November 22, 2002 Recent News
Consumers want exciting flavors
Hot times for tortillas and tortilla chips
Comfort eating versus comfort food
USDA earmarks $2.5 million to study obesity and nutrition issues
Oregon voters reject food-labeling measure
Keeping GM drugs out of the breakfast cereal
Cargill Dry Corn Ingredients £3.85 Million Masa Facility Up and Running
Consumers want exciting flavors
In the snack food category, as in other foods, consumers are looking for variety in flavors. Tastes vary both regionally across the US and globally by region and country. The global influences have led to new ethnic varieties, including salsa, Szechwan, teriyaki, jerk, curry and Cajun; and those and other new flavors have played a part in the healthy growth of such snacks as potato chips. In 2001, chip sales increased 7% to reach $6 billion, according to the Snack Food Association. A survey indicates that in the US, the most popular savory snack flavors, especially in chips, continue to be barbecue and sour cream and onion. There is a new trend in snack flavors to sweetness, with seasoning companies reporting increasing requests for customized sweet seasonings using cinnamon, chocolate or honey in combination with savory ones to enhance the sweet taste. Peanut flavors are also popular, and manufacturers are developing such flavors without peanuts to avoid peanut allergy concern. There are also new ways in which seasonings are applied to snacks, with most now being sprayed on the surface by using a mix of oil and seasoning or applied dry, with surface moisture from the snack acting as glue. Electrostatic application is also a new method by which the flavoring's electrical charge is changed, causing it to be attracted to the surface of the snack item.
(Snack Food & Wholesale Bakery 9/1/2002)
Hot times for tortillas and tortilla chips
This analysis of the US market for tortillas and tortilla chips draws on research from Information Resource Inc, Mintel and the Tortilla Industry Association (TIA), all of which show the market is on a growth curve. According to IRI, tortillas and tostada chip sales at supermarkets and mass merchandisers, except Wal-Mart, are nearly $2 billion, and growing by 3% in value and 1.4% in volume. Sales of frozen tortillas at supermarkets garnered $400 million and 7.6% growth, while refrigerated tortillas are growing at 3.8%. The TIA research shows the entire tortilla market was $4.4 billion in 2000, and is expected to reach $5.7 billion by the end of 2002. Tortilla consumption is likely to outpace combined consumption of all other types of ethnic and specialty bread products, based on TIA figures. Mintel data from 2001 shows tortilla chips with a 20% share of the total salty snack market. The growing US Hispanic population is a factor in the growing market, along with increased tortilla consumption by the general populace. Emerging trends in this market are the move toward all-natural and organic products and more intense flavors.
(Extracted from Baking & Snack, 9/1/2002)
Comfort eating versus comfort food
The expected trend toward "comfort food" has not led to a high demand for meatloaf or macaroni and cheese but instead, "comfort eating" has emerged as a trend. There has also been a blurring between supermarket and restaurant food. In the first six months following the attacks of September 11, restaurant traffic increased 2.4%, more than in any period since 1999. What people are looking for is an emphasis on the enjoyment of food and company, with tastes continuing to trend to new cuisines. Convenience and comfort foods are increasing in popularity at supermarkets, and shelf stable dinner kits. On the issue of food safety, NPD research group says that during the week of 9/11, 68% of respondents to a survey felt supermarkets were safe and 49% felt restaurants were safe. In an Oct. 31(2001) survey, the number peaked at 72% for supermarket safety and 54% for restaurant safety, the highest perception of food safety in recent years.
(Extracted from Brandweek, 9/9/2002)
USDA earmarks $2.5 million to study obesity and nutrition issues
The USDA plans to award $2.5 million to 12 organizations and universities to study the US obesity epidemic. Among the studies are one examining the relationship between dietary patterns based on food groups and weight at three stages of adolescence; one looking at trends between obesity and eating patterns and the relative strength of the associations for different food groups; and a project to document middle school students' consumption of meals from school lunch programs, snack bars and vending machines, weight status and lunch consumption of fat, calories and fruits and vegetables.
