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Articles from 2022 In June


Inside Organic

Elevating the organic message – download

White-paper-Elevating the organic message – download

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Organic is a huge industry–a $63.3 billion one, in fact– and is growing fast. A 2020 Organic Trade Association survey of 3,188 shoppers found that more than 90% believe organic is more important than ever. But coming up with simple and effective messaging on what organic is and why it's important remains one of the largest hurdles for the industry to truly explode with mainstream shoppers.

The benefits of organic for human health and the planet are well-known to those in the industry, but because organic encompasses a wide variety of practices, telling consumers why they should care can be a complicated issue. Describing what organic isn't–no pesticides, no GMOs, no artificial chemicals, etc.–is relatively easy. It's the must dos and the yeses that are hard, like organic's positive impact on climate change, increased transparency and supporting local farms and communities, among others.

Explore this eGuide to dive deep into the world of organic and learn how some of the top forward-thinking companies in the space are breaking the mold when it comes to effective messaging as the industry races towards a healthier and more sustainable future. 

A special thank you to our program partners:

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Inside Organic

How choosing products made with organic palm oil is critical for the future health of the planet – webinar

White-paper-How choosing products made with organic palm oil is critical for the future health of the planet – webinar

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Palm oil is everywhere. It's used in approximately 50% of the products on grocery store shelves, which makes it a vital ingredient for our day to day lives. But it's true that palm oil has historically had a bad reputation thanks to some companies' environmentally destructive harvesting practices. But there's a better, more sustainable way to produce palm oil: organically. Organic palm oil has the potential to turn many consumer's purchasing habits into more sustainable choices.

Register for this webinar with Daabon Executive Vice President Felipe Guerrero and New Hope Network Content Strategist Nancy Coulter-Parker to learn how choosing products made with organic and sustainable palm oil is critical for the health of the planet.

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Felipe Guerrero
Executive Vice President, Daabon

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Nancy Coulter-Parker
Content Strategist, New Hope Network

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Study: Colorful diet cuts risk of cognitive decline 20%

Article-Study: Colorful diet cuts risk of cognitive decline 20%

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A diet packed with flavonoid-rich fruits and vegetables may reduce risk of cognitive decline by 20%, according to a recent study (Neurol. 2021;97[10]:e1041-e1056). 

Flavonoids are phenolic compounds commonly found in fruits and vegetables, as well as tea, wine and grains. The compounds, which are responsible for the vibrant colorings of fruits and vegetables, are well known for their health benefits, including antioxidant and anti-inflammatory effects.  

Research shows the powerful effects of flavonoids can be obtained by eating the foods that contain them. Eating flavonoid-rich foods like cranberries and chocolate, for example, may provide health benefits such as improved mood, brain function and immunity.  

The present study, published in Neurology, credited long-term intake of flavonoid-packed fruits and vegetables including strawberries, oranges, grapefruits, citrus juices, apples, pears, celery, peppers and bananas with significantly lower odds of subjective cognitive decline (SCD). 

SCD is a self-observed decline in cognitive function that’s considered one of the earliest noticeable symptoms of dementia and Alzheimer’s disease—a disease that plagues about 6 million Americans, according to the Alzheimer’s Association. Common symptoms of SCD include worsening or more frequent memory loss and confusion, according to the Centers for Disease Control and Prevention (CDC).  

CDC reported 1 in 9 adults in the United States are dealing with SCD.   

For the study, researchers evaluated the connection between dietary flavonoids and SCD in 49,493 women from the Nurses' Health Study (NHS, 1984-2006) and 27,842 men from the Health Professionals Follow-Up Study (HPFS, 1986-2002). Using data collected from semiquantitative food frequency questionnaires (SFFQs) that were administered to participants of both NHS and HPFS, researchers determined the participants’ long-term average dietary intake.  

To assess SCD, participants were asked questions such as: "Do you have more trouble than usual remembering recent events?" and "Do you have more trouble than usual remembering a short list of items?" SCD was assessed in NHS and HPFS participants twice throughout the study. 

After adjusting for age, total energy intake and dietary factors, results showed people who consumed the most flavonoids each day—about 600 mg of flavonoids—were 20% less likely to report SCD than the people who ate the least amount of flavonoids each day—about 150 mg.  

Flavones, found in high amounts in some teas and herbs, were most strongly associated with decreased risk, representing a 38% reduction in risk of cognitive decline, while anthocyanins were associated with a 24% reduction in risk of cognitive decline. Flavanones were also strongly associated with decreased risk. 

