Quick viewing(Text Mode)

Free-From CLAIMS: Moving from ‘No’ to ‘Yes’

Free-From CLAIMS: Moving from ‘No’ to ‘Yes’

Food Insider Journal Clean Label Strategy & Formulation Brought to you by: Natural Products INSIDER

Free-From CLAIMS: Moving from ‘No’ to ‘Yes’

Vol.1 No.3 ■ May 2017 ■ US$20 foodinsiderjournal.com CONTENTS foodinsiderjournal.com May 2017

3 5 18 22 Viewpoint: Free-From Claims: On-Label Certification Free-From Bakery Making the Case Moving From ‘No’ Claims Increase Offers More Than for ‘Free From’ to ‘Yes’ Consumer Appeal the Baseline

Innovation in Action 30 36 Canyon Bakehouse: Nature’s Bakery: Love Bread Again On-The-Go Snacks Crafted With Thoughtful Ingredients

Food Insider Journal Clean Label Strategy & Formulation Brought to you by: Natural Products INSIDER

Copyright © 2017 Informa Exhibitions LLC. All rights reserved. The publisher reserves the right to accept or reject any advertising or editorial material. Advertisers, and/or their agents, assume the responsibility for all content of published advertisements and assume responsibility for any claims against the publisher based on the advertisement. Editorial contributors assume responsibility for their published works and assume responsibility for any claims against the publisher based on the published work. Editorial content may not necessarily reflect the views of the publisher. Materials contained on this site may not be reproduced, modified, distributed, republished or hosted (either directly or by linking) without our prior written permission. You may not alter or remove any trademark, copyright or other notice from copies of content. You may, however, download material from the site (one machine readable copy and one print copy per page) for your personal, noncommercial use only. We reserve all rights in and title to all material downloaded. All items submitted to FOOD INSIDER JOURNAL become the sole property of Informa Exhibitions LLC.

2 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 VIEWPOINT Making the Case for ‘Free From’

he global free-from food and beverage market is experiencing exponential growth due to increased diagnosis of digestive health conditions such as celiac disease and the rising incidence of food The quantity and T allergies, intolerances and sensitivities. The quantity and quality of food quality of food and beverage products with label claims such as “gluten free,” “non-GMO,” “allergen free,” etc., has increased dramatically compared to just five years ago. and beverage What’s more, free-from foods now can be found in every category across the products with food and beverage space. label claims This is good news for millions of people like myself who practice avoidance of such as “gluten certain ingredients. Sadly, my days of eating salmon, avocados and walnuts have free,” “non- faded into the sunset lest I want to land in the emergency room or worse, 6 feet GMO,” “allergen under. The same goes for our vice president of content Heather Granato and my 9-year-old daughter, both of whom are deathly allergic to all things tree nut. And free,” etc., gluten is the archenemy for my friend Danielle, who suffers from celiac disease. has increased It’s been more than a decade since the poor gal has tasted a slice of “real” dramatically marble rye bread or thrown back an ice-cold beer, but she’s learned to “repeal compared to just and replace” those products with gluten-free bread and Riesling. five years ago. As consumers, we put our faith in food and beverage manufacturers to What’s more, do the right thing when it comes to creating free-from products. This means establishing best practices to verify the ingredient supply chain and product free-from foods integrity from the drawing board to the retail shelf. It also means making sure a now can be product’s label and marketing message is truthful. But in the end, the finished found in every product must not skimp on taste, functionality or nutrition. category across This month we examine the booming free-from bakery sector that’s being the food and driven by increased diagnosis of digestive health conditions, as well as growing beverage space. consumer demand for better-for-you products free from ingredients such as gluten, allergens and artificial colors, flavors and preservatives. SPINS data reported U.S. sales of gluten-free breads and baked goods grew nearly 12 percent between 2016 and 2017 to reach more than $416 million. Data also found sales of bread and baked goods bearing a Non-GMO Project Verified seal grew 23 percent between 2016 and 2017, while sales of allergen-friendly options soared nearly 90 percent over the past year. This month’s Innovation in Action case studies highlight how two established bakery companies—Canyon Bakehouse and Nature’s Bakery—identified go-to- market opportunities within the free-from bakery sector and launched innovative products to fill specific voids on the bakery shelf.

Cheers,

Judie Bizzozero Editor [email protected] @judiebizz

3 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 The Label-Friendly Bakery

CARGILL’S LABEL-FRIENDLY Gluten-Free Non-GMO Cookies PORTFOLIO INCLUDES: Breads

Canola lecithin Custom Texturizing Systems Gluten-free baking bases Reduced-Sugar Glazed Native starches Muffins Donuts Oliggo-Fiber® chicory root fiber Pectin

ViaTech® stevia sweeteners Fruit-Topped Pastries Cakes Nutrient- Packed Bars

Cargill’s broad label-friendly portfolio, market expertise and trusted supply chain can help you meet consumer demand.

Nutrition Facts Nutrition Facts Nutrition Facts NON INGREDIENTS: INGREDIENTS: GMO INGREDIENTS: $$$ 66% 12% 73% OF AMERICANS ANNUAL GROWTH OF CUSTOMERS seek product claims which avoid expected in demand for non-GMO will pay a higher retail price for food or negative ingredients1 ingredients through 20182 drinks made with trusted ingredients3

1 www.FMI.org/grocerytrends (2016) 2 Packaged Facts (2016) 3 Food Insider Journal (March 15, 2017)

For more information on label-friendly solutions, contact us at 1-877-SOL-UTNS(765-8867) or www.cargill.com/labelfriendly Free-From CLAIMS: Moving From ‘No’ to ‘Yes’

by Judie Bizzozero

all it clean label, clear label or free from, the context of the much broader movement toward movement to provide food and beverage improved nutrition and social responsibility.” This movement is translating into changes products containing clean, simple and across the entire industry, with global sales for recognizable ingredients has moved out of a clean label food and beverage products projected C to soar to US$180 billion by 2020, according to niche segment and been thrust into the mainstream Euromonitor. This sector is poised for continued spotlight as health-conscious consumers around the growth due to ongoing development of a greater globe are seeking out healthy, minimally processed range of food and beverage products free products made with natural ingredients. from additives, allergens, genetically modified organisms (GMOs), , meat and other ingredients without sacrificing quality, texture Some consumers choose to avoid certain or taste. Consumer packaged goods (CPG) ingredients because of allergies, intolerances or companies are more aware of the growing health sensitivities to specific foods or ingredients, while and wellness and social concerns of consumers Global sales for others opt to reduce or eliminate ingredients such and can reap rewards by identifying which clean label food as added sugars, sodium, and artificial flavors sectors have the best go-to-market possibilities and colors they deem undesirable. What’s more, and beverage and delivering nutritious products that not only there’s been an uptick in consumers avoiding taste good but meet consumers’ expectations. products are specific foods or ingredients because of religious In order to succeed, Hudson said a product projected beliefs or environmental concerns. needs to deliver on three critical fronts: to make to soar to “Clean eating or mindful eating is disrupting consumers feel good about the product they are the old world of health and wellness,” said Ewa buying; to make an emotional connection with US$180 Hudson, global head of health and wellness, the consumer; and for consumers to feel they nutrition and ethical labels research, Euromonitor are doing the right thing for the planet, local billion International. “We will be no longer looking at this community and everyone involved in the process by 2020. health and wellness trend in isolation, but in the and manufacturing of the product.

5 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 59% of U.S. consumers agree “the fewer ingredients a product has, the healthier it is.”

Consumer Perception of Free From consumers reporting they think about the healthfulness of Much like the terms “natural” or “healthy,” there is no their diet; 88 percent think about the ingredients in their industry-wide definition forfree from. However, it is safe to food; and 72 percent think about the way their food is farmed say it refers to food and beverage products identified as being and produced. allergen free, gluten free, non-GMO, dairy free, lactose free, In the United States, the picture is similar. Data from the grain free, vegan, organic and so on. In addition, free from also “Free-from Food Trends – US, May 2015” report from Mintel can denote products made without artificial ingredients such found 53 percent of consumers agree “I worry quite a bit about the potentially harmful ingredients in the foods I buy,” and as flavors, colors and preservatives that are among ingredients 71 percent of U.S. consumers agree “there are probably more consumers avoid. When factoring in other ingredients such as harmful or excess ingredients in food than manufacturers are sugar, sodium and that consumers are trying to limit, the telling us.” What’s more, 59 percent of U.S. consumers agree free-from sector becomes a much larger playing field. “the fewer ingredients a product has, the healthier it is.” Consumers are paying more attention to what is in their Scott Steinford, CEO and founder, Trust Transparency food, so understanding how they perceive free from and how Consulting, said transparency of branded ingredients has not much it influences their purchasing decisions is key for CPG yet been widely accepted in the food and beverage industry. manufacturers and marketers. Data from the International “The dietary supplement industry has demonstrated the Food Information Council (IFIC) Foundation’s 2015 Food & effectiveness of transparency by utilizing recognizable and Health Survey supports the notion that consumer values proven ingredients differentiated from commodity products,” and preferences are shifting, with 91 percent of global he said. “The food and beverage industry is likely to receive a

FOOD INSIDER JOURNAL Organic & Non-GMO Clean Label Strategy & Formulation Brought to you by: Natural Products INSIDER rganic food sales in the United States hit a record high O $39.7 billion in 2015, with produce and dairy leading the charge. And while organic production methods disallow genetically modified organisms (GMOs), non-GMO is trending as the go-to label claim, Organic with U.S. retail sales of non-GMO food and beverages estimated to Non-GMO reach $330 billion by 2019. This issue explores the disconnect among Exploring consumers about these different, yet complementary, certifications the Consumer Disconnect and terms. Download Food Insider Journal’s “Organic & Non-GMO: Exploring the Consumer Disconnect” digital journal to find out more about how organic and non-GMO are helping shape the free- Vol.1 No.1 ■ Ma 2017 ■ US$20 from food and beverage movement.

