Consumers are taking their dining cues from fiery and authentic flavors offered by Latin, Asian, African, Italian and Indian cuisines, and seeking a variety of flavor experiences from all sources, from food trucks to processed foods. Millennials and Gen-Xers drive demand for unique flavor, although 65 percent of all consumers like trying new flavors on occasion. More than 6,000 new product launches featured ethnic flavors in 2016—a number that has consistently increased year over year.

Table of Contents

• Viewpoint
  by Judie Bizzozero
• Ethnic Flavors Provide Culinary Inspiration for Clean Label Products
  by Judie Bizzozero
• Clean and Creative Dressings, Sauces & Marinades
  by Melissa Kvidahl
• Case Study: Primal Kitchen
  by Joanna Cosgrove
• Case Study: TABASCO®
  by Danielle Rose

Takeaways for Your Business

• Flavors with the strongest growth over the past four years are Ras el Hanout, Asian and Moroccan.
• Snacks, soups, sauces, dressings and frozen/ready meals facilitate regionally specific flavors.
• Marinade sales rose 24% to reach $1.4 billion in 2015, with 17% anticipated growth through 2020.

Formulators must find clean label ingredients that not only look good on a label, but also function well in the product. Clean label ingredients also can be more expensive than their counterparts, and companies must have procedures in place to ensure the integrity of the supply chain.

This infographic was excerpted from the “Clean Label Strategies and Formulation Considerations” Workshop at SupplySide West 2017, from presentations given by Kantha Shelke, Ph.D., Corvus Blue; Will Lennon, Imbibe; Tim Greiner, Pure Strategies; Joost Blankestijn, TNO; and Piet de Bakker, AAK.

The session was underwritten by Cargill, Synergy Flavors and Tate & Lyle

For more clean label resources from the session’s speakers, click the following links:

• Exceeding Expectations for Clean Label Digital Magazine

• Reformulation Strategies for Cleaning Up Labels

• Challenges and Strategies for Navigating Clean Label

• Engaging Suppliers on the Clean Label Journey

• SupplySide West Podcast 67: Food & Beverage Trends at SupplySide West 2017

 FILL OUT THE FORM BELOW AND DOWNLOAD TODAY!

 

Social media and web-based forums provide consumers with an incredible platform to learn, communicate, and share their food preferences online. Many consumers gain exposure to food trends and diet regimens that would have otherwise been foreign to them. This has led to the popularity of food movements, a campaign or group of people who follow a shared vision about any food related topic—including everything from sourcing to production, preparation and consumption.

In many cases consumers commit to food communities due to dietary restrictions or for health reasons, but many consumers engage in more than one movement because they can reap the benefits without aligning themselves with just one group. These food movements are influencing consumer behavior and brand owners should take note because you may miss an opportunity to incorporate these popular trends into your next product launch or even incorporate the key marketing lingo on your packaging.

The following are some of the hottest food movements influencing new product launches, along with some products that align with those groups.

Veganism: Consumers who value social responsibility and environmental conservation are driving the growth of food and beverage items without animal products or byproducts. A recent report on veganism in the United Kingdom found a 350-percent growth in consumers who follow a vegan diet over the past decade. Products that use pulses and plant-based dairy alternatives attract vegan consumers, and more products are including the term “vegan" on their label.

Check out: Kite Hill, Cocoburg Coconut Jerky

Flexitarians:  Sometimes known as semi-vegetarians, consumers who identify as flexitarians still eat meat, but may consider it as a side dish instead of the more traditional main course. Many flexitarian consumers also appreciate vegetarian and vegan options, including meat substitutes from alternative protein sources like soy (tofu), jackfruit, beans and mushrooms. Plant Based Foods Association reported that more than 25 percent of American consumers ate less animal meat in the past year.

Check out: No Bull Burger, Lightlife, Go Umami Baked Tofu Bar

Paleo: Brands with a paleo or paleo-friendly label on their packaging align with this grain-free (or grain-light) diet that prioritizes meat and protein to consumers. Paleo dieters avoid trans fats, high sodium and additives like MSG and artificial sweeteners.

Check out: Epic Bar, Vixen Kitchen Ice Cream, This Pie is Nuts

Keto: This high-fat, low-carb diet is used in the medical field to treat epilepsy but has started to gain consumer interest for its potential to contribute to weight loss. More brands may incorporate keto into their names or label low-carb, high-fat and high-protein products as keto or keto-friendly.

