Clean 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

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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 , 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 in the sector. 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 , metal cans, hard-sided the consumer’s hand—while being recyclable, plastic bottles and , and thermoformed plastic . 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 , 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 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 , 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 , 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 glass.” said they would choose Other notable launches taking flexible pouch packaging to the next level include Kellogg’s Special K Granola, Kraft YES Pack bulk salad dressing for resealable packaging over foodservice, Chicken of the Sea Flavored Tuna and Salmon varieties, and non-resealable packaging McCormick Skillet Sauces.

The Evolution of Packaging % Changes in demographics, lifestyles and eating patterns are creating 54 new opportunities for food and beverage packaging in the form of single- serve, portion-control and resealable packaging. would pay more According to Packaged Facts’ August 2015 “Food and Beverage for packaging with added Packaging Innovation in the U.S.: Consumer Perspectives” report, among the demographic megatrends feeding into package development are features such as being changing population distribution, fewer married couples and more people resealable or portion controlled living alone, smaller household size and multigenerational households. These demographic changes are leading to changes in household dynamics and eating behaviors, such as multishopper households, more meals being eaten alone and more snacking on more occasions. “Package innovation is playing a key role as food retailers respond to an ongoing shift away from the traditional three sit-down meals a day in favor of snacking and on-the-go eating,” said John Owen, senior food and drink analyst at Mintel. “In an effort to capitalize on ever-evolving eating occasions, brands should look to package products in single-serve portions for greater portability.” Notable product launches featuring single-serve or portion-control packaging include Kellogg’s Eggo Bites in Individual Pouches, Skippy Singles Peanut Butter Stack Pak, and Coca-Cola’s and PepsiCo’s mini cans of soft drinks. In 2016, Mintel called out “Phenomenal Flexibles” as a global % packaging trend, noting flexible packaging is no longer considered a 34 compromise for brands as demand for single-serve packaging grows and consumers associate flexible pouches with being contemporary. of consumers Mintel reported 34 percent of consumers view flexible pouches as view flexible pouches as “modern,” compared to 40 percent of consumers who perceive glass “modern,” compared to packaging as “old-fashioned.” “While the need for portability is forcing some brands to forgo glass for more convenient packaging options, glass hits on the trend of package % reusability, and is considered visually appealing to many consumers. As 40 such, brands that use glass packaging should market their products with a of consumers second life for its package in mind,” Owen said. Convenience also is a key selling point for food and beverage who perceive glass packaging packaging, especially considering today’s fast-paced lifestyle. Packaging as “old-fashioned.” benefits such as portability, ease of opening, resealability, lighter weight and no-mess dispensing all can positively influence consumers’ Source: Mintel: Trends - US - June 2016 Report purchasing decisions, noted Packaged Facts.

7 Food Insider Journal The Whole Package September 2017 What’s more, 81 percent of consumers said they would choose resealable packaging over non-resealable packaging, and 54 percent would pay more for packaging with added features such as being resealable or portion controlled, according to Mintel’s “Food Packaging Trends - US - June 2016” report. Brands also are incorporating see-through windows or transparent packaging that allow consumers to see the product before purchasing. According to Packaged Facts, transparency in packaging taps into consumer desire for transparency about how food and beverages are produced, both figuratively and literally. Companies that are transparent about their ingredients, sourcing and business practices are reaping the benefits in consumer goodwill and trust. Notable launches of products with transparent packaging include Capri Sun clear bottom pouches, KIND Bars in clear wrappers, and Hormel’s Skippy P.B. Bites in transparent cups.

Packaging Influences Consumer Purchases Data from Packaged Facts’ National Consumer Survey conducted in April 2015 found nearly 70 percent of respondents ranked freshness, closely followed by food safety, as the “highest priorities” they look for in food and beverage packaging. Interestingly, fewer than half of the respondents said preservation of natural nutrition, product identification Top three features (variety, flavor, etc.), food preservation/, and preservation of natural food characteristics (such as flavor, color, texture) were their highest priorities. Moreover, only consumers want are 29 percent of respondents said convenience was a high priority for them in food and food and beverage beverage packaging. packaging that is Furthermore, fewer than one out of five survey respondents “strongly agreed” that packaging convenience, ease of use and packaging appearance are important tamper-proof, considerations in choosing food or beverage products. A similar percentage strongly agreed they avoid buying products with excessive packaging, and fewer than one in easy to open six strongly agreed they avoid buying food or beverage products if they dislike the and resealable. appearance of the packaging. According to the report, the top three features consumers want are food and beverage packaging that is tamper-proof, easy to open and resealable.

Sustainability: The Green Effect Increased consumer demand for sustainable products puts pressure on companies to embed “green” thinking into every aspect of the supply chain. A lack of awareness of sustainability issues or a lack of engagement brings real risks to businesses—especially if public perception of a brand or a company is damaged from practices such as using unsustainable sources of materials or damaging ecosystems or habitats.

GlobalData recently surveyed U.S. consumers about which types of environmentally friendly packaging are “extremely important” when making a purchasing decision Results of the Q1 2017 survey found 28% 28% 25% 24% 22% Recyclable packaging Reducing unnecessary Reduced carbon Easy to separate different Compostable/ packaging footprint materials for disposal Biodegradable 22% 21% 21% 21% 20% Made from Made from Lightweight/lower Refillable/ Made from renewable sources recycled materials weight packaging Reusable unbleached paper

