Kerry to acquire clean label preservative maker Niacet for $1 billion

Kerry Group has agreed to acquire Niacet Corp., a leader in clean label preservation technology, from the private equity firm SK Capital Partners for US$1 billion. The addition of Niacet’s complementary capabilities will enhance Kerry’s food protection and preservation strategy to offer new products and technologies in a broader market.

Following the acquisition, expected to close in 3Q21, Niacet will be integrated into Kerry’s global food protection and preservation platform. Niacet’s portfolio includes vinegar-based preservation technologies for meat and plant-based foods and has a proprietary drying and granulation process for bakery, meat and pharma applications.

Commenting on the deal, Edmond Scanlon, CEO of Kerry, said: “The acquisition of Niacet’s complementary product portfolio enhances our leadership position in the fast-growing food protection and preservation market and significantly advances our sustainable nutrition ambition. Niacet is a business with market leading positions, differentiated technologies and a strong and highly experienced management team. We are pleased to welcome the Niacet team to Kerry and we are excited at the potential the combination of our two businesses offers to outperform in this important and attractive market.”

PURIS begins expansion of pea protein facility

PURIS has begun retrofitting its 200,000-square-foot facility in Dawson, Minnesota in 3Q21. The facility will help bolster the company as a top supplier of pea protein in North America and further accelerate its mission to build a sustainable food system to feed a growing population.

The Dawson facility will support continued growth for PURIS Proteins, which saw 60% annual topline growth the past 5 years compared to the category average of 12% annually, and enable the company to supply roughly 50% of North America’s pea protein upon completion.

The Cargill-backed venture more than doubles PURIS’ production capacity and supports 400+ growers and 200,000+ acres of PURIS Yellow Field Peas, which are bred for superior yield, disease resistance and vigor while leaving the soil healthier than it started.

Brenntag to acquire JM Swank

Brenntag announced plans to acquire JM Swank, a leading distributor of food ingredients, from the Platinum Equity private equity firm. The acquisition, expected to close 3Q21, expands Brenntag’s presence in the North American nutrition industry.

JM Swank offers a highly diversified product portfolio of food ingredients such as spices, dairy, grain, sweeteners, fats and oils, texturants, flavors and colors, starches, cocoa and inclusions. JM Swank’s broad product line complements Brenntag’s existing portfolio.

“This strategic acquisition will double Brenntag’s size in the Nutrition business in the region and thus creates the leading food ingredients and food process chemicals distributor in North America with approximately one billion US dollars in revenue,” said Christian Kohlpaintner, CEO, Brenntag SE. “Nutrition is one of the defined focus industries in the Brenntag Specialties division. This acquisition is fully in line with our M&A strategy as it accomplishes key strategic objectives: acquiring companies generating a meaningful operating EBITDA contribution as well as targets accelerating growth of our Brenntag Specialties division.”

General Mills launches diabetes-friendly snack line

General Mills launched Good Measure, an allulose-sweetened snack bar line that targets consumers concerned about their blood sugar levels. The creamy nut butter bars are available in three flavors—Blueberry & Almond, Peanut & Dark Chocolate and Almond & Dark Chocolate—and feature fewer than 3 g of sugar per serving and the words “little impact on blood sugar” on the label.

Good Measure is aimed at an underserved group of consumers that cares about the nutritional quality of food and how it interacts with their blood sugar, including people with diabetes and prediabetes. “Nearly 1 in 6 adults in the U.S. have already been diagnosed with prediabetes or diabetes,” said Jonathan Scearcy co-founder of the Innovation Lab at General Mills.

Deerland launches DE111.com

Deerland Probiotics & Enzymes recently launched DE111.com, a site that provides information about its DE111 probiotic, its benefits and scientific support to its partners and their end customers.

The site includes links to human clinicals, as well as introductory information about how probiotics work in the body. As a probiotic spore, DE111 is known to deliver immune and digestive health benefits across applications in supplements, foods, beverages and pet nutrition. Bacillus subtilis DE111 is, by nature, a hardy probiotic that lends itself to a wide range of manufacturing conditions and formats, including gummies, drink powder mixes, snacks and pet treats.

