Wednesday, May 31, 2017

From Thrive to alive: Vega cofounder talks health with a modern take


Brendan Brazier wrote the book on thriving. Seriously—his book, Thrive: The Vegan Nutritional Guide to Optimal Performance in Sports and Life, took the vegan lifestyle from the macrame jungle into the mainstream. He followed that with a magazine he called Thrive and will launch a new magazine, Alive, this year. He was also a founder of Vega and could be considered a pioneer of the modern plant-based movement.

New Hope Network talked to him about that and about "thrive" as the word of the moment and how the meaning has changed for him and for the world at large.

What does "thrive" mean to you in 2017?
Brendan Brazier: It means being able to do what you want, when you want, how you want, basically not having limitations, physical or mental, that hold you back from achieving what it is you’re trying to achieve. So, of course, people who aren’t thriving, I would say, are ones who get tired easily, need to rely on stimulants like caffeine and sugar to stay awake or have to sleep more, who are less productive. When all those things go away, when you get your mental and physical aligned, then you can truly thrive.

How common do you think it is among people to feel like they’re thriving?
Brazier: I think most people would like to do more thriving, and I think some people feel as though sometimes they’re just getting by, just putting out fires and dealing with the immediate things. To me, thrive also has an element of the future, and I know there’s a lot that’s been made of living in the present, but I tend to think to thrive I like to live a little bit in the future. I like to have that optimism for what the future’s going to bring. I think that’s what helps me to thrive. It’s just an optimistic attitude and spending a fair bit of my head-space in the future thinking about what could be if I do certain things now.

Could we consider the lack of thriving to be basically a condition? An ailment?
Brazier: I suppose you could. I think of it as quite holistic and kind of a general state. But there are certain things specific to lack of energy, for example, or being dependent on caffeine or sugar, or needing to sleep more. Of course, most people want to sleep better so they don’t have to sleep as much. That’s a really appealing thing to a lot of people. If you know how to eat properly and you understand hormones and all that and you can lower your cortisol through stress reduction, you can achieve things like that. I think any one of those could be considered specific but, like I say, generally I think thriving is pretty holistic.

Do you think people have an understanding of that balance between the psychological side and the physical side?
Brazier: Some people do but most don’t. A lot of people just aren’t aware of that connection. They aren’t aware that by cleaning up your diet, you can reduce a very large amount of your overall stress, and therefore the symptoms of that stress.

Can supplements help people thrive?
Brazier: Something we found when we first launched Vega, is that Vega is nutrient-dense, whole food, and it’s going to help you reduce cortisol, but it’s not going to do it overnight. A lot of people, especially people new to the natural health industry, they want results right away. They’re from the drug culture, really. Take a drug and the effect is almost immediate. I think it’s kind of a tough thing because supplement manufacturers want to make something that is going to be noticeable right away, but at the same time you don’t want to have people think too short-term. They need to think that a supplement that may treat their symptom is actually a long-term solution. That can be a challenge because sometimes people aren’t going to stick with it for the time required, which could be several months, in some cases. It can be a little bit tricky to navigate at times.

How does the natural products industry get people to see that holistic approach? What should the message be?
Brazier: Just getting the information out that there are certain things you can do that will help treat your symptoms in the short-term, but long-term, here are some meal plans that are going to help by eliminating other types of foods that cause cortisol to go up, which is what I try and do with my book and, obviously, through Vega as well. Of course a lot of other companies are doing similar things now, so it’s good. I think it’s just making sure people realize it’s a lifestyle. As with exercise, it’s not so much about exercising for six weeks or eight weeks or whatever and then taking before and after pictures. It’s more about consistency and lifestyle as opposed to a program. When people talk about their nutrition program or workout program, they’re usually looking at it in a way that’s not sustainable. Find a plan, find a lifestyle that is sustainable and just stick with it.

Let’s say somebody who hasn’t seen your magazine or hasn’t ready your book asks you "What’s my first step?" Is it nutrition? Is it more about attitude adjustment?
Brazier: It can be more complex sometimes than I’d like it to be. I think nutritionally, just be mindful of adding some good foods. Don’t even think about eliminating the ones that aren’t good right away. Just keep it simple. Perception, too, is a very big thing. You can become mentally unfit just by basically depleting your willpower. If you’re constantly doing things you don’t enjoy, things get harder and harder. Replenish that. Do things you like. It sounds strange, but if people are on a new program and they get home from work, especially jobs they don’t like, and they have to go right into an exercise routine program they don’t enjoy, that’s not sustainable. They’ve got to find things that are going to help them even if they have to just recharge their batteries by doing something they really enjoy even if it’s not necessarily the healthiest thing. If it helps them get up the willpower to approach bigger challenges, like maybe making bigger changes in their diet or maybe changing their career, whatever it is, certain things can really help.

Have you seen a change in awareness?
Brazier: The 10th anniversary edition of Thrive is now out and there’s been a big shift since the original edition. I think people are just better informed, generally. They think more holistically. They feel as though they have more control than they did in the past, which is obviously really positive. They feel that if they make changes, they will see the results and that’s very positive. They don’t feel as much like victims of the modern world. A lot of people are far more optimistic now, and that’s great.

How long is it going to take before people really understand that equation between the price of food and the value of food?
Brazier: I think the folks who shop at Whole Foods are the right place to start, for sure. Getting to people who don’t know as much about food is going to take a while. Twelve years ago, not a lot of people knew about hemp protein, pea protein, rice protein. The demand was for soy and whey. It will take a while, but I think it’s a worthy thing to start on.

Monday, May 29, 2017

Why the voice of business is vital in the fight to advance climate policy


"I had the speaker of the house ... say that the business voice was critical in getting the [legislation] to the finish line ... we need more of these voices." 

—Kristen James, Ceres 

Part 1: The role of corporate advocacy 

Highlights:

  • What is the role of Ceres and the Niskanen Center in affecting policy? 
  • Why getting the economic voice to statehouses could make or break legislative decisions.

-----

Part 2: Take action 

Highlights:

  • The importance of a bipartisan approach when it comes to climate change issues. 
  • Action steps the industry can take to have a voice. 

This session—A Climate Day Policy Discussion—was recorded at Natural Products Expo West 2017. 

Saturday, May 27, 2017

Organic agriculture goes to Washington


As the organic industry breaks the 5 percent barrier (representing 5.3 percent of total food sales in the U.S. in 2016), and penetrates into 82 percent of U.S. households on a regular basis (Nielsen, 2016), industry momentum may reasonably be called a tipping point. Yet, there’s nothing but uncertainty about organics in the nation’s capital. With a proposed budget that reduces funding to the National Organic Program (NOP), presidential antagonism toward regulation, brand-new secretary of agriculture Sonny Perdue and a new farm bill in the works, the parts and pieces of federal support and oversight are difficult to puzzle together.

The Organic Trade Association gathered members in Washington this week to voice concerns to elected officials. May 24 was a day of policy presentations and discussion, followed by a May 25 advocacy day, bringing industry representatives face to face with elected ones.

Keynotes and breakouts at the OTA event featured industry experts, a Pew Research Center survey researcher, political staffers and four influential officials, including freshmen congressmen Jimmy Panetta (D-California) and John Faso (R-New York), both of whom serve on the agricultural committee. Eighth-termer Tim Ryan (D-Ohio) also took to the stage, and the day closed with Ray Starling, special assistant to the president for agricultural, trade and food assistance. “A member of the Trump administration may be the last person you'd expect to see on stage today,” Starling joked from the stage, “and, indeed, I’m the last person you’re seeing today.”

While there was near-unanimity among presenters that the proposed budget will not pass in the present iteration and that agriculture is in good hands with Sonny Perdue, there was also unanimity, it seemed, that there are no clear signs of what’s ahead for organics in a tumultuous political climate.

 

Make America organic again

Highlights of the politicians’ presentations include Tim Ryan who, calling access to healthy food a social justice problem, spoke of breaking down departmental silos. He's even written a book on it. 

The congressman believes many of today’s issues can be addressed with singular actions. “School doesn’t have to suck,” he said. He was using school gardens as a cross-silo example that could feed children healthier food and seed the possibility of a future in agriculture at the same time. “It can actually be fun. Kids will be like, ‘I was playing in the soil today!’

