MARCH 2014

Page 4 Emotional Eating: It's Not What You Think

Page 18 The Sweet Tooth Prevails!

Page 20 The Genetics of GMOs

Insight Through the Value Chain I WANT... NAVIGATING CONSUMER ACTIVISM: How industry can be a part of the dialogue without letting consumers’ whims drive business strategy

Brought to you by March 2014 CONTENTS

GMO Technology is Simply 3 Viewpoint 20 Precision Breeding

How Food Activists are Changing the Way Consumers 4 Relate to Their Food 23 The Sweet Truth

Overcoming the ‘Big is Bad’ ‘All Natural’ Remains Elusive 8 Food Bias 26 Term in Food-Labeling Litigation

Communicating Food Transforming the Incredible 11 Ingredients in a Changing World 30 Egg into Credible Marketing

From Clean Label to 7 Must-Have Plays to Change 15 Enhanced Natural 32 Your Online Marketing Game

Sweetener Attitudes vs. Buying 18 Behaviors Among Consumers #THEBRJ

Food Product Design | BRJ BOARDROOM JOURNAL 2 theboardroomjournal.com Viewpoint

Are You the Driver or Navigator?

iven the choice, I’d rather be the driver than the navigator. There’s a perception of greater control and decision-making power that is lacking when sitting in the passenger seat. When traveling in parts Gunknown, the navigator takes on a critical role; if she wants to go off the highway or stop for a bite on the way, giving those directions can take the driver off the expected path. What does this have to do with your business practices? In today’s increasingly interconnected, social media-driven world, consumers are taking an active interest in companies’ business practices and wanting to have more say. Back in the 1970s, if my The challenge mom didn’t like a cereal, she wouldn’t buy it again and maybe would tell the story to a friend or two. Today, she might share the story on Facebook, or write a blog, or write to the facing food company, or start a petition around an ingredient of concern or ... you get the picture. The challenge facing food and beverage companies is to operate in a world and beverage overwhelmed with information—not all of it accurate or productive. Increasingly, consumer companies activists are targeting ingredients, or even whole categories of products, for real (or perceived) concerns, and looking for companies to quickly respond, whether with is to operate reformation or explanation. Every day brings a new story of a company reformulating products (today was Subway removing azodicarbonamide from its bread; last week was in a world the GMO-free Grape Nuts), whether the change had already been in process or was in response to a Change.org petition or other public outcry. overwhelmed This quarter’s issue of The Boardroom Journal delves into the topic of ingredients and with the activist consumer. It’s playing out in the legal realms, as discussed in articles on the “all-natural” label; around ingredient suppliers, with a great look at the comeback of the information— egg from ‘80s concern to ‘10s ideal inclusion; into the marketing department, where our contributors offer insights on how to both listen to and hear consumers; and certainly not all of it across the broader R&D landscape, where bigger issues like biotechnology are facing a frenzied outcry with a lack of rationale dialogue. accurate or Ultimately, businesses are looking to provide consumers with the foods and beverages productive. they want, while running a profitable enterprise that contributes to the economy and keeps folks employed. Keeping an open dialogue and providing more transparency may be the way companies can share the road and keep their customers on board for the long haul.

Best regards,

Heather Granato VP Content, Health & Nutrition Network [email protected]

@heathergranato

Food Product Design | BRJ BOARDROOM JOURNAL 3 theboardroomjournal.com How Food Activists are Changing the Way Consumers Relate to Their Food

BY LORI COLMAN

rom the C-suite to brand management to Professionals such as Greenpeace and Green the food lab, ask virtually any executive America are often crafting impressive multi-media campaigns: involved in food processing what keeps • Most famously, Greenpeace went after Trader them up at night: being the target of food Joe’s for selling red-listed seafood with its activists is sure to be high on the list. We “Traitor Joe’s” campaign (traitorjoe.com) and hit are in the midst of a tremendous power • Nestle for the palm oil in Kit Kat bars (greenpeace. Fshift between businesses and their customers, and org.uk/files/po/index.html). food companies absolutely must have a game plan. • Green America petitioned Cheerios to drop the GMO grains and is now focusing on Grape Nuts What it boils down to is Americans have trust There are multitudes of activist bloggers, a issues with “big food”—myriad recalls, the banning community replete with conferences, awards (“The of trans fats and studies linking the role food plays 100 Best Mommy Blogs”) and entire enterprises in disease have put consumers on the alert. launched by one-time hobbyists who made it big. Labeling laws, the transparency that the Internet There are names like Jamie Oliver and Marion Nestle provides and the outlet for discussion that social who have large followings and seek social change as well. Then, there are common folks with concerns, media offers have collectively created the perfect referred to by the insiders as “amateur activists.” storm for debate and for change. A petition platform that’s making it easy for the Food activists and evangelists are transforming the amateurs is Change.org, which launched in 2007 as relationship people have with what they eat. For a blogging platform and is now solely defined as an processed foods, ingredient performance and empowering platform for sourcing are under the microscope. Yet most food petitions. The statistics are companies are loathe to give these activists the time incredible—40 million global of day, accusing most anyone who questions their users post as many as 1,000 practices as at best uninformed and, at worst, stupid. petitions per day. A recent headline of an op-ed piece in Forbes by In a Fast Company story contributor Henry I. Miller entitled, “How much of (September 2013), Food Activism is Airy Fairy New Age Nonsense?” Change.org’s director of points to the folly of the Food Police and the “loonies” campaigns, Katie Bethel, like Michael Pollan, Mark Bittman and pretty much said, “Campaigns that rise everyone at the Center for Science in the Public to the top are based in Interest (CSPI). What Miller—like many food strong stories of companies—fails to grasp is handling consumer individuals standing challenges with rage or indignation comes off as against injustice that smug and ultimately gets you nowhere. The genie is anyone can understand.” never going back into the bottle and thus created a Change.org recently added new normal for the food industry and a huge the ability for a company opportunity if embraced correctly. But before we dive that has been the target of a into that, let’s first look at the types of food activists petition to be able to post a and some incredible statistics. public response to an issue.

Food Product Design | BRJ BOARDROOM JOURNAL 4 theboardroomjournal.com A recent study by Ketchum Communications took notice. The two women made multiple identified a population segment they call Food appearances on ABC, NBC, CBS, Fox, CNN, Dr. e-Vangelists. Young, financially secure, action- Oz, etc., asking why Kraft would use colors oriented, global in perspective and active online, banned in other countries. On Nov. 4, about nine this group wants to influence the way food is months from the posting of the petition, Kraft raised, grown, packaged and sold. It is estimated announced the removal of the artificial dyes that collectively, they generate 1.7 billion from some of its Mac & Cheese products. conversations about food online each week! Gatorade’s removal of brominated vegetable A few of the more recognized food activists oil (BVO) came on the heels of a Change.org include The Food Babe, Vani Hari petition by Sarah Kavanagh, a young girl who (foodbabe.com) with more than 200,000 asked the company to not “put flame retardant Facebook fans and a Twitter following of more chemicals in sports drinks.” More than 200,000 than 40,000; Lisa Leake, whose “100 Days of supporters signed this online petition and soon Real Food” has 1.2 million Facebook fans; and thereafter BVO disappeared. According to Jamie Oliver, who has nearly 4 million Facebook Gatorade, the reformulation was “in the works fans. Each of them (and many others) has their for over a year as a response to concerns from faithful followers and their detractors. Whether consumers but not because of the petition.” you love them or despise them, you have to Starbucks, on the other hand, took less than a acknowledge their incredible ability to influence. month to switch its red food coloring from cochineal to lycopene as a result of a Change is Inevitable Change.org petition that drew only about 7,000 Recent reformulations by Kraft (Macaroni & signatures. Knowing its audience exceptionally Cheese), PepsiCo (Gatorade) and Starbucks have well, Starbucks adjusted and moved on. In fact, been spurred by activists petitioning online, the company actually apologized. No fighting specifically through Change.org. The way each back. No protesting the unfairness of it all. And of these campaigns unfolded is interesting. certainly, no attempt whatsoever to come off as Let’s look at Kraft. The aforementioned Vani disdainful of its critics. Hari and Lisa Leake posted a petition on Change.org in February 2013 to “stop using Handling it Badly—What We Can Learn dangerous food dyes in our mac & cheese.” In From HFCS and Pink Slime March, Kraft posted a lawyerly response about Two of the most impactful advocacy initiatives following the laws and regulations in the in the past few years have been those against countries where products are sold, and how in “Pink Slime” and high fructose corn syrup the United States all colors are approved and (HFCS). Both are classic examples of missing the deemed safe by FDA. When signatures on the warning signs and responding with outrage petition neared 350,000, the traditional media instead of dialogue. KRAFT Macaroni & Cheese The Problem: “Parents have told us they would like fun Mac & Cheese varieties with the same great taste but with improved nutrition,” according to Lynne Galia, associate director at Kraft Foods. The Challenge: “For many years, Kraft has been reformulating hundreds of products to deliver better nutrition,” Galia said. “Making ingredient changes isn’t as simple as it would seem. All of the ingredients must work together to deliver the distinctive taste, appearance and texture consumers expect and love from Original KRAFT Mac & Cheese. Our fans have made it clear they won’t settle for anything less.” The Solution: “We’ve been working on the character-based Shapes varieties’ relaunch for about a year and a half. It is completely in line with our company’s ongoing efforts to deliver better nutrition in our products, so we have revamped our Shapes line for 2014 by: • adding 6 g of whole-grain per serving • reducing sodium and saturated fat by about 15 percent • using colors derived from spices (paprika, annatto and turmeric) There are five varieties in our reformulated Shapes line—two completely new varieties and three existing ones.”

Food Product Design | BRJ BOARDROOM JOURNAL 5 theboardroomjournal.com Sweet Surprise: The Facts about HFCS is a site Yet they must understand once consumers become managed by the Corn Refiners Association concerned about a food, the damage to a brand can (sweetsurprise.com) and Sweet Scam be rapid and extensive. (scamsweet.com) is a site managed by the Center for Most food product companies are engaged in social Consumer Freedom. Both support perhaps the most media. The smart ones mine the postings for the demonized ingredient of our time, one super seriously, purposes of customer service and research. It is worth the other just laughable with Dr. Ruth consulting a sad mentioning all three companies changing formulations man in a corn suit. Seriously, check it out. Meanwhile, as a result of Change.org petitions are on social media sales of HFCS continue to drop. in a big way. Kraft Macaroni & Cheese has 1.5 million Beef is Beef: The Facts on Lean Highly Textured Facebook and 7,000 Twitter followers. Gatorade boasts Beef (beefisbeef.com) actually posted a headline 6.6 million Facebook and 200,000 Twitter followers. referring to people who spoke out as “stupid.” The Then there’s Starbucks with 36 million Facebook and case study here is mind boggling in that the drumbeat 5.6 million Twitter followers. Is it any wonder Starbucks began years before the whole issue blew up, plants shifted gears so quickly to solve their cochineal issue? were closed and people lost their jobs. Had those in When faced with a petition, savvy companies like charge been paying attention and reached out to have Kraft and, more recently, Chipotle and Chick-fil-A a collaborative discourse, I truly believe things would aren’t taking defensive postures or avoiding the have turned out much differently. conflict; they have invited conversation with the activist community and are working hard on building bridges. Ingredients to Watch For social media, learning what thousands of Will your ingredient (or one you use in your product) consumers think about you should be viewed as become a target? Risks are higher if your ingredient: critical research IF you’re structured to listen, • Moonlights as an industrial chemical (BVO is a respond and react. And react doesn’t necessarily perfect example) mean wholesale reformulating. But at least be open • Is banned in other countries • Triggers allergies, inflammation or other to considering alternatives for product development. health issues Remember, the days when a food company could • Is untested put pretty much anything into its product without • Is being talked about in the “sphere” question are over. Moving forward will require At CBD, we monitor social media to see which greater diligence. I believe enlightened companies ingredients are picking up negative buzz. If you will look upon this new normal as opportunity. manufacture one of the following ingredients or use them in a finished good, having a response will be wise. They are in no particular order: trans fat (OK, we know all about that one), MSG, HFCS, agave nectar, Lori Colman is the founding partner and co-CEO of CBD sodium nitrate and nitrite, BHA/BHT, artificial Marketing (cbdmarketing.com), an award-winning strategic sweeteners, palm oil, refined grains, maltodextrins, branding and integrated marketing firm in Chicago serving potassium bromate, sodium benzoate and benzoic national and global companies in the food and ingredients acid, olestra, GMO, carrageenan. sectors. Colman speaks internationally on myriad marketing topics, enlightening her audiences with new strategic insights What to Do and trend data while championing the consumers’ point of view. The rise in food activism is terrifying to Founded in 1988, CBD is included as a “Top Agency” on BtoB manufacturers and ingredient suppliers that are magazine’s national agency ranking list. Contact Lori at fearful of being on the receiving end of a campaign. [email protected].

