Cargill to build $21 million House of Chocolate complex

In a move to facilitate better product development and enhance the customer collaboration experience, Cargill is building a $US21 million “House of Chocolate” complex at its Mouscron, Belgium site. The complex, which is currently being built alongside the company’s existing chocolate production plant, will include a state-of-the-art chocolate experience center, a unique pilot plant, a sensory lab and creative workspace for the company’s European research and development (R&D) team of chocolate engineers.

The new 700-square-meter complex will enable customers to experience the convenience of an all-in-one development process, from inspiration, innovation and training, through pilot lab testing, sensory testing and finally, culminating in commercial-scale production—at a single location. The pilot center is scheduled to open in Fall 2021 while the chocolate experience center and sensory lab will be operational in January 2022. The new complex incorporates cutting-edge technology to reduce its ecological footprint, including the use of geothermal energy to significantly reduce energy consumption.

Nestlé launches R&D Accelerator for dairy, plant-based dairy alternatives

Nestlé on Sept. 28 launched its new R&D Accelerator to drive innovation and speed-to-market of sustainable dairy products, as well as plant-based dairy alternatives. Located at the company’s R&D center in Konolfingen, Switzerland, the R&D Accelerator provides a platform for start-ups, students and scientists to leverage the company’s unique dairy and plant protein expertise to quickly bring products from ideation to commercialization.

The R&D Accelerator features a fully equipped test kitchen, as well as a co-working office space. Internal, external and mixed teams will leverage Nestlé’s capabilities to bring novel ideas from concept to test shop in only six months. They will have access to Nestlé expertise and key equipment such as small to medium scale production equipment to facilitate the rapid upscaling of products for a test launch in a retail environment.

Chr. Hansen to sell its Natural Colors division to EQT

Chr. Hansen is selling its Natural Colors division to EQT for approximately €800 million. The acquisition, expected to close mid-2021, allows EQT to build on the existing strategy of continued organic growth in current markets with a focus on the U.S. and Asia. EQT will also support acquisitive expansion within the highly fragmented foods coloring market by utilizing the Natural Colors platform for industry consolidation. EQT plans to invest significantly in the company’s organization and strengthen its digital infrastructure, sustainability capabilities and supply chain setup.

Utz Brands acquires H.K. Anderson Business from Conagra

Utz Quality Foods, a subsidiary of Utz Brands Inc., entered into a definitive agreement with Conagra Brands Inc. to acquire certain assets of the H.K. Anderson business, a leading brand of peanut butter-filled pretzels. The transaction, with a purchase price of less than $10 million, enables Utz to jump-start its entry into the growing filled pretzel segment, leveraging the synergies of its salty snack platform. The acquisition includes intellectual property specific to the H.K. Anderson brand and does not include employees, facilities or equipment. The transaction is expected to close in November 2020, subject to customary closing conditions.

While traditional versions of pretzels continue to enjoy popularity, increased consumer snacking presents opportunities to accelerate momentum in the pretzel category through innovation. According to IRI, dollar sales of pretzels increased 10% percent to $1.4 billion, based on data for the 52 weeks ending Sept. 6, 2020, an increase of more than $120 million versus a year ago.

Phytolon raises $4.1M to fund natural food coloring technology

Phytolon, a portfolio company of The Trendlines Group Ltd., has secured $4.1 million in funding for its fermentation-based technology for the production of plant-based food colors. Founded in 2018 based on licensed technology through the Weizmann Institute of Science, the company leverages a proprietary, fermentation-based technology to produce plant-based food colors.

“This round will enable us to reach the market with our healthy and sustainable food colors that offer a high quality and cost-efficient solution to the food industry,” said Phytolon CEO Halim Jubran, Ph.D. “The new round will also promote our collaborations with our potential clients, with whom we have been in communications during the past year and a half.”

All of us at New Hope Network miss gathering with the natural and organic products community, and we were excited to welcome everyone during Natural Products Expo West 2021 in March.

Due to the uncertainty of the ongoing COVID-19 crisis, however, we have decided to reschedule Expo West 2021 for May 24-27, 2021. The event will have a new day pattern of Monday through Thursday and will conclude in advance of the Memorial Day holiday weekend. We hope the additional 12 weeks will result in more of the progress and recovery needed to return to travel and gatherings with the necessary security and safety assurances in place. We are committed to providing timely and transparent communication as we navigate this next phase together.

