FoodStuff by Kevin Ryan
Ultra-Processed Foods: Why the food industry should be worried (but not for the reason you think)
Here is a link to my last newsletter, in case you missed it.
In this week’s issue:
Ultra-Processed Food: Nothing and everything
Conceptual Flavors: Marketing a feeling
Gut Reaction: My quick take on the best (and worst) in new launches
Interesting Trends: What’s popping up
Tidbits: The latest in food industry news, from the profound to the funny
Ultra-Processed Foods: The Beginning of Something Big
Malaysia-based NatureCare.Life has released a new line of snacks called Zero Cubes. The freeze-dried offerings combine fruits and vegetables (like durian and tiger nuts) with natural ingredients like cocoa to produce layered, crunchy snacks. Available via the company’s website.
Vancouver-based Oatme Superfoods is launching a freeze-dried Greek yogurt and fruit combo that can be used as a topper or an out of hand snack. The new snacks are available via the company’s website.
Philosopher Foods is launching a line of Gut Nuts, fermented, seasoned nuts that provide positive gut benefits. The current line contains both fermented almonds and cashews.
Franklin Farms has launched a kimchi condiment meant to be used as a topper for burgers, tacos and other meals. The kimchi is made of fermented cabbage, apple puree, green onion, carrots, gochugaru and spices. The new item will be launched at Price Chopper & Market stores in the northeast this month.
Natural nut company Karma has launched a line of nutrient-dense cookies based on cashews, dates and coconut. The non-GMO cookies contain no added sugar and are gluten free. Varieties include Toasted Coconut, Chocolate Chip and Cashew Date. Available at Thrive Market and Karma’s website.
So What?
You’ve likely heard a lot of buzz around the topic of ‘ultra-processed foods’ (UPFs) recently. The popular press has been busy publishing articles about how UPFs are causing everything from cancer and constipation to depression and immunity issues.
However, even with all the headlines, I don’t think UPFs pose a danger to the food industry. In its current form, UPFs are (as pundits say) a ‘nothingburger.’ Instead, the food industry should really be concerned about what happens because of UPFs, as I believe UPFs represent a catalyst that will alter the whole industry.
However, before we talk about how UPFs are going to perpetuate an industry-wide change, we need some level setting. ‘Ultra-processed foods’ is a term invented by Brazilian researchers in 2009 to describe foods that have been extensively changed from their original, natural state. According to the classification system invented by the researchers (i.e., Nova classification), there are four levels of food processing: unprocessed or minimally processed foods, processed ingredients, processed foods, and ultra-processed foods.
Now, you would think that there are very detailed and specific criteria for how a food moves from one of these four classifications to another, but you’d be wrong. While criteria exist (e.g., extent of change, nature of change, etc.), it’s much more intuitive and subjective than scientific. In fact, this is one of the biggest critiques of the UPF term and a reason why the committee that sets the standards for US nutrition labels (DGAC) is likely to dismiss its dangers (at least according to ‘leaked’ slides).
However, the reason I think UPFs are not going to take off is much simpler: marketing. Health trends need gurus and influencers to propel them and the current concept of UPFs is at odds with the modern health and wellness industry.
Protein powder? Ultra-processed food. Protein bar? Ultra-processed food. In fact, just about all the nutrient dense foods and beverages in today’s wellness pantheon are the pinnacle of UPF. No wellness influencer will take up the cause of a concept that puts them out of business.
But this is where the turn will happen. The Nova classification is insufficient in sorting ‘good’ UPFs from ‘bad’ UPFs. Therefore, I predict, we will see the health and wellness industry construct their own system, formally or informally. Instead of four, indiscriminate processing levels we might have a dual path , balanced classification that identifies some processing and additions as positives or negatives:
Is this the classification of the future? Unlikely, but I think something similar will come about. Brands and influencers will increasingly begin talking about ‘good processing’ or ‘natural processing methods’ (e.g., freeze-dried, fermented, sprouted, etc.) to distinguish ‘health-positive processing’ from processing done just for longer shelf-life or cost-saving. This processing language will get more and more refined in the coming years as brands look for ways to be both healthy as well as processed and convenient.
Conceptual Flavors
Mountain Dew (a PepsiCo brand) has launched several new beverages for summer. Their red, white and blue series contains Star Spangled Splash, Freedom Fusion, and Liberty Chill. Additionally, at select convenience stores, the brand is offering Mountain Dew Infinite Swirl.
Sparkling water brand Bubly (another PepsiCo brand) is launching their own summer patriotic line called Melted Ice Pop. The limited time offering is available in stores across the US.
