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Page 1: Understanding the Clean Label/Consumer ... - Food Processing · trends listed by Mintel Group for both 2015 and 2016. Clean eating has inspired a back-to-basics approach to product

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Understanding the Clean Label/Consumer Connection

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TABLE OF CONTENTSMaking Foods Transparent 3

Perfecting product labelling: The first step toward deeper customer connection 10

Ancient Appeal: An Analysis of How Ancient Grains are Shaping the Market 12

Alleviate FSMA Compliance Concerns With USA-produced guar gum 14

Deliciously Different Non-GMO Applications 16

AD INDEXInfor 9

Bunge 11

TIC Gums 13

Parker Products 15

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“Customers want transparency.”

When someone like Walter

Robb, co-CEO of Whole

Foods Market, says that, food and bev-

erage processors listen. But what exactly

does he (and his customers) mean? What is

transparency? It’s one of those means-dif-

ferent-things-to-different-people issues. It

certainly includes a clean and clear label. A

clean label typically means foods with fewer

ingredients, preservatives or artificial fla-

vors, colors or sweeteners. Consumers also

crave authentic, ethical, simpler alternatives

to conventional fast-and-mass production

processes. Transparency in the food chain

involves many different domains.

Replacing artificial ingredients with clean

ingredients is just the beginning. Food com-

panies realize this is heading to a new level

of communication. Processors need to tell

consumers their story, whether it’s how

they created a shorter ingredient statement

with fewer chemical-sounding names, a

code of ethics, being on a first-name basis

with farmers or concern for the Earth.

Greenridge Farm, Elk Grove Village, Ill.,

in March relaunched its deli products by

touching on several elements of transpar-

ency. “Hand-crafted, featuring traditional

European recipes and spices, Greenridge

Farm products are now carefully curated

down to the last detail: free of nitrates,

nitrites ... artificial flavors, artificial colors,

phosphates, MSG, gluten and soy [using]

only the highest quality ingredients avail-

able, including sea salt rather than iodized

salt, and are sourced locally whenever pos-

sible,” reads a company announcement.

Making Foods TransparentConsumers want transparency; retailers are demanding it. Food processors who deliver it gain trust. But what is transparency?

By Lauren R. Hartman, Product Development Editor

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Consumers have begun to learn quite a bit

about where their food comes from and

what’s in it.

Last year, General Mills, Nestle and Kraft

Heinz began replacing artificial flavors and

colors; more breads, crackers and cookies

are going allergen-free (think Udi’s, Enjoy

Life, even Keebler) and beverages are avail-

able in organic versions (PepsiCo just came

out with an organic Gatorade). Such moves

to reformulate have begun to pay off for

some processors.

Simpler ingredients may be reversing sales

losses at General Mills. Chairman and CEO

Ken Powell reports seven General Mills

cereals that were reformulated to remove

artificial colors and flavors saw a 6 percent

upturn in sales as of January, regaining

a 6 percent drop in sales they suffered

last year.

“It’s definitely important to inform consum-

ers about the food they are buying,” affirms

Londa Nwadike, consumer food safety spe-

cialist for Kansas State University Research

and Extension and the University of Missouri

Extension. According to Nwadike, there are

many misleading and non-regulated terms

such as “local,” “sustainable” and “artisan,”

and the FDA also doesn’t have any defi-

nition for the widely used term “natural,”

she notes.

At least not yet. The word “natural” has

been controversial and difficult to define

in terms of food, but the FDA currently has

an open comment period until May that

allows consumers and food businesses to

comment on whether there should be a

definition for natural and what that defini-

tion should be.

Transparent, clean-label attributes were one

of the top five U.S. food and drink market

INGREDIENTS TO COMMUNICATE

Hormone-free

52%

Free of antibiotics

49%

Artificial

48%

GMO-free

41%

Organic

31%

Potential allergens

26%

Gluten-free

18%

Dairy-free

13%

Vegetarian or vegan

10%

Just what’s in product

27%

Source: Transparency 2015 report, The Hartman Group

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trends listed by Mintel Group

for both 2015 and 2016.

Clean eating has inspired a

back-to-basics approach to

product development, points

out Innova Market Insights’

Top Ten Trends list for 2016.