Check out: Phat Fudge; Keto Bars, Cave Shake

Sustainability and Waste-Reduction: Food waste is at the forefront of many consumers’ minds. As a result, many brands are innovating with typically-discarded food sources. The UglyFruitAndVeg Campaign encourages consumers to eat cosmetically-unfit fruits and vegetables. Other brands discuss commitments to donating discarded ingredients to farms as animal feed or use packaging that takes up less space in landfills.

Check out: Rethink Water, White Moustache, Uncommon Coffee Roasters, Forager Project

Locavores: In restaurants, patrons have become familiar with the term “farm-to-table," and the idea of supporting local communities and commerce has expanded to packaged products.  Drawing attention to an ingredient’s origin, labeling a product as local, or beginning distribution in a regional market are all ways to attract the local-minded consumer.

Check out: Pop and Bottle, Honeydrop Lemonade, Maine Root, Oregonic Tonic

The DIY Chef: Consumers desire the ability to customize and personalize their food. Whether they are making kombucha on their kitchen counter, using a make-your-own-cold-brew coffee kit, or subscribing to an online meal prep service, many consumers are opting to take food preparation into their own hands. Even though these experiences may be tagged as DIY, part of the draw is that they can easily include more than just “yourself." Creating part of or an entire meal with family and friends helps add a new dimension to the at-home dining experience.

Check out: Purple Carrot, Grady’s Cold Brew Kit, Home Chef

Consumers are vocal about their food and beverage preferences and actively seek out products and brands that align with their values. Several of the food tribes described above align with better-for-you products (depending on your personal health goals), so products with the associated certifications or claims will grab consumer attention in the grocery aisle, as health remains a focal point.  A product may align with more than one group (by being keto-friendly and vegan, for example) just as consumers may support values of multiple movements. As long as brand owners continue to develop products that leverage mega-trends (especially health), many consumers will continue to look to benefit from products whether or not they affiliate with a particular food movement.

If you’d like to continue the conversation on new product development, I can be contacted at [email protected].

Organic fruits and vegetables retained its longstanding spot as the largest of all the major organic categories with sales of $15.6 billion, up 8.4 percent over 2015. Fruits and vegetables accounted for almost 40 percent of all organic food sales. At nearly triple the 3.3 percent growth pace of total fruit and vegetable sales, organic fruits and vegetables now make up almost 15 percent of the produce Americans eat.

Across all organic food categories, shoppers are placing high value on freshness and convenience. In produce, grab-and-go salads and ready-to-eat veggies (fresh or frozen), were top sellers. Consumers in recent years have sought clean products abundant in protein, and sales of organic protein-rich meat and poultry shot up by more than 17 percent in 2016 to $991 million, for the category’s biggest-ever yearly gain. Continued strong growth in that category should push sales across the $1 billion mark for the first time in 2017. Growing awareness of organic’s more encompassing benefits over natural, grass-fed or hormone-free meats and poultry is also spurring consumer interest in organic meat and poultry aisles. Organic dips posted 41 percent growth in 2016, with $57 million in sales, while sales of organic spices grew 35 percent to $193 million.

Increasing consumer awareness that what we put on our body is as important as what we put in our body is driving the growth in organic fiber sales, while a growing desire for transparency, clean ingredients and plant-based products is spurring sales of organic supplements and personal care products.

Sales of non-food organic products increased by almost 9 percent to $3.9 billion, with organic fiber, supplements and personal care products accounting for the majority of those sales. Adequate supplies of organic textiles are a continuing challenge in the organic fiber market; however, U.S. organic cotton farmers produced a record 17,000-plus bales in 2016, which should help alleviate some supply concerns.

"The organic industry continues to be a real bright spot in the food and ag economy both at the farm-gate and check-out counter," said OTA’s CEO and Executive Director Laura Batcha. "Organic products of all sorts are now found in the majority of kitchens and households across our country, but the organic sector is facing challenges to continue its growth. We need more organic farmers in this country to meet our growing organic demand, and the organic sector needs to have the necessary tools to grow and compete on a level playing field. That means federal, state and local programs that help support organic research, and provide the organic farmer with a fully equipped tool kit to be successful."

In recent years, "clean label" has come to the forefront of industry trends. However, elements of clean label, such as organic and non-GMO (genetically modified organism), have been part of the market vernacular for decades. And while, organic production methods disallow GMOs, "non-GMO" is trending as the go-to label claim, with U.S. retail sales of non-GMO food and beverages estimated to reach $330 billion by 2019. Download Food Insider Journal’s "Organic & Non-GMO: Exploring the Consumer Disconnect" issue that explores the disconnect among consumers about these different, yet complementary, certifications and terms.