UK-brand Barr soft drinks is offering a limited time Caribbean-themed drink called KA Karnival Twist. The drink has notes of coconut and lime. Available in two-liter and 500ml bottles.
Last month, Coca-Cola Africa launched Wozzaah Zero Sugar soda for Africa Day (May 25, 2024). The word ‘wozzaah’ means ‘come here’ in isiZulu and was developed to “embody the pulsating rhythm and dynamic energy of Africa.” The product is available for a limited time in Nigeria, Algeria, South Africa, and Morocco.
So What? This isn’t the first time that we’ve seen beverages being launched like this. Last year, we had Coca-Cola launch an AI-created drink called Y3000 and a K-Pop beverage called K-Wave. Why are beverage companies suddenly removing flavors in favor of enigmatic names?
I see it both as an extension and evolution of the mystery flavor trend we are still seeing in food (see PepsiCo’s Mystery Flavored Doritos). Instead of standard flavor names, these conceptual flavors do the following:
· Brand Differentiation: Anyone can make a sour cream and onion chip, but name it something like ‘Beach Vacation’ and suddenly you stick out on shelf
· Curiosity Driver: People get bored with the standard lineup and these titles spark interest. What will they taste like? Does the name match the flavor?
· Breaking Perceptions: People have preconceived notions about what certain flavors should taste like. Naming beverages or foods this way removes expectations and allows them to give you a chance.
· Emotional and Experiential Gateway: This is where we get evolution away from mystery flavors. Conceptual names can convey an emotion far better than standard flavor names. Plus, if named correctly, they set the consumer up for an experience as part of the overall brand messaging.
Of course, there is a real negative to conceptual naming too. Some consumers may dislike the ambiguity of these names, especially if they are budgeting. No one wants to waste money on a product where the deliverable is uncertain. Nevertheless, I see more conceptual naming on the horizon as brands see its power to intrigue consumers.
GUT REACTION
INTERESTING TRENDS
Nestle’s Carnation brand is launching a jalapeño flavored version of their evaporated milk. The limited-edition milk was created in collaboration with TikTok chef Tini Younger and is being marketed as a great addition to mac & cheese.
Trader Joes is launching new Angus C.B.P. Ground Beef Patties. The 1/3-pound patties are a blend of three different whole-muscle cuts of Angus beef. The patties contain meat from the cow's shoulders (Chuck), chest (Brisket), and rump (Picanha) –i.e., C.B.P. Available for a limited time.
So What? To me, this is the best type of innovation. It requires minimal or no change to production but punches above its weight in terms of the interest it draws from consumers. Adding jalapeño flavor to evaporated milk was likely not difficult for Nestle developers, but it creates TikTok buzz and informs new cooks that evaporated milk is the secret to great mac & cheese (it really is). The same with Trader Joe’s beef patties. Every grillmaster swears by their own ratio of beef (some are all chuck, others a mix of chuck and sirloin). This pre-mix informs would-be grillers of this trick and let’s them try the result (It could also be Trader Joe’s finding a smart way to navigate rising beef prices by mixing together low-cost cuts!).
Everyone suddenly has a GLP-1 (i.e., Ozempic-like drugs) support kit! Nutrisystem launched their GLP-1 kit that contains food, snacks and high protein shakes. Optavia launched their GLP-1 Nutrition Support Kit with a similar mix of products. Pure Protein and Biocare are launching protein shakes to help those using the new drugs.
So What? Are these types of ancillary products the future? Will GLP-1 drugs be the iPhone of weight management with a whole ecosystem of products surrounding it to sell add-ons? I’m not sure yet. However, for companies that have weight management at their core, NOT launching these types of products right now is likely non-negotiable.
TIDBITS
Cold Stone Creamery faces lawsuit over lack of real pistachios in their pistachio ice cream
Controversial summer camp idea: send your child to work at Chick-fil-A
If you ever had a fantasy where you were getting married and Mr. Peanut was walking you down the aisle, now is your chance to make it real
The Better Meat Co says they have reached price parity with their alt-meat production
Walmart to launch e-price labels in store
US consumers now spend more on Eating Out than Eating In
Chiquita has been found liable for funding a paramilitary group
Nestle enters fecal transplant space (yes, you read that right)
Pizza sales are stagnant
The story of the cartels (and anti-cartels) of Mexico’s avocado business
Dolly Parton now makes wines
DiGiorno ‘chaotic pies’ with Deadpool
Three things that DON’T cause cancer
Apple Cider Vinegar maker Bragg, with famous investors Katy Perry and Orlando Bloom, is reportedly up for sale
Amex buys reservation app Tock from Squarespace for $400M
Impressive and intriguing—Create a short video just by uploading a picture with this new AI system