AGRI-FOOD TRENDS 2014: Color’s Role in Food, Beverage Acceptance

FORMULATING FOODS

Formulating Foods explores the latest health and nutrition news and research—as well as the latest ingredient and food application innovations—to determine what consumers want (and need) from the food and beverage products they consume, and how industry can make it happen. 

Color’s Role in Food, Beverage Acceptance

Rachel Adams

August 12, 2014 - Blog

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Color not only affects the visual appeal of foods and beverages, but also plays into perceived taste. Getting color right is critical to a product’s success.

The color of a food or beverage product is often a consumer’s first encounter with a product; it’s a visual first impression that can result in a sale (or not) and ultimately influences a consumer’s enjoyment of a product.

What’s more, color influences how consumers perceive taste and quality, and can impact their preferences. In fact, some companies have learned the hard way about the powerful link between a product’s appearance and acceptance. For example, PepsiCo’s short-lived Crystal Pepsi proved that consumers didn’t love clear cola. It failed to meet their expectations for how cola is supposed to look, and how clear soda should taste.

Color additives serve a number of purposes in food and beverages, which include, according to FDA: “to offset color loss due to exposure to light, air, temperature extremes, moisture and storage conditions; to correct natural variations in color; and to provide color to colorless and ‘fun’ foods."

FDA classifies permitted colors as certified or exempt from certification. The former are synthetically produced; the latter are—for the most part—derived from natural sources. Increasingly, consumers are looking for the latter.
In fact, Mintel data shows that from January 2009 to December 2011, the global use of natural colors has been much higher (66 percent of launches) than synthetic/artificial colors (34 percent of launches) in new food and drink products.

When working with natural colors, simple solutions may be the answer, such as mixing different colors together to create a wider variety of hues, or formulating with antioxidants to improve the shelf-life of natural pigments. Other times, more aggressive solutions are needed, as every color and source presents its own set of problems.

For a closer look at food and beverages colors—including natural color options and an overview of caramel colors—download Food Product Design’s free Digital Issue, “The Color Issue."

Coke buys $2.15-billion stake in Monster energy drinks

DUANE D. STANFORD

Bloomberg News

Published Thursday, Aug. 14 2014, 5:52 PM EDT

Last updated Thursday, Aug. 14 2014, 6:00 PM EDT

Coca-Cola Co., the world’s largest beverage company, agreed to buy a 17 per cent stake in Monster Beverage Corp. for $2.15-billion, increasing its bet on the burgeoning energy-drink market.

The move is part of a deal that will include the transfer of Coca-Cola’s energy drinks NOS, Full Throttle, Burn, Mother and Play to Monster, according to a statement today. Monster, meanwhile, will shift Hansen’s natural sodas and juices, Peace tea and Hubert’s lemonade to Atlanta-based Coca-Cola.

“It gives them exposure to one of the fastest-growing segments of carbonated soft drinks globally,” said Ali Dibadj, a New York-based analyst at Sanford C. Bernstein & Co. “The category’s growth is clearly slowing in the U.S., but the potential is very strong globally.”Under the agreement, the two companies will share marketing, production and distribution. Coca-Cola, which already distributes Monster in the U.S. and Canada, will expand the arrangement globally, helping the energy brand grow overseas.

The investment fits into Coca-Cola’s strategy of taking equity stakes in promising new brands and technologies, especially as its main source of revenue is under threat from a shift to healthier habits. In May, Coca-Cola said it would boost its stake in Keurig Green Mountain Inc. to 16 per cent, making it the coffee brewer’s largest shareholder.

Board Members The Monster deal is “a capital-efficient way to bolster our participation in the fast-growing and attractive global energy drinks category,” Coca-Cola Chief Executive Officer Muhtar Kent said in the statement. The company also will add two directors to the board of Corona, California-based Monster.

While Coca-Cola has helped distribute Monster since 2008 and owns smaller brands such as Full Throttle and NOS, it doesn’t have its own major energy drink. Monster and Red Bull, owned by Austria’s Red Bull GmbH, have the largest share of the market worldwide, according to Morningstar Inc.

Skadden, Arps, Slate, Meagher & Flom LLP advised Coca-Cola on the deal. Barclays Plc served as Monster’s financial adviser, while Jones Day provided legal counsel.

