WILL HISTORY REPEAT ITSELF? - Frozen Finger Food - Frozen Food Europe
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May/June 2020 - volume 32 issue 3 the magazine for the frozen food industry > Frozen Finger Food > Optical Sorting > Exclusive Interview - Karin Tischer > US Frozen Food WILL HISTORY LATEST TECHNOLOGIES FOOD TRENDS IN TIMES RETAIL UP, REPEAT ITSELF? MINIMIZE WASTE OF CRISIS FOODSERVICE DOWN
Content REGULARS 4 COMMENT Reaching Consumers Directly 6 NEWS News from Around the World 54 PRODUCT UPDATES Latest Innovations within the Industry MAY-JUNE 2020 VOLUME 32 ISSUE 3 FEATURES 42 TECHNOLOGY - FREEZING 8 FROZEN Spiraling Upwards BURGER MARKET The Plant-based 44 Revolution TECHNOLOGY – PROOFING, BAKING, COOLING 12 FROZEN Artisanal vs FINGER Processed FOOD Will History Repeat Itself? 46 COLD CHAIN & LOGISTICS COVID-19 and Its Impact 18 SNACKS AND PASTRIES on the Cold Chain Industry Preferences Vary Depending on Region 48 EXCLUSIVE 22 TRENDS IN INGREDIENTS INTERVIEW Focusing on Personalization Food Trends in Times of Crisis 28 INGREDIENTS & LABELING Europe Is Discussing Front of Pack Labeling 32 OPTICAL SORTING 52 US Latest Technologies Minimize Waste FROZEN FOOD Retail Up, Foodservice Down 36 FROZEN PIZZA Single-digit Growth 54 EXCLUSIVE INTERVIEW – GCCA CEO Expected “Industry Growth, Sustainability and Labor Are Priorities” 40 FROZEN FOOD IN ITALY 56 EXCLUSIVE INTERVIEW - SYNTEGON Increasing Innovation Is Expected Creating a Leaner Business Framework for to Drive the Market the Packaging Industry www.frozenfoodeurope.com 3
Comment By Dan Orehov, Managing Editor Managing Editor: DAN OREHOV dan.orehov@trade.media Advertising Sales Manager: ALEXANDRU JINGA alexandrujinga.pro@gmail.com Web & Digital Editor: BOGDAN ANGHELUTA bogdan.angheluta@trade.media Production Manager: MARIAN CILIBEANU production@trade.media REACHING Circulation Manager: SIMONA DUMITRESCU simona.dumitrescu@trade.media CONSUMERS Worldwide contributors: EUROMONITOR INTERNATIONAL LEATHERHEAD FOOD RESEARCH DIRECTLY MINTEL GROUP LTD JONATHAN THOMAS MARKETS AND MARKETS IGD DIETER MAILÄNDER (Germany) ANN MARIE FOLEY (Ireland) he direct to consumer (DTC) frozen foods business is in the early T Printing: stages of rapid growth. As many food types are becoming increasingly Sothis available on a direct to consumer basis, the share of total purchases allocated to frozen foods is higher in e-commerce than in brick and Published by: mortar sales. Frozen food is now one of the Top 10 items to purchase Trade Media Solutions when buying groceries online. According to various opinions, consumers currently favor frozen foods as they provide convenience and save time, while also being perceived as safer. They come packaged, branded, and sealed, meaning the Executive Director: consumer does not need to trust a delivery person or personal shopper to choose RALUCA MIHAELA CANESCU a quality item. raluca.canescu@trade.media Consumers have rapidly adopted to Managing Director: the time saving and variety expanding Studies have shown NICOLETA MARASESCU options enabled by technology. Next day delivery, once considered fast, has become a norm in many areas while ” that frozen foods are significant likely to see a fraction of nicoleta.marasescu@trade.media Publishing office: expectations for same day delivery are food ordered online 1 G-ral. David Praporgescu St., growing. Companies like FreshDirect for home delivery, it in 2nd floor, sector 2, Bucharest, and others have created expectations Romania the context of the Tel./fax: +40 21 315 90 31 about timely deliveries. COVID-19 pandemic. E-mail: office@mediatrade.ro Moreover, studies have shown that Web: www.frozenfoodeurope.com frozen foods are likely to see a significant fraction of food ordered online for home delivery. Taking all this into account and placing it in the context of the COVID-19 Distribution: Frozen Food Europe is a pandemic, it is obvious that this particular crisis has already created opportunities for bi-monthly controlled circulation magazine, mailed to major frozen food direct to consumer business growth. Many companies are prioritizing their buyers who operate in the retail, e-commerce sales, since a significant number of people are shopping online at this foodservice, catering and private label areas, and also major further processing point in time. The result is clear: those who are already present in the e-commerce buyers and institutional buyers around space are seeing a spike in sales, while companies who fail to adapt to the “new Europe. No part of this publication may be reproduced or transmitted in any normality” may not survive. Either way, one thing is certain: consumer behavior and form or by any means, electronic or shopping patterns have changed. mechanical, including photocopy, recording or any information, storage or Is your business prepared for the post-COVID-19 era? Feel free to send your retrieval system, without the publisher’s thoughts at dan.orehov@trade.media. written permission. ISSN 1473-3382 Stay safe! n 4 May/June 2020
News US Global NEW PRESIDENT AND CEO FOR GCCA BÜHLER GROUP The Global Cold Chain Alliance (GCCA) AND PREMIER announced that Matthew Ott, CAE, has been named the organization’s new TECH CREATE president & CEO. Ott succeeds outgoing President & CEO, Corey Rosenbusch who GLOBAL left the Association earlier this year to take the helm as President & CEO of The PARTNERSHIP Fertilizer Institute. “GCCA is a vibrant global association at the forefront of one of the The strategic cooperation between swiss of-the-art packaging solutions around the most critical industries in the world — the Bühler Group and Premier Tech from globe. Bühler will continue to service its perishable food supply chain,” Matthew Ott Canada, which started as a close existing installed base and will also focus said. “I look forward to working with the collaboration in August 2019, evolved on sales and service through its global staff and members on advancing the into a Joint Venture in China and customer service focus and total plant- organization and industry forward during ultimately grew to a global partnership solution expertise. this time of unprecedented change. for bulk packaging. This new partnership Bühler and Premier Tech have worked US will allow Bühler to access Premier closely together in the interest of forming Tech’s leading technologies in bagging a 50/50 joint venture in China, PT-Bühler, MCCAIN FOODS HALTS and palletizing either through the newly that will officially start on July 1, 2020. US PLANT EXPANSION created PT-Bühler joint venture in China, The aim of the joint venture is to As foodservice dropped is the US, frozen serving the world with cost-effective develop and market new cost-effective potato producer McCain Foods has put its packaging, or directly through Premier packaging solutions based on Premier expansion plans on pause. Last year, the Tech’s facilities for the high-end food feed Tech’s bagging expertise. Operating in Canadian company had announced its and grain markets worldwide. Wuxi, China, PT-Bühler will focus on intention to spend USD300m to expand its “The