There’s been a lot of buzz in the beverage industry around the “F” word the last few years. By this, of course, I mean function. Inherently beneficial ingredients, as opposed to ones used for fortification, are the latest trend in functional beverages.

The shift toward ingredients that are naturally beneficial stems from the clean label movement. As brands innovate to develop exotic flavor combinations while also introducing healthful ingredients, there has been a spike in the use of adaptogens, superfoods and natural sources of energy. These ingredients give beverages flavor and function without marring ingredient statements. The following are some functional ingredients to watch in the coming year:

More Botanicals Flourishing

Lavender, elderflower, ashwagandha and curcumin are the next wave of trendy botanical ingredients in beverages. Ashwagandha, an adaptogen, helps our body adapt to stressful situations by lowering our cortisol levels. Lavender also supports stress relief, and the distinct floral flavor is already used in teas, lemonades and cocktails. Curcumin (the main active ingredient in turmeric) and elderflower are recognized for their anti-inflammatory properties. Curcumin can be found in beverages with turmeric, or as an extracted ingredient in innovative beverages like ARYA, a curcumin-infused sparkling water. Elderflower has been a popular liqueur flavor for years, but expect to see this ingredient in other beverage types like teas, juices and sparkling waters.

Innovations with Mushrooms

Mushrooms are being used in beverage formulas in a variety of applications. Chaga, reishi and cordyceps are the next “it” ingredients from the mushroom family, with an extra emphasis on chaga. They’re adaptogens, rich in antioxidants, and are associated with stimulating the immune system. Chaga is also suggested to support GI health and improve cholesterol levels. These superfoods are typically found in coffee or tea products like REBBL Elixirs and Four Sigmatic Mushroom Coffee Mix, but expect them to be used in other beverage categories down the line. Another novel application for mushrooms is MycoTechnology’s vegan mushroom protein PureTaste. MycoTechnology recently secured $35 million in funding to take PureTaste to the market, and a large investment from major investors like Kellogg suggests that innovation with the ingredient is on the horizon.

Buzz About MCT Oil

The butter coffee trend helped put MCT oil on the map, but the benefits associated with it are keeping it there. These medium chain triglycerides are naturally found in coconut oil, and proponents say it helps our bodies convert energy into carbs faster because it’s easier to digest. It’s also associated with supporting cognitive health, which is a function in high-demand by consumers. MCT oil is especially prevalent in the sports nutrition sector, but it’s being called out in other types of beverages like coffee and creamers.

Continued Growth for Cascara

Made from the dried skins of the coffee cherry, cascara was a hot ingredient this summer despite being novel and exotic. It earns its appeal for a variety of reasons, including flavor, function and sustainability. Cascara is a natural source of caffeine, but is also (perhaps ironically) thought to aid with insomnia as well as liver and digestive health. It garners support from consumers who value reducing food waste since it uses part of the coffee plant that may have previously been discarded. Cascara is currently offered in a latte at Starbucks, and in a handful of ready-to-drink beverages (RTD) like Slingshot Cascara Tea, Caskai Sparkling Cascara Tea and Arabica Soda.

Superfood Lattes on Instagram Feeds

Superfood lattes and latte mixes are very much an emerging category, and are something we are primarily seeing in foodservice. They are stunning super lattes inspired by Australian menus, and include ingredients like turmeric, beetroot, rose, taro, blue algae and charcoal combined with milk. These lattes are fortified with ingredients that offer health benefits, but their colorful appearance is what has made them a staple on Instagram. Although superfood lattes are typically found oversees, Bluestone Lane, a café with locations in New York City and Philadelphia, offers these Instagram sensations, and I expect more cafés and even RTD brands to follow suit.

Collagen Everywhere

Beauty enhancing ingredients are becoming more mainstream, and collagen is the rising star. Collagen supports the enhancement of hair, skin and nails, and several products featuring the ingredient are hitting the market. At this year’s Expo East, NeoCell Corp. and Nuttzo showcased collagen protein bars. Collagen also can be found in beverages like All Beauty Drink and Beauty and Go. Expect this beauty enhancing ingredient to be featured in more beverages soon.

