Food & Beverage Insider is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Sitemap


Articles from 2020 In April


COVID-19: Industry Updates

Trump moves to keep open meat, poultry plants during pandemic

Article-Trump moves to keep open meat, poultry plants during pandemic

Meat Production Line 2020

President Donald Trump on April 29 announced measures to ensure Americans have continued access to beef, pork and poultry amid a pandemic that has sickened food workers and led to a shutdown of several plants across the nation.

Trump’s executive order directs USDA to ensure, to the maximum extent possible, that meat and poultry processors continue operations without interruptions.

Responding to the announcement, Agriculture Secretary Sonny Purdue said his agency will work with meat processing firms to verify they are operating in accordance with guidance from the Centers for Disease Control and Prevention (CDC) and Occupational Safety and Health Administration (OSHA).

The guidance recommends certain actions so employers can reduce the risk of exposure to the coronavirus, which has already led to more than 60,000 deaths in the United States. Those measures, the North American Meat Institute said, include such things as temperature checks, face coverings, testing and social distancing when possible.

Commenting on the executive order, Mike Brown, president of the National Chicken Council, a trade group representing the chicken industry, reported his industry is following federal guidelines. He also said many companies have consulted with infection disease doctors to craft site plans. However, Brown maintained localities and states are not uniformly enforcing CDC guidelines in plants.

“This patchwork approach is posing grave risk to the supply chain and threatening great disruption to NCC member companies,” Brown said in a statement. “There must be a uniform approach across all states and we are hopeful that today’s announcement is a good first step in achieving that goal.”

Outbreaks of coronavirus, the White House acknowledged, have affected large meat processors and their workers, with potentially severe consequences for the nation’s food supply.

“Closure of a single large beef processing plant can result in the loss of over 10 million servings of beef in a single day,” according to a White House fact sheet related to Trump’s executive order. “Similarly, the closure of a single plant can eliminate more than 80% of the supply of a particular meat product—like ground beef—to an entire grocery store chain.”

Marc Perrone, the president of the United Food and Commercial Workers International Union (UFCW), said during an April 23 call with reporters that his organization had documented 13 deaths and more than 5,000 workers who had fallen ill or been exposed to the virus. Thirteen plants with workers represented by the union have shut down at some point during the pandemic, affecting 24,500 employees, he added.

“Unless immediate changes are made, America’s food processing and meat packing workers are in danger, and so is America’s food supply,” Perrone said.

He called for additional measures to better protect workers, including more testing, essential access to personal protective equipment and mandated social distancing, among other actions. But given the nature of the work at meat production plants, some measures are difficult, if not impossible, to implement.

“At my workplace, people are working shoulder to shoulder,” Achut Deng, a worker at the Smithfield Foods pork plant in Sioux Falls, South Dakota, said during the call hosted by UFCW.

Deng is among the more than 1 million Americans who have tested positive for COVID-19. She also passed on the virus to one of her three children.

“It was very scary,” Deng said.

On April 12, Smithfield announced that its plant in Sioux Falls—one of the largest U.S. pork processing facilities supplying nearly 130 million servings of food per week—would remain closed until further notice. The company also has closed plants in other locations.

“The closure of this facility, combined with a growing list of other protein plants that have shuttered across our industry, is pushing our country perilously close to the edge in terms of our meat supply,” Kenneth Sullivan, president and CEO of Smithfield, said in a statement at the time of the announcement.

Plant closures in several states and Alberta, Canada represent about 10% of all beef production and 25% of pork production in the United States, according to Mark Lauritsen, a UFCW official.

“The coronavirus poses an unprecedented threat and challenge to the workers across this industry,” he said during the call with journalists. “Never in my 30 years of experience have workers faced anywhere close to the risks that they’re currently facing in the plants across this country.”

 

Drink up: Winning strategies for healthy beverages – digital magazine

White-paper-Drink up: Winning strategies for healthy beverages – digital magazine

FBI-DM-Beverage-1540x800.jpg

Register to access this resource

Registering as a member of Food & Beverage Insider will give you free access to premium content including digital magazines, webinars, whitepapers and more.

