A Wake-up Call for ‘Big Food’

Yesterday afternoon, I snacked on chipotle-lime beef jerky while sipping a stevia-sweetened sparkling beverage. Last night, I cooked dinner for four with a meal kit delivered to my house. This morning, I skipped the cereal sitting dormant in my pantry and grabbed a high-protein nutrition bar from a local company for breakfast as I scrambled out the door. Like me, large swaths of consumers have fundamentally changed their food consumption habits, and small- and medium-sized manufacturers have taken advantage of those shifts to the detriment of established “big food” manufacturers.

As reported in A.T. Kearney’s “Is Big Food in Trouble?” report, the top 25 food manufacturers in the United States have ceded 300 basis points of market share to small- and medium-sized competitors since 2012—and have had anemic annual growth of 1.8%. Changes in consumers’ core values—amplified by social media, celebrity chefs, and a myriad of food experts—are rewarding small- and medium-size companies with annual growth rates of 11–15%.

Will New Dietary Guidelines Shift Americans Toward Healthy Eating Patterns?

On January 7, health professionals and policymakers heralded the 2015–2020 Dietary Guidelines for Americans (DGA), updated to reflect current nutrition science. The DGAs provide evidence-based healthy eating principles for the public to reduce the risk of chronic disease and maintain a healthy weight. The document is published jointly by the U.S. Dept. of Agriculture (USDA) and Dept. of Health and Human Services (DHHS) every five years, and this newest edition will serve as a foundation for nutrition policy and programming through 2020.

According to a word content analysis conducted by FoodMinds, one of the most marked evolutions in the DGAs is the emphasis on overall healthy dietary patterns across the life span. To me, this holistic approach to healthy eating represents a shift in how we’re talking about nutrition and health.

Vanilla: From Concern, to Crisis, to Creating Solutions

This irony exists throughout the business world—when prices are low and supply is high, no one’s thinking, “Uh-oh, this is trouble,” but they should because underlying dynamics during such a market-favorable time can frequently turn the tide. Additionally, because these influences fly under the radar and work quietly amidst the noise made over low prices, when they hit, they can hit with major consequences.

This very dynamic was set in motion for the vanilla market five years ago. Prices reached a historic low, allowing food and beverage companies that use vanilla to enjoy a stable vanilla flavor cost of goods. While everyone was “riding the wave” of low-cost vanilla, the market forces behind the scenes for what we are seeing now were building.

The Limbic System Wins—Or Does It?

Food myths and beliefs are deeply rooted in people since they are connected to the emotional or limbic system of the brain. And research shows that rational arguments are often not taken into consideration when someone is embarking on a health change like dieting or purchasing products.

In the June Food Technology Food, Medicine & Health column, I discussed the importance of communicating science and how fragile the communication system is today. As one of my examples, I drew attention to Alan Levinovitz, author of The Gluten Lie. At first blush one might wonder why a philosophy and religion professor from James Madison University is writing about food and related behavior. However, upon further exploration, the connection between the two concepts—food behaviors (myths and beliefs) and religion—becomes apparent.

The U.S. Organic Food Market: From Niche to Mainstream

Infographic courtesy of Walmart

The U.S. organic food market has grown significantly and changed dramatically since its birth during the 1970s as a counterculture movement. Its growth rate slowed during the recession then rose back into double-digits in 2011. In 2012, organic food sales for at-home consumption totaled $26.3 billion (Wohl, 2014) and comprised over 4% of total U.S. food sales for at-home consumption (Greene, 2013). Produce and dairy products are the dominant categories, accounting for 43% and 15% of total organic sales in 2012 (Greene, 2013), respectively. The Nutrition Business Journal is projecting that the organic food market will exceed $60 billion by 2020 (Wohl, 2014).

According to the Hartman Group, health concerns are prominent in consumers’ reasons for buying organic foods and beverages. Six of the top 10 motivations were (in descending order): “safer for me,” “avoid pesticides,” “avoid GMOs,” “avoid growth hormones,” “for nutritional needs,” and “safer for my children.”

In 2012, mass market retailers, such as Walmart and Target generated 46% of U.S. organic food sales, while 44% of the sales were attributable to natural and specialty retailers. After being sold to Whole Foods in 2007, the former natural foods chain, Wild Oats, has reinvented itself as a food processor providing high-quality products that are affordable and easy to shop for. Its current organic product lines include canned beans and tomatoes, condiments, cookies, milk, vinegar, pasta sauce, grains, nuts, soups, spices, salads, and pre-packaged sandwiches. Now, Wild Oats is partnering with Walmart to supply a subset of these products to the big-box retailer at reduced prices. Meanwhile, Target has re-organized its displays by aggregating certain natural, organic, and sustainably-focused products to make it easier for consumers to find such items (Wohl, 2014).

Potential Buyers for Hostess Brands: Retailers vs. Food Companies

On November 20, Hostess announced that mediation with its bakers union had failed and that the 82-year-old company would proceed with liquidation plans. The good news is that the company’s iconic brands, such as Twinkies and HoHos, may not be gone for good. There may be multiple buyers of the individual product brands under the Hostess umbrella or there may be a single buyer who acquires them all. But rest assured, they will be sold because they have real market value. Estimates are that the combined sale of Hostess could be worth over $2 billion.

In Defense of Food Science and Technology

The title of a recent article in Food Technology (December 2011, pp. 32–37) on “Cleaning up Processed Foods” should trigger negative reactions for any food science and technology professional. Although the title may be an attempt at being provocative, the implications of this title for an article published in Food Technology are very serious. In a societal environment with the image of processed foods being questioned almost daily, communications from IFT should contribute to a better understanding of food processing.

Audio Interview: What Consumers Around the World Will Want from Food Companies in 2020

On March 28 and 29, IFT will be holding its annual Wellness conference in Rosemont, Ill., offering attendees unbiased perspectives, news about emerging trends, and information on how other organizations within the food industry are penetrating the health and wellness sector. Recently, Kelly Hensel, Digital Media Editor at IFT, spoke with Linda Eatherton, Partner and Director of Global Food & Nutrition Practice at Ketchum, who will speaking at the conference’s closing session about what consumers around the world will want from food companies in 2020. Linda joined Ketchum in 2001 to lead the firm’s worldwide Food & Nutrition Practice. Prior to that, she served as the Vice President of Public and Industry Communications for Dairy Management Inc.

Five Food Trends for 2012 and Beyond

On the food front, Americans may be finally accepting that we are what we eat and start walking the walk. Even our new taste for Nordic cuisine is fueled, perhaps, by images of the lean, robust, and outdoorsy. But what other things are trending on the food front for 2012–13?

Food Science, Technology Contribute to Feeding A Growing Population: Audio Interview Part 2

Part 2 of the audio interview between Kelly Hensel, Digital Media Editor at IFT, and John Floros, Head of the Department of Food Science at Pennsylvania State. In this segment John explains the challenges we face to feed a population which is expected to reach 9 billion people by 2050. In addition, he addresses consumers’ negative perceptions of processed foods, and finally, he shares some tools that he believes are currently being underutilized that may help improve our efforts to feed a growing population. John has worked in the food processing industry, was on the faculty at Purdue University, and since 2000 he has been leading the . He is widely published, is currently a Member of the Science Board for the Food & Drug Administration, and a Fellow and Past President of IFT.