0317a M. 1 32017 222 M

6 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 similar level of increased loyalty and confidence through the use of branded ingredients.” As evidence, he pointed to a survey commissioned by Ingredient Communications that found 73 percent of consumers across Europe, North America and Asia-Pacific said they would pay a higher retail price for a food or drink product made with ingredients they recognized and trusted. More than half of respondents (52 percent) said they would spend over 10 percent more on a food or drink product that contained ingredients they recognized and trusted, and 18 percent said they would pay 75 percent or more extra. “There are now hundreds of branded ingredients that can be considered for use in foods and beverages as traditional commodity pricing gives way to educated consumers’ consideration of quality and transparency,” Steinford added. More than 30 of In recent years, companies have found success in communicating transparency by using QR codes that provide the nation’s major a direct web link to education and information about a specific food, beverage and product, giving consumers a significant, yet simple, manner to obtain product information via smart phone or tablet. consumer products “In 2013, Doctor’s Best placed a QR code on the front panel of each product that directed the consumer to the specific companies, including product page on its website for each ingredient,” Steinford said. “The goal of the QR code was to increase the ‘real estate’ of ConAgra Foods, Nestlé, the label to offer more science and education to the consumer Hershey, Campbell Soup about the ingredients used in the product. The QR code is lot specific and allows the consumer to see details such as assay Co., Unilever, Coca- testing, impurities testing, ingredient country of origin and place of manufacture.” Cola and PepsiCo have This level of ingredient transparency will likely expand to food and beverage products, especially as more companies committed to using join the SmartLabel™ initiative, a program created in 2015 by manufacturers and retailers. It helps consumers get additional details about products by scanning a bar code or doing an SmartLabel, online search to reach a landing page with information on ingredients and other attributes of a wide range of food, and over 34,000 beverage, pet care, household and personal care products. More than 30 of the nation’s major food, beverage and consumer products companies, including ConAgra Foods, products Nestlé, Hershey, Campbell Soup Co., Unilever, Coca-Cola are slated to feature and PepsiCo have committed to using SmartLabel, and over 34,000 products are slated to feature SmartLabel by the end SmartLabel by the end of 2017. Early estimates indicate that within five years, more of 2017. than 80 percent of the food, beverage, pet care, personal care and household products consumers purchase will be using SmartLabel.

7 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 Ingredient suppliers also must ensure transparency and fact, by using the right blend of ingredients and partnering supply chain integrity for finished goods manufacturers and with ingredient advisers, you can deliver exceptional eating or consumers. Pam Stauffer, global marketing director, Cargill, drinking experiences to your consumers.” said there has been an uptick in interest for non-GMO Rainey noted in many cases, there is no single ingredient ingredients, including those that carry the Non-GMO Project solution; instead, it’s a purposeful blend of ingredients that Verified seal. In March, Cargill announced a number of new mimic the functionality of the traditional ingredient being products that received Non-GMO Project certification, and replaced, all designed to work together. the company recently launched its KnownOrigins™ identity “This is often the case in gluten-free solutions where there preservation process, which features robust testing, approval is no direct replacement for traditional flour; rather, it often and evaluation protocols that enable food and beverage requires a blend of different gluten-free flours and proteins to manufacturers to make non-GMO claims. Key features of achieve the desired texture and shape,” he said. “The same is KnownOrigins include traceability back to producers; testing to true for dairy alternatives. There’s often not a 1:1 replacement, verify non-GMO status; stringent raw material evaluation and but rather a blend of various plant-based ingredients and approval protocols for all raw materials and processing aids; natural taste modifiers that will help achieve the taste, texture, and specific segregation, cleaning and flushing procedures to nutrition and function desired.” protect against cross-contact with GMO ingredients and ensure commingling levels are within the agreed-to non-GMO standard. Product Claims Shifting From No to Yes It should be noted that while claims substantiation, Data from Euromonitor’s March 2017 Passport database supply chain and transparency are top of mind for free-from found free-from products (allergen free, dairy free, gluten free, consumers, the finished product still must taste good. lactose free and meat free) in the health and wellness industry “Developing products that can make free-from claims such experienced retail sales of $30.5 billion in 2015 and will as gluten free, allergen free and non-GMO doesn’t mean increase to $42.6 billion by 2021, representing a 5.5 percent you have to sacrifice on taste, functionality or nutrition,” said compound annual growth rate (CAGR) for the forecast period Mark Rainey, vice president, global food marketing, ADM. “In 2015-2021.

Top Categories With New Product Introductions Featuring Free-From Claims*, 2013-16

22.9% 22.4% 22.4%  2013  2014  2015  2016

18.3%

14.3% % % 13.0 % 11.5% 12.3 12.4 % 11.2% 11.2% 11.2 % % 10.7% 10.4 10.2 % % 9.4 9.0% 9.1% 8.7 8.2% % of US Introductions

Sauces & Process Fish, Meat Snacks Bakery Dairy Seasonings & Egg Products

* Products feature one or more of the following claims: Gluten-Free, Low/No/Reduced Allergen, Low/No/Reduced Lactose, GMO-Free, No Additives/ Preservatives, Low/No/Reduced Calorie, Low/No/Reduced Carb, Low/No/Reduced Cholesterol, Low/No/Reduced , Low/No/Reduced Glycemic, Low/ No/Reduced Saturated Fat, Low/No/Reduced Sodium, Low/No/Reduced Sugar, Low/No/Reduced Trans Fat Source: Mintel GNPD

8 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 The Big Allergens

Fewer than half of new 8 products in the frozen bakery products, The eight foods that must be labeled chocolate, cookies, cakes and under the Food Allergen Labeling and pastries, and sweet spreads categories Consumer Protection Act are: made some type of free-from claim.

MILK

EGGS “The free-from space covers such a wide range of claims that you really need to focus on some of the key claims to get a handle on what is going on in the market,” said Tom Vierhile, innovations insight director, GlobalData. FISH (e.g., bass, Citing information from GlobalData’s Product Launch flounder, cod) Analytics database of new food and beverage launches in the United States for the period from Jan. 1 to March 31, 2017, Vierhile said the top free-from claims ranked by the percentage of new foods and non- CRUSTACEAN alcoholic beverages were no gluten (33.8 percent), no SHELLFISH (e.g., genetic modification (23 percent), no artificial flavor crab, lobster, shrimp) (15.5 percent), no preservatives (13.8 percent), no artificial color (12 percent), no dairy (6.3 percent) and no trans fat (5.9 percent). Furthermore, no artificial flavor and no artificial color TREE NUTS claims saw the biggest percentage point increases between (e.g., almonds, the period above, and the year period from Jan. 1 to Dec. walnuts, pecans) 31, 2015. “No artificial flavor saw the biggest increase with a change of 4.5 percentage points, from 11 percent to 15.5 percent,” he said. “No artificial color was second, with a 3.8 percentage point increase, from 8.2 percent to 12 percent.” Drilling down even further, four food and PEANUTS beverage categories—cereal bars, frozen ready meals, processed snacks and dressings—showed the biggest changes in the percentage of products making no artificial flavor claims between the two periods. WHEAT Interestingly, data on products launched between Jan. 1, 2016 and March 31, 2017, found fewer than half of new products in the frozen bakery products, chocolate, cookies, cakes and pastries, and sweet spreads categories made some type of free-from claim. “It is these categories that SOYBEANS may have the best potential for change going forward, as companies bring categories that may have been neglected Source: FDA into the clean label fold,” Vierhile said.

9 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 Stateside, the picture is similar. Topping the categories for free- from claims, more than one in five new snacks has made such a claim in the past several years, according to the 2016 Mintel report “Better-for-you Eating Trends: Spotlight on Real.” The number of dairy products making such claims appears to have peaked in 2014, falling to just over one in 10 dairy launches through July 2016. Likely fueled by a surge in gluten-free options, one in eight of 2016’s new bakery options carried a free-from claim. With fewer than 10 percent of fish, meat and egg product launches bearing Sales of food allergy and a free-from claim of any kind over the past six years, there would appear to be a significant opportunity for products making such a intolerance products, which claim, whether with an absence of allergens, fat or carbohydrates, the report noted. include gluten-free foods, Sales data from SPINS support these findings. Sales of grocery, diabetic foods, lactose-free refrigerated and frozen products with gluten-free claims witnessed a 7.5 percent increase between March 2016 and March 2017 to foods and other specialty reach nearly $30 billion. Non-GMO products increased 9.1 percent formulas, are expected to $16.6 billion, while USDA-certified organic products grew 9.6 percent to a market value of $9.6 billion. Products labeled as to hit approximately allergen friendly saw a 13.2 percent uptick to $167 million, while vegan claims increased 15 percent to $64 million. However, grain- free products show the largest potential for growth with a whopping $26 billion 321.1 percent growth over the same period, reaching a market value by 2017. of $64.4 million.