Takeaways for Your Business:

  • 44% of consumers want benefits from their food and drink, including energy, relaxation, and more.
  • Research & Markets projects the functional beverage market to reach more than $200 billion by 2024.
  • New technology and ingredients provide formulators what they need to deliver function and flavor.

Underwritten by:

FBI Beverages DM logos.jpg

Register to access this resource

Registering as a member of Food & Beverage Insider will give you free access to premium content including digital magazines, webinars, whitepapers and more.

PepsiCo, Bang Energy sign North American distribution agreement

Article-PepsiCo, Bang Energy sign North American distribution agreement

PepsiCo

The strategic alliance is effective immediately and pairs the strength of PepsiCo’s vast distribution network with Bang, third-largest brand in the energy category. This is the second major energy drink transaction completed by PepsiCo in less than two months. On March 11, PepsiCo announed it would acquire Rockstar for $3.85 billion, further bolseting its footprint in the energy drinks category.

According to Kirk Tanner, CEO, PepsiCo Beverages North America, the alliance plays a central role in PepsiCo’s overall energy-beverage strategy and enables the company to significantly accelerate the distribution of Bang Energy to meet rising consumer demand.

The Bang Energy brand was introduced in 2012 and is carried in more than 200,000 outlets in the United States with products designed to provide functional benefits to the next generation of energy consumers. “Bang is committed to serving zero-calorie, highly effective innovation and exceeding our consumers' expectations. When it comes to the category, we have invented the future by reinventing the game,” said Bang Energy CEO Jack Owoc.

Symrise unveils Top 10 flavor trend for 2020

Article-Symrise unveils Top 10 flavor trend for 2020

2020 flavor trends

Food and beverage trends emerge from a combination of factors ranging from menu trends to nutrition research to sustainability demand, all of which can combine to drive the food and beverage industry forward.  With the rapid escalation of the COVID-19 pandemic, Symrise noted a trend of returning to simplicity, comfort food, and value making an impact on consumer behavior.

Top 10 flavor trends for 2020 include:

  1. Tea Inside
  2. Next-Gen Adaptogens
  3. Drink to Your Health
  4. Fruit Gets Funky
  5. Nature Added
  6. Spice & Salt Meets Sweet
  7. Incredible Spreadables
  8. Prime Classics
  9. Next Wave Asian
  10. Global Horizons 2020
COVID-19: Industry Updates

Product developers shifting food, beverage R&D during COVID-19 impact – podcast

Audio-Product developers shifting food, beverage R&D during COVID-19 impact – podcast

The food and beverage industry is in a state of constant evolution, which means brands not only must predict market trends and consumer demands but also have the ability to formulate healthy products. However, the Coronavirus outbreak has thrown a big wrench into the food and beverage sector and we are witnessing a fundamental shift in the business model. The pandemic is touching every aspect of the food market—from the farmers, the ingredient supply chain, processors, manufacturers and distribution. Industry trade shows and events have been canceled or postponed, and many of those events are ingredient-centric, which is the lifeblood of food and beverage innovation equation.

During this Food & Beverage Insider Podcast, Judie Bizzozero, editor in chief, is joined by Rachel Zemser, CFS, CCS, MS, to discuss how food and beverage product developers are adopting a new at-home R&D model during the COVID-19 pandemic.

Key insights include:

  • How industry is adapting to a new set of rules in the face of COVID-19.
  • How ingredient suppliers are working with food scientists and consultants to deliver ingredients in a timely manner.
  • The necessary tools food scientists need to continue their important work.
  • How companies are successfully shifting to virtual platforms for client meetings, tastings, trade shows, etc.
  • Whether the lasting effects of COVID-19 will change the in-person aspect of food and beverage product development.

Links and resources:

Got feedback? Email Judie at [email protected], or tweet to @FoodBevINSIDER

Podcast transcript

Judie Bizzozero, editor in chief, Food & Beverage Insider: Hi, I'm Judie and welcome to another edition of Food & Beverage Insider podcast. With me on the phone today I have Rachel Zemser who is a certified food scientist and culinary scientist and owner of the food science consultancy A La Carte Connections. She’s also food chemistry adjunct professor at San Francisco State University and a frequent speaker at our SupplySide shows. Rachel, thank you so much for joining me today.