8 Food Insider Journal The Whole Package September 2017 Companies are turning to paper, plant-based fibers and recyclable materials that are biodegradable or compostable to help reduce the environmental impact of packaging. GlobalData recently surveyed U.S. consumers about which types of environmentally friendly packaging are “extremely important” when making a purchasing decision. Results of the Q1 2017 survey found “recyclable” and “reducing unnecessary packaging” top of mind at 28 percent, followed by “reduced carbon footprint” (25 percent), “easy to separate different materials for disposal” (24 percent), “compostable/biodegradable” (22 percent), “made from renewable sources” (22 percent), “made from recycled materials” (21 percent), “lightweight/lower weight packaging” (21 percent), “refillable/reusable” (21 percent) and “made from unbleached paper” (20 percent). Vierhile said one of the bigger stories is the move to compostable coffee single-serve coffee pods. While Keuring’s K-Cup® pods have become the Rising sales darlings of convenient and portable single-serve beverages, they also of prepared have been blamed for increased landfill waste because of their lack foods such of sustainability and recyclability. To address the issue, Keurig as rotisserie introduced its first recyclable K-Cup made from chickens, in 2016; the company has a goal to make its K-Cup coffee packaged salads pods 100 percent recyclable in the United States by 2020 and in Canada by 2018. or even full-scale Single-serve bottled water also is another category food bars have that has come under attack by environmentalists, which boosted demand is why brands have worked to introduce products with for foodservice- more sustainable packaging. Notable products include style packaging Rethink Water Kids, which uses paperboard boxes; Just and suppressed Water, with packaging that is 54 percent paper and 28 percent plant-based plastics; and Coca-Cola’s PlantBottle™, gains for a fully recyclable terephthalate (PET) plastic made conventional partially from plants. food and But no matter the product, a key issue for sustainability in beverage packaging is the importance of the appearance of sustainability, which packaging. doesn’t necessarily overlap perfectly with the actuality of it, Richardson noted. “Some of it is pretty straightforward—source reduction and shipping weights are —Mike Richardson, pretty simple concepts, and companies are financially incentivized to use less senior industry analyst at the Freedonia Group packaging materials that weigh less,” he said. However, other parts of the equation are trickier. “Consumers don’t know, and really can’t be expected to know the details of complicated lifecycle assessments, and make grocery purchases based on those. Most people, however

According to Packaged Facts’August 2015 “Food and Beverage Packaging Innovation in the U.S.: Consumer Perspectives” report, among the demographic megatrends feeding into package development are changing population distribution, fewer married couples and more people living alone, smaller household size and multigenerational households.

9 Food Insider Journal The Whole Package September 2017 well-meaning, use a much simpler process and go with whatever looks or Few companies seems most ‘sustainable.’ Most consumers have a general sense of what can be recycled, and what widely used materials come from renewable have robust sources and which don’t.” sustainable But the sustainability question is often more complicated. As an example, Richardson cited three main types of egg —, packaging policies PET and expanded polystyrene. “Molded pulp is made from a renewable or system-wide material, PET is easily recycled and expanded polystyrene cartons use far less plastic,” he said. “But the eco-conscious shopper is probably going programs to recycle to gravitate to molded pulp, all other things being equal, because it looks their packages. most sustainable.”

Recycling Challenges & Solutions The “Waste and Opportunity 2015” report by As You Sow and the Natural Resources Defense Council examined packaging practices of 47 fast food/ quick service restaurant (QSR) chains, beverage companies and consumer good/grocery companies. The report concluded few companies have robust sustainable packaging policies or system-wide programs to recycle their packages. In terms of retail beverages, New Belgium Brewing, Coca-Cola, Nestlé Waters NA and PepsiCo were cited for “Better Practices,” and Dr Pepper Snapple Group, Diageo and Anheuser-Busch were categorized as “Needs Improvement.” Heineken, MillerCoors, Boston Beer and Red Bull were identified as “Poor” for showing little to no leadership on packaging sustainability, based on information the companies make public. “We found that most leading U.S. fast food, beverage and packaged goods are coming up significantly short of where they should be when it comes to the environmental aspects of packaging,” said Conrad MacKerron, senior vice president at As You Sow and author of the report. “These companies have not sufficiently prioritized packaging source reduction, recyclability, compostability, recycled content and

Let’s Get Digital

Consumers also are looking beyond the packaging type or material and seeking out products that include enhanced information such as QR codes that allow smartphones to digitally download more details about a food or beverage product. According to Mintel, digital is capturing brands’ attention by creating opportunities to engage consumers on a local, personal and even emotional level. In fact, Mintel noted 2016 as a tipping point for digital package printing, as brands moved beyond using it for limited editions and personalization, and capitalized on its economic and speed-to-market advantages for mainstream package decoration. Tetra Pak’s 2017 Index “The Connected Consumer” report also identified digital as an emerging trend and noted brands can turn their industry’s most influential Super Leaders—a newly defined digital community of early adopters and brand amplifiers—into brand advocates to spread messages, shape opinions and help build trust in products. “Using new ways to reach connected consumers is especially important when you think of Generation Z,” said Alexandre Carvalho, director marketing services at Tetra Pak. “They have been brought up in a digital-first world, and expect brands to communicate on their channels of choice. The age of passive, one-way communication is over. Brands need to adjust their communications and create more channel-specific, authentic and engaging content.” The report also found packaging has an important role to play in consumer engagement. For example, digital codes printed on packages can improve transparency of traceability, allowing consumers to access information about the product right down to the source. The package can also be transformed into a conduit for two-way communication, where brands can capture specific, valuable data about their consumers as well as share more information about the product. “The digital package gives brand owners a direct link to the consumer through an important communication channel—the product itself,” Carvalho said. “To make the most of this fully owned channel, Tetra Pak is piloting the use of augmented reality and other digital technology in our packaging to help our customers stay ahead.”

10 Food Insider Journal The Whole Package September 2017 Almost 71 percent of consumers surveyed in 2015 said packaging for products should be recycled, and 68 percent of consumers said they make a conscious effort to recycle paper, glass, cans and other items.

policies. Increased attention to these key attributes of packaging sustainability would result in more efficient utilization of postconsumer packaging, higher U.S. recycling rates, reduced ocean plastic pollution and new green recycling jobs.” Strains on the global food supply chain also are making their way from the field into consumer consciousness, which presents opportunities for food brands and retailers to address those concerns through innovative packaging and product messaging, noted Mintel’s Owen. “The prevention of food waste can be positioned not only as a good way for consumers to save money, but also as a way to work toward reversing the growing food waste trend through conscious consumption,” he said. According to Packaged Facts, the majority of U.S. adults are in favor of recycling efforts, which has grown since 2011. Almost 71 percent of consumers surveyed in 2015 said packaging for products should be recycled, and 68 percent of consumers said they make a conscious effort to recycle paper, glass, cans and other items. However, despite brands’ best efforts, package recycling is well below its potential, noted Mintel’s 2016 “US Food Packaging Trends” report, which found only 42 percent of consumers recycle a majority of the food packaging they use. Interestingly, 25 percent of U.S. consumers said product contribute to the low recycling rate because it’s often unclear which packages can be recycled. However, industry groups such as the Sustainable Packaging Coalition® (SPC) are addressing the need for a more robust environmental vision for packaging. SPC is a project of GreenBlue®, a nonprofit that equips businesses with the science and resources to make products more sustainable. In 2008, SPC launched How2Recycle Label®, a standardized on-package labeling system that clearly communicates recycling instructions to the public. The mission of the How2Recycle Label is to reduce confusion by creating a clear, well-understood and nationally harmonized label that enables companies to convey to consumers how to recycle a package; improve the reliability, completeness and transparency of recyclability claims; provide a labeling system that follows Federal Trade Commission (FTC) Green Guides; and increase the availability and quality of recycled material. Food and beverage leaders such as ConAgra Foods, Plum Organics, Minute Maid, Annie’s, General Mills, Kellogg’s, Kraft Heinz and Barilla have joined the How2Recycle program, which includes 50 member companies representing the entire packaging supply chain, from manufacturers to large retailers.

