Consumers are Confused about “non-GMO” and “organic” Labels

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The Meatingplace reported on a new study conducted by researchers at the University of Florida’s Institute of Food and Agricultural Sciences. They found more results pointing to confusion amongst consumers when evaluating “non-GMO” and “organic” labels.

How the Study Worked

Researchers based their findings on a national survey of 1,132 respondents. These people were specifically asked about their willingness to pay more for food labeled as non-GMO or genetically modified. The two products that the researched focused on were a 12-pack of granola bars versus fresh apples. The evaluated how much more respondents would pay for either of these items labeled as “Non-GMO Project Verified” or “USDA Organic.”

Their Findings Showcase Confused Consumers

The team of researchers found that consumers will pay $0.35 more for a 12-pack of granola bars with the “Non-GMO Project Verified” label on the packaging. However, the “USDA Organic” label did not hold as much weight, as consumers would only pay $0.09 more for the granola bars.

When consumers looked at fresh apples, things changed. Consumers were willing to pay $0.35 more for a pound of fresh apples labeled as “Non-GMO Project Verified” while they were willing to pay $0.40 more for the same pound of fresh apples labeled as “USDA Organic.” It seems that the “USDA Organic” label carries more weight in fresh produce than processed foods based on this study.

Why are Consumers Confused?

Consumers have almost done this to themselves as they have demanded more product transparency from brands over the past few years. Food companies are scrambling to add claims that stick out and show their food is “real.” Label Insight showcased last year that consumers find it difficult to understand if a product meets their needs by looking at the package.

What’s interesting about this new study from the University of Florida is how consumers are confused about “organic” and “non-GMO.” According to the USDA, the use of GMOs is prohibited in “organic” foods. So in reality, all organic foods are “non-GMO.” However, not all “non-GMO” foods are organic. Which makes it even more interesting that consumers are willing to pay more for packaged products with the non-GMO project verified logo.

The bottom line is education is needed on this subject. As food manufacturers invest in more organic foods and certifications, they expect consumers to be willing to pay more. This could spell trouble for brand betting big on organic in 2018 and beyond.

Inspired by www.fooddive.com

The Evolution of Nutrition Facts Labeling

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According to the U.S. Food and Drug Administration, the nutrition facts panel is one of the most widely recognized graphics in the world. Food Dive recently published an article on the origins and evolution of nutrition facts labeling. Our post hopes to detail some of the key points from their report.

The History of the Nutrition Facts Label

FDA Historian, Suzanne Junod, told Food Dive that the nutrition panel has been appearing on food packages since 1994, but mandatory labeling dates back more than 100 years. Junod says,”The modern U.S. food-package label has evolved steadily throughout the 20th century, and its content and format are regularly revised to reflect and apply new knowledge in the fields of medical, nutritional and regulatory science.”

However, minimal changes have taken place within the past 20 years except for the addition of Trans Fat in 2006. If you looked back 100+ years ago, the Pure Food and Drug Act of 1906 established the FDA and was the first significant consumer protection law passed in the 20th century. The law intended to stop adultered and mislabeled products to improve consumer trust in the food and drug industries. Packaged foods started to grow at the turn of the 20th century as these goods were more convenient that bulk or boxed products.

 

From there, low-cost competitors jumped in to sell short-weight packaging meaning they put less food in packages and sold them for less. In 1913, Congress passed the first mandatory food labeling law with the Gould Net Weight Amendment. The amendment required all packaged foods to have the quantity of their contents marked on the package regarding weight, measure or numerical count.

The next significant change took place in 1938 in the Food, Drug, and Cosmetic Act which required all artificial flavoring, coloring, or chemical preservatives to be listed on the product label.