Rachel Zemser, CFS, CCS, MS, and owner of A La Carte Connections: It's great to be here.

Bizzozero: Today we are going to be talking about a COVID-19, which obviously is a topic that has been in the headlines for months and will probably continue to be so. Businesses of all types are being negatively impacted by the Coronavirus outbreak, and food and beverage industry is not immune. It seems we are witnessing a fundamental shift in the business model, and this pandemic is touching every aspect of the food market—from the farmers, the ingredient supply chain, processors, manufacturers and distribution. We’ve also had many important industry trade shows and events canceled or postponed due to COVID19. And many of those events are ingredient-centric, which is the lifeblood of food and beverage product equation. This must be incredibly frustrating for you as a food scientist.

Zemser: It's actually a very sad year for myself and all the other food scientists who love and going to all of all of the trade shows out there we need these trade shows to be able to interact with our ingredient suppliers and to learn about what's new and what are the hot topics and what technology is emerging and so on. So yeah, it's a difficult year that we have to miss out on all these shows, but I think it'll just make us appreciate the shows even more when we get to go back to them once, everything reopens.

Bizzozero: So, this shift. As a food scientist, I mean we need food. You are still developing new prototypes, new products, you're working with companies large and small. How has this really affected your day-to-day business?

Zemser: So, you know, it's interesting, because when the pandemic began, I really thought that I would see a huge decrease in work. I thought maybe you know companies wouldn't come to me. Maybe they would just stop all new product development, but that has not really been the case. I haven’t probably had as many inquiries from the smaller startups that I normally have, but some of my regulars are still coming around and they still want to do R&D with me and have me make up prototypes and samples. I feel like a lot of other food companies, especially companies that make shelf stable, ready-to-eat products are probably still pretty busy and they probably still have a lot of work to do because that industry is actually doing pretty well. People are buying shelf- stable snacks and products and energy bars and candy and beverages. In case you know we all have to go underground for a year … like we all want to stock up on everything. So, we are all making these products. We are continuing to make these products.

 

Bizzozero: So, to make these products you need ingredients. How are you getting your hands on these ingredients? What are the challenges that you're facing in terms of supply chain, so to speak?

Zemser: Yeah, so as a consultant I definitely rely very heavily on ingredient suppliers in all areas of the ingredient world. You know, I'm constantly requesting flavors and starches and stabilizers and meat analogues, protein powders. So far, I've actually found that all of the ingredients suppliers are still are still providing. The reps are getting back to me and you know, they're sending me samples. It's not quite as fast as normal, but that's fine and I usually just let my customers know it may be an extra week before I get this in, but overall, you know, in my conversations with the ingredient suppliers they have been telling me that they are still running. They still have some people in-house, just not as many. There may be two people in the shipping department instead of the usual 10 so it takes a little longer. But I think the ingredient suppliers are still being great and very proactive at following up and getting back to me and getting me everything I need. So that's been really good because I've definitely been needing a lot of a lot of different flavors and different ingredients to get my work done.

Bizzozero: What other tools do you rely on as a food scientist that maybe you took for granted in the pre-COVID-19 days or has that even changed?

Zemser: I've been a consultant for a long time and I've always had a workspace to do my R&D in so for me not a whole lot's changed. However, I have a lot of food science friends who work in, you know, in in companies that have all kinds of other people there like you know with sales reps and R&D teams and laboratories and pilot plants and things like that. And I know that a lot of those food scientist have had to work from home. So, I think that that while I have not had a lot of those issues, I've been trying to give them some advice on what types of tools they should have that will allow them to continue doing their R&D in a home setting. I actually put together a little list of just the basics. As a food scientist, especially, a product developer, I don't need a gas chromatograph or any pieces of extremely expensive large equipment filling up rooms. I really just need the basics to do formulation and R&D work … kitchen-type tools … really just slightly more sophisticated tools. If someone has a scale—a really good scale that goes out to the point 100th decimal point and that usually can weigh up to 500 or 1000 grams, that's key. That's probably the most important thing that a food scientist could have at home to keep on doing the R&D and everything else it can really be bought online or provided by the company, including things like disposable plastic pipettes, a pH meter, a refractometer, lots of benchtop models for those that are just a couple $100 apiece. You know having some boxes and ice packs for shipping out samples quickly. So, it's really quite doable for food scientist to work from home if they have enough space to do it in. I know that a lot of food companies are usually located in areas that are much more affordable to live in than the Bay Area, so most people live in probably larger houses than I do and have either a basement or a corner of a garage or a portion of the kitchen that they can just kind of clear out and set up for their own experimentation.

