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Articles from 2021 In February


Vilsack sworn in as USDA Secretary, takes reigns for 2nd time

Article-Vilsack sworn in as USDA Secretary, takes reigns for 2nd time

USDA logo

Vilsack, 70, was nominated to lead the agency on Dec. 19, 2020, by then-President Elect Joe Biden. Vilsack succeeds former USDA Secretary Sonny Purdue who led the agency during the Trump Administration.

With his appointment, Vilsack takes the reigns for second time in his career. He was the longest-serving member of President Obama’s original Cabinet. He now oversees USDA’s 29 agencies, nearly 100,000 employees and a budget exceeding $146 billion.

Vilsack’s policies will be focused on four key area: climate change, food security and nutrition, market fairness and racial inequality. “If confirmed, I will take bold action and work with this committee to address discrimination in all its forms across USDA agencies, offices and programs. I will ensure all programming is equitable and work to root out generations of systemic racism that disproportionately affects Black, Indigenous and people of color. I will build the most diverse team in the Department’s history, one that looks like America, and will extend that commitment across all USDA agencies and offices,” Vilsack said during his confirmation hearings.

Commenting on Vilsack’s approval by the Senate, House Agriculture Committee Chairman David Scott said: “I applaud the Senate for approving Secretary Tom Vilsack to head the Department of Agriculture for a second time. I am excited about working with him and his staff to ensure that USDA works to support our farmers in an equitable way. I look forward to Secretary Vilsack joining us at our House Agriculture Committee hearings over the course of his tenure to provide critical updates on the important work of USDA.”

Between cabinet appointments, Vilsack served as president and CEO of the U.S. Dairy Export Council (USDEC) from 2017 until February 2021. During his tenure at USDEC, he provided strategic leadership and oversight of USDEC’s global promotional and research activities, regulatory affairs and trade policy initiatives. In addition to his post at USDEC, he also served as a strategic adviser to Colorado State University’s food and water initiatives.

Prior to his appointment, he served two terms as the Governor of Iowa, served in the Iowa State Senate and as the mayor of Mt. Pleasant, Iowa. He received his bachelor’s degree from Hamilton College and his law degree from Albany Law School in New York.

Frozen food ingredients aid formulators, appeal to consumers

Article-Frozen food ingredients aid formulators, appeal to consumers

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Convenience never goes of style. Fortunately, frozen foods have come a long way since the days of divided trays with heavily sauced slices of mystery meat and a pile of peas. Whether spending more time at home or just looking for quick, healthful meal solutions, consumers still appreciate the swift preparation of a meal for the family to eat together.

However, keeping pace with increasingly sophisticated consumer tastes—and sky-high expectations—can be particularly challenging for meals in the frozen aisle. These products benefit when they draw from ingredients that can do double-duty, providing any combination of flavor, nutritional value, color, familiar appearance, texture, mouthfeel, sensory experience or technical benefits.

According to John Stephanian, vice president, Global Culinary & Innovation, ADM, pulse ingredients work well in texturized protein solutions. “For example, we recently introduced our new Arcon T Textured Pea Protein 513 and 514, which feature a blend of pea protein and chickpea or pea protein and navy bean,” he said. “These blends bring protein concentration and texturization capabilities to developers looking to innovate frozen foods with a turnkey meat-alternative solution.” Besides being plant-forward, pulse ingredients are perceived by consumers as a source of protein and added fiber. Plus, they signal freshness in frozen products. Beyond adding nutrition, texture and color, they also meet shoppers’ evolving needs with on-trend product positioning like vegan, non-GMO, gluten-free, allergen-free or organic.

As consumers continue to try different cuisines, beans and pulses fit in nicely as global ingredients that can be used in many ways. “They take on flavor profiles well and are versatile in texture, which makes them easy to use in formulations with ethnic spices to produce exciting and adventurous meals,” he continued.