“Interest in a return to food pro-

cessing the natural or old-fashioned way,

the search for permissible indulgence and

the re-establishment of links to ‘real’ food

are some of the emerging trends this year,”

says Lu Ann Williams, director of innovation

at Innova.

THE GMO SAGAOne hotly contested call for food transpar-

ency is about labeling products that contain

genetically modified organisms (GMOs). In

January, Campbell Soup Co., Camden, N.J.,

was the first major food company to call for

mandatory national GMO labeling of food

products, but a handful of big firms fol-

lowed in the past month.

“The vast majority of Americans want GMO

labels, and we believe they

have a right to know what’s

in their food and how it’s made,”

notes Dave Stangis, vice presi-

dent of corporate responsibility

and sustainability at Campbell. “We favor

mandatory national GMO labeling. This

commitment is our purpose in action.”

In March 2016, as Congress stalled over a

federal law that would pre-empt Vermont’s

labeling law, which began July 2016, Gen-

eral Mills, Mars and Kellogg announced they

would begin labeling their products for the

presence of GMOs. General Mills’ Powell

said of the decision, “Consumers want

simple foods they can understand, so natu-

ral and organic will continue to be a bigger

part of who we are.”

But this won’t be enough, according to

international food and restaurant consul-

tants Baum +Whiteman. The Brooklyn, N.Y.

consultancy also says don’t bother

illustrating packaging or menus

with pastured cows and leaves

of grass. Consumers are search-

ing for more concrete, holistic

initiatives, such as hard data on

waste control and water conserva-

tion, animal and employee welfare,

sustainability and a host

Endangered Species Barks and Bites chocolates strive to increase awareness of high-risk animal species with conserva-tion data and stand-out graphics of owls, jaguars, eagles and other endangered creatures.

Bees impact one-third of the food and beverages Americans con-sume, so General Mills is investing in pollinator habitat and making a statement on-pack about the decrease of bees.

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of other ecological and

social issues.

“Simply reporting the

facts and science does

not fulfill consumers’ defi-

nition of transparency,”

agrees Charlie Arnot, CEO

of the Center for Food

Integrity (CFI), Gladstone, Mo. “Food pro-

ducers must commit to communicating an

ethnical foundation.”

Transparency means being accountable

and adaptable, which can be used to build

consumer trust, echoes Campbell’s Stangis.

“People are increasingly demanding to

know where their food comes from, how

and where it’s grown and why certain

ingredients are used,” he said in a recent

Huffington Post blog. “They now expect this

kind of information to be accessible at the

touch of a button. The question is no longer

if companies should disclose the details of

food ingredients, but how.”

FULL DISCLOSUREIn this digital era of accessing information

nearly instantaneously, companies can earn

more consumer trust if they provide faster

feedback. And transparency is expected.

“We have to embrace the consumers’ right

to know and give them the information they

want,” says Arnot. “Transparency works. The

CFI has statistical data to show that increas-

ing transparency in farming, food production

and processing will increase

consumer trust.”

Arnot refers to CFI’s 2015 study that sur-

veyed 2,000 people to explore the most

important attributes of trust-building trans-

parency – policies, practices, performance

or verification. Effective practices cited

were consumers’ ability to engage a food

company by asking questions through a

company website and receiving straight

answers in a timely fashion.

Offering the results of third-party audits

publicly and putting information in

easy-to-understand language are other

points consumers seek. “These practices

demonstrate a company’s values in action,

and our research shows shared values

are the foundation for building trust,”

Arnot adds.

Survey respondents were also asked who

they hold most responsible for transpar-

ency – food companies, farmers, grocery

stores or restaurants. “The study shows

clearly that consumers hold food compa-

nies most responsible for demonstrating

transparency in all six areas,” Arnot says.

Transparency is the reason Tyson Foods removed all added nitrites and nitrates from its Ball Park brand of beef hot dogs and eliminat-ed by-products and fillers from its meat line.

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“Consumers want all the details — the good,

the bad and the ugly — so they can decide

for themselves. When GMOs were intro-

duced, consumers told us food companies

are most responsible. This could lead to

food companies requiring more information

from their suppliers and reporting more

information to consumers.”

