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Top industry news from farm to fork

02.17.2020

REPORT

93RD YEAR | NO. 3

WHAT'S INSIDE

Retail prescribes food as medicine page 2

Reducing sugar and sweetness in food page 4

The rise and fall of Fairway page 9

FDA approves peanut allergy drug page 13

Markets: Apples, Pecans, and Carrots page 18

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Time-Constrained Consumers Replace Meals with Healthy Snacks

By Lori Valigra

Millennials and Generation Z consumers trying to balance work with other activities, along with more singles in homes, are demographics driving a trend toward healthier snacking that is replacing full, sit-down meals, experts say.

Snacking is no longer an indulgence nor an activity to stave off boredom. It is no longer just associated with junk food. Increasingly, it is related to healthy and convenient eating of smaller amounts of food more frequently. Snackers want more nutritional, single-portion foods so they can graze on-the-go instead of sitting down to eat the traditional three big meals.

"What is changing is the way

people feel about snacking and

what a snack is," said Kantha

Shelke, PhD, senior lecturer at

Johns Hopkins University and

principal at Corvus Blue, a food

Photo: LuminaStock | Canva

science and research firm in Chicago. "Snacks used to be an optional extra. We

had a structured life with three meals. Snacking was to keep you going. Now we

don't have three square meals. We have grazing with four to six meals a day."

Snacks Take on Prominent Role Some $3.6 billion worth of snacks including granola bars, nuts and seeds, and dried meat were consumed in 2018, up from $3.29 billion in 2015, according to the Grand View Research of San Francisco.

That's some 386 billion in ready-to-eat snack foods in 2018, according to NPD Research of Port Washington, NY. While those snacks generally are eaten be-

See SNACKS page 3

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FOOD INSTITUTE REPORT | FEBRUARY 17, 2020

Retail Prescribes Food as Medicine

By Victoria Campisi

Grocery stores are for more than simply picking up groceries these days as consumers look to retailers for health-related resources and nutritional assistance.

Filling Food Prescriptions In April 2019, Giant revealed it was piloting a program called Produce Rx in a partnership with local nonprofit, DC Greens, to improve customers' access to healthy food.

serve," said Gordon Reid, president at Giant.

"Doctors and patients both need more tools to address food insecurity and diet-related chronic illness," commented Lauren Shweder Biel, executive director of DC Greens. "Through Produce Rx, our healthcare system can be a driver to get patients access to the healthy food that they want and need."

Through the program, customers who are Medicaid benefi-

Giant confirmed with The Food Institute on Feb. 11 that the Produce Rx program is going "very well" and has received positive shopper feedback. It hopes to bring the program to other locations in the future. Additionally, in March, Giant will be transitioning from the paper coupons used to receive produce to electronic $20 coupons to make the buying process easier.

The Kroger Co. is also piloting a program in Cincinnati area in which physicians can write food prescriptions that patients fill at a local store under the guidance of a Kroger Health professional, reported Supermarket News.

Photo: Pixfly | Canva

ciaries through AmeriHealth Caritas DC and who are currently experiencing a diet-related chronic illness can receive a prescription for fruits and vegetables from their healthcare provider and fill the prescriptions at a Giant pharmacy in Washington DC.

When filled, a Giant pharmacist provides the customer with a $20 coupon to purchase fresh fruits and vegetables from the produce department.

Under the pilot, a doctor makes dietary recommendations to patients with diabetes and directs them to a nutrition expert at a Kroger supermarket, according to Kroger Health registered dietitian Bridget Wojciak, RDN/LD. The written prescription serves as a referral to a dietitian who performs an evaluation, which Wojciak describes as a "total review." The dietitian then provides clear and easy-to-follow nutrition guidance and food suggestions to help a patient better manage the disease.

"Upon successful completion of this pilot, we have plans for rapid expansion, with a vision of filling more nutrition prescriptions than we do prescriptions for medication," said Wojciak.

"As a food retailer, we recognize the important role we can play in the access to healthy foods and health education, and the program is certainly a natural fit with our ongoing efforts to support the health needs of the communities we

Wojciak noted the food prescription concept is intended to ensure the primary care team has input into patients' diets. "When we say, `food is medicine,' we want to make clear that it very much still involves the holistic health care team

See MEDICINE page 5

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SNACKS (from page 1) tween meals, the instances of snack foods consumed with the main meal, or instead of it, increased by 8% since 2008, said NPD.

"Snacks are taking a more prominent role within meals," commented Darren Seifer, food and beverage industry analyst at NPD.