Stephanian noted in many frozen meals, beans and pulses maintain their texture. “Having ingredients that provide structure and texture is key in these meals. They also absorb flavor well, so they are great additions to many different applications. For example, frozen lentil soup maintains its flavor profile and texture for an enjoyable eating experience. Individual black beans also keep their shape and provide great texture and whole, recognizable ingredients in a frozen fajita bowl,” he said.

The demand for beans and pulses in frozen RTE meals is expected to grow because not only are they nutritious and compatible with different flavor combinations, but they also add visually interesting details to the product, making it ultimately more desirable and memorable.

Bases, stocks, pastes, marinades and sauces

In creating a frozen meal that consumers crave, it’s important to build a full sensory experience that Stephanian describes as having authentic flavors and cooking cues, such as spicy, smoky, roasted and baked. Food bases and concentrates can deliver distinct notes, including meat and poultry flavors, as well as dairy, vegetarian, seafood and brown butter.

To maximize the flavor—not to mention meeting consumer desire for clean label, transparent ingredients—it’s helpful if the base is genuine. “When creating a frozen seafood meal that requires a lobster flavor, we start with actual lobster and butter and cook them down to create a flavorful concentrate,” Stephanian said. This process allows us to replicate a homemade style of cooking by using real ingredients in base formats, resulting in frozen RTE meals that taste exceptional.”

Stocks, pastes, marinades, sauces, demi-glaces and gravies all work well to improve the flavor of frozen RTE meals. Sauces and gravies can also build layers of flavor, aroma and mouthfeel into frozen RTE meals, particularly in applications with bold flavor profiles like curry. “Moreover, stocks and bone broths add flavor and much-needed hydration to these meals. We approach formulating stocks and broths in a similar way to bases. We start with the actual ingredients and create a concentrate to incorporate in frozen RTE meals,” Stephanian said.

The above summary was taken from a full deep dive into the subject. To read the full piece, visit the Frozen ready-to-eat foods – 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.

Permissible indulgence: Strategies for better-for-you confectionery – digital magazine

White-paper-Permissible indulgence: Strategies for better-for-you confectionery – digital magazine

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Takeaways for Your Business:

  • Per Allied Market Research, the global confectionery market was worth $210.3 billion in 2019.
  • Along with better-for-you, consumers are seeking confections made sustainably and fairly.
  • COVID-19 has had a profound, though yet to be fully understood, effect on the confection industry.

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COVID-19 fueling rise of plant-based diets

Article-COVID-19 fueling rise of plant-based diets

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Even before the COVID-19 pandemic turned the world upside down one year ago, vegetarian, vegan and flexitarian diets were on the rise. Concerns about personal health, planetary sustainability and the ethical treatment of animals fueled this increased attention to plant-based diets, and now it appears the coronavirus pandemic has only helped accelerate this trend.

Nearly 1 in 5 (18%) people in the U.K., according to a recent survey of more than 1,000 U.K. adults commissioned by Proagrica, have eaten more vegan and/or vegetarian food since the beginning of the pandemic in March 2020. The study noted a similar percentage indicated they will remain fully vegetarian or vegan even after the effects of the pandemic have passed.

Of note, in addition to the percentage of respondents indicating a desire to avoid animal products, are the reasons why. Traditional responses, such as animal welfare (26%) and environmental impact (22%) were still common, but personal health has taken center stage. Nearly 1 in 4 (23%) of those surveyed cited personal health as the reason for switching diets, and the top reason given was a concern over the hygienic quality of meat products—no doubt impacted by heavily publicized COVID-driven issues in the meat supply chain, especially during the pandemic’s early stages.

What’s more, even those respondents unwilling or not yet ready to fully commit to a plant-based diet are increasingly turning to a more flexitarian approach, avoiding animal products in many, though not all, circumstances. The Proagrica survey indicated 29% of respondents will consider reducing their meat consumption or going vegetarian/vegan if the pandemic continues much longer. This includes becoming more adventurous if/when they return to eating at restaurants, with just under 40% of respondents indicating they would be likely to order a plant-based alternative to meat at a restaurant or fast-food establishment.