Rachel Adams joined Informa’s Health & Nutrition Network in 2013. Her career in the natural products industry started with a food and beverage focus before transitioning into her role as managing editor of Natural Products INSIDER, where she covered the dietary supplement industry. Adams left Informa Markets in 2019. 

Business briefs: Pepsi – Mars – Keurig Dr Pepper – FFP – Kensing

Article-Business briefs: Pepsi – Mars – Keurig Dr Pepper – FFP – Kensing

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Pepsi invests $24 million in plant in India 

PepsiCo India has unveiled plans to invest $24 million to expand its largest greenfield foods manufacturing plant in Uttar Pradesh, India. This facility, commissioned in September 2021, primarily makes Lay’s potato chips. The expansion will allow for a new manufacturing line to accommodate production of Doritos. PepsiCo has operated in India since 1989, and has become one of the largest food and beverage companies in the country. 

“The progressive ecosystem and industrial climate in Uttar Pradesh has yielded some fantastic opportunities for PepsiCo India,” said Ahmed ElSheikh, PepsiCo India president. “Thanks to the industry friendly policies and ease of doing business in the state, we achieved a major milestone of setting up our greenfield foods plant in Kosi in less than two years. The state-of-the-art facility is fueling the economic ecosystem and creating job opportunities in Uttar Pradesh.” 

Mars breaks ground on global R&D center 

On June 16, Mars Wrigley broke ground on a new global R&D hub in Chicago. The new facility will be built adjacent to the company's existing Global Innovation Center on Goose Island. The multimillion-dollar investment will be the company’s largest innovation hub, and will incorporate a test kitchen for developing new products. 

"Mars has a long history here in Chicago, and we're proud to continue our legacy of innovation in the Chicagoland area by breaking ground on our best-in-class global research and development hub for Mars Wrigley," said Chris Rowe, global VP of R&D. "As a leader in snacking and treating, we look forward to Chicago being the center of exciting, consumer-driven innovations that span the globe." 

The new facility is projected to bring about 30 more jobs to the Mars Wrigley Global Innovation Center. Construction is scheduled to be completed by summer 2023. 

"Mars has been a respected part of the Goose Island community for the past 17 years," said Chicago Alderman Walter Burnett Jr. "I am thrilled to see Mars deepen its commitment to Goose Island with the groundbreaking of this new facility." 

Keurig Dr Pepper acquires NA cocktail brand Atypique 

Keurig Dr Pepper has reached a definitive agreement to acquire global rights to Atypique, a nonalcoholic (NA), ready-to-drink (RTD) cocktail brand, from Station Agro-Biotech, a Quebec-based company specializing in manufacturing and marketing alcoholic and NA beverages.  

Atypique is a part of the fast-growing nonalcoholic cocktail segment, offering a range of RTD NA cocktails such as gin and tonics, margaritas and mojitos. In terms of retail dollar sales, NA cocktails grew more than 30% over the last year. Atypique has a 42% market share of that segment. 

"We were looking for the best way to bring Atypique to the next level,” said Jonathan Robin, Station Agro-Biotech president. “This agreement represents an exceptional opportunity to work with a beverage industry leader, and Keurig Dr Pepper will bring market knowledge and strength to the Atypique brand.” 

Olivier Lemire, president of Keurig Dr Pepper Canada, stated, "Atypique is a great complement to our successful ready-to-drink alcohol portfolio, and we look forward to continue innovating around this brand to drive accelerated growth." 

Florida Food Products acquires Javo Beverage Co. 

Florida Food Products (FFP) announced it has acquired Javo Beverage Co., a natural extractor and formulator of clean label coffee, tea and botanicals. The company focuses on beverage applications including extraction capabilities and production of cold brew coffee solutions. 

In 2021, Ardian, a private investment house, acquired a majority stake in FFP from MidOcean Partners and established a new partnership to accelerate FFP’s long-term growth. Under this partnership, FFP has acquired Comax, T-Bev, and now Javo.  

“We’re ecstatic for Javo to join the FFP platform,” raved Jim Holdrieth, FFP CEO. “Javo’s best-in-class products are supported by a talented team and unique manufacturing capabilities that will drive a series of innovative new product launches. As part of the FFP family, we’re confident that Javo can offer our customers compelling new solutions that build on our deep portfolio of clean label ingredients.” 

