Five Observations at Natural Products Expo West 2023 for Dairy Foods Manufacturers and Marketers

 

“It’s like a family reunion.” That’s how my colleague Monica Watrous with Food Business News described the vibe at this year’s Natural Products Expo West taking place in Anaheim, California, until tomorrow, Saturday, March 11, 2023. I agree. And it’s a family reunion where we are all on the same page in terms of formulating food for the better good of people and the planet. (OK, there’s a few outliers. They are in every family!)

Nestlé USA sponsored an educational session on Thursday titled “Eat Like Your Life Depends On It, Because It Does.” Registered Dietitian Elizabeth Ward addressed the nutritional needs through various life stages and emphasized that “as quality of diet declines, obesity increases.” With those in the 2- to 18-year range, “it is clearly a public health concern as these [trends in poor diet] tend to track into adulthood.”

She emphasized, “They don’t get enough dairy.” OPPORTUNITY CALLING!

VISIT INGREDION AT BOOTH 971 at EXPO WEST

“Teens are not equipped to think about their health in the long term. ‘We’ need to do it for them and give them the nutrients to help them out,” she said. OPPORTUNITY CALLING!

Registered Dietitian Jim White, said, “Sustainability is a high priority for younger consumers. And, ‘health is their wealth.’”  OPPORTUNITY CALLING!

Ward added that older adults (over 65 years of age), “They want you to take their money. They are very hungry for your innovation. Older adults need more protein.” OPPORTUNITY CALLING!

Doctors are recommending “food as medicine,” more than ever before, according to White. This, of course, is music to ears of registered dietitians who have long been encouraging their patients to change their eating habits rather than popping another pill. OPPORTUNITY CALLING!

“We need more products with fewer ingredients,” said White. “We need these food to be as close to ‘whole’ foods as possible.” OPPORTUNITY CALLING!

 

Doug Munk, senior director of innovation strategy at Nestlé USA, “Consumers are more mindful about what they eat and drink than ever before, be it seeking options that support their dietary needs, provide comfort, offer convenience or are made in a responsible and sustainable way.

With that said, here are my five key take-aways from this year’s Expo. 

1. The world does not need another plant-based cream cheese. I said this about high-protein, no-sugar ice cream about seven years ago when Halo Top first debuted. I was correct. I said this about plant-based chicken nuggets a year ago. I was correct. Repeat after me, “If my company is working on a plant-based cream cheese, we will table it and move on.” 

Why? Plant-based cream cheese is one of these easiest plant-based dairy products to produce. Dairy-based cream cheeses are a matrix of fat and gums. It’s pretty easy to swap that milkfat for a highly saturated vegetable-based fat and add all the other stuff. Protein is really not part of the recipe. If a plant-based cream cheese does not taste good, you have a bad R&D team, because it’s not that hard to do. That’s why there are way too many debuting at Expo West. And guess what? It’s highly unlikely that the American population is going to start eating more cream cheese if more brands roll out. (But there is some dairy excitement in this space that you will need to wait until next week when the product is featured as a Daily Dose of Dairy.) Again, please, repeat after me, “no more plant-based cream cheese innovation.”

2. Clean ingredients are paramount, along with simple ingredient statements. That’s what White said. And I agree. Consumers want to know what is in the products they are buying. While many exhibitors touted formulation highlights of their innovations, such as keto, paleo, low-to-no added sugars, plant-based and nutrient dense, if the ingredient statement is not clean, you have no chance of making it. Sorry to say. That’s because others are prioritizing clean label. And it makes a difference to consumers. 

Be mindful of allergens, added sugars and over processing. Today’s consumers know that eating clean is what keeps them feeling their best. Remember, “Health is the new wealth.”

3. Mission matters to today’s shoppers. Consumers are looking for a brand with a story that matters. Many are seeking out certifications, such as humanely raised, grass fed, USDA certified organic, etc. They are choosing brands for their sustainability investments and upcycling efforts. In fact, the number-one message from brands communicated at this year’s Expo West was how they support both people and the planet.

4. Optimal health…again, health is wealth, has become a personal formula for many consumers. It’s what works to keep their mental and physical health in check. Dietary supplements are making a comeback as many consumers are not getting what they want out of everyday foods. OPPORTUNITY CALLING!

Functional foods are booming, as these products fill in nutrient gaps. Many address digestive health, energy and cognitive support. These are the three biggest selling points of products at this year’s Expo. It’s all about foods that fuel to help one stay active, fend off stress and get a good night’s sleep. 

5. Dairy is rocking at this year’s Expo. Over the next few weeks, I will feature the new products that debuted at the show as a Daily Dose of Dairy. Some of the products showcased in today’s blog are line extensions and new flavors, such as Lifeway’s Guava Kefir. Others represent the messaging being communicated by dairy marketers at Expo. A number of these products have gone through packaging redesigns to better communicate their mission. They are providing full transparency about the power of their farming and their product. 

Organic Valley, for example, used Expo to launch new packaging with a bright, modern design that focuses on communicating its brand story and point of differentiation: Ethically sourced products from small family farms and the cooperative’s definition of what that means to consumers across the country. The new Organic Valley product packaging will roll out across the product portfolio in 2023 and continue into 2024. 

