Understanding the Clean Label/Consumer ... - Food Processing · trends listed by Mintel Group for...
Transcript of Understanding the Clean Label/Consumer ... - Food Processing · trends listed by Mintel Group for...
SPONSORED BY
Understanding the Clean Label/Consumer Connection
eHANDBOOK
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
eHANDBOOK: Clean Label 2
www.FoodProcessing.com
“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
eHANDBOOK: Clean Label 3
www.FoodProcessing.com
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
www.FoodProcessing.com
eHANDBOOK: Clean Label 4
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.
www.FoodProcessing.com
eHANDBOOK: Clean Label 5
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.
www.FoodProcessing.com
eHANDBOOK: Clean Label 6
“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
www.FoodProcessing.com
eHANDBOOK: Clean Label 7
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.”
www.FoodProcessing.com
eHANDBOOK: Clean Label 8
Food Processing 2017
Each of these free events feature a live Q&A session and lasts 60 minutes.
Plant Operations: The Industrial Internet of Things
Food Safety: Designing for Reliability in Harsh Environments
Product Development: Ingredient Trends: Clean Label
Plant Operations: Food Safety’s Impact on Plant Operations
Business Strategies: Financing your Food and Beverage Business
Nutrition Facts Label: Meeting non-GMO requirements
Nutrition Facts Label: Meeting non-PHO requirements
Industry Forecast: 2017 Industry Outlook
Motors & Drives: The Food-Safe Plant: Motor & Gearing Solutions
Food Processing’s online webcast events offer you an interactive experience to listen and talk with experts in all facets of the food and beverage industry. Join Food Processing editors and other industry experts as they dive into topics that hit home for food and beverage manufacturers.
Register today: http://info.foodprocessing.com/2017-online-events
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
eHANDBOOK: Clean Label 10
www.FoodProcessing.com
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
eHANDBOOK: Clean Label 12
www.FoodProcessing.com
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
eHANDBOOK: Clean Label 14
www.FoodProcessing.com
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
eHANDBOOK: Clean Label 16
www.FoodProcessing.com