“Oh and by the way,” Ryan continued, “we’re taking care of our education problem, we’re taking care of our health problem.” The congressman also supports subsidies, like a premium for growing organics built as a health care subsidy and subsidies for urban agriculture. “We’re knocking down houses,” he said. “How do we get wealth and jobs and investment in these communities?”

Starling gave a sincere plea for the success of farmers. He spoke of three key areas: trade, labor and regulation. “The president is open to negotiate and renegotiate trade and do that with agriculture in mind,” he said, adding that “agriculture’s gains on trade are not going to be given up or traded for other sectors. To use the president’s language: ag already helps us win and we just need to continue to win.”

Starling received applause for his statement about organic equivalencies. “We don’t want trading partners to use their organic standards as a trading point,” he said. “It’s not just about market access, it’s about process and standards that may put our farmers at a competitive disadvantage.” Of the USDA seal, Starling said, “The last thing we want is to allow others to loot that label. If they want to earn it, welcome to the table. But do not water it down.”

Starling’s second stated priority is to provide farmers with a reliable, affordable labor. “Those of us in agriculture know,” he said. “We need relief.”

His last call was to reduce “the regulatory onslaught.” In place of applause, this was received with concerns about the watering down of NOP standards. Starling clarified that those were not the regulations in question. He did not have comforting words about budget cuts to the NOP, however, calling for a "do more with less" approach to improving the program.

Starling spoke of his youth on a farm in North Carolina, where his parents put him and his two brothers through college on a single farm’s income. “That same farm would not put three kids through college today. We’ve got work to do. I recognize that. I believe the president recognizes that.”

And it just might be the rural economic development angle that can preserve organic’s support in the federal government.

 

Uncertain future

The question for the organic trade may be whether the industry has developed the political clout to be protected.

“We don’t know whether we’re being led quietly to slaughter or whether we’re really being honored when people say that Sonny’s on our side and Trump really believes in rural economic development and that organic’s a big driver of that,” Alan Lewis, who navigates government and regulatory affairs for Natural Grocers, reflected after the conference.  

And, while OTA prepared talking points stating that organic hot spots kick-start rural economies and organic farms are 35 percent more profitable than conventional, organic agriculture may not be the most compelling rural economic development story from President Trump’s seat. Broke farmers unwilling to let go of the safety net of crop insurance and subsidies may not be eager to take on the costs of transitioning to organics. Mr. Trump may not find organics on the tongues, so to speak, of his rural supporters who, says Lewis, find “that just getting more food planted in the ground is sometimes more important than demanding it’s 100 percent organic.” And they’re 95 percent of the ag industry.

5@5: Organic beauty boom | Whole Foods to open first restaurant


What's driving the billion-dollar natural beauty movement?

As more consumers shun chemical-filled cosmetics in favor of plant-based alternatives, opportunity grows for companies in the better beauty category, and those looking to get into it. Sephora is pursuing an expansion of its natural product offering, while Birch Box's skin care division grew 10 to 15 percent last year. Younger millennials concerned on environmental impact and older people focused on health benefits are two key demographics, according to NPD Group. Read more at Fast Company...

 

Whole Foods to open free-standing restaurant in Midtown June 1

The Roast will be a full-service, fast-casual Brazilian restaurant adjacent to Whole Foods' renovated and expanded retail location in Atlanta, opening next week. A rotation of local chefs will collaborate to create seasonal signature bowls. Read more at Atlanta Journal-Constitution...

 

Impossible Foods cooks up a new paradigm for the food system

Rebekah Moses, sustainability and agriculture manager of Impossible Foods, talks about how the idea came about for the Impossible Burger, and how the meatless industry is evolving. Read more at Green Biz...

 

Pepsi experiments with new protein sources, such as mealworm powder

The company is apparently seeking "new and novel protein sources for usage in their snacks and beverages," including plant- or insect-based proteins. Read more at PSFK...

 

Unilever sued over 'natural' claims

A new class action lawsuit alleges that Unilever's personal care division used the term "natural" on shampoo, conditioner and body wash products that contain synthetic ingredients. Read more at Legal NewsLine...

This week: Rodale hires chief growth officer | Algaia, AIDP partner for distribution of marine ingredients

Rodale Institute today announced that Jeff Tkach has been named chief growth officer, effective July 1. In this newly created role, Tkach will lead a comprehensive development program that includes marketing and communications in addition to fundraising initiatives. Prior to joining the Rodale Institute, Tkach served as managing director, vice president of Rodale’s Organic Life and Prevention at Rodale Inc. where he led efforts across print and digital advertising, sales and marketing functions, digital, live events and e-tailing components. Jeff also spent time as vice president of sales and marketing at Life Time Fitness and also served as group publisher at Active Interest Media from 2013-2015, overseeing Yoga Journal and Vegetarian Times. 

Kettle chip brand Boulder Canyon Authentic Foods continues to reimagine classic flavors using clean ingredients. Its latest is an updated take on the barbecue chip called Coconut Oil Mesquite Barbeque, which joins its existing line of coconut oil-cooked chips that includes Pineapple Habanero and Sea Salt.

Quantum Nutrition Labs' line of whole food, herb-based and once-living supplements are now available to retail outlets. "It has been our mission to become the industry leader in promoting the highest quality, stearate-free, quantum-state nutritional products”, says cofounder and CEO Dr. Linda Forbes, "and we look forward to this next phase of our business model."

For the third consecutive year, Firmenich received a Gold rating from EcoVadis, establishing the company among the top 1 percent of all suppliers assessed on their sustainability performance, as well as the leader in the fragrance and flavor industry.

Algaia and AIDP announce their entry into a distribution partnership to market Algaia’s alginates and other specialty marine-based solutions to customers in Canada, USA and Mexico.

Almond Pro is re-releasing its High Protein Almond flour with re-designed packaging. It contains twice the protein and 65 percent less fat that traditional almond flours through a pressurization method. 

Jarrow Formulas announced the release of MCT Oil softgels (180 count per bottle) that offer consumers a convenient on-the-go delivery method and provide 1000 mg of MCT oil per softgel. Jarrow Formulas MCT oil contains higher amounts of C8 and C10 with minimal lauric acid (C12) when compared to other conventional MCT oil products and standard coconut oil. 

The B2B platform Forager, designed to accelerate local food economies, announced that it has secured a new round of funding from Coastal Enterprises Inc. in Maine. Forager's new online and mobile procurement-to-payment platform aims to radically simplify the sourcing process, saving time and significant costs, and enabling grocers, food co-ops, farmers and producers to offer more local products to consumers. Paris, France-based Algaia specializes in a wide range of algae-based ingredients. The growing company boosted its product offerings at the beginning of this year through its acquisition of Cargill’s alginates business and manufacturing plant. 

Friday, May 26, 2017

Retailers can differentiate by taking steps to mitigate climate change


"Our entire industry in food is dependent on a stable and predictable climate, so it is absolutely a [business] imperative." 

—Sheila Ongie, National Co+op Grocers

Part 1: Higher level commitments 

Highlights:

  • Where retailers have the most material impact on mitigating climate change. 
  • Climate leadership is an important point of differentiation that can set retailers apart. 

-----

Part 2: Value propositions in sustainability

Highlights:

  • What retailers are hearing from consumers about climate concerns. 
  • How retailers can give incentives to brands that are taking climate action. 

-----

Part 3: Supply chain transparency and educating consumers

Highlights:

  • What's an ask for brands from retailers in order to step up and improve their practices? 
  • Crosspromotional ideas that can help communicate the message to consumers.

 

This session—Why Climate Matters: Retailer Roundtable—was recorded at Natural Products Expo West 2017. 

 

The birth—and near death—of an earth-saving, Shark Tank-earning business


"I knew if I needed to get anywhere ... I needed to create something—create an idea—something tangible, something that inspired people and something that can help the world." 

—Benjamin Stern, Nohbo

Highlights:

  • How Stern came up with the brilliant idea behind Nohbo.
  • The experience of being on Shark Tank and how it shaped Stern's journey.  