“Changing dietary choices suggest the trend toward plant-based foods goes way beyond ‘Veganuary,’” said Graeme McCracken, managing director, Proagrica. “It does seem the pandemic is hastening this behavior though; this presents fresh opportunities and there's a real chance for plant-based to make in-roads this year.”

The survey also indicated some other changes in eating and shopping patterns. An increasing number of people are now buying the majority of their groceries online, and more than 1 in 5 (21%) said they now shop more often, and spend less money during each trip, in an attempt to avoid wasting food. More than 1 in 10 (12%) now also indicated they buy frozen food—or freeze their own food—more often for the same reason.  

“How we shop has changed considerably over the past 12 months, and while some are looking to minimize contact outside of their bubble, the primary driver is to save money,” McCracken said. “Many people have had to rationalize their expenditure since the pandemic began and around [one-fifth] are cutting meat for this this reason.”

Business briefs – Danone – Brenntag – Kerry – Nestle – GPC

Article-Business briefs – Danone – Brenntag – Kerry – Nestle – GPC

Business headlines

Danone acquires Follow Your Heart

Danone announced it is acquiring Earth Island, maker of Follow Your Heart brands and a leader in plant-based foods. With a proven track record of growth and innovation, and a long-term commitment to nutrition, sustainability and environmental stewardship, Earth Island represents a strong cultural fit with Danone and provides Danone with a unique opportunity to strengthen its plant-based business.

Founded in 1988 to meet the growing demand for Vegenaise at the Follow Your Heart Market & Café, Earth Island is a pioneer in the U.S. plant-based marketplace with a leading dairy-free cheese brand—offering shredded and sliced plant-based cheese, grated and shredded plant-based parmesan and cream cheese alternatives—and the iconic egg-free mayonnaise brand, Vegenaise. The company also produces plant-based sour cream, salad dressings and VeganEgg within its Follow Your Heart portfolio. As part of the Danone family, Earth Island will be able to accelerate the growth of the Follow Your Heart brand nationally and internationally alongside some of Danone’s plant-based brands including Alpro, Silk and So Delicious Dairy Free.

The deal will help Danone meet its goal of increasing plant-based sales worldwide from more than €2 billion in 2020 to €5 billion by 2025.

Brenntag, Monaghan Group enter exclusive distribution agreement

The Brenntag Food & Nutrition business unit in North America, part of the Brenntag Group, has signed an exclusive distribution agreement with Monaghan Group in the U.S. and Canada. The agreement covers ingredients manufactured under the innovation arm of Monaghan Group, MBio, which has developed clean label ingredients derived from mushrooms. The ingredient line includes vitamin D mushroom powder, vitamin B12 mushroom powder and whole mushroom powder for use in food, beverage, nutraceutical and supplement industries.

“We are pleased to announce our new relationship with MBio as their exclusive distributor in the United States and Canada. MBio’s innovative products are a great addition to our product portfolio and allow us to provide differentiated value to our customers,” said Larry Davis, President of Nutrition Americas.

Kerry Group to acquire Biosearch Life

Kerry Group plc announced plans to acquire the Spanish company Biosearch Life, a leader in the nutraceutical and functional food sectors. The company has an extensive range of probiotics and is a recognized leader in premium probiotics obtained from human breast milk (Hereditum brand), scientifically backed innovative botanical extracts (Exxentia) and natural omega-3 (Eupoly-3 brand).

Nestlé sells Nestlé Waters North America brands for $4.3 billion

Nestlé S.A. is selling its regional spring water brands, purified water business and beverage delivery service in the U.S. and Canada to One Rock Capital Partners in partnership with Metropoulos & Co. for US$4.3 billion.

The sale includes the Poland Spring, Deer Park, Ozarka, Ice Mountain, Zephyrhills, Arrowhead, Pure Life and Splash brands in the U.S. and Canada, as well as the U.S. direct-to-consumer and office beverage delivery service ReadyRefresh. The company’s international premium brands including Perrier, S.Pellegrino and Acqua Panna are not a part of the deal.