“As a farmer-owned cooperative founded in 1988, we believe it’s essential to evolve with our consumers, and that includes the product packaging and marketing we do to build and support a market for small organic family farms,” said Jaclyn Cardin, chief brand officer at Organic Valley. “Our new product packaging was specifically designed around the core values that make us unique and resonate with consumers. More importantly, people should know that every product purchase makes a huge difference in supporting and saving small family farms.” 

Organic Valley partnered with award-winning, Boulder-based, branding agency, Moxie Sozo, to create the new packaging. The design concept, affectionately called, “Nowstalgia,” features modern illustrations that connect an idealized past with the clean, contemporary present, and focuses on attributes that are important to both the brand and consumers. The logo has also been revised to fit the new designs, and many products will feature a QR code that shows consumers the positive impact from their purchase. The new design also showcases the key values this farmer-owned cooperative has always believed, like pasture-raised dairy and never using antibiotics, synthetic hormones, toxic pesticides or GMOs on their farms.

 “Organic Valley challenged us to develop a new packaging design and system that combines consumer trends with the brand’s unique mission to save, serve and safeguard small organic family farms,” said Derek Springston, chief creative officer at Moxie Sozo. “Keeping those priorities in mind and knowing 73% of consumers enjoy things that remind them of their past, we were excited that the final ‘Nowstalgia’ design really brought everything together. It captures the wholesomeness that comes from simpler times alongside the mindfulness and excitement of today. Who wouldn’t want the best of the past and the present?” 

Hope to see you at Expo, if I have not already. Great to visit with Carmine, Deb, Ivan, Janelle, Michelle and more! Maybe join me for yoga on Saturday morning, weather permitting? I was proudly first in line on Thursday’s sunrise yoga. Cheers!

                       VISIT INGREDION AT BOOTH 971 at EXPO WEST

Making Dairy Relevant to those that Strayed from the Category

 

On these days leading up to Natural Products Expo West in Anaheim, Calif., and SXSW in Austin, Texas, I encourage dairy foods marketers to take a step back and look at what the rule-breaking, norm-defying exhibitors at these shows are doing to attract consumers. For starters, they are focusing in on Gen Z. 

Gen Z is poised to change the face of food, according to new research from The Center for Food Integrity (CFI). CFI conducted digital ethnography, quantitative research and immersive Gen Z experiences, for a 360-degree look at this unique segment and how to engage to earn trust.

“The findings equip the food industry with insights to engage Gen Z consumers, Gen Z farmers and ranchers and the Gen Z workforce,” says Roxi Beck, consumer engagement director at CFI, who led the Gen Z initiative. “The guide details engagement strategies agriculture organizations can use to attract and retain young members and future leaders. Additionally, it details how food companies, restaurants, retailers, agribusinesses and others involved in the business of food can attract and integrate this up-and-coming generation into today’s multigenerational workforce.” 

Born between the mid-to-late 1990s and the early 2010s, this emerging consumer segment has a distinct set of values, behaviors, fears and preferences, along with growing purchasing power. Accounting for 20.7% of U.S. consumers and nearly one-third of the global population, Gen Z’s economic power is the fastest growing across all generations and their income is predicted to increase five-fold to $33 trillion by 2030 and surpass Millennials’ incomes by 2031.

Gen Z is the most racially and ethnically diverse generation, too. According to Pew Research, Gen Z represents the leading edge of the country’s changing racial and ethnic makeup, with 52% non-Hispanic White, 25% Hispanic, 14% Black, 6% Asian and 5% a different race or two or more races. The U.S. Census Bureau projects that by 2026, the majority of this generation will be non-White. (I wish the projections were the same for executives in dairy. Come on folks, let’s bring some color to next year’s Dairy Forum.)

Here are some recent innovations that speak to what matters to Gen Z. 

Cheddies cheese-based snack crackers are made from 100% fresh cheddar cheese. They are made with only seven ingredients and provide 6 grams of protein per serving. Unlike most cheese crackers on the market that use processed cheese powders, Cheddies uses its own proprietary cheddar cheese recipe, sourced fresh from regenerative farms. The result is a crunchy, savory cracker that satisfies all your cheesiest cravings.

Cheddies was founded by Texas-based brothers Francisco and Tomas Pergola who were looking for a healthy but delicious alternative to the highly processed cheese-based snacks they grew up eating. While still in college, they started their work to create a sustainably sourced cheese cracker with the savory flavor and crunch they loved, while also being kind to the planet. They knew making the best cheese cracker meant starting with the best cheese, so they partnered with Alexandre family farms-- one of the only regenerative dairy farms in the U.S.--to create the proprietary recipe that gives Cheddies its uniquely cheesy taste. 

“We’re on a mission to put real, fresh cheese back in cheese snacks,” said Cheddies’ CEO, Francisco Pergola. “That’s why we only use whole block, all-natural regenerative cheddar to make our delicious, better-for-you crackers. We believe Cheddies is the perfect cracker for the next generation of snackers looking for tasty, sustainable, healthy snacks which also put flavor first.” 

Here’s another. Alec’s Ice Cream is a category-disrupting ice cream brand with its regenerative-verified and USDA organic-certified products made from 100% A2 dairy. The brand also received this week the prestigious win from New Hope’s NEXTY Awards for “Best New Dessert” category and is a finalist in the “Best New Organic or Regenerative Certified Product” category. Check them out at Expo West.

This month the brand also gained noteworthy distribution and is now available nationwide at all 392 Sprouts Farmers Market locations and 166 Natural Grocers locations across the country. 