This session—Walking Before You Run—was recorded at Natural Products Expo West 2017. Click "download" below to access the presentation slides. 

Navigating funding sources: From crowdfunding to private equity


"I think it's a really exciting time to be an entrepreneur. I think it's a really exciting time to be thinking about raising capital." 

—Bill Shen, Enore Consumer Capital

Part 1: Accelerator program funding

Highlights:

  • SKU's Shari Wynne Ressler describes how SKU works and what acceleration programs can do for brands.  
  • What investors want to know from emerging brands. 

 

-----

Part 2: Venture capital funding

Highlights:

  • Accel Foods' Jordan Gasper gives an overview of the venture fund model of investment.
  • What are venture funds like Accel Foods looking for in a company or brand? 

-----

Part 3: Crowdfunding and alternative funding sources

Highlights:

  • Wild Friends Foods' Keeley Tilotson talks crowdfunding, alternative fundraising and Shark Tank
  • How Tilotson balances being an entrepreneur, a founder and a fund-raiser. 

-----

Part 4: Angel investment communities 

Highlights:

  • Slow Money Institute's Arno Hesse discusses value-driven angel investors and how the landscape is changing. 
  • Four current "hot buttons" in Slow Money Institute's community. 

-----

Part 5: Private equity funding, Q&A 

Highlights:

  • Enore Consumer Capital's Bill Shen describes the "grey areas" in the world of private equity. 
  • What is the methodology and mindset for private equity and venture capital investors?

 

This session—Demystifying the F Word: Navigating the Funding Relationship—was recorded at Natural Products Expo West 2017. 

5@5: An urban farming uptick | How Now Foods grew a healthy business to $400M in sales


A farm grows in the city

More than half of the world's population lives in urban areas, and that percentage continues to grow. So, in old warehouses and on rooftops, startups are finding ways to grow food closer to home, all in the name of better utilizing resources and cutting down on food miles. But it's neither easy nor cheap—a few companies have already failed, while others are still working to turn a profit. Some cities are also trying to propagate more urban farms. Read more at The Wall Street Journal...

 

Made in Nevada: Now Foods

Thirty-three years of consecutive growth were sparked by a customer complaint at a health food store in 1968, according to Now Foods' CEO. When a customer called then-retailer Elwood Richard a "dirty robber" for pricing a particular item higher than a nearby competitor, he decided to create his own line of products that were affordably priced. Today, Now Foods does annual sales of about $400 million. Read more at Kolo 8 News Now...

 

The rice industry is furious at the existence of 'cauliflower rice'

Is mayonnaise really mayonnaise if it doesn't contain eggs? What about milk that's made from almonds or cashews or soy? There may be yet another food identity crisis in the works over a trendy vegetable—cauliflower rice. Now that a handful of companies have created frozen packaged products that contain so-called riced vegetables, the rice lobby is fighting back. "Calling ‘riced vegetables’ ‘rice,’ is misleading and confusing to consumers," according to Betsy Ward, president of USA Rice. "We may be asking the Food and Drug Administration and other regulatory agencies to look at this." Read more at Quartz...

 

Five startups win accelerator backing to fight food insecurity, waste and unsustainable food systems

Launched last year, an accelerator program called The Good Kitchen helps social startups addressing food insecurity and poverty issues grow their businesses. Its first cohort includes a company using upcycled food waste to grow insects to be used as feed, a tech company developing a food freshness checker and more. Read more at Ag Funder News...

 

Walmart's online sales soar as retail giant pursues Amazon

E-commerce sales saw their fastest growth in five years as Walmart makes ambitious efforts to grow its online business. Read more at Bloomberg...

Summing up biological synthetics


There isn’t really a fine line between the genuine and the synthetic, but that doesn’t make that line easy to see, says Jim Thomas of Montreal-based ETC Group, a consultancy calling out synthetic biology ingredients in everything from food and cosmetics to supplements.

With the rapid, and some would say “reckless” rise of synthetic biology allowing virtually any ingredient can now be designed and manufactured in a lab, but Thomas says he expects much of the activity to focus on high-value/low-quantity ingredients that make up so much of the supplement trade. We spoke to Thomas at the United Natural Products Alliance Members Retreat, now underway in Santa Fe, New Mexico.

Synthetic vitamins are a huge component of the supplement industry. How are biosynthetics different from that?

Jim Thomas: Synthetic biology is just a new way of producing compounds, including compounds that were previously botanical compounds. What you're doing is you're engineering yeast bacteria, algae, to act as a sort of manufacturing platform. So that the yeast will produce, let's say Resveratrol, or CoQ10, or whatever. And that previously would have been sourced from a botanical source. There's definitely work around vitamins and up regulating the amount through produced genetic engineering. And so that that application is there too.

What do you think the level of public awareness of biosynthetics is right now?

JT: Very low. I think the public has some level of awareness of the first generation of genetic engineering as it applies to food, and consumers are beginning to hear about some of the new techniques, such as Crisper. But, generally speaking, they're not aware of how widely this technology is being applied to foods, flavors, fragrances, ingredients.

It obviously can't be stopped. Can it be slowed down?

JT: Definitely it can be slowed down. What we're seeing already are companies who are saying they're not going to use syn-bio ingredients for a number of reasons. And organizations, such as the Non-GMO Project, are saying that they're not going to certify ingredients that use the synthetic biologicals. In that case, it's about 40,000 different brands. And I think there are very big questions to ask about whether this reflects the values and what the public is looking for. The public has made clear that they want natural. Some companies are trying to pass off synthetic biology ingredients as natural, but that's not going to wash. It's not going to wash legally, and it's certainly not going to wash in terms of public relations.

How pervasive is this in supplements?

JT: It's hard to gauge at this point. And we produced a database, where we put details of where we were able to find either products on the market, companies who are saying they're bringing syn-bio products to the market, or research projects. We found about 350 different entries. We reckon there's around 70 to 75 ingredients that are already on the market across cosmetics, supplements, flavors, fragrances. But it's really hard to tell. Companies are not advertising this. They're not making it a selling point. If they're using synthetically derived versions, especially if they're trying to pass it off as natural, that's not something they're going to shout from the rooftops about.

Nobody's really watching this except people like the Non-GMO Project and the ETC group?

JT: That's right. At this point.

What do you think is the biggest danger for the natural products industry?

JT: I think for the natural products industry, the danger is that this industry will increasingly use these synthetic products, it'll be found out, and people won't trust them. People believe that natural products are what they say they are, that they come from botanicals, for example. And additionally, I think there are potentially risks, including health risks. If you're producing a compound from a genetically engineered organism, there is a chance that you're going to get other unexpected contaminants, that you're going to get different levels of other compounds as a result of the genetic engineering. At the moment, there aren't processes in place to catch that. There are in the case of drugs. If you're making biologics, then hopefully you'll catch contaminants, but if you're making flavors, fragrances, supplements ingredients, you might not pick that up.

What will it take to create an urgency around this?

JT: Hopefully what it will take is the supplements industry stepping up to protect their reputation, to protect their consumers, and actually to protect their farmers, their suppliers. This is an industry that depends upon farmers around the world, especially tropical farmers, and around biodiversity and all of those are under threat from these new ingredients. Even if a supplement company was to say, “We're going to only use non syn-bio ingredients,” if a synthetic bio ingredient floods the market and pushes down prices, that could potentially destabilize the natural supply as well. So it's important as an industry to decide we're not going to let this in, that we're going to support natural production, by farmers, by people.

Well since you've been studying this, how have you changed your own habits to avoid anything? Or have you?

JT: I've been listening and talking to companies who are taking this seriously, and I can try and buy their brands and products, because I can trust them. I'm probably eating more whole foods, rather than processed foods, because I know where they're coming from. And those would be the two that come to mind.

Q&A: Why you should apply for Chobani’s (equity-free!) incubator


Hamdi Ulukaya's story of how he founded Chobani is legendary in the natural products startup community. After moving to New York from Turkey, he missed the thick, creamy, Greek-style yogurt found in his home country, and thought a lot about bringing this tasty, healthy staple to the U.S. When he stumbled upon an ad for a closed yogurt plant, he felt it was a sign to take the plunge. He bought the factory, employed a skeleton team of five people and spent two years formulating the perfect spoonable snack. Twelve years later, Chobani is a $2 billion company and the leading Greek yogurt maker in the U.S.

