthy products.

Since the public is more reliant on the labels that identify foods as natural, the CEO said that they would also try to make information more accessible to the public on how to identify foods that are organic.

At the same meeting, Howard announced the launch of the “Power of D” campaign which is a year-long outreach campaign that will focus on the benefits of Vitamin D. For this; they will also have an advisory board that helps to tear into the research backing the benefits of the vitamin.

At the close of the conference, the former US senator Mr. Pryor gave his two cents on how to reach out to the office of the attorney general regarding the adverse climate of the supplement industry. He went at length on how the office of the attorney general could help in the practice and how the interaction between the members of the attorney general’s offices and those of the Organic and Health Association would be beneficial.

Inspired by organicandnatural.org

Trader Joe’s Starting a Price War With Whole Foods

Trader Joe’s is looking to tip the scales according to findings by Deutsche Bank. In a recent price comparison that was conducted by the bank, it was found that Trader Joe’s had a basket of 77 items that were 26% cheaper than their primary competitor Whole Foods. It is expected that the looming war will continue as organics continue to warm their way into the hearts of most people. It is more than evident that Trader Joe’s has taken an early lead in that war with their bitter rival Whole Foods Market.

While you might be tempted to call this a foul cry, the bank had conducted previous visits to the stores, and while Trader Joe’s had maintained a lower price overall, it was never of such a high magnitude. This was when the bank realized we are in the middle of a price war.

Whole Food is in Trouble

Even worse for Whole Foods, the retail grocery hack on prices extends to the private label brands. Trader Joe’s private labels were found to be 15% less costly than Whole Foods. That is not the end of it. Whole Foods private labels have consistently tried to match up with Trader Joe’s over the years, but they will face difficulties matching the price because of the high-quality ingredients in their products.

Trader Joe’s is also growing and recently hit the 500 stores mark. The discrepancy in their pricing led one analyst from Deutsche Bank to deduce that this was the stores way of making a price investment. This is what equates to a discount in the world of grocery retail. This is not the first time that Trader Joe’s has slashed prices catching Whole Foods with their pants down. Just over three years ago, the organics foods store slashed prices of more than 200 of the items they sold. The effect might not have been as significant then considering that the store had only 300 stores. Another analyst shared her concern that Trader Joe’s might be trying to set up Whole Foods Market. In recent times, there has not been such disparity in the pricing of the store, and this could be a sign that they are trying to set up their rivals. According to the article in Fortune, the spokesperson for Whole Foods was unavailable for comment.

How Will Whole Foods Adapt?

After exposing that their comparable sales dropped by 1.8%  in the last quarter and expected to fall another 2% by the end of the year, the last thing that Whole Foods would need right now is a price war. On a lighter note, the store does expect to have its sales rise by 3% to 5% as a result of the increased number of stores.

Later in the year, the Whole Foods is expected to open their first 365 concept store. It would be the first in their cheaper chain of stores that are geared to targeting young customers that can’t afford to shop at organic retailers like Whole Foods and Trader Joe’s.

A positive move forward for Whole Foods will be to reign in the prices on perishable items like produce and dairy. The study by Deutsche Bank found that the price gap was larger than 25% for these items. Whole Foods will hope that the 365 concept store shows promise as they try to make it through the organic retailer price war in 2016.

Inspired by Fortune.com