Transparency can be conveyed via prod-

uct packaging. Bare Snacks, San Francisco,

recently shared its philosophies with con-

sumers via packaging graphics that convey

its core values to consumers: simplicity,

transparency and nothing bad for you,

according to CEO Santosh Padki.

Wrappers for Rxbar protein bars from Chi-

cago Bar Co. were recently redesigned to

feature only a list of ingredients on the front

of the package, and nothing more, in order

to stress Chicago Bar’s commitment to

whole foods.

START WITH CLEAN INGREDIENTSAll of this means challenges for product

developers, who must balance demands for

naturalness and no preservatives with the

very vital needs of maintaining shelf life and

preventing spoilage and bacterial growth. In

some cases, natural ingredients can provide

equivalent functionality and help clean up a

label. A number of plant-based antioxidants

– including rosemary, green tea and acerola

– are effective at protecting a variety of

foods from color and flavor degradation.

Other natural preservatives and ingredients

include acidifiers and organic acids, antioxi-

dants and natural fibers.

While it may sound counter-intuitive, tech-

nology can provide solutions: high-pressure

pasteurization and high-voltage pulsed

electric pulse fields are providing enough

sterilization to pre-empt preservatives.

Clean-label hydrocolloids, for example, can

help formulators sort out their clean label

stabilization options, notes TIC Gums, White

Marsh, Md. TIC offers gums, stabilizers and

blends derived from natural sources to

meet multiple needs of natural, organic and

non-GMO applications.

The company also provides a clean-label

hydrocolloid chart to address transparency

issues. Egg ingredients offer more than 20

functional properties in formulation, includ-

ing binding, aeration, emulsification and

coagulation, says the American Egg Board,

Park Ridge, Ill.

Food developers buying more minimally

processed ingredients want assurance

the ingredients are indeed minimally pro-

cessed, so ingredient companies must show

proof of the steps taken to verify their

claims. Boulder Organic Foods, Boulder,

Colo., struggled early on to source enough

organic, gluten-free, and non-GMO ingredi-

ents to keep up with demand for its soups.

Now it collaborates with organic farmers

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and traders in advance to ensure it receives

sufficient supplies in time, explains CEO

Greg Powers.

Ingredient supplier Ingredion since 2004

has used its Truetrace program to protect

non-GMO purity via global, third-party-au-

dited best practices for segregation and

documentation of non-GMO maize.

Procedures for growers – regarding seed,

farm practices and production fields – are

strictly enforced and audited according to

established protocols. “Using identifiers

for each grower, we can trace any batch

of starch back to the farmers who grew

the corn, the fields on which the corn was

grown and the seed varieties and lots used,”

says a company spokesperson.

“Simply put, if you increase transparency,

you will increase trust,” Arnot sums up.

“Authentic transparency can transform

relationships that have been tarnished

by suspicion and reduce the fear of the

unknown.”

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eHANDBOOK: Clean Label 8

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THE NEW NORMAL MEANS CHALLENGES AND OPPORTUNITIES TO ALIGN WITH CONSUMERS

The demand for additive-free, non-GMO,

low calorie, and fresh products is not just

a fad. This new normal is adding to the

burden on food and beverage companies

as they struggle to comply with vague

definitions and evolving standards for

compliance. Today’s clean label move-

ment is an example of consumer demand

for informative labels and products free of

added chemicals, colors, and unnecessary

ingredients. While food and beverage com-

panies may want to seize the opportunity

to appeal to a market that has spend-

ing power, the task isn’t easy. Definitions

evolve, as do expectations. And,

manufacturers are often left trying to strike

a balance between healthy ingredients and

pleasing taste.

Disappointing the consumer—whether

on taste, product purity, or misleading

labels—is always a risk. This is why accurate,

informative product labelling is now in the

industry spotlight. Product recalls, damage

to a brand’s reputation, and possible litiga-

tion are just some of the high-risk concerns

around labelling. Without the right tools and

processes in place, the potential for costly

errors is a constant threat—so much so that

labelling errors often account for over 40%

of USDA recalls in the US, according to

Food Quality & Safety.

