On Jan. 19, the leaders of two U.S. government agencies provided starkly different perspectives about a memorandum of understanding (MOU) regarding regulation of agricultural animal biotechnology.

The MOU “clears a path to bring our regulatory framework into the 21st century, putting American producers on a level playing field with their competitors around the world,” then-outgoing Agriculture Secretary Sonny Perdue said in a statement. “In the past, regulations stifled innovation, causing American businesses to play catch-up and cede market share.”

The MOU was finalized with FDA, outlining responsibilities regarding the regulation of certain animals developed using genetic engineering intended for agricultural purposes including human food, according to USDA.

FDA opposition

The document clearly didn’t sit well with the then-top official at FDA, Dr. Stephen Hahn, who tweeted on Jan. 19 that while the U.S. Department of Health and Human Services (HHS)—of which FDA is a part—signed the MOU with USDA, his agency did not support it.

“FDA has no intention of abdicating our public health mandate,” Hahn proclaimed on Twitter a day before he departed the agency, coinciding with the inauguration of President Joe Biden. “We’ll continue to stay focused on executing our vital public health mission entrusted to us by the American people.”

The MOU was signed by Perdue and Brett Giroir, M.D., assistant secretary for Health and head of the Public Health Service. Due to the change in administration, the top officials mentioned in this story—Hahn, Giroir and Perdue—have moved on from their posts in the U.S. government.

But a turf war is likely to persist between USDA and FDA over which agency is better suited to regulate genetically engineered animals.

FDA career lawyers had objected to the MOU, Politico reported in a Jan. 19 article, citing “people with knowledge of the discussions.” And Hahn in recent days refused to sign off on the MOU, a senior HHS official told Politico.

“This is a last-minute Hail Mary,” the story quoted the senior HHS official. “It is a total ceding of FDA authority to the USDA.”

Shifting authority to USDA

Largely at stake: the regulation of agricultural animals like cattle and swine subject to gene editing—otherwise known as genome editing. These technologies function “like scissors, cutting the DNA at a specific spot,” which enable scientists to add, remove or replace DNA where it was cut, according to the National Human Genome Research Institute.

The recently signed MOU paves the way for USDA to use its authorities under two laws—the Federal Meat Inspection Act and Poultry Products Inspection Act—to create a new program through rulemaking to oversee pre-market human food safety evaluations and monitoring for agricultural animals using genetic engineering. Per the MOU, FDA would continue to use its authority under a separate law—the Federal Food, Drug & Cosmetic Act (FDCA)—to regulate certain things, including table and shell eggs, certain meat products and animal feed that originates from agricultural animals developed using genetic engineering.

The four-page document, as well as a previous advanced notice of proposed rulemaking (ANPR) announced by USDA in December, was interpreted as shifting much authority over regulation of certain genetically engineered animals from FDA to USDA.

But it wasn’t immediately clear how USDA under a new administration would approach the issues. The Biden administration recently imposed a freeze on certain pending regulatory actions.

Asked whether policies implemented by the new Biden administration affect either the MOU or ANPR, a spokesperson for USDA responded the ANPR “is under review.”

As of Jan. 27, the document had drawn 17 comments on the public docket (regulations.gov), including two separate submissions from a Florida resident named Dorian Atchison. “This is outrageous that GM animals and other GM products could be pushed through without independent oversight, and plenty of time for public input,” she wrote.

Urging USDA “not to approve eliminating FDA oversight,” Atchison stated, “We need as much oversight in this area as is possible.”

The ANPR was announced more than a year after then-President Trump signed an executive order on agricultural biotechnology products.

“Biotechnology can help the nation meet its food production needs, raise the productivity of the American farmer, improve crop and animal characteristics, increase the nutritional value of crop and animal products, and enhance food safety,” the 2019 executive order proclaimed. “In order to realize these potential benefits, however, the United States must employ a science-based regulatory system that evaluates products based on human health and safety and potential benefits and risks to the environment. Such a system must both foster public confidence in biotechnology and avoid undue regulatory burdens.”

Industry groups favor USDA authority

According to the National Pork Producers Council (NPPC), USDA has the expertise and legal authorities to safely regulate agricultural applications of animal genetic technology, while FDA lacks such tools and expertise.

“This is reflected in [FDA’s] continued reliance on regulation through guidance documents that fail to meet the needs of agriculture—and the failure to date to have any meaningful commercialization of agricultural animals bred using genetic technologies,” Howard ‘A.V.’ Roth, president of the NPPC, wrote in a Jan. 13 letter to USDA officials.

The National Cattlemen’s Beef Association (NCBA) also lauded USDA’s ANPR.

“This proposed action paves the way for increases in future innovation through a scientific, risk-based and predictable system of oversight at USDA,” Allison Rivera, NCBA’s executive director of government affairs, said in a statement.

Consumer advocate: Keep authority with FDA

Industry stakeholders support the ANPR because they know it will result in less regulation compared to FDA oversight of genetically engineered animals, according to Michael Hansen, Ph.D., senior staff scientist with Consumer Reports, the advocacy, media and research group.