Coca-Cola explored an acquisition of Monster in early 2012, a person familiar with the matter has said. The talks ended without a deal because Coca-Cola decided that Monster’s asking price was too high, according to the person.

Buying a minority stake is less risky, given the recent moves by U.S. regulators to investigate energy drinks’ caffeine content, Dibadj said. Coca-Cola may end up buying the rest of the business once the smoke clears, he said.

Still, it may not have benefited as much by waiting to act, he said.

“Coca-Cola should have taken this move faster,” Dibadj said.

BEVERAGE INDUSTRY CHALLENGES: Carbonated Soft Drinks: Renovations Needed

Carbonated Soft Drinks: Renovations Needed

Rachel Adams

July 24, 2014 - Blogs

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Carbonated soft drinks (CSDs) have long been a stable category—until now. Consumers are looking for a more meaningful experience, including more interesting flavors, more authenticity, more discovery and products that are not mass-produced.

The neighborhood around the old fortress brands is changing. New options with newer finishes and unique experiences are making buyers rethink their CSD occasions. It’s a similar scenario to the beer and spirits world, when microbrews and small-batch handcrafted upstarts surrounded the leaders and started gobbling up the market.

These days, the fortress brands are beginning to blend in amidst a sea of new and interesting brands. This is happening in other categories as well, including water, energy and snacks.

As we emerge from a scrimp-and-save economy that was so focused on value pricing, the pent-up desire for a better experience will stretch the value equation for many occasions. Consumers are back to treating themselves again, and are willing to splurge and explore.

The premium experience is definitely growing faster than the mainstream experience. But the store-name value brands are growing faster, too. There are more options in the CSD neighborhood that meet the market demand for every experience.

As consumers increasingly focus on the parameters of their lifestyles—with their beverage selections playing a large part of their routines—beverage manufacturers need to take note, and build CSD brands that will enhance consumers’ lives.

For a closer look at CSDs and their market, read the original article, “CSDs: Prime Real Estate. Renovations Needed," in the free SupplySide Beverage Insights Magazine: Carbonated Soft Drinks.

FUNCTIONAL FOOD DEVELOPMENTS: Formulating Functional Beverages

Formulating Functional Beverages

Rachel Adams

July 17, 2014 - Blogs

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Functional beverages inherently address two top concerns for consumers: nutrition and convenience. However, like any other food and beverage product, taste is a primary concern, and, when it comes to formulating functional beverages, maintaining the taste, texture, mouthfeel and overall quality consumers expect can be a challenge.
Determining what benefit a functional beverage will provide—and how consumers will receive it—is the first, and possibly most important, consideration when designing a functional beverage.

For example, in the energy drinks sector, companies like 5-hour Energy and Monster Energy launched women-friendly energy drinks after market research showed busy moms consume more energy drinks than other demographics. In fact, busy moms are more likely to use energy drinks than young, post-college adults and singles in their 20s and 30s.

Monster’s beverage, “Zero Ultra," features no sugar or calories, a sweeter flavor and packaging with feminine design elements. 5-hour Energy pumped up its selection with a pink lemonade offering, and contributed a portion of its sales to a breast cancer foundation. Both beverages saw immense success, prompting Monster to release another similar product with plans for a third.

Of course, pumping a beverage full of a highly-sought ingredient doesn’t automatically mean success. If the beverage is lacking on taste, texture or other sensory attributes, consumers won’t come back for more.
Achieving good taste is one of the biggest challenges to overcome when creating a functional beverage. Many nutritional ingredients tend to contribute off-flavors, which may require the use of masking agents or other ingredients or processing methods to improve taste.

And to improve texture in functional beverages, proper use of gums and starches can aid in providing desired sensory attributes when adding nutritional components.

However, creating a beverage that provides benefits consumers are seeking, and also provides quality sensory attributes and good taste is only part of the challenge. Product designers must ensure functional ingredients remain effective through the product’s shelf life.

Each functional ingredient’s efficacy should be evaluated in the finished product to ensure functionality. Sensitive ingredients can also be protected from degradation during shelf-life via encapsulation.

For a closer look at formulating functional beverages—including trending functional ingredients—download Food Product Design’s free Digital Issue, “Functional Foods & Beverages."