Ulukaya’s journey of growing a brand into a household name is the entrepreneurial dream. But it's tough work, and not without its trials and tribulations. To pay it forward, last year Chobani launched a four-month long food incubator that offers life-changing $25,000 grants (read: not investments) to six mission-driven food companies committed to making healthy food more accessible, more environmentally friendly and more socially impactful. Now in its second year, Chobani’s Food Incubator is currently accepting applications until Sunday, June 4 at 11:59 p.m. EDT for the program taking place in New York City from September 2017 to December 2017.

Interested in applying? Here, incubator director Jackie Miller and Chobani incubator participant Ann Yang, cofounder of MisFit Juicery, give us the scoop on program details and how to write a successful application.

How many brands will Chobani be accepting? 

Jackie Miller: We’re looking for six companies for the next class. Specifically, we’re looking for early stage food and beverage product companies. 

Chobani is offering a $25,000 grant to grow businesses without taking any equity. Why is Chobani conducting an incubator if there isn’t a clear monetary incentive for the brand?

JM: I think that’s definitely one of the key differentiators for us. This program is born out of our founder Hamdi Ulukaya’s vision. The incubator is very founder friendly: it’s equity free, and has no strings attached. This program is designed to help food entrepreneurs scale up their companies.

For Chobani, it’s about impacting the food system in the U.S. as a whole. The companies we look for follow our “D.N.N.A.” food philosophy—delicious, nutritious, natural and affordable. The key differentiator in the focus of our program is helping these types of companies grow. Our motto is “Better Food For More People."

What kind companies are you looking for to be a part of the program? Should they be nationally distributed?

JM: When we say early stage, for us that means brands should have a minimum of product in the market with a little traction. They don’t need national distribution, but they should be selling their product with good feedback from retailers and customers.

For example, Banza was in the first class of our incubator and they already had a dozen employees. We think there is some great peer mentorship that comes out of the program. While Chobani offers a lot of access to our top leaders and network of investors and experts, we recognize mentorship is also highly valuable from someone that’s just a few steps ahead of you.

In short, we’re interested in innovative and purpose-driven companies solving problems we care about.

Ann, what was the value of mentorship during your time in the Chobani incubator?

Ann Yang: To summarize, it was absolutely fantastic. It was one of the best things that happened to my company. The first level is understanding how Chobani has been able to use good food practices to scale, and what that looks like. You’re talking to people who are really the best of the best in the [food] industry, and you don’t know what you don’t know until you know it.

On the second level, peer mentorship within the incubator is reflective of the larger work culture at Chobani. It’s a collaborative environment because we’re all operating in a space where there are many broken aspects of the food system. We’re still in touch with the team members and founders and talk often. 

The incubator also showed us what kind of company we want to run. At Chobani, everyone from the manufacturing employees to the person managing brand production to the brand manager are bringing success for the company. That familial feeling is very rare and very special.

What were the greatest gains you experienced with your business by participating in the program?

AY: Chobani helped us understand the order of operations and what to prioritize in our business to scale in a meaningful way. When we were entering the food incubator, we were getting ourselves ready to scale into regional and national retail. Chobani's head of product development helped us with flavor formulations. He helped us identify the best flavor profiles to launch. We also received advice on how to authentically communicate our company mission as we continue to grow. 

In what ways, if any, does the incubator promote diversity within the natural products industry?

JM: This is a personal priority for me. We’re particularly interested in companies founded by women or by people of color. We believe that it's important for us to get out of our corner and host networking events across the country: in New York City, in Boulder and in San Francisco. We’re tapping into small accelerators around the nation to spread the word about our program, from New Orleans to Los Angeles.

The Chobani incubator is all about solving problems. When you have diverse perspectives, it’s easier to solve these problems. This is our top priority.

Any tips you have for companies interested in applying to the program that will help them get accepted?

JM: I encourage people to tell their personal story. What motivated them to start their company? What problems and solutions are they working on? Ultimately, we are looking for passionate people.

This interview has been lightly edited for clarity.

In-store tactics for a thriving community: 3 case studies


It’s a problem affecting people of all ages. It hinders a good night’s sleep. It contributes to stress and anxiety. And it can even lead to a slew of additional complications from eye strain to decreased cognitive performance. "Being hooked on our cellphones—being plugged in and available all the time—is a pretty significant health issue," says Greg Horn, former CEO of GNC and author of Living Well. "The good news is that the strength of the natural retail channel is its ability to educate highly motivated shoppers who are concerned about this issue, but may not be concerned enough to talk to their doctor about it."

Here are just a few ways stores can help their shoppers unplug for better health, and examples from retailers who are harnessing creative tactics to make a difference in their communities.

Encourage getting out into nature
Case Study: Good Harvest Market, Pewaukee, Wisconsin

Good Harvest Market has served its community since 2005 by offering natural, organic and sustainable foods. But its new location, which opened in 2015 and includes a 17-acre nature conservancy, takes holistic wellness to a whole new level.

The store’s cafe features a double-deck, so customers can overlook the conservancy from two levels of patio, explains marketing director Renee Scheer. And because it’s a family-friendly space, people of all ages—from kids to seniors—take advantage. "People can come and relax and have a nice meal, but it’s also not uncommon for people to grab an Adirondack chair and just relax in this beautiful space and enjoy the wildlife," she adds. "It’s about unplugging, chilling and just centering."

So far, the store has utilized the space for yoga classes and bird feeding. But big plans are in the works to build a walkway so locals can access the walking, hiking and biking trail that sits at the rear of the 17 acres. If you ask store owner Joe Nolan, the conservancy also holds potential for some community education. "We certainly don’t want to compete with our local farmers by growing our own food," he says, "but it might be nice to have a living laboratory or greenhouse where we could teach the community about how food grows."

The bottom line is that Nolan wanted to secure this space for future generations and, in the meantime, bring unique health benefits to his community that can’t be found on a store shelf. "It’s about the relaxation of walking in nature. It’s about listening to the birds and watching the wind blow through the trees and leaves," he says. "We all need a green space."

Get happy!
Case study: Wheatsville Food Co-op, Austin, Texas

Educational events are undoubtedly valuable, but there’s also something to be said for events that bring locals out into the community to unplug and just have a good time together so they can focus on their friends and neighbors—and not their phones.

Every year, Wheatsville Food Co-op sponsors a free marching band festival called Honk!TX, "simply because it helps people get together in public spaces and have a good time," says brand manager Raquel Dadomo. "You can’t go to this festival without moving—you are going to shake your butt! It really knits the community together." The marching bands have even entered the store to perform, which spices up any shopping trip with a dose of whimsy.

The store also participates in South By Southwest, which used to bleed into all the city’s neighborhoods but in recent years has centralized downtown. To bring locals out, Wheatsville Food Co-op brought the music to where people live, from a steel drum tutorial to an improv rapper.

"A lot of our shoppers will tell us, I come here when I’m feeling upset or I’ve had a bad day because people are so friendly here and I feel so welcome that it makes me feel good again—we get that a lot," Dadomo says. "Our goal has always been to be the friendliest store in town. And so it’s very important for us to knit the community together and be friendly and fun."

Merchandise and manage with a mission
Case study: Pharmaca, Boulder, Colorado

"So many of our customers come in looking for sleep and stress relief solutions—with everyone’s busy lives, it’s easy to feel maxed out," says Pharmaca’s vice president of marketing, Laura Coblentz. "And the high levels of stress that come with being connected to our phones all the time, whether to work or our families, can take a serious toll on the body."

That’s why Pharmaca launched a new event in each of its 29 stores this April called Find Your Zen: Better Sleep & Stress Relief. Shoppers were able to learn about natural ways to reduce the effects of stress on the body and improve sleep quality. Practitioners recommended herbs and supplements that could tackle specific concerns, but shoppers also learned about the benefits of aromatherapy and even got a relaxing chair massage in-store.