He said he is in favor of keeping authority with FDA rather than an agency whose mission is, in part, to promote U.S. agriculture. FDA presently regulates intentional genomic alterations in animals as animal drugs.

“Even though we have serious concerns with how FDA has been regulating genetically engineered animals … you can at least say that the main mission of FDA is to protect human health,” Hansen said in an interview.

He and another professional with a separate consumer advocacy group, Jaydee Hanson of the Center for Food Safety, pointed to research involving “polled” or hornless cows to highlight potential off-target effects, or unanticipated genetic changes, resulting from the use of gene editing.

In a 2016 paper published in Nature Biotechnology, a peer-reviewed scientific journal, authors working for a biotech company known as Recombinetics discussed the use of genome editing using enzymes known as TALENs (transcription activator-like effector nucleases) to produce hornless cattle. According to their research, the production of hornless dairy cattle using the gene editing technology did not result in any off-target effects.

In 2019, however, FDA scientists with the Center for Veterinary Medicine who examined whole genome sequencing data from the gene-edited calves discovered unintended integration of plasmid. Their findings were also published in Nature Biotechnology.

A small, circular piece of DNA, plasmid replicates independently of chromosomal DNA and is mainly found in bacteria, according to Biology Dictionary.

“Theoretically, it’s possible that after eating the animal, some of that genetic material can actually move into bacteria that are in the [human] gut and could transform it,” Hansen said. “That doesn’t mean that all these animals are going to be hazardous or anything. The problem is all these things need to be looked at carefully before they’re allowed on the market.”

‘It’s a ridiculous concept’

Tad Sonstegard, Ph.D., is chief executive and scientific officer of Acceligen, the agricultural division of Recombinetics. He grew up on a cattle ranch in Minnesota and worked for nearly two full decades in Beltsville, Maryland at USDA’s Agricultural Research Service’s Animal Genomics & Improvement Laboratory.

He argued concerns raised by activists over FDA’s findings reflected sensationalist alarm not grounded in logic or science.

“We eat lots of foods that have plasmids in them: cheese, beer, yogurt; it’s a ridiculous concept,” he said, in response to a reporter’s question whether plasmids pose any health concerns to humans.

Changes to the genome, even if it includes an integrated plasmid to make a GMO, do not pose food safety risks, Sonstegard said in a follow-up email, citing as evidence plant-based meat alternatives and the GalSafe pig. FDA in December approved intentional genomic alteration in GalSafe pigs, which may be used for food or human therapeutics.

USDA proposal is ‘pretty anemic’

Hanson, policy director of the Center for Food Safety, has been following USDA’s regulation of genetically engineered animals since 2011—the year USDA’s Office of Inspector General found in a report the agency’s APHIS (Animal and Plant Health Inspection Service) had not issued regulations that pertain specifically to the introduction of genetically engineered animals or insects.

In an interview, Hanson described USDA’s ANPR as “pretty anemic,” and said he would prefer USDA and FDA coordinate a regulatory framework.

He cited several flaws in USDA’s proposal, including failure to require full or whole genome sequencing, lack of a commitment to conduct an environmental impact statement on every animal and not specifying the tests to examine food safety.

The Center for Food Safety urged FDA to require entire sequences of animals, not merely “information about the section of the genome” intended to be altered, Hanson said. Thanks to improvements in DNA sequencing, he added, his group’s request could be accommodated at a cost of a thousand dollars or a few thousand bucks per animal at the high end.

“That would allow people like me and others to actually look at the sequence and see what they modified intentionally and unintentionally.”

He also pointed to the research involving hornless cattle to refute the notion that gene editing doesn’t result in off-target effects. While USDA said it will search for such effects, failing to make the entire genome sequence publicly available could lead to the agency not identifying something that others could detect, Hanson said.

'Science-based risk assessment'

Sonstegard said he doesn’t oppose making full genome sequences available, but he questioned who in the public domain would analyze the information and is trained to do so. In an email, he also pointed out “animals born without gene editing have at least 30-100 de novo mutations in a genome caused by sexual reproduction (normal breeding and error of genome replication by the zygote/embryo).”

Recombinetics supports “full transparency,” he added, “because no breeder wants to propagate defects.”

When asked in the interview who should regulate animals subject to gene editing, Sonstegard responded it didn’t matter to him, provided such regulation is “based upon science-based risk assessment.”

“A science-based risk assessment would most likely place a lower risk on gene edits for naturally occurring traits since they are already proven safe to animals, the environment and to eat,” he added in a follow-up email to the interview. “A foreign gene (synthetic gene or gene from another species) might need slightly more assessment to prove it is effective at animal improvement with no side effects on animal function or biology, and possible food assessment, to ensure product quality.”

But the ultimate question of which government agency is the most appropriate to handle such risk assessments remains up for debate.