Is your ingredient on the ingredient hit list? • BVO • GMO • HFCS • Sodium nitrate • MSG • Carrageenan • Palm oil • Sodium benzoate • BHA/BHT • Artificial sweeteners

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What’s Inside Matters supplysideshow.com Overcoming the ‘BIG IS BAD’ Food Bias New research offers roadmap for trust-building transparency BY CHARLIE ARNOT

ow more than ever consumers are asking they providing more information all along questions about food: What’s the role of about what I’m eating?” technology and innovation? How do I know the Her comment is not unusual. Today’s environment is one where shoppers face food I’m consuming is safe? Are food companies more angst in the aisles, fretting over how to putting profits ahead of public interest? spend their food dollars. Which foods have N been genetically modified? Is organic safer In particular, consumers are increasingly and healthier than conventionally raised skeptical that large organizations, or “big food,” food? Should I buy foods with ingredients I are worthy of trust—believing that mass can’t pronounce? production creates more opportunity for error, We see consumer alienation from the food industrialized food production is inherently system expressed through concerns about The survival of the impersonal and big companies are simply out to nutrition, food safety, affordability, environmental make money. sustainability, animal well-being and other food industry boils Small companies are much more likely to share issues. Those who argue that building and my interests, they say. Case in point: the maintaining public trust is a worthy goal, but not down to building increasingly popular “buy local” movement. If they relevant to success in business, fail to recognize buy local, they believe “people like me” are that the stakes are higher than ever before. This trust. To maintain producing it and trust that it’s produced in a way outdated notion fails to recognize the financial that meets their expectations. benefit of maintaining the trust of stakeholders social license, we Today’s consumers are tired of hearing who can determine the level of social license or “industry speak” from the food industry. They social control an organization enjoys. have to transfer the want authentic transparency—the good, the Social license is the privilege of operating bad and the ugly—and to know companies with minimal formalized restrictions trust of individuals share their values. (legislation, litigation, regulation or market These desires are reflected in The Center for mandates) based on maintaining public trust to the systems we Food Integrity’s (CFI) long-term research and by doing what’s right. Every organization, no emphasized in our 2013 consumer focus matter how large or small, operates with some use in food and groups conducted in Los Angeles, Boston and level of social license. Organizations are Minneapolis, where we asked participants granted a social license when they operate in agriculture. specifically about biotechnology. a way that is consistent with the ethics, values After learning genetically modified (GM) and expectations of their stakeholders. foods have been on grocery store shelves for Once lost, either through a single event like a nearly two decades, a woman from Los food recall, or a series of events that reduce or Angeles responded, “This is beyond scary to eliminate stakeholder trust, social license is me. I feel like I’ve been deceived. Why weren’t replaced with social control—or regulation,

Food Product Design | BRJ BOARDROOM JOURNAL 8 theboardroomjournal.com Historically, the food and agriculture industries have been very good at talking about science and economics, and telling audiences about the how and what. But that doesn’t resonate with consumers; they act on feelings and beliefs.

legislation, litigation or market mandates When under pressure to change, the industry designed to compel the organization to perform often responds by attacking its attackers and to the expectations of its stakeholders. falling back on science to justify current Operating with a social license means more practices—an approach that’s ineffective, to say flexibility and lower cost. Operating with a high the least, in building stakeholder trust and degree of social control increases costs, support. A more effective approach is the use of reduces operational flexibility and increases authentic transparency—reducing the fear of bureaucratic compliance. the unknown and creating a platform for building The survival of the food industry boils down trust. But what constitutes authentic to building trust. To maintain social license, we transparency? CFI’s 2013 research defines have to transfer the trust of individuals to the Trust-Building Transparency and provides a systems we use in food and agriculture. roadmap for the agriculture and food industries. CFI spent several years researching the It helps to first understand when and how we elements of trust and how each element lost the trust of the consuming public—how the contributes to building trust. Our peer-reviewed agriculture and food industries got to a place and published model for building trust shows where they’re forced to defend the business of that communicating shared values is three-to- putting safe, affordable food on families’ tables. five times more important to consumers than Consumer attitudes have changed demonstrating technical skills. We can’t continue dramatically over the past 45 years. Since the to rely on simply educating the public using late 1960s, events ranging from the Vietnam science and economics—our longtime go-to War, assassinations and political scandals to oil strategy. To build trust, we need to change the spills and the financial industry meltdown have dialogue and demonstrate to our stakeholders contributed to an erosion of trust in institutions. that we share their values and are doing the During that same period, consolidation, right things for the right reasons. integration and technological advances have At CFI, our Engage training program is one increasingly resulted in food being viewed as an way we educate those in food and farming on institution. The size of today’s food companies, changing the conversation—in person, online the use of advanced technology, and the change and through traditional media—using the power in size and scale of today’s farms all contribute of shared values to connect with consumers and to the perception that “big food” is an institution other stakeholders. and perhaps not worthy of public trust. Historically, the food and agriculture industries While the application of science and have been very good at talking about science innovation has made food safer, more affordable and economics, and telling audiences about the and more available than ever before, these same how and what. But that doesn’t resonate with advancements now fuel the cultural tide of consumers; they act on feelings and beliefs. mistrusting “big food” and the science that They want to know the why and understand the comes with it. Consumers have been asking for ethics behind our decisions; they want to know more transparency as an important step to what’s driving us to make the decisions we do. overcoming the “big is bad” bias, but up until The science and economics may tell us we now transparency hasn’t been well-defined. can do something, but consumers want to know In our 2013 research, opinion-leading if we should. It’s a very different dynamic. We’re consumers and those most concerned about not great at addressing the should question. food issues have provided clear direction on

Food Product Design | BRJ BOARDROOM JOURNAL 9 theboardroomjournal.com Elements of Trust-Building Transparency

®

Act in a manner that is ethical and Share information consistent with stakeholder interests. that is truthful, -1- objective, reliable MOTIVATIONS and complete.

-2- Share publicly all information, -7- both positive and negative. ACCURACY DISCLOSURE

Share positive and negative information that supports informed stakeholder decision -3- -6- Engage those making and have a STAKEHOLDER interested in your history of operating CREDIBILITY PARTICIPATION activities or impact. with integrity. 7 -4- Share information that -5- Share information is easily understood CLARITY RELEVANCE stakeholders deem relevant. and easily obtained.

www.foodintegrity.org/research

exactly what we can do to overcome their bias Groups interested in undermining the and skepticism. Effectively implementing this agriculture and food industries often are new model will help companies and well-funded, well-organized and eager to fuel organizations build trust with their stakeholders the fire to capture headlines. They’re pursuing and consumers. litigation, pressuring branded food companies CFI identified seven elements of its and initiating legislation to change how the Trust-Building Transparency model and tested system operates. They’re also very good at using 33 attributes of the seven elements in the values to connect with consumers because their 2013 survey. messages are simple and heartfelt. The results show CFI’s definition of Trust- Food and agriculture should own the ethical Building Transparency rings true with the public. high ground, but the only way to reclaim that More than half the respondents gave ratings of in today’s society is to be more transparent. 8 to 10 on a 10-point scale on all 33 attributes. We need to be more accessible and provide More importantly, women and early-adopting information that’s relevant if we are going to opinion leaders who drive public discussion of build trust in today’s environment. food and farming issues rated the elements of trust-building transparency more highly than others—proof of their support. The steps themselves are simple. Charlie Arnot is the CEO of The Center for Food Integrity. Implementing them may be more of a challenge For more information on CFI, check out its 2013 CFI for some companies that aren’t comfortable with Consumer Trust in the Food System Research report radical transparency. But in this day and age, (foodintegrity.org/research) and its Engage shared-values with social media and cell phone videos, anyone training (foodintegrity.org/programs/engage-training). can watch—and report—what you do anytime.

Food Product Design | BRJ BOARDROOM JOURNAL 10 theboardroomjournal.com When Fear and Facts Collide: Communicating about Food Ingredients in a Changing World

BY LINDSEY LOVING AND MATT RAYMOND

f you spend enough time around the water cooler at any company or organic and natural foods seems to have had an organization involved in modern food production, chances are good equal and opposite effect on foods perceived to the conversation might eventually sound something like this: “People be processed. Perhaps no other aspect of food is more highly associated with processed foods just love technology. They stand in long lines for the latest phone or I than foods containing artificial ingredients. tablet. They pine for a future of driverless cars and hypersonic air travel. In addition, the benefits of food ingredients for They marvel at every new medical device or miracle drug. So why are so food safety, nutrition and health are often many of them hostile to new technologies and ingredients that can overlooked, or aren’t even considered. Food improve the food they eat?” ingredients perform a variety of useful functions Some psychologists would tell you the primal in foods that are often taken for granted, such fears of cavemen—about death from predators, as to maintain or improve food safety, freshness inadequate shelter or eating the wrong berry— and nutritional value; and to improve taste, are hard-wired into our modern brains in ways texture and appearance. much more recent fears, such as death in a car It’s probably little surprise, then, those or airplane crash, are not (Garcia, et al., 1955). consumer perceptions of processed and It doesn’t matter that the everyday risks of packaged foods, along with artificial colors and consuming food in the United States are flavors, and many “multisyllabic” ingredients extremely low compared to an automobile have been negative while awareness of their accident: When it comes to what we eat and benefits and functions is low. drink, reason often goes out the window and Attitudinal research commissioned by the emotion takes over. International Food Information Council (IFIC) found 43% That, in a nutshell, has long been one of the 43 percent of consumers are unfavorable toward OF CONSUMERS central communication challenges for the modern processed foods. Most consumers associate food production system. When you add the more processed foods with containing artificial colors ARE UNFAVORABLE recent democratizing influence of the Internet, the and flavors (76 percent), as well as chemicals equation might be stated as: food fears + social with long names (68 percent) (IFIC, 2008). TOWARD However, in the last few years, with increased PROCESSED FOODS media = confusion and misperception. It doesn’t matter that the everyday risks of consuming food in the United States are extremely low compared to an automobile accident: When it comes to what we eat and drink, reason often goes out the window and emotion takes over.

Despite solid scientific evidence supporting communication and education around the role of their safety, currently approved and generally processed foods in the food supply, as well as the recognized as safe (GRAS) food ingredients have safety, functions and benefits of various food been the subject of myths and misperceptions ingredients, consumer favorability toward certain for decades. In recent years, however, the food ingredients appears to be improving, increased interest by consumers in sustainable, although there is still a long way to go.