Commenting on the transaction, Mark Schneider, Nestlé CEO, said: “We continue to transform our global waters business to best position it for long-term profitable growth. This sale enables us to create a more focused business around our international premium brands, local natural mineral waters and high-quality healthy hydration products. We will also boost our innovation and business development efforts to capture emerging consumer trends, such as functional water.”

Grain Processing Corp. completes distillery expansion

Grain Processing Corp. (GPC), a member of the Kent Corp. family of companies, announced on Feb. 22 that it has completed the accelerated expansion of its distillery in Iowa distillery and is now producing significantly more high-quality alcohol. The original start-up date was July 2021.

Since the start of the COVID-19 pandemic, GPC has supported the manufacture of millions of gallons of ethyl alcohol to support the production of essential products in the fight against the virus, including hand sanitizers, disinfectants, cleaners and surfactants, mouthwash, cough and cold medicines, and in the manufacture of active pharma ingredients, vaccine components and COVID-19 testing reagents.

Originally announced in May 2015, the multiyear, multimillion-dollar capital investment and expansion took thousands of engineering hours and leveraged the expertise of GPC’s workforce to increase the amount of value-added ingredients made from the kernel of corn.

“To produce alcohol to 1 ppm or less total impurities, there are no shortcuts,” said Pat Homoelle, president of GPC. “Our world-class quality sets us apart and is recognized by our trusted partners who depend upon us to consistently craft gallon after gallon for a range of products from beverage alcohol to pharmaceutical-grade applications.”

Plant-based eating is now mainstream – infographic

White-paper-Plant-based eating is now mainstream – infographic

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1 in 5 U.S. consumers consider themselves a flexitarian–someone who places importance on plant-based foods in their diet, driving unprecedented growth in the demand for high-performing plant-based ingredients solutions.

Download the latest infographic to view data about changing consumer values and learn about how the demand for plant-based foods meets their needs. New ingredient options enable brands to create better tasting, quality products, across multiple categories, to serve this rapidly growing market.

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Choline for toddler and children’s nutrition

Article-Choline for toddler and children’s nutrition

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Good nutrition is essential to health and well-being, and one of the most critical times to focus on nutrition is early in life. Ensuring adequate intake of key nutrients during these fundamental stages is critical—think of the important role calcium and vitamin D play in building strong bones. The scientific community supports the daily intake of these nutrients in guidance literature such as the Institute of Medicine’s (IOM) “Dietary Reference Intakes for Calcium and Vitamin D” and “Scientific Report of the 2015 Dietary Guidelines Advisory Committee” from USDA’s Department of Health and Human Services (HHS).

Minerals like zinc, iron and selenium work hand in hand with antioxidants like vitamins A, C and E to help build and maintain a strong immune system, noted the “Immunity in Brief” section of the Micronutrient Information Center on Oregon State University’s Linus Pauling Institute website.

Folic acid, DHA and iodine all support the development of the brain, eyes and nervous system during pregnancy1 and continue to be particularly important during the first 1,000 days of life.2 Many of these nutrients are easily recognized, but an essential nutrient critical to good health from the moment of conception up through the later years of life may not be as readily known.

Choline was first recognized as an essential nutrient by the Institute of Medicine (IOM) in 1998 because of the key role it plays in fat metabolism in the liver. Little was known about choline status in humans until 2008, when USDA—in conjunction with researchers at the University of North Carolina—released a database of the choline content of common foods. Not long after, researchers examining dietary intake data from the CDC’s National Health and Nutrition Examination Survey (NHANES) found about 90% of Americans were not getting enough choline in their diet. These low dietary intakes persist, presenting an important and unique opportunity for manufacturers to fill this nutrient gap via fortified foods and supplements.3

As more researchers examined choline, the scientific community began to realize the complex and critical role it plays in human health. As phosphatidylcholine (PC), choline is part of every cell membrane, so it is needed in vast quantities to support the explosive growth that comes early in life. As a building block of sphingomyelin, choline helps form the myelin sheath that insulates the axons in the brain for improved signaling. As acetylcholine, a primary neurotransmitter, choline helps activate synapses which transmit messages from the brain through the nervous system to the neuromuscular junction. More recently, researchers at Cornell University examined the role of choline during pregnancy and discovered babies born to moms who received supplemental choline had improved infant processing speeds.4 Babies continue to receive choline from their moms via breastfeeding, and these critical roles in neurodevelopment support inclusion of the nutrient as a required component of infant formula.