“We have no problem with USDA giving input into the process of how engineered animals are regulated,” Hansen said, “but that main regulation should stay with FDA.”

PepsiCo, Beyond Meat form JV to introduce new plant-based proteins

PepsiCo Inc. and Beyond Meat Inc. will form The PLANeT Partnership LLC (TPP), a joint venture to develop, produce and market innovative snack and beverage products made from plant-based protein. The joint venture will leverage Beyond Meat’s technology in plant-based protein development and PepsiCo’s marketing and commercial capabilities to create and scale new snack and beverage options.

The new joint venture follows longstanding efforts by PepsiCo to help build a more sustainable food system. Among the key pillars of that effort are using positive ingredients; expanding the company's portfolio of products that have been grown and made sustainably, through tools and techniques like regenerative agriculture and net water- and carbon-neutral production plants; and making it easier for consumers focused on health and wellness to consume products on the go through innovations such as LAY'S oven baked chips (now in 23 markets around the world), Sabra Snack Cups, Alvalle ready-to-drink gazpacho, Quaker Breakfast flats, and Gatorade Juiced. In addition to organic innovation, the company has also made strategic acquisitions in this space, including companies such as Bare Snacks (maker of baked fruit and veggie chips), BFY Brands (maker of PopCorners snacks), and SodaStream, the world's leading sparkling water brand.

Barry Callebaut launches D&I strategy

Barry Callebaut unveiled its new diversity and inclusion strategy—#one BC – Diverse People, Sustainable Growth—to attract and retain talents from all quarters of society and the world, united by its values, and to nurture an inclusive environment where this diversity can flourish.

By 2025, the company plans to deliver more progress in gender balance by having women occupy 40% of its director level positions, 30% of its director level positions in sales, as well as having 50% of senior management positions in countries of origins and emerging markets.

“With a business spanning from farm services to chefs pâtissiers and master chocolatiers, and from the large cities of the world to the small cocoa farms in rural areas, we thrive on the diversity of who we are, where we come from, what we’ve experienced and how we think. We are committed to nurturing an inclusive environment where everyone is given the opportunity to learn, grow and fulfill their potential, said Antoine de Saint-Affrique, CEO, Barry Callebaut Group.

Olam launches specialty cocoa business Twenty Degrees

Olam Cocoa recently launched Twenty Degrees, a new specialty cacao business sourcing premium quality cacao beans from around the world. Twenty Degrees will be led by an entrepreneurial new team but draw on the expertise and operational strength of Olam Cocoa,

Twenty Degrees, named for the cacao belt which ranges 20 degrees north and south of the equator, is responding by sourcing premium quality cacao beans from ten unique regions, each hand-picked for their distinctive flavor and sensory profile. The business will unlock opportunities for farmers by bringing single origin cacao beans to market that are either too specialist or too remote to be sold to mainstream manufacturers. From cacao grown in the highland Simbu region of Papua New Guinea, to beans farmed by the indigenous Eperara community in Ecuador’s coastal rainforest, a community only accessible by boat. A team of agronomists will work with each community to make sure the quality and flavour of its cacao meets the highest standards.

The Twenty Degrees business model is built on positive partnerships with farmers and customers. It is helping farmers to adopt sustainable farming practices and investing in the growth and security of the communities it works with. This also allows it to provide customers with new levels of transparency and traceability right back to the farm gate, so chocolate makers can know everything about the cacao beans they buy, from the farmers who grew them to the carbon footprint of the crop.

Private equity firm takes majority stake in Dr. Praeger's Sensible Foods

Vestar Capital Partners, a private equity firm, has made a majority growth investment into Dr. Praeger’s Purely Sensible Foods, a brand specializing in plant-based frozen and refrigerated foods made from simple ingredients. Terms of the transaction were not disclosed.

Dr. Praeger’s offers a range of vegan, vegetarian, gluten free, soy free, kosher and non-GMO foods. The company's vegetable-focused lines include veggie burgers, meat alternative burgers, sausages and nuggets, kids offerings, appetizers, snacks, breakfasts and sides. Headquartered in Elmwood Park, New Jersey, Dr. Praeger’s is led by second generation family members Larry Praeger, CEO, and Adam Somberg, president, who will be continuing in their current roles and will remain significant investors in the company.

T. Hasegawa USA acquires Mission Flavor & Fragrances

T. Hasegawa USA Inc. has acquired Mission Flavors & Fragrances Inc., a deal that broaden its flavor portfolio within dairy, bakery, plant-based alternatives, fruit-filling and confectionery categories.

“The acquisition of Mission Flavors & Fragrances, Inc. expands our technical capabilities and overall flavor portfolio so we can better serve our customers. We welcome their entire team, which is well known for its customer service excellence and aligns with our customer centric focus,” said Tom Damiano, CEO, T. Hasegawa USA.

The Winter Fancy Food Show went virtual in 2021, rebranding this annual San Francisco-based show under the Specialty Food Live! virtual event platform that was first used as a replacement for New York’s Summer Fancy Food Show last June.

