CLEAN LABEL: MEETING CONSUMER EXPECTATIONS AND OVERCOMING BAKING CHALLENGES

Transcription

1 CLEAN LABEL: MEETING CONSUMER EPECTATIONS AND OVERCOMING BAKING CHALLENGES PRESENTED BY: MARK HUGHES ABBY CEULE MATTHEW PATRICK 10/9/16

2 COMMUNICATING CLEAN LABEL TO CUSTOMERS AND CONSUMERS PRESENTED BY: MARK HUGHES ANDERSON PARTNERS FOOD INGREDIENT MARKETING 10/9/16

3 What are Clean Labels?

4 Clean-label trends Natural and authentic Free-from Non Simple ingredient names Local

5 IFT 2015 Clean Label No Longer Trending It s the Rule

6 IFT 2016 Clean Label Remains in the Spotlight

7 Clear Label Transparency is more important than claims

8 The Global View Consumers want to understand their foods. They find it important to recognize most names on a product s ingredient list.

9 Communications in Bakery Business-to-Consumer (B2C) Social Business-to-Business (B2B)

10 B2C

11 B2C

12 B2C (cont d)

13 B2C (cont d)

14 B2C (cont d)

15 B2C (cont d)

16 Social Media

17 Social Media

18 Social Media (cont d)

19 Social Media (cont d)

20 B2B

21 B2B

22 B2B (cont d)

23 B2B (cont d)

24 Summary

25 CLEAN LABEL: THE CONSUMER PERSPECTIVE PRESENTED BY: ABBY CEULE 3/30/16

26 CLEAN LABEL THE DEFINITION ISN T QUITE SO TIDY Balancing the removal of ingredients with consumer choice drivers is a critical step in making better choices for your products and brands.

27 BREADS

28 WHAT DOES THE CONSUMER REALLY WANT? Bottom line, consumers do not want to think about the ingredients in their food! They do not want to have to investigate ingredients. In fact, they would prefer not to even read labels. But they will when they have to. And they have to when they experience Health concerns A lack of trust A disruption in the market Source: Corbion Proprietary Research, October 2014

29 PROY CUES ARE OFTEN USED TO DETERMINE HOW HEALTHY OR GOOD FOR YOU A PRODUCT MIGHT BE Packaging or Menu Claims Nutritional Facts Ingredients On average, 60% of bread consumers state that type of ingredient has an impact on their purchase decisions. But what does type of ingredient mean to the bread consumer?

30 TYPE OF INGREDIENT MEANS DIFFERENT THINGS TO DIFFERENT PEOPLE Of the 60% of consumers who find type of ingredient a consideration in their purchase decision, they can be categorized into three segments This group is unlikely to read ingredient labels or nutrition facts but, when prompted, will focus more on front of package claims such as whole grain or low fat which may/may not refer to actual ingredients. Less Engaged 24% Ingredient Focused 33% Nutrition Focused 43% For this segment it s all about the specific ingredients and the claims that are made about them. The number of ingredients listed on the legend is important as a proxy for the quality of the product. For this segment it s more about the nutritional panel. Over 40% of the population is driven more by diet concerns, such as calories or fat per serving.

31 WHO ARE THESE CONSUMERS? Ingredient Focused (33%) Place more importance on specific ingredients and are more likely to read the full ingredient list Skew toward the belief that the shorter the ingredient list, the healthier the product Lifestage over index with millennials and under index with baby boomers Skew toward being organic bread consumers 32% organic consumers & 68% non-organic consumers Nutrition Focused (43%) Place more importance on general health and dieting factors More likely to look at the first few ingredients only Will be less impacted by length of ingredient list Interested in bread products with higher levels of protein Skew toward products that are low/reduced in calories, fat and sugar 20% organic consumers & 80% non-organic consumer Less Engaged (24%) More likely to be impacted by price When prompted by media or peer buzz, this group tends to read the package claims Tends to skip reading the ingredient list or nutrition panel Lifestage over index with baby boomers and under index with millennials 7% organic consumers & 93% non-organic consumers

