Showing posts with label Retail sales. Show all posts
Showing posts with label Retail sales. Show all posts

Wednesday, 25 June 2014

GMO DEBATE: Should consumers be concerned about the healthfulness of the non-browning GMO Arctic Apple?


Should consumers be concerned about the healthfulness of the non-browning GMO Arctic Apple?

 | May 20, 2014 | 
Screen Shot 2014-05-18 at 12.10.47 AM

On April 23, a Twitter Party was organized under the hashtag #NoGMapple to stop the approval of the Arctic Apple. The Twitter Party was sponsored by several organic food companies and promoted by several “mommy bloggers”.
The Arctic Apple is currently under review for approval in Canada and the US. It is being made by a small company in British Columbia, Canada, called Okanagan Specialty Fruits, so it has not “suffered from Monsantonization” (a dreaded process in which our food is exposed to satanic rituals in Monsanto’s basement). The technology for the non-browning apples will be patented and owned by the company.
So, why non-browning apples? According to this article from the New York Times, 60 percent of consumers were likely to purchase the fruit (however, a separate survey found that 70 percent of Canadians did not approve of a genetically modified apple). The Arctic Apple’s website highlights the fact that a lot more people and places would use apples if they didn’t looked bruised or brown and that a lot of apples are thrown out.
When I examine my own shopping habits, I think it’s probably true. I never pick up a bruised apple. If you consider that groceries generally display their best produce, it leaves you wondering how many bruised apples were discarded from the farm to the store. A recent piece in NPR highlights that Americans throw away half their food, much of which is still edible. According to Wikipedia, apples are the third most discarded food in the UK, so it may rank high in the US as well. The company is also banking on the fact that the juice/cider from Arctic Apples is clear, so they will not need anti-browning treatment in the juice/cider production process.
Ultimately, this product is being made by a private company, so it is reasonable to assume it’s done all the research that there is a market for this product before investing millions of dollars in making a genetically modified fruit. After all, I thought the iPad was a stupid idea and now I own one….
Why apples brown
Before describing how the Arctic Apple has been genetically modified, we have to understand why apples turn brown (additional reference is here). Apples begin browning when they are injured: cells break down and release two molecules that were previously in different compartments. The joining of these two compounds in the presence of oxygen leads to the formation of a pigmented polymer. The two compounds that are joined are a) polyphenol oxidases (PPO), which are a class of enzymes, and b) phenols. So when you cut, bite or bruise an apple, you damage cells and bring these compounds into contact with one another. Some types of apples brown more quickly than others because they have more PPO. This is the same process that makes bananas brown as well.
The Arctic Apple doesn’t have as much of the PPO enzymes, because the transgene that has been added triggers a process called RNA interference (for a great video explanation, see this animation here). RNA interference is a naturally occurring defense mechanism against viruses that basically hacks up specific RNA. But scientists have been harnessing the same methodology for decades to decrease the amount of RNA for a gene. If you manage to get rid of the RNA, then the protein doesn’t get made. In the Arctic Apple, they added a DNA sequence that triggers RNA interference for all the different PPO enzymes. The RNA gets chopped up, the PPO enzyme never gets made, so the apples never brown. Apparently, the Arctic Apple manages to turn off the PPO enzyme by ~90 percent. It’s important to note that the sequence that has been added that triggers that RNA interference process is from the apple itself. It isn’t from a different species.