Despite this necessary transformation, this week’s online event featured plenty of gourmet and specialty products to discover—this time from the comfort of viewers own homes and without the need for the multiple hand sanitizer stations that dotted the January 2020 in-person event (if we had only known then what was still to come!).

Though nothing can replace the hugging of old industry friends or the eating of too many samples, virtual showrooms—as seen at Natural Products Expo Spark Change—can encourage the discovery of new products, innovations and the trends that are driving the way Americans eat today.

Trends spotted at this week’s Specialty Food Live! in many ways reflected the overwhelming food trends that have developed as a result of the COVID-19 pandemic. Chief among these have to do with the mega-shift towards consumers eating and cooking at home. Brands are seeking to ease the burden of home cooking for fatigued consumers through products geared towards making meal-preparation faster and more convenient. Other brands want to recreate the restaurant experience at home by offering pre-prepared meals, gourmet ingredients, twists on classic comfort foods and more. Another trend, referred to by the Specialty Food Association Trendspotter Panel as “eatertainment,” involves adding a little fun and excitement to the dining-at-home doldrums—sparkles, sprinkles, crazy flavor combinations, anyone?

While these same pandemic-instigated trends are being mirrored in the natural products industry—and certainly in conventional as well—even more notable is the increasing adoption by specialty foods industry brands of more and more traditional natural products’ values.

Organic products, functional ingredients, cleaner labels and mission-based initiatives are just a few examples of this trend—come to life in many of the products on display at this week’s virtual event. Though the number of USDA Organic products in particular still has room to grow, here are just a few of the certified organic brands, products and categories that caught our eye, putting the natural in “fancy” (or the fancy in naturals?) at Specialty Food Live! 2021.

Chocolate

From exotic flavors and ingredients, to dietary tribe-friendly versions with attributes such as non-dairy, low-sugar and other better-for-you innovations, these specialty chocolates (including one drinking chocolate!) still bring on the indulgence.

Specialty chocolates from left to right: Beck’s Organic and Fairtrade Drinking Chocolate BEET me up! Beetroot Cocoa, Goodio Oat Chocolate Chai Coffee, Nirvana Organic Belgian Milk Chocolate with Apple and Caramel

Pantry staples

Pantry goods and ingredients have experienced huge growth in 2020 due to the pandemic-fueled shift towards cooking at home (and people's stocking up on these shelf-stable items). These products represent a range of healthy and sustainably sourced foods, as well as those appealing to certain dietary tribes. 

Better-for-you pantry staples from left to right: Balakian Farms Organic Blended Yellow Heirloom Tomatoes, Matiz Spicy Wild Sardines with Chili Peppers in Olive Oil, Suzie’s Organic Pea Couscous, Goji Spirit Organic Tomato-Goji Berry Sauce

Snacks, sweets and drinks

The selection of organic snacks at SFLive! 2021 was sparse this time around, but these super-berries and clean-label cookies stood out as delicious sweet snacking options. Botanicals continue to inspire flavor varieties in specialty beverages and brands like Twin Engine Coffee are focusing on transparency and values with their mission-forward roasted-at-origin coffee model.

Snacks, sweets and drinks from left to right: Emirelli San Francisco Organic Sun-Dried White Mulberries, Real Treat Kitchen Lemon Sablés with Herbes de Provence, Goldenbrew Organic Hibiscus with Lemongrass, Twin Engine Coffe Caturra (cascara) Tea.

The Centers for Disease Control (CDC) estimates more than 34 million Americans have diabetes, with type 2 accounting for 90-95% of all diagnosed cases. This number has more than doubled over the last 20 years, something the CDC attributes to an aging U.S. population and rising obesity crisis.

As the CDC notes, unlike many health conditions, individuals are able to play a role in their diabetes management, which includes improved diet and increased physical activity. A recent meta-analysis published in the BMJ—formerly the British Medical Journal—indicates a low- or no-carb diet could help push type 2 diabetes into remission, meaning an average blood sugar level over a three-month period that is below the threshold for diagnosing diabetes.

The meta-analysis, authored by Joshua Z. Goldberg et. al., sought to “determine the efficacy and safety of low carbohydrate diets (LCDs) and very low carbohydrate diets (VLCDs) for people with type 2 diabetes.” Ultimately, 23 trials consisting of nearly 1,400 participants were analyzed; of those, 40.6% of the outcomes were deemed to be at “low risk” of bias.

The analysis showed some promising results. At six months, “compared with control diets, LCDs achieved higher rates of diabetes remission,” with 57% of people on low-carb plans going into remission, versus 31% of people on other diets. However, by the one-year mark, most of those results had vanished.

“At 12 months, data on remission were sparse, ranging from a small effect to a trivial increased risk of diabetes,” the authors wrote. The same effect was noticed in regards to weight loss, with the authors noting, “Large clinically important improvements were seen in weight loss, triglycerides, and insulin sensitivity at six months, which diminished at 12 months.”

