Interest in healthy foods grows despite rising retail prices.

10.03.2022 By Caleb Wilson Photo: ©ALICIA NEUMILER – STOCK.ADOBE.COM

NEW YORK — While consumers continue to cut costs at the grocery store amid rising prices, over half are willing to pay a premium for food that contributes to their health, according to recent data from the consultancy Deloitte.

The company’s annual report on fresh foods revealed that nearly half of consumers have grown more stressed while shopping in stores, increasing from 40% in 2021 to 48% in 2022.

The leading driver behind the elevated stress levels is price, which remains the top concern for consumers looking for fresh foods. Consumers have shifted their purchasing patterns as a result, with 38% trading down to private label products and nearly 20% giving up fresh foods for frozen or canned alternatives.

Deloitte’s data reaffirms similar research from IRI that found bargain hunting has become a favored consumer practice.

However, consumers remain interested in foods that promote health and wellness, with 84% of buyers saying it was a consideration. An additional 80% of consumers believe fresh foods are healthier than packaged and processed counterparts, and 55% said they would be willing to pay a premium for health and wellness foods.

“Despite inflation and rising food costs, consumers are willing to pay for fresh food that will positively impact their health and wellness,” said Daniel Edsall, principal at Deloitte. “Grocers who can close the information gap between fresh food and its health outcomes can be better positioned to win over consumers — and compete on aspects other than price.”

With wellness in mind, consumers are also using foods as a form of medicine. Roughly three quarters of consumers believe the right food can be “the best medicine,” offering improvements in energy, aiding in weight management, preventing diseases and even managing existing medical conditions.

Personalized nutrition also has trended upwards over the past few years, with 75% of consumers actively seeking more personalization, an increase of 13% since 2021.

“Amid increasing competition, fresh food producers and retailers have the opportunity to introduce consumers to healthy choices and use food as medicine,” Mr. Edsall said.

Why are consumers buying fewer plant-based meat alternatives?

11.17.2021 By Keith Nunes

KANSAS CITY — Retail sales of fresh and frozen plant-based meat alternatives are decelerating. After two years of category sales growth, with 2020 buoyed by the COVID-19 pandemic, sales have slowed. 

“We’ve seen a big deceleration,” said Chris DuBois, senior vice president of IRI’s protein practice. “Plant-based meats don’t make up 50% of the market or 25%. Despite all of the noise, it’s 1.5% of meat sales. It’s still relatively small.”

Three reasons for the fall in sales may be the products don’t meet the consumer’s perception of clean, companies in the category have not proven their products are more sustainable than conventional meat products, and competition, according to Mr. DuBois.

Both Maple Leaf Foods, Inc., Toronto, and Beyond Meat, El Segundo, Calif., commented on the sales deceleration when discussing their most recent quarterly results.

“In the past six months, unexpectedly, there has been a rapid deceleration in the category growth rates of plant-based protein,” said Michael H. McCain, president and chief executive officer of Maple Leaf Foods, during a Nov. 4 conference call with securities analysts.  “Of course, our performance has suffered in the middle of this, but the more concerning set of facts are rooted in category performance, which (has) basically flatlined.”

Maple Leaf Foods operates its plant-based protein business through Greenleaf Foods, SPC, Chicago. The business owns two primary brands — Field Roast and Lightlife. Plant-based applications manufactured include cheese, tempeh and such alternative meat products as hot dogs, sausages, roasts, loaves, deli slices and burgers.

During the third quarter of fiscal 2021, Greenleaf’s sales fell to C$48 million ($38.5 million) from C$51.4 million ($41.3 million) during the same period of the year before.

“To be clear, there is a fair amount of COVID noise in the market now, and we can't discount that,” Mr. McCain said. “However, it isn’t only COVID noise, and we’re going right back to square one with the consumer to fully understand what has changed, if anything, and why.”

Beyond Meat, Inc. missed its third-quarter guidance of between $120 million to $140 million in sales and reported $106 million in revenues during the period. Ethan Brown, president and chief executive officer, ticked off six reasons for the sales decline during a Nov. 10 conference call.