(Extracted from Food Chemical News Daily, 10/29/2002)
Oregon voters reject food-labeling measure
The anti-biotech lobby has been sent a blow by 79 % against to 21% for the proposed labeling of all foods made with genetically modified ingredients or processing aids. Had this measure passed there was concern similar proposals would follow in several other states. This was the first ballot initiative in the nation for GMO labeling. "Oregon voters soundly rejected biotech labeling by defeating this ballot initiative. We see no reason to believe that such an initiative would be more successful in other states, " said Tim Willard, a spokesman for the National Food Processors Association. Larry Bohlen of Friends of the Earth, an anti-biotech association, believes that the measure's authors may have over reached by creating a labeling measure so restrictive that it allowed the food industry to raise concerns that such labeling would significantly raise food prices. The FDA believes the requirement would "impermissibly interfere with manufacturers' ability to market their products on a nationwide basis."
(Des Moines Register 8 November 2002)
Keeping GM drugs out of the breakfast cereal
The biotech industry association BIO (Biotechnology Industry Organization) has announced that its members are barred from growing "biopharma" crops in the food growing areas of the Midwest farm belt and the Canadian prairie starting next year. BIO's rules for planting biopharma crops goes well past the proposed government regulations of 400m separation distances, two week delayed seeding and suggestions for identity preservation. Neither Canada nor the US has established regulations in place for growing biopharmed crops, even though several test plantings have been allowed. The growing of biopharmed crops could cut capital costs in the pharmaceutical industry by $20M, reducing production costs from $130/g to only $16/g. This may never happen because of the fear that has risen out of the StarLink debacle in which GM maize not intended for human consumption ended up on grocery shelves costing the manufacturer, Aventis and the farm industry millions of dollars. BIO is hoping that self-regulation of their industry will help to bring the potential of biopharming closer to reality.
(Farmers Weekly, 8 November 2002)
Cargill Dry Corn Ingredients £3.85 Million Masa Facility Up and Running
Cargill Dry Corn Ingredients £3.85 million state-of-the-art masa flour plant is officially up and running at its Seaforth site in Liverpool, UK, following a grand opening ceremony held on-site earlier today.
The new plant will provide European customers with masa flour, which is a prime ingredient in snack foods, particularly tortilla chips. With the new facility, Cargill Dry Corn Ingredients (Cargill DCI) is able to offer its customers the convenience of a UK supplier with the quality assurance capabilities of an internationally recognised food company, providing a product made from European corn.
While officially opening the facility, Rex Winter, president of Cargill's Dry Corn Ingredients business, commented: "This is good news for European masa flour customers. They will continue to benefit from Cargill's existing expertise in producing high quality masa flour with the advantage of having a European based supplier."
The project has been supported by the Northwest Development Agency (NWDA) with a £500,000 Regional Selective Assistance Grant (RSA). Construction began earlier this year, with the project being completed on time and within budget.
Bill Lee, commercial manager of Cargill DCI at Seaforth, noted that while masa flour traditionally has been imported from the US, increasing European Union demand for the product led Cargill to the decision to invest in its existing DCI facility in Liverpool.
Lee went on to say: "The new plant will be environmentally friendly as it utilises Cargill developed UK/US patented dry technology, which generates no liquid waste and yet produces a comparable, if not superior product to the traditional wet process."
Commenting on the project Peter Dobson, head of Regional Selective Assistance, NWDA said: "We are pleased to support this important initiative which will safeguard over 50 jobs on Merseyside. As a result of the grant, Cargill Plc has been able to diversify their product range, enabling them to continue to operate within the region which is excellent news for the local economy."
As well as NWDA assistance, the investment is supported by a grant from South Sefton Partnership. The assistance of the regeneration team of the Sefton Metropolitan Borough Council is also acknowledged.
(Cargill Press Release 14 November 2002, Cobham UK)