While the mechanism behind the initial success at six months and diminishing effects at 12 months are not totally clear, Grant Brinkworth, one of the authors of the meta-analysis, believed the difficulty of adhering to a diet long-term could play a role. “Despite the benefits for blood-sugar control that very low-carb diets can offer, they can be very difficult to adhere to," noted Julie Stefanski, a registered dietitian and certified diabetes educator, on WebMD. Stefanski was not part of the study.

This could also be seen in the subgroup data between the LCD groups and VLCD groups.

“On the basis of subgroup assessments deemed credible, VLCDs were less effective than less restrictive LCDs for weight loss at six months,” the authors wrote. “However, this effect was explained by diet adherence. That is, among highly adherent patients on VLCDs, a clinically important reduction in weight was seen compared with studies with less adherent patients on VLCDs.”

Despite the 12-month results, the analysis should still offer hope for those looking to manage their type 2 diabetes. As the authors noted, the six-month results indicate a low- or no-carb diet could be an effective short-term option for kickstarting weight loss and better health, which in turn can assist in the treatment and management of type 2 diabetes.

The winners, who will each be awarded $200,000, were selected from a pool of more than 1,300 applicants from 119 countries who responded to the prize’s call for researchers, nonprofits, businesses, governments and other groups focused on food system-related challenges to submit ambitious and attainable plans for regenerative, nourishing food systems by the year 2050. The top 10 Visionaries were selected based on their potential to inspire real, positive and bold transformation within specific food systems. Collectively, the Visions include more than 100 solutions capable of boosting resilience and future-proofing food systems to tomorrow’s shocks, which the COVID-19 pandemic has proved to be essential.

“It’s possible to create food systems that nourish people and protect the environment, ” said Roy Steiner, senior vice president, Food, The Rockefeller Foundation. “The Food System Vision Prize supports these diverse, game-changing solutions and hopes that they can inform an inclusive dialogue of how to transform the ways in which the world produces and consumes food at the upcoming United Nations’ Food Systems Summit.”

Later this year, the UN’s Food Systems Summit will gather key players from the worlds of science, business, policy, healthcare, and academia, as well as farmers, indigenous people, youth organizations, consumer groups, environmental activists, and other key stakeholders. Attendees will be focused on the same goal—to advance concrete actions and solutions that can bring about tangible, positive changes to the world’s food systems.

The Top 10 Visionaries include:

Arakunomics: Focusing on the regions of Araku, Wardha, and New Delhi, India, this Vision empowers tribal communities and seeks to ensure environmental sustainability, fair profits for farmers, and food and nutrition security for all.

Lima 2035: This Vision for Lima, Peru imagines a regenerative and nourishing food oasis by 2035, intending to secure climate-resilient running water for all in Lima’s fragile desert environment, returning it the green Eden that it once was.

Re-rooting the Dutch food system—from more to better: This Vision from the Netherlands outlines a transformed, circular Dutch food system that safeguards natural resources, promotes a healthier and more sustainable plant-based diet, and recycles unavoidable losses and wastes.

kwayēskastasowin wâhkôhtowin: This Vision from Canada’s Prairie Provinces aims to create a just and sustainable agrifood system while addressing the process of decolonization and reconciliation between Indigenous and settler populations.

7Gen Food System: Led by the Sicangu Lakota people, this Vision for the Rosebud Indian Reservation of South Dakota, outlines a regenerative agricultural system that creates economic opportunities for tribal members; increases the accessibility of locally produced, nutrient-dense foods; and re-establishes the Lakota as primary stewards of the lands.

Food Innovation Nervecenter: This Vision from Lagos, Nigeria, identifies six key food challenges for the region, from food waste to aging farmers, and outlines a multifaceted plan to build a more regenerative and nourishing food system to meet them.

Eat Right: This Vision from New Delhi, India, looks to create a national movement toward healthier diets through a systems-based approach of reducing food waste, improving hygiene and sanitation across the value chain, and increasing access to and affordability of healthy foods.

Restoring Nairobi to “A Place of Cool Waters”: This Vision for Nairobi, Kenya aims to develop a more equitable, just, and sustainable urban space, where access to nutritious food is a reality for everyone.

Stone Barns Center: This Vision from the Hudson Valley in New York, seeks to bring about a new food culture—rooted in the ecological, nutritional and communal potential of organic agriculture—through groundbreaking culinary experimentation.

From Mama’s Kitchen to Metropolitan Beijing: This Vision from Beijing imagines a plant-based dietary transformation for the world’s most populous nation, contributing to reductions in greenhouse gas emissions and pollution.

One major trend driving growth in the children’s nutrition space is increasing demand for foods and beverages offering gut health benefits, whether solely for digestion, or with an additional focus such as immune support. “This is high among consumers generally, but particularly so among those with kids,” shared John Quilter, vice president of the global portfolio for proactive health at Kerry.