Top 5 Claims on Food Products Introduced in the U.S., 2013-16

 2013  2014  2015  2016 62.2% 56.1% 48.9% 49.1% % % 46.2 45.5 % 45.5% % 42.3% 44.7 % % 41.4 43.3 42.0 % 38.1% 39.1 % 35.3% 35.2% 37.0 32.7% 26.4% 23.3% % of US Introductions

Low/No/Reduced Cardiovascular Ethical - Environmentally Gluten-Free GMO-Free Allergen (Functional) Friendly Package

Source: Mintel GNPD

10 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 NIH Allergen-Free Opportunities Designates Sales of food allergy and intolerance products, which include gluten-free foods, diabetic foods, lactose-free $42.7 Million foods and other specialty milk formulas, are expected to hit approximately $26 billion by 2017, according for Food to data from companiesandmarkets.com. This sector has tremendous potential for growth due to increased Allergy diagnosis of digestive health conditions, growing interest for wheat-free and gluten-free diets, improved labeling Research regulations, and better-tasting and innovative products in the category. Consortium The United States is one of the leading markets for food allergy and intolerance products. An estimated 15 million Americans have food allergies, including March 2017, the National Institutes 5.9 million children under age 18, according to the In of Health (NIH) announced plans to Centers for Disease Control and Prevention (CDC). award $42.7 million over seven years to the Approximately 30,000 consumers require emergency Consortium of Food Allergy Research (CoFAR) room treatment and 150 Americans die each year to continue evaluating new approaches to because of allergic reactions to food, per CDC. In 2004, Congress passed the Food Allergen treat food allergies. The first year of funding Labeling and Consumer Protection Act (FALCPA), an has been awarded, and awards will be made amendment to the Federal Food, Drug, and Cosmetic in subsequent years based on the availability Act (FD&C) that requires the label of a food that of funds. contains an ingredient that is or contains protein from The prevalence of food allergy is rising a “major food allergen” declare the presence of the without a known cause, and no FDA- allergen in the manner described by the law. Congress passed the Act to make it easier for food allergic approved treatment for food allergy is consumers and their caregivers to identify and avoid yet available. To address this problem, foods that contain major food allergens. CoFAR scientists are working to develop immunotherapy approaches to treat food allergy. Immunotherapy—which can take many forms—involves exposing the immune system to an allergen in a controlled way to eventually reduce immediate allergic symptoms and ultimately bring about long- term relief. Among its accomplishments to date, CoFAR has demonstrated the clinical benefit of egg oral immunotherapy for treating egg allergy and has identified the most promising routes, doses and durations of An estimated 15 million egg and peanut immunotherapy for further study. In addition, CoFAR has identified Americans have food allergies, genes associated with an increased risk including 5.9 million for peanut allergy among Americans of European descent. children under age 18. CoFAR was established in 2015 and has been funded by the NIH’s National Institute of Allergy and Infectious Diseases (NIAID).

11 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 FALCPA went into effect on Jan. 1, 2006, and applies to 28.4 percent of new food and beverage products introduced both domestically manufactured and imported packaged in the United States made a low/no/reduced-allergen foods subject to FDA regulation. FALCPA identifies eight foods claim, but that number jumped to 62.2 percent in 2016. or food groups as the major food allergens: milk, eggs, fish What’s more, 56.1 percent of new product launches made (e.g., bass, flounder, cod), crustacean shellfish (e.g., crab, gluten-free claims compared to 23.8 percent in 2011. Only lobster, shrimp), tree nuts (e.g., almonds, walnuts, pecans), 11.5 percent of launches made GMO-free claims in 2011, peanuts, wheat and soybeans. While the Big 8 food allergens but that number soared to nearly 45 percent in 2016. identified by FALCPA account for more than 90 percent of all Gluten-Free Market Growth documented food allergies in the United States and represent Gluten free has gone from a trend to a mainstream the foods most likely to result in severe or life-threatening expectation, as consumers look for options across myriad reaction, food and beverage manufacturers must be aware categories. Driving the increased sales of gluten-free products that more than 160 foods have been identified to cause food are an escalating prevalence of health problems associated allergies in sensitive individuals. with diet, more and better-quality gluten-free food products and The law allows manufacturers a choice in how they identify their increasing availability in mainstream retail channels, and the specific “food source names,” such as “milk,” “cod,” favorable rulings on the definition of gluten free by FDA. “shrimp” or “walnuts,” of the major food allergens on the Effective Aug. 5, 2014, all packaged foods labeled gluten label. They must be declared either in the ingredient list, free must meet all requirements of the agency’s gluten-free such as “casein (milk)” or “nonfat dry milk;” or a separate labeling final rule, published in 2013. The rule was issued “Contains” statement, such as “Contains milk,” placed pursuant to FALCPA, and food manufacturers had one year immediately after or next to the ingredient list. to make the necessary changes in the formulation or labeling Lactose-free food products have seen an uptick in of their foods that voluntarily bear a gluten-free claim in the the global market due to the rising prevalence of lactose United States. intolerance, according to the “Business Opportunities in The final rule provides a uniform standard definition to help Food Allergy and Intolerance Products Market” report from the nearly 3 million U.S. consumers with celiac disease manage Transparency Market Research. What’s more, diabetic a gluten-free diet. Gluten-free claims must adhere to all foods are likely to present increased opportunity for players aspects of FDA’s final rule that defines gluten free as meaning operating in this market due to a shift in food trends toward the food either is inherently gluten free; or does not contain healthy and low-sugar variants and a surge in the number of diabetic patients around the world, the report noted. New product launches also have become a go-to strategy among players in the food allergy and intolerance products market to gain a competitive edge in a lucrative sector. In fact, data from Mintel found a distinct surge in product launches making low-allergen claims. In 2011, only

Primary Reasons for Buying Food Products Labeled as Gluten-Free, 2016 Reason Percent Some products that I buy for other reasons are marked gluten-free 30% Gluten-free products are generally healthier 29% A family member, friend or acquaintance has benefited from gluten-free diet 21% Gluten-free products are low-carb 21% To manage my weight 20% Gluten-free products are generally higher-quality 18% A member of my household has an allergy/sensitivity/intolerance to gluten, wheat or other ingredients 15% Recommendation of a public figure or celebrity 10% A member of my household has celiac disease 9%

Source: Packaged Facts, Gluten-Free Foods in the U.S., 6th Edition (August 2016); Packaged Facts July/August 2016 National Consumer Survey.

12 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 an ingredient that is: 1) a gluten-containing grain (e.g., spelt wheat); 2) derived from a gluten- containing grain that has not been processed to remove gluten (e.g., wheat flour); or 3) derived from a gluten-containing grain that has been processed to remove gluten (e.g., wheat starch), if the use of that ingredient results in the presence of 20 parts per million (ppm) or more gluten in the food. Also, any unavoidable presence of gluten in the food must be less than 20 ppm. According to the Packaged Facts report “Gluten- Free Foods in the U.S., 6th Edition,” sales of gluten-free foods in nine categories—salty snacks, crackers, fresh bread, Salty snacks pasta, cold cereal, baking mixes, cookies, flour and frozen bread/ dominated dough—reached nearly $1.6 billion in 2015 and are expected to reach $2 billion 2015 sales by 2020. Salty snacks dominated 2015 sales with 40 percent of the market share, while crackers and fresh bread had equivalent sales. The report noted fresh bread with had the second-highest growth in sales after salty snacks, while all other categories represented less than 10 percent in overall sales. % Interestingly, one-quarter of Millennials expect to purchase gluten-free packaged items more often now that gluten-free retail foods cannot have a detectable level of 40 gluten. Consumers who are better educated, have higher incomes and live in urban areas also are more likely to purchase or use gluten-free products. Packaged Facts of the consumer survey data from July/August 2016 showed U.S. consumers who buy gluten-free gluten-free products are twice as likely to do so because of a general perception that food market these products are higher quality (18 percent)—as they are higher priced—than because a household member has celiac share, while disease (9 percent). crackers Food and beverage makers have a and fresh tremendous opportunity in the gluten-free market, and they are betting on continued bread had growth of the gluten-free category by equivalent investing in product development, supply sales. chain and transparency. In February 2017, Nestlé unveiled a new multimillion-dollar facility that will expand the One- availability of gluten-free products in New Zealand and create new export opportunities quarter of for its Maggi and Docello foodservice brands. The new facility, at Nestlé’s Cambria Park factory in South Auckland, was created in Millennials response to surging demand for gluten-free products both in New Zealand and the region. The facility’s annual exports of more than expect to purchase gluten-free $60 million are expected to increase due to packaged items more often now the expanded capacity. “Our international research and that gluten-free retail foods cannot development (R&D) program now allow us have a detectable level of gluten. to create high-quality gluten-free products

13 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 The cold cereal sector—worth an estimated $28 billion in retail sales—is poised for huge opportunities in better-for-you innovations.

that taste great and maintain texture. Gluten free no longer means compromise,” said Nestlé New Zealand CEO Veronique Cremades. “Careful product development means a wide range of products will be made gluten free, including a selection of Maggi products sold in supermarkets for at-home use, and a wide range of Maggi flavor boosters, recipe bases, gravies, sauces, soups and Nestlé Docello dessert mixtures used in professional foodservice.” What’s more, the cold cereal sector—worth an estimated $28 billion in retail sales—is poised for huge opportunities in better-for- you innovations. Cue General Mills, which, along with Kellogg’s, commands 60 percent of the global ready-to-eat (RTE) cereal market. In 2015, General Mills announced its Lucky Charms would be joining five varieties of Cheerios on the gluten- free list. A number of Lucky Charms’ ingredients, such as marshmallows, already had gluten-free status, but the new formulation now includes the oat flour used to make gluten-free Cheerios. General Mills developed a method to sort out the small amount of wheat, rye and barley in its supply of whole oats that are inadvertently introduced at the farms where the oats are grown, or during transportation of the whole oats to the mill. This sorting ensures the oats used for the five Cheerios varieties and Lucky Charms allow the cereal maker to meet FDA’s guideline for gluten free. Progresso launched its Good Natured line of gluten-free soups in October 2016. Three varieties of soups are vegan and use different bean bases and vegetable purees to achieve creamy texture without the use of dairy ingredients. Good Natured soups also are non-GMO and are free from artificial colors, flavors and preservatives.