TEA REVOLUTION: Tea’s Healthful Appeal to Push U.S. Sales to $25 Billion in 2014

Tea’s Healthful Appeal to Push U.S. Sales to $25 Billion in 2014

Rachel Adams

June 25, 2014 - Blogs

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Growth in the tea market is projected to reach $25 billion by the end of 2014, and will depend heavily on conveying tea's healthy halo to children and their parents, according to Tea and Ready-to-Drink Tea in the U.S.: Retail and Foodservice, 5th Edition, a new report by Packaged Facts.

Leveraging tea’s healthful properties and perhaps even juxtaposing these attributes against other popular sugary kids’ beverages (i.e., sports drinks, soft drinks) could be key to winning over the parent demographic by positioning tea as a replacement for alternative beverages. This could be especially critical since consumption of sugar-sweetened beverages, particularly soft drinks, has been linked to adverse health effects in children, including increased risk of obesity.

In fact, a 2013 study showed, over a period of 1 year, one daily serving increment of a sugary beverage was associated with a 0.06 units increase in BMI in children and adults. What’s more, another recent study showed children who regularly drink sugary beverages experienced more weight gain than other kids their age, and were also more likely to drink less milk and watch more than two hours of television daily.
However, even if mom is convinced a beverage will be more healthful for her children, kids must approve as well. In fact, according to Packaged Facts’ February/March 2013 Food Shopper Insights Survey, two-thirds of grocery shoppers with children agree that their kids’ preferences influence which groceries they buy.

As we know, kids can be choosy when it comes to foods and beverages, and to achieve success, kids’ products rely more heavily on taste, visual appeal and packaging design. Even within the children’s market, preferences such as flavor vary depending on a child's age, and must be considered for successful product formulation. The same grape flavor that a 3-year-old loves might not be accepted by a teenager, as noted in Food Product Design’s FoodTech Toolbox Gallery, Formulating Healthy Kids’ Snacks.

To win over the kids, ready-to-drink tea varieties are key to leveraging convenience. For example, liquid concentrates offer the opportunity to retain convenience, yet give kids the power to control their flavors and “play" with their beverage. At present, teas aimed specifically at kids and teens are underrepresented.

HEALTH ALERT: Diet Beverages Aid Weight Loss - The real facts!

Diet Beverages Aid Weight Loss

Lynn Kuntz

May 29, 2014 - Blogs

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A new, multi-center, clinical study conducted simultaneously by researchers at the University of Colorado Anschutz Health and Wellness Center and Temple University’s Center for Obesity Research and Education, Philadelphia found that drinking diet beverages helps people lose weight. This was the first prospective, randomized clinical trial that directly examined water and diet beverages in relation to weight loss during a behavioral weight loss program. The study (“The Effects of Water and Non-Nutritive Sweetened Beverages on Weight Loss During a 12-week Weight Loss Treatment Program." J. Petersis, et al) to be published in the June issue of Obesity, the journal of The Obesity Society. Funding was provided by the American Beverage Association and the study design was peer‐reviewed and posted on clinicaltrials.gov.

The study followed two groups—one allowed to drink diet, teas and flavored waters, and another who acted as a control group that drank water only. Other than the beverage, both groups followed an identical diet and exercise program during the 12-week study. The result? Diet soda drinkers lost four lbs. more on average than the people who drank water (13 lbs. for diet-soda drinkers vs. 9 lbs. for those drinking water only.) More than half of the people in the diet beverage group—64 percent — lost at least five percent of their body weight, compared with only 43 percent of the water-only control group.

It seems like common sense that zero-calorie beverages would not increase weight, and in fact help people lose weight, leading one to believe that a study like this was not exactly groundbreaking. However, most studies compared sugar-sweetened beverages and non-caloric sweetened beverages—and logically found that consuming sugary drinks sugar added more weight to the subjects.

But in the last several years, critics of artificial sweeteners have pointed to research that finds a correlation with high-intensity sweeteners in diet beverages with increased body weight (as BMI). They claim that they can cause weight gain by stimulating the appetite and creating a heightened craving for sugar as the brain expects a sugar dose based on the taste, but does not receive the expected caloric satiation. These sweeteners also triggerinsulin release—or not—which could encourage weight gain. (Of course the same effects—if they occur—would also be expected with “natural" sweeteners such as stevia or monkfruit.) Still, as they say correlation is not causation and this study was designed to prove or disprove the theory that diet drinks encouraged weight gain.