Food Product Design | BRJ BOARDROOM JOURNAL 11 theboardroomjournal.com According to the 2013 IFIC Foundation Food communities, we have seen an increase in THE & Health Survey, more consumers agreed information—and misinformation—on all low-calorie sweeteners can play a role in weight fronts. This contributes to conflicting and loss/management (45 percent) or can be part of inconsistent information that is difficult for an overall healthful diet (34 percent) than in consumers to interpret. When communicating TOP 2010 (38 percent and 29 percent, respectively). with consumers about food ingredients, the In addition, the percentage of Americans (24 facts are important, but perhaps equally percent) reporting a lack of knowledge about important these days is the consideration of low-calorie sweeteners decreased compared to consumers’ values, lifestyles and beliefs. TWO previous years (34 percent in 2011). Whether Indeed, it is an era that is emotionally driven. these trends continue in the wake of intensified Food is a very personal thing for consumers Gregory Avgerinos, negative media coverage and the broader public and is usually connected to family and senior project manager at dialogue about ingredients such as low-calorie tradition. In particular, moms—who tend to do sweeteners and food colors remains to be seen. the majority of the grocery shopping for their The New England Consulting Similarly, in 2012, 40 percent of consumers households—are concerned with providing Group, named the top-two agreed food colors add to the appearance of safe and nutritious meals for their families. ingredient trends for the food foods, compared to just 29 percent in 2011; a Foods containing ingredients that are little more than half of consumers (53 percent) commonly consumed by children can create and beverages categories: are aware that both natural and artificial food anxiety for moms who want to protect their colors must be labeled on food packages; and children and themselves, and may not be nearly half (46 percent) agree food colors must exposed to both sides of the issue when be reviewed and approved by the U.S. reading about food ingredients in the media or government before being added to food products. in blogs. For example, there has been renewed However, fewer than one in five consumers (19 interest in whether there is a link between percent) think most government and health consumption of artificial food colors and authorities say there is no link between food hyperactivity in children among media and colors and hyperactivity in children. advocacy groups, and, in turn, some moms This general lack of awareness indicates an and mommy bloggers. The most recent study opportunity to provide education about the to indicate a link (McCann, et al., 2007) has roles, regulation and potential benefits of food been the basis for the voluntary removal of ingredients. It is important to make the public select artificial food colors in Europe and aware of the availability of information about petitions to remove artificial food colors from GLUTEN- & food ingredients, whether it is on the label or the food supply in the United States (18 such through credible, science-based information petitions are currently online at Change.org), GMO-FREE on the Internet and in doctors’ offices, or despite decades of safe use and significant through contacting FDA or the product limitations of the study identified by scientists, manufacturer, all of which can provide academics and regulatory agencies such as information to help consumers make informed FDA and the European Food Safety Authority. decisions. IFIC Foundation has produced a For any of us kibitzing around the “What’s in Our Food” resource to help aforementioned water cooler, the task of demystify common ingredients consumers see communicating accurate, credible, science- on the label and educate about their functions, based information can often seem Herculean. uses, and benefits. For example, the website BuzzFeed, which has It has always been difficult to translate gained an enormous following in a few short scientific information to the public, but new years of existence, last summer posted a story challenges—including increased adoption of called “8 Foods We Eat In the U.S. That Are the precautionary principle, the proliferation of Banned In Other Countries.” The factually CAFFEINE & social media, and the release of popular books challenged piece began with the line, “This and movies on food-related issues—have brings a whole new meaning to the phrase ARTIFICIAL added to the complexity, as society reacts to ‘food poisoning.’” It was so replete with images and hypothetical scenarios that spur alarmism and questionable science, and so SWEETENERS fear of the unknown, including what we don’t lacking in context, that one chemist said his know about our food. reaction to it was “incredulity and revulsion.” With never-ending communications taking On the other hand, after IFIC learned a place in the blogosphere and online major network was preparing a similar story

Food Product Design | BRJ BOARDROOM JOURNAL 12 theboardroomjournal.com The public hears about “risks” and wants to take action; however, it is important to put studies and perceived risks into context for consumers in order to avoid unintended consequences, such as eliminating foods and food groups that offer important sources of nutrients, or taking on comparably greater food safety risks.

that had been inspired by the BuzzFeed piece, Also, according to the 2013 Food & Health we worked to ensure the reporter was aware of Survey, consumers say they would rather have credible, independent experts who could provide the common names of ingredients such as salt, the context and accuracy that BuzzFeed lacked. listed on the label, versus the scientific terms, in The result was a far more balanced and factual this case “sodium chloride.” article, virtually devoid of BuzzFeed’s hyperbole. Scientific studies can pose some of the However, it would probably take only one most significant communication challenges, guess to know which of the two stories got the but it is important to place them into context most attention. To date, the BuzzFeed article has and point out their limitations, such as received nearly 5.7 million views, 476,000 methodology, sample size, dosage of the Facebook likes, and 14,000 Tweets. A balanced substance being studied and whether the ABC News version, on the other hand, has study refutes a much larger body of garnered a total of 3,500 Facebook likes and knowledge. IFIC Foundation provides fewer than 400 Tweets (the number of viewers resources to help interpret scientific studies. couldn’t immediately be determined). As new ingredients and technologies become The public hears about “risks” and wants to integrated into the food supply, consumers will take action; however, it is important to put continue to have questions about their purpose studies and perceived risks into context for and safety. Therefore, constant communication consumers in order to avoid unintended about the safety of approved food ingredients is consequences, such as eliminating foods and critical to maintaining consumer awareness and food groups that offer important sources of confidence. Future generations will not have nutrients, or taking on comparably greater benefited from educational efforts conducted food safety risks. when the ingredient or technology was new, Telling consumers how they can take validating the need for consistency in control—for example, by reading labels and communication efforts. consuming more fruits and vegetables—is IFIC’s role for nearly three decades has helpful, while also preserving choice for those included effectively communicating science- consumers who are not concerned and do not based information about health, nutrition and food wish to reduce their consumption of food safety, and helping separate fact from fiction ingredients. when it comes to modern food production. We Explaining the similarities and differences encourage companies and other organizations between food ingredients and foods that are that share these principles to join us. perceived to be more familiar and therefore safer in consumers’ minds can also be effective. For example, every food we eat—even those that are naturally occurring—is made up of Lindsey Loving is senior director of food ingredient & chemical compounds that determine flavor, technology communications and Matt Raymond is senior color, texture and nutrient value. Fresh fruits and director of communications at the International Food vegetables are not required to list nutrition and Information Council and IFIC Foundation. For more ingredient information, but if they were, the list information, email [email protected] or visit of chemicals comprising them would rival foods foodinsight.org. containing added ingredients. A recent series of infographics made this point compellingly (see example on page 14).

Food Product Design | BRJ BOARDROOM JOURNAL 13 theboardroomjournal.com AN ALL-NATURAL BANANA

INGREDIENTS: WATER (75%), SUGARS (12%) (GLUCOSE (48%), FRUCTOSE (40%), SUCROSE (2%), MALTOSE (<1%)), STARCH (5%), FIBRE E460 (3%), AMINO ACIDS (<1%) (GLUTAMIC ACID (19%), ASPARTIC ACID (16%), HISTIDINE (11%), LEUCINE (7%), LYSINE (5%), PHENYLALANINE (4%), ARGININE (4%), VALINE (4%), ALANINE (4%), SERINE (4%), GLYCINE (3%), THREONINE (3%), ISOLEUCINE (3%), PROLINE (3%), TRYPTOPHAN (1%), CYSTINE (1%), TYROSINE (1%), METHIONINE (1%)), FATTY ACIDS (1%) (PALMITIC ACID (30%), OMEGA-6 FATTY ACID: LINOLEIC ACID (14%), OMEGA-3 FATTY ACID: LINOLENIC ACID (8%), OLEIC ACID (7%), PALMITOLEIC ACID (3%), STEARIC ACID (2%), LAURIC ACID (1%), MYRISTIC ACID (1%), CAPRIC ACID (<1%)), ASH (<1%), PHYTOSTEROLS, E515, OXALIC ACID, E300, E306 (TOCOPHEROL), PHYLLOQUINONE, THIAMIN, COLOURS (YELLOW-ORANGE E101 (RIBOFLAVIN), YELLOW-BROWN E160a), FLAVOURS (3-METHYLBUT-1-YL ETHANOATE, 2-METHYLBUTYL ETHANOATE, 2-METHYLPROPAN-1-OL, 3-METHYLBUTYL-1-OL, 2- HYDROXY-3-METHYLETHYL BUTANOATE, 3-METHYLBUTANAL, ETHYL HEXANOATE, ETHYL BUTANOATE, PENTYL ACETATE), 1510, NATURAL RIPENING AGENT (ETHENE GAS).

Food Product Design | BRJ BOARDROOM JOURNAL 14 theboardroomjournal.com From Clean Label to ENHANCED NATURAL BY SIMONE BAROKE

oday’s consumers do not just want products that are natural, fallen afoul of the clean-label trend are artificial free-from potentially harmful ingredients, and low in sugar colorings, which are rapidly disappearing from and fat. They are also seeking something extra, and protein the supply chain in many countries, and, of course, hydrogenated oils that are laden with seems to be the ticket. But are consumers in developed T the dreaded trans fats. and emerging markets equally willing to shell out extra money on The organic category is an obvious “enhanced natural” products? Global business intelligence provider beneficiary of this trend. Euromonitor Euromonitor International delves into this question and considers International health and wellness data shows how this trend may develop in the foreseeable future. despite the economic downturn, global value sales of organic packaged food and beverages rose from US$25 billion in 2008 to US$32.3 The Natural Order of Things billion in 2013, based on fixed 2013 US$ Over the past decade, consumers have been growing increasingly exchange rates. suspicious of what they perceive to be chemical or synthetic ingredients To the health and wellness-minded consumer, “contaminating” their food and drinks. The much-maligned high fructose corn organic epitomizes all that is natural and healthy syrup (HFCS) is a case in point. Although its mono and disaccharide profile by virtue of containing very few permitted does not differ much from that of sucrose, consumers have come to perceive additives and (at least in theory) no pesticide HFCS as a highly processed chemical that is bad for health. residues. Not surprisingly, baby and children’s The food and drink industry has duly reacted by removing HFCS from many foods are particularly buoyant, as parents products andlabels, wherever feasible. Other examples of ingredients that have are often disinclined to take any risks with their offspring’s health, even if they do not habitually buy organic products for themselves. Besides, the “organic halo” has managed to Selected Food Decision Factors, Limited Ingredients transform foods high in fat and sugar, such as chocolate confectionery and cakes, into Limited or no arti cial ingredients “healthy options”—a paradox often lamented by nutritionists. Has limited or no added fat Euromonitor International’s Global Consumer Reduced of low calorie Trends Survey 2013 analyzed the lifestyle traits of 16,300 online consumers in nine major Has limited or no added sugar developed and emerging markets. The survey not only confirmed that looking out for “limited No corn syrup or no artificial ingredients” played a key role in consumers’ packaged food purchasing No trans fat or hydrogenated oils decisions, but that this factor was particularly Has limited or no added salt important in emerging markets, where nearly 60 percent of survey participants claimed to pay 0% 10% 20% 30% 40% 50% 60% 70% attention to this. Emerging markets Developed countries As evident from the graph, the absence of corn syrup and trans fats or hydrogenated oils Source: Euromonitor International Global Consumer Trends Survey 2013 is of importance to approximately one-third of consumers. Tendencies vary from country to Note: Showing the percentage that says it looks for each type of factor on food packaging and labelling country, of course. Russians, for instance, are the most likely to seek out products free from

Food Product Design | BRJ BOARDROOM JOURNAL 15 theboardroomjournal.com Consumers are most willing to spend more money on products with health benefits;3/4 would pay more and 1/3 would pay a price 50-percent higher or more. Women are slightly more willing to pay more for products with health benefits.