What’s on the Horizon The call for sustainable packaging that doesn’t compromise product integrity will only get louder as the issue of climate change continues to heat up, which means brands not only should view sustainable packaging as a way to cater to eco-conscious consumers, but also as a way to shape a consumer’s experience with the product. As noted by Mintel, going forward, when product price and perceived product quality are equal, consumers will be increasingly turning to eco- and alternative-use attributes as the deciding purchasing factor, and brands cannot afford to ignore this as they develop their brand positioning and marketing strategies.

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Juices Under Pressure: HPP Options Boost Juice Category

by Melissa Kvidahl t wasn’t so long ago that juice was a of Nowhere is this shift away from juice more evident than in the case of orange juice. American diets as well as cuisines around the world. According to data from Packaged Facts June A balanced breakfast was incomplete without a tall 2017 “Ready-to-Drink Beverages: Culinary Trend glass of OJ, and kids were encouraged to sip apple Tracking Series” report, household consumption rates for orange juice dropped from 73.7 percent juice as a wholesome alternative to milk. in 2004 to 67.7 percent in 2016. The market I research firm speculated that, in addition to But, oh, how times have changed. According concerns about sugar content, an increasingly to Mintel’s “Juice and Juice Drinks - US” report, fast-paced lifestyle that doesn’t accommodate a published May 2017, the juice market is on traditional breakfast at home could be to blame. a downslide. Between 2016 and 2021, the Plus, the popularity of Alissa Hamilton’s 2009 overall market is expected to grow 5 percent, best-seller titled “Squeezed: What You Don’t representing a 7 percent decline in sales when Know About Orange Juice” only further served Consumers concerned adjusted for inflation. To blame is the continued to alienate consumers. In it, Hamilton revealed with sugar content are sales decline of 100 percent juice, the report many mainstream orange juice brands store their less likely to noted. So, what shifted? product for long periods of time and then use purchase 100 First, Mintel points out that while some flavor packs to revive flavor before packaging, juices carry health benefits, consumers percent juice, which struck a chord with many consumers who and are also less likely have come to associate the category stopped purchasing the juice altogether. The to consider juice a with high-sugar content, which is at result? By 2016, sales of bottled orange juice staple breakfast odds with trends toward healthy eating. posted a yearly decline of 6.5 percent, Packaged beverage. Consumers concerned with sugar content Facts reported. are less likely to purchase 100 percent Most recently, in May 2017, the American juice, and are also less likely to consider juice Academy of Pediatrics (AAP) delivered another a staple breakfast beverage. blow to juices. Previously, the AAP recommended against serving juice to children under six months

13 Food Insider Journal The Whole Package September 2017 of age, but put its stamp of approval on 4 to 6 oz. daily for children up to 6 years of age, as well as 8 to 12 oz. for children over age 7. In the June 2017 issue of Pediatrics, though, AAP changed its tune. It now recommends no juice whatsoever for children under 1 year of age, and caps daily consumption at 4 oz. for toddlers and 8 oz. for kids age 7 and older. It also recommends eliminating juice from the diets of children who have excessive weight gain, insinuating that juice could be a culprit. Together, these recommendations represent the AAP’s explicit policy goal of decreasing juice consumption overall, based on its stance that fruit juice provides minimal nutritional value. Instead, AAP says parents should skip juice in favor of whole fruits that provide better nutrition for kids.

Processing Change Thanks to To regain a foothold in the beverage space, and maybe even turn the tide of consumer HPP, Evolution sentiment back to the juice aisle, juice manufacturers and brands are taking a new look at Fresh can meet its their processing. And they’re finding an answer in high-pressure processing (HPP). goal of creating and HPP, also known as cold pressure or cold-pressed technology, is a preservation marketing juices method that’s transforming the juice market. Instead of using heat, which can diminish the nutrient load of fruits and vegetables, HPP eliminates bacteria by using (as its name that taste as close to suggests) high pressure. The fact that cold-pressed juice is processed means it’s often fresh-picked juices safer than raw juice, and boasts a longer shelf life. And because it’s heat-less means as possible. fruits and veggies maintain their robust nutrient—and color—profiles, resulting in an — Anne Williams, arguably healthier juice than those pasteurized with conventional methods. vice president of marketing, “During HPP, our bottles of juices are immersed in cold water and then subjected to Evolution Fresh enormous pressure to inactivate pathogens,” explained Anne Williams, vice president of marketing, Evolution Fresh. “This allows us to ensure safety and help retain flavors and nutrients. It also allows us to make our juice accessible to consumers nationwide in the United States and in Canada by extending the life of cold-pressed juice.” Thanks to HPP, Evolution Fresh can meet its goal of creating and marketing juices that taste as close to fresh-picked juices as possible. And the company recently invested in a 264,000-square-foot state-of-the-art juicery in Rancho Cucamonga, California, to prove it. The new facility is capable of sourcing, peeling, squeezing and pressing raw fruits and vegetables, and can deliver HPP juice to more than 17,000 points of distribution in the United States and over 1,200 Starbucks retail locations in Canada. “While HPP has been used since the mid-1990s, in the past few years HPP within the juice market has grown, as brands learned how to harness the process for their own products,” said Suja Juice CEO Jeff Church. And though HPP may not be a consumer-facing term that shoppers widely understand, it has enabled juice brands to offer consumers the benefits they demand: healthier products with a natural label. “There’s still a large opportunity to educate around the concept and benefits of HPP,” Church added. “The result of HPP is fresher and more nutrient dense, which we believe is what attracts consumers to these types of products.” According to data from SPINS, attracting health-minded shoppers may just be the shot in the arm the juice category needs. Though the overall juice market is suffering, natural juices are doing quite well sales-wise. Fruit juice with a natural positioning grew 6.6 percent in sales since one year ago, and coconut water and kombucha—both arguably benefiting from a healthy halo—experienced explosive sales growth to the tune of 19 percent and 30 percent, respectively. Suja Juice alone grew 10,511