“Consumers want to know the story behind the product—the ingredients, how they work, and the science behind them,” said Kristin Wilhoyte, director of marketing communications, Deerland Probiotics & Enzymes. “Product developers can visit DE111.com to get information on product stability, clinicals, and ideal applications. Likewise, consumers who see the logo on product packaging are led to the benefits DE111 offers, as well as the science that supports it.”

The days of grainy mystery meats and rubbery faux cheeses are long gone, inspiring consumers to reach for delicious and satisfying plant-based foods and alternatives more than ever before.

According to retail sales data from the Plant Based Foods Association (PBFA), plant-based food sales in the U.S. surpassed $7 billion in 2020 and grew 43% in the past two years, which bests the growth rate of total food sales by nine times. And it’s not because massive numbers of consumers are forsaking meat altogether. A report from Packaged Facts showed that while most Americans consider themselves omnivores and the number of vegans and vegetarians has remained stable over time, a large portion (36%) identify as flexitarian, meaning they actively infuse their diets with veggie-based meals as part of a healthy living plan.

Food & Beverage Insider spoke with executives from leading plant-based brands—including Veggies Made Great and Danone North America (the parent company behind So Delicious, Silk and more)—to learn about the top trends and influential consumers most impacting the market.

Food & Beverage Insider: What are some of the top plant-based food and beverage trends right now?

Christine Luongo, senior brand manager, Veggies Made Great: Plant-based trends were all the rage in 2020 as more consumers were educating themselves about health, sustainability, safety and animal welfare—all things that help drive the plant-based world.

Some of the most notable trends in plant-based foods were the rises we saw in plant-based meats and plant-based milks. I think those two categories in particular will continue to thrive. I think we will start to see some other categories really start to rise, notably plant-based seafood and plant-based packaging. I believe consumers are just as concerned about what they put into their bodies as they are about where the packaging of that food comes from. I believe you’re going to start to see companies really focus on what their packaging is made out of, and making conscious efforts to reduce waste.

In terms of what I believe is most in demand from consumers, I think they just want transparency. The plant-based movement is all about doing what is better for the planet and its people. As a plant-based brand, consumers need to feel you align with that belief.

Food & Beverage Insider: Who is the plant-based consumer today?

Takoua Debeche, chief research and innovation officer, Danone North America: Recently, we’ve seen the plant-based consumer audience grow and gain momentum. The global pandemic has spurred a renewed focus on health and well-being, inspiring many people to explore adding more plant-based ingredients into their diets. We believe the biggest consumer opportunity comes with the flexitarian—someone who follows a diet that includes both meat and dairy, as well as plant-based alternative options.

To read this article in its entirety, check out the “Power to the plants: Capitalizing on the plant-based momentum” digital magazine.

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. 

A national advocacy group and representatives of the meat processing industry are clashing over whether the U.S. faced an imminent shortage of meat in the wake of COVID-19.

In a recent lawsuit filed in Washington, D.C., Food & Water Watch alleged Smithfield Foods misrepresented to consumers that a nationwide meat shortage was impending when in fact meat exports to China and other evidence showed otherwise.

In April 2020, Smithfield warned the U.S. was “perilously close to the edge in terms of our meat supply,” yet several studies showed its pork exports to China soared to record highs that same month, according to a June 16 lawsuit filed in the District of Columbia Circuit Court.

“Government data further refute Smithfield’s doom-and-gloom warnings, showing that pork inventory held in ‘cold storage’ warehouses was well into the hundreds of millions of pounds,” the complaint stated, “which analysts have estimated could have kept grocery stores stocked with pork for months, even absent any additional production.”

Industry representatives, however, pushed back against claims that the country wasn’t facing a crisis in meat production during the pandemic. 

Sarah Little, a spokeswoman with the North American Meat Institute, said pork and beef slaughter was down by roughly half by mid-April 2020. By the time in late April that the Centers for Disease Control and Prevention issued specific guidance to the meat and poultry industry and an executive order was signed invoking the Defense Production Act, state and local governments moved to close plants, she noted.