trans fats and hydrogenated oils (54 percent), food and beverage categories, even those that while Brazilians are most concerned with limiting have never been associated with protein. One fat (58 percent). example is Global Food U.K.’s launch of Dr Zak’s high-protein pasta in September 2013. Instead Naturalness and Functionality Not an of durum wheat flour, the product contains pea Inherent Contradiction protein isolates, resulting in a formidable 50 g of The elimination of “suspect” additives is protein per 100 g. Standard pasta usually only not enough, however. What is being seen now supplies around 13 g of protein per 100 g. The is besides hankering after natural products, company also intends to introduce high-protein consumers also want functionality; they are tortilla flatbreads, bagels and pizza bases in the demanding what may be termed “enhanced near future. natural” offerings. Another manifestation of the enhanced Probably the most pertinent manifestation of natural trend is the rise of BFY reduced- this is the escalating high-protein trend, which calorie juices, like PepsiCo’s Trop50, has catapulted Greek yogurt to “it product” marketed as “50% less sugar and calories, status in the United States. Chobani (by Agro 100% pure, naturally sweetened”. Trop50 Farma Inc.), ostensibly labeled as containing is positioned as a nectar, not a juice, since “only natural ingredients” and boasting “12 water has been added to dilute the juice g protein” (per 150 g pot), is now the U.S.’s base’s natural sugar content. A stevia-derived leading yogurt brand with sales of US$1.7 sweetener is added to reestablish the desired billion in 2013, equating to a value share of 21 sweetness, allowing the product to retain its percent, up from less than 1 percent in 2008. natural image and a clean label. Since its Greek yogurt is strained, which serves to launch in 2009, Trop50 has climbed to hold make a low-fat yogurt delectably creamy as well as doubling its protein content compared the number two spot in the U.S.’s nectars to standard yogurt—two key points of attraction (25 to 99-percent juice) rankings in terms of for the weight and/or fitness conscious. So, in value sales. effect, consumers are not just getting a natural product with functional properties, owing to its Are Consumers Willing to Pay More? high-protein content, but one that is better-for- Reformulation, innovation and label tweaking you (BFY), in terms of being low in fat, as well. are an integral part of the workings of the food Capitalizing further on the BFY route, in and beverage industries. But are consumers December 2013, Chobani introduced its latest actually prepared to pay more to compensate product into the U.S. market, Simply 100, touted the industry for its ongoing efforts to make by the company as “the first and only 100-calorie products healthier? authentic strained Greek Yogurt made with only Reformulation, innovation and label tweaking natural ingredients.” The sweeteners employed in are an integral part of the workings of the food the new line are derived from stevia, monk fruit and and beverage industries. But are consumers sugar cane. actually prepared to pay more to compensate The protein trend is by no means confined the industry for its ongoing efforts to make to dairy; it is starting to penetrate virtually all products healthier?

Food Product Design | BRJ BOARDROOM JOURNAL 16 theboardroomjournal.com BRIC countries are significantly more concerned than others with choosing foods with protein; over one-fifth of online consumers in Brazil, Russia, India and China do so.

Euromonitor International’s Global Consumer Perhaps the most surprising conclusion Breakfast products, which have previously Trends Survey 2013 provides some of the survey is that consumers in emerging mainly focused on providing extra vitamins, encouraging answers to this nagging question: markets are more likely to pay attention to minerals and fiber, stand to benefit greatly • More than half of global online products offering wellness claims and are from an injection of protein. Many weight- consumers are willing to pay more more likely to pay higher prices for them. conscious consumers are currently avoiding for food items with specific benefits, these carbohydrate-heavy products, and their such as lower fat or added nutrients, Protein is Here to Stay, but Sweeteners reinvention as a source of valuable protein compared to the same product without Need to Watch Out would help a great deal in bringing their such attributes. Clean label and enhanced natural are two image up to date. core consumer-driven developments that are While protein is unlikely to draw • Consumers are most willing to spend here to stay and set to propel new product consternation, “natural sweeteners” like those more money on products with health development for the foreseeable future. The based on stevia and monk fruit, which are benefits;3/4 would pay more and 1/3 high-protein trend, in particular, keys perfectly en vogue right now, may not have such an would pay a price 50-percent higher or into the all-pervasive natural trend, elevating easy ride further down the line. The level of more. Women are slightly more willing to its potential significantly over that of other processing that these ingredients undergo pay more for products with health benefits. functional ingredients, which are at risk of is quite considerable, and consumers may, • A sizeable portion of global online being regarded with some suspicion by a in time, turn against them in their quest for consumers look for food products growing number of consumers. more natural options. with specific nutrients or In short, a lot more high-protein claims will ingredients added over the appear on food and beverage packaging over standard version of the product. The the coming years, and there is still plenty of Simone Baroke is an analyst for Euromonitor most popular are products with added untapped terrain. For example, cereal-based International. vitamins and fiber. breakfast products are notoriously low in protein. Standard cornflakes, for instance, • countries are significantly more BRIC provide less than 3 g of protein per serving. concerned than others with choosing The addition of milk doubles this quantity, but it foods with protein; over one-fifth of still fails to turn a traditional bowl of cereal into online consumers in Brazil, Russia, India a high-protein breakfast. and China do so.

Food Product Design | BRJ BOARDROOM JOURNAL 17 theboardroomjournal.com SWEETENER ATTITUDES BUYING BEHAVIORS VS. BY MARTIN CONCANNON

onsumers are continually met with a mixed bag Each of the segments was given a persona of messages as they navigate the grocery aisles, based on demographic, geographic and lifestyle overwhelmed by product-label claims such as: factors found in the survey. The personas ranged from “No-Health-Worries Walter,” whose “Made with Real Sugar,” “Gluten-free” and “No High segment is concerned very little with ingredients Fructose Corn Syrup.” These claims foster in the found in food, and motivated mostly by taste, Cconsumer the idea that removing a certain ingredient from a product price and convenience to “All-Natural Stacey,” is a change for the better, and one intended to bring long-term, whose emphasis is on finding those foods that positive health benefits. Manufacturers and marketers meanwhile provide proper nutrition and rely on natural often move to these claims citing consumer attitudes; it’s a catch-22. ingredients. The other four segments within the study were developed based on similar lifestyle, The question manufacturers and marketers health and economic factors. need to ask themselves is how aligned are With the Sweetener360 segmentation in consumer attitudes about sweeteners with place, Nielsen Homescan then conducted a The actual buying behavior of sweetened food and purchase analysis on the more than 11,000 beverage (F&B) products? panelists who completed the survey, cataloging Catch-22 A recent study commissioned by the Corn their purchase behavior across 15 high-volume Refiners Association (CRA), and completed in F&B categories. The six segmented groups part by Nielsen and Mintel Consulting, sheds accounted for 88 percent of sales across the 15 light on the answer to that question. Designed categories tracked. Marketer for product developers and marketers, the While more than 50 percent of the consumers Sweetener360 study frames the complete surveyed claimed they are actively pursuing a picture of how consumer attitudes toward healthy lifestyle and avoiding sugars, research sweetened F&B products really affect shopping shows consumers buy sweetened F&B behavior for specific products and brands—all products proportionately to their makeup of the Consumer No HFCS within the context of six distinct and diverse general population. For example, one of the consumer lifestyle segments. lifestyle segments labeled “Julia” accounted Resulting in a segmentation analysis of for 15 percent of the total population. Julia’s more than 11,000 consumers, Sweetener360 segment claimed to actively avoid sweetened Made with found consumers who claimed to actively F&B products when navigating the grocery avoid specific sweeteners still make up an aisle. However, consumers in this segment still Real Sugar important portion of the sweetened F&B accounted for 14 percent of the total sweetened purchasing public—but they aren’t doing F&B market. Even “Stacey’s” segment, which what they say. represented the most health-conscious and Developed in 2013, a 30-question survey natural-ingredient-seeking group and accounted expanded on previous sweetener-focused for 17 percent of the total population measured, research conducted by Mintel since 2010. was responsible for 14 percent of the total Unique to this most recent installment is the sweetened F&B purchasing public. partnership with Nielsen, the unprecedented Whether they were purchasing yogurts, sample size and the resulting segmentation breads, soda or ketchup, no matter which based on distinctive sweetener and nutritional sweetener consumers claimed to avoid, their profiles. Six segments were identified in total, purchasing behavior remained an integral representing 88 percent of the U.S. population. portion of the sweetened F&B market.

Food Product Design | BRJ BOARDROOM JOURNAL 18 theboardroomjournal.com So why are consumer attitudes out of alignment with consumer buying behavior? Sweet The Sweetener360 study found taste and price were greater motivators in consumers’ decisions to buy sweetened F&B products than were general health and wellness claims. Motivators When given a list of 20 attributes and benefits of F&B products, consumers in five out of the six lifestyle segments ranked these four motivators highest for buying: good tasting (90 percent), good value for the price (82 percent), a price I can afford (80 percent) and something I know that my kids will like (79 percent). Taste Furthermore, 67 percent of consumers agreed in order $ to live a healthy lifestyle, moderation is more important than sweetening ingredients. The key takeaway here is the Sweetener360 study bridges & the gaps between what consumers say about their feelings toward sweetened F&B products, and how those feelings translate into purchasing behavior. Price Actual purchasing data shows consumers don’t necessarily practice what they preach. While a number of consumers claimed to be avoiding specific sweetening ingredients, their purchasing data shows that is simply not the case. The research shows consumers generally buy sweetened F&B products proportionately to their makeup of the general population, no matter what type of sweetener ingredient used. Health Overall, the taste and price of products was proven to be the chief motivator in what consumers decide to buy, rather than general claims of health and wellness. While many & brands have altered sweetener ingredients based on the loud voices of a single segment, it is important to look at the true behaviors of multiple lifestyles to develop successful Wellness sweetener strategies.

Martin Concannon is the founder and managing director of Lafayette Associates in Lexington, KY. He has more than 20 years of experience advising companies in the areas of business strategy and finance. Marty’s work at Lafayette focuses on helping organizations use data to drive business decision-making. His clients include the Corn Refiners Association. To learn more about the Sweetener360 study, visit cornnaturally.com/sweetener-360.

Food Product Design | BRJ BOARDROOM JOURNAL 19 theboardroomjournal.com GMO Technology is Simply Precision Breeding BY KEVIN M. FOLTA

n need of a solution Eleven years ago when I began my career as 70 percent of Florida’s trees are infected. The a professor at the University of Florida, I would disease has also been identified in California, enjoy the sunny drives downstate from Texas and Brazil, as well as many other places in I Gainesville. As I’d progress further south, the the world. Because of its long-latent period, a landscape became dominated by a truly minor patch of infection is a cold harbinger of a beautiful sight—lush orange groves bearing much larger problem to come. Florida’s iconic fruit. The sea of dark green To combat the problem plant breeders have foliage contrasted the cloudless blue sky, and sprung to action. There is a worldwide search for was punctuated with frequent spots of bright resistant trees, trees containing a gene that may Disease-resistance genes orange. Its scale was amazing, a credit to the make the tree unattractive to the psyllid, genes farmers that grew them and the plant breeders that could block the bacterium, or perhaps are well understood in that coalesced favorable genetics into elite genes that allow the tree to live just fine while productive trees bearing succulent fruit. It was a infected. If found, such a gene could be bred plants and hundreds combination of plant genetics, orchard into elite orange varieties, conferring resistance of them have been management and a magical environment that and slowing, if not ending, the disease. But even produced this wonderful sight. if that gene was identified today, it would take characterized. We eat Today, the same drive is remarkably different. years to breed it into existing plants, as each Many of the groves that stood as a jungle of generation of trees only flowers after years in the thousands of them and leaves and frequent fruits now stand as gray field. Obtaining the correct combination of good their products in every skeletal botanical remains. Bare branches genes against the greening disease and keeping extend coldly above untended weeds below, the good genes that support fruit productivity salad. These genes choking out what’s left of occasional patches of might take decades. A vital industry that yellowing leaves and an occasional small green produces a healthy and delicious product cannot encode proteins that fruit. Devastation is hardly complete. Other wait that long. oppose microbial growth groves have remained productive, but only through intensive management and high cost. Solutions Exist through a wide variety Even in these cases the leaves are noticeably Disease-resistance genes are well understood yellow and the oranges fall easily from the trees in plants and hundreds of them have been of mechanisms. What if to the ground below, unusable. characterized. We eat thousands of them and one of these resistance The Florida citrus industry knows this decline their products in every salad. These genes encode as the disease “huanlongbing,” also known as proteins that oppose microbial growth through a genes could be moved citrus greening. The disease is a complex web of wide variety of mechanisms. What if one of these symptoms caused by a bacterial colonization of resistance genes could be moved from something from something like an the plant’s vital vascular tissues, blocking like an apple tree, spinach plant or maybe a small apple tree, spinach plant nutrient flow, reducing root mass and choking weed to citrus—and then arrest citrus-greening out nutrition to tissues that need it. Infected disease? Such transfers across diverse species by or maybe a small weed to trees may stand for years before developing traditional breeding are just not possible, as it is symptoms. They also may unknowingly spread as difficult to cross a grapefruit tree with a banana citrus—and then arrest the pathogen. The disease travels from tree to as it is to cross a mouse with an elephant. citrus-greening disease? tree, vectored by an insect called the Asian But what if that one effective disease- citrus psyllid, a small creature with penetrating resistance gene, naturally occurring in a food mouth parts that become contaminated with the plant we already eat, could be placed into the bacteria before passing it to the next tree. As of citrus tree, making it immune, or at least the writing of this article, it is estimated that tolerant, to the disease? It could be done, it has