“There’s so much misinformation about diet beverages that isn’t based on studies designed to test cause and effect, especially on the internet," said John C. Peters, PhD, co-author of the study and the chief strategy officer of the CU Anschutz Health and Wellness Center. “This research allows dieters to feel confident that low and no-calorie sweetened beverages can play an important and helpful role as part of an effective and comprehensive weight loss strategy."

Not only did the diet beverage group lose more weight than the control group, they also reported feeling significantly less hungry. In addition, testing showed they had significantly greater improvements in serum levels of total cholesterol and low-density lipoprotein (LDL) and a significant reduction in serum triglycerides.

Based on the design of this study the researchers were unable to pinpoint the mechanism for the greater weight loss in the sweetened beverage group, citing the need for further testing. The researchers concluded “These results strongly suggest that NNS beverages can be part of an effective weight loss strategy and individuals who desire to consume them should not be discouraged from doing so because of concerns that they will undermine short-term weight loss efforts."

This study cast doubt on the conclusions of several widely published studies finding negative relationships between diet soft drink consumption and health, including one presented in March at  American College of Cardiology’s 63rd Annual Scientific Session that found an association between cardiovascular problems and self-reported diet-beverage consumption in healthy postmenopausal women who drink two or more diet drinks a day. However, “We only found an association, so we can’t say that diet drinks cause these problems," Ankur Vyas, M.D., fellow, Cardiovascular Diseases, University of Iowa Hospitals and Clinics, and the lead investigator of the study said, adding that there may be other factors about people who drink more diet drinks that could explain the connection.

In this environment, including the constantly reinforced fear of artificial by natural- food activists, corporate-conspiracy theorists and marketers of alternative competitive sweeteners (Unnatural chemicals! Corporate plots! See the CNN comment section on this report for a microcosm.), the soft drink industry has seen a precipitous drop in zero-calorie soda sales, about 7% over the past year. Meanwhile the market for “flavored waters" is on the rise, including such products as Talking Rain’s Sparkling ICE, a fizzy drink made with artificial sweeteners and colors, which the company expected to reach $400 million in annual sales by the end of 2013. Or, as we like to call that type of product in our house—“diet pop" (or diet soda when we are attempting to hide our Midwestern roots).
If you’re developing products in this challenging, confusing market, a look at “Navigating the Landscape of Sweetener Formulations" a Report on the FoodTechToolbox website might be helpful before plotting your sugar-reduction strategies. But, be forewarned: It doesn’t explain the growing consumer preference for orange-colored sweetened, flavored fizzy water in a single-serve bottle vs. an orange-colored sweetened, flavored fizzy water in a can. Strictly speaking that solution falls under psychology, not food science.

HEALTH ALERT: More Americans Choose Foods Based on Healthfulness Rachel Adams

IFIC 2014 Survey: More Americans Choose Foods Based on Healthfulness

Rachel Adams

May 15, 2014 - Blogs

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The number of American consumers who consider healthfulness when purchasing their food and beverages has shown a significant uptick in the past two years, according to the IFIC Foundation’s 2014 Food and Health Survey.

American consumers’ perceptions and behaviors regarding the healthfulness of their diets and level of physical activity are among the survey’s most encouraging findings. While taste and price consistently have been the top two factors that impact consumers’ food and beverage purchases (90 percent and 73 percent respectively), healthfulness in 2014 almost entirely closed the gap with price, rising from 61 percent of consumers in 2012 to 71 percent this year, a 10 percentage-point increase.

And so, how do consumers define “healthfulness?" More than four out of five (83 percent) report that they’ve tried to eat more fruits and vegetables either within the past year or for more than a year. Seventy-nine percent say they have cut calories by drinking water or low- and no-calorie beverages. Seventy-two percent are eating more whole grains. In addition, four in five report that they are trying either to lose weight (54 percent) or maintain their weight (25 percent).

Topping the list of what respondents believe to be the most effective weight-management strategy included eating smaller portions at 26 percent, and eating smaller and more frequent meals or snacks at 23 percent.

The survey also revealed what nutrients or food components consumers are trying to limit or increase consumption of. The components and the number of respondents who are trying to get a certain amount or as much as possible of them are: fiber (53 percent), whole grains (53 percent), protein (50 percent), calcium (36 percent), omega-3 fats (21 percent), potassium (19 percent), and probiotics (18 percent).