“We didn’t know that much about vitamins until the ’20s. A lot of them weren’t even discovered until then. And no one was really clear about the role they played in human nutrition,” Junod said. “But scientific studies began. That was pretty much when [the FDA] started getting into the nutrition business and taking a really hard scientific look at nutrients and what role they play in the diet.”
Suzanne Junod
FDA Historian

In 1940, the FDA accepted a standard for enriched flour that established the levels for enrichment with vitamins and minerals. The formula was adopted for white bread and later standardized for other food products. Nutrition facts labels would not change for decades.

Nutrition Labeling Activity From the 1970s to the 1990s

In 1973, the FDA published the first regulations that required nutrition labeling for foods. The foods included those with added nutrients for which a claim was made on the package or in advertising.

“Then in 1977, a Senate committee came out with a report called Dietary Goals for the United States. That was a landmark report. [It] said that Americans should be cutting down dramatically on sugar, salt, and saturated fat, and eating more fruits and vegetables, whole grains, beans, and healthful foods”
Michael Jacobson
Sr. Scientist at CSPI

The Department of Agriculture, would soon after published the first Dietary Guidelines for American which agreed with Senate findings: eat more fruits and veggies, eat less salt and sugar.

Mandatory nutrition labeling and the first nutrition facts label were introduced in the Nutrition Labeling and Education Act of 1990. The FDA spent a lot of time developing the nutrition facts label with an outside branding firm to be flexible for scientific advances in nutrition.

Where the Nutrition Facts Label is Going…

The new nutrition facts label is undergoing its first significant overhaul in almost 20 years. In the new version, the FDA requires added sugars, essential nutrients like vitamin D, potassium, calcium, and iron. The label was initially set to be active in 2018 but has now been pushed back to 2020. Many believe they are trying to line this up with the Department of Agriculture’s Non-GMO labeling law. It will be interesting to see how this all plays out over the next few years.

Inspired by www.fooddive.com/

27% of People in the U.K. Use Sports Nutrition Products

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Sports drinks were once reserved for bodybuilders and athletes, but the recent Mintel report on sports nutrition revealed a different story in the U.K. Published in the Attitudes Towards Sports Nutrition 2017 report, results showed that 3 out of 10 or 27% of Brits use sports nutrition products. The report also noted that 2 out of 5 (39%) of the UK’s population exercise more than once a week.

Men Are the Main Users of Sports Nutrition Products

Young men in Britain have the strongest affinity to sports nutrition products. Around 61% of men between 16 and 34 confessed that they use sports nutrition products and also follow a rigid exercise program. In fact, 35% of this demographic say they exercise four times a week.

While men showed a high propensity for sports nutrition products, there is also a growing demand from the females.  The study indicated that 40% of women between 16 and 34 years old consume sports nutrition products. There is also an increase of intake of protein powders among young women from 7% in 2015 to 18% in 2017.

Popular Sports Nutrition Products in the United Kingdom

The top three products according to the reports include protein bars at 11%, protein powders at 10%, and energy bars at 9%. According to Anita Winther, research analyst at Mintel, the sports nutrition industry is proliferating.  The reason for this is that people are changing their perception of beauty. In fact, even the fashion industry is embracing the mantra “strong is the new skinny” thus models are often required to have athletic and toned bodies.

The embrace of these nutrition products among Brits is good news for manufacturers. But while the demand is high for these products, 63% of consumers find it difficult to determine whether a particular product is right for them or not. 72% of the customers demand industry-wide certification to ensure the quality of the ingredients used.

 

Consumers are more critical with the types of foods that they consume, and this scrutinizing behavior extends to sports nutrition. Around 64% of the users read the ingredients list before deciding to buy a particular product while 46% avoid those that contain sugar. With this consumer behavior, the industry can benefit by revamping their products to include more natural and sugar-free products to meet the demands of people.

Current Problem

While the sports nutrition industry is growing, it is facing fierce competition from mainstream food companies that are also embracing the high-protein trend. It seems that there is an overlap between the two and that mainstream food companies are providing products that have more competitive prices and more beneficial ingredients.