32 AS CONSUMERS BECOME MORE ENGAGED, LIKELIHOOD OF NOT PURCHASING A PRODUCT CONTAINING CERTAIN INGREDIENTS INCREASES Knowing that market disruptions will likely continue to be a catalyst for label checking behavior, the impact on purchase behavior for products with those targeted ingredients could be significant. Likelihood to Purchase Product Containing Ingredient 5-7 (High purchase intent) (low purchase intent) Less Engaged Nutrition-Focused Ingredient-Focused Partially Hydrogenated Oils (PHOs) Azodicarbonamide (ADA) Calcium Peroxide Ethoxylated Monoglycerides DATEM Sodium Stearoyl Lactylate (SSL) L-Cysteine Monodiglycerides Calcium Stearoyl Lactylate (CSL) Potassium Bromate Potassium Iodate Calcium Propionate Vital Wheat Gluten point low-to-high scale where a 7 means definitely would purchase and a 1 means definitely would not purchase

33 BREAD PRODUCTS LAUNCHED IN 2014 SHOW AN INCREASE IN THE NUMBER OF NEW ITEMS THAT ARE CENTERED AROUND NO ADDITIVES/PRESERVATIVES, NATURAL AND ORGANIC 300 $3.3B $5.1B $2.2B $174M $94M No Low Cholesterol, Low Fat, Additives/Preservatives, No Trans Fat Natural, Organic Whole Grain, High Source of Fiber, Added Fiber Allergen, Gluten Free GMO Free Note: Products are not mutually exclusive as products contain multiple claims Sources: Sales Data IRI Total U.S. Ending New Product Introductions Innova Database

34 CONSUMERS TELL US THEY WANT BREAD PRODUCTS MADE WITH RECOGNIZABLE INGREDIENTS THAT ARE BETTER-FOR-YOU However, market share today implies there are trade offs

35 WHAT TIPS THE SCALE WHEN MAKING PURCHASE DECISIONS? Nutritional Claims Ingredient Focused Nutrition Focused Less Engaged Willing to spend more for 12 or fewer ingredients Willing to spend more for all natural ingredients and products with no preservatives Willing to spend more for 12 or fewer ingredients Willing to spend more for sugar claims (e.g., low/reduced sugar, sugar free, no added sugar) Willing to spend more for fat claims (e.g., low/reduced fat, fat free) Less willing to trade off attributes for price

36 BREAD KEY TAKE-AWAYS Consumers do not want to think about ingredients in their food but clean labels are becoming the expectation Proxy cues are used to determine a product s healthiness; ingredient panel, nutrition panel and packaging claims Ingredient length (number of ingredients and length of individual ingredient names) is something consumers appear to be willing to pay more for Mainstream brands have the opportunity to appeal to organic and non-organic consumers

37 SWEET GOODS

38 WHAT DOES THE CONSUMER REALLY WANT? Bottom line, sweet baked goods consumers are less focused on ingredients when purchasing an indulgent treat! However, on occasions when consumers do take an interest in ingredients, they similarly turn to proxy cues such as claims, nutrition facts and ingredient legends with front of package claims being most important for this category Front of package claims Nutrition facts Ingredient Legend

39 WHEN MAKING PURCHASE DECISIONS THE GAP IN WHAT THEY SAY AND WHAT THEY THINK OTHERS DO HIGHLIGHTS THE SOCIAL DESIRABILITY IMPACT ON INDIVIDUALS What They Say They Do What They Think Other Category Shoppers Do Calories per serving Sodium per serving Protein per serving Type of ingredients Front of package claims Perceived Frequency of Shoppers Reading Ingredient legend Front of package claims 0 Nutrition 100 panels Carbs per serving Fat per serving Never Always Sugar per serving Scale: 0-100% based upon importance of impact on purchase decision (scores ranged from 49% - 59%) Scale: 0-100% based upon perception of how often the average consumer reads (scores ranged from 46% - 65%)