Bizzozero: OK, great and thank you for what you're doing and thank you to the thousands of others like yourself that are keeping our industry rolling. The customers that you're working with, that you are consulting with, are they requesting any particular type of food category whether it be a nutrition bar, a snack, a protein shake? Have you seen any of those requests shift to maybe foods or beverages with more immunity properties, more weight management? I know that there's a lot of eating going on at home and a lot of alcohol consumption. I'm just wondering if you've seen a shift in the patterns of requests that you're getting from your customers?

Zemser: I haven't really seen any big shifts to products that would somehow be more aligned with what's going on right now, but I am seeing you know probably the trends of just looking for more shelf-stable healthy, on-the-go products that have a long shelf life. You know that continues to be a pretty popular request more than ever. Definitely seeing a lot more requests of can you put more caffeine in this. That’s been a very big trend—jacking up the food with lots of extra caffeine. I don't know where that came from, but I guess people just don't necessarily want to drink the caffeine or they don't want super high- sugar caffeinated drinks they want more healthy caffeinated type products like caffeine and energy bars that kind of thing.

Bizzozero: What else was on your list of things to chat about?

Zemser: I just wanted to relay the concept that food science work can be done at home, and suppliers are out there and they're ready to provide ingredients to us. While there's a bit of a slowdown, it's not that slow. It’s maybe like you need to kind of balance in an extra week or so to get things to arrive when you need them. I think that the R&D work can be done off-site. As a consultant I've always relied on things like FedEx and UPS shipping to get things to the client quickly and that's been as strong as ever. UPS is coming on time and they're picking up and FedEx and all the other carriers picking up packages. You don't have to get together with the sales team and the marketing team. There doesn't have to be like 30 people in the room tasting the product together. The products can be sent out to 10 different people and then we can all meet on Zoom and just have a group tasting together but all in our own location. I've had a couple of meetings like that and that's probably one of the changes that I've been getting used to. I think that when the pandemic is over, I'm not going always feel the need to travel as much as I used to the customer for on-site tastings together. There's no reason to spend thousands of dollars to meet in person with someone to taste a slice of pizza or to taste a beverage. I can just overnight it for $100, and we can just taste it together online. I have samples on my end and they have samples on their end and we can all see each other’s faces.  You know that's something that has definitely been a change and I think that that change could last a little longer after everything is over. We may not need to travel as much anymore/

Bizzozero: Yeah, I totally agree. I think that this is a completely new way of everyone doing business on a global level and it will be interesting to see how the trade shows play out in the next you know let's say six months. Kudos to what you're doing, and you are one of the lifeblood of this food and beverage industry and we appreciate everything that you do.

Zemser: Yeah, no and I appreciate all the suppliers coming through for us. I don't know how other larger companies are operating right now, but I'm sure if the suppliers are giving me, a consultant, the same love and attention as they've always given me, they must be giving the same to all the Krafts, Nabiscos, Unilevers and larger companies that are actually buying lots of ingredients for production. I usually just request samples, but everybody's been great. I mean all of the external resources are there to keep product development going and all the different parts of the food industry.

Bizzozero: I think a lot of the companies are working; even competitors are working together to join forces and help other companies get through this blip on the radar. You know we're all in this to make better food for more people and leave this planet in a better place. With that, thank you so much for being with me here on the phone and hopefully I'll get to see you in person soon. Again, as you said, product development will go on; it is going on and it's just going on and in a different manner than what we're used to.

Zemser: Absolutely, and it can be done at home and the work can just keep on going with minimal investments.

Bizzozero: Awesome, thank you so much Rachel and we look forward to seeing you soon.

