Supermarket Perimeter - March 2023 - 8

sugar crashes, and offer
greater satiety, especially
in the cookie and pastry
categories.
The respondents
Mondelez: supply
chain getting
back to normal
While some of the
market forces that have
challenged food and
beverage processors
during the past 12
months may be easing,
the leaders of Mondelez
International see more
of the same in the
near future.
" As far as assumptions
go, we are planning for
another year of doubledigit
inflation with dollars
higher than in '22, " said
Luca Zaramella, chief
financial officer. " This
inflation is driven by the
continued elevated cost
in packaging, energy,
ingredients and labor.
These input costs are
also more pronounced in
Europe and some select
emerging markets.
" We also had favorable
coverage versus the
market in '22. And,
although spot rates have
been easing in many
cases, new hedges are
coming (in) at higher
levels than what was
incorporated in March of
last year. "
One bright spot
management sees is
improved supply chain
conditions.
" Our US supply chain
is gradually getting back
to normal after a long
period of suboptimal
customer service
triggered by the 2021
strike and the subsequent
8 - MARCH 2023
overall supply chain
volatility, " said Dirk Van de
Put, chairman and chief
executive officer. " We are
continuing to implement
appropriate incremental
price increases across
key markets, including
Europe. "
Indulgence
still reigns in
baked goods
Indulgence remains the
most important purchase
trigger for cake, pastry
and cookies, according
to a Cargill survey of
1,200 US consumers. The
respondents showed
interest in health as
well and said they were
willing to pay more for
indulgent items that are
healthier.
Fifty-four percent of
the respondents said
they choose bakery
products to satisfy
cravings, and 44% said
they purchased the items
as a reward.
When asked whether
ingredient lists,
nutritional information
or package claims
influenced their bakery
purchases, 42% said
ingredients were
influential, which was
followed by nutrition
scores at 39% and
specific product claims
at 28%. The biggest
unmet needs included
products that deliver
portion control, balance
taste and health, supply
energy boosts without
associated premium
indulgence in cakes as
being all natural, having
no artificial ingredients
and having traceable
ingredients. They
sought rich, creamy and
buttery textures. Leading
ingredients were cocoa
powder and butter.
" This research
gives us very specific
insights and will help us
deliver a more focused
innovation roadmap
for our customers, "
said Camiel van Beek,
bakery category leader
for Cargill's global
edible oil solutions
group. " With it, we can
help customers match
consumer preferences
around textures, claims
and ingredients by
application and even
daypart, then leverage
our ingredient and
application expertise
to develop products
that will resonate in the
marketplace. "
Industry has
work cut out
on sustainable
packaging
Many food and beverage
companies are unlikely
to meet their goals
around making their
plastic packaging more
sustainable by 2025,
according to a report
tracking progress on the
New Plastic Economy
Global Commitment.
Launched in 2018
by the Ellen MacArthur
supermarketperimeter.com
Foundation (EMF)
and the United
Nations Environment
Programme, the New
Plastic Economy Global
Commitment aims
to create a circular
economy for plastic, in
which it never becomes
waste or pollution. More
than 500 organizations
signed the pledge to
reduce their use of virgin
plastic and achieve 100%
reusable, recyclable or
compostable packaging
by 2025.
The progress report
found an overall increase
in virgin plastic back to
2018 levels across all
industries.
Several of the
world's largest food
and beverage makers
are using more plastic
packaging than when
they first signed the
commitment. The
Coca-Cola Co. upped
its use of virgin plastic
packaging by 3% in 2021
versus 2019, according to
the 2022 progress report.
PepsiCo, Inc. increased
its use by 5% while
Mars, Inc. increased its
use by 11%. The largest
increases came from
McCormick & Co., Inc.
(22%), Ferrara (32%) and
Mondelez International,
Inc. (44%).
Unilever saw the
largest reduction,
decreasing its use of
virgin plastic by 18%
in 2021 versus 2019
levels. Keurig Dr Pepper
reduced its use by 4%,
while Danone and Nestle
both reduced their
use of virgin plastic by
approximately 8%.
The EMF found
companies including
Mars, Kellogg Co. and
McCain Foods used less
reusable, recyclable or
compostable packaging
when compared to the
2021 progress report.
Danone and Keurig Dr
Pepper increased their
use of such packaging
by seven and eight
percentage points,
respectively.
" The latest findings
demonstrate the need to
urgently ramp up efforts, "
said Sander Defruyt, the
EMF's plastic initiative
lead. " Credible, ambitious
plans are needed from
businesses to scale reuse,
to deal with the issue of
flexible packaging and
to reduce the need for
single-use packaging. "
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