In terms of those nutrients or components consumers are trying to limit or avoid entirely: sodium/salt (53 percent), sugars in general (50 percent), calories (48 percent), fats/oils (29 percent), caffeine (31 percent), and mono/polyunsaturated fats (26 percent).

While still a majority, significant declines were seen among respondents who believe moderate amounts of sugar can be part of an overall healthful diet (74 percent in 2014 vs. 84 percent in 2013) and those who believe people with diabetes can include some foods with sugar as part of their total diet (54 percent in 2014 vs. 71 percent in 2013). Half of consumers (51 percent) report that they are getting “pretty close to" or less than what they believe is the appropriate amount of sugars in their diets.

It appears that consumers are starting to understand the significance of functional foods, even if they don’t completely grasp the concept. Foods fortified with protein, fiber and other nutrients are considered “healthful." However, consumers are also demanding these foods contain fewer added sugars (or less sugar altogether), along with less sodium, fats and calories. It’s a tall order, no doubt.

The process of including bioactive compounds in food and beverage products is complex, as food manufacturers must examine their shelf life, stability and bioavailability before processing. Food Product Design recently discussed these obstacles in its free Digital Issue, “Functional Foods," which dives into topics like healthier energy ingredients, cereal nutrition and omega-3s, among others, to get product formulation on track not only with taste, but nutrition as well.

And luckily, innovation in sweetening ingredients is putting sugar reduction within reach. Non-nutritive, “natural" sweeteners like stevia and monk fruit can reduce added sugars and calories in food and beverages. For more information on these sweetening ingredients (and others), check out this report from the Food Product Design FoodTech Toolbox.

Sources:

• International Food Information Council: More Americans Choosing Foods, Beverages Based on Healthfulness

HEALTH ALERT: 35 Years of Data Say Yes, Low-Calorie Sweeteners Aid in Weight Loss

35 Years of Data Say Yes, Low-Calorie Sweeteners Aid in Weight Loss

Rachel Adams

May 13, 2014 - Blogs

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Sweeteners have long been a topic of confusion. Low-calorie and no-calorie sweeteners in particular have been blamed for weight gain and increased cravings. Although neither notion has been proven, researchers reviewed 35 years of sweetener data to set the record straight, or at least slightly less crooked than it was.

The study, presented at the Experimental Biology 2014 Conference in San Diego, determined using low-calorie sweeteners actually did help people lose weight. And further, consuming products containing low-calorie sweeteners did not lead to weight gain or cravings, they determined.

"The conclusions from this review support decades of research showing that the use of low-calorie sweeteners can be beneficial in weight loss, while also debunking recent hypotheses of weight gain and cravings," said Haley Stevens, Ph.D., president, Calorie Control Council. "Along with proper diet and exercise, consumption of products with low-calorie sweeteners can be part of a healthy lifestyle."

This research comes at a crucial point in the sweetener landscape. FDA’s recent proposal to include “added sugars" to the Nutrition Facts panel (not to mention the release of Katie Couric’s Fed Up documentary) have turned attention to sweeteners, especially nutritive sweeteners. (Check out this infographic for deeper insight into the proposed label change in the Food Product Design FoodTech Toolbox).

Luckily, industry has already been working hard at sugar reduction. Take, for example, product innovations like PepsiCo’s Trop50 brand—a blend of juice and water and sweetened with stevia—which has seen immense success in the United States.

And both Coca-Cola and PepsiCo launched reduced-calorie soft drinks using stevia. Coca-Cola Life—sweetened with a combination of sugar and stevia—was launched in Chile and Argentina in 2013. PepsiCo’s Pepsi Next launched in 2012 in Australia— also sweetened with sugar and stevia and boasting a 30 percent reduction in calories.

Easy peasy, right? Take some sugar out, add some no-calorie sweetener in, and voila! Product success.
Of course, it’s not actually that simple. In the Food Product Design Content Library, “Reducing Added Sugars" dives into the complexities behind sugar reduction—including FDA’s guidelines as to what warrants a “reduced-sugar" claim, what consumers are actually looking for in reduced-sugar foods and beverages and how to replace sugar’s functional benefits (in addition to its taste).

Sources:

• PR Newswire: New Research Analyzing 35 Years of Data Confirms Positive Effects of Low-Calorie Sweeteners in Weight Loss