As far as digestion, Kerry’s most recent global consumer survey revealed 42% of mothers with kids under age 12 said they’d be more interested in purchasing a juice if it offered digestive health benefits, compared with 38% of consumers overall. Similarly, 53% of mothers with young kids would be interested in purchasing a yogurt with digestive health benefits, compared to 48% of consumers overall.

For Kerry, this signifies a huge opportunity for probiotics to infiltrate kids’ products. “As well as benefits for digestive and immune health, [probiotics] command extremely high levels of consumer awareness,” Quilter affirmed, citing Kerry research showing 83% of global consumers are familiar with the term and can relate it to a health benefit. “Part of the reason for this is the growing body of scientific research on the benefits of probiotics,” he added, “including studies carried out on kids.” Research last year, for example, found Kerry’s patented probiotic GanedenBC30 had a beneficial effect on digestive and immune health in school-age children (Food Res Int. 2019;125:108567).

Nick Ferraro, marketing manager at DuPont Nutrition & Biosciences, also gave a nod to categories such as immune health and probiotics, including products geared for kids. “During the last six to eight months, due to COVID-19, food and beverage products that had an immune health claim were incredibly popular and the most in demand. That claim—regardless of ingredient source and regardless of food or beverage category—was one of the fastest-growing because consumers were looking for immune attributes in their food and beverages,” he said. “In terms of probiotics, they have also seen a rise in popularity due to the pandemic in their own right. It will be interesting to see how the future plays out and if the trend has staying power.”

Formulation can be a challenge for probiotics, as many bacteria strains struggle to survive processing conditions like high heat, Quilter said. Next-generation spore-forming strains don't have these limitations, and can be used in cheese sticks, fresh fruit pops, fruit pouches, snacks, milks, juices and more.

Other ingredient suppliers are venturing beyond probiotics to offer digestive support via prebiotics for kids. At Ingredion Inc., BIOLIGO GL 5700 IMF galactooligosaccharide (GOS) can add a prebiotic and soluble fiber boost to dairy applications, cereal, beverages, bars and more, since it’s tolerant of high temperatures and is shelf stable in low-pH applications. Chicory root fiber is on-trend at BENEO, with new research showing daily consumption of the ingredient in children ages 3 to 6 can increase and stabilize bifidobacteria levels, even during antibiotic treatment (Benef Microbes. 2019;19:1-12).

Pam Stauffer, global marketing programs manager at Cargill, suggested clean label prebiotics can help brands deliver on multiple formulation trends, with an ingredient like chicory root also checking the box for plant-based and aiding sugar-reduced products.

At Arla Foods Ingredients, whey protein alpha-lactalbumin shows promise for children’s foods and beverages looking to offer immune support. Mandana Ghisari, the company’s nutrition scientist, pointed out the ingredient comprises about 25% of the total protein content in human milk and has a bifidogenic effect that supports healthy gut flora (Eur J Clin Nutr. 2010;64[7]:765-767).

Superfoods like maqui berry have a role to play here too, as they can offer not only antioxidant content for a healthy defense, but also vibrant colors that can eliminate or reduce the need for artificial or added colorings.

Download the Children and toddler nutrition: Winning strategies to feed the future – digital magazine to read this article in its entirety.

Melissa Kvidahl Reilly is a freelance writer and editor with 10 years of experience covering news and trends in the natural, organic and supplement markets. She lives and works in New Jersey.

The effects of the COVID-19 pandemic will continue to be part of life in 2021, weaving their way into nearly every trend impacting consumer spending and new product development. Consumers are seeking out comfort and uplift, while also hunkering down for whatever parameters the coming months bring. A light is at the end of the tunnel, however, and Saage Insights anticipates a surge of consumer confidence by summer and autumn of 2021, as lockdown mode abates.

Drawn from in-house knowledge and findings from qualitative interviews conducted in May 2020, the firm predicts the following trends will influence the food and beverage segment this year.

Immunity and protection

The pandemic is driving a heightened desire for security against pathogens, changing many people’s perspective on acceptable levels of purification, especially in public spaces. With awareness fixated on health and safety, consumers are looking for products that promise the highest level of cleanliness, protection and immune support.

The desire for immunity is increasing interest in the supplement market and influencing food and beverage trends, as consumers look for key wellness ingredients. Saage’s interviewees highlighted elderberry as an important element of immunity routines. Antioxidants, vitamins and electrolytes were also important to these consumers, through supplements, teas, juices and functional drinks.

2020 accelerated the evolution of contactless commerce and created an obsession with all things germ-free. It is likely that establishments such as restaurants, bars, grocery stores and convenience stores will begin to advertise their safety precautions such as high energy visible (HEV) lights that kill harmful bacteria or high-efficiency particulate air (HEPA)-rated filters.

The hospitality industry quickly pivoted to contactless service last year through QR-coded menus and ordering. Now that more consumers have learned how to scan QR codes, brands have an opportunity to use QR beyond contactless service—for instance, to drive engagement or offer deals.