Natural Food Additives on the Rise The 2016 Packaged Facts report “Ingredients Consumers Avoid, 2nd Edition” noted the expansion of the free-from movement has seen a demand from consumers for the replacement of artificial processing ingredients such as preservatives, colors, flavors and food additives with natural ingredients. In the case of artificial preservatives, consumers also are opting for products that have no preservatives at all. Companies specializing in preservatives and other food additives are working hard to come up with alternatives to the artificial ingredients

14 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 that increasing numbers of consumers are trying to avoid. So, too, are the leading packaged food manufacturers. In 2015, Nestlé USA announced it was removing artificial flavors and FDA-certified colors from its chocolate candy products. The conversion was completed by year’s end and affected more than 250 products and 10 brands. In 2016, Kraft Foods (now Kraft- Heinz) discontinued the use of artificial colors and preservatives in its Original Kraft Macaroni & and replaced the synthetic colors with those derived from natural sources, including paprika, annatto and turmeric. That same year, Unilever removed all artificial colors and flavors from its Becel brand. In 2016, Mars Inc. announced an ambitious plan to remove all artificial colors from its portfolio of human food products by 2021. While many of the company’s products are already free of artificial colors, 50 brands across the range of its chocolate, gum, confection, food and drink businesses will be affected by the change. General Mills announced it would phase out artificial flavors across all brands by 2017; Campbell Soup Co. committed to stop using artificial ingredients across all brands in the United States by 2018, and the Kellogg Co. said it will ditch all artificial colors and flavors across all brands by 2018. In September 2016, Progresso began using only 100 percent antibiotic- and hormone-free chicken breasts in its 36 chicken soup varieties.

Dairy-Free Alternatives Increased consumer comfort with dairy alternatives and scrutiny of dairy foods are fueling intense competition between the dairy and dairy alternative sectors, particularly beverages. Sales of plant-based dairy alternatives, especially , show no signs of slowing and new alternative

Sales of plant-based dairy alternatives, especially almond milk, show no signs of slowing and new alternative sources, such as cashews, are expected to drive the alternative segment even faster and higher over the next several years.

15 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 U.S. retail sales for dairy and dairy alternative beverages reached $24 billion in 2014, representing a 4 percent increase from 2013.

sources, such as cashews, are expected to drive the alternative segment even faster and higher over the next several years. U.S. retail sales for dairy and dairy alternative beverages reached $24 billion in 2014, representing a 4 percent increase from 2013, according to the “Dairy and Dairy Alternative Beverage Trends in the U.S.” report from Packaged Facts. The market is expected to reach $31.5 billion by 2019. Strong growth in the almond milk segment is the single most significant development in market trends in dairy and dairy alternative beverages. Further expansion of the market for plant-based dairy alternative beverages will be driven by additional options, most notably in terms of new product launches like cashew milk. While sales increased for both segments, the past few years have seen the dairy alternative sector increasing its share of the overall market to now account for 20 percent of the industry, according to Packaged Facts. It’s not surprising that almond milk is leading sector growth. Need proof? From 2013 to 2014, dollar sales of almond milk increased 40 percent on unit while volume increased just slightly below that figure. sales likewise have grown by double digits. Looking ahead, expansion of the market for plant-based dairy alternative beverages will inevitably be driven by more than the growth of almond, cashew, coconut and even milk sales. Not to be overlooked is the market for dairy-alternative foods that appeal to a wide range of consumers: those with , dairy-free consumers (including vegans), those who don’t prefer dairy-laden products, and those looking to venture out and try new flavors.

Free From’s Future The free-from market is rife with opportunity, especially in key areas such as allergen free, gluten free and dairy free. To be successful, product manufacturers and marketers must understand consumers, determine underserved product categories, and launch innovative products that meet consumer demand while delivering on label claims.

16 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017

On-Label Certification Claims Increase Consumer Appeal

by Katie Das

he product label is the first thing people see Organic when they shop and an important billboard for While standards differ worldwide, organic farming establishing shared values with consumers. and production in general Are they looking for an organic product? GMO center on practices that T support ecological balance (genetically modified organism)-free? Are animal rights and biodiversity, with a focus on or being free-from antibiotics important to them? Is cycling resources. For crops, this means no product purity a concern? prohibited chemicals, sewage sludge, radiation or genetic engineering are used. For organic animal products such as eggs, dairy and meat, there For organic On-package claims help consumers is an additional aspect: the chickens and cows animal understand how well a product fits into their are not given antibiotics or growth hormones. It products individual lifestyle. However, making an on- such as eggs, is important to note when organic animals get pack claim is not enough for today’s conscious dairy and sick, they are of course given antibiotics, but their meat, there is shoppers—they want proof. This is where organic classification is permanently revoked. an additional established “stamps of approval” such as USDA Although requirements vary by country, most aspect: the Organic or Non-GMO Project Verified can create organic programs require an organic operation chickens instant credibility and establish trust among to demonstrate it is protecting natural resources, the consumer, the product and, by extension, and cows conserving biodiversity and using only approved are not given the manufacturer. Some of the most common substances in the production and handling of antibiotics certifications that exist in the marketplace today organic produce and livestock. or growth include those focused on organic, non-GMO, The land on which organic farmers grow hormones. gluten-free, animal welfare and honey. organic crops must not be treated with

18 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 National Organic Program (NOP) livestock standards require that organic producers feed livestock agricultural feed products that are 100 % organic.

any prohibited substances for at least three years before the harvest of the first organic crop. Instead, soil fertility and crop nutrients are managed through non- chemical methods, such as tillage and cultivation practices, crop rotations and cover crops. Pests, weeds and diseases are managed through physical, mechanical and biological controls. Livestock requirements address both the animals used for meat and animal products such as milk and eggs. National Organic Program (NOP) livestock standards require that organic producers feed livestock agricultural feed products that are 100 percent organic. Organic food products such as eggs and milk must be handled separately from conventional food products and never intermixed. and milk products must be processed, either on-farm or off-farm, in a certified organic plant. Independent, third-party certification of organic food systems is the foundation of domestic and international organic food trade. Certification provides the guarantee that organic integrity is maintained. It is designed to verify every step of the organic chain—from the land on which the product is grown, to the producers growing the product, to the post-harvest facilities preparing the product, to the processing and handling facilities transforming the product. The No. 1 labeling Non-GMO concern for U.S. A recent study by the Consumer Reports National Research Center found the consumers is No. 1 labeling concern for U.S. consumers is GMO (genetically modified organism) verification. In fact, 92 percent said food products should show proof of GMO or non- GMO (genetically GMO content. modified organism) Non-GMO certification provides this assurance by setting requirements for product and ingredient segregation, traceability, supplier approval, monitoring and testing. verification. Tolerance levels are in place that account for the realities of the broader supply chain risks and limitations, ensuring that a market exists to allow more businesses to enter the non-GMO field in order to meet the growing consumer demands worldwide and driving continuous improvement in the supply of non-GMO agricultural value-added product.

Gluten-Free Gluten-free products aren’t just the latest fad—they are a necessity for people who suffer from gluten intolerance or gluten sensitivity. Gluten is a protein found in wheat, rye and barley that is responsible for the elastic nature of dough. For many people, this protein is easily digestible and has no effect on their overall health. But for those with any type of gluten intolerance, the ramifications of eating gluten can range from constipation and bloating to diarrhea and malabsorption, which can result in malnutrition. For individuals with gluten intolerance or celiac disease, a gluten-free diet is essential.

19 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 In 2013, FDA defined“gluten free” as containing less than 20 parts per million (ppm) of gluten for food labeling.

In 2013, FDA defined “gluten free” as containing less than well-managed pasture or range. Standards also address other 20 parts per million (ppm) of gluten for food labeling. This areas of sustainability, such as prohibiting the use of antibiotics helps consumers, especially those living with celiac disease, (except to treat sick animals), drugs for growth promotion and to be confident that items labeled gluten-free meet a defined animal by-products in feed, but standards do not prohibit use of standard for gluten content. chemical pesticides or GMO feeds. Producers making a “raised There are a number of gluten-free testing and certification without antibiotics” claim can choose to have this claim verified programs administered by independent third parties that by the USDA’s Agricultural Marketing Service (AMS) through its allow manufacturers to support their label claims, meet the Process Verified Program. federal regulation and gain consumer trust. For example, NSF International’s gluten-free certification program requires True Source Honey companies to have a gluten-free compliance plan and undergo Honey has been in the news lately as one of the most onsite inspections of their production and handling facilities. adulterated foods—it has been mixed with everything from The onsite audit requirement also helps verify that product corn syrup to sugar to harmful chemicals. Honey is known for manufacturers and handlers have procedures to prevent its nutritional properties and taste, so it is commonly found in contamination and commingling, which is critically important many products, including those with organic and non-GMO for those with gluten allergies and gluten intolerance. The claims. Consumer awareness of honey adulteration problems Gluten-Free Certification Program (GFCP) trademark provides is prompting many to closely examine the honey they are the added assurance to consumers that products carrying purchasing at retail. the trademark have met stringent requirements for the True Source Honey certification manufacture of gluten-free products. offers a way to ensure product purity, verify origin and establish Raised Without Antibiotics compliance with U.S. and Studies suggest more than half of the international trade laws. This is done antibiotics in the United States are used through a combination of stringent in animal food production. At the same independent audits, sampling and time, over 60 percent of consumers are container shipment oversight to concerned about antibiotic use and its risks trade honey from beehive to bottle. in meat and dairy products. This increased In summary, transparency awareness and demand for transparency and trustworthiness is important has resulted in a 14.6 percent market in lifestyle, dietary, religious and sourcing label claims for growth in antibiotic-free labeled products. manufacturers, retailers and consumers. In today’s globalized According to the World Health Organization (WHO), the world, consumers and retailers want assurances that the overuse of antibiotics in both human and veterinary medicine product “walks the walk” when it comes to sustainability, clean has led to the development of superbugs—bacteria that are label claims and transparency of source. Independently verified resistant to antibiotics. The rise of antibiotic-resistant bacteria claims and certifications help to secure trust and establish has been identified as a high-priority public health concern by credibility for products consumers are seeking. the WHO, United Nations and the Centers for Disease Control and Prevention (CDC). Katie Das is the senior business development There are several verification marks for Raised Without manager for food safety and quality at NSF Antibiotics; for example, NSF International’s Raised Without International, where she manages business development for supply chain, organic and Antibiotics certification mark helps consumers quickly identify consumer-driven values certifications for food that the product has been independently certified and assures manufacturers of all sizes. Das has more than 18 them that animal products have been produced without years of marketing experience in both CPG and B2B and as an entrepreneur. NSF is a global independent exposure to antibiotics. The Animal Welfare Approved (AWA) organization that writes standards, and tests and label certifies that animals raised for meat, dairy or eggs were certifies products for the food, water, health sciences and consumer goods raised humanely on a family farm from birth to slaughter, on industries to minimize adverse health effects and protect the environment.