Founded in 2020 by Alec Jaffe, Alec’s Ice Cream is on a mission to create a better food system by going beyond organic to help reverse climate change. Through the universally loved treat, ice cream, Alec’s educates and inspires consumers—mainly Gen Z--to seek out high-quality foods that taste better, are better for the environment, support value-driven producers, and are better for you. 

The brand’s newest flavor is Peanut Butter Fudge Honeycomb. It was inspired by Jaffe’s favorite childhood candy bar, the Butterfinger. The new flavor features a peanut butter base, ribbons of fudge and chocolate-covered honeycomb toffee pieces. The goal of this flavor launch is to tap into a playful, nostalgic and beloved flavor to hook consumers onto the brand’s greater environmental mission. 

Jaffe cites a recent study that found customers are four-times more likely to purchase products from purpose-driven brands, proving that customers are looking for community and a shared “power of good” that purpose-driven brands provide. To read highlights from the study, link HERE. 

“I think there is a really meaningful shift taking place in how consumers think about and shop for their favorite foods,” says Jaffe. “More and more, we see people looking to support brands that are taking actionable steps toward a more sustainable future. At Alec’s, we are dedicated to providing consumers with the most delicious ice cream while upholding our core commitment to protecting and restoring the environment and using our product as an entryway to educating the consumer on the importance of sustainability.”

Gen Z is listening and speaking with their dollar. Gen Z thinks very differently about the products they buy, including food and beverages. 

As a parent of two Gen Z males, I can confirm they shop and eat differently. They would rather spend a few extra dollars—of their own money—for Chipotle, which they recognize as being fresh, authentic and planet friendly, then a fast-food burger or heaven forbid, Chick-fil-A. They prefer Raising Cane’s Chicken Fingers. 

“They are driven by social causes, including environmental and social justice issues. This means they support brands that align with their values,” says Beck. “They value technology used to produce food, and view food as a form of self-expression and identity.”

This generation also likes immersive experiences. To that end, as part of the research project, CFI brought together Gen Z food online influencers and Gen Z farmer online influencers for a two-day tour around San Antonio, Texas, that explored beef production and nutrition. They explored the many questions regarding beef sustainability. The tour gave influencers access to experts including a cattle rancher, veterinarian, dietitian and chef. No question was left unanswered. A smaller-scale tour was also conducted in eastern Iowa.

“The participants experienced things most people simply don’t have access to, a backstage pass of sorts. Throughout the experience, we saw many ‘aha’ moments from the consumer and farmer participants,” says Beck. “We’ve conducted several influencer tours over the years. They are an incredible way to show full transparency, have authentic conversations, and truly build relationships, all important elements in earning trust.”

“In addition to the direct impact on participants, each influencer’s online content--blogs, photos and videos--were shared with more than one million loyal followers,” said Beck, “amplifying the many positive things happening on farms and in food production today.”

Tour videos featured on CFI’s BestFoodFacts.org (link HERE) consumer site featured comments including:

“I had no idea that there was this much technology. When I envisioned a farm, it wasn’t this. I think it’s extremely important to continue innovating.”

“We’ve been fed over and over again to be scared of the way our food is farmed and raised, and I just don’t think that I believe that anymore. I have a much more well-rounded idea of what farming is and have a lot more trust in the food system and in farming.”  

When it comes to specific eating habits, CFI’s Illuminate digital ethnography research revealed distinct trends including: 

• Building a Better Relationship with Food: They believe intuitive and mindful eating will help them build a healthier relationship with food that is free of stress and guilt.
• Balanced Nutrition: They try to optimize nutrition by developing a habit of eating a wide variety of foods, especially plant-based, rather than restricting their diet.
• Sustainable Diets: They want to do what they can to reduce their carbon footprint by minimizing meat consumption and buying local ingredients.

CFI’s research regarding why consumers accept or reject technology in agriculture and food showed that when communicating about technology, like gene editing, primary messages should include key drivers of trust, including: food safety, sustainability, perceived benefits, naturalness of the technology and making information readily available and easy to understand.   

The research culminated in a communications guide, “Engaging Gen Z: The Consumer, The Farmer/Rancher, The Workforce,” that details CFI research and other Gen Z findings, along with specific strategies to engage each audience. You can download the guide HERE.

“Gen Z consumers are hiring food to do different jobs for them than previous generations. They are looking to food not only for sustenance. They want it to positively impact long-term health for the body and the mind, they want it to be produced sustainably for the future of our planet,” says Beck. “Be forthcoming with the role of technology in food production and how it directly relates to consumer goals. They see innovation as critical to solving global challenges. Sharing examples of your efforts and progress demonstrates your commitment to sustainability.”

For agriculture organizations looking to recruit and retain Gen Z farmers and ranchers, provide opportunities early and often so they are connected and understand that they can have an impact. Offer development and training opportunities to empower engagement outside of agriculture. And make sure other generations take into consideration the new perspective Gen Z brings that can help the industry advance.

When engaging the Gen Z workforce, showcase your company values, get them involved in initiatives that support company culture and community engagement, and demonstrate that you’re committed to taking steps to impact change.

“Because they want to speak up and be heard, give them a voice in the workplace,” says Beck. “It gives them a sense of belonging, which research shows improves longevity.”

Hope to see you in Anaheim!