But the lines between what a traditional meal is and what a snack is are blurring with changing consumer trends toward eating smaller amounts of food more often.

"Is yogurt at breakfast time a meal or a snack?" asked Seifer.

David Walsh, VP of membership and communications at the Snack Food Association in Alexandria, VA, said Millennials in their late 20s to late 30s and Generation Z consumers in their early 20s are the two generations pushing the line between meals and snacks.

"About 92% of Millennials and Gen Z consumers replace one meal a week with a snack," said Walsh. "Almost all of them are snacking more often as well. And 7% of them eat only snacks."

a little more than once a day. That's up from snacking 410 times in 2008.

Those who snack earlier in the day generally eat healthier snacks, while in the evening they give way to indulgences.

"Consumers don't want a pure health play," he said. "They want dark chocolate-covered nuts that have protein. They

Highest-Growing Snacks (June 16, 2018 - June 16, 2019)

SOURCES: Snack Food Association | IRI

Snack

% Growth

U.S. Sales $

Pork rinds

24.30%

$ 340.0 million

Dried fruit chips

17.70%

$ 114.0 million

Apple chips

15.90%

$ 20.0 million

Other dried meat snacks

14.00%

$666.4 million

Dehydrated cheese snacks

11.00%

$ 1.8 billion

Other salty snacks

8.80%

$ 3.9 billion

On-the-Go Eating Driving the change in eating habits is the on-the-go lifestyle of those generations, which value portability and convenience.

Especially popular are healthy snacks that combine multiple types of foods in one package, such as a combination of cheese, fruits, and nuts. One of the highest-growing snack categories is pork rinds, whose sales rose 24.3% to $340 million in the U.S. in the 52 weeks ending June 14, 2019.

want to feel like they have indulged. We call it `sensible indulgence.'"

The average consumer still eats potato chips 76 times a year and cookies 57 times a year, according to Seifer.

"There's always going to be an emphasis on healthy foods," he said. "But what is considered healthy by consumers will change, like the low-fat trend, low carbohydrates, more protein, and functional foods like turmeric for inflammation."

"Those sales are being spurred by the preference for low Additionally, Dr. Shelke mentioned more big food brands

carbohydrates and protein driven by the keto and paleo di- are debuting with smaller versions of their meals, a trend

ets," said Walsh.

she calls "snackification."

Outstanding Foods recently introduced its own version of the popular snack with its better-for-you PigOut Pigless Pork Rinds. The rinds are baked and feature plant-based protein as well as seasoning to create a pork taste.

Other fast-growing snacks are apple chips, dried fruit chips, dried meat snacks like jerky, dehydrated cheese snacks, and salty snacks like veggie crisps and puffs with lentils. Walsh also mentioned new versions of products like tortilla chips flavored with chia or flax seeds are doing well.

`Sensible Indulgences' NPD's Seifer noted peak times for snacking are at 10 a.m. and 3 p.m., but snacking also is done after breakfast and after 8 p.m. The average person snacked 431 times in 2019,

"Companies are trying to make products so consumers don't feel guilty," she said. "Healthy snacks are here to stay."

Snacking for Kids Supermarkets, including Hannaford and Wegmans, are also joining the healthy snack trend with their own fresh foods.

Hannaford started selling Snack Pals healthy snacks for children in Aug. 2019. The aim was to make nutritional snacks that also are fun to eat like "ants on a log"--a combination of celery and peanut butter topped with raisins.

"There's a strong component of fruits and vegetables on a plate, but the snacks also are fun so the kids can have an emotional connection to them," said Sue Tiff, manager of

See SNACKS page 4

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FOOD INSTITUTE REPORT | FEBRUARY 17, 2020

SNACKS (from page 3) Hannaford's Healthy Living program. She is based in Scarborough, ME, the supermarket chain's headquarters. Hannaford has 182 supermarkets in Maine, Massachusetts, New York, New Hampshire, and Vermont, and is owned by Ahold Delhaize of The Netherlands.

"We worked with our internal business partners and our team of dieticians to create Snack Pals," said Tiff. Nineteen different packs were created by the 30-plus dieticians in 60 Hannaford stores. The Snack Pals are sold in all 182 Hannaford supermarkets.

While parents generally buy the packs for their young children, Tiff also notices adults picking up the Snack Pals for themselves.

"Snack Pals are designed to meet customer needs for freshness, convenience, and healthy options," she said. "Our youngest shoppers have fun with a very serious topic and that takes the burden off parents who often have to play the villain."