COVID-19: Industry Updates

Monitor: Consumers find trust and guidance in natural products industry

Article-Monitor: Consumers find trust and guidance in natural products industry

natural-products-industry-health-monitor-cover.png

A global lockdown might make weeks feel like months and months weigh like centuries, but business allows little room for ennui. As distracting as the daily inundation of the negative can be, the time to look forward is always now. In this new weekly feature, Informa Markets provides  right-now-right-here update. Look for the Industry Health Monitor each week to learn the major news that is affecting the natural products market immediately and the less obvious insights that could dictate where the market may struggle or thrive in the months to come.

The world is changing quickly. It’s always smart to keep an eye on moving targets—even when it feels like a bull's-eye is painted on everybody and everything.

Consider this: Coronavirus crisis good for natural products industry

While a few protesters and a number of governors are ready to cut the ribbon on a national grand-reopening, a strong majority of consumers are wary that the return to normal is proceeding more quickly than cautiously. Trust in science is high, while trust in leadership varies, with the White House lagging significantly behind governors.

Belief in the natural products industry’s values around personal and environmental health, however, appear to be strengthening, even as an unprecedented economic uncertainty might have consumers looking more closely at personal finances than product labels.

covid19 consumer concerns

Surveyed by New Hope Network through the Suzy research platform, 77% of consumers said their personal health was more important than it was a year ago, compared with 2% who said they were less concerned. That’s not surprising given the nature of the current crisis. Interestingly, concern about environmental health also has risen dramatically, with 67% of respondents indicating it is more important to them than a year ago and only 4% calling it less important.

This combination of high concern and a lack of faith in national leadership could be telling us that consumers will put a high value on brands that exhibit trustworthy behavior and share their concerns for personal and environmental health. Indeed, an analysis of social and mass media mentions and sentiments suggests natural products industry values and attributes are garnering more attention and regard. Reference the new weekly natural products industry enagement indexes below and watch this weekly column for weekly updates.

Analyzing consumer behavior reveals a similar pattern. Behaviors keyed to environmental/social values and nutritional quality both showed steep increases in the past several weeks, as shown on the natural products consumer behavior indexes.

Natural Products Industry Health Monitor indexes

 

 

 

 

Know this: The Amazon indexes

Informa Markets is cooperating with Netrush, a retailer that partners with natural products brands on Amazon, to create a weekly index score. The index aims to provide a snapshot view of consumer trends in various CPG product categories on the Amazon marketplace.

The most recent index scores suggest that the pantry stocking phase of the pandemic characterized by "panic buying" and "pantry loading" has started to recede, but new shopping patterns may be emerging. The daily index suggests that purchases of less frequently restocked items in the health and household department are slowing, but that online purchases of grocery items continues to grow.

Listen to this

Coronavirus cause and effect. It’s easy to get caught up in the headlines and the dark statistics of the daily death toll, but the natural products industry should also be looking at the prospect of a societal “reset,” with people taking a new look at what’s important to their lives, their families and their communities. In the New Hope Network State of Natural and Organic webinar, Whipstitch managing partner Nick McCoy called out seven “silver linings” to the crisis. “Increased Focus on Wellness” is obvious, but “Land Conservation” and “Increase in Community” may be more than just dreams.

McCoy's seven silver linings on the other side

1. Increased Focus on Wellness. Already seeing in immunity purchases, will expand across entire sector as immunity focus translates into healthier food and beverage habits.

2. Move Away from Individualism. New investments in public good, for health especially, and public services.

3. Expansion of Online. Rethink the kinds of community we can create through devices.

4. Domestic Self-sufficiency. Supporting the domestic production in all sectors to reduce or eliminate needs for imports.

5. Land Conservation. Realization that consumption of land for industrial purposes crams animals together, spreading disease.

6. Post-crisis Boom. Based on 1918 flu, people will seek relief from stress, pleasure and a search for community.

7. Increase in Community. We as people are helping others at macro, micro and all levels in between at high levels not seen before COVID-19. Our industry can benefit from increased collaboration.

Check out the complete State of Natural and Organic webinar presentation.