It’s Time to Let “Milk” Go and Turn the Conversation to “Milk Proteins”

 

Photo: In Good Hands Foods has developed Protein Puffs in Nacho Cheese and White Cheddar flavors. Made with Real California Milk, and sporting the seal, one serving delivers 12 grams of milk protein and only 1 gram of sugar, which is flagged on the front label of the 1.1-ounce bags.

This past Wednesday, February 22, FDA issued guidance on plant-based beverages. Its intent is to “guide” manufacturers of plant-based beverages to disclose their nutrient inferiority compared to cows’ milk and acknowledges the public health concern of nutritional confusion over such beverages. 

This guidance is the first draft. It is followed with a 60-day comment period. Remember, it is guidance. Frankly, I think it’s time for the dairy industry to let “milk” go and turn the conversation to “milk proteins.” It’s not your daddy’s dairy anymore. 

I also know many of you disagree. Let’s agree to disagree. 

“Today’s draft guidance was developed to help address the significant increase in plant-based milk alternative products that we have seen become available in the marketplace over the past decade,” said FDA Commissioner Robert M. Califf. “The draft recommendations issued today should lead to providing consumers with clear labeling to give them the information they need to make informed nutrition and purchasing decisions on the products they buy for themselves and their families.” 

Many dairy industry folks do not think FDA’s draft guidance is enough. 

Here’s what Jim Mulhern, president and CEO, National Milk Producers Federation, said in a statement.

“Today’s FDA announcement is a step toward labeling integrity for consumers of dairy products, even as it falls short of ending the decades-old problem of misleading plant-based labeling using dairy terminology. By acknowledging both the utter lack of nutritional standards prevalent in plant-based beverages and the confusion over nutritional value that’s prevailed in the marketplace because of the unlawful use of dairy terms, FDA’s proposed guidance today will provide greater transparency that’s sorely needed for consumers to make informed choices. 

“Still, the decision to permit such beverages to continue inappropriately using dairy terminology violates FDA’s own standards of identity, which clearly define dairy terms as animal-based products. We reject the agency’s circular logic that FDA’s past labeling enforcement inaction now justifies labeling such beverages as ‘milk’ by designating a common and usual name. Past inaction is poor precedent to justify present and future inaction,” said Mulhern.

The American Dairy Coalition (ADC), in a press release on Thursday, wrote “It has been a long five-year wait since former FDA commissioner Scott Gottleib said ‘almonds don’t lactate’ in 2018 when FDA called for public comments about their (lack of) enforcement of milk standards of identity in the labeling of fake milk alternatives.”

Agree, almonds don’t lactate. But I can remember as a little girl my mom purchasing coconut cream and coconut milk to make punch. Then there’s also milk of magnesia. 

The ADC said that any plant-based milk alternative product that chooses to make the nutrition comparison statement---again, remember, it is voluntary—will make that comparison against the USDA Food and Nutrition Service (FNS) fluid milk substitutes nutrient criteria, not with cows’ milk. USDA’s FNS sets specific levels of calcium, protein, vitamins A and D, magnesium, phosphorus, potassium, riboflavin and vitamin B-12 for milk substitutes in federal feeding programs.

Now, here’s something to take note of. At the same time the draft guidance was issued to plant-based milk marketers, FDA also released a “Consumer Update” in efforts to educate consumers on how to interpret nutrient labels, stating: “The milk section of the dairy case isn’t what it used to be. Along with milk, there’s a growing variety of plant-based milk alternatives. While many plant-based milk alternatives have the word ‘milk’ in their name, the nutritional content can vary between the products, and many of them don’t have the same amount of calcium and vitamin D, or other nutrients as milk. So, what should you look for when choosing plant-based milk alternatives? The Nutrition Facts label on the packaging can help you choose the best products to meet your nutrient needs and those of your family. to make their own choices when buying plant-based milk.”

The onus is on dairy marketers. You need to do a better job of using labels to educate consumers. 

Now things get fun…Mainstream media varied in their reporting of FDA’s activity. The Washington Post likely ruffled a number of you up with this Thursday headline: “Sorry, Big Dairy. Oat and almond drinks can also be sold as milk, FDA says.” 

CNN wrote “Any plant-based milk product with the word ‘milk’ in its name should include a statement explaining how the product compares with dairy milk. “In the future, the label on alt-milks could state ‘contains lower amounts of vitamin D and calcium than milk’ or ‘contains less protein than milk.’ 

Here’s where it gets really good. 

“The guidance ‘assumes that cow milk is the superior standard. Might human milk not be a better standard?’ inquired nutrition researcher Dr. Walter Willett, a professor of epidemiology and nutrition at Harvard T.H. Chan School of Public Health and professor of medicine at Harvard Medical School,” as reported by CNN. “The requirement for the same protein content as in cow milk is dubious, as protein intake has not been recognized as a critical issue for children. If anything, the amount in human milk would be a reasonable standard.” 

To read more…and it is an informative read, link HERE. 

Brody Stapel, president, Edge Dairy Farmer Cooperative, said, “Accurate labeling of imitation dairy products, especially milk, has frustrated dairy farmers for far too long. The nutritional benefits of dairy products are superior to imitation products, and consumers should be well-informed using proper labeling and terms. Dairy foods, including milk, are part of a healthy eating pattern and provide consumers with healthy and nutritious food options.” 

This is very true. But, like I said, many of you think it’s not enough. 