Food Product Design | BRJ BOARDROOM JOURNAL 20 theboardroomjournal.com An inspector for the Florida Division of Plant Industry slaps Asian citrus psyllid (the insects responsible for the bacterium that causes citrus greening) from a grapefruit tree.

Source: Joe Raedle/Getty Images; Originally published in the Washington Post online Jan. 12, 2014 been done, and the plants seem to thus far chemicals and radiation to damage DNA and cultivars prior to deployment. The rice will be do well in greenhouse trials hot with the induce genetic changes. These practices, and donated, royalty-free, to small farmers. disease. Here the gene that helps the plant many others that are surprisingly random, Another possibility is using a potato’s own survive the disease was simply plucked from dramatic and unnatural, are the foundation of gene sequence to shut off genes associated one plant (in this case a gene from spinach) many foods we eat, and have never been with the production of asparagine (an amino and moved to citrus using a process that has questioned for safety. It simply is another way acid) in the potato tuber. Potatoes produce a been with us for decades—recombinant DNA to generate genetic variation, the basis of a small yet significant amount of acrylamide technology. Many other recombinant DNA, or new valuable trait. when cooked at high temperatures, based on transgenic (commonly referred to as But what if a researcher were to move that natural chemical reactions with asparagine. genetically modified organism [GMO]) one understood gene, rather than a genome Acrylamide is toxic, so decreasing asparagine solutions, are in the works and show promise. full of thousands of unknowns? What if a in the potato tuber could make a more While not commercially available, the gene could be moved to an elite variety healthful potato. example from oranges shows how the without losing favorable traits, just gaining the These two examples are not science fiction. transfer of a gene from one species to one desired trait? This is the process of They are all plants that have been designed to another can work to potentially solve a creating a transgenic plant, also thought of as produce desirable products containing an monumental problem. Moving a gene is what a GMO. The GMO is indeed a misnomer, as important trait. Many more are being developed plant breeders have done for thousands of GMO crops undergo almost no genetic and will bring benefits to consumers, farmers, years, shuffling the genetic deck with modification relative to the massive the needy or the environment. human-mediated hybridizations to try to place restructurings that come with conventional These benefits have been realized already. a stack of favorable genes into one single breeding. Making a transgenic plant moves a In 17 years of cultivation, GMO crops have genetic background. Every fruit or vegetable single understood gene into a new plant, ensured farmer yields and brought great you eat today has been genetically remodeled bringing with it the trait of interest. For environmental benefits. There is no question by plant breeders, crossing plants that would example, in citrus this might be a gene that that farmers appreciate these seeds for the typically never hybridize without human makes the plant immune or asympomatic to traits they bring, making it profitable to intervention and significant cost. The genetic the greening disease. produce agronomic crops like corn, canola, mixes have been guided by careful hunches, Recent examples show how the technology soybeans and cotton. Some of these crops observations and maybe some genetic can lead to healthier products. In rice, such are grown with a trait that allows fields to be knowhow, but in general the process has a engineering has been used to introduce a treated with mild herbicides (namely major element of randomness and is fraught pair of genes that allows rice to produce glyphosate, a compound with the acute with unknowns. Breeders know they moved beta-carotene, the orange-yellow pigments in toxicity of table salt, replacing less safe the gene of interest if they can follow the trait carrots. Upon consumption, the beta-carotene herbicides) to combat competing weeds. it confers, but there’s no easy way to account is converted to vitamin A, and could possibly Others have a gene that leads to the for the other negative genetic baggage that alleviate disease and blindness caused by production of a protein that is toxic only to travels along, or the good genes that may be vitamin A deficiency. This solution remains in larvae of specific insects, stopping crop lost. Some plant breeders have used development, now moving into productive rice damage without insecticidal sprays. These

Food Product Design | BRJ BOARDROOM JOURNAL 21 theboardroomjournal.com genes and their products have been studied truths rather quickly. In all of these cases a rabid activist fringe ranting unabated by for decades and are among the most (and hundreds others) beliefs inconsistent scientific opposition. The tide is changing. As well-understood genes and gene products in with facts have a hard time competing with science is distorted in the name of political plant biology. However, these plant lines have hard science. So how to do you influence agendas and profits, a traditionally quiet mostly benefited the farmer and the hearts and minds if you don’t have evidence cadre of public-sector scientists is waking up environment, as farmers achieve desired on your side? You manufacture risk around to the reality that those who know nothing are yields with fewer inputs (less fuel, labor, the technology in question. For some, attempting to dictate a scientific conversation. chemicals), less soil disturbance and certainly manufacturing perceived risk has become a less broad-spectrum insecticide. The full-time job, and a profitable one. Farmers also realize a vocal minority is technology works. That’s why farmers use it. Animals in general don’t like risk. Risk attempting to dictate the seeds they can grow Ninety-some percent of corn, soy, cotton and avoidance is a deeply ingrained program that and who they can buy them from. Fueled by canola acreage is GMO. has ensured the forward movement of genes, an Internet where the achievements and Of course, every technology has limitations. as, in general, cautious tendencies made it reputations of scientists are viewed as equal The widespread use of herbicide-resistant more likely for our ancestors to survive, get to rants of self-appointed “experts,” it is crops has opened opportunities for resistant interested in a mate and eventually important to let science, evidence and reason weeds to thrive in fields, as their competitors reproduce. To this day, humans maintain a prevail in affecting public opinion and shaping are killed off by herbicide. This selection for strong aversion to risk and those opposed to public policy. surviving weeds has led to widespread GMO technology exploit this inherent The citrus industry needs a solution. A tree invasion of resistant-weed species that will tendency. Scaring people with food-based takes years to grow and be productive. A need new technologies to again suppress. technology is an easy charge. Food has deep gene from another plant may be a solution. It Solutions are being developed to slow this cultural meanings: We have plenty of it. We evolutionary arms race. have plenty of choices. Then, the topic is could save an industry and maintain the In any situation there are benefits and complex; we have little reverence for science consumer’s pipeline of healthy juice and fresh risks, and the emergence of resistant weeds education, and the concepts sound oranges. One of the barriers separating the is certainly a limitation of the technology. Yet somewhere between sterile and alien. problem and a solution is the concern that in 17 years of intensive cultivation, these Together it is a perfect storm to manipulate consumers will question the product, or even crops have delivered far more benefits—they fear and increase the perception of risk to worse, boycott and bury it in misinformation. allow farmers to remain profitable, keep food achieve a political or profitable agenda. It is sad that public scientists produce a costs low, and provide renewable sources of This is the state of the discussion of solution that just might work, but its fuels and fibers. Products from these crops agricultural biotechnology. The technology is development and deployment will be slowed appear in 70 percent of grocery store foods, not new; it has been in development for more because of manufactured fear. and since their deployment almost two than 30 years and has been successfully Citrus is just one case where a biotech decades ago, there has not been one single deployed for the better part of two decades. solution could have great dividends. We live case of illness, allergy or death that could be The crops grown are among the best tested attributed to these plant products. Before in the world, and the genes and traits are on a planet where a billion people wake up marketing they must pass a rigorous safety understood with remarkable resolution. The with empty bellies, where one missing battery, making them safer than products technology has been rapidly adopted by nutrient is the difference between life and produced by conventional breeding. farmers, and undoubtedly had profound death, and where crop plants need to be impacts in saving time, labor, fuels and more prolific with less environmental impact. Manufacturing Risk, environmental impacts (such as decreased Major industries need fast solutions. Manufacturing Fear insecticide use). Again, problems like Transgenic technologies simply do what plant History shows whenever a revolutionary herbicide-resistant weeds can’t be ignored, breeding has always done—move a gene scientific concept or new technology is but the risk and benefit equation is heavily from one background to another. It is adopted, there always is some skepticism. weighted to the benefits. integrating genes in months or years rather That’s healthy, to a point. From the earth in There is no question that these than decades. We need to be using every tool the center of the universe, to explorers sailing technologies have been safe and effective. to solve today’s agricultural challenges and off the edge of the earth, to coffee, There is massive potential in how they may pasteurization, immunization and in vitro help the farmer, the consumer, the needy and precision breeding through biotechnology will fertilization—just about every major scientific the environment going forward. The central be part of that solution. advance has garnered a collection of barrier is the anti-scientific beliefs and detractors and their dissent. Those in influence of activists that manufacture fear to opposition try to argue against carefully influence public perceptions. assembled scientific evidence with opinions Who do we want dictating public policy Kevin M. Folta is the associate professor and founded only on closely held beliefs. However, around the science of food safety, food chairman of the Horticultural Sciences Department at science tends to find and reinforce hard security and food technology? Right now it is University of Florida, Gainesville.