“One, consumers reported fewer and less frequent trips to the store; two, consumers reported being less open to trialing new products; three, consumers reported less interest in healthy options,” he said. “Four, the cancellation or reduced scope of our sampling programs as a Delta variant spread, limited new consumer exposure to our brands and category; five, to a much lesser extent than in foodservice, they’re still relevant, labor issues created complexity and possibly impacted demand due to delay in shelf resets and less frequent restocking; (and) six, with increased competition over the past two years, we're seeing, as expected, some impact on our market share.”

But Mr. DuBois pointed to more fundamental reasons for the sales deceleration, including the fact many plant-based meat alternatives do not meet the consumer’s definition of clean label.

“There are a lot of different oils and complicated ingredients used in meat substitutes,” he said. “When you look at the ingredient list of a McDonald's burger, like a Quarter Pounder or Big Mac, it's phenomenally simpler; it reads a lot simpler than traditional plant-based meats.”

Sustainability also may be an issue.

“Plant-based meats have a nice halo when it comes to sustainability, but I have yet to see a carbon footprint on a package,” Mr. DuBois said. “There is a halo there, but I can't tell you if it's true. I, personally, have not seen it measured yet.”

Mr. DuBois set the ceiling for plant-based meat alternative sales at 2% of retail meat sales.

“If they simplify the ingredient list it may be one or two percentage points higher,” he said. “Meat alternatives are going to be niche products for a long time.”

That means there is going to be a shakeout among competitors in the category.

“We're going to find out which brands have built the right to be in the case,” Mr. DuBois said. “The market is sizable with $1.4 billion in sales in the US between fresh and frozen, but there are a lot of brands. Some brands will live beyond this, but not all of them are going to live.”

So-called ‘edibles’ might be infused with dangerous delta-8 THC marijuana

By Dan Flynn on September 15, 2021

The marijuana-infused foods known as edibles are among the cannabis products possibly containing Delta-8 THC and causing “adverse events.”  The federal Centers for Disease Control and Prevention blasted out an official Health Advisory, joined by the Food and Drug Administration.

It warns of danger because of the increased availability of cannabis products containing delta-8 tetrahydrocannabinol (THC), which the warning agencies say is because of  insufficient labeling of projects containing THC and cannabidiol (CBD).

The danger comes from Delta-8 THC intoxication, which may include the following symptoms:

• Lethargy

• Uncoordinated movements and decreased psychomotor activity

• Slurred speech

• Increased heart rate progressing to slowed heart rate

• Low blood pressure

• Difficulty breathing

• Sedation

• Coma

Cannabis plants have several “isomers” — a certain type of molecule — with most often referring to the delta-9 THC. Delta-8 THC exists naturally in cannabis plants in only small quantities with 50 percent to 75 percent of the psychoactive punch as delta-9 THC.

Delta-8 THC and delta-9 THC and other THC isomers also come from the synthetic conversion of CBD, which isn’t naturally psychoactive.

“Delta-8 THC products are increasingly appearing in both marijuana and hemp marketplaces, some of which operate legally under state, territorial, or tribal laws,” according to the official CDC Health Advisory. “Most states and territories permit full or restricted hemp marketplaces that sell hemp and hemp-derived CBD products.”

“Products sold as concentrated delta-8 THC are also available online. Delta-8 THC products are sometimes marketed as “weed light” or “diet weed,” the advisory says.

“The health effects of delta-8 THC have not yet been researched extensively and are not well-understood. However, delta-8 THC is psychoactive and may have similar risks of impairment as delta-9 THC.4 As such, products that contain delta-8 THC but are labeled with only delta-9 THC content rather than with total THC content likely underestimate the psychoactive potential of these products for consumers.

“In addition, the sale of delta-8 THC products is not limited to regulated marijuana dispensaries in states, territories, or tribal nations where marketplaces operate under the law. Rather, delta-8 THC products are sold by a wide range of businesses that sell hemp. As a result, delta-8 THC products may also have the potential to be confused with hemp or CBD products that are not intoxicating. Consumers who use these products may therefore experience unexpected or increased THC intoxication.

