Food Business News - August 22, 2017 - 44
Enhancing dairy's health halo Clean label takes a different, yet somewhat parallel spin in the dairy department. After all, fluid milk is a local-farm sourced product. But what about the sourcing of the other ingredients that go into dairy foods such as cheese, ice cream and yogurt? That is why for Arla Foods Inc., Basking Ridge, N.J., the meaning of clean label also goes beyond the ingredients list. "It's not only about having ingredients a shopper can recognize, it's also about knowing where those ingredients come from, if the company you're buying from actually is the producer and how that company goes about its business," said Don Stohrer, head of U.S. operations for Arla. "Is it done responsibly, sustainably and in an environmentally friendly manner? Those are questions the consumer is asking these days. Quite simply, we at Arla believe people have a right to know what's in their food and how it is produced." Arla is a Denmark-based dairy 44 Food Business News cooperative started in the 1880s. It is owned by 12,500 farmers across Europe and a network of partner farmers in the United States. "We've always had a steadfast business philosophy that has remained true through the myriad consumer eating trends and fads, the rise of food industrialization, seismic shifts in the retail and food industries and the 'good for you/ bad for you' nutrition 'wars,'" Mr. Stohrer Arla-branded products started appearing in supermarket dairy aisles, its sliced cheese business has shown significant growth and consumer adoption, as it is up more than 200% compared to a year ago. Fortunately for the dairy industry, clean label formulations are one of its strengths. For example, Daisy Brand, Dallas, markets both full-fat and light sour cream that is made with only For Arla Foods, the meaning of clean label goes beyond the ingredient list and extends to traceability. ARLA FOODS INC. relationship to the farmers who grew the ingredients, the team members who made it and the partners who made it possible." Juice labels state "cold pressed in the Midwest with local produce." You won't find organic or non-G.M.O. claims on Here's products. The attributes are important to the company, but it's the local qualities that are most important. "In order for food to scale, we need to create demand for more product, and that demand has to be there 365 days a year," said Nate Laurell, c.e.o. of Here. "By using Midwestern fruits and vegetables from Illinois, Indiana and Michigan in a retail capacity year-round, this line of products will allow us to reach thousands more stores than by just selling seasonal produce alone. It seems so simple, and yet it's something that has not been done. This is a footprint we plan to replicate over the next five years in markets around the country, and we hope to impact other local growing regions on a national scale. Ultimately, we want real food grown everywhere for everyone." It is Mr. Laurell's belief that by using local produce to create retail products, the business model will solve a problem that has plagued the local food industry. It will create a longer shelf life, which will in turn allow Here to purchase a much larger quantity of product from Midwestern farms. It is a win/win scenario for all involved. said. "Simply, Arla's mission is to produce and provide the best quality dairy products in the world, free from any artificial flavors or preservatives, all while promoting sustainable dairy farming practices and strict animal welfare standards. "Consumers today are farther away than ever from how and where their food is produced, so there's an increasing demand for more transparent food practices and simpler foods. And because of how far away society has gotten from the source of our food, there's a lot of confusion out there today." Arla is trying to provide the consumer with useful information to help them make an informed decision when purchasing products. The company has always followed the philosophy of "the simpler, the better." That is demonstrated in the company's simple ingredients cream cheese. "We set out to invigorate a product category historically controlled by a single brand," Mr. Stohrer said. "Our short ingredient list - the cream, milk, salt and cheese culture - has struck a chord with consumers looking for simple, great-tasting alternatives. In fact, according to retailer data, Arla cream cheese purchases are 20% incremental to the overall cream cheese category, adding fresh new growth to a previously stagnant part of the dairy aisle." In the less than two years since cultured cream and milk or cream. Its cottage cheese has one additional ingredient: salt. Products carry the tagline: "Better Ingredients. That's the Daisy difference." "Dairy consumers generally have an opinion that milk and products made from milk, are clean, simple, pure, fresh from the farm," said Cindy Sorensen, vice-president-business development, Midwest Dairy Association, St. Paul, Minn. Clean label and animal welfare The same is mostly true for the meat and poultry department. But there, because shoppers are purchasing the actual animal, clean label includes transparency in sourcing and the farm's practices. Packages of meat and poultry - uncooked and prepared - increasingly are featuring claims associated with the animal's diet and welfare. Processors are working with farmers and ranchers to understand their operations and communicate this to consumers on product packaging and web sites. Pasture One, Petaluma, Calif., markets grass-fed and finished beef from cattle not administered antibiotics or hormones. In addition to conveying this on package labels, the company provides "ranch of origin" information, which identifies the specific ranch where the August 22, 2017