Nearly two-thirds of Americans are limiting or avoiding added sugars, and a quarter point to sugar as the most likely calorie source responsible for weight gain, according to the newest data from the International Food Information Council (IFIC).This heightened attention to sugar intake—coupled with consumer demand for ingredients that are natural, sustainable and healthful—is driving food and beverage companies to their rethink ingredient selection and marketing messages, especially in key categories considered indulgent or inherently caloric.

In May 2016, FDA unveiled new requirements for the Nutrition Facts label of packaged foods, including the reporting of a product’s added sugar content. This new attention to added sugar intake on packaging—as well as consumer demand for sweeteners that are natural, sustainable and healthful—provides brands the opportunity to increase use of alternative sweeteners when developing or reformulating products.

Download this infographic to find out more about how natural sweeteners are being used in food and beverage development.

For more information on the sweeteners market, visit:

• Sweeteners: Balancing Label, Taste Concerns

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The “budget blueprint” released in March by President Donald Trump proposed deep spending cuts, including nearly an 18 percent decrease for the Department of Health and Human Services (HHS), but the document largely failed to assess the impact on FDA and its ability to safeguard the nation’s food supply.

Trump’s plan reflects an effort to bolster defense spending by US$54 billion, while making offsetting reductions elsewhere that would impact various federal agencies overseeing such areas as education, agriculture, and housing and urban development.

The budget blueprint only covers discretionary funding proposals and reflects an effort not to add to the nation’s $20 trillion in debt.

“Every agency and department will be driven to achieve greater efficiency and to eliminate wasteful spending in carrying out their honorable service to the American people,” the president said in a statement accompanying the release of his budget blueprint.

The 53-page document, issued by the White House’s Office of Management and Budget (OMB), proposed a $69 billion budget for HHS for fiscal year 2018 (FY18)—a 17.9 percent or $15.1 billion decrease from the 2017 level funded under a continuing resolution.

FY18 begins Oct. 1.

FDA is within HHS, but Trump’s plan sheds little light on how FDA would be impacted—other than a request to increase by $1 billion medical product user fees.

Under the HHS heading, OMB made no mention of food safety.

Steven Grossman, deputy executive director of the not-for-profit Alliance for a Stronger FDA (Alliance), described Trump’s blueprint as a “very cursory document that was put together for the purpose of basically showing where the president would move money around from non-defense to defense.”

Whatever your program is, you can’t read anything into the fact that it’s not mentioned,” he said in a phone interview.

FDA and USDA Food Safety Budgets

The requested cuts to HHS’ budget, nevertheless, leave stakeholders wondering if and how food safety will be impacted at FDA.

In FY16, excluding user fees, FDA received $987 million for its food budget authority, according to the Alliance, which noted former President Barack Obama requested a food budget of $1.013 billion for FY17.

“Certainly, there needs to be food safety, but the question becomes … how much money is going to be devoted to food safety, and how much more money will be given to food safety,” asked Mike Greene, vice president of government relations with the Council for Responsible Nutrition (CRN), a trade association representing the dietary supplement and functional food industries.

The pending funding issues at FDA haven’t escaped the attention of Jaydee Hanson, senior policy analyst with the nonprofit public interest group Center for Food Safety.

“We’re quite concerned there already wasn’t enough money to implement the Food Safety Modernization Act [FSMA],” said Hanson, whose employer sued FDA for missing deadlines under the sweeping law signed by Obama in 2011.

Unless we get serious about food safety being a part of homeland security, it will likely mean another major outbreak of unsafe food before we get the money back,” Hanson said later in the same phone interview.

The U.S. Department of Agriculture’s (USDA) Food Safety and Inspection Service (FSIS) may feel more certain about its funding than, say, FDA’s Center for Food Safety and Applied Nutrition (CFSAN). Trump has requested $17.9 billion for USDA, a $4.7 billion or 21 percent reduction from the 2017 continuing resolution level.

However, OMB noted the budget will fully fund an agency that is responsible for ensuring the safety of the nation’s meat, poultry and egg products: FSIS. Obama requested $1.030 billion for FSIS in his FY17 budget, according to a USDA official’s testimony last year on Capitol Hill.

“The investments that Congress has made in FSIS are having a positive impact on food safety that will continue to unfold in significant ways,” Al Almanza, former deputy under secretary for food safety at USDA, testified last year before the House Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies. “For instance, we have continued to modernize how we do inspections, and, as a result, we have improved our ability to protect the health of the American public.”