When it comes to merchandising, Pharmaca does so with an eye to unplugging. At the pharmacy counter, "comfy chairs and a free cup of tea make even waiting for a prescription a stress-free experience," says Coblentz. And all relaxation products are merchandised together on the shelf, "including candles, hot/cold wraps and aromatherapy," she adds. "It’s meant to be a one-stop shop for pampering and stress relief."

Coblentz says that putting people at ease has always been a part of Pharmaca’s mission, and that extends to its own employees. The store offers staff a "wellness benefit" which reimburses them for phone-free stress-busters like gym memberships and massages.

 

Private label lifts Sprouts


Despite a unique balance that sees 60 percent of purchases come from the perishable side, predominately non-perishable private label offerings have become key revenue drivers for Sprouts Farmers Markets, officials said.

"We started private label about four years ago as about 5 percent of our overall sales," Amin Maredia, CEO of the Phoenix, Ariz.-based Sprouts said during a presentation at the BMO Capital Markets Farm to Market Conference on Thursday in New York. "But as I mentioned today, 60 percent of our sales in the store are on the perishable side of the business, which has limited amount of private label in it."

Nearly 50 percent of Sprouts baskets arrive at checkout carrying one or more private label items. The product line is on pace to garner $500 million in revenue by year-end, which would account for 12 percent of total sales.

"When we look at our overall sales today, we've gone [up] from 5 percent to 11 percent [across the] overall store, but certain departments of this store are between 15 percent and 20 percent," said Maredia during the event.

He pointed to packaged grocery, dairy, and frozen as areas that are actively expanding private label’s footprint.

"The growth in private label has not only been by more items in the basket but it's by new trial," said President and COO Jim Nielsen. "So, the outlook is good, but we're very objective about the business, it's not just about pure growth of private label penetration. It's about the balance for what the consumer wants."

The success of private label has helped facilitate 40 straight consecutive quarters of positive comparable sales.

In the face of 3 percent deflation during the first quarter ended April 2, Sprouts still managed to notch 1.1 percent comps as total sales rose 14 percent to hit $1.1 billion. Net income remained steady at $46 million but in-store traffic ticked upwards by 0.6 percent.

Along with the positive growth being generated by the store’s private label, both executives believe that their staff and the company’s training methods have helped keep the brand strong during times of hardship for the industry at large.

"Last year we promoted at the store level almost 20 percent of our team members," Maredia said during the presentation. He called employment opportunities at Sprouts a career as opposed to just a job.

"We believe that one of our biggest points in difference is our people," said Nielsen during the presentation. "So we made a very conscious business decision to invest more into training."

Nielsen expressed that in a store that relies so heavily on produce and perishable items-especially during a period of significant deflation- knowledgeable and helpful  sales staff are key to keeping the numbers trending upward.

"You sell natural food," he added. "You can’t offer natural foods on the shelf. We’ve got to educate our team members about the products and help them connect the products to the individual to help them along that happy, healthy journey."


This piece originally appeared on Supermarket News, a New Hope Network sister website. Visit the site for more grocery trends and insights.

Wednesday, May 24, 2017

5@5: Another big food company invests in meal kits | Local, organic school lunch


Campbell Soup invests $10M in meal kit startup Chef'd

Earlier this month we heard about Unilever investing in Sun Basket; now fellow big food company Campbell is making a bet on a startup bringing meal kits to consumers via e-commerce. Campbell invested directly (not through its venture arm) in Chef'd, which partners with chefs and brands like Atkins and The New York Times to turn recipes into meal kits made up of pre-portioned ingredients that are delivered to customers. The investment is part of a Series B round of funding that also includes online grocer Fresh Direct. Read more at Fortune...

 

School district switches to local and organic meals, cuts carbon footprint—and saves money

In 2008, a group of parents at the Oakland Unified School District got together to urge the district to re-think how it was buying the food it served to students; the district, where 73 percent of students qualify for free or reduced lunches, responded by decreasing the amount of meat it was serving and adding locally grown fruits and vegetables to its menus at more than 100 schools. Students also go on field trips to local farms and take cooking classes. Five years later, a study by Friends of the Earth found that food costs—and the district's carbon footprint—shrank. The district is serving as a model for how schools can serve healthier, organic and local food on a budget. Read more at Yes! Magazine...

 

The Future of Whole Foods isn't about groceries

The threat of e-commerce and continuing price wars has been challenging for most food retailers, but what's especially challenging for Whole Foods Market has been boosting profits to please investors without losing its authenticity and commitment to standards and mission. Its current strategy involves cost-cutting, centralized buying and slower brick-and-mortar growth. Read more at Bloomberg...

 

Fig leaves are out. What to wear to be kind to the planet?

Americans spent 14 percent more on clothing and footwear in 2016 than in 2011. While consumers might not often think about it, there are environmental consequences to the chemical and industrial processes that textile manufacturers use to make these products. Many synthetic fibers, for example, are made from oil, a nonrenewable resource, and shed plastic filaments in the wash that can make their way into waterways and into the digestive tracts of grazing animals. Read more at The New York Times...

 

Scientists literally can't figure out how to make all-natural Lucky Charms

When General Mills decided to remove artificial colors and preservatives from its breakfast cereals, it may not have anticipated just how hard it would be to make a natural marshmallow. It's been trying for two years now, with apparently no success. Read more at Grub Street...

Fat-fueled brand Bulletproof takes in $19 million from investors


Bulletproof 360, makers of Bulletproof Coffee and other performance-enhancing food and beverage products, announced today that it raised more than $19 million in Series B funding led by CAVU Venture Partners, the high-profile consumer-focused investment firm led by Rohan Oza, Clayton Christopher and Brett Thomas. Trinity Ventures, an original Series A investor for the brand and an early Starbucks and Jamba Juice investor, also participated in the round. The injection of funding follows an initial $9 million round in 2015, and will support the brand’s high-growth trajectory both in e-commerce and at retail locations.

"For too long, consumers were satisfied with cheap food that tasted good, without much regard for what it was actually made of," said company founder and Chief Executive Officer Dave Asprey. "Now, people are waking up to the idea that food is meant to fuel us, and that what matters most is how your food makes you feel. We raised this round of funding from CAVU Ventures, one of the world’s most innovative investors in the consumer space, to continue leading the way in the performance nutrition revolution. This injection of capital will ensure that people get faster, easier access to the world’s highest performing coffee and food."

CAVU Venture Partners has a strong track record of building successful consumer brands, as well as a high-profile reputation in the food and beverage category. Its founders are known in the industry for success stories including vitaminwater, smartwater and Deep Eddy Vodka. Most recently, the firm saw return on its investment in Bai Brands through its acquisition by Dr. Pepper Snapple Group for $1.7 billion in late 2016.

"Dave Asprey is a visionary and creative disruptor, and we’ve long admired his commitment to bringing high quality food, beverage and supplement products to consumers via the Bulletproof platform," said Rohan Oza, partner at CAVU. "We feel Bulletproof has created a whole new category around products that fuel human performance. We’re excited to partner with Dave and the Bulletproof team to continue the company’s growth momentum."

The funding round comes on the heels of the hiring of Anna Collins as chief operating officer earlier this year. Collins, who joined Bulletproof from Amazon, is responsible for the company’s growth strategy and operations, driving multi-channel growth for the company’s portfolio of products, including the signature Bulletproof Coffee, Brain Octane oil, FATwater, Collagen Bars, Collagen Protein and more.

"Since inception, Bulletproof’s performance-based approach has had an enormous impact on the health and wellness industry," said Dan Scholnick, general partner at Trinity Ventures. "Similarly, CAVU and Rohan have consistently championed products that disrupt the beverage segment with more nutritious and ‘better for you’ alternatives. Bulletproof is all of that and more—so this partnership is not only natural, but also quite powerful. We’re excited to see this latest investment propel the brand and the company to new heights."

In addition to two existing Bulletproof Cafés in Southern California, the brand has plans for a 2017 retail expansion to New York City and other locations yet to be announced. Asprey’s newest book, titled Head Strong, was released on April 4 and is the second Bulletproof book to reach the New York Times bestseller list. The Series B funding supports the brand’s momentum from the first quarter of the year and will aid in its brick and mortar expansion, as well as planned product launches and other innovative developments.