We understand these dates may not work for everyone, particularly our Expo West 2021 exhibitors who work hard every day to prepare for such an important show. Exhibitors will receive an information later today outlining next steps and options. We appreciate your patience as we continue to work through the challenges associated with the COVID-19 pandemic.

The health and safety of our community remains our top priority during these times, and we are continuing to develop and implement a variety of new health and safety policies for Expo West 2021. An outline of our current efforts can be found on the COVID Health and Safety Measures page of the Natural Products Expo West website. These efforts will continue to evolve as we prepare for the show and collaborate with various authorities including the State of California, Orange County Health Department, Center for Disease Control (CDC) and World Health Organization (WHO) to ensure our community will remain safe during the entirety of the show.

Many aspects of Expo West 2021 will be different. Events and education will be held Monday through Thursday and exhibits will take place Tuesday through Thursday. We have decided to discontinue the Super Pass upgrade for the entirety of 2021. All education sessions will now be included in an Exhibit Hall badge. We will also be offering virtual options for most of our education sessions to account for decreased room capacities and for those who are unable to travel or attend the show over the new dates. Some of our larger networking events will be altered or cancelled to maintain health and safety measures. More information regarding how the show will continue to transform will be provided in the upcoming months.

Barring further significant impacts or changes to the event, we intend to open registration by mid to late November. We are working with our hotel partners to ensure we can plan for and communicate any changes that may result from the date shift, and we intend to open housing at the beginning of 2021. We encourage everyone to continue checking the Expo West website to stay up to date.

For questions regarding the rescheduling of the show, please refer to the Frequently Asked Questions page or reach out to staff at [email protected]. Thank you for your patience, support and understanding as we adapt to these new times. We are incredibly grateful for this community and we hope to see all of you at Natural Products Expo West 2021 in May.

Grains like quinoa, chia, kamut, millet and others may be considered “ancient,” but in a time when consumers are more interested in innovative, sustainable, clean label products than ever before, these ingredients are seeing their popularity in modern times continue to grow.

Grains trending up

The wholesale avoidance of gluten that has taken hold over the last decade—combined with the inherent sustainable, clean label attributes of ancient grains—has sparked a renewed interest in these ingredients that doesn’t appear to be slowing down. From the bakery, where proprietary SPINS data shows a 7.4% sales growth over the past year for products made with ancient or whole grains, to the frozen breakfast aisle (25.1% sales increase over the past year), to unexpected places like baby foods and beverages, consumer interest in products made with these ingredients shows a clear trend: Ancient and whole grains are “in.”

Any trend in the food and beverage industry begins first and foremost with consumers—and today’s consumers are as discerning as ever when it comes to what they eat and drink. Consumers are seeking food and beverage that delivers on two fronts: both containing functional ingredients and claims related to personal and planetary health, and devoid of ingredients perceived as unnatural or unhealthy such as sugar, gluten, GMOs, and artificial sweeteners and preservatives. A recent survey from Euromonitor International showed more than 30% of consumers look for “all natural” claims on labels; “has limited or no artificial ingredients” and “does not contain GMOs” also ranked high on consumer checklists. The 2020 International Food Information Council (IFIC) Food & Health Survey showed similar results. Nearly half (49%) of consumers said whether a product is considered “processed” affects their purchasing decision, a 43% increase versus 10 years ago. Additionally, the percentage of Americans following a diet has increased over the last year, from 38% in the 2019 survey to 43% now; some of the top diets being followed include “clean eating,” “avoiding gluten,” and “low- or no-carb.”

“As consumers increasingly avoid overly processed foods, clean label grains offer an alternative to bleached, refined wheat flour,” noted Rikka Cornelia, product manager at Martin Bauer Group.

Of course, the ongoing COVID-19 pandemic only serves to increase consumer awareness of health and eating patterns; FMCG Gurus survey data showed from April to July 2020, 62% of consumers have become more conscious about their health, with 79% saying they planned to eat healthier and 56% saying they would be more cognizant of natural claims on product labels.

Ancient grains check many of these boxes. By definition, these grains have not been altered through hybridization or genetic modification; they are lower in carbs than white and even whole wheat flours; and many are free of gluten, allowing them to be enjoyed by consumers avoiding gluten for health or other reasons.