Detoxing with Activated Charcoal

Activated charcoal is another ingredient gaining popularity, and is found in products ranging from the superfood lattes mentioned earlier to juices to ice cream and pizza. It’s ultra-absorbent and can absorb everything that hits your digestive tract, which can be very detoxifying. There is some debate around activated charcoal in food and beverage because of how it may interact with some medications, but right now it’s an ingredient garnering a lot of attention.

Thanks to the proliferation of functional beverages, consumers are no longer limited to supplements for consuming inherently beneficial ingredients. There are so many options in the functional beverage category that consumers can pick and choose beverages with benefits that fulfill their individual needs. Although some of these inherently beneficial ingredients may be novel and unfamiliar, they are considered clean label and are likely won’t turn off label-reading consumers.

Is there an ingredient or product that caught your attention, or another ingredient that you think will gain notice in the functional beverage category? I’d love to continue the conversation about the functional beverages more in depth. As always, you can email me at [email protected].

FDA has proposed a rule to revoke an authorized health claim for soy protein and its relationship between soy protein and reduced risk of coronary heart disease (CHD).  Based on its re-evaluation of the totality of the publicly available scientific evidence now available, FDA said evidence does not support its previous determination that there is [significant scientific agreement] SSA to support the authorized health claim.

In 1999, FDA approved the health claim that “25 grams of soy protein a day, as part of a diet low in saturated fat and cholesterol, may reduce the risk of heart disease." The agency, responsible for evaluating health claims on packaged foods since 1990, has never revoked a health claim and only authorized 11 other health claims. Once the proposed rule is finalized, FDA said it may consider allowing the use of a qualified health claim, which are somewhat weaker and based on limited evidence.

“For the first time, we have considered it necessary to propose a rule to revoke a health claim because numerous studies published since the claim was authorized in 1999 have presented inconsistent findings on the relationship between soy protein and heart disease," said Susan Mayne, director, FDA’s Center for Food Safety and Applied Nutrition (CFSAN). “This proposed action, which has undergone a thorough FDA review, underscores our commitment to providing consumers with information they can trust to make informed dietary choices."

While some evidence continues to suggest a relationship between soy protein and a reduced risk of heart disease—including evidence reviewed by the FDA when the claim was authorized—the totality of currently available scientific evidence calls into question the certainty of this relationship. For example, some studies published after FDA authorized the health claim show inconsistent findings concerning the ability of soy protein to lower heart-damaging low-density lipoprotein (LDL) cholesterol.

“Our review of that evidence has led us to conclude that the relationship between soy protein and heart disease does not meet the rigorous standard for an FDA-authorized health claim," Mayne said.

According to FDA, between 200 to 300 food products, including soy milk, supplements, snack foods, soups, tofu etc., bear this health claim. The agency estimates total annualized costs of $35,000 to $81,000, when the relabeling costs are annualized over 20 years at a 7% discount rate. The initial one-time costs are $370,000 to $860,000.

The proposed rule was announced Oct. 30 and is open for comment for 75 days, at which time the FDA will consider the comments received along with the existing information to determine whether to proceed with final rulemaking. In the meantime, manufacturers will be allowed to keep the current authorized claim on their products until the agency makes a final decision.

In a statement, American Soybean Association (ASA) President and Illinois farmer Ron Moore, said: “In a time when heart disease is the No. 1 cause of death both in the United States and the world, we can’t afford to discourage people from taking steps to improve their diets with heart-healthy ingredients. There is still evidence that shows eating soy protein can help reduce the risk of heart disease, and while we are of course disappointed that FDA is looking at moving the health claim for these products from ‘unqualified’ to ‘qualified,’ it’s important for consumers to remember that soy protein can be an important part of a heart-healthy diet. Even in today’s announcement, FDA still refers customers to the agency’s 2015-2020 Dietary Guidelines, which state that healthy eating patterns include soy beverages and a variety of protein foods, including soy products. Moving forward, we hope that in its upcoming reevaluation of the available data, FDA will focus on the many studies that show the heart-healthy benefits of a diet that includes soy protein."

The Soyfoods Association of North America (SANA) issued a statement voicing its concern over the proposal to modify the claim from unqualified to qualified. “Numerous scientific studies published before and since the soy protein health claim was approved in 1999 consistently show that soy protein lowers LDL-cholesterol and that the totality of the evidence supports continued approval of an unqualified claim. FDA’s decision is inconsistent with 12 other countries that have authorized health claims on soy protein and heart disease, including Health Canada’s most recent approval of such a claim in 2015," the association said.