The thing is that there is a booming interest in health and sports products in the United Kingdom and the broad aspect of healthy living. The trend gives manufacturers opportunities to develop new products to cater to different types of consumers.

Inspired by www.mintel.com

CPG Brands Experiencing Growth in New Retail Platforms

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The primary theme of the consumer packaged goods (CPG) industry is growing sales. In the IRI Channel Performance Report, growth is present but limited. According to Vice President of Thought Leadership for IRI, Susan Viamiri, the reason for this is that shoppers are now more demanding and are spending their money on products that can deliver on their needs and expectations.

In the previous year, the industry amassed total sales of $760 billion where 41% was accounted for in the grocery channel. Another platform where consumer packaged goods are doing well is online. Most people still purchase the items that they need in grocery stores. The reason why grocery stores accounted for higher sales than any other platforms is that many people make quick trips to purchase their items. In 2016 alone, the number of grocery trips rose by 1.3%.

Strategies to Stay Ahead of Competition

As a result, many grocery stores have experimented with their store format to increase margins and survive the stiff competition with other retailers. Other strategies that they are using include subscription-based programs and promoting their CPG brands to millennials. The new formats embraced by CPG retailers will continue to transform the retail market for years to come.

As mentioned previously, e-commerce stores are also instrumental in driving the sales today. E-commerce is responsible for 8% of all CPG revenue. Market analysts are forecasting that the sale is faster because of the convenience it provides to consumers. This has many brick-and-mortar retailers scrambling to become more competitive.

The consumer packaged goods industry is eyeing different types of shoppers. The generational shoppers include the Millennials, Generation X, and Baby Boomers. These kinds of generational shoppers have different shopping attitudes. For instance, both millennials and generation Xs shop in mass markets and look into the price of goods more than anything else. Baby boomers, on the other hand, spend on convenience while seniors often pay more in bulk for drugstore purchases.

Social Media: How it Helps CPG Brands and Retailers

Too much competition is one of the biggest problems right now. Even big retailers find it hard to infiltrate densely-populated areas, so they create a downsized version of their retail stores. To be able to attract more people, they use loyalty programs and technology to let their customers know about their different offerings. They go to social media to interact with their customers and attract more potential clients.

The consumer packaged goods industry is fast-paced, and personalization is essential in breaking through the tough marketplace. By offering customization, customers feel important as they know that retailers can deliver their needs using the best solution possible.

Inspired by www.iriworldwide.com

Germany Takes Second Lead in Superfood Market Launches

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Consumers all over the world are fueling the growth of superfoods. In new market research released by global agency Mintel, Germany has overtaken Australia and UK regarding the superfood market launches. In the Global New Products Database published by Mintel, it revealed that 9% of new superfood launches in 2017 occurred in Germany.

The UK’s market launches dropped from 9% to 7% from June 2016 until the end of the year. Australia has fallen in third place with only 5% launches since June 2016. While Germany’s love of superfoods has grown, the United States still tops the list. But recent statistics show that the superfood launches in the US fell to 19% this year. This is a far cry lower from last year’s, 25%.

Why Is Germany Shifting to More Superfoods?

According to Katya Witham, senior analyst for Germany at Mintel, noted that the country is moving up in its ranks due to the growing demand of superfoods from consumers. The country is experiencing an increasing number of consumers who are interested in health and wellness.

So, what pushed Germany to have this huge embrace for superfood? The growing aging population and rise of health-related problems have driven the demand for the consumption of healthy superfoods. The country is experiencing health issues like heart disease and obesity. As a result, it is also increasing the health-care costs in the country.

 

Initially, superfood launches in Germany included a simple line of products from quinoa, chia, and amaranth. Recently, there is a growing demand of lesser-known superfoods, and this has led food manufacturers to harness the whole food goodness of other superfood ingredients to boost the quality of their food products.