With the market clearly trending up for ancient grains and the inherent benefits they offer, the onus lands on brands and formulators to provide what consumers are looking for with innovative and, most importantly, tasty options.

Innovating with ancient grains

One area this innovation is being seen in is beverages, especially within the dairy alternatives category. U.S. retail sales of plant-based foods increased 11% in 2019, bringing its total market value to US$4.5 billion, according to the Plant Based Foods Association; Nestle reported 87% of Americans are incorporating plant-based protein into their diets, with nearly two-thirds doing so at least once per week.

This trend toward plant-based beverages has been good news for oat milk, which has gone from a niche hipster coffee-spot offering to ubiquitous in a short time; countless varieties can now be found anywhere from supermarket coolers to global chains including Starbucks and Dunkin’. Sales of oat milk, according to proprietary Nielson findings, increased a whopping 289% year-over-year from March to June 2020. The trendy ingredient has even migrated to other dairy-replacement options such as coffee creamers, ice cream and yogurt.

It isn’t only oats replacing traditional dairy, either. Brown rice, quinoa and even hemp are being turned into creamy, satisfying milk alternatives by brands like Elmhurst, Glanbia Nutritionals and others.

Another ingredient seeing renewed interest is barley. Known primarily for its role in bread and beer production, barley—a good source of protein, fiber, manganese and B vitamins—is now showing up in new and innovative ways. The brand Take Two Barley Milk, according to co-founder and chief operating officer Matt Olsofsky, “bring[s] back the joy and nostalgia of drinking a glass of milk” for those avoiding dairy. It can replace milk in bakery items as well. Barley is also showing up in baby food formulations such as Gerber’s Grain & Grow Morning Bowls containing a mix of barley, oats, quinoa and fruit; as well as purees from NuturMe and Plum Organics.

Quinoa has seen perhaps the biggest and longest-lasting boon from this renewed interest in grains. From 2007 to 2015, U.S. imports of quinoa increased a staggering 1,257%, according to USDA. The U.N. even declared 2013 “The International Year of Quinoa.” The versatile grain can be found in everything from nondairy milks to cereals and breakfast bars, and is quickly becoming a pantry staple.

Truly fitting into the spirit of “old becoming new again,” chia is also seeing renewed interest beyond being grown in clay pots and kept as a pet. As meal replacement becomes increasingly common, especially among Millennials and Gen Z, grains such as chia and flax become attractive clean label options. According to Joni Huffman, senior vice president of sales and marketing at Healthy Food Ingredients (HFI), “We are seeing a surge of interest in chia, which can add thickness and texture to beverages, and continued growth in flax innovation for bars, cereals and supplements.”

And of course, with new and novel applications come new and novel ingredients. Millet, sorghum, teff and fonio—West African grains—are popping up in various ways. “Fonio, as a gluten-free grain alternative and low on the glycemic index, has surfaced as one of the most exciting food trends of 2020,” noted Malick Diedhiou, commodity trader at Terra Ingredients. He noted fonio’s nutty flavor and light, couscous-like texture make it ideal for savory and sweet applications alike.

Of course, once the demand and available ingredients have been identified, a brand must understand and adapt to the challenges that come with formulating finished products.

Formulation hurdles

Paula Labine, marketing director, milling and starch, ADM, noted that while bakery items like bread are typically able to tolerate the addition of ingredients such as whole and ancient grains, too much can result in problems. “Adding too many whole grains comes with the risk of structure weakness due to diluted gluten strength,” she explained. Additionally, too much replacement of gluten-containing wheat with gluten-free grains can impact a product’s ability to rise. Adjustments in moisture content and mixing time can mitigate that a bit, as can the addition of other ingredients, such as psyllium, a dietary fiber that can provide structure. Labine also pointed out certain whole grains can impart a bitter taste; since flavor is still the top driver of food and beverage purchases, avoiding that off-flavor is paramount.

In beverages, other challenges can arise. Don Trouba, senior director go-to-market at The Annex by Ardent Mills, noted grain-based beverages can become gritty if the grains are not milled finely enough. To ensure the smooth texture consumers expect from a dairy-like beverage, Ardent Mills utilizes a proprietary grinding system to produce a super fine particle size, “which will lessen gritty mouthfeel in beverage applications,” Trouba said.