Choline remains important throughout the early stages of life as the brain continues to develop, a process extending into the early-20s. By providing key building blocks for the ongoing brain expansion, choline supports young minds as children grow and learn. The impact of maternal choline intake throughout a child’s life was reaffirmed in a study published in the American Journal of Epidemiology.5 Researchers analyzed choline intakes of mothers participating in the Project Viva study and concluded that higher gestational choline intake was associated with improved child visual memory at age 7. And a study published in The FASEB Journal examined choline levels among Swedish teens and discovered plasma choline concentrations were significantly and positively associated with academic achievement independent of other socioeconomic factors.6

The important role of choline in everyday brain function was also the focus of a 2015 study, where researchers found young adult participants who took choline prior to performing an “aim and click” task on a computer had significantly improved targeting and accuracy measures vs. the placebo group.7 This body of research points to choline’s important role in building the brain early in life and then helping to maintain and preserve neurotransmission and normal brain function later in life.

Manufacturers have taken notice and are launching innovative new food products, particularly in the dairy sector. Both Horizon Organic milk and Clover Sonoma dairy recently launched new fortified milks with added choline, while newcomer Brainiac Kids created a line of yogurt and applesauce products for young children with the “BrainPack”—a combination of choline and omega-3 docosahexaenoic acid (DHA) and eicosapentaenoic acid (EPA) to help support brain health.8

The American Medical Association (AMA), American Academy of Pediatrics (AAP) and, most recently, the Scientific Report of the 2020 Dietary Guidelines Advisory Committee have all issued policy statements that support the critical role of choline as a brain-building nutrient. Given that the leading sources of choline—liver, egg yolks and fish—may not be featured, let alone prominently, in the diets of many young children, manufacturers have a unique opportunity to fortify products with choline to help build a brighter future for children.

To read related content, download the Food & Beverage Insider Children and toddler nutrition: Winning strategies to feed the future – digital magazine. 

Tom Druke is the marketing director for human minerals and nutrients at Balchem. He currently leads the development and execution of market analytics and insights, brand positioning, product innovation and advertising and promotion for the Albion chelated minerals and VitaCholine choline salts product lines.

References

1 Morse NL. “Benefits of docosahexaenoic acid, folic acid, vitamin D and iodine on foetal and infant brain development and function following maternal supplementation during pregnancy and lactation.” Nutrients. 2012;4(7):799-840.

2 Beluska-Turkan K et al. “Nutritional Gaps and Supplementation in the First 1000 Days.” Nutrients. 2019;11(12):2891.

3 Wallace TC, Fulgoni VL. “Usual choline intakes are associated with egg and protein food consumption in the United States.” Nutrients. 2017;9:839.

4 Caudill MA et al. “Maternal choline supplementation during the third trimester of pregnancy improves infant information processing speed: a randomized, double-blind, controlled feeding study.” FASEB J. 2018;32(4):2172-2180.

5 Boeke CE et al. “Choline Intake During Pregnancy and Child Cognition at Age 7 Years.” Am J Epidemiol. 2013;177(12):1338-1347.

6 Nilsson TK et al. “Plasma 1-carbon metabolites and academic achievement in 15-yr-old adolescents.” FASEB J. 2016;30(4):1683-1688.

7 Naber M, Hommel B, Colzato LS. “Improved human visuomotor performance and pupil constriction after choline supplementation in a placebo-controlled double-blind study.” Sci Rep. 2015;5:13188.

8 Swanson D, Block R, Mousa SA. “Omega-3 Fatty Acids EPA and DHA: Health Benefits Throughout Life.” Advances in Nutrition. 2012;3(1):1-7.