“A wide variety of delta-8 THC-containing products have entered the marketplace, including, but not limited to, vapes, smokable hemp sprayed with delta-8 THC extract, distillates, tinctures, gummies, chocolates, and infused beverages,” the warning adds. “In addition, because testing methods for products like synthetically derived delta-8 THC are still being developed, delta-8 THC products may not be tested systematically for contaminants such as heavy metals, solvents, or pesticides that may have adverse health effects.”

CDC reports syndromic surveillance data from emergency departments participating in its National Syndromic Surveillance Program (NSSP) show an increase in delta-8 THC reports. More than 4,400 active emergency facilities in 49 states and Washington D.C. participate in the NSSP.

The NSSP picked up the first report involving delta-8 THC in September 2020 with monthly increases since. From Jan. 1 to July 31 this year the National Poison Data System (NPDS) has recorded 660 delta-8 exposures.

Eighteen percent of those exposures required hospitalization, and 39 percent of patients were younger than 18 years of age.

The CDC said one report of “two cases of severe adverse events to delta-8 THC in two children who ingested a parent’s delta-8 THC-infused gummies purchased from a vape shop. Both children experienced deep sedation and slowed breathing with initial increased heart rate progressing to slowed heart rate and decreased blood pressure. The children were admitted to the intensive care unit for further monitoring and oxygen supplementation.”

A spokesman for the pro-marijuana group known as NORML blamed the rise of delta-8 THC on marijuana policy conflicts that have left gaps in access to traditional cannabis products.

NORML’s Paul Armentano gave this quote to Marijuana Moment, a news site covering the cannabis industry: “We share some of these agencies’ concerns regarding the unregulated nature of these grey-market products. Of course, the artificial market demand for these products is largely an outgrowth of marijuana prohibition. Were whole-plant cannabis available legally, consumers would have little to no interest in experimenting with these unregulated imitations. But, absent widespread regulated access to cannabis, these unregulated producers and distributors are all too happy to fill this void.”

Chobani begins moving away from plastic with paper cup

Chobani, LLC

08.27.2021

By Kristen Putch

NEW BERLIN, NY – Chobani announced this week it is taking a big step toward a more sustainable future by launching a paper cup for its yogurt products.

Chobani's paper cup marks a milestone in efforts to reduce plastic use and put more sustainable packaging on shelves across America.

Chobani's new product innovations – oatmilk, cold brew coffee and coffee creamers – already come in paper-based packaging that is recyclable. After two years of development, the company will move its oat yogurt into a paper-based cup. The company said it will continue exploring more sustainable packaging across our portfolio that will use less plastic and more paper.

"We all have a role to play in protecting our planet," said Chobani founder and chief executive officer Hamdi Ulukaya. "People have been asking for a paper cup, and we welcome this challenge to start reducing our plastic use, and to spark a conversation about how we can drive change together."

Chobani's paper cup is 80% paperboard, made from responsibly sourced and renewable material. The cup has a thin plastic lining to maintain the quality of our product.

"While this paper cup is a step in the right direction, it's just the beginning," said Ulukaya.

The cup will be made of recyclable materials, but we're realistic about the complexities of American's recycling system, which is fragmented across more than 10,000 municipal-run recycling centers, each with unique rules.

Innovative packaging often challenges the current recycling capabilities across the US. The company said it will continue collaborating with partners, including the Sustainable Packaging Coalition, and policymakers to advocate for improvements that expand the recycling infrastructure in this country.

Consumers will start to see Chobani's paper cup in the yogurt aisle at the end of this year. It will begin with single-serve Chobani Oat Blend and will continue to invest in sustainable packaging initiatives across its product portfolio.

Arctic Zero goes plant-based Arctic Zero non-dairy frozen desserts

Photo: Arctic Zero
08.20.2018 By Monica Watrous

SAN DIEGO — Low-calorie ice cream brand Arctic Zero is joining the plant-based frozen dessert fray with the launch of nine options made with faba bean protein. The company said it has reformulated its original line of lactose-free, whey protein-based frozen desserts to accommodate dairy-free diets. Flavors include chocolate peanut butter, salted caramel, cookie shake, chocolate, cake batter, brownie blast, cookie dough chunk, mint and cherry chocolate chunk.