14 Food Insider Journal The Whole Package September 2017 HPP has helped to make cold-pressed juices more widely accessible and provide a safer and more convenient option for consumers who might not have the time or resources to make their own fruit and veggie blends. — Bill Lange, vice president of marketing CPG, C-Fresh, a division of Campbell’s that includes Bolthouse Farms

percent over the past three years, reported Packaged Facts. a growing interest in flexitarian (semi-vegetarian) diets in most “HPP has helped to make cold-pressed juices more widely developed countries, and the result is an environment that’s accessible and provide a safer and more convenient option vegetable-friendly to say the least. for consumers who might not have the time or resources to Juice makers have a clear opportunity to capitalize on make their own fruit and veggie blends,” added Bill Lange, vice this interest with offerings that boast not just fruits, but also president of marketing CPG at C-Fresh, a division of Campbell’s vegetables. And, as a bonus, Euromonitor International said, that includes Bolthouse Farms and other brands. In this way, adding vegetables to traditional fruit juices lowers the sugar HPP makes it possible for juice brands to invite all kinds of and calorie content, while raising the nutritional profile. consumers to the table: home juicers who thought ready-to- This is a tactic evident in Bolthouse Farms’ 1915 Organic drink (RTD) wasn’t for them, as well as an increasing base of juice offerings, which are each made with six or fewer organic health-minded shoppers who avoid conventional juice due to and non-genetically modified organism (GMO) fruits and concerns surrounding high sugar and low nutrition. vegetables, and capitalize on “100 years of farming expertise,” Lange said. The company’s deep burgundy variety includes Vegetables and Superfoods beet, orange, carrot and lemon; its green juice includes apple, One key benefit of HPP is that it preserves the nutrients of romaine, cucumber, spinach, kale and lemon. a juice’s ingredients. And, as Euromonitor International pointed Packaged Facts noted it took only a year or two for green out, this is an important attribute that can attract a consumer juices to go from just hitting shelves to going completely base increasingly aware of the value of veggies. mainstream, as they are now—and not just with niche brands. According to Euromonitor International, public campaigns Tropicana, for example, offers a Tropical Green juice that’s worldwide have resonated with consumers, from Australia’s 100 percent juice and has no added sugar. It gets its deep Go for 2 & 5 (which encourages two servings of fruit and five green hue from spinach and kale. servings of vegetables a day) to the U.K.’s 5 A Day program. Including vegetables in juice will resonate with the Add to this the rise of the farm-to-table movement as well as 46 percent of consumers who told Mintel they want added

15 Food Insider Journal The Whole Package September 2017 According to Euromonitor International, naturally healthy superfruit juice is projected to be the fastest grower in the juice category between 2015 and 2020.

health benefits such as vitamins and minerals in their juices, but who at the same time may balk at the added vitamin C or zinc that have been included in conventional juices for decades. Instead, consumers—especially younger ones—favor natural ingredients with built-in functionality, reported Packaged Facts. In fact, Mintel found juices made with superfoods are as appealing to consumers as those with added protein, with both attracting 23 percent of shoppers. According to Euromonitor International, naturally healthy superfruit juice is projected to be the fastest grower in the juice category between 2015 and 2020. These juices are expected to grow at a faster rate than fortified juices because consumers want functional benefits without artificial ingredients—and superfoods deliver. “With the wide variety of beverage options available on the market now, consumers are looking for those cutting-edge ingredients that are both delicious and serve a purpose,” With the wide Church said. variety of beverage At Suja, both ingredients and purpose are on full display, with the ingredients listed on options available the front label, and the product names reflecting those ingredients’ functional benefits. on the market For example, Invigorate offers antioxidant-rich goji berries as well as a double dose of fresh and fermented ginger; Green Delight contains the superfoods kale, spirulina and now, consumers chlorella alongside apple, banana and mango flavors; Twilight Protein boasts strawberry are looking for and vanilla with almond milk and pea protein. This fall, Suja is taking it one step further with those cutting-edge a line of organic kombuchas, “all of which contain 5 billion colony forming units (CFUs) of ingredients that are Lactobacillus rhamnosus and adaptogenic ingredients such as ashwagandha, reishi and both delicious and schizandra,” Church added. serve a purpose. Superfoods are also front and center at Evolution Fresh, where the company’s 2016 survey of natural channel shoppers revealed that — Jeff Church, health (alongside refreshment) was a top purchase driver for super CEO, Suja Juice premium juice purchases. Soon after, in March 2017, Evolution Fresh introduced cold-pressed Organic Superfoods Juices. “Inspired by founder Jimmy Rosenberg’s morning superfoods smoothie ritual, this new line combines cold-pressed fruit and vegetable juices with cold-pressed coconut milk and at least seven unique superfoods in each , to deliver a nourishing on-trend beverage with health-boosting antioxidants,” Williams said. Evolution Fresh tapped into one of Packaged Facts’ juice ingredients to watch—the functional Ayurvedic spice turmeric— with three out of the four varieties it launched: Goldenmilk is inspired by the traditional Indian beverage, and includes organic coconut milk, turmeric and acerola cherry juice; Thriving Greens includes spirulina, baobab and turmeric; and Cocoa Spice is a bend of cocoa, acerola cherry, baobab, turmeric, ginger and cinnamon. Turmeric also popped up in a launch from Uncle Matt’s Organic called Organic Orange Turmeric with Living Probiotics, offering 500 mg of turmeric per serving. That said, brands with more of a mainstream following than a niche one would be wise to ease into the functional ingredients or

16 Food Insider Journal The Whole Package September 2017 vegetable trend, especially when it comes to green juices. While green juices are growing in popularity, the truth is that they’re doing so because the majority are actually fruit-and-vegetable blends, noted Packaged Facts. Traditional supermarket channel shoppers are interested in dipping their toes into this trend—desiring fewer calories, less sugar and a nutritional boost from greens—but will do so only to a point. Adding sweetness from lime or apple is key to harnessing this consumer, who is only just beginning to experiment with vegetable-based juices.