Informa Markets SupplySide West & Food ingredients North America announces call for speaker applications

Article-Informa Markets SupplySide West & Food ingredients North America announces call for speaker applications

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Informa Markets’ SupplySide West & Food ingredients North America has announced speaker applications are now being accepted for the fall show, October 25-28 at Mandalay Bay in Las Vegas, as well as complementary digital offerings hosted on SupplySide Network 365. Submissions for the hybrid conference event are due by the early deadline of February 26 and no later than March 12. Entries should provide valuable content on current trends, market opportunities, research, science, regulatory challenges and more.

SupplySide West & Food ingredients North America brings together ingredient buyers and suppliers from the dietary supplement, food and beverage, personal care and sports nutrition industries. The SupplySide Education Program, in person and online, serves as a resource to consumer product manufacturers who create, formulate, and market finished products in the health and nutrition industry.

The SupplySide West Content Team has provided a list of suggested topics online including Immune Health, Hemp/CBD, Plant-Based Nutrition, Sports Nutrition and Supply Chain Security among many others. Industry members are encouraged to submit another topic of their choice provided that it is educational and non-promotional in nature. Speakers may submit session ideas for in-person, online only, small group breakout sessions or panel discussions.

“We’re excited to be exploring the content partnerships for our 2021 SupplySide West show as well as our complementary digital offerings,” said Sandy Almendarez, content director, Informa Markets. “We’re looking for speakers and topics that address the current, real business needs of dietary supplement, and heathy food and beverage businesses as they create products that serve a wide audience base.”

To submit a proposal visit: supplysidewest.com. Applicants may visit the FAQ page for answers to commonly asked questions. Each interested party must submit an online submission during the call-for-speakers entry period, after which all proposals will be evaluated by the SupplySide content team. Sessions and speakers are selected based on several criteria including industry relevance, speaker qualifications, originality and audience demand.

For more information about SupplySide West 2021, visit: supplysidewest.com. For more information about SupplySide Network 365, visit: supplyside365.com. Updates and ongoing conversations can also be found on LinkedIn or Twitter.

Label-friendly formulation drives growth of frozen foods

Article-Label-friendly formulation drives growth of frozen foods

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Everything old is new again. This phrase comes to mind when discussing frozen ready-to-eat (RTE) meals. Frozen dinners were once the rage, some hearty enough to feed a strong appetite. Others were designed for dieters and promoted satisfying yet low-calorie servings. Hungry-Man dinners and Lean Cuisine still have a following. Other mainstay brands such as Stouffer’s, Healthy Choice and Marie Callender’s are holding their own. But the category is evolving to encompass a wider range of dietary preferences, proving the frozen meal concept is far from dated.

Life Cuisine, a new sister brand to Lean Cuisine from Nestlé, seeks to tick all the boxes that might appeal to consumers by categorizing products into low-carb lifestyle, meatless lifestyle, high-protein lifestyle or gluten-free lifestyle. For the latter, the brand offers a pepperoni pizza made with a cauliflower crust.

Sweet Earth Enlighted Foods offers main dishes fueled by plant-based meats. The brand’s General Tso’s Tofu is certified organic with 11 g of protein per serving. Evol Hawaiian Style Grilled Chicken claims nothing artificial, chicken raised without antibiotics and no preservatives. It has a relatively low sodium count too, at 580 mg per serving. Across the board, tasty new products are appearing with claims their predecessors couldn’t have imagined.

Aside from convenience and variety, RTE frozen meals have the potential to provide a balanced meal with the inclusion of protein, fiber, and fruits or vegetables.

One of the biggest shifts in this category has been the move toward label-friendly formulation. “While legacy products may maintain their value-focused positioning, the newer entries to the marketplace are placing a heightened emphasis on clean labels,” said Alissa Weidman, commercialization strategy manager, Cargill. “Gone are the old ‘TV dinner’ days, as consumers increasingly reach for frozen meals they view as healthier alternatives to shelf-stable ready meals. The freezer aisle is now filled with options catering to current consumer trends, as organic, gluten-free, vegetarian, vegan and plant-based frozen meals prevail.”