Perfecting product labelling: The first step toward deeper customer connectionEver-increasing requirements around labelling compliance can present a daunting challenge for today’s food and beverage companies. Not only is there a continual need to keep up with rules that are subject to seemingly endless changes, the consequences for labelling mistakes can be severe. Read on to learn more about this issue and how IT solutions can help meet the challenges.

By Infor

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As consumers seek foods with com-

pelling origin stories, food makers

are turning to the past for inspi-

ration, and ancient grains are taking center

stage. A category of grains consumed by

civilizations for thousands of years, ancient

grains deliver sensory appeal, desirable

nutritive qualities, and intriguing stories

of origin.

As a result, grains like quinoa, sorghum, and

millet have earned their place at the table,

moving from relative unknowns to center

stage, with up to 36% of women and 27% of

men consuming ancient grains “frequently”

or “sometimes.” Ten years ago, the names

of these foods might have drawn confusion;

now, grains like quinoa, sorghum, millet, and

chia are not just familiar, they’re in demand.

In fact, ancient grains are the only food

category to encompass the six leading con-

sumer trends, according to a 2016 Mintel

report, aligning with trends in whole grains,

non-GMO, high fiber, low sodium, low sugar,

and gluten-free. Pair that with the mar-

ket’s increasing desire to move to fresher

and less processed diets, and ancient

grains prove to be a category impossible

to ignore.

Ancient Appeal: An Analysis of How Ancient Grains are Shaping the MarketBy Bunge

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The recent implementation of the

Food Safety Modernization Act

(FSMA) aims to ensure the U.S.

food supply, including imported food and

ingredients, is safe. Focus has shifted from

responsive measures concerning contam-

ination risks to implementing enhanced

preventative measures. This heightened

responsibility has been placed with all food

manufacturers and importers.

Although there are many items to consider

in FSMA regulations, TIC Gums can help

alleviate concerns around two key elements

pertaining to guar.

Foreign Supplier Verification Program

(FSVP) which includes verification

acitivites like on-site audits and review

of supplier records.

Preventive Controls for Human Food

which includes a written Food Safety

Plan and Supply Chain Program as well

as updated Current Good Manufacturing

Practices (CGMPs).

GuarNT USA eliminates the need for

costly international audit trips and

introduces a validated microbiological kill

step early in the supply chain to ensure

preventitive controls.

To read more about the benefits of GuarNT

USA from TIC Gums, download the full

white paper.

Alleviate FSMA Compliance Concerns With USA-produced guar gumGuar gum is a label-friendly ingredient derived from the guar plant (Cyam-opsis tetragonoloba) almost exclusively grown in India and Pakistan. Food developers use this highly versatile hydrocolloid to build viscosity and con-trol water migration in a wide range of finished goods including ice cream, instant beverages, sauces, baked goods, fruit preparations and syrups.

By TIC Gums

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While many brands will choose to

label their GMO ingredients in

compliance with the law, others

may choose to reformulate their products to

be non-GMO. Although reformulation can be

a costly challenge, certain types of products

and brands may justify the effort in order to

expand their customer base, retain brand

loyalty, and introduce exciting non-GMO

offerings to feed the need for intriguing

options. Targeting the emerging market for

non-GMO projects, companies introducing

new products that are free of GMOs have

the potential to reignite interest and re-es-

tablish a brand’s position.

WHAT BRANDS SHOULD CONSIDER GOING NON-GMO?All-Natural Brands

The clearest case for reformulation lies with

those brands that take a highly natural posi-

tion in their branding and marketing. Many

of these companies have already gone non-

GMO, of course, but for those that have

yet to finalize that transition, federal GMO

labeling should push them to take the leap.

If your audience is concerned about the

all-natural qualities of what they eat, in gen-

eral, a GMO label will likely be a deterrent,

and result in declining sales. For brands

that place heavy emphasis on clean labels,

sustainability, or health, reformulation to

remove genetically modified ingredients will

be essential. It may be less critical for more

conventional brands, whose audiences may

not be as concerned about GMOs.

Deliciously Different Non-GMO ApplicationsWith a nationwide GMO labeling bill now signed into law, food brands are tasked with reconsidering their strategy to manage and comply with the transition.

By Parker Products

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