20 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 21 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 CATEGORY INSIGHT

Free-From Bakery Offers More Than the Baseline

by Melissa Kvidhal

t wasn’t long after Oprah Winfrey stretched her arms Indeed, though the Celiac Disease Foundation states just 1 percent of people have celiac out wide in a commercial for Weight Watchers and disease, Euromonitor says a growing number proclaimed, “I ... love ... bread!” that the internet of consumers believe gluten is fundamentally exploded with memes and gifs in honor of America’s unhealthy and seek to avoid it, thereby hurting I conventional bread sales. great love of baked goods. On the other side of the coin, Mintel’s “Free- But while the anecdotal love affair between From Food Trends” report, published June consumers and carbs—bread, cookies, cake 2015, found while products with free-from Packaged and other delights—is strong, the retail data tells claims may not make up a huge share of the breads quite a different story. According to the February market at the moment, the claims lend these suffered both 2017 Euromonitor International report “Baked volume and products a healthy halo that spurs their growth value declines Goods in the US,” packaged breads suffered both in a retail environment demanding better-for- of about volume and value declines of about 1 percent in you alternatives overall. Further, roughly half of 2016. The market research firm determined this Millennial consumers agreed products with free- % decline was the direct result of two consumer from claims are worth a premium at the register. 1 trends: ongoing and growing consumer negativity When it comes to baked goods, specifically, in 2016. toward processed foods, and consumers’ health attributes were the motivating factor for increasing aversion to carbohydrates and gluten. about half of consumers who said they purchased

22 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 more bread in 2013 than they did in 2012, as per a 2014 report from Mintel. With the perceived health advantage ascribed to free-from products by consumers, one must wonder: how many of these healthier baked goods purchases were breads carrying a free-from claim? As it turns out, likely, quite a few. Mintel noted sales of gluten-free bread rose 66 percent between 2013 and 2015. As the trend leveled out, Euromonitor pegged the retail growth of gluten-free bread and baked goods at nearly 11 percent in 2016, reaching about US$300 million in the United States. Just one year later, SPINS reports sales of gluten-free breads and baked goods grew nearly 12 percent between 2016 and 2017 to reach more than $416 million. Globally, the gluten-free bakery and confectionery food market is $1.5 billion per Euromonitor, and Technavio expects it to grow at a compound annual growth rate (CAGR) of 11.8 percent between 2016 and 2021. The reason for Technavio’s positive outlook should encourage any U.S.- based free-from commercial baker or bakery brand; the market research firm cited growing interest in gluten-free baked goods in North America, specifically, as the main driver behind such anticipated global growth. Sales of gluten-free breads and There are a few reasons for gluten-free bakery’s surge in popularity. “The baked goods grew nearly growth in the category can be attributed to a growing number of diagnoses among [celiac disease] sufferers,” said Freya Ivory, senior brand manager, % BFree Foods, a Dublin-based brand with a U.S. headquarters in Norristown, Pennsylvania. “But the biggest growth, we at BFree believe, is from new 12 shoppers in the category that buy for health reasons.” between 2016 and 2017 to Indeed, a June 2016 report on packaged bread from Mintel found the reach more than majority of consumers who opt for gluten-free options have not been diagnosed with celiac disease and instead cite more general health-related $416 reasons for their choice. The success of gluten-free breads and baked goods is just one part of the story. Baked products bearing other free-from attributes are enjoying rising million. success as well. SPINS estimated sales of bread and baked goods bearing a Non-GMO Project Verified seal grew about 23 percent between 2016 and 2017 to reach $573 million; sales of those with a non-GMO (genetically modified organism) product claim (without the seal) grew 32 percent; and sales of allergen-friendly options (labeled “allergen free,” “allergen friendly,” allergy free” or “free from the eight common allergens”) soared nearly 90 percent over the past year.

Mintel found the majority of consumers who opt for gluten-free options have not been diagnosed with celiac disease and instead cite more general health-related reasons for their choice.

23 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 Products bearing a preservative-free claim also are making waves in this space. Mintel reported breads bearing additive- and preservative- free claims have increased steadily as a percentage of launches since 2011. By 2016, these claims were the second-most prevalent on new bread launches, making up 29 percent of launches, and lagging behind only kosher claims in popularity. And while preservatives may not captivate headlines the way gluten and GMOs do, the impact of this “free from” trend is significant. To compare, non-GMO claims appeared on 13 percent of launches in 2016 and gluten-free claims graced just 10 percent of new labels, despite Mintel findings that 12 percent of all consumers who eat bread said gluten-free is a priority for them. Part of the reason for the surge in free-from bakery sales and popularity is simple availability, with a range of brands offering a variety of baked goods featuring a range of claims. “The market is greatly in flux,” said Joanne Adirim, founder, HannahMax Baking. “We have extremes and everything in between. We have startups focusing on particular niches—just being gluten-free, just being paleo or just being vegan. But we also have companies creating products free from all major Our allergens, and ones staying middle of the road—maybe they try to clean We up their ingredients, or not.” best-selling Another reason for this growth is that retail outlets have have startups chocolate wholeheartedly embraced this trend. According to Technavio’s report, focusing on muffin is Sprouts Farmers Market, an Arizona-based chain of natural and organic particular % grocery stores, has a dedicated section for certified gluten-free products. niches—just 33 But retail support is not limited to the natural channel; the mainstream being gluten- vegetables, supermarket chain Publix labels its gluten-free offerings with a special free, just being purple icon on the shelf or product bin to drive sales. with zucchini More directly, there wouldn’t be increased availability and sales paleo or just and carrots as without increased consumer demand. And this demand is at the center being vegan. the first two of how the free-from bakery niche can grow so explosively when the — Joanne Adirim, ingredients on bakery category overall is sluggish. founder, HannahMax the ingredient Baking What Consumers Want statement. What consumers want from a “free from” baked good runs the gamut. — Andrew Reichgut, Ivory pointed out shoppers who want gluten-free options also tend to executive vice desire products free from added sugar, GMOs, artificial preservatives president, Classic and other allergens—especially the consumers who are coming Cooking to the category not because they have celiac disease, but because they are seeking overall health benefits. It stands to follow, then, that “they are also seeking out foods which are richer nutritionally,” she added, and BFree answers this call with not just allergen-free breads, but also varieties that are high in fiber, low in fat and boosted with protein. A label that’s gluten-free is also just the starting point behind the nutrient-boosted offerings at Classic Cooking, makers of Garden Lites frozen muffins. “Our best-selling chocolate muffin is 33 percent vegetables, with zucchini and carrots as the first two ingredients on the ingredient statement,” said Andrew Reichgut, Classic Cooking’s executive vice president.

24 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 Organic products, simply by virtue of being organic, are typically ‘free from’ many of the ingredients and ingredient types that consumers are looking to avoid, which only contributes to the growing interest in organic options.

