This week: The Organic Coup grows | Enzymotec krill goes TMAO-free

The Organic Coup, a USDA Certified Organic fast food restaurant, announced plans to have 10  locations by February 2017. There are currently six California locations, with four more opening in the next two months.

OmniLean, a metabolic health ingredient by OmniActive, received self-affirmed GRAS notification. 

Solix Algredients Inc. expanded its Solasta Astaxanthin product range with a new product tailored for easier handling and processing efficiency. Solasta 110 is a 10 percent natural astaxanthin oleoresin product designed to provide greater operational flexibility and cost savings to supplement, beverage and personal care product makers. 

Working with Avionos, Bear Naked Custom Granola was recently awarded the "Customer Management Award" by Consumer Goods Technology. This award is presented to "the consumer goods firm that is best leveraging technology or business process change to manage customer relationships, trade promotions, marketing and/or consumer insights."

On behalf of its 151 member and associate co-ops, National Co+op Grocers announced a $50,000 donation to Fair Food Network to support growing its healthy food incentive program to retail food co-ops nationwide. Fair Food Network is a national nonprofit pioneering solutions that support farmers, strengthen local economies and increase access to healthy food in underserved communities.

The FDA) has "no questions at this time" regarding Kemin’s submission for GRAS status for ZeaONE Zeaxanthin from marigolds (Tagetes erecta, L.), confirming its safety for use in a wide range of functional food and beverages. ZeaONE is distributed and marketed as OPTISHARP Natural through a strategic partnership with DSM Nutritional Products. Also, the Food Technologies division of Kemin now offers BactoCEASE NV OR Liquid as part of its buffered vinegar food safety solutions line. As an alternative to traditionally used synthetic preservatives, this line of buffered vinegar-based products helps manufacturers offer safe and label-friendly meat and poultry products, and is available in liquid, dry, no sodium and organic varieties.

Enzymotec has unveiled an improved grade of its K-Real krill oil, which offers enhanced levels of freshness. Produced using Enzymotec’s MSO 2.0 process, K-Real contains no trimethylamine, the volatile molecule that gives rotting fish its unpleasant smell. It is also free of trimethylamine-oxide (TMAO), a compound found in marine products that has been linked with an increased risk of cardiovascular disease.

5@5: Animal antibiotics still on the rise | Blue Apron to hold off on IPO

Despite pledges to cut back, farms are still using antibiotics

The latest FDA figures show a 1 percent uptick in sales of antibiotics for use on farm animals--despite the perceived widespread movement by the food industry toward animals raised without them. But, FDA says, at least the rate of increase has slowed. Read more at NPR...

 

Blue Apron put IPO on hold to focus on financials

Sources say the meal kit delivery service has pushed its plans for an IPO into next year. It's reported more than $800 million in revenue this year but has struggled to improve profit margins and reduce the cost of acquiring customers enough to support its targeted $3 billion valuation. Read more at Bloomberg...

 

More Brits will eat ethically this year than ever before

In a survey, 49 percent of British adults say they've made changes to their diets in the last year because of concerns about animal welfare of the environment. More than one-third said they've bought free-range meat or eggs, while 9 percent said they've avoided red meat. Read more at The Colour of Money...

 

Schwarzenegger supplement maker, rival drop ad claim suit

Back in May, Hi-Tech Pharmaceuticals sued MusclePharm on claims that it artificially inflates the level of protein in its Arnold Schwarzenegger Series Iron Mass product and lies to consumers. But the companies have asked a federal judge to dismiss the suit. Read more at Law 360...

 

In their 70s, farming brothers look to future with organic hay

As demand for organic dairy continues to grow, farmers are finding opportunity to fuel growth--and their own profits--with organic feed. Read more at VTDigger...