And, of course, no matter how innovative or tasty a product is, consumers will naturally be hesitant to try novel ingredients or formats they haven’t heard of or seen before. On this front, formulators have several solutions at their disposal. Labine suggested pairing unfamiliar ingredients with familiar ones. “Consumers are often more willing to try something new and unfamiliar when recognizable whole grains are also present in the application,” she said. Additionally, focusing on other attributes can entice consumers to branch out and try new products. Brands would do well to tout the health benefits, such as prebiotic properties or protein content, of their novel products and ingredients to get consumers’ attention.

Sustainability top of mind

Consumers are also more willing than ever to try—and even pay more for—products that are sustainably and ethically sourced. Recent surveys from Informa Markets’ NEXT Data & Insights team showed 58% of consumers are willing to pay more for products that demonstrate environmentally responsible practices, and 60% would pay more for products that demonstrate socially responsible practices. The survey also showed 68% of consumers would pay more for high-quality ingredients; 65% said they value who grew their food and how it was made. That’s good news for grains like Kernza—the brand name (from the Lands Institute) for Thinopyrum intermedium, or intermnediate wheatgrass—hailed as “an ecologist’s dream” for its ability to serve as a rotation crop due to its ability to sequester carbon from the atmosphere and retain it in soil, as well as prevent soil erosion.

“Cascadian Farm [owned by General Mills] consumers are sustainability-minded and want to feel a connection to their food choices,” noted Mollie Wulff, spokesperson for General Mills. “Kernza fits that well because of its potential to capture more carbon from the atmosphere and store it in its 8- to 10-foot long roots.”

Sparked by the gluten-free movement and boosted by the growing trend of clean eating and sustainability-minded thinking, ancient grains are finding themselves back in the limelight. Ingredients like quinoa, chia, brown rice and others are finding new homes in products from bakery items to nondairy milks to baby foods. Health-forward attributes—fewer carbs, more protein, prebiotic properties and more—combined with increasingly sustainable and traceable supply chains, put ancient grains at the intersection of many of today’s most popular industry trends. So long as manufacturers and CPG brands continue to formulate innovative products that taste great, ancient grains are here to stay.

Even before the world first heard of COVID-19 and a global pandemic had consumers rethinking their own health and wellness like never before, the trend toward clean eating was well underway. From bakery items like breads and pastries to once-avoided ingredients like fats and oils, the clean label trend can be seen across the food and beverage industry, and appears here to stay—especially in light of a recent study commissioned by Ingredient Communications and conducted by SurveyGoo.

On September 22, Ingredient Communications announced the results of its survey of 1,000 adults in the UK and U.S., conducted during September 2020, regarding the ingredients in the foods and beverages they purchase. The results highlighted the importance of simple, short and recognizable ingredient lists—the hallmarks of the current clean label trend.

Of those surveyed, 50% said they are more likely to buy a product if they recognize all of the ingredients listed on the label; however, more than 80% said that is not always possible.

A consumer’s ability to recognize all of a product’s ingredients directly affects a brand’s bottom line; 36% of respondents said they are less likely to buy a product made with an ingredient they don’t recognize. On the other hand, nearly half (44%) said they are happy to pay a higher price for a product with recognizable ingredients. This is especially notable during a time of widespread economic uncertainty in the face of the COVID-19 pandemic.

Finally, results also showed brands would be wise to include additional messaging about ingredients beyond the back-of-pack list. The front-of-label claim “made with natural ingredients” is considered “very or quite appealing” by 81% of respondents; the claim “free from artificial ingredients” saw similar impact, with 78% saying it appeals to them.

“Ingredients companies have taken big steps forward to optimize their portfolios to include clean label ingredients that can be declared on-pack in clear language that most consumers will recognize,” said Richard Clark, managing director, Ingredient Communications. “Manufacturers of finished products should consider formulating – or reformulating – their products to include these ingredients, or they risk being left behind.”

Plant-based eating is here to stay. U.S. retail sales of plant-based foods increased 11% in 2019, bringing its total market value to $4.5 billion, according to the Plant Based Foods Association. And it is not only vegans and vegetarians driving this eating evolution. Nestlé reported 87% of Americans are now incorporating plant-based proteins into their diets and nearly two-thirds are doing so one or more times weekly.