— Rebecca Gottlieb, senior associate brand manager of bread and grains, The , the parent company behind Rudi’s Organic Bakery

Indeed, Mintel reported 20 percent of 18- to want something different: products that are also 34-year-olds said added nutrients are important free from pesticides, noted Rebecca Gottlieb, even when purchasing cakes or pies—baked senior associate brand manager of bread and treats traditionally seen as an indulgence. Pair grains, The Hain Celestial Group, the parent these findings with the fact that many consumers company behind Rudi’s Organic Bakery. And this choose gluten-free baked goods for perceived makes sense, as a primary concern surrounding health benefits, and it’s no surprise that brands the safety of GMOs is the fact that many are are responding with sweet gluten-free treats that engineered to withstand increased amounts of also pack a nutritional punch. pesticides. This, in turn, is bringing the “free Overall, Some examples include Ape Man Food Co.’s from” bakery consumer over to the organic whatever their Beet Red Velvet Cake, a gluten-, dairy- and label, she said. ingredient soy-free option that features a cashew “Organic products, simply by virtue of frosting; Life Choice Foods’ Chocolate Fudge being organic, are typically ‘free from’ many preference, Protein Brownie, a treat free from high fructose of the ingredients and ingredient types that free-from corn syrup (HFCS) and offering 7 g protein per consumers are looking to avoid,” she added, bakery serving; and Sejoyia Foods’ Coco-Roons Mini which only contributes to the growing interest in shoppers Brownie, which is gluten-free and non-GMO, organic options. generally and sweetened with organic maple syrup for Overall, whatever their ingredient preference, also tend to added vitamins and minerals. free-from bakery shoppers generally also tend Pairing gluten-free with boosted nutrition is to overlap with artisan bakery shoppers, said overlap with a trend that applies to breads as well. Category Andrew Blok, brand director, La Brea Bakery, artisan bakery leader Udi’s Gluten Free, for example, baked its meaning they seek products baked using shoppers, first gluten-free loaf in 2008, and by 2011 had old-world methods. Euromonitor data supports meaning they launched two nutritionally enhanced breads: this, with artisanal offerings dominating the seek products Ancient Grain Millet Chia (rich in B vitamins, category with a 48 percent share of all baked calcium, protein, fiber, omega-3s and other goods. La Brea Bakery’s non-GMO Reserve baked using nutrients) and Omega Flax and Fiber (boasting bread, launched 2016, meets this trend with a old-world protein, antioxidants, fiber and a blend of farm-to-table angle, using single origin heirloom methods. omegas 3, 6, and 9 in each slice). Fortuna Wheat. — Andrew Blok, Similarly, non-GMO is a starting point. But Finally, across the board, most brands agree brand director, while added nutrition dominates the gluten-free that taste is still king, even when consumers La Brea Bakery sector, non-GMO bakery consumers tend to require non-GMO or gluten- or allergen-free

25 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 foods. “Consumers are open to trying everything and anything, but at the end of the day, if it tastes bad they won’t buy it again,” Adirim said. “As the saying goes, the consumer wants to have their cake and eat it, too.” Plus, as Ivory pointed out, gluten-free options and other “free from” baked goods often carry a price premium—so they better taste as good or better than conventional options.

Inherently Innovative In a category like bakery, going “free from” anything—whether it’s gluten or eggs, Free From ... Cages? preservatives or pesticides—can be tricky. That’s why, by its very nature, the free-from bakery ast year, Mondelez International (the parent sector is an inherently innovative one. company behind such baked favorites For Garden Lites muffins, formulators had the toughest time ensuring a proper shelf life. Las Oreo and Nabisco cookies) made a Thankfully, freezing the product provided a simple commitment to fully transition to using cage- and differentiating solution. At other bakeries, the free eggs in the United States and Canada by challenges weren’t as straightforward. 2020. Why? It might be because, according to At HannahMax Baking, Adirim, who is a pastry Mintel’s 2015 “Free-From Food Trends US” report, chef, knew it would be easy to ensure non-GMO 43 percent of consumers put a cage-free/free-range ingredients, as the brand has been a non-GMO baker for more than 18 years. Formulating claim among the top five claims they seek when gluten-free Cookie Chips, though, was more buying foods. of a challenge. But it’s not just about treating animals better— “Trial after trial after trial led to the right though, that’s certainly part of it. Transitioning solution for our product,” Adirim said. Today, she to cage-free eggs is a smart business decision. said the process may not be as difficult for new Mintel said cage-free eggs, in general, cost roughly formulators, thanks to gluten-free alternatives like Cup for Cup or Measure for Measure that 15 cents more per dozen to produce; yet, they can completely substitute flour. “I’ve tried the command a much higher price at retail, with eggs Measure for Measure for fun on our brownies, carrying the claim costing more than twice the price and they were awesome,” she added. of standard eggs. For finished products, then, cage- Formulation was also a challenge for gluten- free claims could carry similar, albeit perhaps less free brand BFree Foods, Ivory said, when it made concentrated, weight. a shift early on to also be completely allergen- free. “That brought some challenges, as most Brands that don’t go cage-free risk being gluten-free production uses egg or dairy to last to this growing trend but, worse, they risk replicate the structure that you lose when gluten garnering an image of being unconcerned with is removed from the bread,” she explained. The animal welfare—certainly impactful, noted Mintel, brand needed ingredients suitable for vegans and considering 51 percent of Millennials put cage-free allergen-free consumers, but also was looking for in their top five most important claims. ingredients that would mimic structure, be natural and offer some nutritional benefit. Ultimately, formulators found the solution in pea protein and apple fiber. The result is a line of products that are free from wheat, dairy, eggs, nuts and soy,

26 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ are non-GMO, and are calorie-responsible (for example, the BFree Multigrain Wraps clock in at just 100 calories per wrap). Where bakery brands are leading the way is with standards—because, when it comes to allergens, especially, there cannot be any doubt on the part of the consumer that the product is truly free from what it claims. Homefree LLC produces a variety of cookies without gluten, GMOs, peanuts, tree nuts, wheat, dairy, soy, fish, shellfish or sesame in a dedicated facility that never includes such ingredients. Its products ship nationally for foodservice, and appear on retail shelves in the United States, Canada and the U.K. “As the mom of a child with food allergies, I know that an allergen trace smaller than you can see can be life threatening,” said Jill Robbins, As the mom of a child company president. “Therefore, from ingredient with food allergies, I know sourcing to testing, to hiring and training staff, that an allergen trace smaller we have allergen safety at the forefront of our than you can see can be life decision-making.” Homefree recently made a considerable investment to become Safe threatening. Quality Food (SQF) level 3 certified, denoting its — Jill Robbins, president, Homefree LLC comprehensive implementation of safety and quality management systems.

The Future of ‘Free From’ According to Reichgut, the biggest trends influencing the “free from” bakery market are gluten-free and nutrition-rich. If you ask Blok, those with the most staying power are gluten-free and non-GMO. “I think non-GMO is here to stay for the long haul,” Adirim agreed. “And what many thought as a fad, [gluten-free] has turned into a strong grocery presence.” The good news is ingredient suppliers have taken note, and made gluten-free and non-GMO ingredients part of their standard portfolios to meet demand. “For many families, sandwich bread is a staple, and something that gets purchased and consumed on a regular basis,” Gottlieb

27 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 said; and consumer education about non-GMO, gluten-free the mainstream. “We found a supplier that could grind sweet and even organic has made a big difference when it comes to potatoes down into a fine flour, and we were able to incorporate purchasing and, therefore, ingredient sourcing decisions. it into our baking,” she added. The result? A Sweet Potato Wrap As a result, free-from bakers have the luxury to spread that’s suitable for vegans and high in both fiber and vitamin E (in their wings when it comes to flavor and other trends. “Our aim addition to being gluten-, wheat-, dairy- and egg-free, non-GMO at BFree is to make gluten-free normal, tasty, nutritious and and kosher). exciting and, with that in mind, we aim to replicate some of The bottom line? Ivory said: “We believe that success and the trends in mainstream bakery and grocery in the ‘free from’ growth will come from innovation in free from,” whether it’s with aisle,” Ivory said. For example, the brand started exploring conventional bakers dipping their toes into “free from,” or tried- using sweet potatoes over white potatoes in its formulations, and-true “free from” bakers capitalizing on ingredient availability a direct result of the ingredient’s ever-growing popularity in to offer products that can compete with conventional.

AT THE Bakery Counter

Free-from trends that undoubtedly IDDBA’s education coordinator, since keeping drive growth in retail’s middle aisles haven’t machinery clean or entirely separate can be a yet reached the perimeter where in-store challenge. But packaged brands can expect bakeries reside. According to the 2017 “What’s some competition from in-store bakeries soon, in Store” report from the International Dairy- as gluten-free trends grow: “Some retailers do it Deli-Bakery Association (IDDBA), a trade well and others are catching up,” Richard added. group for food retailers, distributors and Free-from sugar or free-from fat aren’t manufacturers, only 5 percent of fresh baked claims that carry weight in this section, he goods have health claims, which represents said, since fresh-baked goods are often seen a huge opportunity for in-store bakeries and as an indulgence. “Even people who place a foodservice brands that are currently “irrelevant” high emphasis on health and wellness and may to health-conscious consumers. have very active lifestyles are okay with treating The wellness characteristics that resonate themselves with real sugar, and icings today are different from the ones of years past, that aren’t necessarily healthy,” Richard said. the report stated. Whereas non-fat, calorie- Bakeries are starting to offer more single-serve free and sugar-free were the free-from claims options to appeal to healthier eaters, rather than consumers previously wanted in the bakery, now changing their recipes entirely. they’re looking for non-GMO, free-from artificial Where in-store bakeries really shine with ingredients, nut-free, grain-free and, of course, regard to the free-from trend is when it comes to gluten-free. But these demands are not without preservative-free claims, simply by nature of the their challenges, especially for bakeries in the fact that these products are fresh. They’re not early stages of adopting this trend. formulated with preservatives, and consumers “Not all bakeries have the ability to produce don’t expect these products to last for weeks gluten-free goods effectively,” said Eric Richard, and weeks.

28 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 CALL FOR ENTRIES

Is Your New Innovative Product a Game Changer? Tell Us About it. The 6th Annual SupplySide CPG Editor’s Choice Awards will recognize innovative finished product launches from CPG companies in a variety of categories. All finalists will be showcased through the SupplySide Global Health & Nutrition Network brands and winners will be announced at SupplySide West 2017 in Las Vegas. DEADLINE FOR If you’ve recently launched a cool, innovative finished product you think should be ENTRIES IS JULY 31, 2017 recognized – we want to hear about it and its unique value to consumers!