“Companies were struggling to obtain scarce PPE [personal protective equipment] and COVID tests,” Little added in a statement. “Stakeholders up and down the supply chain were concerned the situation would get worse, leading to more significant and widespread food shortages, de-population of livestock and significant economic loss.”

On April 28, 2020, then-President Donald Trump invoked the Defense Protection Act in an executive order, compelling meat processors to remain open to stave off shortages in U.S. food supply chains, The Washington Post reported at the time.

Earlier that same month, Smithfield announced its plant in Sioux Falls, South Dakota—one the country’s largest pork processing facilities—would remain closed until further notice.

“The closure of this facility, combined with a growing list of other protein plants that have shuttered across our industry, is pushing our country perilously close to the edge in terms of our meat supply,” Kenneth Sullivan, Smithfield’s then-president and CEO, warned in an April 12, 2020 statement. “It is impossible to keep our grocery stores stocked if our plants are not running.”

Jim Monroe, a spokesman for the National Pork Producers Council, said U.S. pork production undoubtedly faced a “crisis” in 2020.

“At the peak of the crisis, more than 40% of U.S. pork harvest facility capacity was unavailable due to facility shutdowns or slowdowns,” he said in a statement.

Due to an overcrowding of pigs on farms, many hog farmers had to euthanize the animals to prevent their suffering, Monroe said.

“The risk of a pork shortage was very real,” added Monroe, who credited implementation of the Defense Production Act for helping to restore harvest capacity.

Workplace safety

The lawsuit filed by Food & Water Watch doesn’t just concern whether the U.S. faced an impending meat shortage after COVID-19 emerged. The complaint further alleged Smithfield made “deceptive and misleading” statements regarding workplace safety.

Smithfield workers’ accounts and government regulators’ safety citations contradict Smithfield’s representations concerning its workplace safety protocols, Food & Water Watch claimed.

About 58,000 meatpacking workers, including more than 3,200 Smithfield employees, have contracted COVID-19, according to Food & Water Watch.

Smithfield “stridently beat the drum on issues of enormous significance, exploiting consumers’ fears about meat shortages and assuaging their concerns about workplace safety,” the lawsuit alleged. “And while the company’s campaign on these fronts has no doubt benefited its business, it is built on a series of egregious misrepresentations, deceptions and falsehoods.”

Keira Lombardo, chief administrative officer of Smithfield, said in a June 23 statement that the company hasn’t received a copy of the complaint and didn’t have sufficient time to review its allegations or substantively respond to them.

“The advocacy organizations who make these claims have a stated goal of dismantling the efforts of our hard-working employees, who take great pride in safely producing food products,” she said. “To be clear, our health and safety measures, guided by medical and workplace safety expertise, have been comprehensive as our teams have worked from coast to coast to protect the food supply during the pandemic.”

 

One may not immediately think of chocolate when conceiving a well-balanced breakfast, but a recent study published in the FASEB Journal may put a change to that; according to the researchers, a serving of chocolate within an hour of waking may have benefits throughout the day, including reduced blood glucose levels, fat burning and a decrease in waist size (2021;35:e21649). The researchers also found morning chocolate consumption resulted in lower daily cortisol levels. The study pointed to benefits resulting from pre-bedtime chocolate consumption as well.

For the study, 19 postmenopausal women ages 48-56 were selected. These subjects “took 100 g of milk chocolate for two weeks within an hour of waking up together with breakfast (MC), 100 g of milk chocolate for two weeks within the hour before bedtime (EC), and no chocolate for two weeks (N), in a randomized order. There was a week of washout between each condition in which volunteers followed their usual dietary habits but without eating any chocolate.”

Not only did the subjects not report weight gain associated with their increased chocolate consumption, some even reported a decrease in waist circumference following the morning chocolate routine. Part of this, the researchers explained, stemmed from those consuming chocolate in the morning consuming fewer relative calories the rest of the day. Researchers saw a 16% drop in total calorie consumption after morning chocolate consumption, and a 10% reduction in the group eating chocolate at night.