Asprey founded Bulletproof in 2013 after spending two decades and more than $1 million to hack his own biology. Bulletproof continues to provide a range of solutions for consumers to improve their bodies and minds.

Source: Bulletproof 360

Organic sector posts record $47 billion in sales


The robust American organic sector stayed on its upward trajectory in 2016, gaining new market share and shattering records, as consumers across the United States ate and used more organic products than ever before, according to the Organic Trade Association’s (OTA’s) 2017 Organic Industry Survey released Wednesday at OTA’s Annual Policy Conference.

Organic sales in the United States totaled about $47 billion in 2016, reflecting new sales of almost $3.7 billion from the previous year. The $43 billion in organic food sales marked the first time the American organic food market has broken past the $40 billion mark. Organic food now accounts for more than 5 percent—5.3 percent to be exact—of total food sales in this country, another significant first for organic. 

Organic food sales increased by 8.4 percent, or $3.3 billion, from the previous year, blowing out the stagnant 0.6 percent growth rate in the overall food market. Sales of organic non-food products were up 8.8 percent in 2016, also handily surpassing the overall non-food growth rate of 0.8 percent.

The survey also showed that organic is creating jobs. More than 60 percent of all organic businesses with more than five employees reported an increase of full-time employment during 2016, and said they planned to continue boosting their full-time work staff in 2017.

“The organic industry continues to be a real bright spot in the food and ag economy, both at the farm-gate and check-out counter,” said OTA’s CEO and Executive Director Laura Batcha.

“The theme of our conference is ‘Organic. Big Results from Small Seeds’ because of the wide and positive impact of organic,” noted Batcha. “Organic farmers are not just staying in business, they’re often expanding. Organic handling, manufacturing and processing facilities are being opened, enlarged and retooled. Organic farms, suppliers and handlers are creating jobs across the country, and the organic sector is growing and creating the kinds of healthy, environmentally friendly products that consumers are increasingly demanding.”

The popularity of produce and protein

The $15.6 billion organic fruits and vegetables sector held onto its position as the largest of the organic food categories, accounting for almost 40 percent of all organic food sales. Posting an 8.4 percent growth rate, almost triple the 3.3 percent growth pace of total fruit and vegetable sales, organic fruits and vegetables now make up almost 15 percent of the produce that Americans eat.

Produce has traditionally been the entry category for consumers new to organic, in large part because in the produce aisle the benefits of organic are probably the easiest to understand. We touch the fruit or vegetable, smell it, and immediately make that connection between that carrot, for example, growing in clean healthy soils and putting it into our bodies. Across all organic food categories, shoppers are placing high value on freshness and convenience. In produce, grab-and-go salads and ready-to-eat veggies (fresh or frozen), were top sellers.

Consumers in recent years have sought clean products abundant in protein, and sales of organic protein-rich meat and poultry shot up by more than 17 percent in 2016 to $991 million, for the category’s biggest-ever yearly gain. Continued strong growth in that category should push sales across the $1 billion mark for the first time in 2017. Growing awareness of organic’s more encompassing benefits over natural, grass-fed or hormone-free meats and poultry is also spurring consumer interest in organic meat and poultry aisles.

A whole lot of dipping—and seasoning—going on

So what is that organic produce being dipped in and that organic meat and poultry being seasoned with? Organic dips and seasonings, of course!

The organic condiment category isn’t one of the headline organic food categories, but some interesting trends are happening there nonetheless. Organic dips, for one, posted stellar growth in 2016 of a whopping 41 percent, with $57 million in sales. And sales of organic spices swelled by a big 35 percent to $193 million.

Beyond food—sales of organic items outside food section keep climbing

Confirming a trend that’s now fairly established, the OTA survey showed that today’s consumers aren’t just eating more organic, they’re also using more organic products in their wardrobes, their bedrooms and bathrooms and throughout their homes.

Sales of non-food organic products increased by almost 9 percent to $3.9 billion. Organic fiber, supplements and personal care products accounted for the bulk of those sales. Adequate supplies of organic textiles are a continuing challenge in the organic fiber market. However, U.S. organic cotton farmers produced a record 17,000-plus bales in 2016, which should help alleviate some supply concerns.

Increasing consumer awareness that what we put on our body is as important as what we put in our body is driving the growth in organic fiber sales, while a growing desire in transparency, clean ingredients and plant-based products is spurring sales of organic supplements and personal care products.

Challenges to maintain the organic momentum

“Organic products of all sorts are now found in the majority of kitchens and households across our country,” said Batcha. “But the organic sector is facing challenges to continue its growth. We need more organic farmers in this country to meet our growing organic demand, and the organic sector needs to have the necessary tools to grow and compete on a level playing field. That means federal, state and local programs that help support organic research, and provide the organic farmer with a fully equipped tool kit to be successful.”

OTA’s 2017 Organic Industry Survey was conducted and produced on behalf of OTA by Nutrition Business Journal (NBJ). The survey was conducted from Feb. 2, 2017, through March 31, 2017. More than 200 companies responded to the survey. Executive summaries of the survey are available upon request. The full report can be purchased, and online orders can be placed on this page.

Source: Organic Trade Association

5@5: In search of a sustainable food delivery business | General Mills' yogurt problems


VCs hunt for a food delivery business that's sustainable

Investors that have poured millions of dollars into food delivery startups—some of which have recently closed or cut workers—still haven't given up on the difficult business of getting food delivered via an app. They're getting creative about it, backing companies that are targeting certain niches, like Eat Club Inc., which recently raised $30 million to deliver premade lunches to offices, or ZeroCater, which pulled in $4 million to deliver buffet-style meals from restaurants to offices. Read more at Bloomberg...

 

General Mills loses the culture wars

Nine of the top 10 yogurt brands saw sales grow last year. Who's the outlier? Yoplait, which, to the contrary, saw sales slip 23 percent over the last year, according to IRI data. And since it makes up almost one-fifth of General Mills' revenues, it's having a significant impact on the company's performance. Can a new CEO get the business back on track? Read more at Fortune...

 

Will Hy-Vee's grocerant strategy set it apart from rivals?

As part of its recommitment to prepared foods, the Midwest grocer is planning to add several dozen new restaurants to its stores—both sit-down and grab-and-go. Read more at Retail Wire...

 

'Fake it until you make it' and 3 other lessons about success from women entrepreneurs

Approach your goals like you would eating an elephant: one bite at a time. That's just one of the takeaways from Portland Business Journal's "Women of Influence" luncheon. Read more at Forbes...

 

Impossible Foods CEO Pat Brown says VCs need to ask harder scientific questions

A geneticist and the CEO of a high-profile startup that's raised $200 million says it's "truly astonishing" how little due diligence some investors do on the science that underlies some food tech companies. Read more at Tech Crunch...

Leonardo DiCaprio, Strand Equity Partners join ex-BarkThins EVP as investors in Hippeas


Hippeas, a fast-growing natural snack food company, announced today a group of new investors whose equity stake will help the brand continue its explosive growth trajectory. Revenues are on track to more than triple this year.  

Hippeas CEO and cofounder Livio Bisterzo confirmed today that Strand Equity Partners, a leading growth equity fund cofounded by Seth Rodsky, and Leonardo DiCaprio have invested in the company. They join ex-BarkThins EVP and current general manager of Hippeas Joe Serventi, who recently invested in the chickpea snack.

"I'm truly excited that Strand Equity Partners and Leonardo have joined the Hippeas family. As the brand continues to grow with such momentum in the marketplace, it's incredible to bring on board partners who align with our vision and values as a company. We are very enthusiastic to be sharing in this journey with them," says Bisterzo.

"Hippeas is a high-growth and differentiated brand that has been created in a short amount of time," said Seth Rodsky, managing partner of Strand Equity Partners. "The unprecedented traction the brand has achieved is a testament to its unique offering that combines nutrition with a creative flavor profile." 

Hippeas is a new brand of organic chickpea puffs calling all snackers to #GivePeasAChance and try the new "better for you" snack while also "doing good" for the world. Light and crunchy with a serious punch of protein and fiber, Hippeas are low-calorie, certified organic, certified gluten-free, vegan, kosher and non-GMO. With 3 grams of fiber and 4 grams of protein per single-serve, one-ounce bag, Hippeas are the new go-to snack choice for consumers who demand tasty snacks made with high-quality ingredients.