Tiff said the supermarket chain is still educating consumers about healthier choices for snacks, and sales are "exceeding expectations," though she would not give a specific sales amount.

Snack Pals trucks visited some of Hannaford's supermarkets in 2019, offering samples and games to incorporate fun into healthy eating. Hannaford plans to expand the visits in 2020 to more supermarkets and schools.

The supermarket is spreading the healthy snacks theme throughout its stores by offering baskets in the produce section where children can get free clementines, bananas, and apples.

Photo: Hannaford

The Snack Pals are primarily focused on fruits and vegetables, but some contain hummus that have protein.

Separately, Hannaford has a private brand, Nature's Promise, which it plans to expand as early as April with different sizes and assortments of foods, including protein bars.

ABOUT THE AUTHOR Valigra is a journalist based in Harrison, ME. Reach her at lvaligra@.

Reducing Sugar and Sweetness

By Victoria Campisi

Sugar reduction is a popular option for the three in five U.S. consumers who would rather cut back on sugar than consume artificial sweeteners, according to Innova Market Insights.

Manufacturers are taking note of this and sugar-related claims continue to grow, becoming more prominent on packaging. In the U.S., 8% of all new food and beverage launches tracked by Innova in 2018 featured a sugar reduction claim--with statements of no added sugar being the most popular, accounting for 42% of all sugar-related claims. These were followed by sugar-free and low sugar at 36% and 27% respectively.

in processing.

Benefits of Low-Sugar Diet Many adults consume much more sugar than authorities recommend. For example, The National Institutes of Health estimate that adults in the U.S. get around 15% of their calories from added sugars alone, reported Medical News Today.

Excessive sugar consumption is linked to several health conditions such as obesity, heart disease, type 2 diabetes, high blood pressure, chronic inflammation, and dental plaque and cavities. Decreasing the amount of sugar in the diet can help reduce risk of these health conditions.

Sugar is even the top item consumers look for on nutrition facts labels, according to The NPD Group. Effective Jan. 1, updated nutrition facts labels now include the sugars added

Sugar Taxes Sugar sweetened drinks are among the most significant sources of added sugars in the diet. These include soda,

See SUGAR page 6

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FOOD INSTITUTE REPORT | FEBRUARY 17, 2020

MEDICINE (from page 2) and it still involves primary care," she said. "We find that a lot of physicians give difficult-to-follow nutrition advice-- along the lines of `You should improve your diet' or `You should eat better.' And that becomes very difficult for a patient to understand and implement."

Kroger Health expects to extend the food prescriptions to other health conditions at more stores based on the results of the pilot. Other health conditions that could be addressed by the program include heart disease and cancer.

On a similar note, FarmboxRX partnered with Vibra Health to give free food boxes to elderly Medicare patients with diet and chronic-related illnesses, reported The Packer (Dec. 9, 2019). FarmboxRX is a healthcare initiative from Farmbox Direct that works with insurance companies to provide free access to fruit and vegetables to under-served populations.

The FarmboxRX partnership with the Vibra Health Plan rolled out in January, providing 2,700 free produce boxes a month to Vibra's Medicare-enrolled members. The program represents the first time a U.S. insurance company has attempted a complimentary food delivery program for its members.

over the next few years, the goal is to address and solve the underlying issue for people with diet-related chronic illnesses, which is as simple as changing their nutrition."

Dietitians on Staff Dietitians, such as Kroger's Wojciak, are increasingly becoming more common in retail.

Hy-Vee was a leader of adding dietitians on staff, reported Today's Dietitian. The company began by hiring one RD in 2005 and now offers other wellness services across its locations including health screenings, individual medical nutrition therapy, Begin Healthy Lifestyle and Weight Loss Program, community presentations, and even cooking classes.

During the summer of 2019, CVS announced it was pushing deeper into health by adding dietitians among other services to 1,500 stores over the next few years, reported MarketWatch. Its HealthHub stores will have about twice as much space devoted to healthcare as other locations and will aim to help people with chronic conditions like diabetes. The expansion came as rival Walgreens experimented with adding primary care offices.

The goal of the deliveries is to elevate healthcare, prevent repeated hospital stays, and reduce costs.

FarmboxRX signed up with two additional insurance providers and will expand into other states in 2021, planning to ship 250,000 boxes. "Our initial partnership with Vibra Health Plan will start a revolution in healthcare," said Ashley Tyrner, Farmbox Direct's CEO. "And as we expand our reach

"The ultimate goal is to bring more health services into people's communities where they can access them as part of their daily life," said Alan Lotvin, MD, EVP and chief transformation officer for CVS Health.