Food Product Design | BRJ BOARDROOM JOURNAL 22 theboardroomjournal.com THESweet Truth BY ROGER CLEMENS, DR.PH

onsumers seek to understand, while There was a lingering concern in 1987 based on scientists seek to communicate. In an era consumer reports that aspartame consumption of rapid social communications, the latest contributed to migraines and possibly other adverse research results appear on the Internet reactions. Subsequent epidemiological studies, clinical Cbefore peer review and their assessment relative to trials and additional toxicity investigations on brain the preponderance of evidence. With social media as cancer, headaches, allergenicity, cognitive the dominate form of communication, it’s imperative performance, multiple sclerosis and obesity following scientists learn to engage on this level. There are the exposure to aspartame do not support the public’s five basic principles that should be addressed when unhealthful contentions. From an international examining emerging research and consumer concerns perspective, the FAO/WHO Expert Committee on Food with any research or media story on food and food Additives concluded each substance, such as ingredients linked to health. Those fundamental aspartame, should be evaluated on a case-by-case principles include: basis (Huggett et al., 1998; FAO/WHO, 1997). About the same time (1985), FDA established an quality Adverse Reaction Monitoring System, where the 1 agency collected and evaluated anecdotal accounts of consistency health problems associated with food consumption, 2 including aspartame (Tollefson L, 1988). From 1982 to 1994, anecdotal reports following aspartame quantity consumption were monitored, which has since been 3 discontinued. These data and contemporary clinical impact consumption on this sweetener is about 10 percent of the ADI without any adverse events or anecdotal 4 reports (Renwick & Nordmann, 2007). generalizability A recent comprehensive review of the Nurses’ 5 Health study and Health Professionals follow-up study indicated excess aspartame consumption was not These principles are discussed briefly relative to the associated with leukemia or blood-related cancers, popular and often controversial topics of aspartame, high pancreatic or breast cancer, or any relation with other fructose corn syrup (HFCS), stevia and other sweeteners. forms of cancer (Marinovich et al., 2013). These findings differ from two other studies that suggest, in Aspartame a rodent model, aspartame exposure is carcinogenic Aspartame, discovered in 1965, has been studied (Soffritti et al., 2006 & 2007). Upon review of these and scrutinized more than any other sweetener in the studies, for which FDA was unable to obtain all of the history of food ingredients in the United States; yet, data, the agency concluded the studies would not alter controversy surrounding the safety of this food its position on aspartame as a safe, general purpose additive persists. Nearly 10 years later, FDA approved sweetener in food based on the preponderance of limited usage of this sweetener due to potential historical evidence (FDA, 2007). changes in plasma phenylalanine (an amino acid) and Despite these findings, some research published deviations in brain neurotransmitters. These areas within the past several years suggest the excess represent fodder for more recent investigations and consumption of aspartame, and perhaps through its fuel for debate. Classical acute and chronic toxicology components (phenylalanine and aspartic acid) or studies indicated no adverse events associated with metabolites (methanol and diketopiperazine), may intakes well above the suggested acceptable daily contribute to some adverse effects within the central intake (ADI) of 75 mg/kg bw. nervous system (Rycerz et al., 2013; Humpheries et

Food Product Design | BRJ BOARDROOM JOURNAL 23 theboardroomjournal.com al., 2008). One report indicated with aspartame, markedly diminished suggests the purported when injected into the brain of mice, there were weight issues are about total energy intake, mild inflammatory disturbances and increased and not an association with HFCS per se oxidative stress in this tissue (Abdel-Salam et (Blanck et al., 2006). al., 2012). While there is evidence that On a global basis, there appears to be a aspartame metabolites can cross the blood- positive association between HFCS brain barrier, the direct exposure at elevated consumption and availability, and the doses via intra ventricle injection only adds to prevalence of diabetes (Goran et al., 2013). the public’s confusion and concern, without Several animal studies indicate HFCS can delineating or clarifying potential adverse events induce insulin resistance, also known as promulgated through social media. metabolic syndrome, and some forms of An extensive A comprehensive review of nearly 30 years of inflammation (Ma et al., 2013; Figlewicz et al., data indicates the consumption of aspartame is Physiol Behav 2009). It is important to note review on safe, a position accepted by more than 100 that obesity itself induces local inflammatory countries of the world (Magnuson et al., 2007). responses, particularly in adipose tissue. the possible Despite the interesting studies that suggest HFCS HFCS consumption impacts metabolic relationship HFCS has been an integral component of the syndrome (Ferder et al., 2010), our food supply for approximately 40 years. understanding of fructose and glucose, as well between HFCS Numerous maladies have been ascribed to this as sucrose metabolism does not support a ingredient deemed safe by FDA. Those maladies direct or causal relationship between HFCS and consumption and include cardiovascular disease, diabetes, obesity an increased risk of diabetes. Rather, it is an and an array of other metabolic disturbances array of dietary components and lifestyles that obesity indicated such as poor pregnancy outcomes, gestational contribute to these adverse health conditions diabetes and possibly cognitive decline (Tappy et al., 2010; Schaefer et al., 2009). The this carbohydrate (Regnault et al., 2013; Bray GA, 2013; Lakhan greatest impact of HFCS on diabetes and other and Kirchgessner, 2013). HFCS components, non-communicable disease appears when matrix does namely fructose and glucose, are the same as there is excessive consumption, as noted by not contribute those found in all fruit and honey. Many studies other energy-containing foods and food indicate the metabolism of fructose and glucose components (Ha et al., 2013). Importantly, to overweight in HFCS does not differ from that found innately when consumed at practical levels in a in many agricultural products (White, 2008). The free-living environment, HFCS does not impact or obesity any potential health implications of HFCS and related established endocrine and metabolic pathways carbohydrates were the subject of discussion that can contribute to disease, such as more than any and extensive review during the 2010 Dietary diabetes and obesity (Yu et al., 2013). Guidelines Advisory Committee deliberations. other energy- An extensive review on the possible Stevia relationship between HFCS consumption and Stevia is a sweetener that is innate to Stevia containing food. obesity indicated this carbohydrate matrix does rebaudiana Bertoni. This plant is native to South not contribute to overweight or obesity any America and is now cultivated in many more than any other energy-containing food countries, including Paraguay, Kenya, China (Forshee et al., 2007). A similar conclusion was and the United States. The leaf extract that delivered by the 2010 Dietary Guidelines contains more than 95 percent of steviol Advisory Committee and others (USDA, 2011; glycosides has been deemed safe for use in an Rippe and Angelopoulos, 2013). Several array of foods by major regulatory agencies, systematic reviews on this relationship indicate including FDA (GRAS status, 2008), Joint FAO/ inconsistent evidence linking HFCS to obesity WHO Expert Committee on Food Additives among children (Morgan, 2013). That obesity in (JECFA, 2000, 2009), Codex Alimentarius the United States and globally appears to be (Codex, ), WHO (WHO, 2009), Food Standards stable while the consumption of HCFS has Australia New Zealand (FSANZ, 2008),

Food Product Design | BRJ BOARDROOM JOURNAL 24 theboardroomjournal.com Rule of 27/9/3: Indicates the message should be limited to 27 words, delivered in 9 seconds and 27/9/3 provide three messages. Switzerland’s Federal Office for Public Health Research findings on this topic are inconsistent, (2008), Health Canada (2009) and the European yet the media did not present the spectrum of Food Safety Authority (EFSA, 2010). This information that illustrates the complexities of regulatory position is supported by a broad sensory satisfaction, eating patterns and obesity. It spectrum of classic acute and chronic toxicology is incumbent upon the media and communicators studies and exposure assessments that indicate to provide credible messages in context of the its consumption does not pose a health risk to preponderance of evidence. humans (Brusick, 2008). In Japan, stevia was As scientists spend more time in front of a camera, subjected to thousands of clinical studies, behind a microphone or on a social media keyboard, including assessment of potential impact on they can be assured that controversy and concerns reproduction and allergenicity. The Japanese will prevail. Thus, it is imperative to consider three Ministry of Health, Labor and Welfare concluded approaches in framing key messages: stevia was safe and suited for use by diabetics and those following weight-management 1. Rule of 27/9/3: Indicates the message regimens (Geuns, 2002). should be limited to 27 words, delivered in 9 In a review of non-nutritive sweeteners, the seconds and provide three messages Academy of Nutrition and Dietetics noted, based 2. Rule of three: Focuses on education, in that on numerous clinical studies published since the three messages should be repeated 2003, the use of stevia among diabetics, those three times with hypertension and overweight, did not 3. Rule of AGL-4: (average grade level exacerbate the conditions (JAND, 2012). minus 4) Know your audience. Use words Importantly, the same review indicated the quality that are clear and in a language that is easily of the cited studies was only fair. Others reported understood by the target audience. The that stevia, like aspartame, did not contribute to messenger should consider the average energy compensation after diabetics consumed grade level (AGL) of the audience and low-calorie meals. In addition, stevia was subtract four years. This is not intended to be associated with significantly reduced condescending, but rather it is intended to be postprandial glucose and insulin, which are understood. desirable among diabetics (Anton et al., 2010). Randy Olson’s book, Don’t Be Such a Scientist, states scientists tend to be so cerebral that they Communications are not readily understood. He emphasizes the With the emergence of social media and other value in storytelling in such a manner that means of rapid communications, messages— engages the audience while delivering accurate often without scientific scrutiny and review—are rapidly broadcast globally. Yet, the traditional information through an interesting style. Bottom elements of effective communication prevail, line, scientists should be ready to communicate a namely conflict, criticism and controversy. good story to which the audience can relate … An incomplete story regarding the consumption personalize the message as we encourage others of carbonated beverages that contain non-nutritive to understand. sweeteners, such as sucralose and saccharin, was published in Trends in Endocrinology and Metabolism. In this case, the story indicated these products caused obesity versus stating that some Roger Clemens, DrPH, is the adjunct professor, of these people compensate for energy pharmacology & pharmaceutical sciences, at USC School of consumption by consuming calories in excess. Pharmacy, International Center for Regulatory Science.

Food Product Design | BRJ BOARDROOM JOURNAL 25 theboardroomjournal.com Remains Elusive ‘ALL Term in Food- NATURAL’ Labeling Litigation BY JOSH LONG

“All natural” remains an elusive included in, or has been added to, a food that slogan for food manufacturers would not normally be expected to be in a food,” Kux pointed out. The U.S. Department of facing an onslaught of proposed Agriculture (USDA), which has jurisdiction over class-action lawsuits. meat and poultry, has a similar definition, and explains that products and ingredients must Gruma Corp., Campbell Soup Co. and General be “minimally processed” in order to qualify as Mills Inc. had been counting on FDA to clarify natural, according to Ricardo Carvajal, a Hyman, whether food could be labeled “all natural” if it Phelps & McNamara, P.C. lawyer who provides included genetically modified organisms (GMOs). FDA and FTC regulatory counseling and litigation Proposed class-action lawsuits filed against support to companies specializing in foods, the food giants alleged labeling of “Natural,” cosmetics and over-the-counter (OTC) drugs. Stephen Gartner, “All Natural” or “100% Natural” was misleading Such definitions have done little to because the food contained corn grown from quell dozens of lawsuits that allege food litigation director seeds that had been genetically modified. manufacturers’ use of “all natural” or “100% Although judges in the federal lawsuits deferred natural” is deceptive and misleading. Stephen of the Center for to FDA on the answer, the agency responded it Gartner, litigation director of the Center for would not be appropriate to decide the issue in Science in the Public Interest (CSPI), estimates Science in the litigation. FDA would likely commence a public there are approximately 50 lawsuits over the proceeding such as publishing formal guidance term natural. And more could be filed soon. Public Interest or a regulation if it were going to change its policy On Jan. 9—just three days after Kux revealed on the term “natural,” Leslie Kux, FDA’s Assistant FDA wouldn’t rule in the lawsuits—CSPI (CSPI), estimates Commissioner for Policy, wrote in a letter on Jan. 6. threatened to sue Kraft Foods Group Inc., if it “Here, given the complexities of the current didn’t remove “natural” from certain lemonade there are request, including the competing concerns and iced tea mixes. According to the consumer among and between stakeholders (e.g., various advocacy group, the beverages contain several approximately 50 consumer organizations, diverse industry artificial ingredients like citric acid, potassium segments), it would be prudent and consistent citrate and sodium citrate, rendering the word lawsuits over the with FDA’s commitment to the principles of “natural” deceptive to consumers. term natural. And openness and transparency to engage the public “By marketing its Crystal Light products as on this issue,” Kux stated. ‘natural’, Kraft deceives consumers and takes more could be With limited resources, FDA also must advantage of their preference for foods made prioritize on such public health and safety entirely with natural ingredients,” Gardner wrote filed soon. matters as implementation of the three-year- in a letter to Kraft. old Food Safety Modernization Act, issuance of A spokeswoman for Kraft declared the nutrition labeling regulations and responses to company’s “labels comply with the law and are outbreaks of foodborne illness, she said. not misleading.” FDA has not formally defined “natural” but its FDA’s letter implied the agency doesn’t plan to policy characterizes the term on food labeling define “all natural” in the near future and makes as “nothing artificial or synthetic (including all it harder for defendants to argue that courts color additives regardless of source) has been should defer to FDA’s expertise in “all natural”