global partnership will serve serving the food and feed markets in Othello, Washington plant, which employs customers worldwide by building on China, and other markets moving over 450 workers and produces cca. 400m pounds of frozen products, started the Premier Tech’s recognized know-how in towards cost-effective automation. expansion in May 2019 and was expected the field of automated packaging “Customers will benefit from significantly to be completed in early 2021. The technologies while making full use of more efficient, and even more accurate company said it would review restarting Bühler’s strong international sales and and food safe packaging solutions thanks construction once safety measures are lifted service network,” André Noreau, CEO to automation technologies developed and business is back to normal. This move of Premier Tech’s Systems and by PT-Bühler,” Johannes Wick, CEO of was expected to follow a similar expansion Automation business said. Premier Tech Bühler’s Grains & Food business said. to its plant in Burley, Idaho. and Bühler are bringing their cooperation to new heights by offering adapted state- Global US & CANADA FROZEN FRUITS MARKET EXPECTED TO INCREASE NORTH AMERICAN The global frozen occurrences of COVID-19 at the global FROZEN BAKERY fruits market size level, is expected to expand the market MARKET TO GROW is expected to scope. In terms of product, tropical fruits The trend for frozen bakery products expand at a accounted for over 40% share of the among North Americans is becoming CAGR of 6,7% global revenue in 2019. The growing clearer each year. This product segment and reach popularity of tropical varieties, including is driving the regional food industry at a USD5.59bn by papaya, banana, and pineapple, as a key substantial rate. Currently, Americans 2027, according vitamin source among consumers, is and Canadians prefer baked ready-to- to a new report fueling the growth of the segment. eat products such as cakes, cookies, by Grand View Berries are expected to register a donuts, and snacks. Based on the data Research. As most international trade CAGR of 7.5% from 2020 to 2027, analyzed by Facts and Factors research has been affected by the pandemic, owing to the growing adoption of these company, the North America frozen consumers are expected to increasingly products in the formulation of various bakery products market in 2019 is over spend on the purchase of packaged beverages in developing countries, USD9.07bn and is anticipated to reach food items, such as frozen fruits. The including China and India. Online sales over USD12.96bn by 2026. The growing popularity of products with a will also play a pivotal role, with an projected CAGR for the North longer shelf life, including packaged fruits expected CAGR of 7.7% over the America frozen bakery products market and vegetables, as a result of increased forecast period. is around 5.2% from 2020 to 2026. 6 May/June 2020
Germany US AUTOMATION: THE BASIS OF BEYOND MEAT LAUNCHES BEYOND ANUGA FOODTEC 2021 BREAKFAST SAUSAGE The next Anuga FoodTec, one of the Plant-based meat company Beyond Meat most important international supplier showcased its latest product, Beyond trade fairs of the food and beverage Breakfast Sausage, a new plant-based breakfast sausage featuring 11 grams of industry, will take place March 23 — 26, protein per serving with 50% less total fat, 2021 in Cologne, Germany. With its two 35% less saturated fat and sodium and 33% new segments ‘Digitalization’ and fewer calories than a leading brand of pork ‘Automation’, Anuga FoodTec 2021 is sausage patties. The product is made without aiming to create a compact platform for GMOs, soy, gluten, or artificially produced two of the industry’s top themes and will ingredients. “Our Beyond Breakfast Sausage demonstrate how the digital platform delivers on our promise of enabling transformation can be implemented today technologies that make a significant consumers to Eat What You Love™ while and in the future. In accordance with the contribution across the entire value chain. advancing health, environmental, and animal high relevance of the topics within the Automation is present in many places but welfare benefits,” Ethan Brown, Beyond Meat industry, the event program of Anuga is by no means a fixed part of the food founder and CEO said. FoodTec 2021 also addresses themes and beverage industry in every business. US & CANADA that go hand in hand with digitalization Innovative automation systems are useful and automation. Among others, lectures hereby and in some cases applications GROWTH FOR THE on “Digital Factory”, “SmartTec 4Food” that are necessary for increasing revenue, SALMON MARKET and “Integrating existing machines” are improving productivity, minimizing safety Having reached a volume of 445,480 tons in planned (subject to changes), organizers risks, optimizing resource management, or 2019, the salmon market is expected to continue its moderate growth during the Koelnmesse say. minimizing error rates or improving the next five years, according to a new report by The complexity is increasing within the capacity of machines and systems. At IMARC Group. High per capita income, food and beverage industry, and the Anuga FoodTec 2021 many ‘Automation’ improved standards of living and awareness demands placed on the companies are ideas and solutions will be covered in about the health benefits of salmon are correspondingly high. It is, therefore, more breadth and depth that is hitherto increasing its consumption in North America. important than ever to find innovative unknown. Thanks to the digitalization, Moreover, owing to biological constraints and packing and sustainability solutions for a automated processes can be linked with seawater temperature requirements, farm- cost-saving, highly-frequented production each other. Accordingly, a multitude of raised Atlantic salmon is widely consumed in while at the same time meeting the companies, which supply the OEMs with the region. In addition to this, a long coastline consumer’s increased expectations in digitalization and automation solutions, and continual technological advancements in terms of variety. Automation and will be exhibiting in the ‘Digitalization’ the fishing industry are further creating a positive outlook for the market in the region. digitalization are here just two interlinked product segment. US US NESTLÉ LAUNCHES AHOLD DELHAIZE USA SIGNS PARTNERSHIP LIFE CUISINE Ahold Delhaize USA announced “We’re Nestlé USA is introducing Life Cuisine, Americold as its partner to build the extremely a new brand that features gluten-free two previously announced fully- proud of to high-protein meal solutions. It offers automated frozen warehouses. The this new 15 recipes. Consumers can choose new facilities are part of the company’s partnership from a variety of options offering a full previously announced supply chain with cup of vegetables, two or more transformation plan as it transitions to a Americold essential nutrients, high protein, high fully-integrated, self-distribution model. and the fiber and more. The company is also The plan will expand cold-storage space opportunity introducing new and improved meals by 24 million cubic feet, or 500,000 sqf, to fully from Lean Cuisine. More than half of by building the two frozen facilities in expand our the brand’s portfolio will be partnership with Americold. The cold- relaunched including new Lean Cuisine facilities will be located in Plainville, storage capacity as part of our current Bowls. At the same time, more than Connecticut, which will serve Ahold storage needs and future growth plans,” 50 offerings will feature renovated, Delhaize USA’s Northeast brands, and Chris Lewis, executive vice president, calorie-conscious recipes and will be in Mountville, Pennsylvania, which will Supply Chain for Retail Business released in updated packaging that serve Ahold Delhaize USA’s Mid- Services, the services company for highlight enhancements. Atlantic brands. Ahold Delhaize USA said. www.frozenfoodeurope.com 7