Beyond Breakfast According to Mintel, the beverage market is in the midst of a blurring trend, marked by products crossing multiple categories. Typically, this tends to hurt beverage sales, since consumers are bogged down with too much choice, and they don’t favor hybrid beverages anyway. But when it comes to juices, blurring the lines boosts product popularity. Case in point: coconut water. While the juice category struggles, the water category has emerged as one of the greatest growers of the beverage industry. According to Mintel’s January 2017 “Bottled Water – US” report, sales of bottled water reached an estimated US$16.5 billion in the United States, and are expected to reach $23.8 billion by 2021. Mintel reported consumers are ditching sugary beverages like Sales of bottled water carbonated soft drinks (CSDs), dairy milk and, yes, juices, in favor reached an estimated of water. So, it’s no surprise that some juices are capitalizing on the draw of plain old water to make their case to consumers. US$16.5 billion Mintel pointed out coconut water as one example of this, since in the United States, it is marketed as being nature’s great hydrator and 79 percent of and are expected to reach consumers say they drink bottled water for hydration. Another benefit for coconut water brands is their product isn’t necessarily a breakfast $23.8 billion beverage (like juice), as it can be consumed at any time of day. It benefits from a young, affluent consumer base, Mintel added. And, by 2021.

according to Euromonitor International, coconut water SPINS reports that has been able to post strong sales growth outside of its native Asia Pacific and Latin American markets sales of coconut water by positioning itself as nature’s sports drink, high in the United States have in electrolytes and low in sugar and calories. SPINS reports that sales of coconut water in the United States grown about have grown about 20 percent over the last year. 20 percent In this way, coconut water—by definition, a fruit juice—has blurred across multiple categories of over the last year. beverages, appealing to all kinds of consumers from health connoisseurs to athletes to anyone needing natural hydration (read: everyone). Blurring the lines between juices and carbonated soft drinks are sparkling juices such as Sanpellegrino, Bai Bubbles, Ocean Spray Sparkling and the Synergy line from GT’s Living Foods, which are all classified as juices, noted Mintel, despite the fact that most consumers may not consider them to be juices.

17 Food Insider Journal The Whole Package September 2017 As consumers’ expectation for transparency increases, brands have the opportunity to raise the bar on what that will look like. — Patrice Radden, vice president of communications, Califia Farms

U.K. brand Coldpress, known for its cold-pressed fruit and vegetable juices made using HPP, recently launched two sparkling water juices, in Raspberry Coffee Talk Pineapple Apple Pear and Strawberry Apple Watermelon varieties, designed to offer health- According to SPINS, refrigerated ready-to-drink (RTD) coffee is conscious consumers something different than soda. on the rise, posting 72.1 percent sales leaps over last year. And if Yet another way juices are blurring the lines is by there’s one hot trend in this category, it’s cold brew. crossing into the refreshment category. As opposed to the traditional coffee-making method, which brews grinds in hot water, cold brew methods dictate that grinds are steeped Lemonade, for example, is finding success in cold water overnight. Fans of this approach say the result is a more in that it’s appropriate most any time of day and full-bodied and flavorful brew, and coffeehouses have been responding is marketed as a refreshing treat. Mintel even with cold brews alongside traditional iced coffee offerings. So, it wasn’t speculated that, unlike other juices, it benefits from long before RTD beverage brands stepped up to offer cold brew on the fact that it’s shamelessly sweet since there’s no supermarket and convenience store shelves as well. notion that it should be a health beverage. HPP isn’t necessary to develop cold brew coffee, but it does offer that Unlike the overall juice category, lemonade posted something extra. “We utilize HPP to process our MOJO because it is a a 9 percent uptick in sales in the year leading purely cold-chain process, which allows us to maintain that freshly blended up to Feb. 9, 2017. Mintel reported lemonade taste MOJO consumers crave,” said Annie Brainard, chief blending officer and MOJO founder. “Most RTD coffee—even cold brew—uses some form brands have an opportunity to specifically market of heat pasteurization, which generally degrades the taste slightly.” to younger consumers, as 52 percent of iGens Brainard said HPP has helped build MOJO’s business, especially reported purchasing lemonade in the last three when it came to developing a milk-based coffee. But this is still an area months, and they tend to be receptive to unique in relative infancy. Like juice consumers, RTD coffee consumers don’t flavor profiles like fruity, herbal or even spicy necessarily know about HPP, but favor its benefits. “They appreciate lemonade. ones that have [been processed with HPP], but they might not know Evolution Fresh markets two lemonades made why,” Brainard said. “At MOJO headquarters, we often debate whether to with HPP: Organic Strawberry Lemonade and proactively educate our consumers about the process of making our cold Orange Spicy Lemonade with ginger juice and brew, or simply let them enjoy a healthful and powerful experience. So far, the latter has won out.” cayenne pepper. Also crossing boundaries into Going forward, HPP will help coffee brands the refreshment category, the company launched offer functional beverages, which high heat may Watermelon Juice, made with just cold-pressed have deterred in the past. watermelon juice and lemon. And, it blurred the line According to Patrice Radden, vice president into the iced tea category with tea-infused juices of communications at Califia Farms, while there that blend cold-pressed juice with cold-brewed tea will always be purists who want a simple black in three varieties: Raspberry Citrus Cooler, Blueberry coffee, more consumers are looking for function. Mint Cooler and Tropical Hibiscus Cooler. “For example, at Califia, we developed an MCT Going forward, experts agree HPP will continue to [medium-chain triglyceride] oil- and protein- enhanced RTD cold brew coffee called Full enable juice brands to widen their reach, appealing Shot because we believe functionality is to all types of consumers, even as it remains largely a key part of the future of coffee,” she behind the scenes. “As consumers’ expectation for said, “which goes hand in hand with a transparency increases, brands have the opportunity future that offers many more options for to raise the bar on what that will look like,” Lange consumers to get direct trade-sourced said. “HPP is not a common consumer-facing term, craft coffee on the go at grocery but consumers look for beverages that incorporate convenience stores.” the benefits of HPP—great-tasting beverages with nutritional benefits and a longer shelf life.”

18 Food Insider Journal The Whole Package September 2017 EXPLORE OPPORTUNITIES FOR THE Clean Label Market

Consumers are demanding great tasting, healthy products with shorter, cleaner ingredient lists. What does this mean for product developers? SupplySide West has the answers. This year’s SupplySide West education program includes three workshops focused on defining, formulating and marketing “clean label” foods and beverages.