Mental health focus

The shared experience of going through a global pandemic is changing attitudes toward mental health and driving a new openness to talk about personal struggles and seeking help. Social media is becoming a platform for mental health conversations, including candid posts on Instagram and the warts-and-all confessional nature of many TikToks. Some consumers are seeking relief from anxiety and stress through apps such as Headspace or Calm.

Consumers are looking for antidotes to the stress and anxiety of this moment through products as well, from somatic designs such as weighted blankets to calming beverages like teas. Within food and beverage, interest is growing in naturally lifting moods through ingredients such as cannabis, adaptogens, nootropics, probiotics, prebiotics or omegas. An entire category of drinks is emerging that promises uplift and calming, powered by these ingredients.

Most of all, consumers are seeking positivity, an attitude that companies are wise to tap into in brand engagement. For inspiration, look to the face of pure positivity, the viral TikTok sensation Nathan Apodaca (DoggFace208), who recently longboarded into fame armed with an Ocean Spray bottle and “Dreams” by Fleetwood Mac. Ocean Spray rewarded Apodaca with a new Nissan Frontier PRO-4X 4WD Crew Cab for the unexpected promotional boost, bringing the feelgood vibes up even higher for the brand among consumers.

Comfort

The current stay-at-home lifestyle is driving desire for relaxing, low-key, upbeat products and entertainment. Consumers are seeking out coziness, from binge-watching soothing shows like The Great British Bake Off to lounging in comfortable athleisure and luxe pajamas.

Comfort food continues to trend as well, as consumers learn to bake bread, indulge in pizza, ice cream, cookies and snack foods, and prepare cozy meals at home. Interviewees, especially Gen Z participants, cited TikTok and Pinterest as places for food inspiration, from scouting the latest Starbucks secret menu items to finding recipes for baking projects.

Food and beverage brands are wise to explore ways to merge comfort with the desire for better-for-you products. This could include adding functionality—such as adaptogenic mushrooms in hot chocolate—focusing on clean labels that are free from additives or reducing sugar content.

Sustainable slant

Sustainability is driving innovation within the food industry, and consumers are embracing better-for-the-world advancements such as plant-based meat, upcycled ingredients and green packaging. Demand for meat alternatives is up globally as consumers gradually shift away from meat consumption. Some interviewees explained that they were reducing meat due to sustainability concerns, citing a belief that the cattle industry is tied to climate impacting greenhouse gases.

Some food and beverage brands are reducing waste through upcycling ingredients. From vodka made with discarded coffee fruit (Good Vodka) to snacks made with the spent grains from beer production (Upcycled Grain Project), products that use ingredients that would otherwise be thrown out as waste are launching globally.

Regenerative agriculture is another area of focus for brands. Brewers from Dogfish Head to Anheuser-Busch are exploring this sustainable approach to ingredients that focuses on rebuilding soil health and biodiversity. The former launched a beer highlighting the practice in 2020, Dogfish Head Re-Gen-Ale, made with sustainably grown wheat.

Now, with fast-food chains on board with the sustainability trend, such as McDonald’s new McPlant burger and Burger King’s trial of returnable packaging, the new face of food is becoming widely accessible to the mainstream in 2021 and beyond.

Chef shuffle

The pandemic is shaking up the restaurant industry, causing mass closings and unemployment within the service industry. Although it’s causing a lot of pain and heartbreak as neighborhood staples close, an undercurrent of entrepreneurial energy is brewing. Cottage food startups are emerging from the ashes, some of which tap the zeitgeist of the socially distanced world. Upscale picnic services such as Plein Air Picnic, located in Monterey, California, are providing an alternative to the restaurant experience. Covid has also accelerated the trend toward personal chefs and prepared meal deliveries, an area that will likely continue post-lockdowns.

This is an ideal time for brands to look into collaborating with chefs, such as Kroger’s summer 2020 activation, in which Top Chef Brooke Williamson used the brand’s Private Selection and Simple Truth ingredients to create a Perfect BBQ. Highly aware of the struggles of the restaurant industry, consumers are likely to embrace activations with local chefs within their own communities.

As the world begins to reopen in late 2021, a new creative boom will emerge among chefs. With the pandemic causing a proliferation of ghost kitchens, the food industry will be reshaped. Expect a new wave of artisanal products such as chef-created hot sauces, kimchis or cocktail syrups. The future is not necessarily brick and mortar. Incubators, delivery-only models, pop-ups, food trucks and nimble attitudes will prevail in 2021 and beyond as the restaurant industry digs out of the chaos of 2020.

Home cooking

With restaurants closing and consumers spending more time in their abodes, home cooking is on the rise and the habit is likely to stick once the pandemic is over. Saage Insights’ interviewees mentioned that cooking with their families has been a highlight of their time in quarantine. Families are experimenting with new recipes and ingredients, investing in new cookware, and learning the benefits of shopping lists and meal planning.