Frozen Burger Market By Dan Orehov PLANT-BASED PRODUCTS ON THE RISE According to research, some 95% of people producing plant-based meat products; this is further expected to boost sales who purchased a plant-based burger this year in the coming years. also ate meat, new data from market researcher NPD Group shows. This means that CATEGORIZING BY SOURCE AND TYPE the largest chunk of the target population for According to MarketsandMarkets the “meatless” burgers and similar products is researchers, by source, the plant-based made up of flexitarians, namely those who do meat market is segmented into soy, wheat, pea, and others (quinoa, oats, eat meat, albeit less frequently. beans, and seeds). Soy is widely used as ome 228 million servings of plant- consumers are demanding plant-based a base ingredient for plant-based pork, S based burgers were purchased at meat, either for medical reasons or as a beef, and chicken products, owing to its quick-service restaurants this year, healthy lifestyle. As a result, the demand high protein content and meat-like up 10% from a year ago. And for plant-based meat continues to texture. The growing health concerns while beef burgers are still the expand. Additionally, continuous efforts associated with the consumption of most popular burgers on menus, with in research & development by plant- animal protein-sourced foods and 6.4 billion ordered, growth is flat based meat manufacturers, in terms of adoption of flexitarian and vegetarian compared with a year ago, according to better aroma, texture, longer shelf life, diets are expected to drive the report. The substantial year-over- and better nutritious profiles is consumption of soy as a source in the year growth in plant-based burgers is projected to escalate the growth of global market. Impossible Foods offers due primarily to greater availability at global plant-based meat market in the soy-based burgers and is backed by a major fast-food chains including Burger coming years. Companies, both start- strong distribution network in the US. King QSR, +0.55% and White Castle. ups and established players are entering Pricing and ” The plant-based meat market is this high growth market owing to the availability of meat estimated to account for a value of growing preference for plant-based substitutes are two USD12.1bn in 2019 and is projected to diets among consumers at a global key factors that grow at a CAGR of 15.0% from 2019, level. Established food companies such to reach a value of USD 27.9bn by as Cargill (US) and Tyson Foods (US) currently hold back its 2025. An increasing number of have invested in start-ups that are penetration worldwide. 8 May/June 2020
In January 2019, the company launched Beyond Meat brand by the Lidl and an upgraded version of its burger, which Netto chains in spring 2019, which would have 30% less sodium and 40% helped keep meat alternatives in less saturated fat. The same research media headlines. In summer 2019, Lidl company says that by type, various also launched its private label range sausages, nuggets, strips, and burgers Next Level Meat and Aldi followed have chicken as their major meat with the launch of a new veggie ingredient. Chicken flesh and eggs are burger, Wonderburger. Retailers with loaded with animal protein, fats, and a more established presence in meat cholesterol. On the other hand, the substitutes, such as the organic protein content in plant-based meat supermarket food chain Alnatura and chicken products is about the same the health and beauty specialist chain while the other nutrients may vary. dm-drogerie markt, also continue Beyond Meat’s (US) plant-based burger promoting and widening their private includes ingredients such as pea protein label assortment. and canola oil. Impossible Food’s (US) Despite growing competition from patties contain soy protein and coconut new challengers, Rügenwalder Mühle’s oil to replicate the taste of chicken. position as a pioneer and as the largest meat substitute brand remains GERMANY LEADS undisputed, helped by strong brand A report by Euromonitor International awareness derived from its meat- shows that the meat substitutes industry based products and the brand’s appeal in Germany saw great turnaround in to flexitarians, backed by wide 2018 and 2019, as high-profile new distribution across major retail chains. product launches generated renewed The company also continued to interests from consumers and helped record strong growth through meat them return to the aisle. This follows a substitutes in 2019, thanks to new temporary halt in the sales growth recipes and by widening its range. impetus in 2017, when the previous Although growth rates for meat wave of new products had become more mature. Major brands successfully target flexitarians rather than vegetarians thanks to improving the taste and texture properties of their assortment in order to be increasingly close to meat equivalents, # 60% of US adults want more protein in their diets. which resulted in widening the industry’s customer base in Germany. substitutes are expected to slow down The Incredible Burger range under over the 2019-2024 period as the Nestlé’s Garden Gourmet brand was industry reaches a higher level of among the most high-profile recent maturity, it retains strong potential for launches. Nestlé extended the brand’s growth. As it should continue to be reach in the second half of 2019 by driven by new product innovations, introducing vegan minced meat. increased distribution, as well as by Another major recent entry was Iglo consumers’ interest in reducing their with the Veggie Love brand at the end meat intake for animal welfare and of 2018, which contributed to environmental reasons. The growing developing the nascent assortment of selection of meat substitutes at meat substitutes in the frozen aisle of foodservice outlets is also expected to grocery retailers. Alongside large contribute to the use of new recipes international companies, home-grown and subsequent adoption through start-ups such as LikeMeat are also retail channels. However, the future gaining exposure thanks to a widening growth of meat substitutes could also offering and by being listed at major depend on how rapidly new types of grocery retailers. LikeMeat has gained other high-protein food replacing popularity through its assortment of traditional fish and meat will become products replacing chicken, such as available and affordable. Notably vegetarian nuggets. insect-based products, but also lab- Retailers, especially discounter chains, grown meat, in case technological also played a key role in increasing the breakthroughs supported by vast publicity surrounding meat alternatives, investments makes the latter a notably through the launch of the commercially viable alternative. 10 May/June 2020