I appreciate ADC’s comment that USDA’s FNS nutrient minimums for milk substitutes does not take into account bioavailability of nutrients. I would like to point out that it also does not factor in protein quality. To read more about how dairy’s superior proteins and how we need to better market them, link HERE.

Photo source: Top Protein

Another person frustrated with the labeling of milk, specifically milk proteins not getting the respect they deserve, is Chip Marsland, CEO, Top Protein, Orlando.

“Move over plant based, cell culture and fungi, here come the first ‘dairy-based’ alternative meats,” he said.

In a phone interview this week, he said that the dairy industry has been fueling “life for centuries.” But, it has also been void of any new technology since the patent issued in 1912 for ultra-high-temperature pasteurization. He plans to change that with his intellectual property that turns milk into filamentous materials that can be formed into structures that look like burgers, hot dogs, chicken and even scallops. With the assistance of natural flavors and a few other ingredients, he said these products replicate the taste and texture of muscle meat. 

“Here comes the new field of ‘dairy-based meat,’” he said. “[These are] meats made from all-natural milk. One of the most nutritious materials on earth in addition to being ubiquitous. And it’s a food source everyone is familiar with.”

Top Protein is a startup protein technology company that has been stealthily developing this new category of alternative dairy-meats for four years. Top Protein’s dairy-based meat portfolio includes whole cuts and shredded red and white meats. There are burgers, chicken cutlets, hot dogs, pulled pork, brisket, scallops and fish filets. There is even filet mignon. They are all made from milk. When necessary, butter is added as a fat source to provide desirable succulence. 

“With a world population seemingly outpacing the available meat supply, Top Protein sees the need

for real cost-effective solutions, not theoretical possibilities, and certainly not untested science

projects,” Marsland said. “That is why the company believes dairy-based meats are the ‘bridge to the future.’”

The company is currently building a manufacturing facility in Orlando to service local restaurants and ghost kitchens, with the latter being popular among tourists through delivery services. Plans are to have a Top Protein restaurant, too. A retail format of the product is also in the works. 

“With protein quality scores that blow away real meat, never mind the alternative meat competition,” he said. “[We also have] a manufacturing process that produces no waste.”

Source: Top Protein

The liquid waste stream from producing the “dairy-based meat” contains residual protein, vitamins and minerals. Think of the stream produced during cheese manufacturing. Top Protein’s research and development team uses that stream to produce ice cream and energy drinks. 

I leave you with this. Marsland said that the technology makes one pound of “meat” from one gallon of milk. To put this in perspective, one beef cow yields about 450 pounds of meat, according to Marsland. One milking cow produces about 3,000 gallons of milk per year, which can be turned into 3,000 pounds of “meat.” This can happen for a few years. 

Just something to think about.  

Prioritize Making Dairy Foods More Healthy in 2023

 

The dairy and dairy alternative segment is unique in that you will find consumers buying a combination of both products throughout different categories, according to research from today’s blog sponsor: Synergy. Link HERE or on the banner ad to read Synergy’s five trends for 2023 in the dairy/alt dairy sector. 

I would like to focus on one of the trends. That’s sugar reduction and it should be a priority for all dairy foods innovators if they want their products to be recognized as “healthy.” 

The FDA’s proposed framework for the updated definition of “healthy” focuses on ensuring that nutrient-dense foods that help consumers to build a diet consistent with current dietary recommendations can qualify to bear the claim. Use of the word “healthy” in food marketing is voluntary. (Read more about making nutrient density a priority in 2023 HERE.)

To meet the proposed definition, a food product would need to contain a certain amount of food from at least one of the food groups or subgroups (e.g., fruit, vegetables, grains, dairy and protein foods) recommended by the 2020-2025 Dietary Guidelines for Americans. The specific limits for added sugars, saturated fat and sodium would be based on a percentage of the Daily Value for these nutrients. DVs are reference amounts of nutrients to consume or not to exceed each day. The proposed criteria for how much food from a particular food group is required (called food group equivalents) and the specific limits for the three nutrients vary for individual food products, mixed products (which contain more than one food group), main dishes and meals, and are based on a Reference Amount Customarily Consumed, which is the basis for determining a serving size. 

FDA uses Greek yogurt as an example. Click on the infographic sourced from FDA for more details.  

To read more about the proposed definition, link HERE.

The good news is that over the past 20 years, which is about the time sugar became evil, the food industry has been able to stealthily get many consumers to prefer a less sweet taste. According to research from HealthFocus International, when decreasing sugar in the diets, more consumers prefer to reduce rather than replace with non-sugar alternatives or other flavors. Shoppers prefer less-sweet products over those that use non-sugar sweeteners or other substitutes. 

That should help with decreasing added sugars in sweet dairy foods, especially “The 4 Best Dairy Foods to Eat Every Week, According to a Dietitian.” This article recently appeared EatingWell.com, which reaches an audience of more than 10 million monthly viewers as well as more than 5 million fans through its social media channels. You can link to the article HERE.

Registered Dietitian Isabel Vasquez’s summary states:  Despite many consumers turning to non-dairy alternatives, dairy products have a lot of nutritional benefits. With a variety of dairy options out there, including ones suitable for lactose intolerance, you can probably find something that works for you regardless of your dietary needs or taste preferences. It is especially worth adding dairy to your weekly intake for its highly bioavailable calcium, a nutrient important for bone health and the prevention of osteoporosis.