Bill Marler, an expert in food safety whose law firm Marler Clark LLP represents victims of food poisoning, was pleased the president requested full funding for FSIS. However, he wondered whether Trump’s budget would cut or stabilize funding at FDA for its responsibilities under FSMA.

Full Budget Proposal Pending

Grossman said the president’s full budget is expected to be released in May and should include more details, including requested funding at FDA offices like CFSAN.

“There should be enough detail that you can say, ‘This is how much they’re spending on food safety. This is how much they’re spending on dietary supplements,’” Grossman pointed out. In a recent update, the Alliance noted the president’s request for FDA alone typically includes several hundred pages of details.

It’s up to the appropriations subcommittees and committees in Congress—and ultimately the House and Senate—to agree on a budget before a government spending bill is sent to the president for his signature, Grossman noted.

“Congress will make the final decisions. However, regardless of the actual numbers in the [president’s] proposal, the tone and direction threatens FDA’s appropriation and the agency is at risk,” the Alliance warned in a March 3 update. “We need to advocate for FDA to be one of those protected programs that are not subject to a 10-15% cut because they are considered a national priority.”

The government is currently operating under a continuing resolution that ends in April, and Congress still has to agree to fund the government between April 28 and Sept. 30, 2017, Grossman said. (In the budget blueprint, OMB stated most appropriations bills for 2017 were not voted on in Congress).

Funding Implementation of FSMA

In a recent letter to leaders of the House and Senate appropriations committees, Cargill Inc., The Coca-Cola Co., Campbell Soup Co., and 18 other companies and associations requested an increase in funding for FDA’s food safety budget.

“In order to maintain consumer confidence in the safety and integrity of America’s food supply and to reduce the number of foodborne illnesses, it is important that FDA … has the training, technical assistance and infrastructure in place to implement FSMA effectively,” the March 15 letter asserted. “Our commitment to food safety is steadfast and we need a strong FDA as our partner to fully implement FSMA and to play its proper role in ensuring the safety of the nation’s food supply.

Trump’s policies—such as his executive order calling for the repeal of two existing regulations for each new one adopted, a hiring freeze and his requested budget cuts—have raised concerns that his federal agencies will be handicapped in their abilities to govern.

Even before Trump was president, his campaign reportedly highlighted regulations to be nixed, including “The FDA Food Police, which dictate how the federal government expects farmers to produce fruits and vegetables and even dictates the nutritional content of dog food.”

“The rules govern the soil farmers use, farm and food production hygiene, food packaging, food temperatures and even what animals may roam which fields and when,” Trump’s campaign statement continued, The Hill reported in a Sept. 15, 2016 article. "It also greatly increased inspections of food 'facilities,' and levies new taxes to pay for this inspection overkill."

According to published reports, the fact sheet was later removed from the campaign website.

Marc Sanchez, an attorney, regulatory consultant and adjunct professor at Northeastern University, said it could be problematic if, for example, FDA isn’t adequately staffed to inspect facilities for compliance with FSMA.

“That could be a concern that the FDA is not being as proactive and preventative as FSMA … envisions,” said Sanchez of the law firm Contract In-House Counsel & Consultants LLC, based in Washington and Charlotte, North Carolina.

FDA has adopted seven major regulations under FSMA, including its rules governing preventive controls for human food, produce safety and foreign supplier verification programs (FSVP).

Large companies have been required to comply with a number of the FSMA regulations since 2016—including the human food preventive controls rule—and several deadlines for compliance are coming up in 2017, 2018 and 2019 for the entire industry, according to a reference sheet posted online by the Grocery Manufacturers Association.

Sanchez noted ambiguity on whether Trump’s executive order aimed at reducing regulations affects guidance documents as well. FDA often releases guidance documents to provide additional clarification for industry regarding their obligations under the law and applicable regulations, such as FSMA and its “seven pillars” or rules.

Nearly two-thirds of Americans are limiting or avoiding added sugars, and a quarter point to sugar as the most likely calorie source responsible for weight gain, according to the newest data from the International Food Information Council (IFIC).This heightened attention to sugar intake—coupled with consumer demand for ingredients that are natural, sustainable and healthful—is driving food and beverage companies to their rethink ingredient selection and marketing messages, especially in key categories considered indulgent or inherently caloric.

In May 2016, FDA unveiled new requirements for the Nutrition Facts label of packaged foods, including the reporting of a product’s added sugar content. This new attention to added sugar intake on packaging—as well as consumer demand for sweeteners that are natural, sustainable and healthful—provides brands the opportunity to increase use of alternative sweeteners when developing or reformulating products.

