The fast-evolving plantbased, alternative meat and dairy products in foodservice

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The fast-evolving plantbased, alternative meat and dairy products in foodservice
The fast-evolving plant-
based, alternative meat
and dairy products in
foodservice
Maria Tolchinsky, MBA
Senior Marketing Manager, Global Plant Based Proteins
Karen Constanza
Marketing Manager, Meat & Meat Alternatives

August 25, 2021
The fast-evolving plantbased, alternative meat and dairy products in foodservice
Topics
                                                                        • Market trends driving plant-based eating

                                                                        • Plant-based on restaurant menus

                                                                        • Challenges and formulating for the plant-based
                                                                          future

                                                                        • Q&A

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The fast-evolving plantbased, alternative meat and dairy products in foodservice
About Ingredion

© 2021 by Ingredion Incorporated. All rights reserved. | CONFIDENTIAL
The fast-evolving plantbased, alternative meat and dairy products in foodservice
HOW WE HELP
                                       Aligned with food and beverage consumer trends and how those trends are
                                                                 impacting foodservice

                                                                                                                                                Convenience
    Clean & Simple                                           Health & Nutrition         Sensory Experience             Affordability            & Performance
• Create menus with only                                    • Reduce or remove          • Make your menu           • Benefit from recipe    • Meet the need for more
  natural and familiar                                        sugar from menus            memorable with crispy,     savings                  convenient foods and
  ingredients                                               • Improve nutrition with      crunchy, creamy, or                                 beverages
                                                                                                                   • Reduce manufacturing
• Offer free-from, organic                                    added protein or fiber      sweet textures                                    • Achieve processing
                                                                                                                     costs
  and non-GMO options                                                                   • Keep foods                                          stability or extended
                                                                                          looking fresh                                       shelf life

4
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The fast-evolving plantbased, alternative meat and dairy products in foodservice
WE TURN PLANT MATERIALS INTO
                                                                           VALUE ADDED INGREDIENT
                                                                                 SOLUTIONS
                                                                                To meet today’s foodservice needs.

                                                                            NATURE-BASED RAW MATERIALS

                                                                        Corn Tapioca Potato Stevia Rice Pulses Others

                                                                                     MORE THAN 1,000
                                                                                      INGREDIENTS

                                                                              Starches Fruit & Vegetable Products
                                                                               Sweeteners Pulse proteins Others

                                                                                   CRAFTED SOLUTIONS

                                                                                 Science-based problem solving

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                                                                                                                        5
The fast-evolving plantbased, alternative meat and dairy products in foodservice
Fast-track your product development
                with customized co-creation via
                CATALYST™ program

                How the CATALYST program works for you:

                                                    Tailor development plan
                                                    Based on upfront dialog and your project brief, we develop a proposal to
                                                    deliver on your targets

                                                    Formulate your solution
                                                    Collaborative effort of cross-functional team including you and our eco-
                                                    system partners to develop, test and refine your end-formula

                                                    Support you thought launch and scale-up
                                                    Full support from process troubleshooting to identifying sourcing and
                                                    manufacturing partners for the end-product

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The fast-evolving plantbased, alternative meat and dairy products in foodservice
We are your insights
                                                                        partner
                                                                        Our proprietary insights studies include
                                                                        consumer insights programs which offer bi-
                                                                        annual consumer data to support your
                                                                        business, including:

                                                                        • Global or region specific insights

                                                                        • Food and beverage purchasing behavior

                                                                        • Attitudes and usage studies

                                                                        • Claims and benefits driving purchase

                                                                        • Ingredient acceptability and potential

                                                                        • White space and opportunities
© 2021 by Ingredion Incorporated. All rights reserved. | CONFIDENTIAL
The fast-evolving plantbased, alternative meat and dairy products in foodservice
Plant-based protein trends and insights

© 2021 by Ingredion Incorporated. All rights reserved. | CONFIDENTIAL
The fast-evolving plantbased, alternative meat and dairy products in foodservice
More protein, please:
             Consumer demand continues to grow
            How important to you are each of the following
            things when buying a food or beverage?2

                    Added protein                                        High protein
                                                                                                 60%                   65%
                                                                                 80%
                                      67%                               69%
                 57%
                                                                                         of global consumers
                                                                                          chose plant based      of U.S. consumers are
                                                                                              when buying          looking for good
                                                                                          alternatives to meat      source of plant
                                                                                              and/or dairy1            protein2
                    2017                2020                             2017     2020
                    Total of “very important” to “quite important”

            Source:
            1. Innova Health & Nutrition Survey 2020, global
            2. ATLAS, Ingredion proprietary consumer research, U.S., 2021
© 2021 by Ingredion Incorporated. All rights reserved. | CONFIDENTIAL
The fast-evolving plantbased, alternative meat and dairy products in foodservice
COVID-19 impact on plant-based proteins