Hippeas believes that "tastes good" and "do good" are two philosophies that should go hand in hand—that’s why they’ve partnered with Farm Africa, a charity working to end hunger and bring wealth to rural eastern Africa. For each pack sold, the brand will donate a portion of sales to support farmers in eastern Africa to grow themselves out of poverty, helping them build a more prosperous life for themselves and their families.

Hippeas is currently sold in over 20,000 stores in the U.S. and UK with customers including Starbucks, Whole Foods, Wegmans, Albertson's, Safeway, Boots, Waitrose, Amazon.com and more. 

From familiarity to ubiquity: Can kale’s rise to stardom be replicated?


Kale is pretty much everywhere. It’s in our soups, snacks and smoothies. It’s a quinoa cohort in steamy side dishes. It’s even vying to oust romaine’s position in the Caesar salad. But prior to 2009, when Brad Gruno first ventured to his local farmer’s market with what would become the popular Brad’s Raw Chips, and Dan Barber’s kale chip recipe hit the pages of Bon Appetit, kale was only to be found in regional Italian dishes and, purportedly, lining the salad bar beds at Pizza Hut (by some accounts, Pizza Hut was the largest pre-boom consumer of kale—without anyone actually consuming it).

By 2012, kale had achieved superfood superstardom, and five years later it still holds a solid position on the charts. This is a true vegetable-next-door, rags-to-riches climb, not the introduction of a rainforest exotic captivating everyone’s attention. But, like any superstar, the throne will eventually be toppled, leading many to speculate about the next kale.

Predictions range from mushrooms to moringa—and maybe even duckweed. But even more interesting is the method for identifying such a rise. Hint: it all comes down to a confluence of forces.

“The key is looking at what the reasons are for kale’s success,” says David Sax, author of The Tastemakers. He points to four elements that recommend kale. “The most important is that kale is the Swiss Army Knife of the brassicas and green vegetables,” he says. “You can eat it raw, you can eat it cooked. It can stand up to pretty much any type of cooking.”

Secondly: production. Kale has a long growing season adaptable to variety of climates. In contrast, Sax points to Arugula. “Some people say arugula is the next kale,” Sax says. “No, arugula’s not going to be the next kale because after a few days arugula turns into a soggy, sloppy mess, you can’t use arugula in hot cooking, and it’s a lot more difficult to grow.” Then there’s the cultural context. “Every food trend is a sort of cultural force and a story line in the guise of something edible.” With kale, the story line is a virtuous one, Sax believes. “It was an edible Prius. It was a cultural signifier.” Kale has the power to be a symbol of a set of values (like bacon, which Sax calls the “macho, male, red-blooded, red state equivalent to kale”). Thus, yoga mat in one hand, kale in the other, consumers can broadcast their participation in a movement.

Then, when you’re Wendy’s and you add a kale salad, Sax suggests, “you are sending a message that your values are in line with those people.”

Availability and versatility lend an item to a rapid ramp-up. The cultural piece is the driver. “So anytime someone asks, ‘what is the next kale?’” Sax says, “we have to ask: ‘does it have those factors?’”

In the package

“As a restaurant, it’s easy to experiment with kale and put it on the menu for a while and see if people adopt it,” says Eric Pierce. As director of business insights for New Hope Network’s NEXT Data & Insights team, Pierce is less interested in culinary trends and more interested in CPG, which has a different trajectory. Manufacturing finished goods calls for a much more substantial investment up front, he says, and therefore a reasonable amount of market momentum must be established beforehand. “It’s that momentum that we here at NEXT and New Hope try to utilize as a way of identifying what trends exist in the marketplace,” he says.

Pierce traces the recent rise of drinking vinegar as an example, noting parallel forces that might help propel it forward. First is kombucha, a beverage that GT’s brought to market 20 years ago, but has really only taken off in the last few years, “as consumers were trading out of sodas and beginning to look for other flavor profiles.” Also emerging over the last few years were the broader category of functional beverages and the rise of fermented foods, lending credibility to vinegar as a viable flavor profile, “demonstrated by the entrepreneurs and the bets they’re making in the marketplace,” Pierce says. “Every time an entrepreneur brings a new product to Expo, you think of that as a pretty meaningful market indicator. This is an individual who’s now spent how much money building this product and getting it to this point? But then they’ve also now committed to saying, ‘I’m big enough and it’s worth the expenditure to come to Expo to find greater distribution.’”

This year, Expo West saw at least 14 drinking vinegars across five brands, “all that were out there on the market, most of them now focused on ready-to-drink that you’d pick up instead of a soda, instead of a Suja, instead of other beverages.”

Thus, drinking vinegar has a meaningful context for continued momentum. “Something like a cronut doesn’t have that,” Pierce says. “Those mashups are kind of fun, but I think they’re fads. The only thing they have in common is the novelty of finding something new. If something’s going to have the potential to build a business around,” he says, echoing Sax, “I want something that connects to a larger cultural trend that’s going to help sustain it.” There’s immediate benefit for the brand, too. “They don’t need to scale all on their own,” Pierce says. “They’re going to draft on these broader themes.”

Donut backlash?

“As I thought about this, I wondered if the superfood trend pattern has ridden its course,” says Kara Nielsen, food and beverage trend expert and U.S. sales and engagement manager with Innova Market Insights. She’s talking about how “earnest and clean” health food has gotten. “Grain bowls, fermented ingredients, avocados, sweet potatoes, miso, etc., have created a new set of good-for-you-ingredients that also feel precious.” Will all of this clean eating create a sugary or gluten-centric backlash?

Like donuts, she says. Or something in between, “like great baked goods, slow-fermented breads, heirloom regional wheats and grass-fed dairy.” The craft food movement is well-established, she says, pointing to small batch versions of not-traditionally-healthy items like ice cream. “This continues to be a time when there is a whole spectrum of good quality foods to choose from.”

On the healthy, single ingredient side, however, Nielsen wonders about mushrooms, algae and seaweed. Is it time for one of these to pop? “It fits with these times of awareness of sustainability to embrace a green plant like an algae or seaweed that is doing its natural thing and then harnessing it into a nutritious and resourceful ingredient.”

Duck, duck… weed

Geoffrey Palmer, CEO of sports nutrition company Clean Machine, sees duckweed as a contender. The rapidly growing plant covers the surface of ponds and slow-moving waterways. It can be used in bioremediation for its ability to rapidly take up what’s in the water. In a similar way, and in more favorable conditions, please, the plant can grow to harvest and be processed into a ready-for-market nutritive powder in 48 hours.

“It has a near zero carbon footprint in the processing and production of it,” says Palmer, who buys the ingredient, marketed as Lentein™, from Parabel. “It literally goes from sitting on the ponds, up a ramp, into pressing and there’s a finished product within minutes. It’s a truly sustainable market.”

But that’s not the primary duckweed story. “What makes it even more exciting is that it’s also higher in nutrient density than any other plant including kale, spinach, spirulina, chlorella… even moringa, believe it or not.” To be sure, moringa—a highly nutritive, weed-like tree with world-saving aspirations—has been pegged as the next kale. But duckweed stacks up higher, Palmer says.

“It’s higher in branched-chain amino acids and essential amino acids than any other plant protein ever discovered,” he says. Higher than whey, too, he adds. Additionally, Lentein is high in vitamins, minerals, antioxidants, micronutrients and even omega-3s. “It’s just a tremendous supergreen and superprotein.”

By comparison, Palmer explains the recent emergence of pea protein. “One [factor] was the paleo movement which did not want grains,” he says. This eliminated wheat and rice just as soy came under scrutiny for its phytoestrogens. Pea also provided one of the most favorable branched-chain and essential amino acid profiles in plant proteins. That is, until Lentein came along.

“It makes me think how many other superfoods are out there that we are considering weeds or are not paying attention to,” Palmer says. “We’ve been looking at basic crops over and over and not really recognizing some of the other plants out there that have super tremendous healing properties.” 