GLOBAL GROWTH Although growth rates for meat substitutes are ” Global market research company Euromonitor International unveiled new expected to slow down over the 2019-2024 period research about the impact of climate as the industry reaches a higher level of maturity, it concerns on dietary habits during the retains strong potential for growth. webinar, “The driving forces behind plant- report, and 60% of US adults want that ordering a plant-based burger at a based diets”. According to Euromonitor, more protein in their diets. fast-food restaurant isn’t necessarily 24% of the surveyed global consumers “Plant-based burgers allow consumers much healthier than eating a regular are trying to cut down their meat intake, to substitute without sacrifice. They get beef patty, especially if you order fries driving sales of global meat substitutes to the ‘burger’ experience while assuaging with it. When you factor in sodium, reach USD19.5bn in 2018. their need for more protein and social calories and fat content, plant-based “Meat intake is mostly reduced by concerns,” says Darren Seifer, NPD burgers mimic the nutritional profile of consumers trying to reinforce healthier food and beverage industry analyst. “US their meaty counterparts. eating habits and worrying about climate consumers have not given up on beef The demand for alternative protein is change. Growing attention to welfare burgers, but are willing to mix things up spawning food-cloning companies. for animals, farmers, societies and every now and then.” Technology at Boston-based company employees at large is also noticed The hype is hotter than ever as major Ginkgo Bioworks is being used in its among them.” says David Hedin, fast-food chains jump on the food startup Motif Ingredients to consultant at Euromonitor International. bandwagon. Burger King announced replicate the texture and taste of foods “According to Euromonitor earlier this year that it would take its like meatballs, chicken nuggets, cheese International’s Lifestyles survey 41.9 Impossible Whopper - made from soy and yogurt with alternative proteins. percent of respondents think climate protein, potato protein, coconut oil, The laboratory technology develops change will increasingly impact their life sunflower oil and heme, a molecule that ingredients that could be used in place in 2019-2024,” Hedin adds. makes the burger look and “bleed” like of dairy, eggs and meat using amino The US, Russia and the UK show the meat - national by year-end. Last month, acids, enzymes, vitamins and other highest increases in the share of California-based Tex-Mex chain Del ingredients through fermentation with consumers worrying about climate Taco sold two million of its meatless genetically engineered years and change. In India, Brazil and China, at tacos made with plant-based substitute bacteria for protein substitutes. Part of 77%, 72% and 66% of respondents, Beyond Meat two months after its the plant-based appeal is it entices respectively, most consumers try to launch, inspiring the chain to roll out consumers to cut out red-meat have a positive environmental impact meatless burritos. The consumer trend consumption. Studies have shown that through their everyday actions. toward meatless meals is making its way red meat is “not essential” for diets, and “Despite the global growth of meat into at-home kitchens, too. Beyond has been linked to health risks, as well substitutes sales and consumption, the Meat enthusiasm sent shares of meal-kit as environmental degradation. meat industry is still expected to grow at company Blue Apron soaring when the Nutritionists advise cutting out a faster rate by 2023. Pricing and latter announced it would add Beyond excessive amounts of meat and availability of meat substitutes are two Meat plant-based proteins to its menus replacing the protein source with plants key factors that currently hold back its beginning in August. Still, dietitians say like legumes, vegetables and nuts. n penetration worldwide,” explained Hedin. THE US MARKET While vegetarians and vegans are contributing to the growth in the plant-based market, they still make up a small, single-digit percentage of the US population and thus are not the main contributors to market growth, NPD food analysts note. Some 18% of the adult population is trying to incorporate more plant-based foods into their diets, according to the Major brands ” successfully target flexitarians rather than vegetarians thanks to improving the taste and texture properties of their assortment. www.frozenfoodeurope.com 11
Frozen Finger Food By Jonathan Thomas WILL convenient and suitable for such occasions. It now remains to be seen whether the rising number of meals eaten at home which has been largely enforced by the COVID-19 pandemic HISTORY is a trend which will continue once lockdowns are eased and foodservice outlets re-open. IN-HOME EATING REPEAT & ENTERTAINMENT The amount of meals eaten within the home has increased across Europe and the world in recent months, mainly because the spread of ITSELF? coronavirus has closed much of the foodservice industry. In the UK, for example, Kantar estimates that the number of in-home meals eaten in households during the lockdown Sales of frozen hen the global W period has increased by over 500 economic recession million per week. Separate data from finger foods may struck in the late the British Frozen Food Federation benefit from more 2000s, one of its more indicates that frozen foods may have people eating lasting effects was a been one of the main beneficiaries of rise in the number of people this trend. Total sales of frozen foods within the home. entertaining and socializing at home, in the UK rose by over 28% in both as consumer spending levels dropped. value and volume terms in the four This benefited various types of frozen weeks ending March 22 2020 foods such as finger foods and compared with the same period 12 appetizers, which are viewed as months earlier. Kantar estimates the 12 May/June 2020