“We created the original Arctic Zero so that people with restrictions like lactose intolerance, low-sugar and low-calorie diets could enjoy a delicious frozen dessert without junk ingredients like erythritol and other sugar alcohols,” said Amit Pandhi, chief executive officer of Arctic Zero. “True to our founding promise, our new plant-based Arctic Zero Non-Dairy contains the cleanest, premium ingredients we could source including faba bean protein. We’re confident our longtime fans also are going to love the change. Arctic Zero Non-Dairy pints have a much stronger, richer flavor that really wows and a creamier texture than ever.”

The products contain 160 to 320 calories per pint and are sweetened with organic cane sugar and monk fruit. The company said it experimented with dozens of sources of plant-based protein before landing on faba bean protein, which has a smoother, sweeter, richer flavor than many other plant proteins, according to the company.

Arctic Zero Non-Dairy pints will debut nationwide this fall, joining Arctic Zero Light Ice Cream, which was introduced earlier this year.

Instore departments, suppliers target kids instore, 8/13/2018 by Andy Nelson

Designed for adults, loved by kids

In March, La Farge, Wisconsin-based Organic Valley added  a grab ‘n go snack line to its product roster.

Organic Valley Snack Kits from Organic Valley, the largest U.S. organic farmers’ cooperative, feature cheese, crackers and meat in one pack. The line includes three varieties: sharp cheddar and summer sausage; pepper jack and summer sausage; and mozzarella and roasted garlic summer sausage.

The packs were designed with adults in mind, says Ellie France, Organic Valley’s brand manager for Meat, Snacks and Prepared Food. “We wanted to deliver premium, organic snacking to busy adults on-the-go,” France says.

The product tested great and, in its two months on the market, has generated lots of positive comment from that target demographic group, France says. But Organic Valley also has received unexpected feedback of a different kind. “We’re now hearing reports about adults purchasing these kits for their children for lunch, for snacks after school,” France says. 

While Organic Valley didn’t design the Snack Kits specifically for kids, the company did make it easy for all consumers to enjoy it, France says. “The tray is easy-open, and each compartment includes finger holes for easy access to the meat, cheese, and crackers,” she says. “No more dumping the tray over to get all the food out.”

The packs, which retail for a suggested $4.99, have 230 or fewer calories, pack 13 or 14 grams of protein and have nearly 40 percent less sodium than other, similar packs.

France says consumers are telling them how happy they are  to have an organic snack option that includes meat, cheese and crackers.  “And the quality is especially good,” she adds. “Our summer sausage is the best-selling organic sausage in the U.S., and our cheeses also regularly win awards for flavor and quality.” In addition, Organic Valley partnered with a top artisanal cracker maker for a “really excellent” stone-ground organic cracker, she says.

White Plains, New York-based  Sabra Dipping Co. is focused on positioning its grab ‘n go hummus and guacamole products, which come with pretzels, pita chips or tortilla chips, as convenient, better-for-you snacking options for the whole family, says Ryan Saghir, the company’s director of digital marketing.

Sabra Snackers and Sabra Singles are two such products that have been a hit with kids, Saghir says. “Sabra Snackers are great as a mid-day snack that will keep you going and you don’t have to feel bad about enjoying,” he says. “Sabra Singles are a convenient accompaniment to any lunch box, for both parents and kids alike.”

And there’s big room for growth in the category, Saghir says —for many consumers, hummus is still foreign territory. “Surprisingly, there’s still a lot of people in the U.S. that have not tried hummus,” he says. “Once parents see how much their kids love our hummus, it becomes a wholesome and delicious snack that the whole family can enjoy, especially with fresh veggies and delicious pita bread.”

Report: traditional stores down 25 percent by 2021 instore, 8/31/2017 by Andy Nelson

The number of traditional supermarkets will decline by 25 percent from 2016 to 2021, according to a new study.

At the other end of the spectrum, meanwhile, eCommerce sales are expected to increase by 25 percent each of those five years.

In 2021, about 19,132 traditional stores will be in operation, down from 25,380 in 2016, according to “2017 Future of Food Retailing,” a report by Long Grove, Illinois-based Inmar Willard Bishop Analytics.  