Beverage manufacturers are responding to this demand by rolling out new plant-based beverages using grain-based ingredients to achieve optimal taste, texture and nutrition. In the coming years, expect to see more dairy-free milk alternatives using oats, brown rice and quinoa. As consumer interest in digestive health continues to rise, look for more prebiotic fiber options extracted from grains driving category growth as well. 

Plant-based beverage sales have been on the upswing for the last decade, fueled predominately by consumer desire for dairy-free milk alternatives. The International Food Information Council (IFIC) 2020 Food & Health Survey found almost one-fourth (24%) of consumers are eating more plant-based dairy. Dairy-free milk alternatives beyond soy and nut-based beverages are especially taking off as health-conscious consumers look for novel options.

Oat milk—which is made by soaking oats in water—first gained popularity in trendy coffee shops such as Chicago-based Intelligentsia and San Francisco-based Philz Coffee. While once a niche milk alternative, it has since become ubiquitous, with Starbucks and Dunkin’ both adding it to their menus in 2020.

Oat milk’s popularity can largely be attributed to its rich, neutral taste and smooth texture that froths like cow’s milk. Its taste and flavor profile makes it an excellent alternative for dairy milk, especially in coffee drinks. Oat milk is also environmentally friendly, as it requires less water than other alternatives to produce—one-eighth the amount of almond milk—and produces relatively few greenhouse gases. BBC News’ environmental impact calculator ranks it as the most sustainable milk option alongside soy milk.

Plant-based foods sales are projected to continue to grow at a compound annual growth rate (CAGR) of 11.9% from 2020 to 2027. Given the wide diversity of grains available and new advances in production technology, expect to see more of these grain-based ingredients driving this plant-based market growth.

To read this article in its entirety, check out the Grains redefined: Formulating for healthy products – digital magazine.

Loula Merkel, vice president of business development at Comet Bio, has over 15 years of experience in agribusiness and energy industries. Previously the director of project development at Coskata, she was responsible for the development and financing of commercial projects. Merkel also spent eight years at McKinsey & Co., serving clients at the intersection of chemicals and agribusiness industries

Blue Bell Creameries L.P. was recently ordered to pay more than $17 million in criminal penalties for shipping contaminated products linked to an outbreak of listeriosis in 2015.

U.S. District Judge Robert Pitman imposed the largest-ever criminal penalty following a conviction in a food safety case, according to a Sept. 17 news release from the U.S. Department of Justice (DOJ).

“The health of American consumers and the safety of our food are too important to be thwarted by the criminal acts of any individual or company,” Judy McMeekin, FDA’s associate commissioner for Regulatory Affairs, said in the release. “Americans expect and deserve the highest standards of food safety and integrity. We will continue to pursue and bring to justice those who put the public health at risk by distributing contaminated foods in the U.S. marketplace.”

Blue Bell previously agreed to plead guilty to misdemeanor counts and pay a criminal fine and forfeiture amount totaling $17.25 million. Texas-based Blue Bell further agreed to pay $2.1 million to resolve civil allegations under the False Claims Act related to ice cream products produced under insanitary conditions and sold to federal facilities, DOJ disclosed in a May 1 news release.

Blue Bell distributed ice cream products made under unsanitary conditions and contaminated with Listeria monocytogenes, in violation of the Federal Food, Drug and Cosmetic Act, according to the plea agreement and criminal information filed against Blue Bell in the U.S. District Court for the Western District of Texas. The company agreed to plead guilty to two misdemeanor counts of distributing adulterated ice cream products.

DOJ described Listeria monocytogenes as “a pathogen that can lead to serious illness or death in vulnerable populations such as pregnant women, newborns, the elderly and those with compromised immune systems.”

Blue Bell previously observed its agreement with the government related to events that transpired five years ago, before the company shut down and revamped its production facilities and procedures.

“Last week’s court action closes a difficult chapter in Blue Bell’s history,” the company said Tuesday in an emailed statement. “We are a new, different and better Blue Bell. We learned hard lessons and turned them into determination to make the safest, most delicious ice cream available, with upgraded production facilities, training, safety procedures, and environmental and product testing programs.”

Added the company: “Food safety is our highest priority, and we know we must continue to be vigilant every day.”

The U.S. government concurred Blue Bell has improved its food safety operations. “Since re-opening its facilities in late 2015, Blue Bell has taken significant steps to enhance sanitation processes and enact a program to test products for Listeria prior to shipment,” DOJ said in its recent news release.