With premises closed for in-store dining, many foodservice operators have been turning towards takeaway and food In the UK, Iceland With more people opting for this type of delivery services to maintain some ” represents one of the country’s leading suppliers of in-home entertainment, demand for frozen foods which can be eaten as an accompaniment may increase as a result. level of profitability. As a result, the global food delivery market has significantly increased its turnover since the effects of the pandemic began to frozen finger and party foods. THE FOODSERVICE be felt. In some instances, operators INDUSTRY have made efforts to limit contact to uplift in meal occasions featuring frozen Many leading manufacturers of frozen comply with safety directives — for potato products, for example, at around finger foods and appetizers count example, no-contact deliveries have 16 million meal occasions while most foodservice operators amongst their been adopted by companies such as foodservice outlets have remained shut. customers, in sectors such as Deliveroo, Just Eat and UberEats. Frozen products such as finger foods restaurants, pubs, bars and hotels. The It has been suggested by some trade could also potentially benefit from the global foodservice industry has been sources that, over the longer term, rapid growth in ‘streaming’ which has hit hard by the COVID-19 pandemic, consumers may gravitate towards occurred across much of the western with most outlets having been partially takeaway and food delivery options in world of late. Growth in demand for or totally closed across the world. This greater numbers, for reasons such as video on demand services was already has led to significant drop in demand lingering fears over coronavirus and being reported prior to the arrival of the for many types of frozen foods from reduced spending power in the event COVID-19 pandemic — however, with foodservice operators, with finger of an economic downturn. It is also people forced to stay indoors, consumers foods and appetizers believed to be anticipated that more companies such have been turning to the likes of Netflix no exception to the rule. However, as Deliveroo may place a greater and Amazon Prime in greater numbers. the situation is not entirely negative. focus on eating occasions other than 14 May/June 2020
One of the more interesting products supplied by ” Frostkrone is Lava Bites, which have a black coating resembling volcanic rock and contain red jalapenos and Cheddar cheese. dinner/evening meals — in the UK, for lockdown. Prior to the arrival of in the manufacture of deep-frozen example, lunchtime now accounts for coronavirus, consumers had been finger foods and snacks, which are over a quarter (27%) of food expressing a demand for a greater exported to markets in Western, takeaway occasions. At the time of range of flavors and formats as far as Central and Eastern Europe, as well writing, more restaurants and foods are concerned. The ongoing as to the US market. It operates a foodservice operators throughout the challenge for manufacturers and dedicated foodservice plant at Breda world are beginning the process of foodservice operators will be to in the Netherlands, which produces re-opening. On a positive note, there provide foods which offer novel tastes, around 15,000 tons of crunchy frozen appears to be evidence of pent-up as well as catering towards the desire finger foods per year. Its product demand amongst consumers — a for health and flexibility as far as eating portfolio can be broadly segmented survey of 4,000 people carried out by patterns are concerned. It has also into the following groups: Allegra Strategies in May 2020 found been suggested that local foods and • Meat — e.g. chicken pops, chicken that 42% of UK consumers missed ingredients will assume greater tikka masala bites and poultry visiting cafes and coffee shops during importance once the worst effects of teriyaki skewers; the lockdown period. This figure the coronavirus have passed. • Cheese — e.g. mozzarella sticks, compares with 29% for those missing Cream Cheese Jalapenos, restaurant visits and 19% for those MAJOR SUPPLIERS Camembert Bites, Chilli-Cheese who missed going to the pub. These One of Western Europe’s leading Nuggets and Cheesy Fries; represent the second, fourth and fifth manufacturers of frozen finger foods, • Vegetables — e.g. Sweet Potato ranked choices respectively from a list appetizers and other snacks is Pops, Potato Tots, onion rings and of 17 social activities and occasions Frostkrone of Germany. The vegetarian jalapenos; which have been largely prohibited company continues to increase its • Fruits — e.g. Apple Love Balls, during the lockdown period. A geographical footprint — in 2019, it Banana in Batter. separate survey carried out by Piper broadened its presence in the US One of the more interesting products Sandler at around the same time market with the acquisition of Rite supplied by Frostkrone is Lava Bites, found that 47% of people are Stuff Foods, a manufacturer of frozen which have a black coating resembling prepared to go to restaurants as soon potato snacks (e.g. filled potato skins volcanic rock and contain red as they open, although this was down and potato wedges) sold via retail jalapenos and a creamy Cheddar from 60% in April 2020. When the and foodservice channels. This was cheese. During 2019, it launched situation finally does ease, followed in February 2020 with the Pizza Pocket Breakfast (which manufacturers of frozen finger foods purchase of Innovate Foods, a contains scrambled egg, Cheddar are likely to find foodservice venues Scottish firm which manufactures such as pubs and restaurants profitable frozen finger foods and snacks for avenues for their products, assuming customers in the retail, wholesale and there is no large-scale reduction in foodservice sectors. Recent new consumer visits following the easing of product activity from Innovate has included the launch of Nacho Bites, green jalapenos filled with a nacho cheese sauce and wrapped in a crispy tortilla parcel. Frostkrone specializes # 47% of Brits are prepared to go to restaurants as soon as they open. www.frozenfoodeurope.com 15
Many leading ” manufacturers of frozen finger foods and appetizers count foodservice operators amongst their customers. eaten as appetizers. Typical examples when people are more inclined to include breaded cheese bites, host parties and informal eating cheese and sautéed potatoes) and battered vegetables, onion rings and occasions in their homes. However, Bärek, which is described as pastry various specialties — in the US market, many platter-style products have also sheets filled with spinach and cream for example, it manufactures battered been launched for the summer and feta cheese. hushpuppies (which draw on months when outdoor picnicking and One of Frostkrone’s leading southern-style cooking) and chicken parties are most in evidence. In the competitors in the European region eggrolls. In many instances, these UK, Iceland represents one of the and elsewhere is McCain Foods. cater towards the growing consumer country’s leading suppliers of frozen Although it is primarily known for demand for a greater variety of finger and party foods. Towards the frozen potato products such as snacks and light eating products in end of 2019, the retailer launched a French fries, it has broadened its foodservice establishments. Besides party food bundle costing GBP15, range in recent years to include foods McCain, many of Europe’s other which contained around 150 items — which are marketed as suitable for leading suppliers of frozen potato these included foods