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Unilever created an experimentation fund for business and innovation ideas that do not go through the usual research processes, according to Unilever senior marketing director Aseem Puri. Speaking at the Campaign Asia-Pacific’s 2015 Marketing Innovation Summit in Singapore, Puri said companies should see failure as opportunities for promoting innovation and entrepreneurship among employees. According to the executive, the company’s Unilever Foundry initiative seeks to promote partnerships with startups in creating and promoting innovations that can disrupt the FMCG market.
"Unilever at MIS: Brands must accept failure if they seek to innovate", Campaign Asia Pacific, November 23, 2015
Twenty-somethings – dubbed Generation Z – are the first post-Millennial generation and the first generation to be exposed to multi-channel and digital marketing almost from birth. As children of the Internet age, they make foodservice buying decisions based on outside sources of information, including peers, social media, and traditional media. According to Technomic, Gen Z-ers skip meals and snack a lot while watching TV or listening to music; crave flavorful, high-quality, healthful food; value foodservice speed and digital engagement, but also social eating opportunities; and, as their earning power grows, view their lifestyle choices as independent.
"Technomic's Consumer 4Sight Group Takes a Deep Dive into Gen Z Foodservice Usage Patterns", Report, Technomic, November 05, 2015 | The New York Times , November 21, 2015 Digiday, November 06, 2015 | |
| Companies, Organizations | | | | In France, a group of 39 companies, including retail giant Carrefour, is calling on the French COP21 presidency and all governments attending the United Nations Framework Agreement on Climate Change meeting in Paris to sign a global agreement that would help reduce greenhouse gas emissions. Seeking a deal that would help keep global warming at a maximum of 2 degrees Celsius, the companies believe that putting an economic value on carbon in major economic regions will help business leaders to see the impact of GHG emissions linked to their companies’ operating, investment, and R&D decisions. Some of the concrete steps being taken by these companies to improve sustainability include the use of active and passive energy-efficient... More "French companies act on climate ", Carrefour, November 26, 2015 It would seem to be a trend among affluent Americans – the Millennials demographic, actually – because it’s unlikely that anyone else could afford it. The trend is called “Friendsgiving,” and the idea is basically to stage a Thanksgiving dinner for family, then another one for single friends. If one Thanksgiving is expensive and time-consuming to provision and prepare, imagine two or even three. An example is the Riley family of Harrisburg, Pa., who prepare a big turkey and ham for 20 friends each year, each of whom brings a dish they cooked up. The idea, which exploded on social media over the past few years, has also caught on among grocery retailers. Some chains, including Peapod, created marketing campaigns and social media... More "'Friendsgiving' -- America's new Thanksgiving trend", CNN Money, November 25, 2015
With stress levels rising in the U.S. – 80 percent of Americans report increased stress in their lives – it should be no surprise that beverages, particularly tea, that deliver relaxation are finding a market. A company known as Traditional Medicinals recently added Stress Ease Cinnamon tea to its line of relaxation teas, sold as supplements. The new tea is unique in the market, according to the company, because a main ingredient is skullcap, purportedly a gentle and effective herb for reducing tension. Traditional Medicinals uses organic, non-GMO, pharmacopoeial grade skullcap blended with cinnamon and licorice.
"“There is significant opportunity for relaxation beverages," Traditional Medicinals manager says", NUTRAingredients-usa.com, November 24, 2015 | My News Desk, November 24, 2015 The Economic Times, November 24, 2015 The Hindu Business Line, November 24, 2015 Mobile Commerce Daily, November 19, 2015 Bloomberg Gadfly, November 19, 2015 TIME Staff
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| Consumers | | | | In China, there were 21 fast moving consumer goods companies reaching more than 100 million urban households during the year ending October 9, 2015, according to Kantar Worldpanel. Data from the market research firm revealed Procter & Gamble was able to keep its lead among all FMCG companies, reaching 153 million urban families, or 95.5 percent, during the past 12 months. China-based dairy companies Yili and Mengniu took the next two spots with 88.5 percent and 88.2 percent of urban households, respectively. In contrast, only 15 companies reached more than 100 million urban households in the country in 2012. Although P&G and Unilever kept their lead in the personal care and household care segments, Liby and Nice Group posted... More "Who Are Winning More Chinese Consumers in 2015?", Kantar Worldpanel, November 25, 2015 Two U.S. universities were each awarded $1 million by the USDA to create regional nutrition education “Centers of Excellence.” The money will be used by the University of Tennessee (Knoxville) and Utah State University to fund research into nutrition education and obesity prevention for disadvantaged children and families. The Knoxville Center will focus on reducing obesity by analyzing programs to identify facilitators, barriers, best practices, training and evaluation needs. Utah State will use its $1 million grant to compare the effectiveness of the Expanded Food and Nutrition Education Program (EFNEP) and Supplemental Nutrition Assistance Program (SNAP) programs on participants and non-participants of different ethnic and... More "USDA Awards $2 Million for Nutrition Education and Obesity Prevention Research", News release, U.S. Department of Agriculture, November 23, 2015
British sausage rolls, a Boxing Day tradition, ignited a social media frenzy when a New York Times recipe spurred apparently silly questions from Americans who seemed confused by the food. Britons and Australians fired their Twitter guns, expressing “outrage and disbelief” that the former colonists could be so ill-informed about such a revered Christmas time delicacy. Tweeters suggested that the Times might want to visit British bakery chain Greggs to check out the real thing.
