Food Business News - August 16, 2011 - (Page 46)

New Product Trends Adding W hile interest in ethically produced and sourced foods is increasing, consumers are not necessarily willing to pay a price premium for the products, said Lynn Dornblaser, director of CPG Trend Insight at Mintel, Chicago. “Companies are always looking for ways to stay attached to the consumers who buy their products,” Ms. Dornblaser said. “One of the ways to do that … is to have products that are ethically responsible, whether it’s good for the environment or fair treatment of animals or fair treatment of humans.” To this end, the Great Atlantic & Pacific Tea Co., Montvale, N.J., recently introduced its Mid-Atlantic Country Farms line of locally raised chicken, turkey and beef products, while ethical value promotes its ethical animal al practices. Even though interest is increasing for such products in the United States, the demand is much more established in Europe. Ms. Dornblaser said part of the reason is because the r U.S. consumer has a poor e understanding of where the ut food supply comes from. But ng she said she sees this changing rd with the movement toward he eating more local foods. With the trend comes an increased use of s, third-party certification logos, es which she said many companies nd are using as they seek to lend credibility to their claims. ne This summer the Humane ed Society of the U.S. and the United Egg Producers announced an agreement to work together for new legislation for all 280 million Cadb Cadbury chocolate bars in the Unite Kingdom are Fair Trade, United and she said she wouldn’t be su surprised if this eventually h happens in the United S States. “As the market gets inc creasingly competitive and as companies are looking for mo more ways to differentiate the themselves from their com competitors, I wouldn’t be surp surprised if environmental conc concerns aren’t one area many com companies look at to help gain and retain shoppers,” Ms. Dorn Dornblaser said. Ac According to Technomic, Chica Chicago, restaurants also are looking to offer ethical menu items with McCormick S & Schmick’s offering Fresh Catch Friday, Chipotle offering naturally raised beef and chicken, Macaroni Grill offering free-raised veal and Culver’s offering Midwest-raised beef. Both Ms. Dornblaser and Ron Paul, president and chief executive officer of Technomic, said kosher designations also convey ideas of ethical treatment of animals to consumers whether or not this is actually the case. Of all ethical claims in retail products, environmentally friendly packaging is the top claim with 2,894 such product introductions in 2010, up from 1,454 in 2009, according to Mintel’s Global New Products Database. Ms. Dornblaser said the increase in packaging claims mainly is due to companies marketing products better as opposed to major changes being made. There were 447 environmentally friendly new product claims in 2010, up from 262 in 2009. In the future, consumers may be willing to pay more for these products, she said. “Consumers are becoming much more aware of the wider world around them, and that helps them then find these issues important and justify an additional expense,” Ms. Dornblaser said. FBN around on a small farm when they hear these terms, and that’s not accurate. Overall, consumers Consumers prefer products that promote responsibility, but they don’t always want to pay more for them Austin, Texas-based Whole Foods Market announced the fresh beef, pork and chicken sold in its meat departments are now certified under a 5-Step Animal Welfare Rating system, a program of the Global Animal Partnership that includes provisions on how the animals are raised. In addition, Niman Ranch, Alameda, Calif., operates with the motto “Raised with Care,” and the company hens in U.S. egg production. The proposed legislation would require conventional cages to be replaced with a new housing system that provides double the amount of space currently allotted, require all egg-laying hens to be provided with environments that will allow them to express natural behaviors, prohibit withholding of water or feed for molting to extend the laying cycle, prohibit excessive ammonia levels in hen houses and make provisions for labeling products clearly based on how the animals are raised. Ms. Dornblaser said consumers don’t truly understand what free-range and cage-free mean. She said consumers often visualize animals roaming free are skeptical about what the terms actually mean. Ms. Dornblaser said Mintel polled consumers and asked if they would like and would be willing to pay slightly more for products with a reduced environmental impact, and only 18% responded yes. She said when consumers were asked if a product having a reduced environmental impact is important to them, at least 50% of consumers said yes — they just change their minds when it comes to paying a premium for it. Ms. Dornblaser said the Coca-Cola PlantBottle made by Coca-Cola Co., Atlanta, is a good example of a successful ethical product that doesn’t come at a price premium. In addition, all ALLISON GIBESON 46 FOODBUSINESS NEWS ® August 16, 2011

Table of Contents for the Digital Edition of Food Business News - August 16, 2011

Food Business News - August 16, 2011
Ralcorp to buy Sara Lee refrigerated dough business
Whey protein’s emerging mass appeal
Gluten-free labeling in the spotlight
Web Contents
Editorial - Search for insights in P.&G.’s farewell to food
Nestle profi t down in fi rst half of year
Sara Lee income up sharply in year
Pilgrim’s Pride’s second-quarter earnings plunge
Snyder’s-Lance swings to loss in quarter
Consumers taking active role in beverage trends
Cargill recalls 36 million lbs of ground turkey
Consumers more concerned with fat, calories than HFCS
Investment group partnering with Kettle Cuisine
Smart Balance purchases gluten-free food company
Sunsweet acquires Function Drinks
Kraft's big Split
Additional amicable separations
Ralcorp to buy Sara Lee refrigerated dough business
Ralcorp net down on impairment charge
F.D.A. warns Lazy Larry brownies are unsafe
Cott income climbs 19% in second quarter
Lower salad volumes contribute to loss at Chiquita
Restaurant Performance Index above 100 in June
Cost and taste remain barriers for functional foods
Sugar prices strong as supplies tighten
Gluten-free labeling in the spotlight
Health and wellness remains at the heart of oil innovations
Inside the guar gum bubble
Use hydrocolloids to save on costs
Dairy Business News
Conditions remain diffi cult for Dean Foods
Dean Foods suffers loss after litigation charge
Whey protein’s emerging mass appeal
Adding ethical value
Dannon adds Greek Oikos to portfolio
Caribou adds ‘Grown-up Grilled Cheese’ to menu
Beech-Nut to co-brand baby food with Mott’s
Earth’s Best expands Sesame Street line
Popchips introduces jalapeño variety
Kettle Brand launches reduced-fat chip line
Tropical fl avor line extends beyond familiar
SunOpta completes purchase of juice company
Spicetec names director of marketing
Carton protects fragile products
GPC hires scientist, sales representative
F.D.A. has no objection to krill oil’s GRAS status
Birko to buy maker of washing, pasteurizing systems
Ingredient Markets
Ad Index
Food Business in the News

Food Business News - August 16, 2011