A few additional segments of DNA are in the Arctic Apple (outlined here). The most controversial of these is a gene conferring antibiotic resistance (to kanamyacin). When working with transgenes, these antibiotic resistant markers are needed in the early stages in the lab so that you can figure out which cells picked up the transgene and which ones didn’t.
Critics’ complaints
Critics have multiple complaints about the Arctic Apple. Here’s a list of the arguments I’ve found:
  • Scientists warn that this genetic manipulation poses health risks, as the manipulated RNA gets into our digestive systems and bloodstreams. There is no evidence that this occurs. A paper published in 2011 suggested that RNA from plants might regulate mammalian genes, but the findings of this paper have never been reproduced. Follow up studies suggest that the observations from the paper in 2011 may have been due to contamination. But for the sake of argument, I imagined the scenario where the ingestion of the manipulated RNA got into our system and actually did something. I think that the apocalypse that the article is implying is the possibility that ingesting RNA from the Arctic Apple might trigger the RNAi pathway within our bodies. However, I could not find any reference to the existence of the PPO enzyme in mammals nor does the DNA sequence from the PPO enzyme in the apple have a comparable sequence in mammals. If all we had to do was to eat the DNA/RNA of a gene to trigger RNA interference in our bodies, wouldn’t we be chugging the DNA/RNA for genes to make us skinny, lower cholesterol, regulate blood sugar, etc? Unfortunately, it doesn’t work that way.
  • By “hiding” the browning of the apple, consumers will not know how old the apple really is. The company argues that by diminishing the browning, it will make mold and bacteria even more visible. Keep in mind that a perfectly fresh apple can be bruised/browned, so browning is not a measurement of age.
  • Customers do not want this apple. Some customers may not want this apple, but this customer does! I reached out to the Arctic Apple team to find out about their labelling policy. They stated that their apples will have an “Arctic Apple” sticker. Their website also states that food that have >5% Arctic Apple will be labelled with the Arctic logo.
Arctic apple will contaminate our apple supply with it’s GM pollen. I generally go peach picking each year, but last year, I went apple picking at a fantastic farm in Belleville, Ontario with my sister and our families. They had several different varieties growing side-by-side, and we were instructed on which varieties were ripe for that particular week, so different types of apples co-exist in the same orchard and they don’t all “convert” to the same variety. This is true for many different fruit trees. Although apple pollination is generally carried out by bees and not by wind, growers of Arctic Apples will be adhering to a Stewardship Agreement which includes a requirement for a buffer zone between the Arctic Apple orchard and surrounding orchards.
The company’s website also extols the health benefits of the Arctic Apple. They claim that by suppressing the amount of PPO in the apple, you actually have more anti-oxidants available to you. However, I believe that more research is needed to determine the actual health benefits.
Most of us live in nations with free markets. As such, this product has the right to exist and, once it clears regulatory hurdles, to be sold. The usual arguments that many have against GMOs do not apply in this case: it isn’t sold by Big Ag, it will be labelled as an Arctic Apple, it doesn’t need any special herbicides/pesticides (in fact, you could use organic farming practices), and the gene is from the apple itself. Those who don’t like it, don’t have to buy it. There are plenty of other options on the shelf. I, for one, look forward to a whole market of non-browning “Arctic” fruit (I’m keeping my fingers crossed for a non-browning avocado).
Can’t wait to bake my first apple crisp with an Arctic Apple!
Layla Katiraee, contributor to the Genetic Literacy Project, holds a PhD in Molecular Genetics from the University of Toronto and is a Senior Scientist in Product Development at a biotech company in California. All opinions and views expressed are her own.