ABOUT THE AUTHOR Campisi is a writer at The Food Institute. Reach her at victoria.campisi@

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FOOD INSTITUTE REPORT | FEBRUARY 17, 2020

SUGAR (from page 4) specialty coffee, sweetened teas, and fruit juices. To combat this, some local authorities implemented taxes on beverages containing excess sugar.

In the U.S., Philadelphia enforced a soda tax in 2017 that came to 1.5 cents per ounce, equal to a $1 tax on a typical $1.56 two-liter bottle, reported MarketWatch (Jan. 12). The city included artificially sweetened diet sodas in the tax, while excluding sugary fruit juices.

the use of sweeteners, such as stevia, monk fruit, and thaumatin. Aramark predicts new sweeteners will be a big trend in 2020, like alternatives made from pomegranates and coconut.

Fermentation has recently become a popular method to reduce the use of sugar. For example, Symbiosis Food is swapping out processed ingredients with a low-calorie, gut-

friendly, fermented stevia.

Asian countries are also in various "People set out to reduce Symbiotic fermentation is a pat-

their sugar intake to be phases of sugar tax implementation,

which began in 2017, according to Ra-

ented technology that utilizes the natural process of plant fermenta-

bobank. The Philippines introduced

healthier."

tion using a symbiosis of yeasts and

a tax on sugar sweetened beverages

bacteria to create over 50 different

as part of a broader tax reform, while - Chantale Houle, Symbiosis Food fermented, natural plant-based infu-

Thailand began a phased sugar-tax program in 2017, with a condition for

creator, Kefiplant president.

sions (including the stevia leaf).

higher tax rates in the future.

"People set out to reduce their sugar

However, the success of taxes is still debatable as research from Stanford University found Philadelphians didn't cut calories or shift toward drinking healthier beverages. Instead, most drove outside the city to purchase the same sodas, minus the tax.

intake to be healthier," said Chantale Houle, Symbiosis Food creator and Kefiplant president. "Unfortunately, with most sugar substitutes you are swapping out an unhealthy amount of sugar with an unhealthy chemical substitute. Symbiosis Food utilizes a nutrient-rich, natural stevia so not only are you reducing sugar, but you're also

Reduction Strategies

adding health benefits. Plus, the fermentation process kills

Sugar reduction can be achieved in numerous ways, such the bitter aftertaste you would traditionally get with stevia."

as replacing part of the sugar formulation with non-nutritive

sweeteners, using innovative processing technologies, or simply removing or reducing the amount of added sugar. ABOUT THE AUTHOR

Campisi is a writer at The Food Institute. Reach her at

Consumer interest in sugar substitution has also driven up victoria.campisi@

The Mighty Mung Bean: A Nutritious, and Sustainable, Ingredient

By Udi Lazimy

The world's population is expected to hit nearly 10 billion people by 2050, and the food industry's current model for feeding the world--destroying natural resources at a rate far faster than they can be replaced and emitting greenhouse gasses--simply won't work for much longer. Climate change accelerates many of our environmental and social problems.

The current food system also isn't effectively addressing global hunger, nutrient deficiency, obesity, diabetes, and heart disease; in fact, it's the cause of many of these problems. It's a vicious cycle the food industry can and needs to break.

are committed to improving the environment, and a Unilever study revealed that 33% of global consumers are now choosing to buy from brands they believe are doing social or environmental good.

Consuming less protein derived from industrial animal agriculture can have a positive impact, and plant-based foods are increasing in popularity as a better choice for the planet. The Hartman Group's recent survey found, "over half of consumers (51%) had purchased plant-based milk, dairy, or meat alternatives in the past three months." And these are not vegetarians.

According to an online survey by Accenture Strategy, over 60% of global consumers gravitate towards businesses that

Today's food system needs new tools to improve the way people eat, and those tools can be found in the vast world

See MUNG page 7

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FOOD INSTITUTE REPORT | FEBRUARY 17, 2020

of plants.

MUNG (from page 6)

An excess of 391,000 species of plants are found all over the world, most of which were never explored for food applications to make everyday foods more sustainable and healthier.

Given the tremendous demand for plant-based foods, there is an incredible opportunity for people across global supply chains to improve the food system, starting, importantly, with farmers. Today, the majority of mung beans are grown in India for the domestic Indian market. Those which are

Mung Bean Benefits Cultivated for over 4,400 years throughout China, Southeast Asia, and the Indian subcontinent, people are no strangers to mung beans in their diets. Sprouted, stewed, candied, and eaten in noodles, soups, cakes, and many other forms, mung beans are a staple of millions of people's diets.

