Givaudan expands in extracts, eyes the concept of “taste”

Givaudan expands in extracts, eyes the concept of “taste”: In March 2018, it emerged that Givaudan had entered into an agreement to acquire 40.6 percent of the shares of Naturex, the global leader in specialty plant-based natural ingredients. In September, Givaudan completed the acquisition of Naturex, following the implementation of a squeeze-out procedure and the delisting of Naturex shares. The deal valued the French-headquartered supplier at around €1.3 billion (US$1.61 billion), or a roughly 42 percent premium over its market capitalization, before it was announced at the beginning of the year. Leading global flavor house Givaudan, which marked its 250th anniversary in 2018, has evolved far beyond its roots to identify itself around the more holistic concept of “taste” rather than mere “flavor” alone.

IFF buys Frutarom in US$7.1bn deal

IFF buys Frutarom in US$7.1bn deal: In the most important supplier business deal of the year, International Flavors & Fragrances Inc. (IFF) agreed to acquire Israeli flavors and ingredients company Frutarom in a deal valued at approximately US$7.1 billion. By combining with Frutarom, IFF is seeking to accelerate its Vision 2020 strategy to create a global leader in natural taste, scent and nutrition, as 75 percent of Frutarom’s sales are natural. The deal follows a series of acquisitions from Frutarom throughout last year, marking significant growth for the flavors and fragrances specialists. The massive deal was already sealed in October 2018. In a detailed interview about the move, CEO Andreas Fibig, identified the broad base of small and medium-sized customers as a key benefit in acquiring Frutarom in a “transformational move” for the company.

Firmenich launches Natural and Clean Label platform

Firmenich launches Natural and Clean Label platform: In a move that also showed the flavor industry’s divergence to clean label extracts, Firmenich, the largest privately held flavor and fragrance company in the world, launched its Natural and Clean Label platform. The move was aimed at creating “great tasting, natural and traceable food and beverage experiences.” Combining its mastery of taste and naturals, with its world-class science and consumer understanding, Firmenich is focused on creating the most authentic flavors. Committed to full traceability, Firmenich is going far beyond today’s labeling requirements to provide its customers and their consumers with information they can understand and trust.

Doehler takes a majority stake in Nutrafood

Doehler takes a majority stake in Nutrafood: In one of its most significant business moves of the year, The Döhler Group acquired a majority stake in Nutrafood S.r.l. The moved marked a “milestone” toward achieving a leading position in the plant-based nutrition segment. Nutrafood's capabilities to provide nut products and other plant-based ingredients for food and beverages are to supplement the Döhler Group's portfolio of pulses, cereal bases and low-calorie bases, including veggie NFCs and coconut water. The move came just after Döhler and Passina reached an agreement on the acquisition of Concentra Europe BV (more commonly known in the industry under the “Passina” brand). Döhler will be the owner of Passina's Dutch and German subsidiaries, as Passina refocuses on its core passion fruit business.

Cargill invests in Puris amid pea protein surge

Cargill invests in Puris amid pea protein surge: 2018 was all about expansion in plant proteins. In 2017, 21 percent of all food & beverages launches tracked in the US with plant protein by Innova Market Insights featured pea protein. The ingredient still lags behind soy protein (61 percent), but it has been gaining ground and the gap in NPD is tightening. With this NPD background, in January 2018, PURIS, the largest North American producer of pea protein and Cargill signed a joint venture agreement to accelerate a new wave of “great tasting, sustainable and label-friendly plant-based foods.” In October, Roquette and Equinom, an innovative Israeli-based breeding technology company, had signed a partnership agreement for the development and sourcing of new pea varieties with a high-protein content. 

European drought particularly hits the potato starch sector

European drought particularly hits the potato starch sector: Europe experienced a dry spell and above-average seasonal temperatures, including numerous heat waves, in the summer of 2018. Some farmers referred to it as the “worst drought in recent history.” The Lithuanian government declared a state of emergency for the drought, while Latvia acknowledged it as a natural disaster of national scale. Norway, Ireland, and Denmark also imposed water restrictions. According to a market review of the wheat crop from Limagrain Céréales Ingrédients, quality of wheat was impacted. In September 2018, potato starch supplier Emsland warned of “dramatic” cost increase to raw materials because the European potato harvest will be at a historically low level this year. Avebe said it was also bracing itself for a “historically low potato harvest,” and the company decided to increase the advance payment for potatoes to €67 (US$77.74) a ton to mitigate the impact of extreme drought and high temperatures.