Underwritten by

Tuesday, September 26 | 9am-Noon Defining Clean Label: Moving From Trend to Norm

Tuesday, September 26 | 1:30-4:30pm Clean Label Strategies and Formulation Considerations

Friday, September 29 | 8:30-11:30am Developing and Delivering Clean Label Messaging

SEPTEMBER 25-29 EXPO HALL SEPTEMBER 27 & 28 REGISTER TODAY AT west.supplysideshow.com INNOVATION IN ACTION

Dreaming Cow: The Bovine Bliss Factor by Joanna Cosgrove

alm, happy cows produce better milk, and better milk makes better dairy products. That’s the philosophy for Dreaming Cow CKyle and Janelle Wehner, who, in 2009, channeled Headquarters: Pavo, Georgia more than two decades of family dairy farming into Dreaming dreamingcow.com Cow, a thriving yogurt and yogurt drink venture based in bucolic Pavo, Georgia. At this Shangri-La for cows, the emphasis is on low-stress From Yogurt to LUSH living. Cows enjoy a mostly outdoor existence, and graze Dreaming Cow’s first foray into the dairy segment was a on expertly managed grass pastures year-round, thanks to line of eight 6-oz. full-fat, cream-top yogurts (plus two 32-oz. Georgia’s warmer climate. The rBST and rBGH hormone-free SKUs) that are currently sold in more than 3,500 natural foods herds are milked twice daily in an open-walled, New Zealand- grocery, mass-market grocery, drug stores and grab-n-go style milking barn that the Wehners say also encourages calm kiosks stores nationwide. because the cows don’t feel confined. And while grass-fed This spring, the company debuted its second product line: cows typically produce less milk than grain-fed cows, the LUSH Grassfed Yogurt Drinks. Available in four “subtly sweet” emphasis at Dreaming Cow is on quality, not quantity. flavors—Strawberry Raspberry with purple carrot and beet, “Not only is the milk higher in vitamins and contains Blueberry Boysenberry with purple carrot and beet, Lemon omega-3 fatty acids, grass-fed cows’ milk has up to Passionfruit with carrot and pumpkin, and Peach Ginger with five times more CLA (conjugated linoleic acid) than pumpkin and carrot—each full-fat, preservative- and stabilizer- grain-fed,” said Dreaming Cow CEO Kyle Wehner. free drink is nutrient-dense, packing a full serving

20 Food Insider Journal The Whole Package September 2017 Made with grass-fed yogurt, natural fruits and vegetables, this drink could be in the produce section or the yogurt aisle. It’s like a farmer’s market in a bottle.

of vegetables, 11 to 13 g of protein, and Recommended Dietary Allowance (RDA) levels of the antioxidants, vitamins A and C, iron, calcium, potassium and B vitamins into every 12-oz. bottle. What’s more, LUSH includes more than 20 billion colony forming units (CFUs) of Bifidobacterium BB-12 (from Chr. Hansen), a clinically studied probiotic renowned for promoting immune and digestive health. “Made with grass-fed yogurt, natural fruits and vegetables, this drink could be in the produce section or the yogurt aisle,” Wehner noted. “It’s like a farmer’s market in a bottle.” Dreaming Cow’s flavor combinations are developed and manufactured internally, which affords the company to flexibly try new pairings as often as inspiration strikes. “When it comes to flavor ideation, we work together as a team to come up with core characteristics, and then hand the whole process over to Janelle, co-founder and COO of Dreaming Cow, who goes to work in the kitchen making it all happen,” Wehner explained. “I source hundreds of ingredients from all over the world that I find promising and make sure that I source Janelle never runs out of options, as the original idea almost never comes out as it went in.” hundreds of Once each flavor’s lab batch process is perfected, the company scales up to small batches for taste-testing family and friends, who ultimately determine whether a flavor combo is market-worthy. ingredients While the company’s yogurt-making venture was an unassuming process, developing LUSH from all over was more complex. With LUSH, the company sought to define and create a product that aligned the world that I with the tastes and attitudes of today’s busy but health-conscious consumers. find promising and make sure that Janelle never runs out of options, as the original idea almost never comes out as it went in.’ — Kyle Wehner, CEO, Dreaming Cow

OVER 20 BILLION FULL FAT NUTRIENT PROBIOTICS GRASS-FED MILK RICH

21 Food Insider Journal The Whole Package September 2017 We wanted our nutritional label to reflect the goodness we are fitting inside the bottle, so we chose to use nutrient-dense vegetables while knowingly accepting a higher SRP [suggested retail price]. — Kyle Wehner, CEO, Dreaming Cow

“We found that most Americans are not getting enough fruit and vegetables a day, but they are more thoughtful than ever before about what they’re putting into their bodies,” Wehner commented. “Flavor and convenience seem to be the biggest obstacles. Seeing a major void in the market, our vision and purpose behind LUSH is to bring a convenient and delicious ‘wellness on-the-go’ yogurt drink with noticeable nutritional increases that everyone can enjoy anytime.” Because of its unique profile, extra research and development (R&D) was warranted. “Not having any real template to go off, we took a very data-driven approach and used our formulation software in SAP to make sure production costs would stay in line with our expectations,” he said. LUSH’s development challenges included sourcing ingredients that had the right flavor balance, nutrient density and, of course, price. “For instance, it would have been very easy to get a full serving of vegetables using cucumbers, but since cucumbers are mostly water, we weren’t seeing any real nutritional benefit from their inclusion,” he explained. “We wanted our nutritional label to reflect the goodness we are fitting inside the bottle, so we chose to use nutrient-dense vegetables while Janelle and Kyle Wehner, creators of Dreaming Cow. knowingly accepting a higher SRP [suggested retail price].” The total realization of LUSH spanned about a year, with the initial At present, LUSH is kosher certified and concept proposed in spring of 2016 and the product prototypes outfitted in Wehner said the company is working on several their finished packaging by March 2017. LUSH hit the market in July and other unique certifications that reflect the year- is on track to be carried in about 2,000 stores by the end of 2017. LUSH round grazing production practices they maintain is a finalist in the Functional Food/Beverage category in the 6th Annual at their farms. SupplySide CPG Editor’s Choice Awards that recognize achievements in “Our family collective of dairies is large innovation and market impact in 27 categories. Winners will be announced enough that we are not going to have to worry on Sept. 28 at the SupplySide West show in Las Vegas. about running out of milk for years to come, and our factory has just been upgraded, with Commitment to ‘Clean’ three additional upgrades already planned, to The concept of clean label can mean different things to different accommodate aggressive growth,” he said. companies. To Dreaming Cow, clean label is tantamount to the definition of simplicity. “The product is not manipulating nutrition, texture or flavor with food science voodoo in the name of profit and/or deceptive marketing,” Wehner said. “The consumer wants transparency and is smart enough to realize when they are being misled. “I don’t personally believe that you have to have less than X number of ingredients or ingredients that are easily pronounced to have a ‘clean label,’ but rather ‘clean label’ is about creating a wholesome product using honest ingredients, each with a discernable and easily communicated purpose, that the consumer can feel good about putting in their body.”