                                                                                                             8 in 10 consumers changed
                                                                                                             their eating habits due to COVID-191

                                                     49% of consumers                                 30% of consumers
                                                                                                                                                         18% of consumers
                                                     felt the COVID-19                                   report eating
                                                                                                                                                            report eating
                                                           pandemic                                   more protein from
                                                                                                                                                             more plant
                                                        increased the                                    plant sources
                                                                                                                                                           alternatives to
                                                       need for healthy                                since the start of
                                                                                                                                                            animal meat1
                                                     food in their diet.2                                 COVID-191

                                                                        Source: 1. International Food Information Council’s (IFIC) 2020 Food and Health Survey, June 2020
                                                                                                     2. Ingredion Proprietary Research, 2021
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Rising mainstream appeal for plant-based

                    “For what reasons would you consider
                          plant-based alternatives?”

                    IT IS HEALTHIER                                           53%                                                                       “Which claim do you prefer
                                                                                                                                                        when buying alternatives to
                                                                                                                                                           meat and/or dairy?”
               IT BRINGS VARIETY
                   TO MY DIET                                                 35%
                                                                                                                                                                             Plant-
                                                                                                                          Vegetarian                              Vegan
                  IT IS BETTER FOR                                                                                                                                           based
                    THE PLANET                                                32%
                                                                                                                        6 out of 10 global respondents chose plant-based
                IT TASTES BETTER                                              19%

                                                                                  Sources: Innova Database, Innova Consumer Survey 2019 & 2020
                                                                        (average of UK, US, Spain, France, Brazil, India, Germany, Mexico, China and Indonesia)
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Sustainability and animal welfare claims
             drive purchase decisions

                         Sustainability or                                     Animal welfare                     Regionally
                       environmental claims                                       claims                           sourced

                                                   23%                                 22%                             #2

                   of North American shoppers are                           of North American shoppers are    “Sourced regionally”
                    buying more packaged foods or                           buying more packaged foods or    was second highest priority
                   beverages with sustainability or                         beverages with animal welfare      for consumers reading
                 environmental claims than last year                             claims than last year            ingredient decks

             Source: ATLAS, Ingredion proprietary consumer research, 2021
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Benefits of plant-based ingredients

                                                                                                                                                                                                                Local supply
           Lower greenhouse gases                                                      Less water                                                     Lower energy
                                                                                                                                                                                                            Crops are typically
         A meal with pulse proteins                                     Pulse proteins require 100X                                    To produce pulse proteins, it                                        sourced from within
         and/or flours is associated                                     less water to produce than                                   takes 4-7X less energy than to                                           a few hundred
         with 8X lower greenhouse                                              animal proteins2                                        produce the same amount of                                              miles of our NA
         gas emissions than a beef-                                                                                                          animal proteins1                                                plant-based protein
                                                                          Pulse proteins and flours                                                                                                                 facilities,
                based meal1
                                                                              produced via dry                                                                                                            avoiding shipping across
                                                                        fractionation require no                                                                                                            the oceans saves the
                                                                         water to manufacture2                                                                                                              equivalent of sulfur
                                                                                                                                                                                                              produced by 250
              Sources:                                                                                                                                                                                          million cars*
              1. González, A. D., Frostell, B., & Carlsson-Kanyama, A. (2011). Protein efficiency per unit energy and per unit greenhouse gas emissions: Potential contribution of diet choices to climate
                  change mitigation. Food Policy, 36(5), 562–570. https://doi.org/10.1016/j.foodpol.2011.07.003
              2. 2. Schutyser, M. A. I., Pelgrom, P. J. M., van der Goot, A. J., & Boom, R. M. (2015). Dry fractionation for sustainable production of functional legume protein concentrates. Trends in Food
                  Science & Technology, 45(2), 327–335. https://doi.org/10.1016/j.tifs.2015.04.013

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                                                                                                                      *Estimated
Dairy and meat
                                                                          alternatives move
                                                                          mainstream
                                                                                  How often do you consume meat or
                                                                                    dairy alternatives? (U.S., 2019)

                                                                                  Meat alternatives                      Dairy alternatives

                                                                                    12% daily                             18% daily

                                                                                        19%                                    22%
                                                                                       weekly                                 weekly

14
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                                                                        Source: Innova Category Survey, North America 2019, Innova Trends Survey 2019
Plant based, trending at home                                                                                                              Consumers who eat vegetarian/vegan foods at least
                                                                                                                                                                       once a month
             and on menus                                                                                                                                          56%
                                                                                                                                                                                  Overall       18-34   35+
                                                                                                                                                                                                            57%
                                                                                                                                                                                                                    64%

                                                                                                                                                                                                                            54%
                                                                                                                                                      45%
                                                                                                                                                                                40%