It’s a great time to be in dairy! But here’s some disappointing news.

According to FDA, about 15% of products qualify for the current definition of “healthy,” and less than 5% actually bear the claim. The agency further estimates that after the proposed improvements to the claim are implemented, only 4% of foods in the grocery store might carry the claim. 

Formulate your products to be “healthy” claim worthy!

Prioritize the Nutrient Density of Dairy Foods: Pack in the Protein

 

Mark your calendars and register HERE to attend Dairy Processing’s live webinar and discussion on dairy processors’ outlook for new product innovation in 2023 and beyond. Cypress Research surveyed dairy processing professionals in mid-2022 and respondents shared their input on prioritization of new product development, both pre- and post-pandemic; ingredient priorities during the next 12 months; and new product development initiatives for the coming year, and more. I will assist with discussing findings from this survey—as well as showcase recent innovations that speak to the trends--during a free webinar on Feb. 8, 2023. Nutrient density will be part of the discussion. Link HERE to register. 

Before we discuss nutrient density, I am sharing a quote from my friend Julie Smolyansky, CEO of Lifeway Foods, that she provided in an interview to DairyReporter.com (Jan. 25, 2023).

“While we did hit some challenges several years ago around the anti-dairy movement or plant-based, we’ve seen the pendulum swing back dramatically back to dairy, back to brands that consumers know,” Smolyansky said.

Woo hoo! 

Lifeway Foods saw a 29.1% increase in sales during the third quarter of 2022, driven in part by a strategy to expand its product offerings for on-the-go consumers and boost awareness of probiotics, according to Smolyansky. Lifeway’s main products are dairy-based kefir, a nutrient-dense fermented dairy food loaded with protein and probiotics.  

If you missed the January 20 blog titled “Commit to Innovating with Probiotics and Protein in 2023,” you can link to it HERE. That Dairy Processing research I mentioned at the top of this page, identified protein and probiotics as the two most important ingredient trends for U.S. dairy processors. 

What are nutrient-dense foods? These are foods that pack in a lot of beneficial nutrients relative to their energy content. Many dairy foods are nutrient-dense foods. 

According to recent research conducted by New Nutrition Business, Gen Z and Millennials, specifically,  are looking to get more bang for their buck. The concept of nutrient density resonates with them, even though the phrase “nutrient density” may not roll off their tongue. 

The research took place across five countries: US, UK, Australia, Brazil and Spain. It showed that consumer interest in eating more nutrient-dense foods continues to climb, with 18% of people saying they look for more nutrient-dense foods, compared to 12% in 2021. 

Nutrient density has always been part of the dairy industry’s vernacular. It’s back in the conversation as consumers worry about inflation and how they can afford to eat healthfully. 

“Keep bellies and wallets full with satiating, nutritious food and drink,” said Lynn Dornblaser, director of innovation and insight, Mintel, at The Hatchery Chicago, which hosted the “Consumer Trends of 2022 and 2023 Predictions” conference on Jan 25, 2023. “Although consumers may not readily know the term nutrient density, it is what they seek. It feels like the new way to talk about healthy. There’s opportunity to balance solid nutrition with a fair price. Brands will need to make basic nutrition and satiety messaging clear to help consumers stay in control of grocery budgets while easily nourishing themselves.” 

To read more on this topic, link HERE to “What consumers want in 2023,” an online article I wrote this week for Food Business News. 

According to research from Innova, one in two consumers globally agree that cost and value for money have become more important over the course of the past year. The challenge and opportunity for the food industry lies in how to provide affordable nutrition.

“Rating ‘health’ (41%) as the most important driver of product development, with ‘affordability’ (30%) in second place, it is clear that consumers look for simple and nutritional solutions that fit their strained budget,” according to Innova’s Global Insights Director Lu Ann Williams. 

On February 22, Williams, along with Kamel Chida, advisor to VC Nucleus Capital and the Bill & Melinda Gates Foundation, will discuss the growth opportunities for food and beverage businesses. Discover what consumers say about their health and nutritional needs, and how companies can fill this demand at affordable prices. Link HERE to register.

One of my favorite trends surveys comes from Pollock Communications and Today’s Dietitian. The 757 registered dietitian nutritionists (RDNs) who responded to this year’s “What’s Trending in Nutrition” survey provides insights on what they believe consumers will value in 2023, their top concerns when grocery shopping, and their top-10 superfood predictions. 

The study shows that after keeping immune health and comfort top-of-mind during the pandemic, consumers are back to prioritizing affordability and convenience when shopping for food. As consumers navigate the cost-of-living crisis, RDNs predict that affordability will be a higher priority than immunity for the first time since the onset of the pandemic. Consumers will be looking for functional, value-based foods that support their immunity and gut health. RDNs predict the top purchase drivers in 2023 will be foods and beverages that:

• Are affordable and value-based (70.4%)
• Are easily accessible and convenient (59.1%)
• Support immunity (57.6%)

Their predictions for the “Top-10 Superfoods for 2023” are:

• Fermented Foods, such as yogurt, kimchi, kombucha tea and pickled vegetables
• Seeds, such as chia and hemp
• Blueberries
• Avocados
• Nuts, including pistachios, almonds and walnuts
• Leafy Greens, such as spinach
• Aquatic Greens, such as algae, seaweed and sea moss
• Green Tea
• Ancient Grains
• Non-Dairy Milks

But It Is Real Milk With the Benefits

Coffee with milk (proteins) may have an anti-inflammatory effect, according to a new study published in the Journal of Agricultural and Food Chemistry. Researchers at the Department of Food Science, in collaboration with researchers from the Department of Veterinary and Animal Sciences, at University of Copenhagen, investigated how polyphenols behave when combined with amino acids, the building blocks of proteins. The results have been promising. To read more, link HERE.