“Our findings highlight that not only 'what' but also 'when' we eat can impact physiological mechanisms involved in the regulation of body weight," said Frank A. J. L. Scheer, Ph.D., and one of the study’s co-authors. “Meal timing can influence circadian rhythms, and eating a high-energy and high-sugar food such as chocolate, either at night or in the morning, may have a different effect on the circadian system, the peripheral clocks of different organs and tissues, and consequently on body weight and metabolism."

The researchers also noted the lower cortisol levels found in subjects after eating chocolate could have played a role in overall lack of weight gain and decreased caloric intake. They stated, “daily cortisol levels were lower when eating chocolate in the morning than at evening/night. Lower cortisol levels have been related to a lower stress-related appetite, which may partly explain the better caloric compensation by the females when eating chocolate in the morning.”

Nighttime consumption of chocolate also showed benefits. According to the study, “Eating chocolate during the evening/night may increase endogenous carbohydrate reserves of glycogen in muscle and liver by the next morning, and carbohydrate utilization may be promoted because of the reduced capacity that the body has to store carbohydrates as compared to fat. Therefore, chocolate intake at evening/night could be advisable for next morning performance during high intensity exercises or prolonged exercises and thus avoid hepatic and muscle glycogen depletion.

“This randomized controlled trial study suggests that chocolate, in the morning or in the evening/night, in a narrow window of time (1 h), results in differential effects on hunger and appetite, substrate oxidation, fasting glucose, microbiota composition and function, and sleep and temperature rhythms,” the study concluded. “The intake of a rather high amount of chocolate (100 g) concentrated in a narrow (1 h) timing window in the morning could help to burn body fat and to decrease glucose levels in postmenopausal women.”

Food & Beverage Insider insights

Research indicated more than 90% of people consumed chocolate during the pandemic. Even as personal health moved top of mind, consumers made allowances for their favorite sweet treats.

Formulators and brands have picked up on these at-times opposing desires by making better-for-you chocolate treats—think reduced sugar, added functional ingredients and more. However, this study shows chocolate—even milk chocolate, used in the study but often considered “less healthy” than dark varieties—has plenty of benefits of its own to tout, even without adding or subtracting key ingredients.

While making chocolate healthier with those additions and subtractions can help create new and exciting products, many consumers want the original thing. With studies like this, brands have a jumping off point to attract new consumers. Of course, much more research must be done to show these results are repeatable, especially with different cohorts of test subjects. But decreased stress and increased energy, and the lower likelihood of overeating throughout the day as a result, are benefits consumers may not even know their chocolate has to offer. Even if further research indicates these results are typical only in the researched group (postmenopausal women), brands could use further studies to target that specific audience with scientifically backed claims; Statista puts the U.S. population of women over 50 at nearly 55 million.

As the study’s authors say, when we eat can often be as important as what we eat. Educating consumers on the potential benefits their favorite indulgences may offer if eaten at the appropriate time only serves to make those products even more attractive.

Today’s consumers want to know their food is doing something for them. While that often means adding more benefits to their favorite food and beverage, sometimes simply making consumers aware of the already inherent benefits their favorite foods have to offer is half the battle. 

The COVID-19 pandemic changed many things about the world and how today’s consumers interact with it, but one fact stayed true throughout the pandemic: People still love chocolate.

While the pandemic certainly resulted in increased attention being paid to personal health, it also took its toll on people; year-plus-long lockdowns and restrictions left people cut off from friends, family and the world as they knew it. Through it all, however, there was chocolate.

According to a recent Cargill study, consumers increasingly turned to chocolate during the pandemic for many different reasons. Based on Cargill’s findings, chocolate served as more than an indulgent treat; it became a lifeline of sorts for consumers. Results of the study showed “seven in ten (72%) [consumers] agree that chocolate lifts their mood, while 59% say it boosts their energy.” More than half of respondents (52%) also indicated chocolate “gets them through a tough day.” This love for chocolate—whatever the motivation behind it—also proved universal; the study showed less than 3% of American consumers actively avoid chocolate.