Averaging over 26% protein content, and packed with healthy nutrients, potassium, magnesium, and fiber, these easy-to-digest beans are an ideal source of nutrition. In fact, a recent article published in the academic journal, Nutrients, concluded that "Mung bean protein supplement improves muscular strength in vegetarian adults."

Additionally, plant-based proteins are a megatrend for 2020, as they were even recently listed in the National Restaurant Association's What's Hot Culinary Forecast. Since mung beans can function as a nutritious alternative to animal proteins, food engineers and foodservice professionals are now incorporating the legume into new food product formulations and inventive dishes.

Furthermore, companies like Eat JUST, Inc. are using the mung bean as the key ingredient source for its plant-based JUST Egg product.

Beyond their health and nutritional benefits, mung beans are also some of the least resource-intensive crops a farmer can grow.

Compared to some commonly grown crops from around the world, these legumes are among the most water efficient and have one of the smallest carbon footprints of any plant-based source of protein. In fact, they require less water and emit less CO2 to produce than soy, corn, wheat, and rice.

Photo: Kriger Olga | Canva

grown outside of India are generally exported to India, with the exception of a small portion grown for the sprouting market in Japan and China. The emergence of mung bean and other legume proteins as a catalyst for functional, sustainable food innovation will encourage a growth and diversification in the market.

This growth will be beneficial for farmers and farming communities around the world who see this as an opportunity to enter new markets, build soil, reduce water use, and participate in a rapidly growing segment in food. Thus, a beneficial cycle is triggered, where farmers are incentivized to grow sustainable legumes such as mung beans and consumers have more nutritious and sustainable food options.

ABOUT THE AUTHOR Lazimy is senior manager of sourcing and sustainability at Eat JUST, Inc. Reach him at ulazimy@ju.st.

Non-Alcoholic Beverages Quench Consumers' Thirst

By Victoria Campisi

As a growing number of consumers are cutting back on alcohol in an effort to improve health, the beverage industry is innovating with new non-alcoholic, or low alcoholic, drink offerings.

Millennials are driving the mindful drinking movement, with 66% making efforts in 2019 to reduce their alcohol con-

sumption, above the average 47% among all U.S. consumers aged 21 and over, according to Nielsen.

However, this is not all bad news for bars as no- and lowalcohol beer is the fifth fastest growing beer type in the U.S. Anheuser-Busch, Heineken, and other household names offer beers with 0.5% ABV or less, while newer companies such

See BEVERAGES page 8

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FOOD INSTITUTE REPORT | FEBRUARY 17, 2020

BEVERAGES (from page 7) as Athletic Brewing Co., Sufferfest Beer Co., and Fitbeer are brands centered entirely around non-alcoholic brews.

tails on restaurant menus grew 32% from third quarter 2016 to third quarter 2019.

At retail, non-alcoholic beverages were worth $7 billion more in 2019 than four years prior. Nielsen data showed the top five fastest growing non-alcoholic beverage categories in 2019 were energy beverages, kombucha, ready-to-drink coffee, sparkling water, and added value water.

Dry January, a public health campaign encouraging people to abstain from alcohol for the month of January that started in the UK, has become a popular way for Americans to start the new year.

In the UK, supermarket sales of no- and low-alcohol beer jumped nearly 40% in January, reported The Guardian (Feb. 4). An estimated 4.2 million British consumers participated in Dry January this year, and sales of alcohol-free beer surged 37%. Demand for adult soft drinks such as premium ginger beer and tonic also rose 3%.

Although liquor cannot inherently be non-alcoholic, several companies are producing beverages that create the same feel as a cocktail, reported CNET (Jan. 27).

Social media mentions of "Dry January" increased 89% from 2018 to 2019 and 1,083% from 2015 to 2019, according to data from Mintel. This year may be the largest year for the campaign due to the changing consumer attitudes toward alcohol and the rise of alcohol alternative drinks. Mocktails are increasingly common on bar/restaurant menus.

According to Mintel Menu Insights, the incidence of mock-

One example of a company doing so is Seedlip. The company's non-alcoholic distilled spirits--Grove 42, Spice 94, and Garden 108--offer the bite and burn of alcohol without the physiological effects. Consumers can blend the spirits with mixers to create a unique cocktail experience.

ABOUT THE AUTHOR Campisi is a writer at The Food Institute. Reach her at victoria.campisi@

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