“In the study, we show that as a polyphenol reacts with an amino acid, its inhibitory effect on inflammation in immune cells is enhanced. As such, it is clearly imaginable that this cocktail could also have a beneficial effect on inflammation in humans. We will now investigate further, initially in animals. After that, we hope to receive research funding which will allow us to study the effect in humans,” said Professor Marianne Nissen Lund from the Department of Food Science, who headed the study.

With that said, the RDNs who responded to the “What’s Trending in Nutrition” survey, said that plant-based eating continues to rise in popularity. They rated it as the third most popular diet trend after intermittent fasting and keto diets. However, despite the popularity of plant-based diets, only 1% of surveyed RDNs reported that they would recommend highly processed meat alternatives.

Snacking Isn’t Slowing Down

RDNs predict that, despite loosened COVID-19 restrictions, consumers are still snacking as much as they were over the last two years, with boredom (71.8%), comfort (71.8%) and working from home (67%) being the top-three reasons why.

“Consumers are more aware than ever of the benefits food can provide for gut health and immune function. As consumers face higher costs at the grocery store, they’ll be looking for affordable food and snacks that still provide valuable health benefits,” says Louise Pollock, President of Pollock Communications. “Our survey findings reflect how consumer behaviors are shifting as COVID-19 restrictions loosen, remote work remains and inflation rises, from prioritizing affordable foods to continued interest in snacking.” 

Misleading Marketing and Nutrition Misinformation

Food and wellness content online can make nutrition confusing for consumers because it is often misleading. While the majority of RDNs agree that consumers look to social media platforms for nutrition information, they also believe that these platforms are rife with nutrition misinformation, specifically citing Facebook, Instagram and TikTok as the top sources, and social media influencers being the category leading the charge for delivering misinformation.

“Social media influencers are talking about wellness and nutrition at rates never seen before, but people struggle to differentiate between credible information and myths. This only supports the need to amplify credible sources of nutrition information, like registered dietitian nutritionists,” says Mara Honicker, publisher of Today’s Dietitian. “With the survey in its 11th year, we are excited to continue to share insights from these experts in food and nutrition, at a time where the value of food is subject to more scrutiny.”

Prioritizing Gen Z in 2023

 

Caution: Some of you may not like reading today’s blog…and, please keep in mind, these are generalizations backed by global industry research authorities. It’s not like I woke up on the wrong side of the bed and have a negative attitude. I did my homework!

Baby Boomers, the time has come. You are irrelevant for the majority of food and beverage innovation and marketing. You will get over it, hopefully sooner than later, because once you do, there’s a world of change waiting for you, a world where you can make a difference. 

Irrelevancy is nothing to us Gen Xers. I/We were never relevant, as Baby Boomers overshadowed us and then produced families—Millenials--that exerted their “powers of participation” to make themselves as important, if not more, than their Boomer parents. Well, that’s over with. Gen Z is where the action is. Consider this payback from Gen X, as Gen Z is our offspring. 

Gen Z watched their Gen X parents survive foreclosures and bury dreams of getting that single-family, white picket fence home in “a good neighborhood with good schools.” (My family of four never left our two-bedroom starter townhouse in Chicago.) During the 2008 financial crisis, they saw us shop sales and clip coupons. “No sale, no coupon, no box of cereal,” was a repeated phrase in my home. Hello Groupon, which began the same year. Groupon was the only ticket to having date night. 

And now, it’s 2023. Gen Z is growing up, and the ONLY demographic important to most marketers. The good news is, Gen Z may be more grounded mentally, physically, socially, and every …ally than any other living generation. To put it nicely, they’ve gone to H E DOUBLE HOCKEY STICKS and back with the pandemic and they want change. They want a "Back to Basics" approach to eating. 

This past Wednesday (Jan. 25, 2023) afternoon, The Hatchery Chicago hosted a “Consumer Trends of 2022 and 2023 Predictions” conference. My forever professional friend, Lynn Dornblaser, director of innovation and insight at Mintel, shared some great insights based on her nearly 40 years of experience tracking global food and beverage trends. This Boomer knows—and embraces—that it is all about Gen Z. 

She shared some of Mintel’s leading food and drink trends. One is “Savvy Sustenance,” which is all about nutrient density, and being fueled by Gen Z who is savvy with their newly earned dollars.

“Although consumers may not readily know the term nutrient density, it is what they seek. It feels like the new way to talk about healthy,” said Dornblaser. “There’s opportunity to balance solid nutrition with a fair price.”

That’s screaming dairy!

Another is “Unguilty Pleasures.” Post pandemic, consumers are all about the freedom to indulge and to treat themselves. This is being fueled by…Gen Z, the demographic who was shipped back home while studying abroad in March 2020. The demographic who missed 8th grade, high school and university graduation ceremonies. They want their cake! They will eat dessert before dinner. 