             • Both at home and in restaurants,
               consumer consumption of vegan/                                                                                                                       Q4                                               Q4

               vegetarian has increased since last year                                                                                                            2019                                             2020

             • Younger consumers more likely to
                                                                                                                                                          Consumers who order vegan/vegetarian food at
               consume vegan/ vegetarian                                                                                                                        foodservice at least once a month
                                                                                                                                                                                      Overall      18-34      35+
             • Consumers prefer to try vegan/
                                                                                                                                                                                                                     78%
               vegetarian options in restaurants                                                                                                         57%
                                                                                                                                                                      73%                                     69%           65%
                                                                                                                                                                                  49%

                                                                                                                                                                      Q4                                              Q4
                                                                                                                                                                     2019                                            2020
                                                                        *Base: 1,500 consumers ages 18+
                                                                        *Q: How often do you typically consume the following foods, either at home or at a restaurant or other foodservice establishment?
                                                                        **Base: varies based on those who eat vegetarian/vegan dishes
                                                                        **Q: How often do you typically purchase the following foods from any type of restaurant or foodservice location?
© 2021 by Ingredion Incorporated. All rights reserved. | CONFIDENTIAL   Source: Technomic online survey
How have plant-based items on restaurant
                  menus worked out?

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US QSR plant-based protein servings per year

                QSR plant-based servings have grown 7% as a result of new plant-based offerings (2014-2019)

                                                                               Total annual servings (000)
                               350,000

                               300,000

                               250,000

                               200,000                                                                                                                    COVID-19
                               150,000                                                                                                                      global
                                                                                                                                                          pandemic
                               100,000

                                 50,000

                                         0
                                                         2014           2015             2016               2017                2018        2019            2020
                                              Burger King                      Chick-fil-A                         Chipotle Mexican Grill     Domino's
                                              McDonald's                       Panda Express                       Panera Bread               Pizza Hut
                                              Starbucks                        Subway                              Taco Bell                  Wendy's

                                                                                 Source: US CREST consumer monthly report, 2014-2020
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The future of plant-based offerings

                                             Plant-based proteins                                                                    47% of consumers
                                             will grow nearly 35%                                                                   want more variety in
                                             on menus by the end                                                                     plant-based meats2
                                                    of 20221

                                                                        Source: 1. Technomic Ignite menu data; 2. Innova Database
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Plant Based Protein Analogs                                              | Menu Adoption Cycle | Jan 2021

                                                                                                                                 crumbles             pm sausage             am sausage

                                                                                                                                 bacon

                                                                                                                         patty                                                    burger

                                                                                                                                       nugget              hot dog

                                                                                                                                 chorizo            chicken

                                                                                roast            strip

                                                                         wing           loaf                  turkey

                                       egg              lamb                                           meatball

 pork                                                                             deli slice              pepperoni

ham               steak                seafood                                                 jerky

                           inception                                                      adoption                                 proliferation                           ubiquity
               fine dining, mixology, earliest stage                            trendy restaurants + specialty grocers    chain restaurants + mainstream grocery     find it just about anywhere
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New plant-based offerings

                       Plant-based                                      Plant-based                                    Spicy black         Plant-based
                     nuggets & wings                                    taco filling                                   bean burger           hot dog

                                                                        Source: Trendhunter.com; Restaurant Business Online; AltMeat.net
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New plant-based offerings

                          Coconut milk                                  Plant-based cheese                                 Oat milk    Oat milk
                          for iced lattes                                 topped sliders                                   offerings   soft serve

                                                                             Source: Food Business News; Trendhunter.com
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Promoting plant-based on a menu

                                                      Make flavor & texture                                Price
                                                      the primary message                               competitively

                                                         Integrate with other                           Emphasize the
                                                          dishes on the menu                            protein content

                                                                          Source: Good Food Institute
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What are the challenges associated with
                  adding plant-based items?

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Formulation challenges with meat alternatives

                                                                        Matching animal meat protein challenges
                                                            Consumer demands                           Manufacturing challenges
                                                                      Flavor
                                                                                                          Gel texture and cohesiveness
                                                                   Mouthfeel
                                                                                                       Reduced stickiness during processing
                                                                     Juiciness
                                                                                                                 Water holding
                                                             Textural bite and chew
                                                                                                              Fat releasing/lubricity
                                                                  Nutritional
                                                                                                                 Fat appearance
                                                         Clean label/short ingredient list
                                                                                                              Freeze/thaw stability
                                                                  Color/visual

                                                               Both consumer demands and manufacturing challenges must be
                                                                addressed together to create market-accepted, innovative products.
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                                                                                                                                              24
Formulation challenges with dairy alternatives

                                              Challenges of formulating protein-enhanced plant-based dairy alternatives
                                                              Consumer demands                    Manufacturing challenges
                                                             Taste                                              Flavor
                                                     Nutritional content                         Balancing nutrition and functionality
                                                  Mouthfeel and creaminess                              Texture and viscosity
                                              Functionality and shelf life stability               Processing and shelf life stability
                                      Clean and simple labels with a short ingredient list                Label declaration

                                          Both consumer demands and manufacturing challenges must be addressed together to create
                                          market-accepted, innovative products, and Ingredion has the right on-trend, plant-based,
                                                      allergen-free portfolio of ingredients to solve those challenges.

