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 3Comment
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 2020News
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 2020Germany 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 7Frozen 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 2020In 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 2020GLOBAL 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 11Frozen 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 2020With 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 2020One 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 15Many 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 2020Snacks 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 2020There 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 19seven 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 2020Trends 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 2020Leatherhead’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 2020the 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.You can also read