40 SIMILAR TO BREAD PRODUCTS, ALL NATURAL AND NO ARTIFICIAL PRESERVATIVES/ADDITIVES RISE TO THE TOP FOR BEING ASSOCIATED WITH BETTER-FOR-YOU PRODUCTS Association with Better For You Products All natural No trans fat No artificial preservatives/additives No HFCS Low/reduced total sugar Low/reduced sodium No added sugar No artificial flavors Minimally processed Low/reduced fat No PHOs No artificial colors No fructose GMO Free Organic Stays fresher longer Gluten Free Scale: 0-100% based upon how much each claim is associated with better-for-you products

41 SWEET BAKED GOODS KEY TAKE-AWAYS Sweet baked consumers are less focused on ingredients when purchasing an indulgent treat Front of package claims are most important for this category. Claims that highlight quality ingredients are key natural, no trans-fat, no artificial ingredients Similar to bread, sweet baked goods consumers indicate they may be willing to spend more on products with 12 or fewer ingredients

42 FORMULATING CLEAN LABEL BAKERY PRODUCTS BY MATTHEW PATRICK DELAVAU FOOD PARTNERS 42

43 TRADITIONAL BAKERY INGREDIENTS ARE NOT LABEL FREINDLY Azodicarbonamide Potassium iodate Potassium bromate Mono-glycerides Potassium sorbate Calcium propionate L-Cysteine Sodium stearoyl lactylate Diacetyl tartaric acid ester of mono- and diglycerides Propylene glycol mono-esters

44 TRADITIONAL BAKERY INGREDIENTS PROVIDE HIGH FUNCTIONALITY Dough Strengthener - Azodicarbonamide - Potassium iodate - Potassium bromate Dough Relaxer - L-cysteine Crumb Softener - Mono- and mono-di glycerides Strengthen/Soften - SSL/CSL - DATEM Mold Inhibitors - Calcium propionate - Potassium sorbate

45 CLEAN LABEL FORMULATING INGREDIENT TOOL BO MD AMYLASE PROTEASE ENZYME SYSTEMS LIPIDS SPECIAL SUGARS OIDASE HEMI-CELLULASE LIPASE PROTEIN SALT STARCH SPECIALTY SYSTEMS CALCIUM GUMS SUGAR FLOUR COMMODITY INGREDIENTS YEAST

46 CLEAN LABEL FORMULATION PROCESS 1) Define Basic Formula Requirements & Key Product Attributes 2) Characterize Process time, temperature, shear, hold 3) Formulate Prototype System enzyme, starch, sugars, etc 4) Perform Initial Lab Evaluation in Application 5) Optimize Ingredient System enzyme type & level, starch type & level, etc. 6) Validate Application in Lab 7) Scale-Up Validation 8) Optimize Final System

47 CLEAN LABEL FORMULATION PROCESS 1) Define Basic Formula Requirements & Key Product Attributes 2) Characterize Process time, temperature, shear, hold 3) Formulate Prototype System enzyme, starch, sugars, etc 4) Perform Initial Lab Evaluation in Application 5) Optimize Ingredient System enzyme type & level, starch type & level, etc. 6) Validate Application in Lab 7) Scale-Up Validation 8) Optimize Final System

48 STEP 1 DEFINE REQUIREMENTS What does clean label mean to you? Process Requirements Dough/batter machinability Dough/batter tolerance Product Requirements Textural Shelf life Microbial Shelf life Sensory Attributes Freeze/thaw Distribution requirements Packaging Ambient/Refrigerated/Frozen Cost limitations

49 STEP 2 CHARACTERIZE PROCESS Optimum Start Early Optimal Late Temp Starch Functionality Enzyme Functionality Shear

50 STEP 3 FORMULATE PROTOTYPE SYSTEM 3 primary areas of functionality 1) Gluten structure modification 2) Starch structure modification 3) Air and oil droplet stabilization

51 STEP 3 FORMULATE PROTOTYPE SYSTEM 3 primary areas of functionality 1) Gluten structure modification -ADA, K bromate, K iodate, L cysteine 2) Starch structure modification 3) Air and oil droplet stabilization