Ancient grains by the numbers [NEXT Forecast 2017]

The following is an excerpt from the NEXT Forecast, an insider’s guide to where the natural products market is now—and where it’s headed. Drawing from proprietary data sets, expert interviews, in-market case studies and the Natural Products Expos, the NEXT Forecast is the industry’s leading source of forward-looking insights. Learn about this and many other in-market trends laddering up to dominant macro forces in this report. 

Fueled by a back-to-basics approach that speaks to a growing awareness of how ingredients and processing affect nutrition, more shoppers than ever are choosing products that contain pronounceable ingredients—no sodium erythorba-whatchamacallit here. Today, the average nutritionist’s—and, increasingly, mother’s—advice is to weed out foods that contain complicated chemicals and overly processed ingredients.

The rise of ancient grains—consumers' awareness of and demand for them, and brands' use of them—is a great illustration of that. Ancient grain usage continues to grow among products launched at Expo West. Below, see the growth in selected heritage ingredients from Natural Products Expo West 2015 through Natural Products Expo West 2016.

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Get the full NEXT Forecast to see how ancient wisdom, along with 13 other macro forces, will shape the future of the natural products industry.
nextforecast.com | Order now

5@5: California leads in local | Food packaging: A double-edged sword for waste

California has big lead in local food sales, survey shows

It's no surprise that the country's biggest agricultural state, and the top state for organic production, also leads the way in local foods. The USDA estimated that $8.7 billion worth of food was sold by farms in the U.S. through direct marketing practices—and nearly one-third of that was in California. Michigan, New York, Pennsylvania and Wisconsin rounded out the top five. Read more at Agri Pulse...

 

Food packaging is not the enemy of the environment that it is assumed to be

We often think of food packaging as wasteful—but in some cases can it be an environmental boon? What about vacuum packaging, for example, which can almost double the shelf life for meat? Or resealable packages that keep food fresher longer? What about the double-edged sword of single-serve packaging that may prevent food waste but generate more plastic waste? Read more at The Economist...

 

Grocery of the future: The right food at the right moment on aisle 4

Kiosks for ordering prepared foods. Apps that help customers find products to match their preferences. Electronic shelf labels. Here's how technology is changing the retail experience. Read more at Take Part...

 

S.C.-based Sonoco hopes clear cans are the future of food

Consumers aren't gobbling up canned foods like they used to. But packaging companies are hoping that using see-through cans to package beans and other shelf-stable foods may lure consumers and stand out on the shelf. Read more at The Post and Courier...

 

Danone's CEO on going organic and why it's critical to be fair

Emmanuel Faber finished off his second year at the helm by acquiring WhiteWave Foods. But he says the food industry's model of simplifying and standardizing, and going for economies of scale, is reaching its limit and has not taken into account sustainability. Read more at The Wall Street Journal...

Instacart reveals top brands, products of the year

The gluten-free, paleo and non-dairy food trends are still going strong and will roll with momentum into the new year—at least according to Instacart, which partners with retailers like Whole Foods Market, Costco, Publix and Andronico’s to deliver groceries to customers.

In a blog post, Instacart revealed the brands and products that saw the highest jump in searches in 2016, and the product attributes that those brands and products indicate that consumers are looking for.

The online delivery service noted a 222 percent uptick in searches for “non-dairy” products like yogurt, milk, coffee creamer and frozen treats with a coconut, soy or almond base. One standout brand was newcomer New Barn, which markets almond milks with between four and six ingredients that are free of carrageenan and added flavors. Searches for these milks were up more than 700 percent. Califia Farms’ plant-based creamers also saw a 228 percent jump in searches. Non-dairy yogurt makers Kite Hill and COYO were among the fastest-growing dairy alternative brands for searches, as well as coconut milk ice cream maker NadaMoo!

Gluten-free is still going strong, according to Instacart. Chickpea pasta maker Banza and grain-free specialist Cappello’s were both up more than 300 percent.

Products that cater to the paleo crowd also gained search momentum in 2017. Egg white and nut protein bar brand RXBar, and paleo-friendly baking mix maker Simple Mills, were among Instacart’s top five brands with the most growth in search. Instacart predicts that the paleo trend will continue and that more brands will seek out the “Whole 30 Approved” label, indicating that products are free of added sugar, dairy, grains, alcohol, legumes and additives.

