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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), dairy, 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
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