"America has just discovered the sausage roll, and it has set off a bizarre social media storm", Evening Standard, November 10, 2015 | The Washington Post, November 13, 2015 The New York Times, November 09, 2015 Institute of Food Technologists, November 01, 2015 | |
| Deals, M&A;, JVs, Licensing | | | |
In a move to diversify its product line to attract younger shoppers with healthier, less-processed foods, Pinnacle Foods will acquire Boulder Brands for $682 million. The deal, which includes $262 million debt and represents a 9.2 percent premium on Boulder’s November 23 stock price, will give Pinnacle, maker of old traditional brands like Duncan Hines and Vlasic Pickles, an entry into the trendy gluten-free, organic foods market. Boulder makes Udi’s gluten-free pizzas and Evol natural frozen dinners The Pinnacle-Boulder deal is the latest in a trend. General Mills Inc. last year paid $820 million – a 37 percent premium – for natural and organic snack maker Annie’s Inc.
"Pinnacle Foods to Buy Boulder Brands", The Wall Street Journal, November 24, 2015 | Reuters, November 18, 2015 | |
| Innovation & New Ideas | | | |
Retail consumer goods shops in Europe are testing the idea of zero packaging: selling products loose. Customers brings their own glass or plastic jars, recyclable cotton pouches, etc., and end up saving as much as 15 percent, London has Unpackaged, Berlin has Original Unverpackt, and now Paris has one hundred percent organic Biocoop 21. The shop is testing ways to sell 250 products without packaging, including yogurt, honey, olive oil, wine, body wash and health products. The idea not only saves shoppers money, it is good for the environment, helping to eliminate waste.
"Paris’s First 100% Organic, Zero Packaging Shop Opens Its Doors", Konbini, November 05, 2015 For a hundred years, American wheat has been grown – not for flavor or nutrition – but for industrial “profit and expediency,” says Steven Jones of the Bread Lab in Mount Vernon, Wash. Jones is on a mission to change all that. Long ago America milled flour from a wide variety of wheat. The flour made bread that was “astonishingly flavorful and nutritious.” Not so anymore. Part of the problem is that mass-produced flour, even purported whole wheat flour, is missing the nutritious stuff, all of which was sacrificed for, among other reasons, increased shelf-life. Jones’s answer is to breed new wheat varieties for ‘‘flavor, nutrition, funkiness.’’ He has succeeded. The Bread Lab’s reputation has grown quickly, drawing in a widening... More "Bread Is Broken", The New York Times Magazine, October 29, 2015 | The Economic Times, November 20, 2015 Channel NewsAsia, November 19, 2015 Lund University, November 11, 2015 Fast Company, November 09, 2015 Food Product Design, November 05, 2015 | |
| Legal, Legislation, Regulation, Policy | | | | Euromonitor wonders about the future of sustainable palm oil, now that Malaysia and Indonesia have set up a bilateral council to regulate production currently monitored by industry led voluntary frameworks such as the Roundtable on Sustainable Palm Oil (RSPO). The new Council of Palm Oil Producing Countries (CPOPC) could force companies into making difficult decisions regarding their palm oil purchasing policy, according to Euromonitor. The CPOPC has asked palm oil companies to roll back plans to enforce the 2014 Indonesian Palm Oil Pledge whose goal is to curb deforestation in palm oil production. The key question: will big palm oil users, like Mars, Mondelez and PepsiCo, have to realign their palm oil sustainability commitments... More "CPOPC Could Spell Trouble for Sustainable Palm Oil", Blog, Euromonitor International, November 16, 2015
Sen. Charles Schumer (D-N.Y.) has a thing about caffeine as a food and food additive. He believes it’s dangerous. He has pressured the FDA to issue warning letters to makers of caffeinated alcoholic beverages and powdered caffeine. He’s on the warpath again, this time targeting a new peanut butter that contains 170 mg of caffeine in a two tablespoon serving, the same amount of caffeine as two cups of coffee. STEEM peanut butter, sold only in Massachusetts and Connecticut so far, also contains electrolytes and protein. It’s perfect for athletes, active people, and just normal people, the company says. The FDA hasn’t received a letter from Schumer yet, but promises to respond when it gets one.