The biggest percentage increase in the grocery category will be seen in fresh format, which could jump 48%, from 1,547 to 2,290 stores, according to the report. Store counts also are expected to be up significantly for super warehouses (30 percent), dollar stores (25 percent) and limited assortment stores (21 percent).

The number of supercenters could jump 11%, from 4,106 to 4,560. Wholesale club stores could total 1,613, up 9.6 percent from 1,472 in 2016, according to the report.

While eCommerce sales are expected to grow at an annual rate of 25 percent, limited assortment is set to grow 8 percent, fresh format 4.8 percent, super warehouse 4.5 percent, supercenter 3.1 percent, dollar 3 percent and wholesale club 3 percent.

Traditional supermarket sales are expected to decline .3% annually through 2021.

Organic items appear in 82% of American households March 27, 2017 - by Jeff Gelski

WASHINGTON   — A Nielsen survey revealed organic items were found on the shelves of kitchen cupboards and in the refrigerators of 82.3% of American households in 2016, the Washington-based Organic Trade Association said March 23. The national average climbed 3.4% from 2015 to 2016.

North Dakota had the highest jump, increasing 14.2% from 2015 to 2016 to reach 85.6% of households. Following North Dakota in the ranking of biggest increases were Rhode Island, up 12.3% to 88.3%; Wyoming, up 10.8% to 90%; South Dakota, up 10% to 68.9%; and Wisconsin, up 9.1% to 77.6%.

The nationally representative Nielsen study involved 100,000 households in 48 states and did not include Alaska or Hawaii.

Laura Batcha, c.e.o. and executive director of the Organic Trade Association

“These new findings show how important organic has become to millions and millions of American families everywhere — to more than 80% of our nation’s 117 million households, more than 80% of Georgia’s 3.5 million households, more than 85% of North Dakota’s almost 300,000 households,” said Laura Batcha, chief executive officer and executive director of the Organic Trade Association. “The organic community is looking forward to working with the new leadership at U.S.D.A. We are eager to show how important adequate funding is to support a strong organic program and to help organic to continue to become a part of healthy diets of households throughout our nation, including Mr. Perdue’s home state and rural states from coast to coast.”

George E. (Sonny) Perdue, a former governor of Georgia, has been nominated to be the next secretary for the U.S. Department of Agriculture. The number of households in Georgia buying organic climbed 4% from 2015 to 2016, reaching 81.5%, according to the Nielsen survey.

“The industry relies on a few critical public institutions to support this burgeoning industry, including the (U.S.D.A.’s) National Organic Program for global oversight and uniform standards and research investment targeted to organic production,” Ms. Batcha said. “Organic is fueled by consumers, and it thrives when U.S.D.A. recognizes the importance of organic to rural economies and to rural households.”

Total organic food sales in 2015 were $39.7 billion, up 11% from 2014, according to the O.T.A.’s 2016 U.S. Organic Industry Survey. This spring the O.T.A. will release is 2017 survey, which will examine the U.S. organic market in 2016. 

The egg industry has an overproduction problem Dec. 13, 2016 - by Ron Sterk

KANSAS CITY — Large, Grade A eggs were featured at 49c a dozen by a major Midwest supermarket chain in early December. The average wholesale price for large eggs quoted by the U.S. Department of Agriculture as of Dec. 2 was 45½c a dozen in the Midwest, the lowest of the four regions reported. Neither price would cover the cost of packaging and transportation, one industry source said. It is evidence of the deep problem the egg industry is having getting production under control.

October production of 7,506 million table eggs was the highest for any month since February 2015, two months before laying hen numbers began declining sharply because of an outbreak of avian influenza last year, according to the latest U.S.D.A. Chickens and Eggs report. October 2016 egg production was up 11% from October 2015, when flocks were being replenished, and was up 1% from October 2014, prior to the A.I. outbreak.

The oversupply of eggs has been reflected in prices since April, when average Grade A large egg prices dipped below 60c a dozen and breaking stock (used by processors to derive liquid, frozen and dried whole egg, yolk and white) fell to near 30c a dozen, both the lowest values since October 2010. Since April average Grade A large egg prices have fluctuated between 37½c to 77½c a dozen. Graded egg prices briefly moved higher when grocers featured eggs at low prices, only to move lower once the features were over. Breaking stock egg prices kept falling since April and have been under 20c a dozen since late July, which is well below cost of production.