The Launch of Supergrains

Specifically, Germans are interested in ancient grains such as millet and spelt.  In fact, 30% of German adults aged between 25 and 34 want to consume baked goods that are made from these grains. Also called super grains, spelt and millet appeal to the German market because they are deemed healthier than other grains. These ancient grains have a special place in the German kitchen as people have been using them in a variety of home-baked products over the years.

Today, German food manufacturers have incorporated the supergrains in products like breakfast cereals, energy bars, and snacks to boost the nutritional value of their products. Supergrains contain high amounts of fiber, omega-3 fatty acids, protein, and antioxidants.

The Future of German Superfoods

The agency also forecasted a stable future for superfoods in Germany.  In fact, retail sales of superfoods have amounted to €3.2 billion since 2016. The rising consumption of super grains and other healthy foods will result in a growth of 20% within the next five years.

Inspired by www.mintel.com

Brick-And-Mortar Stores Still Here to Stay Amid Online Grocery Platforms

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In the digital age, people have the luxury of buying whatever they need online. However, there are still many consumers who prefer to shop the traditional way. In a report released by The NPD Group, only 7% of consumers in the United States shop online for their groceries.

The Rise of Online Shopping Platforms

Consumers are not willing to adopt the online grocery shopping platform for various reasons, and one of them is that they want to pick out fresh items by themselves. There remains a significant number of the US population who prefer shopping in brick-and-mortar stores.

 

For instance, Amazon recently purchased the popular grocery chain Whole Foods to extend the online shopping experience of their Amazon Prime members. The acquisition is a big step for online shoppers including young professionals and urban consumers. The NPD Group predicts that online shopping will also expand faster due to the convenience factor appreciated by most shoppers.

In the same study, around 20 million of consumers who are new to online grocery shopping increased their virtual shopping activities, particularly on foods and beverages. The reason for this is that many online groceries offer a variety of unique products that traditional grocery stores do not carry. The diversity of products is another selling point of online grocery stores. But even if this is the case, it is a far cry to the hundreds of millions who still prefer to shop at brick-and-mortar grocery stores.

Why Are Traditional Grocery Stores Still Popular?

So why are brick-and-mortar stores here to stay? While one of the strongest points of online shopping is the convenience, there are still many barriers that they need to address. Aside from the fact that many people want to check and pick out food themselves, many people report the nostalgia that shopping in brick-and-mortar grocery stores provides. Another barrier to shopping for food online is higher costs.

amazon online grocery shopping

Most consumers believe that online stores do not maintain high overhead costs so they can offer lower prices. However,  it is the consumers who have to suffer from paying delivery charges or even membership fees. Consumers, in a nutshell, simply want to get their food fresh and now!

What Should Brick & Mortar Grocery Do?

While online grocery stores are becoming popular among the millennials, brick-and-mortar stores are here to stay. But to improve the shopping experience for their customers, they need to step up their strategies. According to Darren Seifer, industry analyst of the NPD Group, B&Ms need to market unique needs of consumers so that they can compete with online groceries that are offering a wider variety of products that brick-and-mortar stores do not usually carry.  By doing so, they can keep up with the pressure of time and the demands of their customers.

Inspired by www.npd.com

Grocery Stores Carry 40,000 More Items Than They Did in the 1990s

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Grocery stores have been around for a long time. It was only after the post-war era that self-service grocery stores became popular as more people especially women became liberated from domestic duties and started going to work.

Today, grocery stores are big enterprises that provide people whatever their household needs. According to author Michael Ruhlman, the evolution of grocery stores is remarkable. Today, there are more than 38,000 supermarkets across the United States that earn billions of dollars yearly.

The Evolution of Grocery Stores

According to the Food Marketing Institute as well as the US Bureau of Labor Statistics, there is a growing need for grocery stores in the country and this growth is reflected in the rising stock prices of publicly-owned grocery enterprises. Aside from brick-and-mortar stores, grocery stores have also expanded to deliveries to accommodate all types of consumers.