“Often, pleasurable food and drink are marketed as being naughty, guilty or frivolous,” said Dornblaser. “This approach can be alienating for consumers—even those who adhere to healthy diets—who need some well-earned, guilt-free respites.”

She said that food innovators should focus on flavor and experience. It’s all about “small treats” or easily portioned products to allow consumers a well-considered treat.

That’s screaming dairy!

Need more Gen Z marketing direction? 

Here are insights from Cheyenne Hunt, J.D., (infographic source above) an advocate and attorney specializing in progressive activism, legislative advocacy, communications and democracy-focused tech policy.

She explained that Gen Z, the “iGen” demographic cohort born between 1997 and 2012, is the first to grow up fully immersed in technology. The belief systems and behaviors of Gen Z are a driving force not only in shaping culture, but economies at the global level. It’s imperative to understand commonalities in order to discern opportunities and challenges that lie ahead. 

 

She said that many Gen Zers prioritize their career and financial goals over immediate gratification in their personal lives. They are more materialistic and motivated to succeed than previous generations, with an overall goal achieving financial security and an upper middle-class lifestyle that now is seemingly out of reach for many as wages remain stagnant over time. 

Gen Z values a slower pace of life and is more focused on living in the present moment. Research shows that two-thirds of Gen Z is moderately to extremely worried about their physical and mental health, making health a high priority for this generation. They also distinguish between “quiet quitting,” which many in the generation believe is simply giving only as much into their job as their job compensates them for vs. “slow living,” which involves setting healthy boundaries between work and personal life.

Gen Z is known for their budgeting skills and understanding of credit. After watching their parents face the consequences of the 2008 financial crisis, they tend to be more financially savvy and responsible than previous generations. 

Call me crazy, but I think Gen Z wants to embrace dairy products. They want a "back-to-the-basics" approach to life. Make sure they remain relevant to this young cohort. Repeat after this Gen Xer: no one else matters, only Gen Z.   

Commit to Innovating with Probiotics and Protein in 2023

 

Happy New Year! It’s been a few weeks since I blogged, as the year kicked off with a trip to Tampa to watch the Illini (my alma mater) play (and lose) in a Bowl game. That was quickly followed with going to Orange County to speak at the inaugural “Coffee, Tea and Creamers: The Art and Science of Milk in Beverages” short course at Chapman University. This was one of a number of programs from the Dairy Business Innovation Initiative Pacific Coast Coalition funded by USDA-AMS, in collaboration with the California Dairy Innovation Center. And then there was the Winter Fancy Food Show this week in Las Vegas. 

The two industry events confirmed that startups and entrepreneurs are embracing dairy to make everything from milk tea boba to high-protein snacking cheesecakes to culinary-inspired butters. Link HERE to my Food Business News dairy-focused overview and slide show from the Winter Fancy Food Show. (The Bowl trip reminded me I am getting too old to day drink at an outdoor sports event.)  

Let’s kick start this year with what I believe will be the two most important attributes to market in dairy foods this coming year. They are probiotics and protein. 

Here’s some great news. After nearly three years of shifting priorities, the dairy industry is starting to prioritize new product development and innovation again, according to Cypress Research, Kansas City, Mo. Probiotics and protein are the two most important ingredient trends for those who participated in this confidential survey of U.S. dairy processors on behalf of Dairy Processing. 

I will assist with discussing findings from this survey during a free webinar on Feb. 8, 2023. Link HERE to register. 

Interest in these two ingredient categories should not be surprising, as almost all of the food and beverage trend reports and forecasts for 2023 rank gut health/immunity as a consumer priority, with protein maintaining a prominent force in health and wellness programs. One of the most reputable authorities on food and consumer trends is the International Food Information Council (IFIC), which has stated that 2023 will be a year all about healthful beverages and demands for probiotics and protein, among other trends. 

Let’s jump straight to the gut. IFIC explains that probiotics have been steadily growing in popularity, with digestive/gut health being the third most commonly sought-after benefit among Americans. Don’t expect that interest to wane in the coming year, and expect to see them more and more beyond the yogurt section, as probiotics are increasingly being added to non-traditional foods, like chocolate, ice cream, juices, sauces and even nutrition bars. 

Beverages, specifically, are viewed as an ideal delivery system for probiotics. According to IFIC’s 2022 Consumer Insights on Gut Health and Probiotics Survey, of those who try to consume probiotics, 25% say they commonly seek them out in wellness drinks. 

IFIC’s conversation on protein is that plant-based alternatives to meat and dairy are old hat, but plant-based pasta, rice and snacks will be a growing trend in 2023. These products point a new lens on sustainability and innovation, often relying on “upcycling,” which takes plant-based food components that ordinarily would have gone to waste and processes them for use in other products. Upcycling reduces food waste and contributes to sustainable food production. 

It is true. Consumers are becoming increasingly comfortable with innovative, plant-based food alternatives, a trend that should continue in 2023. But the majority still love meat and dairy. It is paramount that the dairy industry “change the narrative about the power of dairy protein.” Link HERE to read a recent piece I wrote on this topic for Food Business News. 

Want to learn more about formulating with dairy proteins? Link HERE to register for the American Dairy Products Institute's "Dairy Ingredients 360 Dairy Course" starting Feb. 9, 2023. 

And here’s another good read. Link HERE to read “Consumer interest driving gut health innovation.” 

Please commit to innovating with probiotics and dairy proteins in 2023. Happy New Year!