Stop the claims before they start. Dietary supplement trade associations have consistently applauded FDA actions against brands making claims specific to COVID-19 prevention and treatment, but a Department of Homeland Security statement that supplements are “essential” businesses alongside pharmaceuticals and medical equipment raises the onus on responsible brands to call out irresponsible statements. People will take advantage of that upgrade, and somehow convince themselves ‘Great, we can make stronger claims. We can talk about COVID-19,’” says United Natural Products Alliance President Loren Israelsen in a NewHope.com article on the industry's quest to find credibility in the crisis. “That’s something that requires our collective vigilance is to slap that down if we see anything like it.”

Industry (and consumers) need innovation. With grocery stores standing as one of very few destinations of commerce, natural products brands have if nothing else captured the attention of consumers. We’re also seeing reports of “recipe fatigue” popping up in social media. Both of those things suggest consumers will be ready to see innovation when brands are prepared to make the pivot from “what now?” to “what’s next?” In an interview with Food & Beverage Insider, Go Big CEO Ben Koren said consumers will be chomping at the bit for something new. Grocery stores are generally crushing it right now, but their entire innovation cycle has been completely disrupted, or interrupted rather, so new products are really not going to be coming to market for a number of months later than when they were going to. So we think there's actually a huge, pent-up demand right now for new innovative products.”

 

Enjoy this

When grocery shopping becomes a coveted excuse to get out of the house, we can expect all manner of new consumer behaviors. At some point “panic buying” becomes “boredom buying,” or perhaps “warm fuzzy blanket to hide under until this is all over” buying.

bored-panda-meme.jpeg

Methodology footnotes
Netrush’s Amazon indexes: The index score is based on performance of top products in Amazon’s health and household; beauty and personal care; grocery and gourmet food; baby; and pet supplies categories. Products are chosen based on their age and position in their respective categories. Total estimated orders are estimated based on historic “Amazon Best Seller Rank” data and other factors, and the score is weighted by float-adjusted total orders. 
 
Natural products consumer behavior indexes: NEXT Data and Insights survey of n~1,000 collected weekly March 30-April 20, 2020, using a convenience sample directionally representative of U.S. consumers ages 18-65 weighted for age, region and gender. The 2017 survey data are based on responses of 1,000 people nationally representative of the U.S. adult population. Index tracks top two box responses. 
 
Natural products industry engagement Index: NEXT Data and Insights tracks the core 50 trends defining and innovating the natural products industry. By filtering social and mass media listening through these top trends we are able to track weekly indexes of total mentions and Net sentiment of the hot topics representative of the industry from the beginning of March 2020 compared to average weekly scores of the last three months of 2019. This allows stakeholders a view into the pulse of the industry through online conversations.  

Snackification trend begets better-for-you ingredients in snack foods

Article-Snackification trend begets better-for-you ingredients in snack foods

Snackification trend.jpg

“Three square meals” is a routine of the past. As American lives become busier, the traditional breakfast, lunch and dinner schedule is too time-consuming. Enter “snackification,” a term that defines the shift from sit-down meals toward snacking, typically throughout the day, as a replacement for a traditional meal.

“Snackification” fits today’s on-the-go culture; rather than planning and preparing a meal at home, individuals can conveniently get their nutrition in between back-to-back meetings, picking up the kids or right before a workout class. According to Mintel’s 2019 US Snacking Motivations and Attitudes Market Report, 95% of adults snack at least once a day, 70% snack at least twice a day, and consumers who snack at least four times a day are significantly increasing—with Millennials leading the pack. This new eating habit has opened a world of opportunities for consumer-packaged goods as demand for snacks and snack innovation rises.

The snack segment has become a hotbed for innovation within the food industry. Although snack aisles are still filled with the conventional categories—bars, chips, cookies, etc.—there has been a lot of headway made with newer, unique formats, such as butters, clusters and cracklings. Innovation within conventional categories has accelerated as well. The industry is seeing more alluring colors, exotic flavors and flavor combinations, with innovative textures launching nearly daily. However, the biggest trend driving new product development not only in the snack aisle, but the food and beverage industry as a whole, is the “better-for-you” option.

According to the International Food Information Council Foundation’s 2019 Food and Health Survey, while very few survey participants state they are actively following a plant-based diet, 34% state they consume plant-based protein daily. Innovation occurring in the plant-based protein market is another reason for its growth; new sources of protein concentrates are being launched frequently. Soy is the first and most established plant-based protein concentrate, but consumers are now trying to avoid it due to its GMO status. Ingredient suppliers are trying to meet this demand with pea and rice protein concentrates. However, other sources such as legumes, seeds and oats are starting to become more popular among consumers, especially since they play into the popular diets such as keto and paleo.