October production of 7,506 million table eggs was the highest for any month since February 2015.

Typically, when egg prices fall below cost of production, producers adjust flock sizes by putting some hens into forced molt or by culling older, less productive birds. And, processors historically have bought up low-priced eggs shifted from retail and built inventories for when prices move higher, in effect carrying the risk of oversupply. Neither appears to have happened to a significant degree this year.

One scenario suggested by industry sources is a number of egg producers added facilities and laying hens, to comply with new cage-free requirements that several major restaurant chains and food manufacturers said they would move to over the next several years. That production came on-line sooner than expected (or needed), and at least in some cases was not countered by a reduction in the number of hens housed in traditional “battery cages,” thus resulting in more eggs. Others have suggested the cost of rebuilding flocks after the A.I. outbreak discouraged culling of birds. And some indicated disposal options of culled hens may have been limited by the massive disposal during the A.I. catastrophe. Also, low feed prices have helped to reduce breakeven costs for egg producers.

Processors, meanwhile, have been reluctant to buy cheap eggs because they lack confidence that prices will move significantly higher and stay at those higher levels as long as egg production exceeds demand. Processors that are part of vertically integrated operations have taken on extra supply, but independent processors have tended not to build inventories just because eggs are cheap.

When egg prices fall below cost of production, producers adjust flock sizes by putting some hens into forced molt or by culling older, less productive birds.

The most significant issue appears to be on the demand side, especially from food manufacturers who use egg products. Many were forced to switch to egg and egg product replacers because of egg shortages and record high prices during the A.I. outbreak. Some of that business never came back to real eggs, while the supply of real eggs and egg products has fully recovered. Thus, egg production and supply has not adjusted to lower demand.

There may be some light at the end of the tunnel, although most industry sources expect it will be only temporary until producers get serious about reducing flock sizes. Egg prices turned modestly higher last week and typically see increased retail demand from Christmas baking in December. Further, producers also tend to move more birds into forced molt at the start of the year. Whether that will be enough to turn the tide of overproduction remains to be seen. 

Bimbo to acquire General Mills' Argentina bakery business April 20, 2016 - by Eric Schroeder

The portfolio includes several baked foods including Medialunas — the Argentinian version of croissants.

MEXICO CITY — Grupo Bimbo S.A.B. de C.V. has reached an agreement to acquire the Argentina bakery and food service business of Minneapolis-based General Mills, Inc. Financial terms of the transaction were not disclosed.

The transaction would include General Mills’ bakery and food service business and all associated facilities, equipment, land and inventory in Argentina, as well as employment contracts for the production and salaried staff. The business currently employs about 360.

“Through this acquisition … Grupo Bimbo will continue consolidating its presence in the South American market, complementing its supply in the category of frozen bread that the company is already manufacturing under the Bertrand brand,” Grupo Bimbo said. 

Grupo Bimbo started operations in Argentina in 1995 and is the leader of the bread industry in that country with five plants and a portfolio of products in the categories of bread, buns, tortillas and sweet rolls, among others.

General Mills has operated the bakery and food service business in Argentina since 2001, when it took over the business as part of its acquisition of Pillsbury from Diageo P.L.C. The portfolio includes bread, pastries, small baked foods and Medialunas — the Argentinian version of croissants.

General Mills said it will continue to operate its retail food business in Argentina, including the La Salteña brand.

“We would like to thank members of the Argentina bakery and food service team, who have performed well despite challenging conditions,” said Sean Walker, president of General Mills Latin America. “Having assessed our performance in the current business environment, we have determined that we need to prioritize other growth opportunities within our Latin American portfolio.”

General Mills expects to complete the transaction by May 2.

The sell-off of the Argentina bakery and food service business continues a strategic decision by General Mills to tighten its portfolio in Latin America. The company late last month exited Venezuela, selling off its Venezuela business to Lengfeld Inc., a private, international investor with a presence in Venezuela. The business primarily manufactures and sells canned meats under the Underwood brand, but it also includes the Rico Jam and Frescarini pasta brands. General Mills employs about 611 people in Venezuela, all of whom will remain with the divested business.