Food Product Design | BRJ BOARDROOM JOURNAL 26 theboardroomjournal.com Distinctions consumer make between “organic” and “natural”

Meaning of Organic Meaning of Natural Absence of pesticides 64% 46% Absence of herbicides 60% 45% Absence of growth hormones 59% 49% No artificial flavors, colors, preservatives 56% 56% Absence of antibiotics 55% 45%

Absence of GMOs 54% 46%

Source: The Hartman Group, Inc. lawsuits under a doctrine known as primary argument that has been raised in labeling the use of the term ‘All Natural’ is not jurisdiction, according to William Dance, a suits: Even if an ingredient doesn’t contain deceptive in context,” U.S. District Judge trial lawyer who is a member of the Food, something artificial, substances made John Walter ruled in a seven-page order on Beverage and Cosmetics Group with Tucker with certain technologies that cannot Oct. 25, 2013. Ellis LLP in Los Angeles. be replicated by the consumer, such as Rejecting Webster Dictionary’s definition Food lawyers point out the actual merits bioengineered ingredients, are not natural. of natural—“produced or existing in of such labeling lawsuits rarely, if ever, are “It’s a difficult area to advise companies nature”—Walter observed, “The reasonable decided due to the extraordinary costs and in because you have a FDA policy and consumer is also aware that the ingredients uncertainty of bringing a case to a jury or an USDA policy and you have all these in Buitoni Pastas, such as sugar, wheat and judge for a decision. The lawsuits either get lawsuits that articulate these different skim milk, do not come directly from plants, dismissed on procedural grounds such as theories,” Carvajal explained. trees or livestock.” for failure to state a claim, settle or class But attorney Daniel Herling of Mintz, Food lawyers Boardroom Journal certification is denied, Carvajal said. Levin, Cohn, Ferris, Glovsky and Popeo, P.C., interviewed are not aware of any “all natural” Certification of a class is a critical juncture indicated the lack of a clear definition of food-labeling cases that have gone to trial on in a proposed class-action lawsuit because natural may actually benefit defendants in the merits. Dance cited the “tremendous risk” it swings the pendulum in favor of plaintiffs, food-labeling lawsuits because it is harder to for both plaintiffs and defendants to take a giving them leverage in negotiations for a show that the term is misleading. case to a judge or jury. settlement, food lawyers say. Denial of a Case in point: Last year, a federal judge “If class certification is granted, the class is virtually fatal to a suit because only dismissed a lawsuit against Nestle USA defendants usually prefer to settle than to go the named plaintiffs can proceed. Prospective Inc. that alleged its use of “all natural” on to trial,” he said. damages in food labeling cases denied class packaged pasta was false and misleading Such settlements can cost defendants certification are minimal. because the food contained at least millions of dollars and be extremely lucrative Plaintiffs have raised a number of two ingredients that were unnatural, for plaintiff’s attorneys, who can pocket as arguments for why “all natural” claims are artificial or synthetic. The named plaintiff much as 40 percent from a settlement. But deceptive and misleading. For instance, couldn’t state a claim under the California labeling food “all natural” remains enticing Carvajal observed some labeling cases Consumer Legal Remedies Act and for consumers. According to CSPI, a survey “seem to draw on this idea that a natural California Unfair Competition Law “because revealed the term was the most popular food food or a natural ingredient should be she fails to offer an objective or plausible label among consumers, followed by “all minimally processed.” He cited another definition of the phrase ‘All Natural’, and natural ingredients.”

Food Product Design | BRJ BOARDROOM JOURNAL 27 theboardroomjournal.com 22.1 percent of food products and 34 percent of beverage products introduced in the United States during the first half of 2013 claimed to be “natural,” down from 30.4 percent and 45.5 percent, respectively, in 2009, according to Datamonitor.

Still, Herling said a client’s decision to remove “Each company has to look at the benefits and natural from its labels did not negatively impact the risks associated with the use of the claim sales. “There was no adverse impact to their and make a decision, ‘Is that a claim that I marketing,” he said. want to use?’” Others have taken similar action either Justin Prochnow, a Denver-based shareholder voluntarily or through agreements. For instance, with the law firm Greenberg Traurig LLP, as part of a $9 million proposed settlement in a recommends food companies making natural consolidated class-action lawsuit, Naked Juice labeling claims specify which ingredients are agreed to remove “All Natural” references in its natural and exclude other substances from advertising, labeling and marketing. Naked Juice the definition. “The more specific you are, the anticipates the changes will cost it $450,000. less ability a plaintiff’s lawyer has to try and “Companies are tending to pull back from pigeonhole you into a position that you might not the natural label because it isn’t worth it right have intended,” Prochnow added. now,” Lori Leskin, a lawyer at Kaye Scholer LLP Ultimately, FDA may provide further direction and co-head of the American Bar Association’s on permissible label claims. The agency was Products Liability Committee, told The Wall recently notified that the Grocery Manufacturers Street Journal. Association (GMA) plans to file a petition Datamonitor reported 22.1 percent of food asking it to “issue a regulation authorizing products and 34 percent of beverage products foods containing ingredients derived from introduced in the United States during the biotechnology to be labeled natural.” As of first half of 2013 claimed to be “natural,” deadline, GMA did not respond to a request for down from 30.4 percent and 45.5 percent, comment on its planned petition. respectively, in 2009. Carvajal said food companies that decide to use “all natural” labels should identify ways to mitigate risks associated with the claim. Josh Long is the legal and regulatory editor for “I wouldn’t advise a client not to use the claim VIRGO’s Health & Nutrition Network, which includes because I think ultimately that is a business The Boardroom Journal. decision,” Carvajal, a former associate chief counsel in FDA’s Office of Chief Counsel, said.

Food Product Design | BRJ BOARDROOM JOURNAL 28 theboardroomjournal.com BY ROGER CLEMENS, DR. PH

efining the term natural outside of the confines of a dictionary is On the other hand, the Association of challenging from multiple perspectives. In 1988, FDA articulated its American Feed Control Officials (AAFCO) opinion on the use of natural. In this case, the agency informally adopted defined and promulgated a definition of the position that natural means nothing artificial or synthetic has been “natural” several years ago. AAFCO is D supported by the Center of Veterinary added to a food that would not normally be expected to be in the food. In 1993, Medicine, which is under the regulatory FDA adopted a casual guideline that allows the use of the term natural to be used jurisdiction of FDA. That definition states: “A as noted in 1988, while not restricting its use except for added color, synthetic feed or ingredient derived solely from plant, substances and flavors (Federal Register, 1993). There was then and remains animal or mined sources, either in its today a broad disagreement among regulatory officials and the interested public unprocessed state or having been subject to as to the meaning of natural for extended applications. physical processing, heat processing, rendering, purification, extraction, hydrolysis, Approximately 10 years earlier, USDA’s published a request for comments on the enzymolysis or fermentation, but not having Food Safety and Inspection Service (FSIS) term natural (Federal Register, 2006). been produced by or subject to a chemically suggested a policy that natural allow Following receipt of about 12,000 comments synthetic process and not containing any “minimally processed” to be applied to meat from the public, FSIS noted: additives or processing aids that are • a need for rulemaking; and poultry products. In this case, minimally chemically synthetic except in amounts as processed refers to: a) traditional processes • consider multiple ingredients; might occur unavoidably in good to make food edible or to preserve it or to • reflect on future, nontraditional food manufacturing practices (AAFCO, 2013).” make it safe for human consumption (e.g., processing methods; and Until there is a uniform regulatory smoking, roasting, freezing, drying, • possibilities of enhanced food products. fermenting); or b) physical processes that do definition of natural, there will discordant not fundamentally alter the raw product and/ A final rulemaking has not been advanced positions within the food industry, among or which only separate a whole intact food due to limited resources within the agency, advocacy groups and throughout the into component parts (e.g., grinding meat, potential implication of superior quality or community of consumers. separating eggs, pressing fruits) safety, and complexity of the issue. (21CFR101.22). Interestingly, since 2010, the federal courts Fundamentally, minimally processed, of sought guidance from FDA on this issue while potentially ambiguous, refers to (e.g., Coyle v. Hornell Brewing, 2011); Roger Clemens, Dr.PH, is the adjunct professor, processes that can be performed in the however, the agency declined to develop pharmacology & pharmaceutical sciences, at USC home, traditional processes and do not industry guidance due to other priorities that School of Pharmacy, International Center for fundamentally alter the food. In 2006, FSIS favor food safety. Regulatory Science.

Food Product Design | BRJ BOARDROOM JOURNAL 29 theboardroomjournal.com Transforming the Incredible Egg into Credible Marketing BY JOANNE IVY

he American Egg Board (AEB) has a very positive product effect on serum cholesterol levels. After years to promote and our marketing messages simply reflect of documented, published studies, USDA was the good news about eggs and egg products. The egg is a convinced there was no reason for consumers to restrict egg consumption. nearly perfect food—both healthy and nutritious. T The American Heart Association (AHA) today, for example, stresses overall dietary regulation As an ingredient, real eggs offer a surprising and healthy practices, rather than focusing on number of functional benefits to accompany its specific foods, and includes advice to consume healthy and nutritious profile. In addition to the all foods in moderation. In fact, the overall millions of eggs sold to consumers on the retail nutritional profile of eggs presents an attractive level, one-third of all eggs produced are used in picture for consumers and industry alike. foodservice or food manufacturing applications in either a dried, liquid or frozen format. Eggs One single large egg contains 6 g of supply formulators with more than 20 different protein plus a complete set of nutrients functional properties. except vitamin C, including a good source of vitamin D, providing at least 10 percent of the AEB Oversight recommended daily allowance (RDA). Egg farmers provide the source of funding Eggs also contain choline, lutein and for the American Egg Board (AEB) through zeaxanthin. For example, studies show While the truth a national legislative check-off on all egg individuals who consume foods rich in lutein production from companies with more than and zeaxanthin have a lower risk for age-related about eggs remains 75,000 laying hens. The board is appointed by macular degeneration (AMD), the leading cause 1,2 the U.S. Secretary of Agriculture and consists of of irreversible blindness in the United States. the same, we might 18 members and 18 alternates, all from regions While eggs contain only small amounts of of the country that produce eggs. Members lutein and zeaxanthin, research suggests these simply emphasize are nominated by certified state and regional nutrients might be more bioavailable from eggs a different aspect organizations representing egg producers. than from richer sources. The AEB is the link between these U.S. egg or role the egg can farmers and the consumer to help communicate Shifting Consumers’ Buying Patterns the value of the incredible, edible egg. Through the years, AEB has changed its play depending on In terms of messaging, U.S. Department of marketing emphasis based on the prevailing Agriculture (USDA) oversight of AEB programs trend, or nutritional or functional aspects prevailing trends. ensures all of our communication, whether in a required to meet these shifting needs. marketing context or not, is scientifically proven All indicators point to gluten-free as a with validated research. Everything AEB publishes, growing market segment. Eggs fit particularly prints or tweets (Editor's note: including this well into the gluten-free market as binding article) must obtain USDA approval. and texture are quite important, particularly in bread. Sodium has been on the radar screen as Nutrition and Health well and eggs are naturally low in sodium. And Particularly when AEB communicates health in today’s grab-and-go snacking culture, eggs and nutrition news, USDA approves its messages are perfectly suited for a nutritious, energy- based on a significant body of research that packed breakfast sandwich. confirms the subject validity. Internally, we’ve So while the truth about eggs remains the always known eggs were a very nutritional same, we might simply emphasize a different food, and that research was demonstrating aspect or role the egg can play depending dietary cholesterol was not having a significant on prevailing trends. There isn’t a trend I can