“The Adventurous Consumer” tipped as top trend for 2019

“The Adventurous Consumer” tipped as top trend for 2019: Targeting increasingly adventurous consumers, set on new discoveries and experiences, will be key to product development in the food and beverage industry in 2019, according to Innova Market Insights. “Discovery: The Adventurous Consumer” lead its list of the Top Ten Trends for 2019. The connected world has led consumers of all ages to become more knowledgeable of other cultures, contributing to 35 percent growth of a discovery claim in 2017 from 2016. 

Flavor trends: Overseas influences, plant goodness & indulgence as key drivers

Flavor trends: Overseas influences, plant goodness & indulgence as key drivers: Today’s connected world creates an opportunity for new ethnic flavors, street food inspired meals and the revival of culinary classics. Innova Market Insights has reported an average annual growth of 20 percent in food and beverage launches with global flavors (Global, 2013-2017), with growth in platforms such as chili, herb and floral flavors. With the plant-based trend still going strong, consumers are looking for innovative ways to take the benefits of plants into their daily lives. Meanwhile, innovation relying on decadent flavor application, from desserts to alcohol or flavors that evoke indulgence, will continue to grow and remain paramount in the industry. One area that is seeing an abundance of NPD is the soups & sauces category.

Disruptors in plant-based meats set the agenda

Disruptors in plant-based meats set the agenda: 2018 was marked by the mainstreaming of plant-based companies, with Californian disruptors shifting the agenda. In November 2018, Beyond Meat, Inc., the Californian innovator behind the plant-based Beyond Burger filed for a proposed initial public offering (IPO) of its common stock for an initial filing offering size of US$100 million. Beyond Meat has sold 25 million of its “Beyond Burgers” since 2016, according to the company. Plant-based meats were the key theme at SIAL 2018 in Paris in October 2018, where the meat hall at this year’s event was noteworthy for the sheer number of innovative meat alternatives on display to cater to both vegetarian and flexitarian consumers. More innovative meat brands than ever were present, including Beyond Burger, Vivera, The Meatless Farm Co. and The Vegetarian Butcher. It effectively shows how the meat cabinet is evolving into a protein cabinet.

No “one-size-fits-all” solution on clean label

No “one-size-fits-all” solution on clean label: Clean label has almost become a given in NPD. Innova Market Insights still reports 13 percent CAGR in food & beverage launches with a clean label claim (Global, 2013-2017). Products with this type of positioning accounted for 29 percent of global new food & beverage launches in 2017. This year, Kerry unveiled comprehensive clean label consumer research which defines five behavioral consumer segments, each with a unique outlook and opinion on clean label. The defined segments have different nutritional and functional need states, clean label requirements and purchase behaviors. According to the in-depth research, there are similarities in clean label opinions but no “one-size-fits-all” solution.

Massive growth in plant-based claims

Massive growth in plant-based claims: Plant-based innovation is flourishing. Growing consumer interest in health, sustainability and ethics are driving plant-derived ingredients and products into high popularity. Innova Market Insights reports that plant-based product claims increased by 62 percent globally (CAGR, 2013-2017) with growth occurring on platforms such as plant proteins, active botanicals, sweeteners, herbs and seasonings and coloring foodstuffs. The market researcher listed “The Plant Kingdom” as its number 2 trend for 2019, as the plant-based market shows no signs of slowing down.

Unilever debuts vegan Magnum ice cream

Unilever debuts vegan Magnum ice cream: Plant-based and reduced sugar ice creams containing alternative proteins are trending amid a rise in demand for healthier desserts. For example, Unilever’s Magnum brand launched two new vegan versions of its popular ice cream bars in Sweden and Finland last summer. The brand added Magnum Vegan Classic and Magnum Vegan Almond, which are European Vegetarian Union approved, to its existing product line. The ice cream bars are made from a pea protein base and covered in smooth dark chocolate. The product follows on from Unilever’s introduction of a Vegan Cornetto to several European markets in the last year. For Dominika Piasecka of The Vegan Society market growth in this space is not only driven by vegans and vegetarians but also by the huge number of meat and dairy reducers, the lactose intolerant, and those who simply enjoy vegan food. 

Trans fat bans take effect in the US and Canada

Trans fat bans take effect in the US and Canada: On June 18, 2018, long-awaited US regulation came into force concerning the complete removal of partially hydrogenated oils (PHOs). From that date, manufacturers had to ensure that their products no longer contain partially hydrogenated oils for uses that have not been otherwise authorized by the US Food & Drug Administration (FDA). There had been a significant transition period prior to implementation and there were few signs of a late reformulation rush. A similar ban came effect in Canada on September 15, 2018.