Social media is fueling a fetishization of home cooking. From friends sharing their sourdough loaves on Instagram to the TikTok obsession with Le Creuset products, social media will continue to influence the home cooking trend in 2021. Instagram, TikTok and Pinterest are all ideal places for food and beverage brands to connect with consumers, providing inspiration and knowledge.

Brands are also wise to explore new products that bring ease and convenience to home cooking. Mixes, meal kits and other semi-homemade options resonate, especially as the world begins to open up again and time becomes less available.

Carla Avruch is co-founder of Saage Insights, a qualitative research and trend forecasting agency dedicated to keeping brands relevant to their consumers. Working in the consumer insights field since 2003, she has advised many food and beverage companies, including Kellogg's, Godiva, PepsiCo, InBev and Diageo.

Whole Earth Brands to acquire Wholesome Sweeteners

Whole Earth Brands Inc., a global food company enabling healthier lifestyles by providing access to premium plant-based sweeteners, flavor enhancers and other foods through a diverse portfolio of trusted brands and delicious products, entered into a definitive agreement to acquire all of the issued and outstanding capital stock of WSO Investments Inc., the holding company for Wholesome Sweeteners Inc., a leading organic sweetener brand in North America.

The US$180 million cash deal expands Whole Earth’s portfolio and meets growing consumer demand for natural and plant-based dietary options, baking ingredients and taste profiles. Wholesome is the U.S. leader in organic, plant-based and Fair Trade-certified sweeteners, including sugar, honey, agave nectar, allulose and other liquid sweetener products.

Cargill opens new premix, nutrition facility in Ohio

Cargill has opened a new premix animal nutrition facility in Lewisburg, Ohio. The 220,000 square-foot, future-ready facility is deploying advanced technology not previously used in animal agriculture or pet food production that allows the use of less resources to produce feed, while ensuring the highest quality and traceability of its products for Cargill customers.

The $50 million investment in expanding Cargill’s existing feed production operations. The facility produces non-medicated feed and supports Cargill and Provimi branded animal nutrition premixes and products, along with additives and specialty and custom blends.

BlueNalu secures $60 million in financing to advance cell-based seafood

BlueNalu received a $60 million in debt financing from investors to bring cell-based seafood to the U.S. this year. The financing will enable to the company to complete opening a nearly 40,000-square-foot pilot production facility, complete FDA regulatory review for its first products, and initiate marketplace testing in a variety of foodservice establishments throughout the U.S.

BlueNalu plans to introduce a wide variety of cell-based seafood products from its pilot production facility in San Diego. The company anticipates starting with the launch of mahi mahi later this year, followed by the launch of a premium bluefin tuna thereafter.

Previously, BlueNalu announced completion of its Series A round of $20 million in early 2020, and its Series Seed round of $4.5 million in early 2018.

Kalsec expands Shanghai facility

Kalsec is expanding to a new office space and food application laboratory at its Shanghai location. In 2009, Kalsec expanded into China and has been supporting the burgeoning domestic Chinese market ever since.

On Dec. 24, 2020, Kalsec officially opened its new headquarters in Shanghai, inside the Caohejing Development Zone. “The upgrade of the Kalsec China headquarters reflects our commitment to provide close support to our food and beverage customers in Greater China and the Asia-Pacific region,” said Kathleen Koh, managing director, Kalsec Asia. “Through the expansion of the application laboratory, we can better test and develop solutions for the market along with finished goods that are healthy and sustainably sourced.”

Tastepoint by IFF expands North American presence

Tastepoint by IFF will soon complete a series of strategic growth initiatives to expand its footprint on both coasts. Tastepoint Philadelphia and Greater Los Angeles locations are poised to spark innovative solutions for customers nationwide with new facilities, renovations and additional technologies and expertise.

Tastepoint’s West Coast footprint expansion involves construction of a new creative center, scheduled to open May 2021, and upgrades to an existing manufacturing center. The new state-of-the-art facilities allow for more accessible customer engagement and a significantly expanded customer base. The Creative Center will be equipped with a culinary center, flavor creation, and application and analytical labs. The upgrades to the manufacturing center include new production capabilities for vitamin blends, oil powders and spice blends, as well as the integration of new technologies to enhance spray-dry and emulsion flavor capabilities.

Tastepoint’s headquarters in South Philadelphia now features new spaces that optimize capabilities in flavor development and customer ideation. Complete with custom-designed equipment, a chef-appointed culinary kitchen and master baker-approved pastry arts lab provide the ultimate customer experience through engagement, education and collaboration.

Driven by strong consumer demand, a new Health Concepts lab is dedicated to testing nutrition and health products for performance and stability. Additionally, dairy and beverage pilot plants, as well as the Application labs for sweet goods, beverage, dairy, savory and flavor portfolio have been fully renovated. The space also features a newly updated analytical lab with several gas chromatography-mass spectrometers to broaden abilities. These upgrades allow Tastepoint to stay continuously dedicated to flavor and end-to-end product development innovation.