Download this infographic to find out more about how natural sweeteners are being used in food and beverage development.

For more information on the sweeteners market, visit:

 Sweeteners: Balancing Label, Taste Concerns

 

Nearly three months after being tapped to lead USDA, Sonny Perdue today was sworn in as the 31st U.S. Secretary of Agriculture during a small ceremony at the Supreme Court. The U.S. Senate confirmed Secretary Perdue by a vote of 87-to-11 on April 24, and he now oversees USDA’s more than 100,000 employees and a budget exceeding $150 billion.

Perdue, 70, was nominated to lead the agency on Jan. 19, just days before President Trump was sworn in as president of the United States. Perdue succeeds former USDA Secretary Tom Vilsack who stepped down after leading the agency for eight years during the Obama administration. Vilsack joined the U.S. Dairy Export Council (USDEC) as president and CEO in February 2017.

Perdue was born into a farming family in Bonaire, Georgia, and his career spanned stints as a farmer, agribusinessman, veterinarian, state legislator and governor of Georgia. He is not related or affiliated with the food company Perdue or the poultry producer Perdue Farms.

Commenting on his appointment, Perdue said: “The only legacy that I seek is the only one that any grandparent or parent seeks—to be good stewards, and to hand off our nation, our home, our fields, our forests, and our farms to the next generation in better shape than we found it. Making sure that Americans who make their livelihoods in the agriculture industry have the ability to thrive will be one of my top priorities. I am committed to serving the customers of USDA, and I will be an unapologetic advocate for American agriculture."

Perdue’s policies as U.S. Secretary of Agriculture will be guided by four principles which will inform his decisions:

1. Maximize the ability of the men and women of America’s agriculture and agribusiness sector to create jobs, to produce and sell the foods and fiber that feed and clothe the world, and to reap the earned reward of their labor. It should be the aim of the American government to remove every obstacle and give farmers, ranchers, and producers every opportunity to prosper.
2. Prioritize customer service every day for American taxpayers and consumers.  They will expect, and have every right to demand, that their government conduct the people’s business efficiently, effectively, and with the utmost integrity.
3. As Americans expect a safe and secure food supply, USDA will continue to serve in the critical role of ensuring the food we put on the table to feed our families meets the strict safety standards we’ve established. Food security is a key component of national security, because hunger and peace do not long coexist.
4. Remember that America’s agricultural bounty comes directly from the land.  And today, those land resources sustain more than 320 million Americans and countless millions more around the globe.

In a statement Senate Agriculture Committee ranking member Debbie Stabenow (D-Mich.) who originally opposed the nomination, said :“After a thorough review of his qualifications and priorities, I support the nomination of Governor Perdue to serve as Agriculture secretary. Although we have some differences on policy, we share a commitment to support American agriculture and strengthen our small towns and rural communities. I look forward to working with Governor Perdue as we write the 2018 farm bill. Farmers and families in Michigan and all across rural America need a champion at USDA."

“As secretary, I will champion the concerns of farmers, ranchers, foresters, and producers, and will work tirelessly to solve the issues facing our farm families," Perdue said. “I am proud to have been given this opportunity and look forward to rolling up my sleeves and getting to work as we continue to move the USDA and our nation forward."

In January, the Grocery Manufacturers Association (GMA), which represents food, beverage and consumer product companies, weighed in on the former governor’s nomination. “As Secretary of Agriculture, Sonny Perdue’s agricultural business background and experience as governor will serve the U.S. well," the trade group said in a statement. “GMA looks forward to working with him on issues key to keeping America's food the safest and most affordable food supply in the history of the world."

Consumers are increasingly demanding healthier food and beverage options made with recognizable ingredients. As such, industry faces the challenge of balancing public desire for indulgent experiences with a focus on reduced sugars and clean labels. Stevia and stevia blends, monk fruit, sugar alcohols, syrups, prebiotic fibers and honey are just a handful of ingredients manufacturers are using in attempt to bridge the gap, particularly in the beverage space.

Table of Contents

• Viewpoint: Sweet Success
  by Judie Bizzozero
• Sweeteners: Balancing Label, Taste Concerns
  by Judie Bizzozero
• Clean Label Sweeteners Raise the Bar in Beverages
  by Melissa Kvidahl
• Case Study: Reed's Inc.
• Case Study: Lotus Botanical Elixirs

Takeaways for Your Business

• Sweetener balance is a 2017 top trend, requiring sugar reduction without compromising clean label.
• Companies pledging to reduce product calories include General Mills, Nestlé, Coca-Cola and Kellogg.
• Agave-sweetened CSDs saw 72% U.S. growth from 2016 to 2017, a market value of nearly $8 million.