As consumers embrace these premium options, “brands have responded with a focus on chef-inspired meals that strive to emulate restaurant quality,” she continued. “Bolder flavors and international cuisines reflect trends happening outside the freezer aisle, rewarding consumers with convenient, gourmet-style offerings.”

Peggy Castaldi, director of marketing, SupHerb Farms, has followed the strong growth of organic. According to the U.S. Organic Industry Survey 2020 from the Organic Trade Association (OTA), in the decade spanning 2010 to 2019, organic sales grew from $24.9 billion to $55.1 billion—with organic food sales accounting for $50.1 billion of the total sales.

Castaldi referenced research from SPINS to illustrate the tidal change in center-of-the-plate frozen foods. Top trending lifestyle diets across frozen include plant-based and vegan, both up 28% compared to a year ago for the 12 weeks ending Sept. 30, 2020. During the same period, plant-based meat alternatives were top three in growth among all frozen products, as well as top three in growth in natural products. Pea protein led plant-based proteins in terms of growth, with meat alternatives-ground up 67%; meat alternatives-burger up 131%; and meat alternatives-nuggets, strips, cutlets up 40%.

Whether faux meat or the real deal, the demand for frozen foods intensified in 2020 as increasing numbers of consumers ate more meals at home.

This article was excerpted from a deep dive into the topic. To read the full piece, visit the Frozen ready-to-eat foods – 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.

Global food commodity prices hit 6-year high

Article-Global food commodity prices hit 6-year high

Dairy and cereals drive up FAO Food Price Index

The FAO Food Price Index, which tracks monthly changes in the international prices of commonly traded food commodities, averaged 113.3 points in January, 4.3% higher than in December 2020 and reaching its highest level since July 2014.

The Cereal Price Index averaged 124.2 points in January, marking a sharp increase of 8.3 points (7.1%) from December and the seventh consecutive monthly rise. International maize prices surged 11.2% in January, up 42.3% above their January 2020 level, reflecting increasingly tight global supply with lower-than-earlier-expected production and stock estimates in the U.S. and substantial purchases by China. Wheat prices rose 6.8%, driven by strong global demand and expectations of reduced sales by the Russian Federation when its wheat export duty doubles in March 2021. Robust demand from Asian and African buyers underpinned strong rice prices.

The Vegetable Oil Price Index averaged 138.8 points in January, up 7.7 points (or 5.8%) from December and marking the highest level since May 2012. The index’ eighth consecutive monthly increase mainly reflected higher palm, soy and sunflower seed oil prices. Factor included lower-than-expected palm oil production in Indonesia and Malaysia due to excessive rainfall and ongoing shortages in the migrant labor force, and prolonged strikes in Argentina reducing export availability for soy oil.

The Dairy Price Index averaged 111.0 points in January, up 1.7 points (1.6%) from December 2020, rising for the eighth consecutive month and placing the index at 7.1 points (6.9%) above its value in the corresponding month last year. In January, butter and whole milk powder (WMP) price quotations increased, underpinned by China’s high purchases in the wake of the country’s upcoming New Year holiday festivities amid seasonally lower exportable supplies in New Zealand. Price quotations for skim milk powder (SMP) too rose, pressured by high import demand for spot supplies and lagging production activities in Western Europe. By contrast, cheese prices fell slightly from the highs registered in December 2020 due to limited internal sales in Europe, coupled with a stock build-up in the U.S.

The Sugar Price Index averaged 94.2 points in January, up 7 points (8.1%) from December 2020 and reaching the highest level since May 2017. Robust global import demand spurred concerns about lower availabilities due to worsening crop prospects in the European Union, the Russian Federation and Thailand, as well as drier-than-normal weather conditions in South America. Rising crude oil prices and a stronger Brazilian Real also provided support to international sugar prices.

The Meat Price Index averaged 96 points in January, up 0.9 points (1%) from December 2020, marking the fourth consecutive monthly increase, but still down 7.6 points (7.3%) from the corresponding month last year. Increases were led by brisk global imports of poultry meat, especially from Brazil, amid avian influenza outbreaks that have constrained output and exports from several European countries.