"This new peanut butter has twice the caffeine of a cup of coffee", Quartz, November 09, 2015 | Food Safety News, November 20, 2015 NewHope360.com, November 17, 2015 The New York Times, November 13, 2015 Food Safety News, November 13, 2015 The Grocer, November 03, 2015 | |
| Market News | | | |
U.S. Bankruptcy Judge Kevin Gross approved Albertsons Cos.’s plan to reacquire 33 stores it had to sell as part of the government’s requirements for approving its acquisition of rival Safeway Inc. In January 2015, the U.S. Federal Trade Commission approved the merger deal on the condition that the companies would sell 168 stores to preserve competition in the retail market in several Western states. Haggen Holdings LLC bought most of the stores; however, it struggled to make the stores work and had to close some of them.
"Albertsons to Buy Back 33 Stores It Sold as Part of Merger With Safeway", The Wall Street Journal, November 24, 2015
British grocery store shopping data from Kantar show that discount German grocers Aldi and Lidl achieved a combined 10 percent market share in the quarter ended November 8. That’s double the market share from 2012. The two chains added a million shoppers from a year ago, and average spend per shopping trip was up four percent. With plans to open hundreds of stores in the short term, the two retailers are tightening their hold on British grocery shopping. Conventional grocers are fighting back, however. Sainsbury's most recent fiscal period saw a 1.5 percent increase in sales, a 0.2 percent increase in market share, and the distinction of being once again the second largest grocery chain behind Asda.
"Aldi and Lidl reach combined 10% share", News release, Kantar Worldpanel, November 17, 2015
It’s a little early to tell, but it might be a sign of the times: the “hybrid” food trend morphing into a hybrid restaurant trend. A Fort Wayne, Ind., doughnut shop used to share space with a hot dog diner, but will now share with a Vietnamese restaurant. Mike’s Donuts and Pho Viet couldn’t be more opposite in cuisine. Doughnuts, after all, are loaded with sugar and fat. Vietnamese food – especially namesake pho soup with various vegetables – is fairly healthful eating. Also on the menu are noodle bowls, small salads, Vietnamese sandwiches, rice plates, appetizers, Vietnamese iced coffee, boba tea and more. Coming soon: beer and wine, if Pho Viet can get the appropriate licenses.
"Restaurant Notes: Vietnamese eatery opens in doughnut shop", News-Sentinel.com, November 17, 2015 | Euromonitor International, November 26, 2015 The Economic Times, November 24, 2015 DDW The Color House, November 24, 2015 The Economic Times, November 22, 2015 The Grocer, November 21, 2015 Kelloggs, November 19, 2015 | |
| Products & Brands | | | | A former FDA official says don’t worry about the efficacy of dietary supplements – at least for now. Pay attention instead to their safety. Dr. Joshua M. Sharfstein, now at Johns Hopkins University, argues that many dietary supplements – vitamins, minerals, herbal extracts, etc. – are spiked with pharmaceuticals, are poorly manufactured, or lack the stated ingredients. Unfortunately, there is gridlock in dealing with the problem at the national level because manufacturers oppose closer scrutiny of efficacy and federal laws handcuff the FDA, keeping it from effectively monitoring the thousands of products on the market. But Sharfstein says that manufacturers would probably support stronger safety controls if they were not tied to... More "Breaking the gridlock: Regulation of dietary supplements in the United States. ", Drug Testing and Analysis, November 20, 2015 Clean eating, organic, “free from,” and “flexitarian” (i.e., part-time vegetarian) are some of the key trends in food and drinks for 2016, according to an analysis of product launches by Innova Market Insights. The desire for transparency in food ingredients showed itself in the form of the “clear label" trend, a step up from “clean label.” Though most consumers don't need foods “free from” gluten, wheat, or dairy, they want them anyway, making it a major trend. Part-time vegetarians have reduced meat consumption for health, sustainability or animal welfare reasons, and that’s having an impact on new food products. Consumers are looking for fresh alternatives to preservatives, like fermentation and other ancient techniques. Other... More "Top Food & Beverages Trends for 2016: "Clean Eating" Trend Inspires a Back to Basics Approach", News release, Innova Market Insights, November 17, 2015 An American doing public health work in Ethiopia forty years ago became enamored of the nutrient-rich native grain known as teff, the main ingredient in the flat bread injera, and a potential competitor of wheat. Back home in Idaho he decided to introduce teff to farmers in the region, including Oregon and Nevada. Wayne Carlson and his wife would mill it into flour. Customers for the flour were few and far between at first, but over the decades the Teff Company found an audience among Ethiopian and Eritrean immigrants in the U.S., and among farmers interested in growing it for livestock forage. It’s now big business. Teff production, which requires far less water and fertilizer, has gone from 1,200 hectares in 2003 to more than 40... More "Demand Rises for Teff, Other 'New' Alternatives to Wheat", Voice of America, October 30, 2015 | Firmenich, November 24, 2015 BakingBusiness,com, November 23, 2015 The Economic Times, November 18, 2015 Fortune, November 17, 2015 Huffington Post, November 17, 2015 The Drum, November 17, 2015 | |