But perhaps the biggest change attributed to the evolution of supermarkets is that modern groceries offer more diversity regarding their products. During the 1990s, there was an average of 7,000 items sold in a grocery store. Now, it has ballooned to over 40,000 items.

The Evolution of Shoppers

Parallel with the development of grocery stores is the evolution of shoppers. Over the past ten years, shoppers’ food preferences have drastically changed. For instance, you would never have been able to find gluten-free food a decade ago. Today, those kinds of products are prevalent and important many people’s diets.

The thing is that the taste and desires of ordinary consumers have also changed through time. It is important to take note that we are now becoming more conscious of our food choices and we tend to read labels more compared to 20 years ago.

Aside from reading food labels, consumers are also opting for organic foods especially if they can afford them. More than 50% of American consumers believe that organic foods are more nutritional than those grown using conventional farming techniques.  To supply the needs of consumers for organic products, many grocery stores also dedicate a section in their store for organic food products.

The Future of Grocery Stores

The future of grocery stores is very predictable. With the rising demand and food preferences of American consumers, grocery stores will get even bigger and will carry more diverse items. But then variety can also have its downsides. Ruhlman believes that too much variety sends consumers the wrong message that they can rely on grocery stores to get instant food instead of learning how to cook their meals from scratch. After all, cooking is an age-old skill everyone must learn, and that ability allows you to control the number of ingredients that you put in your food.

Inspired by www.marketwatch.com

Vitamin Fortification Can Cause Off Flavors in Dairy Milk

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Adding value to food and drinks is a popular trend in the food manufacturing industry. Consumers are demanding food and beverage brands to find ways to improve the nutritional value of their products. In fact, you can see many nutrient fortified products from cereals to soda.

 

The Rise of Value-Added Beverages

This is the reason why there is an increase of probiotic-infused beverages in the market. Examples of probiotic-based drinks that are available to the public include kombucha, flavored yogurts, and even drinking vinegar. But aside from drinks filled with healthy bacteria, another trend is to fortify ordinary drinks with vitamins and minerals. This is the reason why coffee and tea fortified with vitamins have found themselves on many supermarket shelves.

Plant-based milk created from nuts and seeds is also on the rise. These plant-based counterparts are positioned as healthier alternatives to traditional dairy milk.  But for a long time, dairy milk has held on to fortifying milk with vitamins to make it a healthier beverage.

The Problem with Fortified Dairy Milk

The most common vitamins that are added to milk are A and D. In the United States, these vitamins have been added to dairy milk since 1930 to halt the possibility of children developing blindness, cancer, and other vitamin deficiencies. The practice of adding vitamins and minerals to milk has been the standard in making pasteurized milk.

While beverage manufacturers have good intentions in fortifying milk, some consumers are complaining. The vitamin fortification of milk often results to imparting a distinct flavor that consumers mistake for spoilage.

In a study conducted by researchers from the North Carolina State and Cornell University, they found out that water-soluble vitamin concentrates often used in fortifying milk can lead to off flavors. On the other hand, using oil-soluble fortifications often results in no taste difference from unaltered milk. In the same research, test subjects detected a slight difference regarding flavor between enhanced skim milk and unfortified skim milk.

The Implications of The Study

The study revealed that while fortifying milk is a great idea to improve its nutritional value, it is crucial for beverage manufacturers to use the right vitamin concentrates.  Having said this, food manufacturers need to improve their process and invest in solutions that can control the impact of vitamin concentrates on the flavor of the dairy product.  The researchers recommended using less water-soluble vitamins and rely more on oil-soluble vitamins to improve the quality of their milk products.

But this strategy can backfire when it comes to the organic milk niche. Consumers who value natural and unaltered dairy products might find the fortification against their volition, so they opt not to buy them instead. Milk brands need to be clear and transparent about whether their milk is fortified or unfortified. Companies should look for ways to add food based vitamins like GrandFusion. GrandFusion is a concentrated blend of vitamins from fruits and vegetables including vitamins A and D.

Inspired by www.fooddive.com