Nominate your product today at west.supplysideshow.com/en/cpg-awards INNOVATION IN ACTION

Canyon Bakehouse: Love Bread Again

by Karen Butler

hey say necessity is the mother of invention, in which one-size-fits-all, so we made it a priority to make our breads case Christi Skow’s 2007 celiac disease diagnosis free from seven top allergens.” Twas the impetus behind Canyon Bakehouse, a certified That means products are not only free of gluten, but gluten-free bakery line comprised mostly of bread, bagels dairy, nuts (tree nuts and peanuts), soy, casein and sesame. and buns. Additionally, the baked goods are always 100 percent whole “Adapting to a gluten-free lifestyle was hard, and out grain and kosher parve. of everything I missed bread the most,” Christi, one of the company’s three co-founders, recounted. “The options available Market Differentiation at the time were far from the bread I was used to—they didn’t The company launched in 2009, when the concept of gluten-free bread was just beginning to gain traction. “We have the taste and texture of ‘real’ bread. I craved being able to felt we had an opportunity to stand out. Our team inherently make a sandwich or something as simple as toast.” Her husband Josh worked with friend and master baker Ed Miknevicius to “create and launch a recipe that was delicious Canyon Bakehouse but also had a clean label, including non-GMO (genetically Headquarters: Loveland, Colorado modified organism) ingredients and using 100 percent whole canyonglutenfree.com grains,” Christi shared. “We also knew food allergies aren’t

30 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 We feel that being a family- owned bakery that was founded on solving a problem that our family had—having celiac— is very powerful.

— Canyon Bakehouse founders Josh Skow, Christi Skow, and Ed Miknevicius

“We test all ingredients for gluten both in-house and via an independent third-party lab. With a ZERO gluten standard, our third-party test results are ‘undetectable’ or below 5 parts per million (ppm),” she affirmed. Additionally, Christi emphasized the key contributions of fellow co-founder Miknevicius, who has been baking bread understood the need for breads that are safe, taste great and for 25 years. “It’s not ‘bread-like,’” she stated. “We make ‘real don’t make you compromise on the quality of the ingredients,” bread’—it just doesn’t have grains that contain gluten.” she noted. “Our tagline is ‘Love Bread Again’ because we’re The importance of relationship extends to the brand’s fans, serving people who grew up with bread, had to give it up and who Christi referred to as “part of our family.” And one thing are now able to safely, and without compromise, love bread this family does is listen. “In 2016, we removed sesame from again. It’s a very emotional experience for many.” our Everything Bagels and our facility because fans told us For Christi, the brand’s roots are compelling. “We feel that that it was an allergen that concerned them,” Christi shared. being a family-owned bakery that was founded on solving a “We care deeply about their thoughts, ideas and concerns. problem that our family had—having celiac—is very powerful. Our entire team comes to work each day with the passion to We are not just a brand that is owned and run by a large food serve the gluten-free community. We believe that if we can company,” she explained. “We feel we can have a one-on-one support gluten-free fans with outstanding baked goods and relationship with people who are going through the same thing over-the-top consumer service, they will reward us by sharing we went through.” their experience and our baked goods with their own friends Christi’s personal experience also contributes to Canyon’s and family.” focus on safety. The Loveland, Colorado-based bakery is Canyon’s advocacy in the gluten-free community has dedicated gluten-free, so “no gluten products ever enter the resulted in a wide philanthropy base. In 2016, the company building,” which is also SQF (safe quality food) level 2 certified. donated more than $30,000 in products and contributions to

Naturally gluten-free and boasting the likes of iron, fiber, omegas and antioxidants, ancient grains are a go-to retail trend— and a mainstay in Canyon’s 7-Grain bread.

Millet Buckwheat Sorghum Quinoa Brown Rice Teff Amaranth

31 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 organizations such as celiac support groups and real-life slices of bread,” noted Josh Skow, kids’ gluten-free summer camps. “We love that Canyon Bakehouse’s co-founder and CEO. “We our products are able to help so many people have been working on Heritage Style loaves for with food allergies, and love to be able to help a while. We knew how challenging it would be to charities and organizations that share our mission try to make a larger loaf. You can’t just add more and values,” Christi said. dough to a larger pan and yield a large gluten- The Larger Loaf Challenge free loaf. Gluten-free breads won’t rise the same Canyon Bakehouse products can be found way that wheat breads do. So, we had to work on in the United States and in Canada in more finding both the right recipe as well as attempt We’ve than 10,000 stores, including Target, Whole various baking approaches.” always looked Foods Market, Sprouts, Natural Grocers, Publix, Wegmans and Costco. At the end of 2016, the at the potential product line included four varieties of classic for a larger bread (7-Grain, Mountain White, Cinnamon loaf—either Raisin, Deli Rye Style), hamburger and hot dog more slices per buns, Everything and Plain bagels, a specialty loaf or larger loaf of Rosemary & Thyme Focaccia, and dessert/ slices—and snack Brownie Bites. January 2017 began the national rollout of ultimately, Heritage Style—larger loaves in Honey White or we listened to Whole Grain. The product was named a finalist feedback from for Best New Special Diet Food as part of 2017’s our consumers NEXTY Awards at Natural Products Expo West. on wanting The competition highlights the “most progressive, normal, real-life innovative, inspiring and trustworthy” goods in the natural products industry. slices of bread. “We’ve always looked at the potential for — Josh Skow, a larger loaf—either more slices per loaf or Canyon Bakehouse’s larger slices—and ultimately, we listened to co-founder and CEO feedback from our consumers on wanting normal,

32 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 Once the company began to see success with formulations, it took about a year to go from ideation to full production and national distribution. “It was a labor of love,” Josh admitted. “Gluten-free shoppers have become used to bread that’s almost half the size of a ‘normal’ slice of bread, and there’s Food something special about grabbing a full-size slice of bread and feeling that normalcy again.” For Creating Brand Advocates According to Josh, the company had fun with the Heritage Thought Style launch. It created two teaser videos to alert fans something “big” was coming, using social media for an exclusive sneak peek. Fans were invited to post pictures of their giant “sammies” with the hashtag #WideLoaf, and blogger friends and reporters were sent samples of the new breads. Making thoughtful The brand boasts more than 254,000 Facebook followers, adjustments based on 21,000 on Instagram, and nearly 8,000 additional between Twitter and Pinterest. consumer feedback can The new launch was the company’s star attraction at Expo West, as well. “We added elements to our booth to showcase pay off when building a the Heritage Style loaves, including a 7-foot replicate at the end fan base. of a red carpet where attendees could have their photo taken,” Josh shared. “We also invited several bloggers attending the show to have a Sammie Smackdown where they all built their Creating brand advocates big sammies in a timed competition at our booth.” The video can be seen on the company’s site. can be as simple as The sandwich-building competition was an extension of getting product samples 2016’s Sammie Smackdown social media campaign, where bloggers were invited to make their most creative sandwiches to a carefully vetted group of bloggers.

Contributing products to organizations with a similar mission helps build targeted brand awareness.

The company posted this whimsical teaser video on its social media platforms to announce something “big” was coming.

33 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 using Canyon Bakehouse breads in competition for a donation to the charity of their choice. “Our fans voted for their favorite sammie, their fans voted and the charities got involved as well,” Josh stated. “We plan to host another online Sammie Smackdown this year and will likely feature Heritage in that campaign.” Christi said the advocacy model works well across all the brand’s marketing platforms, from social media to influencer relationships. “We work to get products into peoples’ hands so that when they find our brand and try our products, they then tell a friend and ultimately begin to advocate on our behalf.” A number of new bread and bagel SKUs are expected to Using clever phrases such as “The new bread on the block” and launch in summer 2017, making the way for more videos “Caution: Wide Loaf,” Canyon Bakehouse took a lighthearted and promotions. approach with its recent product introduction.

Spreading the Word In addition to promoting social media and attending trade events, Canyon’s website is a treasure trove of information for people facing food allergies and intolerances. It features a blog, retail coupon, and wide array of videos capturing everything from the in-person Sammie Smackdown competition to clever do-it-yourself recipes. The latter generally range from 30 seconds to a minute and show how easy it is to create delicious gluten-free snacks and meals such as pizza bagels, five kinds of avocado toast or Thanksgiving stuffing. The website also houses the company’s 2016 Sustainability Update, which reinforces the brand’s mission and values (including a commitment to transparency), as well as other key tenets of its operations. Specific to sustainability, energy usage and water conservation efforts are detailed. For example, in 2016, the company’s “Green Office” initiative—which included updating to high-efficiency appliances, replacing paper towels with energy-efficient hand dryers, and installing LED lighting throughout the entire bakery—contributed to a 23 percent decrease in energy usage, despite a production increase of 24 percent. Other efforts included implementing 100 percent recyclable packaging, using biodegradable “green” cleaners and reducing emissions by consolidating transportation. The brand also goes on the road with its “bread mobile” in a Love Bread Again Tour (#LoveBreadAgainTour), trekking cross-country to hand out samples at key expos, festivals and fairs—whether focused on gluten-free and food allergies, or something broader such as art or foodies. With Christi and her son both diagnosed with celiac disease, the company’s inspiration remains close to home: to provide customers with baked goods that are safe and delicious for their families. “We take this into consideration with all aspects of our business, from sourcing the highest-quality ingredients to really hearing feedback from our fans and making adjustments where we can,” Christi concluded.