Information Resources Inc. (IRI), released its 2016 New Product Pacesetters™ report identifying the most successful consumer packaged goods (CPG) brands based on exceptional first-year dollar sales for 200 products that captured cumulative sales of more than $6.5 billion.

Thousands of new brands hit retail shelves during 2016, with 80 percent of the top-ranking brands hailing from small and midsized manufacturers and accounting for 64 percent of Pacesetter dollars. Overall, the top-selling 200 new brands captured cumulative year-one sales of more than $5.8 billion across IRI’s multioutlet geography.

“The top product launches of 2016 highlight the three Ps of successful innovation—prevention, personalization and pizzazz," said Susan Viamari, vice president - Thought Leadership, IRI. “Each plays an essential role in driving awareness and engagement in today’s marketplace. Personalization is perhaps the most talked about, and desired, phenomenon in marketing today. Keying in on consumer preferences is critical because of the sheer volume of information in front of people at any given time. Products that are delivering small and powerfully targeted solutions that grab consumers’ attention and make them feel and look great are resonating and making a huge impact."

“Technology and know-how are allowing CPG marketers to not only understand consumer needs and wants, but also to respond to them more effectively than ever before," added Larry Levin, executive vice president of Consumer and Shopper Marketing for IRI. “As a result, average year-one dollar sales from even the most impactful new product launches are continuing to decline, a trend we noted in Pacesetters during the last couple years. Certainly, mega launches surpassing $100 million are still occurring, but the brands in the middle of the pack are getting the squeeze as smaller, more targeted brands are capturing a growing share of Pacesetter sales."

The top 100 food and beverage New Product Pacesetters averaged $11.4 million year-one dollar sales, down from $19.6 million in 2015. Prevention played a key role in driving the success of these top-performing products as consumers turn to CPGs for help in meeting their nutritional goals.

Consumers want fresh, unprocessed, simple foods that are made with ingredients they can understand because nutrition has become a first line of defense for living well. Since 40 percent of consumers recognize that being healthy starts with lifestyle, they are reading labels, looking for products with fewer ingredients, and turning to natural, organic and superfoods that can boost nutritional impact.

Antibiotic-free foods are becoming increasingly more popular, particularly in meat, poultry and dairy products. DairyPure, the top-selling beverage launch of the year, is an example of a solution hitting the mark.

The sweet snacks sector is offering powerful new options in indulgence. While there were only four sweet snack Pacesetter brands this year, down from seven in 2015, some of these brands made a really big splash in the market by providing indulgence with a healthier-for-you twist. Nabisco introduced OREO Thins, packing traditional OREO flavors into a delicate new cookie with a crispier texture, less crumbs and fewer calories.

The Top 10 food and beverage brands making the 2016 New Product Pacesetters list include:

1. DairyPure® $1.163 billion
2. Dunkin' Donuts® K-Cups® $204.1 million
3. Not Your Father's Root Beer® $114.6 million
4. OREO Thins® $110.2 million
5. Artesano™ $102.4 million
6. Screamin' Sicilian™ $73.2 million
7. Oscar Mayer™ Natural™ $61.7 million
8. DairyPure® Creamers $54.9 million
9. Sargento® Balanced Breaks® $54.2 million
10. Henry's Hard Soda® $50.3 million

In the convenience store arena, median year-one sales across the top 10 IRI New Product Pacesetters were $23.4 million, demonstrating the power behind consumers’ ongoing quests for both healthy and indulgent personalized experiences.

Four energy drinks made the top 10 ranking, reinforcing the notion that Americans want energy-packed solutions that can be consumed on the go. New energy launches provide an array of flavor experiences, but there are several new options for those seeking healthier alternatives, such as Monster Energy Ultra Black ad AMP Energy Zero is bursting with flavor, but has no calories.

The Top 10 convenience store brands making the 2016 New Product Pacesetters list include:

1. DairyPure® $385.9 million
2. Red Bull® The Summer Edition™ $149.0 million
3. Quest Bar® $78.4 million
4. Nut Harvest® $60.2 million
5. BODYARMOR™ $55 million
6. Rockstar® BOOM! $53.3 million
7. Rockstar® Freeze $51.7 million
8. Not Your Father's Root Beer® $44.2 million million
9. Monster Energy® Ultra Black™ $39.5
10. AMP® Energy Zero $25 million