10 Key Trends in Food, Nutrition & Health 2016

10 Key Trends 2016 Report Cover

Which are the real GROWTH trends in food and health?

The ones that will still matter 5 years from now?

Our annual trend survey, now in its 20th year, gives you the answers.

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Recent Case Studies Coca-Cola steps into the non-dairy milk market South America’s biggest non-dairy drink brand is being sold to Coca-Cola for $575 million (€515 million), a move which makes Coca-Cola the biggest player in South America in non-dairy milks and provides it with a platform from which to enter other markets. read more Premium snacking not in your strategy? Then re-write it Snacking – providing products in the most super-convenient, single-serve form possible – is a key part of the strategy of every ambitious company. As Chart 1 below shows, it’s easy to see why. read more Cheese plus technology ignites a new snack category The simple-ingredients trend in North America has reached cheese snacks with the launch of product lines by two companies, using the same process, that consist of nothing but dried cheese pieces in a bag. read more Making ice cream greater Sensing change in the air, premium ice cream brand Graeters swapped its artificial colours for clean ingredients – a timely move that helped preserve the brand’s quality image. And more recently, it has added a low GI line using an alternative sweetener. But the guiding principle remains the same: indulgent great taste. read more Food giant targets niche By developing products to address the considerable nutritional and lifestyle challenges faced by cancer patients – and eschewing conventional retail channels in favour of home delivery – food giant Hormel hopes to gain the loyalty of this niche of consumers. read more Atkins targets “sweet spot” of protein benefits Mainstream science and consumers’ thinking has been catching up with the basics of the Atkins Diet lately, but the Atkins Nutritionals brand would rather keep staying ahead of the game. That’s why Atkins has launched the Lift line of low-carb, high-protein bars and drinks which is aimed at fitness enthusiasts rather than the brand’s traditional target of the weight-loss community. read more Meat snacks leader throws veggies in the mix Despite all the new entries and the big names that have been coming into the meat-snack category lately, an independent family-owned company remains by far the No. 1 brand worldwide. read more Halos keep shining for Wonderful Wonderful Company is trying to work its marketing magic on the lowly grapefruit, and it’s got a great business model to copy in doing so: its own success in turning mandarins into a consumer brand called Halos. read more Plant food trend a boost for veggie burger pioneer Dr Praeger’s Sensible Foods was selling products for a viable diet based on healthy foods nearly a quarter-century ago, at a time when fads ruled the diet-foods industry. Now it finds itself well-placed for growth as mainstream Americans embrace eating based on vegetarian and vegan fare. read more Weight loss brand freshens up frozen for the modern consumer Lean Cuisine may have begun turning around its fortunes after an ambitious re-launch attempted to realign the plummeting Nestle-owned brand with the changed tastes and preferences of American consumers who’ve swung to a more holistic approach to weight loss – and have grown more wary of frozen foods in general. read more
Big food’s need to nurture will make start-ups succeed

Big food’s need to nurture will make start-ups succeed

There’s an idea that many people have that “big food” – as the much-reviled large food companies of the world are often called – can’t manage and grow small entrepreneurial brands, and can’t respond fast enough to consumers’ desires for products that are natural and organic.

As one online new source put it: “Big US food groups are struggling to adapt”. However, as is often the case with popular wisdoms, this one isn’t exactly true.

In fact, in today’s viciously competitive supermarkets, start-ups without partnerships with entrepreneurially-minded big food groups might just disappear.

The relationship between organic food pioneer Annie’s Homegrown and General Mills shows just what’s possible when David and Goliath co-operate and gives a clue as to what might happen next now that dairy giant Danone has taken a 40% stake in Michel et Augustin, the best-known small entrepreneurial brand in France.

General Mills – the world’s 10th-biggest food company, with sales of $12.5 billion (€11 billion) – acquired Annie’s in 2014. Since then Annie’s has expanded far beyond its earlier constraints, growing to nearly $300 million (€265 million) a year in sales from about $200 million (€177 million) when General Mills bought the company in late 2014.

Annies – beloved by parents for its organic kids foods – is showing its new owners how to formulate better-for-you products, how to tap into enthusiastic consumer bases around organic foods, and is providing the larger company with a new growth engine.

General Mills has got Annie’s into new outlets such as schools and is enabling Annie’s to win more customers by extending its trusted brand to other segments beyond its core of macaroni and cheese and kids’ crackers. Annie’s has used the extra resource to double its number of new product launches.

“We got a lot of blowback from customers when the announcement came out that we’d sold,” Annie’s CEO John Foraker told New Nutrition Business.

“There were 20,000 posts on Facebook about it very quickly, and 99% of them were negative. It was less about hating GM and more about loving our brand and not wanting it to change. Once we were able to tell our story and reassure everyone that we were very much committed to our values—that we were going to stay in Berkeley [California] and most of the same people would continue to run Annie’s—the fear died down and we haven’t seen a negative impact on our business.

“And if anything, we’re bringing a larger number of Annie’s consumers into the fold.”

Foraker said that General Mills has stuck to its promises to let Annie’s run itself without compromise. “We haven’t been asked to compromise once on our products, what we stand for, what we message about—for example, we continue to be strong advocates for GMO labeling, and General Mills hasn’t tried to silence that at all,” he said.

For the parent company, Foraker added, acquiring Annie’s—to add to its lineup of organic brands that also includes Larabar, Cascadian Farms and a handful of others—“was a pretty significant signal that the company understands there have been really big shifts in consumers, and as a consumer-first organisation, they wanted to lead with consumers where they’re going.

“Also we bring a different culture—faster, more entrepreneurial, more willing to take risks.” Annie’s is helping General Mills with acquisitions of other better-for-you startups, such as the very recently purchased Epic Provisions, which makes meat bars (see NNB February 2016).

Foraker has stayed as president of his company since the acquisition and now also is in charge of General Mills’ “center of excellence” for organic and natural foods.

“We’re taking the best practices and our knowledge of the industry and how to stay relevant across channels and apply those best practices at [General Mills] brands and leveraging those across operating units to drive growth,” Foraker told New Nutrition Business.

Putting Epic, the meat-bar startup, under Annie’s and Foraker is another way that General Mills is capitalising on its ownership of Annie’s. “It’s a good example of a big company identifying a real cool brand that can do lots of cool stuff but which is very small,” he said.

“They want to incubate it and build it out like we did Annie’s. So they put it under us because we know how to operate brands like that. They see the opportunity to leverage best practices and acquire growth assets earlier in their development. It’s a big transition.”

Read more on the blog

Julian Mellentin

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