22 Food Insider Journal The Whole Package September 2017 The company is committed to doing everything it can to produce eco-friendly products, including keeping an Food eye on the environmental footprint of its packaging. For example, its new yogurt cups use 40 percent less plastic than conventional 6-oz. cups and are joined together with For recyclable cardboard labels. Dreaming Cow’s concept of clean even extends to the Thought very ground that nurtures the company’s happy cows. The company follows a “no-till drill” process when planting its pasture grasses, leaving the soil undisturbed and preserving nutrients and organic matter that are typically lost when soil is turned over. Define a void in the market “Our farms are constantly sequestering carbon into the soil as organic matter and humus, leading to enormously nutrient- and create a product that dense, biologically active pastures that actually improve the land aligns with tastes and attitudes over time instead of bleeding away the nutritive value as many agricultural [practices] have done in the past,” Wehner said. of today’s health-conscious

Connecting With Consumers consumers. Despite being a small company with a commensurately small marketing budget, Dreaming Cow is connecting with consumers via a handful of consumer-friendly digital marketing Don’t skimp on ingredients and store-level engagement endeavors. It also has invested in to save costs—using higher an “experiential marketing van” that will travel the country in 2017-2018 promoting LUSH. priced, nutrient-dense In addition to acquainting consumers with its products, the vegetables reflects commitment company is also keen on communicating its transparency and its commitment to the humane treatment of cows and to product quality and integrity. sustainable farming. It accomplishes this through its packaging, website and social media platforms, including impromptu live Facebook videos direct from the farm. Selecting clinically studied “As Millennials become a bigger buying segment in the marketplace, they are demanding better nutrition from the foods ingredients, such as probiotics they eat,” concluded Jason Therrien, Dreaming Cow’s national for immune and digestive account director. “They are driving companies to be more innovative and are challenging the status quo in nearly every health, boosts the product’s category throughout the grocery store [and] they also want to functionality. see complete transparency of how the food they eat is made, and who makes it.”

The company is committed to doing everything it can to produce eco-friendly products, including keeping an eye on the environmental footprint of its packaging. For example, its new yogurt cups use 40 percent less plastic than conventional 6-oz. cups and are joined together with recyclable cardboard labels.

23 Food Insider Journal The Whole Package September 2017 INNOVATION IN ACTION

Tio Gazpacho: Freshness Is the Foundation of Health and Flavor by Danielle Rose

college, Austin Allan, founder of Tio Gazpacho, went to Spain for a short semester that ended up lasting Tio Gazpacho In four years. As he fell in love with the country, he fell Headquarters: New York in love with its cuisine as well, particularly the fresh, healthy tiogazpacho.com flavors of gazpacho—a traditional Spanish soup made with raw ingredients and served chilled. Upon returning to the United States, Allan began a career in History Tells All banking, but couldn’t get gazpacho off his mind. He founded Tio Gazpacho began in Miami, with products undergoing two Tio Gazpacho in 2012 with the intention of doing for this simple years of testing and sampling before Allan moved the company dish what other companies had done with other traditional to New York. Tio Gazpacho debuted at Natural Products Expo European foods, such as Greek yogurt. East in 2014, and the first three flavors launched in stores in “I was exposed to a product I had never heard of before,” January 2015. Allan said. “I fell in love with it, brought it back to the United Last year, the brand had an explosion of growth, launching States, and reimagined it for an American customer.” the first of three new flavors, and closing a US$1.25 million

24 Food Insider Journal The Whole Package September 2017 Series A funding round with 301 Inc., General Mills’ business development and venture capital arm. One of Tio’s defining moments was its merger with Michelin-starred chef José Andrés and his company, ThinkFoodGroup in November 2016. Beefsteak is Andres’ fast-casual concept where vegetables take center stage. Tio began manufacturing multi-serve packages for use in Andres’ restaurants, which now sell the gazpacho in the restaurant’s grab-and-go section under the Beefsteak label.

It’s All About Variety Tio’s all natural line of six varieties is high-pressure processed (HPP) in BPA-free bottles, paleo, gluten-free, non- GMO (genetically modified organism) and certified vegan. The original three flavors had a focus on gazpacho’s signature ingredient: tomato. Classico is traditional red tomato with green pepper and cucumber, while Del Sol is sweet and bright with yellow tomatoes and peppers, plus carrot. Verde adds avocado, kale, spinach and mint to the traditional tomato soup. In June 2016, Tio Gazpacho debuted Rosado (watermelon, cilantro and cayenne). Maiz (corn, roasted poblano and lime) and Fresa (strawberry, basil and romaine) were added in February of 2017 to much success. Austin Allan, founder of Tio Gazpacho. Packaging Is Everything Allan understands and respects how freshness is the foundation of both health and flavor, and wanted to bring these elements of Mediterranean cuisine to the United researched was pasteurization, concerned about the effect States. Add to that the fast-paced, on-the-go lifestyle of most heat would have on his raw food product. This was when he American consumers, and Allan knew he had to get creative discovered HPP. with the packaging for Tio Gazpacho. Instead of using heat, HPP is achieved through water. Bottles Unlike most soups, Tio is meant to be eaten cold, which are placed in a chamber, which is then flooded to approximately makes it perfect for quick, healthy meals and ideal for single- 80,000 pounds of pressure per square inch. This resembles serve packaging. However, retaining the flavor and health conditions at the bottom of the ocean and, just like humans value of fresh ingredients lent itself to unique production cannot survive if plunged to sea bottom, such an intense and considerations, such as a short shelf life, high price point and rapid change in pressure creates a hostile environment for concerns about sustainable packaging. The first thing Allan shelf-life reducing organisms, as well.

