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According to the 134-page “Delivering Government Solutions in the 21st Century” reform plan, the “proposed consolidation would merge approximately 5,000 full-time equivalent (FTE) employees and $1.3 billion from FDA with about 9,200 FTEs and $1 billion in resources in USDA. In the long term, the administration expects this proposal would result in improvements in food safety outcomes, policy and program consistency and more efficient use of taxpayer resources.”

For more than 40 years, the Government Accountability Office (GAO) has reported that the fragmented federal oversight of food safety “has caused inconsistent oversight, ineffective coordination, and inefficient use of resources,” and food safety has been on GAO’s list of high-risk areas since 2007. FSIS and FDA are the two primary agencies with major responsibilities for regulating food and the substances that may become part of food. FSIS is responsible for the safety of meat, poultry, processed egg products and catfish, while FDA is responsible for all other foods, including seafood and shelled eggs.

“There are many examples of how illogical our fragmented and sometimes duplicative food safety system can be,” the report noted. “For example: while FSIS has regulatory responsibility for the safety of liquid eggs, FDA has regulatory responsibility for the safety of eggs while they are inside of their shells; FDA regulates cheese pizza, but if there is pepperoni on top, it falls under the jurisdiction of FSIS; FDA regulates closed-faced meat sandwiches, while FSIS regulates open-faced meat sandwiches.”

The concept of creating a single food safety agency has been previously proposed by the GAO, the Obama administration and other entities; however, neither the Republicans or Democrats considered it crucial, and Congress would have to approve such as change.

FDA and FSIS currently have very different regulatory regimes, consolidating FSIS and the food safety functions of FDA would allow for a better allocation of resources based on risk, better communication during illness outbreaks, and improved policy and program planning through development of a single strategic plan.

The new Federal Food Safety Agency would pursue a modern, science-based food safety regulatory regime drawing on best practices of both USDA and Health and Human Services (HHS), with strong enforcement and recall mechanisms, expertise in risk assessment, and enforcement efforts across all food types based on scientifically supported practices. The agency would serve as the central point for coordinating with state and local entities and food safety stakeholders, rationalizing and simplifying the federal food safety regulatory regime. The reform would reduce duplication of inspection at some food processing facilities, improve outreach to consumers and industry, and achieve savings over time while ensuring robust and coordinated food safety oversight.

Following the food reorganization, FDA would be renamed the Federal Drug Administration and continue with its focus on drugs, medical devices, biologics, tobacco, dietary supplements, and cosmetics.

The deal, expected to close at the of the year, will bring together complementary portfolios and create the second-largest U.S. frozen food company positioned to rival Nestlé and Kraft Heinz. The frozen food sector has experienced a resurgence thanks to more brands rolling out innovative products in response to consumer demand for healthier options.

“The addition of Pinnacle Foods’ leading brands in the attractive frozen foods and snacks categories will create a tremendous opportunity for us to further leverage our proven innovation approach, brand-building capabilities and deep customer relationships,” said Sean Connolly, president and CEO, Conagra Brands. “With greater scale across leading, iconic brands, an unwavering focus on driving profitable growth, and a strong balance sheet and cash flow, we are creating a tremendous platform to drive meaningful shareholder value.”

The two companies share complementary portfolios, supply chains and results-oriented cultures, which are expected to facilitate integration.

Pinnacle Foods’ portfolio of frozen, refrigerated and shelf-stable products includes the brands Birds Eye, Duncan Hines, Earth Balance, EVOL, Erin's, Gardein, Glutino, Hawaiian Kettle Style Potato Chips, Hungry-Man, Log Cabin, Tim's Cascade Snacks, Udi's, Vlasic and Wish-Bone, among others.

Dewey Warner, research analyst, Euromonitor International, said there has been quite a bit of attention lately on the renaissance happening in the frozen food aisle. “There has been an emphasis on the influence of fresh food and the growth in the outer perimeter of grocery stores, so a return to growth and interest in the center frozen aisles is notable. Most of this has to do with frozen food companies finally coming around to some self-reflection and altering the products they have relied on for so long in order to better meet consumers where they currently are (as opposed to consumer priorities suddenly shifting back toward processed frozen foods),” he said.

“That said, the trend toward fresh eating is still powerful and growing. While some of these frozen companies have experienced a resurgence in sales recently, I do think there are limits to how much these frozen categories can rebound. Revamping products to better align with consumer tastes and priorities is absolutely a path to growth in the frozen aisle, but it is not a surefire means to it for all frozen companies; I believe opportunities for growth are ultimately limited in this space. Combining the resources of Conagra and Pinnacle, along with their selections of recognizable and increasingly on-trend health-oriented brands (particularly Pinnacle’s), could help to solidify a portion of this potential growth for both companies and limit the growth potential of competitors, assuring that they can compete well with other large manufacturers, such as Nestlé, and that they fully capitalize on the opportunities that exist while they are available and aren’t left out.”

Dewey also noted Pinnacle’s advantage extends beyond just its frozen ready meals. “It has a huge presence, primarily through its Birds Eye brand, in frozen vegetables, which has increasingly included innovative and on-trend items such as riced vegetables and cauliflower items with bold flavors that are helping to fuel growth,” he said. “This has been further helped along by a migration for many consumers away from heavy consumption of fresh vegetables and toward leaning on frozen varieties, due to convenience and concerns about waste of fresh items.”

Pinnacle’s ownership of meat substitute brand Gardein, along with specialty gluten-free baked goods brands like Udi’s and Glutino, are a huge plus in reaching consumers in other fast-growing specialty areas that Conagra has been absent from.