However, none of this is to say that all chocolate is created equal, and today’s consumers are seeking and expecting more from their sweet treats. The Cargill study showed consumers are demanding better chocolate—both for their own health and the well-being of those along the supply chain. For example, dark chocolate remains a consumer favorite because of its perceived health benefits; 52% of consumers choose it because they believe “it’s healthier” than milk or white chocolate.

In addition to gravitating toward chocolate they believe to be better for them, consumers are reviewing their purchases with increased scrutiny. According to the Cargill study, “Half of consumers consider dark chocolate a more premium choice; 71% notice when chocolate has a grainy, coarse texture; and nearly 1 in 4 shoppers perceive chocolate that denotes its cocoa bean origin country as higher quality.”

The study also revealed two opposing, but equally important, views on chocolate and experimentation. On the one hand, consumers are looking for new and interesting products, formats and flavor pairings, with 45% indicating they are “always looking” for new chocolate flavors and products. On the other hand, classic flavor pairings still reign supreme; the study found “Caramel and peanut butter topped the list [of flavor pairings] by a significant margin, with 60% of consumers selecting them in their top three. Behind these time-tested combinations, salty, mint, fruity and coffee/espresso flavors held similar sway—with no single option clearly rising to the top.”

Younger generations—specifically Gen Z and Gen Y—however, are driving demand for more novel flavors. For these groups, pairings such as spice, herbal and botanical notes all showed strong demand.

Food & Beverage Insider insights

The phrase “permissible indulgence” may be the pandemic’s lasting legacy on food and beverage. Dueling desires by consumers to lift their moods with food while also keeping close tabs on personal health (not to mention planetary sustainability) have given cause for consumers to want their cake and eat it (guilt-free) too.

Luckily, formulators and brands have heard the call and delivered. Chocolate can be found in all shapes, sizes, flavors and formats, allowing consumers to get exactly what they seek from their sweets. For those looking to cut down on sugar, chocolate sweetened with ingredients like monk fruit, stevia, allulose and erythritol can help cut some of the guilt out of chocolate consumption. For consumers looking to fortify their diets, sweets are available with added protein, vitamins, minerals or gut-health-focused pre- and probiotics. And for those who wish to indulge without having to ignore the less savory side of chocolate farming and production, brands across the world are placing increased emphasis on fairly traded, sustainably grown products that don’t put the planet or those who grow it at unnecessary risk.

Whatever one’s chocolate of choice, it’s clear the pandemic has led to a desire for this permissible indulgence. Consumers, nearly universally, love and seek out chocolate and were drawn to it during pandemic-driven times of stress and uncertainty. In 2021 and beyond, consumers truly can have their chocolate and eat it, too—all without the guilt.

Arla signs contract with Northern Irish whey protein supplier

Arla Foods has signed a contract with leading dairy company Dale Farm to supply whey protein concentrate for Arla’s global ingredients business. This is the first time the two dairy cooperatives have partnered as part of a major supply contract.

Dale Farm is headquartered in Northern Ireland and will supply Arla Foods Ingredients, headquartered in Denmark with whey protein concentrate that will be used as an ingredient in infant formula and consumer health ingredients. Dale Farm has until now mainly supplied whey protein for use in sports nutrition products, so this contract repositions this aspect of its business within the infant formula market.

“The two companies share a common vision of how to develop high quality ingredients for the global markets and for Arla, making it a significant next step in our growing ingredients business,” said Povl Friis, supply chain senior vice president, Arla Foods Ingredients

Kerry to sell meat, meal business to Pilgrim’s Pride

Kerry Group plc signed an agreement to sell its Consumer Foods’ Meats and Meals business in the U.K. and Ireland to Pilgrim’s Pride Corp. for approximately US$977 million in cash.