But, for all its promise as a winning ingredient, duckweed will not be the new kale per se, not unless it can make its way into the culinary world. Even getting it to a protein shake took some effort. Palmer is exuberant about the flavor profile achieved in their vanilla chai powder, but this was a matter of overcoming duckweed’s inherent “green” flavor. It may be awhile before we see duckweed pesto on the grocery shelf. 

So, while it may be the next superfood, a la chia and acai, it might not have what it takes to be the cross-category darling that kale has been.

So, what is it?

NEXT’s Pierce identifies a few broad trends to watch. Sleep, stress and balanced energy is one such emerging theme, with adaptogenic herbs showing up in functional beverages, functional chocolates and functional snacks, he says. “We’ve been talking about it for quite some time, but it’s just beginning to materialize.”

In fact, functionality will continue to grow overall, with, says Pierce, “things that were traditionally only in the supplement space coming into food and beverage.”

True. But, while functional food categories like those Pierce identifies, supergreen superproteins like duckweed, and clean label craft foods like those Nielsen is watching are interesting (and perhaps more useful to observe), they fail to answer the question: what is the next kale?

During the reporting of this article, Bloomberg published a compelling prediction in the unambiguously titled, “Cauliflower is the new kale.”

The pale crucifer does have many of the characteristics Sax laid out for kale: It’s available. It’s versatile. “It’s also a blank slate vegetable,” Sax says. “It is something that you can do all sorts of things with, and it holds up to heat and frying and soups and stews...” And it’s a vegetable, “so it has this culinary message that could be virtuous … but could still have texture and flavor and bite and wouldn’t just be a bunch of sad tofu.”

But is it super? “Nutritionists can always tell you what’s good about it,” Sax says. “Every food has nutrition in it, that’s why it’s food.”

Indeed, according to mercola.com, cauliflower is “like winning the antioxidant and phytonutrient lottery,” while providing digestive and detoxifying benefits, and even cancer-fighting and heart- and brain-boosting nutrients. 

It’s a solid contender, slowly rising from familiar to ubiquitous. But has it already peaked in culinary circles? Time will tell whether it can topple kale. One thing seems likely, though. It’s not going to take over the smoothie menu.

Tuesday, May 23, 2017

John Mackey tells the Whole story


How I Built This, NPR's podcast "about innovators, entrepreneurs and idealists, and the stories behind the movements they built" just keeps featuring natural products industry companies. In fact, at least 10 of the 38 episodes so far are related to our industry. Is this media bias? Is host Guy Raz favoring a category? Or is it that listeners are interested in how food and food retailing have changed over recent decades in the hands of these dynamic entrepreneurs?

Regardless, it’s certainly true that they are really good stories—tales of renegades forging forward in a world of processed foods, changing the American palate and making a fortune along the way.

It started in October with episode four and the building of Clif Bar. Since then we’ve learned about Honest Tea, Beyond Meat and 5-Hour Energy. Along the way, Raz and Co. have taught us about similar eco or food renegade companies like Patagonia and Instacart, and even how Sam Adams and Dermalogica created industries, paving the way for craft beer and natural cosmetics.

The latest category creator was John Mackey. Like so many of the entrepreneurs on the podcast, the Whole Foods Market founder speaks of the way drive and luck (and in Mackey’s case, a youthful sense of nothing to lose) combined to build an idea the world was hungry for. Listen as Mackey and Raz discuss the early days of Safer Way Foods, the 100-year flood that almost killed the business in year one and the ever-evolving business that challenges the company to remain relevant in the very space it created—no exaggeration.

Raz describes the legacy of Mackey and Whole Foods as, "changing how supply chains worked and how people produced food and, I guess, created new markets for organic food."

"That’s certainly true," Mackey says with factual immodesty. "We did." He acknowledges that they didn’t do it singlehandedly, "but we created much of the demand for natural and organic in the United States," which in turn created more farmers, entrepreneurs and manufacturers wanting to produce organic foods. "So we had a huge impact. We still do."

Private label lifts Sprouts


Despite a unique balance that sees 60 percent of purchases come from the perishable side, predominately non-perishable private label offerings have become key revenue drivers for of Sprouts Farmers Markets, officials said.

"We started private label about four years ago as about 5 percent of our overall sales," Amin Maredia, CEO of the Phoenix, Ariz.-based Sprouts said during a presentation at the BMO Capital Markets Farm to Market Conference on Thursday in New York. "But as I mentioned today, 60 percent of our sales in the store are on the perishable side of the business, which has limited amount of private label in it."

Nearly 50 percent of Sprouts baskets arrive at checkout carrying one or more private label items. The product line is on pace to garner $500 million in revenue by year-end, which would account for 12 percent of total sales.

"When we look at our overall sales today, we've gone [up] from 5 percent to 11 percent [across the] overall store, but certain departments of this store are between 15 percent and 20 percent," said Maredia during the event.

He pointed to packaged grocery, dairy, and frozen as areas that are actively expanding private label’s footprint.

"The growth in private label has not only been by more items in the basket but it's by new trial," said President and COO Jim Nielsen. "So, the outlook is good, but we're very objective about the business, it's not just about pure growth of private label penetration. It's about the balance for what the consumer wants."

The success of private label has helped facilitate 40 straight consecutive quarters of positive comparable sales.

In the face of 3 percent deflation during the first quarter ended April 2, Sprouts still managed to notch 1.1 percent comps as total sales rose 14 percent to hit $1.1 billion. Net income remained steady at $46 million but in-store traffic ticked upwards by 0.6 percent.

Along with the positive growth being generated by the store’s private label, both executives believe that their staff and the company’s training methods have helped keep the brand strong during times of hardship for the industry at large.

"Last year we promoted at the store level almost 20 percent of our team members," Maredia said during the presentation. He called employment opportunities at Sprouts a career as opposed to just a job.

"We believe that one of our biggest points in difference is our people," said Nielsen during the presentation. "So we made a very conscious business decision to invest more into training."

Nielsen expressed that in a store that relies so heavily on produce and perishable items-especially during a period of significant deflation- knowledgeable and helpful  sales staff are key to keeping the numbers trending upward.

"You sell natural food," he added. "You can’t offer natural foods on the shelf. We’ve got to educate our team members about the products and help them connect the products to the individual to help them along that happy, healthy journey."


This piece originally appeared on Supermarket News, a New Hope Network sister website. Visit the site for more grocery trends and insights.

5@5: A scientific study on gluten | It starts with soil


Science has finally begun taking gluten seriously

A group of prominent researchers at Harvard and Columbia are out with a new study concluding that eating gluten does not cause heart disease. That might seem like a given, but this study is significant because it's among the most meaningful research yet on the relationship between gluten consumption and health outcomes. Given the number of consumers who are now avoiding gluten, some medical professionals believe there could be some kind of undiscovered clinical entity that people who are intolerant to gluten (but don't have celiac) have that's worth studying. “I believe we need to research and study rigorously the things that patients are interested in,” said Benjamin Lebwohl, a gastroenterologist and the lead researcher on the study. "If the public is barking up the wrong tree, we shouldn’t ignore that." Read more at The Atlantic...

 

A climate change solution beneath our feet

Practices like reduced tillage and cover crops have long been used by small and organic farms to keep their soil healthy, but awareness is rising that healthy soil isn't just important for the food we grow—it's important for the Earth we live on. California is planning a $7.5 million program expected to start this summer that will provide state funding to help farmers and ranchers reduce their emissions through healthier soil. Read more at The Washington Post...

 

The first corporate executive ever to do time for food safety violations may walk free

In 2015, Peanut Corporation of America CEO Stewart Parnell was sentenced to 28 years in prison for knowingly allowing products that had tested positive for salmonella to be distributed. But Parnell has appealed, claiming that the jury was biased and that his sentence was miscalculated. Read more at New Food Economy...

 

Prepared food distribution service Power Supply rebrands as Territory and raises $6.7 million

As some meal kit delivery companies (read: Maple and SpoonRocket) shut down, this one is looking to expand into new markets with new capital from investors. The company differentiates by working with local chefs. Read more at Tech Crunch...

 

Whole Foods: Priced for a sale?

One analysts says the retailer's shares have topped out, unless it gets acquired. Read more at Barron's...