New EU acrylamide legislation comes into force

New EU acrylamide legislation comes into force: New European Union legislation came into force on April 11, 2018, concerning the amount of acrylamide in foods with “benchmark” levels being set for various products. Acrylamide forms naturally during high-temperature cooking and processing, such as frying, roasting and baking, particularly in potato-based and cereal-based products. It is not possible to eliminate acrylamide from foods, but actions can be taken to try and ensure that acrylamide levels are as low as reasonably achievable. The news is stimulating innovation in the ingredients sector. For example, in December 2018, Kerry signed a licensing agreement with Renaissance BioScience Corp to supply the latter’s Acryleast, a non-GMO acrylamide-reducing yeast enzyme. DSM launched PreventASe XR, an enzymatic solution that prevents the formation of acrylamide in high-pH applications such as corn chips, biscuits, and crackers. 

Popular grill flavors outlawed in EU

Popular grill flavors outlawed in EU: Two commonly used grill flavors [Grillin’ 5078 and Grillin’ CB-200SF] are no longer allowed in the EU as of April 22, 2018. Despite efforts from the supplier Red Arrow Products [a Kerry business since the end of 2015] for a last minute reprieve for the flavorings, it did not prove successful. Red Arrow has now launched a new grill flavor that is approved for use in the EU and that it says is identical in flavor characteristics to the legacy grill flavors. It will also continue to push for a reauthorization of the grill flavors impacted by the regulatory change. Symrise, which previously bought the raw material from Red Arrow, before selling it on in a blend for customers, launched a new solution called Grillicious that complies with the new laws.

Prop 65: Chemicals warning enters effect in California

Prop 65: Chemicals warning enters effect in California: August 30, 2018 marked the start of the full effect of Proposition 65 (Prop 65) in the State of California which requires companies to call out specific names of potentially harmful chemicals that have been included on the list and add a warning symbol on the product if they exceed acceptable levels. Prop 65 requires the State of California to maintain and update a list of chemicals known to the state to cause cancer or reproductive toxicity and has large-scale implications for products that need to carry a warning and warning symbol (an exclamation mark against a yellow background). Three of the blacklisted chemicals under Prop 65 include Furfuryl alcohol, 4-Methylimidazole (4-MEI) and acrylamide.

Allulose emerges as a credible sweetening alternative

Allulose emerges as a credible sweetening alternative: Allulose, which is positioned as a low-calorie sugar found in wheat and fruits such as figs and raisins, has 95 percent fewer calories than sucrose. The ingredient is trending. German start-up Savanna Ingredients GmbH is producing initial quantities of allulose monosaccharide which it positions as “real sugar without calories.” Ingredion has entered into a relationship with Matsutani, Japan’s leading producer of specialty ingredients. The company will manufacture ASTRAEA Allulose in Mexico and market it across the Americas.

GRAS green light on sugarcane-derived zero-calorie ingredient

GRAS green light on sugarcane-derived zero-calorie ingredient: Amid an environment where calls for reduced sugar formulations are intensifying, the ingredients sector is stepping up to the plate with a wave of innovation. In December 2018, Amyris received a successful GRAS notification from the US Food and Drug Administration (FDA) for its zero calorie sweetener. With this notification, the FDA has accepted the unanimous conclusion of a panel of food safety experts, announced on August 30, 2018, that Amyris’s zero calorie sweetener made from sugarcane is safe for use as a sweetener. The product is claimed to have “the highest level of purity available today, the best taste of any alternative sweetener, and is made from a sustainable production process using fermentation.” The FDA progress allows Amyris to begin commercially selling its new, natural, zero-calorie sweetener.

Brazzein as a new sweetener to watch

Brazzein as a new sweetener to watch: UK-based Magellan Life Sciences is scaling up their production of brazzein, through its patent-pending fermentation process. The company believes it will be the first to market the natural sweetener on a major scale. Using an FDA-approved microorganism strain and food-grade chemicals, Magellan Life Sciences has developed a unique process that promises commercial quantities of brazzein that are “identical to nature.” The company won an endorsement from Naturex at the recent Startup Innovation Challenge at HiE 2018 in Frankfurt. Magellan won €10,000 plus a three month business mentorship with the Naturex Ingenium Open Innovation team.

Blockchain thrives on traceability demands

Blockchain thrives on traceability demands: Hyped as a potentially game-changing pioneering innovation, blockchain technology is inspiring change and innovation in the global food and beverage industry. Although it’s still in the extremely early stages, blockchain technology offers the promise of disruption on a huge scale across multiple sectors including agri-food, retail and the ingredients business at large. Recent scares suggest that full traceability back to the exact location on the farm can also help through the use of new technology such as blockchain. Amid the background of E. coli food safety scares around lettuce, in September 2018, Walmart said it was lauding the benefits of tracking lettuce and spinach through the supply chain through the use of blockchain. Walmart and Sam’s Club are urging lettuce and spinach suppliers to contribute to a blockchain database that can quickly and efficiently identify contamination.