Clean Label Strategy & Formulation
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Clean Label Strategy & Formulation Brought to you by: Natural Products INSIDER Vol.1 No.7 ■ September 2017 ■ US$20 foodinsiderjournal.com CONTENTS foodinsiderjournal.com September 2017 3 5 13 Viewpoint: Packaging 2.0: Juices Under The Whole Package What’s Outside is Pressure: HPP Just as Important as Options Boost What’s Inside Juice Category Innovation in Action 20 24 Dreaming Cow: The Tio’s Gazpacho: Bovine Bliss Facto Freshness is the Foundation of Health and Flavor 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. 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All items submitted to FOOD INSIDER JOURNAL become the sole property of Informa Exhibitions LLC. 2 Food Insider Journal The Whole Package September 2017 VIEWPOINT The Whole Package s clean label continues to become the way of the land, food and beverage brands must ensure products deliver on function, freshness and food safety. But in this new norm, brands must look at the whole A package and align their clean label thinking to product packaging as well. We analyze This issue takes a deep dive into how brands are turning to paper, plant- how consumers based fibers and recyclable materials that are biodegradable or compostable perceive to help reduce the environmental impact of packaging. We also analyze how sustainably consumers perceive sustainably packaged products and the impact it makes on packaged product purchasing decisions. Our Category Insights examines how recent developments in high-pressure products and processing (HPP) helped reinvigorate the ready-to-drink (RTD) juice category and the impact created demand for premium cold-pressed offerings, as well as the rising use it makes of sustainable packaging in the sector. Case studies showcasing Tio Gazpacho on product (2016 NEXTY Award winner) and Dreaming Cow’s LUSH (2017 SupplySide CPG purchasing Editor’s Choice Awards finalist) examine how the companies found whitespace decisions. in the RTD beverage category, and the lessons learned from implementing sustainable packaging that could be applied to your business. To fully leverage the clean label opportunity requires a deep understanding of what makes consumers tick. This year’s SupplySide West education program includes three Workshops focused on defining, formulating and marketing clean label food and beverages. If you are a manufacturer looking to learn more about clean label ingredients, you can’t miss SupplySide West, Sept. 25-29, 2017, at the Mandalay Bay in Las Vegas. Cheers, Judie Bizzozero Editor [email protected] (480)281-6019 @judiebizz 3 Food Insider Journal The Whole Package September 2017 Packaging 2.0: What’s Outside Is Just as Important as What’s Inside by Judie Bizzozero ackaging plays a critical role in a product’s growth for specialized produce packaging types such as resealable pouches for chili peppers, success or failure. In fact, one could argue dispensing tubes of fresh herbs and single- what’s on the outside of the product is just as portion packs of fresh-cut fruit. important as what’s on the inside. In addition to “Rising sales of prepared foods such as P rotisserie chickens, packaged salads or even being aesthetically appealing on the shelf, a product’s full-scale food bars have boosted demand for packaging needs to protect the contents from damage, foodservice-style packaging and suppressed leaking or contamination. gains for conventional food and beverage packaging,” Richardson said. Food and beverage packaging falls into two But developing new packaging materials that distinct types—flexible and rigid. Rigid packaging protect food and beverages throughout the supply refers to packaging that retains a firm shape, chain—from the factory floor to retail shelves to such as glass bottles, metal cans, hard-sided the consumer’s hand—while being recyclable, plastic bottles and containers, and thermoformed plastic boxes. Flexible packaging can be defined According to compostable, produced with renewable energy or even edible is a key challenge for industry. Top as any package or part of a package with a shape Packaged Facts’ of mind is the need for new packaging materials that can be easily changed. “Food and Beverage to meet the criteria for being sustainable without Packaging materials fall into six general Packaging Innovation sacrificing the food safety, function, freshness types—glass, metal, paper and paperboard, in the U.S.” report, and visibility of the product inside while appealing plastic, combinations of materials (such as consumers prefer to the target shopper. laminates), and other materials, according to Packaged Facts’ “Food and Beverage Packaging What’s In, What’s Out Innovation in the U.S.” report, which noted glass Mike Richardson, senior industry analyst at consumers prefer glass bottles and jars as bottles and jars the Freedonia Group, likened food and beverage packaging material for food and beverages, as packaging material packaging trends to hundreds of little trends. followed by paper bags, plastic bottles and jars. for food and beverages. For example, trends favoring fresh produce However, Richardson said flexible packaging over canned fruits and vegetables have boosted is generally gaining share at the expense of 5 Food Insider Journal The Whole Package September 2017 rigid products, while plastic is taking share from other materials. Further, recyclable and sustainable products are gaining share from products that Packaging are less so. “Plastic is gaining share, but organic, artisanal and craft products are Material Types growing more rapidly than overall food sales,” Richardson said. “Makers include: of these products use packaging to convey a homemade feel or prestige at some level. And to the minds of many of these producers and their consumers, plastic doesn’t deliver the same message that glass jars or bottles do.” Metal cans are losing share to alternative formats, with the exception of beer, which accounts for a large portion of metal can packaging. “Craft brewers have shied away from cans, for many of the reasons listed above. But many brewers have come to embrace cans, which offer a number of GLASS advantages, not least of which is that they protect beer from light,” he said. Metal cans are losing share to alternative formats, with the exception of beer, which accounts for a large portion METAL of metal can packaging. Need proof? U.S. demand for converted flexible packaging is expected to reach $20.7 billion in 2019, representing an increased transition from rigid to flexible packaging, per Freedonia’s 2015 “Converted Flexible Packaging” report. Although growth will slow from the past decade’s pace, PAPER converted flexible packaging will remain a growth area in both food and nonfood applications due to the inherent cost and performance advantages of lightweight bags and pouches. Moreover, converted flexible packaging’s source reduction, space savings, and lower production and transportation costs will be increasingly valued by retailers and packaged goods firms for its supply chain sustainability. All of these factors will drive further conversions from rigid to flexible formats, Freedonia reported. Data from Mintel’s “Global Packaging Trends, 2016” report support PAPERBOARD flexible’s rise to superstar status, noting flexible packaging experienced a 56 percent growth rate in launch of consumer packaged goods (CPG) packaging between 2010 and 2014. What’s more, 32 percent of consumers associate flexible packaging with being modern, the report noted. Companies [may be] more willing to consider using flexible pouches PLASTIC to replace metal cans. One driver of this is that the pouches are much lighter, which can cut shipping costs for products that may normally be sold in metal cans or glass. — Tom Vierhile, LAMINATES innovation insights director, GlobalData 6 Food Insider Journal The Whole Package September 2017 When it comes to trends within flexible packaging, Tom Vierhile, innovation insights director at GlobalData, said pouch packaging definitely is on the rise. While commonly used for applesauce and snack fruit products, pouches are turning up in more food and beverage categories, he said, citing the recent launch of Hunt’s Recipe Ready 100% Natural Paste as an example. % “This may signal that companies are more willing to consider using 81 flexible pouches to replace metal cans,” Vierhile noted. “One driver of this is that the pouches are much lighter, which can cut shipping costs for of consumers products that may normally be sold in metal cans or