Monday, 13 January 2014

MARKET UPDATE: Stevia, soda pop and that aftertaste

Stevia, soda pop and that aftertaste

An interview with Paddy Spence, CEO of stevia beverage maker Zevia
Zevia stevia group shot-0114
Can natural sweeteners that taste good rescue diet sodas from their decline?
We all know that consumers have been cutting back on soda for years in part because of fears over weight gain. But the pullback on diet soda is a relatively newer phenomenon.

Big soda makers Coke and Pepsi blame the slowdown on people’s concerns over the safety of artificial sweeteners that are used in diet soda. The two beverage makers say they’re working on creating sodas that use natural sweeteners, but it’s difficult to create a diet soda using natural sweeteners, which can leave a bitter aftertaste.
Zevia, a small Los Angeles-based company whose products are sold in Canada, already makes zero-calorie sodas sweetened primarily with stevia, which is derived from a South American plant.
Zevia, which was founded in 2007, says it’s now distributed in 42 per cent of conventional supermarkets like Kroger and Safeway and Loblaws, as well as specialty chains such as Whole Foods. The privately held company would not say if it’s yet profitable.
We spoke to Zevia CEO Paddy Spence about the soda industry:
Coca-Cola is testing a drink called Coca-Cola Life that’s sweetened with a mix of stevia and sugar in Argentina. How would that impact Zevia if it came here?
I think it’s great in terms of validating stevia as a sweetener. But what they appear to be aiming at is a mid-calorie solution. When you think about it from a consumer standpoint, who are you attracting with that? The zero-calorie person wants no part of something that’s 60 or 80 calories. The full-sugar person may gravitate toward that, but you’re really just cannibalizing your sales.
Part of the reason they’re doing a mid-calorie version is the strong aftertaste of stevia–the sugar offsets that. Isn’t taste an issue for Zevia?
Absolutely. It’s just like when I was a kid and I tried Tab for the first time and I said, “This is not Classic Coke.” I think that’s true with any zero-calorie product. In a blind taste test, no one is going to prefer Diet Coke over Classic Coke. A zero-calorie product by its nature is going to have a different taste. But what we’ve been trying to do is narrow the gap. And I think with the new iteration on the sweetener system, we’ve really cracked the code.
You recently started using some monk fruit as well as stevia in Zevia. How many times have you tweaked the sweetener formula?
A: It’s been several. Our flavourists are getting more experienced in understanding how to use stevia–what flavour notes work well, which don’t. There’s a lot of art as well as science.
One concern in the industry is that people are cutting back on soda, even if they’re not quitting it altogether. Are there people who drink several cans of Zevia a day?
Our customers don’t perceive a consumption ceiling. It’s a guilt-free option. It’s very easy for people to consume a lot of our product. Our heavy users account for a huge portion of our sales. The top third of our consumers are spending over $200 a year on Zevia.
How many cans a day does that translate to?
If you were to buy it at the most expensive retail price, that would be on average a can every other day. But that’s for the top third of our consumers.
People have so many different beverage choices now–sparking and flavoured waters, etc. Is there even a demand at this point for a naturally sweetened diet soda?
Tap water has been a dominant beverage for hundreds of years. From a health perspective it’s the ultimate solution. Yet people crave sweet drinks. That’s just the bottom line. I don’t see Americans or global consumers getting away from soda quite frankly.
What’s the difference between a soda and a flavoured, sparkling water that’s sweetened?
The dirty secret is that there is no difference. There’s going to come a time when the consumer is going to wake up and realize that
      Check out my new e-book entitled: "Social Media Marketing in Agri-Foods: Endless Profit and Painless Gain"




The book is available on Amazon and Kindle for $4.99 USD. Visit amazon/Kindle to order now:
http://www.amazon.ca/Social-Media-Marketing-Agri-Foods-ebook/dp/B00C42OB3E/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1364756966&sr=1-1

Thanks for taking the time

Wednesday, 18 December 2013

SALES & MARKETING: PRIVATE LABEL, NATIONAL BRANDS HAVE OPPORTUNITY FOR GROWTH


        PRIVATE LABEL, NATIONAL BRANDS HAVE OPPORTUNITY FOR GROWTH



      “While some industry experts believe private label has ‘had its day,’ IRI believes that private label and national brand marketers can enjoy mutual growth by not simply co-existing, but rather evolving and working together to serve the full spectrum of consumers’ needs and wants," Susan Viamari, editor of Times & Trends, IRI said. “Of course, consumers are shopping conservatively and looking for money-saving options, so they have embraced private label. However, national brands remain critical. In this environment, manufacturers and retailers must work together to provide a balanced assortment of national and private label solutions, targeted at the store level, to offer the best overarching value."
      The grocery channel has seen the highest private label share at 21.9% of unit sales and 18.2% of dollar sales. In addition, the grocery private label landscape demonstrated the highest infiltration at 96.9%.
      Private label share of volume increased across five of the 10 largest private label categories during the past three years. These categories are viewed as “staple" categories, since consumers tend to see little differentiation between private label and national brand options in these categories. Combined, share victories brought more than $2.6 billion to private label marketers’ top lines during the past year alone.

      National brands are also demonstrating strength in important private label categories. During the same period, national brand marketers gained ground in the remaining top five private label categories, increasing the revenue they generate in these categories by a combined total of more than $1.7 billion across IRI’s multi-outlet geography. The biggest win for national brands is in the vitamins category, where volume share climbed 6.9 points since 2010.

      In the coming months and years, consumers will continue to look to both national brands and private label solutions to find the best value for their money.

      “Private label is clearly here to stay," Viamari said.  “For private label to prosper, it is critical for private label marketers to understand the role of their brands in relation to competing national brands. And, national and private brand marketers must step up their collaborative focus, directing their efforts to retailer/manufacturer partners that ‘best fit’ their strategic goals and objectives. This type of strategic collaborative marketing partnership will increase sales and strengthen customer loyalty by getting the right products to the right place at the right time, with a targeted value proposition."