2017: Beverage and food categories poised to grow

We asked industry thought leaders to share their predictions for 2017. Here's what Jim Tonkin, principal at Healthy Brand Builders, had to say. 

In traditional grocery, including natural and specialty, I see more competition in pricing and pack size changes.
Some inflation may creep into the marketplace, which could grow consumer skepticism around price elasticity.

Product categories growing:  

Pre/probiotics, although with a cautionary tale. I am NOT a believer in a standard probiotic load per consumer. That’s because the body has a specific microbiome that must be maintained, and arbitrarily changing it because one thinks their lower intestine is ‘out of balance’ or someone suggests so (except medical practitioner) says RED LIGHT to me.

Muesli/granola and other organic and/or natural cereal: This in the face of major declining value propositions of cereal manufacturers in the U.S.

Healthy bars to bites. It’s time to move away from the traditional nutrition bar, to more on-the-go, resealable bite-size bits and bags holding them. This is great on a price/ounce basis and allows another new marketing opportunity to show off ingredient-healthy product.

Teas (ready-to-drink and other like powders). The market continues to grow around coffee, and new indigenous teas coming from around the world are on top of mind and fun to drink all the while being very health-packed.

Drinkable cold soups. This is a new expanding vertical that will spring up quickly. Amazing soups, organic and not, bringing much-wanted new interest in a slow, otherwise non-innovative category.

Non-animal proteins are new forms of proteins without animal fats and sourcing. Proteins like pea, chia, hemp, rice, nuts of all kind and more are coming at warp speed. These are very cool innovations with amazing taste profiles. They’re great in meal replacements, smoothies and just slam-down goodness in beverages and food.

Stick pak delivery is a new type of healthy market entry against the current, not healthy, sugar-laden stick paks and sachets. This new packaging form will go wild.

Cold-brew coffees and botanicals. Cold-brew coffee has made it to the mainstream, with lots of iterations for sure.

Adaptogens like rhodiola and turmeric are on the scene in everything.

Natural energy. New and competitive beverages are coming to market to compete with Red Bull and Monster-type products.

Relaxation/stress relief. This may be the year for these food/bev/capsule/powder ingredients, nonpharma, to flourish. We need to slow down and chill!

5@5: Jam-packed juice market | What's with all the class action lawsuits?

Juice's identity crisis hasn't stopped entrepreneurs from making it

It's a crowded, fragmented category. And while sales of mass-market juices have tanked, single-serve, premium cold-pressed juices have enjoyed massive success. It's a tough market to crack, and even tougher to scale. But consumers are still drinking it up, and new trends are still evolving. What's on tap? Less sugar, home juicing/mixers and exotic ingredients. Read more at The New Food Economy...

 

Why are consumers unhappy with their food and drink filing class action lawsuits?

Class-action lawsuits brought against food and beverage companies have increased more than six-fold since 2008, by one firm's count. A Supreme Court decision in 2011 contributed to the influx, and the FDA's minimalist approach to regulating terms like "natural" has also made the food industry a prime target. Read more at Forbes...

 

Health-food restaurant chain Freshii said to be seeking $100 million in Canadian IPO

Founded in 2005, the fast-casual chain now operates more than 240 locations in 15 countries and plans to open 150 more next year. Read more at Financial Post...

 

Good news for organic producers, handlers

Next year, food producers will be able to apply for federal reimbursement to help with the cost of transitioning to organic at more than 2,100 Farm Service Agency offices around the country. Historically, state agriculture departments have administered the cost share programs. Read more at Ag Week...

 

General Mills sees mixed results in cereal

Sales of cereal were down in the company's second quarter, compared to last year, but company leaders say the removal of artificial ingredients and a gluten-free label on Cheerios is driving growth. Read more at Food Business News...