The Meats business is a leading manufacturer of branded and private label meats, meat snacks, food-to-go and meat-free products in the U.K. and Ireland. Its brands include Richmond, Denny, Galtee, Fridge Raiders and Rollover. The Meals business primarily serves the U.K. market and specializes in authentic ethnic chilled and frozen ready meals, multi-cuisine ready to cook ranges, and home delivery meals under the Oakhouse brand.

Ardent Mills advances regenerative agriculture program

Ardent Mills, in partnership with Nutrien Ag Solutions, announced the advancement of its regenerative agriculture program to strengthen the soil ecosystem and help producers improve their farms’ productivity and profitability.

By the end of 2022, the company has committed to enrolling 250,000 acres of spring and winter wheat into its regenerative agriculture program with the goal of advancing regenerative agriculture practices and building the grower base over the next three years.

“Ardent Mills is dedicated to making a positive impact in our communities and sustainability initiatives are a critical component of that. Our own supply chain is a big area of opportunity,” said Phoenix Dugger, corporate social responsibility manager, Ardent Mills. “Ardent Mills’ regenerative ag program aims to improve farm profitability and productivity and create insights as to how these practices affect the crop itself. We’re excited to continue to grow this program and learn from farmers who are the ultimate stewards of the land.”

In cooperation with its producer partners and Nutrien Ag Solutions, Ardent Mills has built a regenerative agriculture program that aims to increase organic matter content and improve nutrient efficiency and water infiltration. The program uses key outcomes and provides side by side quality comparisons to comprehensively understand how regenerative agriculture affects the quality of wheat. The regenerative agriculture program currently operates across 12 projects in nine geographies in the U.S. and Canada, including Alabama, Colorado, Idaho, Kansas, Montana, North Dakota, South Dakota, Pennsylvania, Texas and Saskatchewan. The initiative helps serve Ardent Mills’ customers by providing valuable opportunities to meet their public sustainability goals and meet the needs of their consumers.

Once Upon a Farm acquires Raised Real

Once Upon a Farm has acquired Raised Real, a leading organic, plant-rich baby food meal delivery company, and all assets related to the company’s operations. The purchase of Raised Real will expand Once Upon a Farm’s growing organic, refrigerated pouch portfolio to now include frozen meal options, making it even easier for parents to choose and prepare nutritious meals and snacks for babies and toddlers.

“We’ve watched and admired Raised Real’s approach and products for over three years, and think they are a perfect fit for our portfolio as we continue to build our next generation kid nutrition company,” said John Foraker, co-founder and CEO, Once Upon a Farm. “They give us an important entrée into the frozen space where there is significant opportunity for baby & kid innovation, and to increase our scale and capabilities in direct-to-consumer, which is an important part of our growth strategy.”

As part of the acquisition, Once Upon a Farm will reintroduce the line of organic meals later this year. This flexible meal format is ideal for busy families looking to add variety and convenience to breakfast, lunch or dinner. The nutrient-rich meals can be pureed, mashed, served as finger foods, or used as complimentary sides for little ones. In addition to expanding into the fresh frozen food space, the company also changed from a Limited Liability Company to a Public Benefit Corporation (PBC).

Hank Cardello to lead new Georgetown McDonough leadership program

Business for Impact at Georgetown University’s McDonough School of Business is launching a new industry leadership initiative that will bring together food executives, non-profit leaders, government regulators, and the public health community to put teeth into advancing actionable, real world solutions.

This new program, Leadership Solutions for Health + Prosperity, will be led by Hank Cardello, former food executive at major corporations, Forbes contributor, author and media personality, who brings a reputation for identifying and architecting industry-driven solutions and commitments to challenging public health and social problems. The program will undertake executive forums to shape industry and stakeholder solutions to serious industry-related issues, such as obesity and the impact on climate; educational seminars on hot-button issues; groundbreaking research on changing consumer behaviors; and strategic planning with business and regulatory experts. Cardello also will serve as chair to expand the Portion Balance Coalition, a Business for Impact initiative of more than 35 companies, nonprofits, government agencies, and academics focused on addressing the obesity epidemic.