Kensing acquires Vitae Naturals 

Kensing, manufacturer of vegetable-oil derived specialty chemicals, has acquired Vitae Naturals. Originally founded as Vitae Caps in February 2000, Vitae Naturals is a Spanish company with an international focus. The company produces plant sterol esters and non-GMO vitamin E derivatives for the food, nutrition and skin care markets. 

"We are pleased to bring Vitae Naturals into the Kensing family," announced Serge Rogasik, Kensing CEO. "This acquisition is highly complementary, strengthens our footprint in Europe and enables further expansion in food ingredients.” 

Rafael Cano Mariblanca, Vitae Naturals’ general manager, concurred: “Our businesses share similar values and we are delighted to become a part of the Kensing team. Kensing provides a strong platform to build upon our position in our existing markets and expand further into the personal care market. Together, we have a truly diversified footprint with numerous opportunities for growth.” 

Wellness trends fuel growth of energy drink industry

Article-Wellness trends fuel growth of energy drink industry

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Continued supply chain disruption and escalating inflation are impacting many CPG industries. The energy drink industry, however, is experiencing more upheaval than most. In a recent interview with Fox Business, Celsius Holdings CEO John Fieldly described an increasingly fraught year for the energy drink sector. "Unfortunately, we're seeing costs increase when we talk about labor, we talk about gas, transportation, input costs, raw material costs," Fieldly stated. 

Celsius joined the energy drink landscape in the industry rush of the early 2000s alongside Monster Energy and Full Throttle—the first Celsius drinks were launched in 2005—but the company has recently been recording significant profits. The company’s 2022 first-quarter revenue was up 167% from last year, earning more than $133 million. One reason for the company’s success despite prevailing economic woes is a focus on wellness. 

As consumers search for health-conscious options, many industries have seen a flourishing field of wellness-oriented alternatives to grocery staples. Nondairy milks, plant-based meats and naturally sweetened treats are proliferating, and many of these markets are expanding more rapidly than their traditional counterparts.  

Energy drinks have associated stigmas of being loaded with sugar and high levels of simulating chemicals like caffeine and taurine. Energy drink manufacturers tout the vitamin content of these beverages, but the flashy, energy-at-any-cost branding of some of these products have alienated consumers who are looking for holistic wellness in all facets of their diet. Companies like Celsius have arisen to try to fill this gap, providing “clean” energy drinks for health-conscious consumers. 

A recent Good Housekeeping article ranked eight energy drinks—not by flavor or effectiveness, but according to recommendations from registered dietitians. Author Stefani Sassos said, "The experts in the Good Housekeeping Institute Nutrition Lab rounded up an energy drinks list of some of the better picks that focus on low added sugar counts and prioritize natural sources of caffeine (as opposed to synthetic caffeine)." Celsius was included as the best low-calorie energy drink, while other superlatives included the best sugar-free energy drink (Alani Nu) and best organic energy drink (Sambazon). 

The field of clean energy drinks is promising enough that it is still attracting newcomers. Last week, No Sugar Co. announced the launch of a line of natural energy, naturally caffeinated and plant-based energy drinks named Joyburst.  

Despite supply chain disruption from Covid-19, the energy drink sector is still marking record profits—and natural energy drinks, in particular, appear to be poised for breakout growth. 

"We are part of a daily lifestyle, a daily routine," Fieldly asserted. "It's part of your health and wellness growth. So we feel we're in a pretty good position."

Understanding consumer demands for sweetness and sustainability – white paper

White-paper-Understanding consumer demands for sweetness and sustainability – white paper

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With consumers' ever-evolving attitudes toward the products they consume, srutinizing the ingredients inside and how those products are produced, keeping your brand proposition while remaining relevant can be a challenge. Unless, that is, you have Cargill on your side.

In Cargill's white paper, "Sustainable Sweetness," the company explores two of the most powerful forces influencing food and beverage development today: demand for reduced sugars and expectations around sustainable sourcing. 

Gain insight about:

  • Proprietary consumer insights clarifying sweetener perceptions and the importance of sustainability
  • How our Stevia Sustainability Agricultural Standard protects both farmers and land
  • Next-generation sweeteners that support dramatic sugar reduction while earning high marks for sustainability

Download now to learn how Cargill's sweetener category leadership can give you a competitive edge.