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Movement away from major allergens

                                                                                                Plant-based protein claims1

                                                                                                             Soy & wheat free
                                             Soy free +32%                                                                                                         Wheat free +25%
                                                                                                                  +105%

                                      Soy-free plant-based                                                                                             Gluten-free plant-based protein
                                      protein movement2                                                                                                          movement2

                                                                         Chemical         Isoflavone
                  GMO                                                   concerns/         chemistry                                                                                            Weight
                                         Allergenicity                                                                                                Allergenicity         Dietary choice
                 presence                                                 hexane          likened to                                                                                         management
                                                                        processing         estrogen

                                                                         Sources: 1. SPINS Natural Enhanced Channel and SPINS Conventional Multi Outlet (powered by IRI), 52 Weeks
                                                                                             Ending 1-24-2021 2. Various 2018 customer meetings and symposia;
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You need the right ingredient
                                                                            solutions to solve these challenges…

                                                                            Challenge                                 What ingredients are needed?

                                                                            Texture/bite, chewiness and protein
                                                                                                                      Textured plant-based protein
                                                                            content

                                                                            Protein content, browning, color &
                                                                                                                      Plant-based proteins
                                                                            flavor development

                                                                            Binding, structure, cohesiveness,
                                                                                                                      Starches
                                                                            freeze-thaw stability and water holding

                                                                            Mouthfeel, juiciness, freeze/thaw
                                                                                                                      Hydrocolloids
                                                                            stability & yield

                                                                            Deliver/mimic color of meat products      Fruit or vegetable-based coloring

27
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                       Incorporated.  rights  reserved.
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Plant-based seafood patty
           Create a plant-based seafood patty that provides the texture &
           tenderness of a traditional seafood patty.

          Ingredients                                                          %
           Water                                                            54.00
           Textured pea protein                                         22.00
           Texture & stabilizing food system                                 5.0
           Pea protein isolate                                               2.0
           Coconut oil                                                       12.0
           Yeast extract                                                      1.0
           Salt                                                               1.0
           Old bay seasoning                                                  1.0
           Lemon juice concentrate                                            0.8
           Dehydrated minced onion                                           0.71
           Dehydrated minced garlic                                          0.47
           Black pepper                                                      0.02
          Total                                                         100.00

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Managing your supply chain

                                                         Reliability of supply

                                                         Consistent quality

                                                         Sustainability – carbon footprint

                                                         Minimize ingredient complexity

                                                         Communicate with your suppliers to understand potential
                                                         supply challenges

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Product development

                                                                               Developing your own product
                                                                               • Point of differentiation
                                                                               • Novelty may drive consumers to trial products
                                                                               • More up-front product development time

                                              Developing a co-branded product
                                              • Common introduction method for QSR
                                              • Trust & familiarity may drive initial trials
                                              • Reliance on brand/manufacturer

                                                                                  Source: Good Food Institute
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Setting plant-based items up for success

                                                 Chefs & food                                                                                                    Front-of-house
                                               preparation staff                                                                                                      staff
                                    • Train on how to                                                                                                 • Encourage trial of new plant-
                                      cook/prepare plant-based                                                                                          based menu items
                                      menu items                                                                                                      • Provide talking point to help
                                    • Provide proper tools,                                                                                             promote plant-based menu
                                      equipment & ingredients                                                                                           items

                                                                        Source: Playbook for Guiding Diners Toward Plant-Rich Dishes in Food Service, World Resources Institute
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What does the future hold for plant-based
                  dairy & meat?

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Gen Z & plant-based

                           19%                                                 85%
                             Love it                                           Know it

                           64%                                                 21%
                              Have                                             Had many
                             tried it                                           times

                                                       Source: Datassentials
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What’s next

                                                                                            New offerings for plant-
                                        Plant-based seafood             Plant-based eggs
                                                                                               based breakfast

                                             Full plant-based           Price parity with        Animal-free
                                                 concepts                 meat & dairy           meat & dairy

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The future is plant-based
                                                                        • Interest in plant-based meat & dairy continues to grow

                                                                        • Foodservice provides an opportunity for consumers to
                                                                          experiment with new plant-based items

                                                                        • Formulating for plant-based items requires knowhow and
                                                                          expertise

                                                                        • To keep up with the fast-evolving plant-based market,
                                                                          leverage partners that can help get you to the consumers
                                                                          faster

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Questions?

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