Overall, “snackification” has really reflected mainstream trends such as the increase in popularity of “better-for-you,” “free-from,” and focus on dietary proteins. Consumers are really looking toward formulators and food and beverage manufacturers to pack their nutrition into portable on-the-go options to fit conveniently into their lifestyles. For this reason, the expectation of continued growth in this area is almost guaranteed.

To read this article in full check out the Formulating strategies for healthy snacks – digital magazine.

Rikka Cornelia is the product manager for Martin Bauer. She has a bachelor’s degree in economics from the University of California, Irvine.

Considerations for getting into the snacks game

Article-Considerations for getting into the snacks game

Snacking.jpg

Demand for small bites translates to big opportunities in the snacks category. Over the past few decades, snacks have transformed from occasional indulgences to everyday necessities. The NPD Group’s recent “The Future of Snacking” report found Americans consumed almost 386 billion snacks in the last year alone; however, the snacking dynamic is changing and many consumers are replacing the traditional three square meals a day with smaller, more frequent eating occasions.

This new lifestyle puts heavy emphasis on convenience, a factor that has become increasingly important to the way consumers across the globe live their lives and cope with the chaos around them. Enter snacks, the sixth-largest category in the natural/organic channel, worth US$7.5 billion in 2018, according to Nutrition Business Journal. Further, the introduction of new products with a focus on functional ingredients is helping drive the global snack market that is forecasted to reach US$620 billion by 2021, according to Research and Markets. While snacks encompass a wide swath of product categories—from sweet to savory, specialty to frozen treats—it’s salty snacks such as potato chips, corn chips, tortilla chips, popcorn, pretzels, etc. that are expected to have the highest market growth in the coming years, noted the research firm.

According to Mintel’s 2019 “US Snacking Motivations and Attitudes Market Report,” 95% of adults snack at least once a day, 70% snack at least twice a day, and consumers who snack at least four times a day are significantly increasing—with Millennials leading the pack. Mondelēz International’s 2019 “State of Snacking” report found 53% of adults say quick, on-the-go bites are more suited to their lifestyle than full meals; 71% say snacking gives them time to connect with themselves; and 53% look forward to the snacks in their day more than the meals.

The report also found snacks are just as important to global adults’ mental health (71%) and emotional well-being (70%) as their physical well-being. What’s more, those in developing markets are especially likely to seek holistic snacks that are supportive of gut health (39%), brain-boosting (34%) and mood-enhancing (33%).

For many consumers, a better-for-you snack is marked by what it lacks—gluten, allergens, unhealthy fats, added sugars or sodium. Yet, many of these ingredients have functional attributes; so formulators are challenged with meeting taste, texture and clean label expectations while using suitable replacements, which isn’t always easy.

Learn more about each of these considerations in the full article in the Food & Beverage Insider Formulating strategies for healthy snacks – digital magazine.

Keto diet trend leads to opportunities for brands

Article-Keto diet trend leads to opportunities for brands

Keto diet trend leads to opportunities for brands.jpg

While keto seems to be getting attention today, it’s not new. Thom King, president, Icon Foods, said, “2021 marks 100 years of the ketogenic diet being used to help with neurodegenerative disorders, in particular epilepsy, which is prevalent in 1% of the world’s population.”

The global ketogenic diet food market is forecasted to reach US$12.35 billion in 2024 at an estimated compound annual growth rate (CAGR) of 5.3%, according to a press release from Reportlinker.com. European consumers dominate the market, followed by North Americans.

The sweet spot for the food industry is to formulate foods that appeal and deliver the nutritional targets dieters want and, in some cases, the sweetness they miss. But formulating keto is especially challenging because it has very stringent parameters.

The keto diet is rich in lipids. The classic diet used for medical therapy is 90% fat. The goal is to reach a ratio of four portions of fat to one portion of protein plus carbohydrate (Frontiers in Neuroscience 2019:13:5) Fats become the primary fuel source of the body. Catabolism of fatty acids in the liver produces ketone bodies. This fat-burning pathway is called ketogenesis.