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Kellogg Company splitting into three businesses

Article-Kellogg Company splitting into three businesses

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Kellogg Company announced plans this week to separate its businesses into three independent public companies focused on snacks, cereal and plant-based foods.

As independent entities, the businesses will be better positioned to focus on their unique strategic priorities and perform with increased agility and flexibility, according to Battle Creek, Michigan-based Kellogg. Kellogg said the split also would enable the three independent companies to achieve improved outlooks for profitable growth and shape individual corporate cultures.

The strategic shift was revealed Tuesday after the company’s board of directors approved a plan to separate Kellogg’s North American cereal and plant-based foods businesses through tax-free spinoffs.

“Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value,” Kellogg Company Chairman and CEO Steve Cahillane said in a news release announcing the planned separation. “This has included re-shaping our portfolio, and today’s announcement is the next step in that transformation.”

While Kellogg hasn’t determined the permanent names of the independent companies, it said “Global Snacking Co.” would be a leading company with around $11.4 billion in net sales focused on global snacking, international cereal and noodles, as well as North American frozen breakfast. Kellogg owns such breakfast and snack brands as Eggo, Cheez-It, Rice Krispies Treats and Pop-Tarts.

The second independent business would be a cereal company in Canada, the Caribbean and the U.S. “North America Cereal Co.” has about $2.4 billion in net sales, according to Kellogg, whose figures in its news release are based on 2021 unaudited results. Its cereal brands include such iconic names as Kellogg’s, Frosted Flakes, Raisin Bran and Rice Krispies.

Kellogg disclosed its third business, “Plant Co.”—with around $340 million in net sales—would be focused on plant-based foods and supported by its MorningStar Farms brand. Kellogg said it has grown MorningStar Farms progressively since its acquisition more than 20 years ago, and the brand now boasts the largest share and household penetration in the frozen vegetarian/vegan category.

“These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities,” Cahillane said. “In turn, each business is expected to create more value for all stakeholders, and each is well positioned to build a new era of innovation and growth.”

Kellogg anticipates the proposed spinoffs will be completed by the end of 2023 and result in tax-free distributions of North America Cereal Co. and Plant Co. shares to Kellogg Company shareowners. Among other closing conditions, the transactions are subject to reviews and final approval by Kellogg’s board of directors, receipt of an Internal Revenue Service ruling and relevant tax opinions concerning the tax-free nature of the transactions.

Kellogg, which said it will provide updates throughout the process, has a website devoted to the transactions at unleashingourpotential.com. The planned spinoffs will enable shareholders to “value each company based on its distinct operational and financial characteristics and invest accordingly,” according to Kellogg’s website.

Shares of Kellogg (NYSE-K) were trading Friday morning at $69.47. Over the last 52 weeks, the share price has ranged between a low of $59.54 (March 14, 2022) and high of $75.56 (May 10, 2022).

Protein battleground: Sustainability & demand fuel advancement – digital magazine

White-paper-Protein battleground: Sustainability & demand fuel advancement – digital magazine

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Takeaways for Your Business:

  • 77% of American adults reported consuming high-protein foods in the past 12 months.
  • Plant-based protein often carries a health halo and perception of increased sustainability.
  • Boosted protein foods include cereal, snacks, bars, frozen desserts, breads, dairy and more.

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Inside Organic

The importance of organic CBD – video

Video-The importance of organic CBD – video

When it comes to organic CBD, Charlotte's Web is leading the pack. Their fully vertically integrated production model and organic farming of CBD and other natural ingredients ensures that their impact on the planet and on their customers' health is a positive one.

See why Charlotte's Web has made such a significant investment into fully organic CBD products for the health and safety of our communities and for their responsibility to the earth.

Inside Organic

What is Inside Organic?

Article-What is Inside Organic?

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Inside Organic is designed to bring together companies with USDA-certified organic products from across the supply chain to develop a collective, clear communication and education programs to support organic. The $61.9 billion organic industry has faced many challenges over the years, including a lack of consumer awareness and confusion over of what USDA-certified organic means. In 2022, Inside Organic will use a range of content platforms, research, virtual and in-person events to proactively help retailers and brands elevate and expand the story of organic. Acting as a unifying megaphone to help increase organic awareness and education, this program will help insert ingredient companies, suppliers, manufacturers, brands and retailers share the many benefits of organic in a manner that resonates across the supply chain from producers and brands to consumers, …. now and in the future. This is an opportunity to grow organic as an industry and a lifestyle.