Food Product Design | BRJ BOARDROOM JOURNAL 30 theboardroomjournal.com think of that eggs, as a unique functional and And egg producers continue their incredible nutritional ingredient, don’t suit. success meeting U.S. demand for eggs. The We know there is going to be a subset of latest complete set of figures available is for consumers who might follow a strict vegan year-end 2012, when egg farmers produced a diet; however, there are many who are simply total of 223.7 million cases of eggs, according trying to cut back on meat or reducing their food to the USDA National Agricultural Statistics intake. Eggs are still accepted and play a vital Service. The industry increased hen supply by nutritional role in most vegetarian diets. just 18 percent to meet the demands of a U.S. Producers are passionate about their industry consumer population that grew 72 percent over and concerned about feeding the growing that same 50-year time period. population with an affordable source of high- Egg farmers are doing their part, not only quality protein, in addition to giving consumers a supplying a nutritious and affordable source of choice. Alongside conventional eggs, consumers high-quality protein, but also looking at ways to can find cage-free, nutrient-enhanced eggs, egg use resources wisely. Over the last 50 years we white separated from the yolk—multiple choices have lowered our usage of all types of resources for multiple consumer needs. to make it a much more sustainable industry. This attention to sustainability gains Shifting Demographics increasing importance in light of the fact that The changing face of America as the Latin eggs are one of the most affordable sources American, Asian and Mexican populations increase, of protein in a world with a rapidly expanding presents yet another opportunity for eggs. Eggs are global population—a population that requires pan-regional without cultural boundaries. sustainable food sources containing the types of In America due to our restaurant experiences, essential nutrients found in abundance in eggs. we think of Asian and Mexican cuisine with AEB provides resources that assist food protein as center of the plate. To the contrary, manufacturers to develop new products or the typical in-country dining experience, in formulations that take advantage of these either Asia or Mexico, doesn’t often focus on market opportunities. Each year the industry meat. However, anywhere you go in those communities, you’re never far from an egg. Eggs conducts a volumetric study to help gain an offer an affordable source of protein or act as a accurate assessment of egg product usage to binding agent in many ethnic cuisines. identify trends and provide our egg farmers a In addition to cutting across ethnic good return on their check-off marketing dollar. boundaries, eggs service the nutritional needs of demographic groups based on age as well, providing essential nutrients from the cradle through the golden years. Joanne Ivy is the president and CEO of American Egg Board (AEB). AEB offers a website, technical assistance The Environment and collateral materials explaining egg usage and Here we have a tremendously great story to functional properties. For more information about the tell. As consumers express growing concern American Egg Board, visit aeb.org. over the environment, the egg industry had proactively commissioned a study related to sustainability, comparing 2010 egg production References: methods with those used in 1960. 1. Klein R, Klein BE, Jensen SC, Meuer SM. The This 50-year evaluation revealed egg five-year incidence and progression of age- producers have increased egg output while related macular degeneration. Ophthalmology. reducing the environmental impact. Every aspect 1997;104:7–21. of the process, from creating more nutritious 2. Goldberg J, Flowerdew J, Smith E, Brody feed to advancements in hen housing and JA, Tso MOM. Factors related to age-related manure management, for example, has helped macular degeneration: analysis of data form the conserve vital resources while contributing to First National Health and Nutrition Examination hen health and longevity. Survey. Am J Epidemiol. 1988:128:700–710.

Food Product Design | BRJ BOARDROOM JOURNAL 31 theboardroomjournal.com MUST-HAVE PLAYS to Change Your Online 7Marketing Game BY MICHAEL WEISSMAN nline marketing is an increasingly brand’s sales. Perhaps the brand reputation lost a little important venue in a business’ epic luster to a few people for a short period of time. Today, battle to win customers. The constantly that same dialogue could have a 1,000-fold greater negative effect through social media sharing. Plus, the evolving technologies and methods for O visibility for negative comments is magnified. A negative playing online, however, can make it difficult for comment is rarely removed from online forums—even if executives to know—with confidence—how to a problem is fixed. This creates a more-than-normal make a play in the game. As a result, they’re left negative characteristic to brands versus offline. playing defense instead of offense. The purpose of this article is to share what the real game is all about Everyone can have social and the best ways to win the play and the customer. influence. The social influence of one person within their peer group is The Fundamentals of the Game flattened and widened online. In the 4physical world, a small peer group typically Before we open our playbooks, there are five fundamental truths you must understand for why “offense is the best discounts a crazy person’s opinions. Online, they defense” for your business: are not necessarily discounted. An online reader has no way to determine whether the reviewer is Brands matter. There is no doubt that the need for a person to be believed and followed. And there brand investments has never been higher. In a world may not be a lot of time to make the distinction where access to alternatives is wide and the ability for before impact is felt: Online, it can take an instant new brands to break in is improved, brands can play a and within a single day, a negative experience can 1significant role in creating clarity for buyers. Plus, shoppers become a major event. are still purchasing brands versus private labels. As retailers expand their private label portfolios, however, the You’re not in control. The whole idea of need to create strength and distinction in independent controlling the conversation is no longer product brands will grow. feasible. The idea of bombarding consumers with broadcasted marketing messages and 5controlling the conversation is out the window. Ingredients matter. Marketers clearly recognize the importance of ingredient Consumers control the conversation now. Plus, with the branding. This takes on two primary advent of these new social media amplifiers, they have a forms: branded ingredients, which have better ability to control the conversation than the brands 2been an important part of the co-branding do. Any company that tries to shut down a negative experience (think Heath bars inside a Breyer’s ice conversation merely moves the conversation from obvious cream), and ingredient-based product attribute public places within the brand’s view to less obvious (such as gluten-free). Companies such as Whole places outside of their view. Moreover, these aggressive Foods built entire businesses on this principle. The tactics creates great animosity among current and need for effective communications about these prospective buyers. This is true even when the comments attributes has never been higher. are completely fictitious. Often, competitors will put fake negative reviews on company’s sites to harm the brand in The conversation is forever. People forget; some way. This is no different than when competitive the Internet does not. This is a critical ingredient brands sponsor academic research to distinction. In the old days, a bad customer besmirch alternative ingredients and promote the benefits experience that used to be shared between a of their ingredients. Yet, again, online the issues are 3cloistered set of moms had very little impact on a given amplified, forever.

Food Product Design | BRJ BOARDROOM JOURNAL 32 theboardroomjournal.com The Plays for a Winning Offense your position or who have misaligned interests So, now that we are through that fun news, what from yours. The benefit of the Internet is you can we do? Actually, a lot. Here are seven plays you get improved visibility to what people are can make to regain footing and move toward an saying and how they are saying it. offensive (and practical) game plan: Understanding the foe you fight and the weapons being used against you will allow you Listen, listen, listen. Most companies don’t to better respond—it’s more than half the listen. Most boards don’t listen, either. This battle right then and there. continually amazes me, but it’s a truism. I have worked with some of the largest (and smallest) Be in the right. Take a hard look in the 1brands in the world and universally, I see brand mirror and ask yourself, “Are we being real executives excusing their brands or justifying why with customers or feeding them a little (or a negative perceptions are out there. This is highly lot) of b.s.?” I think most of us would 3probably admit, if we were honest, that we’ve been problematic and ineffective. The first suggestion is to really listen to the customers. The way to do this is to acting as spin doctors. But today, this kind of behavior will be called out unfavorably. The Internet create a list that McKinsey & Co. used to call (maybe makes it very easy for consumers to acquire they still do) MECE or “mutually exclusive, information you may not wish them to have. If an cumulatively exhaustive” of all the comments (pro and ingredient is bad for consumers, they will find out con) consumers make about the brand. Really strive about it. If you have an ingredient problem, that for as comprehensive a list as possible. Don’t try to problem will not be remedied via some whitewash discount the comments. Be discrete and thorough. campaign. Consumers can sniff out whitewash from You will be amazed by what customers say about your a mile away. The truth will rule the day and your brand. Once this list is created, try to listen again and brand will be worse for it. understand why these consumers have these perceptions and opinions. Try to separate between Build the story. It’s your brand; it’s opinions based on misunderstandings and those your story: tell it. Tell it broadly. Tell it based upon empirical experiences (even in frequently. Tell it boldly. Tell it anomalies). One secret to accomplishing this task it to effectively. Use whatever means avoid looking for someone to blame. At this stage, the 4possible to get your story right and well- goal is unfiltered data. understood by your consumers. The best- known brands like Starbucks recognized early Be prescient. Get ahead of the the importance of brand storytelling, but many trouble. Technology is agnostic, but companies still don’t get it. Or, worse, they get people are not. Social media can be it but the board doesn’t fund it. These used for good (and evil) and many companies complain about how they are 2foes will use it against you. Be aggressive perceived, yet they fail to invest in telling users of technology—both for observing the effective stories about their brands. As board behavior and opinions of your customers, but members, don’t expect brand results without also looking at those who advocate against investment. It’s no longer a free ride.

Food Product Design | BRJ BOARDROOM JOURNAL 33 theboardroomjournal.com Stay ahead of the curve. Don’t wait for may have an equal or even greater ability to the crisis to emerge; educate the communicate and control the share of voice. consumer ahead of the crisis. For If you are soft and the other side is loud, you example, I was working with a large will lose—even if you are in the right. 5technology company that was about to sue its smaller, but most-critical, competitor for patent Give your advocates weapons. You’re infringement. They knew many consumers would not in the game alone; your friends are consider their action anti-competitive. So, as a your best offense team. These are preventive measure, they created a whole website individuals who advocate on your behalf, with FAQs about this action ahead of the legal 7reseller partners, employees, etc. You must equip injunction they sought and launched a highly your constituents with the best amplification tools effective campaign of dealing with these concerns like YouTube, SYNQY, SlideShare, Prezi and others on the day the news broke. As a result, the negative to share your story more effectively. Most sentiment about their legal action lasted hours and companies try to control the story with a small team not any longer. Once consumers were apprised as of marketing folks; this won’t do. You must leverage to why the company did what it did, consumers your marketing and provide scalable mechanisms were empathetic to the company’s circumstance. to share and amplify your story. If your company There are many positive lessons here. First, know has an ingredient that has been deemed what will make your consumers mad. Second, if problematic, for example, you can provide online you are in the right (see #3 suggestion), provide the tools to explain your position. Then, you can have rationale to your actions. Why are you using that your constituents trained on where to find those ingredient? Is it flavor? Is it cost? Be honest. It will tools and use them to communicate your story to help. Third, diffuse the perception (or their friends, etc. misperception) that you are hiding by being upfront Whether you follow all of these tactical plays, it’s with consumers; this will build trust. By observing important you embrace online marketing as a core actual behavior of many executives, it’s clear to me factor in a winning game. Embracing it now with an that many vendors don’t fully believe it applies to “offense” mindset and approach will help you raise branding, but honesty really is the best policy. your game for the long haul.

Spread the news. The secret to communications is share of voice—how much this negative With 25 years of high-technology marketing experience with communication represents as a large companies and start-ups—and 15 of those years in 6percentage of overall communications. Share senior executive positions—Michael Weissman is currently of voice is critical. In the old days, share of chairman and CEO of SYNQY Corp (SYNQY.com), a leading voice was solved with broadcast Internet marketing technology that adds deep interactivity communications. A large company could and engagement to digital images. As a brand marketing out-communicate a small group of advocates. consultant, Weissman has advised some of the most Today, it is more challenging. If you don’t successful companies in technology including Apple, work actively in social media, broadcast Amazon, Adobe, HP, Intel and Symantec. He is also co-author media, traditional media, alternative media, of The Paradox of Excellence, which has been published in etc., you will lose because this small group seven languages.

Food Product Design | BRJ BOARDROOM JOURNAL 34 theboardroomjournal.com The FPD Boardroom Journal explores concepts being debated at the boardroom level that impact business planning and strategy in the food and beverage market in a digital format, delivering content in an easy-to-consume manner with complementary assets such as video, infographics, slideshows and more.

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