such as chicken informal sharing and/or social eating products manufacture appetizer-style goujons, filo prawns, spring rolls and occasions (e.g. parties and buffets), finger foods for customers in the mini beef pasties. Iceland’s range also both inside and outside the home. Its foodservice industry. Notable includes a variety of platters of frozen retail range includes a variety of examples include Lamb finger foods, most of which are based potato wedges (e.g. Lightly Spiced Weston/Meijer and Aviko — the around some type of cuisine or and Sweet Potato), as well as Crispy product ranges for these firms contain theme (e.g. Indian and crispy chicken). Dippers which, as their name finger foods such as breaded cheese Iceland’s rivals in the UK retail grocery suggests, are marketed as suitable for bites (e.g. chilli cheese nuggets, market are also active in this sector, eating with dips. In late 2019, mozzarella sticks and Swiss style selling finger foods and appetizers in McCain’s UK division launched Brew cheese wedges), as well as breaded both frozen and chilled formats. City, a range of frozen beer snacks vegetable products. Tesco, for example, offers a range of which had already been present in Many of Western Europe’s leading frozen party foods, examples of the US market for some time. grocery retailers have continued to which include a 25-piece Boneless Designed to be eaten with craft beer, grab a larger slice of the market for Chicken Selection, as well as products the Brew City range includes finger foods and appetizers. Much of such as onion bhajis, spring rolls, Brie products such as Cheesy Brew Bites, this has been done via the launch of Bites, Hot & Spicy Prawns and Nacho Onion Straws, Halloumi Fries and party food ranges, often in the form Chicken Bites. Similar products are Fiery Jalapeno Bottle Caps. of platters. Typically, these have been sold by the UK’s other leading For its foodservice customers, McCain introduced with specific times of the supermarkets, sometimes individually supplies a broader range of items, year in mind — Christmas and New and sometimes are part of some many of which are designed to be Year, for example, represents a time themed platter. n 16 May/June 2020
Snacks and Pastries By Dan Orehov PREFERENCES VARY DEPENDING ON REGION Preferences of popular sweet bakery products vary from region to region. While Asia Pacific, Australasia and North America prefer pastries, Eastern Europe, Latin America, the Middle East and Africa favor sweet biscuits. Yet, Western Europe is the only region where cakes are the most consumed sweet baked good. ccording to Euromonitor LESS SUGAR IS A TREND use of artificial sweeteners, which A International, the reasons for these different preferences are several factors including cost, tradition, and local taste. Although sweet biscuits are preferred by most of the world, pastries led sweet baked goods with global consumption The role of sugar in obesity and other diet-related diseases is being scrutinized to a huge degree, both on a scientific level and in the media as consumers pay greater attention to what sweetens their products. There are sugar-free sweet baked are used to create such products. Increased veganism and links between eggs and high cholesterol levels have seen increased demand for egg free sweet baked goods. Manufacturers can also benefit as this trend mitigates aforementioned price of 15 million tons in 2016. Asia Pacific is good products available, however volatility. Gluten free alternatives are by some distance the largest market for these tend to be targeted towards also growing rapidly in sweet bakery, sweet baked goods. The region is diabetics, rather than the general spurred on by an increasing number already the biggest consumer of pastries population, so are unlikely to be the of consumers who perceive such and sweet biscuits, and is forecast to be solution. Instead, manufacturers will products to be healthier for them, in cake consumption by 2021. On a take steps to reduce sugar in regardless of whether or not they country level, China is a major current mainstream products, suffer from coeliac disease. As such, consumer of all three sweet baked creating healthier products rather cakes have seen strong growth in goods variants and India is forecasting than a traditional one. However, gluten free options in recent years. strong growth. Use of cocoa derivatives consumer response to reduced The relative inability of health to remains unsaturated in these markets, sugar products tends to be muted, encroach on sweet bakery can be while in India, the goods and services with reduced sugar biscuits credited to consumers buying sweet tax should increase demand for recording a global volume CAGR of baked goods as treats, not for their premium products. -1%. This could be resistance to the health properties. Manufacturers 18 May/June 2020
There is growing consciousness among many ” consumers of the health issues linked to a high sugar and fat consumption, with this resulting in many cutting back on their consumption of cakes. and tea and coffee flavors are gaining seen as healthier, notably multi-grain prominence. Hybridization is also a bread, rye bread rolls and organic prominent trend in bakery and has variants. With a slight decline seen the rise of products such as the forecast over 2019-2024, cakes sales “cronut” and “duffin”, which are expected to remain vulnerable to originated in foodservice but are health trends. In particular, there is now being made available to the growing consciousness among many retail market. These incorporations consumers of the health issues linked and hybridization will lead to increase to a high sugar and fat consumption, consumption and multiple variables with this resulting in many cutting consumers can choose from. back on their consumption of cakes. In German frozen baked goods, the FROZEN BAKED GOODS leading player is Conditorei BOOSTED BY WIDENING Coppenrath & Wiese, with this AVAILABILITY company belonging to Oetker- Free-from diets continues to be a Gruppe. This player continued to should always look to increase the fast-growing trend, not only increase its share in 2019 and indulgence of sweet baked goods, followed by coeliac patients, but also benefits from a reputation for using whether through the use of new by the general health-conscious high quality ingredients and offering flavors, more premium ingredients or public holding the belief that gluten- products with a similar taste and creating completely new products. free products will help them mouth feel to fresh pastries. The Ultimately, indulgence will drive overcome problems related to share of artisanal baked goods sweet bakery growth, particularly in bloating or indigestion. In the bakery declined slightly in 2018 and 2019, developed markets. Overall, sweet aisles, the gluten-free trend is especially in cakes and pastries. A goods will remain popular moving beyond bread, to the likes greater focus on product variety and throughout all markets because many of cakes, pastries, biscuits, pasta and more sophisticated recipes offered consumers are willing to indulge. even breakfast cereals. by artisanal players proved Many sweet baked goods now As the strongest performing baked insufficient to fully offset the impact incorporate spicy and savory flavors, goods category, frozen baked goods of a long-term decline in the number In Germany, the share sales continue to be driven by an of bakeries. ” of artisanal baked increased availability in modern goods declines grocery retailers, with these outlets THE COVID-19 IMPACT typically increasing the shelf space IN THE US slightly in 2018 and dedicated to frozen products. Sales According to the US Consumer 2019, especially in cakes are also being boosted by growing Engagement Report drafted by the and pastries. demand for more premium products American Frozen Food Institute, www.frozenfoodeurope.com 19