According to Harvard T.H. Chan School of Public Health, there are different versions of the keto diet, but they all reduce carbs. Total carbohydrate intake can range from 20 g to 50 g per day. Fat content provides the lion’s share of calories —70% to 80% of total daily calories. General recommendations call for 5% to 10% of calories from carbohydrates and 10% to 20% protein.

But, not all carbohydrates count. King, who is also author of the book “Guy Gone Keto,” explained net carbs is a term used for food manufacturers to account for foods containing fiber and sugar alcohols that don’t have a big impact on blood sugar levels. Simply subtract fiber and sugar alcohols from total carbohydrates to calculate net carbs.

Keto certification is a path to enhanced consumer trust. Ketogenic.com is one such ketogenic certification program. “We are the only certification that conducts testing on products,” said Chelsea Malone, M.S., ketogenic certified manager, Ketogenic.com. “While other certification bodies only review a nutrition label, we conduct blood testing on all products that are certified through our program.”

The Ketogenic Certified logo gives companies a competitive edge in an otherwise saturated market. She calls out some key benefits, including consumer trust. “Studies show sales increase if consumers feel like they can trust the product,” she said. “When consumers see this logo, they know they are picking a high-quality, ketogenic product. Marketing [is important as well].”

To read more check out the Food & Beverage Insider Formulating for the keto consumer – deep dive.

Cindy Hazen has more than 25 years of experience developing seasonings, dry blends, beverages and more. Today, when not writing or consulting, she expands her knowledge of food safety as a food safety officer for a Memphis-based produce distributor.

Formulating in the healthy snack space

Article-Formulating in the healthy snack space

Formulating in the healthy snack space.jpg

Over the past few decades, snacks have transformed from once-in-a-while indulgences to everyday necessities. In fact, the NPD Group’s recent “The Future of Snacking” report found Americans consumed almost 386 billion snacks in the last year alone. While this category still includes conventional mainstays like potato chips and cookies, consumers no longer accept that snacks must be defined as unhealthy treats.

“The snacking dynamic has changed over the past several years, and many people now replace meals with snacks,” said Mark Stavro, senior director of marketing at Bunge Loders Croklaan. “This makes snacks with functional benefits and health attributes a must for supporting overall nutrition.”

For many consumers, a better-for-you snack is marked by what it lacks; for example, gluten, unhealthy fats or a high sodium content. The challenge for formulators is meeting taste, texture and clean label expectations while using suitable replacements, which isn’t always easy. “Healthy products are most successful when they have a clean label with fewer ingredients,” said Rick Ray, director of food technology and sales development at Axiom Foods. This becomes difficult when eliminating one unwanted ingredient requires a number of others to take its place.

It cannot be overlooked that innovative ingredients like pulses also add protein to products, which represents yet another opportunity (and challenge) for healthy snack formulators and brands: meeting consumers’ desire for functional snacks with nutritional benefits.

“Consumers are turning to protein for a variety of reasons including satiety, sports recovery, weight management and more,” said Stephanie Lynch, vice president of sales, marketing and technology at IDF. “It’s no wonder that, walking through the aisles of the grocery store, you will see high-protein claims on everything from cereal to ready meals and even ice cream. There are very few segments that haven’t joined the protein trend and consumers are eating it up.” That said, for many consumers, the source of protein matters just as much, which is why many snack brands are seeking out plant-based options.

Looking ahead, the healthy snack market will face never-before-seen demands, and brands will need to be ready with formulation solutions.

Another emerging trend for 2020 and beyond is personalization, and healthy snack brands able to target products to specific demographics will find success going forward. “By developing snacks for, say, children or active consumers, brands can achieve differentiation, and some are already getting creative,” explained John Quilter, vice president and general manager at Kerry.

To read more check out the Formulating strategies for healthy snacks – digital magazine.

Melissa Kvidahl Reilly is a freelance writer with 10 years of experience covering the natural products industry, from food and beverages to personal care, from research developments to market trends. Her work appears in a number of industry publications, including Natural Products Insider, Food Insider Journal, Natural Foods Merchandiser, Delicious Living and more.