      Sources:


        Check out my new e-book entitled: "Social Media Marketing in Agri-Foods: Endless Profit and Painless Gain"
             







The book is available on Amazon and Kindle for $4.99 USD. Visit amazon/Kindle to order now:
http://www.amazon.ca/Social-Media-Marketing-Agri-Foods-ebook/dp/B00C42OB3E/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1364756966&sr=1-1

Thanks for taking the time

Sunday, 29 September 2013

NORTH AMERICAN RETAIL VISITS FOR LUNCH INCREASE 29%

RETAIL VISITS FOR LUNCH INCREASE 29%

CHICAGO—Visits to retail stores for prepared foods at lunch increased 29% since 2008, while restaurant lunch visits have declined, according to research from the NPD Group.


The foodservice market research report, The Retail Prepared Foods Market: Assessing the Competition, says consumers prefer retail stores, compared to restaurants and quick service restaurants (QSRs), for healthy options, a good variety of foods, light meal offerings, affordability and one-stop shopping convenience. These attributes are key drivers for the 29% visit growth for retail prepared foods at lunch. High unemployment and shaky consumer confidence are among the reasons lunch visits to restaurants have declined by 1% since 2008.

The growth in the retail prepared foods market is part of the broader trend on the part of Americans to consume more meals in home. A recent NPD forecast through 2022 finds that the instances of prepared food purchased at retailers for at-home consumption will increase by 10% over the next decade compared to a 4% increase forecast for restaurant traffic. The component of the retail prepared food market that is supporting growth is the portion that is purchased and eaten at home or at work for lunch and dinner.

Sources:


Check out my latest e-book entitled: "Social Media Marketing in Agri-Foods: Endless Profit and Painless Gain"





The book is available on Amazon and Kindle for $4.99 USD. Visit amazon/Kindle to order now:
http://www.amazon.ca/Social-Media-Marketing-Agri-Foods-ebook/dp/B00C42OB3E/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1364756966&sr=1-1

Thanks for taking the time

Sunday, 4 August 2013

MAJOR CHANGES IN AMERICAN GROCERY RETAILING

MAJOR CHANGES IN GROCERY RETAILING

0 Comments
ROCKVILLE, Md.—Grocery retailing is experiencing some of the biggest changes in supermarket history, according to a new report from Packaged Facts.


The report, "The Future of Food Retailing: Shopper Insights and Market Opportunities," highlights that the greatest competition to supermarkets and grocery stores is from supersized stores like supercenters and warehouse clubs, however other retail channels like drugstores, dollar stores, limited assortment chains and online grocery shopping also pose a great threat. While supermarkets still play a major role in food shopping, the role is now shared with stores like Whole Foods, Trader Joe's which was recently named America's favorite grocery store, Wal-Mart, club stores and dollar stores on the value front, and farmers markets and food trucks in trend-setting. Also, 2012 and 2013 have seen more mergers and acquisitions in the retail food industry as buyers and private investors seek a way to expand their business to additional markets

Recent research has shown that consumers are not necessarily spending less, despite this popular notion, but rather they are spending smartly due to the economy and rising gas prices, food prices, healthcare costs and payroll taxes. Today, most consumers approach grocery shopping with preparation, with 85% of shoppers reporting that they do some type of planning beforehand, according to Packaged Facts Food Shopper Insights survey data. Moreover, only 37% of grocery shoppers cited often stopping by the grocery store on the spur of the moment. This is largely due to shoppers trying to save money. Two out of three grocery shopper agree with the statement "I buy a lot of groceries that are on sale or promotion," 47% used coupons or coupon codes during their most recent grocery shopping trip, 42% checked store circulars, 31% used store savings clubs/loyalty cards and 11% used coupon matching services.

Further, data showed 83% of shoppers cited being satisfied with the store(s) where they usually shop for groceries, 56% enjoy grocery shopping and 18% actively dislike grocery shopping. This suggests that retailers have room to improve in making grocery shopping easier, less burdensome and enjoyable for a significant amount of their customers.

"Economic, demographic, lifestyle and technological changes have created not only a fertile environment but the absolute necessity for new concepts to engage shoppers, capture share of stomach and re-invent food and beverage retailing," said David Sprinkle, research director for Packaged facts.

Sources:

Check out my latest e-book entitled: "Social Media Marketing in Agri-Foods: Endless Profit and Painless Gain"



The book is available on Amazon and Kindle for $4.99 USD. Visit amazon/Kindle to order now:
http://www.amazon.ca/Social-Media-Marketing-Agri-Foods-ebook/dp/B00C42OB3E/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1364756966&sr=1-1

Thanks for taking the time!