Food Business News - March 22, 2016 - (Page 17)

Honest Tea is partnering with the fast-food chain Wendy's to offer its beverages in the food service channel. the total volume of U.S. organic food in 2015, and we're regularly seeing them put up gains of 20%-plus volume in a year's time. Big bets by Wal-Mart, Kroger, Target and others show there will need to be some strong differentiation in the natural channel if they are going to maintain a long-term strategic advantage." Food service is another area of growth, she said. In 2014, United Natural Foods, Inc., a distributor of natural, organic and specialty foods, posted a nearly 25% increase in its "other" division, which includes food service. As another example, Wendy's last year began serving Honest Tea organic beverages in its restaurants nationwide. The proliferation of organic in food service may help restaurant operators reach new consumers, she added. March 22, 2016 "Elevation Burger is a fantastic, organicfocused burger chain largely in the east that reports that its customer base is 60% female, which is interesting because Gallup says that 42% of fast-food diners are female," Ms. Jagiello said. "So this is drawing a new customer into that particular channel of the market." Another factor behind growth in the organic marketplace is what Ms. Jagiello called "vegetable magnetism." Contributing to the rise in plant-based foods and beverages are environmental issues, demand for clean labels, vegetarian and vegan lifestyles and allergen avoidance, she said. "Another point about vegetable magnetism is really about snacking and all the interesting trends we're seeing in vegetable snacks," Ms. Jagiello said. "Dehydrated and raw, chips of beet and Brussels sprouts. We're seeing a lot of interesting innovation in this space." The increasingly connected shopper is another force behind the burgeoning organic market. The number of shoppers who purchased organic on-line doubled in 2014 to 14%, Ms. Jagiello said. Innovative startups and leading technology companies now offer same-day grocery delivery in select markets, removing the barriers of inconvenience and time for many consumers, she added. "Grocery is the largest untapped e-commerce opportunity," Ms. Jagiello said. "It's the largest retail category in the U.S., and yet less than 1% of purchases occur on-line. This will continue to be a force in our industry." Social media has accelerated the life cycle of a trend. "Things hit the market and the consumer's mind quicker," she said. The fourth trend driving growth in organic is consumer desire for convenience. This has given rise to subscription meal box services featuring organic ingredients, such as Blue Apron and Purple Carrot, as well as increased attention to the packaged fresh options on the perimeter of the supermarket. "The perimeter is where we're seeing a lot of excitement and growth in the grocery store," Ms. Jagiello said. "Prepared foods, fresh raw juices, value-added fruits and vegetables of all kinds; last year I saw a report that said value-added organic vegetables have increased by 50% year-over-year in mainstream grocery." FBN TA 1 S E ANAHEIM, CALIF. - Going organic is not exactly cheap or easy for food and beverage manufacturers, but the size of the prize may be worth it. A panel of industry executives laid out the business case for transitioning to organic during a presentation at Natural Products Expo West, held March 10-13 in Anaheim. Growth of organic products is expected to continue to outpace total food sales in the year ahead and beyond, driven by four key factors, said Angela Jagiello, associate director of conference and product development for the Organic Trade Association, Washington. The first trend driving dynamic growth in organic is the expansion of organic products beyond the natural channel. "2014 marked the first year that conventional grocery sold 50% of organic food," Ms. Jagiello said. "Costco reportedly sold 10% of - Four trends driving growth in organic -¬ food service | | private ingredient manufacturing label b u l k| food | fin i s h i n g | bulk ingredient service 20 BL ISHED 0 FOR You deserve a salt partner that you can trust. SaltWorks® delivers the highest quality salt, the way you want it. Offering expert consultation, state-of-the-art production and full-service logistics, SaltWorks is the only salt supplier you will need. Guaranteed. 64)/HYHOFHUWLÀHGZLWKWKH highest rating of Excellent. Call our our salt experts today! Call today! 800-353-7258 ** 800-353-7258 www.s a BsUSINESS a l t .cNEWS om FeOOD 17 ®

Table of Contents for the Digital Edition of Food Business News - March 22, 2016

Food Business News - March 22, 2016
Chipotle continues to struggle
G.M.O. labeling: Back to the drawing board?
Dairy Business News - Picking the right fruits, nuts and seeds
Table of Contents
Web Contents
Editorial - Food industry faces challenges as obesity rate rises
General Mills invests in organic cottage cheese maker
Natural Products Expo West - When big companies buy small brands
Alexia Foods homes in on hot potato trends
What’s popping at Angie’s Boomchickapop
Four trends driving growth in organic
Kraft Heinz impressing investors
Wal-Mart revamping fresh food strategy
Target focused on the fundamentals of fresh
Science, safety and seaweed
Market Insight - Wheat, corn, soybeans: Which one will lead?
Flavor Trends - Beyond sriracha
Ingredient Innovations - Reducing the ‘ates’ in meat applications
New Food Products
Ingredient Market Trends - Millers forecast soft red winter wheat crop at 362 million bus
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - March 22, 2016