34 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 SAVE THE DATE SEPTEMBER 25-29

EXPO HALL SEPTEMBER 27 & 28 MANDALAY BAY LAS VEGAS

LEARN MORE AT WEST.SUPPLYSIDESHOW.COM INNOVATION IN ACTION

Nature’s Bakery: On-The-Go Snacks Crafted With Thoughtful Ingredients

by Karen Butler

echnically speaking, the seeds that blossomed into Nature’s Bakery were planted at the start of the Nature’s Bakery Tnatural foods movement in the 1960s. That’s when Headquarters: Reno, Nevada Richard Marson opened a bakery championing all-natural naturesbakery.com ingredients—a revolutionary concept in those days. Marson’s entrepreneurial spirit and impassioned baking lent to the bakery’s success—so much so that his equally charismatic son Clean Label Forerunners Dave chose to make the family bakery his life’s work as well. Much like his father, Dave had his own healthier vision Dave spent several decades honing his skills, including of what a food category could be. From the beginning, the baking for other brands such as Keebler, Barbara’s Bakery and company’s Stone Ground Whole Wheat Fig Bars were free from Clif Bar. Eventually, Dave’s entrepreneurism led him to act on high fructose corn syrup (HFCS), artificial colors and flavors, an idea he had considered for years—launching a baked goods soy, dairy, cholesterol and trans fats. Besides “Original Fig,” business of his own. In 2010, with the support of his wife Jan, the Bars are now also offered in Mango, Peach Apricot, Apple Dave partnered with his son Sam to create Nature’s Bakery. Cinnamon, Strawberry, Raspberry, Blueberry and Lemon. Believing in quality and the use of thoughtful ingredients, The Double Chocolate Brownie line is also a mainstay. The the two set out on one simple mission—to make delicious, use of stone ground whole wheat flour yields 8 g of whole convenient, on-the-go snacks and foods that complement grains per serving, with real dates contributing to the chocolate health-conscious living and everyday active lifestyles. snack bars’ natural sweetness.

36 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 “With the addition of our new products this year, Nature’s Bakery now offers a broader range of delicious, healthy and affordable snacking options,” Strolin commented. “We want consumers to be able to find our products wherever they may shop because we understand that snacking and convenience is an all-day mindset.” In fact, the products enjoy a diverse distribution range, from Whole Foods and Amazon.com to Walmart and American Airlines and United Airlines.

Fine-Tuning the Brand In addition to unveiling its first organic offerings in 2017, Nature’s Bakery also launched a multi-phase brand reinvigoration—and where better than at Natural Products Expo West, the leading trade show in the natural, organic and healthy products industry? The branding effort includes refreshing the company logo, Dave and Sam Marson, creators of Nature’s Bakery. packaging and other external messaging to better position the brand toward Millennial parents looking for organic, allergy- friendly snacks that fit today’s busy lifestyles. “Millennials are driving significant changes across many With a keen eye on the market, Nature’s Bakery health and wellness categories in their brand choices and launched Gluten Free Fig Bars in 2014. Available in plain shopping patterns,” Strolin explained. “In the snacking Fig, Raspberry, Blueberry or Pomegranate, the snack bars category, we are seeing increases in early morning snacking, honor the brand’s “free-from” platform, while also playing into another hot trend—the use of ancient grains such as amaranth, teff and sorghum. “We are on a mission to introduce a snack-hungry world to a ‘new take on baked’ with reimagining baked favorites in a healthy way, thoughtfully crafting with real ingredients and none of the bad stuff,” said Andrew Strolin, vice president of marketing, Nature’s Bakery. “All of our products are certified kosher and have been verified as non-GMO (genetically modified organism) by the Non-GMO Project Verified logo. Our Fig Bars, Gluten Free Fig Bars and Brownies are also certified vegan.” Branching out yet again, in 2017 the company pioneered USDA Organic certified versions of its popular Double Chocolate Brownies (including a vegan Salted Caramel on point with taste trends), as well as a new line, Honey & Oat soft baked bars. Available in Sam’s Club and Kroger stores since February, increased distribution across grocery is targeted for Q3.

In the snacking category, we are seeing increases in early morning snacking, particularly among households with kids. — Andrew Strolin, vice president of marketing, Nature’s Bakery 37 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 particularly among households with kids.” He noted young families are looking for snack brands that keep products simple and real while tasting great. “We are very proud to know that Food For our products are enjoyed at any time of day, from morning to evening, and are also loved by Thought everyone in the household—moms, dads and kids,” he added. The brand’s broad appeal is further solidified by its outreach philosophy. “We work with a Successful clean label brands can wide array of relatable brand ambassadors who are active in their respective communities, gain additional market share by and passionate about sharing their journey and inspiring others,” Strolin said. Examples launching similar products with deeper include professional athletes in sports ranging niche positioning. from mountain bike racing, Xterra, angling, snowboarding and cycling; to the Fit Mom Diet Team; to adventure media personalities and self- From shopping to eating, stay abreast development gurus. of consumer behavior patterns to guide everything from product development to packaging and distribution.

Done properly, a brand refresh can help elevate a company’s public persona from very good to great.

In addition to blogs and other resources from brand ambassadors, the company’s website features a section of Instagram photos from its grassroots fans. Brand enthusiasts from everyday walks of life are plentiful across its social media platforms, with followers numbering approximately 26,000 on Facebook, 8,000 on Twitter, 13,000 on Instagram and 3,000 on Pinterest. The quarterly “Live Better” enewsletter has about 2,500 subscribers who signed up on the site for news, tips, special offers and “chances to win cool stuff.” With nearly 50,000 “likes” across the platforms, the brand has truly engaged consumers via social media to drive consumer engagement. Getting products out into the community is also a priority. According to Strolin, “It isn’t uncommon to see a Nature’s Bakery product inside a 5K run finisher bag or handed out at a local food bank because we

38 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 understand everyone enjoys simple, delicious on- The proliferation the-go food. Healthy nutritional culture is an area we know we can tangibly impact.” of wearable health Keeping up with societal changes has been monitoring technology a driving force behind the brand’s success. “Today’s consumers have shifted to a very creates more proactive approach to health and wellness,” accountability to Strolin remarked. “For example, the proliferation of wearable health monitoring technology creates one’s health, making more accountability to one’s health, making consumers more consumers more conscientious of everything conscientious of from their sleep habits to the foods they Connecting the eat. Additionally, traditional eating habits have everything from their dots between evolved beyond three meals a day to frequent sleep habits to the what consumers all-day snacking—with snacking replacing want and how meals in some instances. Based on these foods they eat. they shop is trends, consumers are scrutinizing their snack — Andrew Strolin, vice president of marketing, Nature’s Bakery a balancing choices and demanding healthier options to fit their lifestyles.” act. Brands need One of the core values of Nature’s Bakery is that to feel familiar consumers should never have to compromise on and authentic, but taste or product quality. “Our founders believe every person’s journey should at the same time be ‘fueled with good,’ so we make products that are affordable and available offer innovation to people everywhere,” Strolin emphasized. “Our philosophy is to keep it at the retail shelf. simple, have fun, and achieve balance in life though nature, activity, nutrition and community.” — Andrew Strolin, vice president of marketing, Business Basics Nature’s Bakery Now in its eighth year, the company has come a long way from its early days as a father-son venture. As with any new company, learning the intricacies about certification processes, distribution channels and specific retailer buying cycles was challenging, Strolin noted, as was working with brokers to support sales and distribution, and building general manufacturing infrastructure to accommodate the company’s growth. He said the difficulties “made us wider and more efficient as a brand,” adding that the learning experience of a startup is to be expected and also aligns with the brand’s entrepreneurial spirit. “We pride ourselves in keeping it simple and having fun, so we truly see the entire innovation process as an opportunity for that,” Strolin said. Among the lessons learned, the company now feels positioned to guarantee supply chain by ensuring a pool of approved primary and secondary suppliers is always available for activation. Strolin also pointed to the company’s nimbleness—as a brand and manufacturer—as a competitive advantage. Its in-house research and development (R&D) team works side-by-side with departments such as operations, marketing and sales, bringing an overall continuity and largely helping to avoid unexpected surprises. At the end of the day, Nature’s Bakery has found a way to be relevant to today’s consumers, regardless of where they’re at in life. “Connecting the dots between what consumers want and how they shop is a balancing act,” Strolin acknowledged. “Brands need to feel familiar and authentic, but at the same time offer innovation at the retail shelf.”

39 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017 CONTACTS

Food Insider Journal Clean Label Strategy & Formulation

Food Insider Journal EDITORIAL Food Insider Journal focuses on Editor Judie Bizzozero ...... [email protected] clean label strategy and formulation, Assistant Editor exploring how the shift to simple and Courtney Johnson...... [email protected] Contributing Editor natural is impacting the food and Melissa Kvidahl beverage market. Content Marketing Manager Karen Butler ...... [email protected] Legal and Regulatory Editor Josh Long ...... [email protected]

SALES

Vice President, Sales, Health & Nutrition Danica Cullins ...... [email protected] Senior Account Director Ioana Neacsu...... [email protected] Account Managers PRESIDENT Fred Linder Anthony Arteca...... [email protected] VICE PRESIDENT, HEALTH & NUTRITION Jon Benninger Todd Berger ...... [email protected] Laurel Rivers ...... [email protected] VICE PRESIDENT, CONTENT, HEALTH & NUTRITION Heather Granato Development Specialist – Asia Jiani Lai ...... [email protected] HUMAN RESOURCES DIRECTOR Donna Layton

PUBLISHED BY INFORMA EXHIBITIONS LLC MARKETING SERVICES 3300 N. Central Ave. Ste 300, Phoenix, AZ 85012 Vice President, Marketing Services Program Manager Tel. 480-990-1101 • Fax 480-990-0819 Danielle Dunlap Kristin LaBarbera Website: foodinsiderjournal.com Art Director, Health & Nutrition Senior Marketing Manager Andrew Rosseau Jenn Moreira Art Director Patti Valdez

EVENTS DEPARTMENT Senior Vice President, Events Education Manager Dana Hicks Alyssa Sanchez Event Director Exhibit Operations Director Marisa Freed Lola Ortega

40 Food Insider Journal Free-From Claims: Moving from ‘No’ to ‘Yes’ May 2017