seven in 10 frozen food shoppers In the bakery aisles, increased the amount of frozen food they have bought since the start of pandemic in the US Importantly, this share is unchanged ” the gluten-free trend is moving beyond bread, to the likes of at 70% among both frequent and cakes, pastries, biscuits, infrequent frozen food shoppers, pasta and even signaling elevated engagement breakfast cereals. among all frozen food shoppers. Three-quarters of frozen food 8, food sales took over starting the shoppers experienced out-of-stocks week of March 15. Frozen foods on frozen items they meant to quickly emerged as a growth purchase since the onset of leader, nearly doubling sales the coronavirus in the US This has week ending March 22 compared prompted many consumers to with the same week in 2019. The divert from the usual. More than weeks ending March 15 and 22 two-thirds of consumers have since were the two big panic buying purchased different frozen food weeks, but frozen food sales items or types and 72% have picked remained highly elevated going into up different brands than they usually the second week of April. purchase because of unavailability. A look at the sales during the four Across demographics, consumers weeks ending April 5 (over the have been buying more frozen height of the pandemic buying) and foods than during regular times as the building calendar year shows well as different items and brands. just how much frozen food sales Millennials, who already were above have changed. For the building average buyers of frozen food, are calendar year, all areas are up the most likely to have been double-digits, ranging from 11.8% purchasing more since early March. for dinners/entrees to 26.9% for Frozen foods are also clearly a processed chicken (nuggets). When solution for families, with 81% of looking at the four weeks ending households with children under the April 5, 2020 compared with the age of 18 living at home having similar four weeks in 2019, growth bought more frozen food since early rates are even higher, with triple- March versus 61% of households digit growth for frozen meat. Both without children living at home. In frozen pizza and potato items are the past few years, frozen food sales enjoying tremendous popularity as have seen significant growth - on well, as convenient solutions for par with center store edibles and far consumers preparing meals at outperforming the fresh perimeter. home. With more consumers Above-average interest among preparing home-cooked meals, Older Millennials combined with frozen entrees and meal ingredients high levels of innovation have driven have a big opportunity to be both dollar and volume sales growth timesaving, convenient solutions for for frozen foods. those consumers who do not have The arrival of coronavirus in the the skill, desire or time to prepare United States upended grocery meals from scratch. At the same shopping as we know it, and the time, it is important to note that all sales of frozen food items along consumption occasions are seeing a with it. While big gains were greater share of at-home versus measured for virtually all food away-from-home, including categories starting the second breakfast, snacks and lunch. week of March, frozen foods have Investing in being on the consumer emerged as a sales powerhouse radar as an immediate and back-up amid COVID-19 buying. Sales solution for all these consumption patterns during the first week of occasions among no less than 90% March 2020 were much in line of consumers and 93% of frozen- with the 2019 results. While non- food consumers who are preparing food sales, such as paper goods food at home more often is and household supplies, started important to optimize sales now gearing up the week ending March and in the future. n 20 May/June 2020
Trends in Ingredients By Dan Orehov FOCUSING ON PERSONALIZATION People increasingly want food and beverage products tailored to meet their individual preferences and nutritional needs. The challenge for the industry is finding large-scale ways to meet these demands. It poses difficult questions surrounding production and distribution. But brands which innovate to find the answers could find themselves at the forefront of a lucrative market. urging demand in the natural, free- consumers directly. Smart fridges are feelings associated with that also have S from, local and organic categories has many drivers. But collectively, they point towards an overarching trend: consumers are going cold on mass produced food and beverages. Many people are looking for an alternative to homogenous offerings and on the rise and drone delivery is soon expected to become a reality. Established players need to find ways to leverage technology and transform the way they operate. 2. Consumer attitude - consumer mood is increasingly curious, open- a part to play. It’s about considering wider factors such as provenance and buyer journey as well as sensory aspects at the point of consumption. Broadly speaking, food and beverage personalization is possible across product, packaging and proposition. LFR says in a want something that’s right for them. minded and experimental surrounding whitepaper that early efforts have largely Personalization is the logical next step on food and beverage products. New been linked to experiential marketing and the journey, according to Leatherhead eating habits and products presented cosmetic features, such as putting names Food Research (LFR). in new ways or formats are popular. and messages on bottles, jars, cakes and 3. Convenience and conscience - sweets. As the market matures, we’re DIFFERENT BUT people are more health conscious and going to see this progress towards a CONVERGING DIRECTIONS aware of issues such as environmental deeper level of personalization. “At According to LFR, there are four sustainability. But they’re also busy and Leatherhead, we believe personalized converging factors driving and look for convenience. Brands that offerings around sensory preferences and enabling this trend for the food and make it easy for consumers to achieve nutritional requirements represent a rich beverage sector: personal goals and ambitions are seam for innovation.“ This presents 1. New technologies - technology is onto a winner. business model and manufacturing disrupting the industry. New entrants 4. Experiential factors - the product challenges, for established players and are already using it to their advantage, is only one part of the equation. start-ups alike. Barriers for large for instance to connect with Overall consumer experience and businesses tend to be linked to the fact 22 May/June 2020