The Conagra-Pinnacle deal could be one of many on the horizon. Campbell Soup Co.'s stock is on the rise amid speculation that Kraft Heinz and General Mills are interested in acquiring the struggling company. Just last month, Campbell’s CEO Denise Morrison abruptly retired from the position she had held since 2011. Morrison guided the soup giant’s strategic reorganization to better position the company to capitalize on the rapidly changing food industry landscape. In March 2018, Campbell’s completed its $6.1 billion acquisition of Snyder’s-Lance to increase its position as a leader in the snack food sector. The company also acquired Pacific Foods for $700 million in July 2017 to expand its natural footprint.

In June 2017, Amazon paid $13.7 billion in cash to acquire Whole Foods Market Inc., blockbuster deal that effectively changed the landscape of the grocery retail sector.

Mintel’s global analysts recently named four “2018 Summer Food & Drink Trends” expected to take center stage during the dogdays of summer.

Barbecue: Although barbecue selection has become more diverse with the addition of fish and cheese in recent years, vegan barbecue might not have been a consideration for a meat-eater—until now. There has been an increase in specialty vegan products, such as black bean chipotle, catering to changes in consumer tastes.

Ice Cream: The mythical beast that is better-for-you ice cream, characterized by low sugar and high protein has officially arrived in the United Kingdom. Having outsold ice cream giants like Unilever and Nestlé Dreyers to become the best-selling ice cream in the United States over a four-week period in July 2017, Halo Top launched in the UK earlier this year. Among UK ice cream eaters, 32 percent said “low sugar” would encourage them to consume more ice cream.

Snacks: New Mintel research indicates snacks designed to be a companion to beer are poised to do especially well this summer. The combination of alcohol and salty snacks is nothing new, yet just 46 percent of UK beer drinkers would like to see more information about matching food with beer. Similarly, many consumers are looking for bold and interesting flavors: 50 percent of Brazilian snackers agree that unusual/exotic flavors of salty snacks are appealing, while 36 percent of U.S. consumers say they would buy more chips if there are new flavors to try.

Soft Drinks: Goodbye sugar, hello flavor. Amid government regulations like the UK sugar tax, consumers are getting weary of old favorites like soda, cola, and lemonade. Bold flavored sparkling waters is a recent trend bringing naturalness and flavor to the soft drink market, and presents an alternative to sugar and artificial ingredients. They seem to be a natural alternative for many consumers: 53 percent of UK consumers agree that sparkling flavored water is a good alternative to fizzy drinks.

Ketchup, mustard and mayo have ruled the condiment aisle for decades, but new innovative products that pack unique flavor profiles are causing disruption in the category. Case in point, Sriracha. That spicy flavor is now found in a host of products including mayonnaise, dressings and marinades. And a quick scan of the dressings aisle reveals more products packing ingredients that not only are flavorful, but functional. What’s more, the marinade category is bursting with flavor profiles from around the world, providing consumers an inexpensive way to taste the world.

But when it comes to any product, consumers want ingredients that are healthy, sustainable and, of course, taste great. Products in this category create magic with the attractive ingredients in the right ratios. Depending on the type of condiment, dressing or marinade, certain qualities are important to the product. Viscosity, opacity, mouthfeel, suspension, meltaway and how the product sticks to the substrate are critical to the product’s success.

If your company recently launched an innovative condiment, dressing or marinade, the SupplySide editorial team would love to check it out.

Has your company launched a new product in the condiment, dressing or marinade sector that is innovative and saucy enough to win over SupplySide editors? If so, I invite you to enter the 7th Annual SupplySide CPG Editor's Choice Awards that recognize innovative finished products launched to the U.S. consumer market between July 2017 and August 2018 in 30 categories across the supplement and food and beverage markets.

Products must be submitted by the CPG brands or their representatives, not by ingredient or component suppliers. The submission deadline is Wednesday, Aug. 22, 2018.

Winners are selected by the editors based on market innovation, consumer need, scientific substantiation, integrity and the “cool” factor. Finalists will be showcased through the SupplySide Health & Nutrition Network brands, and winners announced at SupplySide West in Las Vegas, Nov. 6-10, 2018.

For more than 20 years, SupplySide has helped those in the food, beverage, dietary supplement, animal nutrition, personal care and cosmetic industries break through the hype and ambiguity to find the information they need to explore, discover, innovate and market their next best-selling product.

The specialty food category outpaced all other food and beverage categories, reporting retail and foodservice sales growth of 12.9 percent compared to 1.4 percent. Sales through foodservice increased 12.8 percent and online by 21 percent.

The top five categories with the highest dollar growth between 2015 and 2017 were water (76.1 percent), rice cakes (64.1 percent), refrigerated ready-to-drink (RTD) tea and coffee (63.2 percent), jerky and meat snacks (62.1 percent), and shelf-stable creams and creamers (61.7 percent). iGens were the largest purchasing group of specialty foods (79 percent), followed by Millennials (67 percent), Gen Xers (65 percent), and Baby Boomers (60 percent).

“The specialty food industry is a business that is constantly evolving,” said Phil Kafarakis, president of the Specialty Food Association. “Consumers of all ages are embracing specialty foods and making purchases everywhere they happen to be—from convenience stores to big box retailers to online, as well as in traditional gourmet shops and groceries. Foodservice and retailers are relying more and more upon our products. The industry’s growth has been building and will continue to maintain momentum for years to come. Our research provides a comprehensive picture of where we are today and can be used to help businesses prepare for future success.”