52 STEP 3 FORMULATE PROTOTYPE SYSTEM MICRO-STRUCTURE OF GLUTEN-BASED BAKED GOOD G Oil Droplets Air Cells Gluten Starch Hemicellulose

53 STEP 3 FORMULATE PROTOTYPE SYSTEM MODIFICATION OF GLUTEN NETWORK Gluten Hemicellulose

54 STEP 3 FORMULATE PROTOTYPE SYSTEM MODIFICATION OF GLUTEN NETWORK Reducer Oxidizer

55 STEP 3 FORMULATE PROTOTYPE SYSTEM CLEAN LABEL MODIFICATION OF GLUTEN NETWORK Enzymes create these connections Enzymes chop up gluten Enzymes chop up hemicellulose

56 STEP 3 FORMULATE PROTOTYPE SYSTEM CASE STUDY: Optimizing Clean Label Sub Roll BEFORE AFTER

57 STEP 3 FORMULATE PROTOTYPE SYSTEM 3 primary areas of functionality 1) Gluten structure modification 2) Starch structure modification 3) Air and oil droplet stabilization

58 STEP 3 FORMULATE PROTOTYPE SYSTEM 3 primary areas of functionality 1) Gluten structure modification 2) Starch structure modification -SSL, DATEM, mono-glycerides 3) Air and oil droplet stabilization

59 STEP 3 FORMULATE PROTOTYPE SYSTEM STARCH NETWORK Starches composed of amylose & amylopectin;

60 STEP 3 FORMULATE PROTOTYPE SYSTEM STARCH RETROGRADATION CONTRIBUTES TO STALING

61 STEP 3 FORMULATE PROTOTYPE SYSTEM EMULSIFIERS INTERFERE WITH RETROGRADATION L L L L L L L L L L L L L L L L L L L L L L L L L

62 STEP 3 FORMULATE PROTOTYPE SYSTEM CLEAN LABEL ENZYMES CREATE STARCH FRAGMENTS & INTERFERE WITH RETROGRADATION / \ / / / / / / / / / / / \ \ \ \ \ / / / / / / / \ \ \ \ \ \ \

63 STEP 3 FORMULATE PROTOTYPE SYSTEM CASE STUDY: Improving Pan Bread Shelf Life with Enzymes 0 days 10 days 20 days 30 days

64 STEP 3 FORMULATE PROTOTYPE SYSTEM 3 primary areas of functionality 1) Gluten structure modification 2) Starch structure modification 3) Air and Oil Droplet Stabilization - mono-glycerides, PGMEs

65 CLEAN LABEL FORMULATING INGREDIENT TOOL BO MD AMYLASE PROTEASE ENZYME SYSTEMS LIPIDS SPECIAL SUGARS OIDASE HEMI-CELLULASE LIPASE PROTEIN SALT STARCH SPECIALTY SYSTEMS CALCIUM GUMS SUGAR FLOUR Commodity Ingredients (via customer supply chain) YEAST

66 CLEAN LABEL FORMULATION PROCESS 1) Define Basic Formula Requirements & Key Product Attributes 2) Characterize Process time, temperature, shear, hold 3) Formulate Prototype System enzyme, starch, sugars, etc 4) Perform Initial Lab Evaluation in Application 5) Optimize Ingredient System enzyme type & level, starch type & level, etc. 6) Validate Application in Lab 7) Scale-Up Validation 8) Optimize Final System

67 CLEAN UP YOUR LABEL CHANGE YOUR LABEL FROM THIS Wheat flour, water, sugar, yeast, soybean oil, salt, sodium stearoyl lactylate, diacetyl tartaric acid esters of mono and di glycerides (DATEM), azodicarbonamide (ADA), potassium iodate, l-cysteine. TO A LABEL LIKE THIS Wheat flour, water, sugar, yeast, soybean oil, salt, inactive yeast, ascorbic acid, enzymes.

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