Leatherhead’s report suggests that this new model demands cohesive, cross- functional teams. Specialists need to work collaboratively to anticipate global trends and regulatory changes, seeking to overcome barriers to international growth. With experts in nutrition, science and regulatory affairs informing the innovation agenda, it will be strategically aligned with the shifting global landscape. “It is possible to unpick difficult challenges, such as boosting consumer trust while that facilities are geared up for low-cost and regulatory matters surrounding public improving profitability — these don’t have mass-production, making it difficult to health and product labelling, the scope to be mutually exclusive goals,” Butcher accommodate tailored offerings. On the and scale of industry challenges calls for a continues. “However, decisive action flip-side, start-ups with a personalization- different approach to innovation. needs to be taken, and sooner rather led proposition need to find ways to Mark Butcher, commercial director at than later. It’s about creating the time and maintain this cost-effectively as they scale. Leatherhead, says food and beverage space for cross-functional teams to look These are complex matters. But as we organizations are finding that traditional at the bigger picture, investing in science see a convergence of technologies in linear approaches to innovation no and applying a global perspective to areas such as connectivity, big data, 3D longer deliver what they need. decision making early on in the printing and same-day delivery, they can “The sector is in the throes of a perfect innovation process.” be unraveled. It is a case of putting the storm - even three years ago nobody pieces together before anyone else does. could have predicted its ferocity,” Butcher CUTTING DOWN Leatherhead Food Research says in the explains. “Innovation is still vital, but it ON RED MEAT past 12 months, technical expertise in needs to be purposeful, focused and agile A recent survey of 999 adults in the UK nutrition, science and regulatory affairs enough to adapt to multiple evolving found that in the past 12 months, 74% of was increasingly used to shape food and demands. We predict that in the coming households have consciously reduced the beverage innovation at an earlier stage in months and years, the most successful amount of red meat they consume. the product development process. In its food and beverage brands will put Findings published by Science Group annual trends report, Leatherhead draws scientific, technical and regulatory company Leatherhead Food Research on insights from food and beverage expertise right at the heart of business reveal that 40% are eating ‘a bit less red organizations including large corporations growth, on an equal weighting with meat’ and 32% are ‘trying to swap red and start-ups as well as regulatory consumer, innovation and marketing meat for fish or chicken’. While only 14% authorities and associations connected to functions. Essentially, consumer and of households include vegetarians, more the industry. This year there has been a technical expertise will become the than a third (35%) have introduced one notable shift towards consumer and starting point of the development or more dedicated ‘vegetarian days’ per technical expertise driving innovation and process, ensuring new ideas satisfy week over the past year. The perception development, rather than simply market requirements and timelines.” that it’s healthier to eat less red meat was supporting or validating it. The organization believes this is a response to Sharing information about the product should be the complex and dynamic issues facing the sector. From consumer empowerment to sustainability concerns ” avoided before testing, so as not to interfere with the expectations of the tasters. 24 May/June 2020
the biggest driver of change across all age be considered in the decision-making groups, with more than half of respondents (55%) citing this. However, concern about the environmental impact of red meat production was also signi- # 55% of UK adults believe it process of buying food. Currently, aspects such as brand reputation, nutritional value of the product, sensory experience of the product with the ficant, especially in the 16-35 age group is healthier to eat less brand, the company’s relationship with where 51% highlighted this factor. When red meat. the environment and type of packaging, asked what had influenced their dietary for example, are very important for the changes, 37% of respondents mentioned interesting to see that, for younger adults, purchase decision in a way that was not that TV programs or documentaries had environmental concerns are just as observed 50 years ago. played a part. With the youngest important. As this trend gathers “One of the biggest challenges that segment (16-35), talking to friends and momentum, it raises lots of questions food formulators around the world face family or seeing information on social about the options for new meat-free is to make sensorially pleasant, media also played an important role for products. We expect to see a surge of nutritious and healthy products, 38% and 32% respectively. Cindy Beeren, innovation in this area, focusing on however, with not much appeal in operations director at Leatherhead, says everything from sensory aspects, such as terms of aroma, flavor, texture and the findings underline the rising interest in taste and texture, to the nutritional appearance,” BRF experts say. “And ‘flexitarian’ diets, where people enjoy profiling of food.” one of the most important steps in this meat occasionally but try to avoid eating mission is sensory analysis. Whether in it too often. She believes this is a lasting FOOD FORMULATION the formulation of new products or in trend that will shape the long-term future AND SENSORY ANALYSIS the substitution of ingredients in existing of the food industry. According to information by BRF formulas, this type of analysis is crucial “People are becoming more purposeful Ingredients, a company present in over to predict the attractiveness that the about food choices in the home, so 140 countries, there are many factors to food will have to its target audience. manufacturers and retailers are changing The sensory profile of Therefore, we will understand more ” their offering to meet evolving demands,” a product is extremely deeply the importance of sensory Beeren explains. “The message from important to define its analysis for the food industry, in Public Health England about reducing addition to knowing more deeply the acceptance consumption of red and processed meat methodologies used to make it seems to be taking hold. But it’s with consumers. happen,” they add.
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