Tio Gazpacho’s initial launches included

Rosado (watermelon, cilantro and cayenne) Maiz (corn, roasted poblano and lime) Fresa (strawberry, basil and romaine) 25 Food Insider Journal The Whole Package September 2017 “The big argument for HPP is more about flavor,” Allan said. “You can taste the individual ingredients of the product, but when it’s [heat] pasteurized, [the flavors] becomes one note.” He knew this was the best, if not only, way to sell his vision of a fresh, raw, nutrition-packed single-serve gazpacho. “I knew that I wanted single-serve packaging,” Allan said. “In Spain, I bought cartons [of gazpacho], but I drank it out of the . HPP preserves nutrition as well as flavor. This was a no brainer for me. I wanted the HPP, and I wanted bottles, so it was a perfect match.” vine-ripened tomato About the Bottles Since HPP requires a flexible that can give under pressure, that meant no glass, no green pepper metals and no cartons. These restrictions, combined with Allan’s intention for the product, made PET bottles the obvious choice. This BPA-free and recyclable option enriches an already health- cucumber conscious product that is also mindful of the health of the planet. “I recycle everything I can, and I think about sustainability in all aspects of my personal life,” he said about his decision for PET bottles. “Now, as an entrepreneur, I think about that in my business as well. I know that there is only a small percentage of recyclable plastics.”

Labeling: The Inside and Out of Real Food Tio’s original label was transparent, allowing consumers to see the product on the shelf. However, since it is all natural, each flavor looks similar, and retailers were confusing the different varieties. This led the company to adopt a wrap-around label that was color-blocked on three sides, but transparent on the back. This compromise offers a more vibrant, less confusing face on the shelf, while still allowing consumers a clear view of the product. This is important, as the texture and inherent bits of produce should speak for the purity and wholesomeness of the gazpacho, Allan noted. This belief in whole, unadulterated food has been with Allan since he was a young boy. A few years ago, he found a childhood quote he made while on a tasting panel for Consumer Reports for kids. He had favored yogurt with fruit pieces, because he said the pieces showed it wasn’t made in a laboratory. Twenty years later, Allan maintains that preference through a product with real food and pieces to prove Tio is the real deal. “It’s a product that has some substance to it, but is still drinkable with a good texture,” he said. “It has good mouthfeel, little tiny bits of corn or strawberry [depending on the variety], so you know it’s real food.” The beauty of Tio Gazpacho is in its simplicity. The produce ingredients are blended to pulp, the oils and spices are added, and everything is ground in a blender. That’s it. From there, it’s bottled, high-pressure pasteurized and shipped to retailers. It’s the HPP process, however, that retains the product’s high quality and flavor.

High-Pressure Processing (HPP)

100% Produce Crushed Bottled Cold, High-Pressure Processed Never Heat Pasteurized ENJOY!!

26 Food Insider Journal The Whole Package September 2017 “The beauty of HPP is that it never heats the product, so it still tastes raw and fresh.” Allan said. “At events, I’ve had Spanish people say to me, ‘This tastes like my grandmother’s gazpacho!’ That’s the ultimate compliment.” Food Supply and Sustainability For Tio has made significant changes in its supply to reduce costs, allowing the company to meet consumer needs without affecting quality. For example, the original bottles came in 12-oz. sizes, which consumers found too big for a Thought single serving. The original varieties were also certified organic, which posed unique sourcing and pricing concerns. Bottles now come in 10-oz. sizes, and the produce is fresh and sustainably sourced, but no longer certified organic. This permitted a significant reduction in cost—the original product retailed at around $9 a bottle, but is now half that—making Tio Gazpacho more Opting for accessible to more consumers. conventional over Opting for conventional over organic produce does not mean skimping on quality, however. Tio now utilizes the same produce buyer as the company’s organic produce partner, ThinkFoodGroup, allowing both businesses to acquire quality produce can significantly directly from a variety of different farmers and growers at affordable prices. This fluidity in sourcing allows for greater sustainability, as produce is chosen reduce costs without from nationwide suppliers based on season, price, availability, quality and growing conditions. compromising quality.

Product Placement and Growth Although product placement varies depending on the retailer, Allan said Tio Investing in costlier Gazpacho has had favorable response when placed with savory soups and production steps such snacking items in refrigerated grab-and-go sections. Much of Tio’s growth has happened organically through word of mouth, as high-pressure Allan said, as well as through traditional public relations efforts. Additionally, in-store demonstrations and features in nationwide publications have gone a processing and long way to building the brand, fostering awareness and boosting sales. recyclable packaging The company’s website is clean, vibrant and peppered with easily understood Spanish phrases and down-to-earth language, mirroring the down-to-earth results in product quality and vibrant flavor of the product itself. “We’re a start up,” Allan said. integrity and consumer “We’re not a stuffy brand, and I wanted the brand to reflect that.” Another boon for business has been offering the product at airport loyalty. restaurants and kiosks. “It’s a great product for airports,” he said. “When you’re hungry there, you don’t want something messy; you want something nice and quick.” Don’t be afraid to

Philanthropy change labeling if it Tio Gazpacho takes fresh, quality ingredients like those in its bottles and offers a more vibrant, helps bring them to the world through its partnership with Development in Gardening (DIG). The Atlanta-based nonprofit helps disease-affected, less confusing face vulnerable populations across the world gain the skills they need to build on the shelf, while sustainable gardens that provide not only food, but a source of income to improve the health of their families and communities. allowing consumers Allan said as a company that creates a premium product, it’s his obligation to give back, and what better a clear view of the way to do this than through a small organization like product. DIG that makes big strides worldwide.

27 Food Insider Journal The Whole Package September 2017 CONTACTS

Clean Label Strategy & Formulation

Food Insider Journal EDITORIAL Food Insider Journal focuses on Editor Judie Bizzozero ...... [email protected] clean label strategy and formulation, Contributing Editors exploring how the shift to simple and Joanna Cosgrove Melissa Kvidahl natural is impacting the food and Danielle Rose 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, Todd Berger ...... [email protected] HEALTH & NUTRITION Jon Benninger Laurel Rivers ...... [email protected] VICE PRESIDENT, CONTENT, HEALTH & NUTRITION Heather Granato Todd Willis ...... [email protected] HUMAN RESOURCES Business Development Specialist, Asia DIRECTOR Donna Layton Jiani Lai ...... [email protected]

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28 Food Insider Journal The Whole Package September 2017