| Research, Studies, Advice | | | |
Obese people are often afflicted with metabolic syndrome, an array of conditions that include excess abdominal fat, high blood pressure, low "good" cholesterol, and high levels of blood sugar and fats. People with metabolic syndrome have one thing in common: they tend to be deficient in vitamin E (alpha-tocopherol), which the body needs to fight oxidative stress that can lead to heart disease, diabetes, Alzheimer's disease and cancer. The key problem for obese people is that, while they need higher levels of vitamin E to fight oxidative stress, their obesity is preventing absorption of the vitamin. And, contrary to recent findings, dairy fat does not increase the bioavailability of vitamin E, at least in supplement form.
"α-Tocopherol bioavailability is lower in adults with metabolic syndrome regardless of dairy fat co-ingestion: a randomized, double-blind, crossover trial. ", American Journal of Clinical Nutrition, November 20, 2015
A large, 30-year study conducted among healthcare professionals found that coffee drinking was linked to a lower risk of death from heart disease, stroke, diabetes, neurological diseases and suicide. No association with reduced cancer risk was found, however. The risk of death was reduced by six percent among nonsmokers who drank at least one cup of coffee – either caffeinated or decaffeinated – a day. The greatest reduction in risk – 15 percent – was found among nonsmokers who drank between three and five cups a day. Controlling for age, alcohol consumption, BMI and other health and diet factors did not change the results.
"Association of Coffee Consumption with Total and Cause-Specific Mortality in Three Large Prospective Cohorts", Circulation, November 18, 2015 | The New York Times, November 20, 2015 University of California, San Diego, November 16, 2015 EurekAlert!, November 12, 2015 European Food Safety Authority, November 12, 2015 The American Journal of Clinical Nutrition, November 11, 2015 Nestlé, November 10, 2015 | |
| Trends | | | |
A small but ambitious Indian FMCG company with roots in retail believes it may have a marketing edge on the entrenched big brands that dominate the retail universe in the country. Future Group believes that its understanding of Indian needs and preferences will make a big difference. The company has learned that cheaper prices and fancy store displays don’t work as well as consumer insights. Consider body wash, for example, a product that does not sell well. Imported brands tend to be expensive and thick, made for consumers used to taking showers. Future Group came up with a cheaper product, Think Skin, that is thinner and better suited for use with mugs and buckets. It is now a market leader.
"Can FMCG newbie Future Group take on biggies Britannia & Unilever?", Economic Times, November 18, 2015 Foods perceived by consumers as “naturally healthy” – so-called “clean label” items like oatmeal and spring water, free from adulteration or refinement – dominate the health and wellness category, Euromonitor says, though all categories are performing well. Naturally healthy is largest in world sales ($276 billion) and the fastest growing. New superfoods and beverages will contribute to a forecast growth of $69.2 billion by 2020. But that doesn’t mean other categories of health and wellness foods are fading. Fortified/functional offerings, for example, are showing healthy growth, especially those containing protein and energy. Gluten-free is becoming a food industry behemoth, and gluten-free versions or bread and pasta are making... More "Health and Wellness Market Performance 2015: What’s New?", Blog, Euromonitor International, November 17, 2015
KFC has begun testing fried chicken delivery at 60 restaurants in San Francisco and Los Angeles. The company has partnered with food delivery app Door Dash. Customers may order food using their smartphones or the Door Dash Web site. It is expected that the test will expand to Houston, Texas, by the end of the year, bringing the total of stores involved to 100. A KFC delivery initiative failed several years ago, but this is the first time the company is working with a high-tech delivery service.
"KFC now delivers fried chicken to your doorstep", Mashable, November 12, 2015 | BakeryAndSnacks.com, November 25, 2015 Euromonitor International, November 21, 2015 The Harris Poll, November 19, 2015 Food Dive, November 17, 2015 CPG Matters, November 15, 2015 GNT Growing Colours, November 12, 2015 | |