Dairy Dialog podcast 115: Flavorchem, Danone North America, Food Union Europe

By Jim Cornall

- Last updated on GMT

Dairy Dialog podcast 115: Flavorchem, Danone North America, Food Union Europe
Dairy Dialog podcast 115: Flavorchem, Danone North America, Food Union Europe

Related tags Ice cream Food waste Danone North America Danone Flavorchem Flavors Trends

We welcome the New Year with three interviews on our first podcast of 2021. We chatted with Rebecca Shurhay, marketing analyst, Flavorchem; Normunds Staņēvičs, CEO of Food Union Europe; and Angela Grist, Danone North America senior director marketing.

And because it’s early in 2021 and people are just getting back to things after the holidays, we don’t have our weekly look at the global dairy markets with Liam Fenton from StoneX, but will pick that up again next week.

Flavorchem releases 2021 trend and flavor forecast

Flavorchem, a US headquartered manufacturer of flavor, ingredient, and color solutions, has published its 2021 Trends & Flavor Forecast.

As the food industry evolves in the wake of coronavirus, changing consumer trends will transform the future of food and drink, the company said. Flavorchem analyzed the newest product releases, market intelligence reports, data sources, and social media buzz to predict the latest food, beverage, and flavor trends.

The company said highlights include the breakfast category, which will experience innovative revamps on familiar favorites with more consumers working and learning from home.

Plant Protein Power is another trend, as the ever-evolving and growing market for plant-based protein has a forecasted compound annual growth rate of 9% from 2019-2023 with a series of new product lineups on the way.

Flavorchem said taste exploration is another trend: products that offer a heightened sensory experience via adventurous taste combinations and flavor exploration will draw consumers experiencing cuisine fatigue while stuck at home.

Upcycled ingredients will be one of the most popular claims in 2021, amidst heightened consumer demand for ethical, transparent and sustainable products, the company added.

The full report details how industry trends and consumer insights will influence flavors in food and beverage products in 2021.

“Our in-house Marketing Analysts work closely with our flavorists to help food and beverage brands create flavors and new product concepts that represent the latest in trends and innovation. Our team has conducted extensive market research to ensure our clients have the latest industry intel,”​ Laura Dembitzer, director of marketing and communications, said.

New Center for Taste Innovation

Flavorchem also recently opened its SRS Center for Taste Innovation at its Downers Grove, Illinois, campus.

The new 25,000 sq. ft. facility is named after the late Salvatore R. Sprovieri, who founded the company in 1971 with his brother Phil, who maintains an active leadership role.

The focus of the architectural design was to create and deliver a boutique customer experience that encourages innovation, collaboration, and experimentation with trending foods, beverages, flavors, and ingredients.

“Our goal was to create a space that would be a destination for clients. Customer experience was the focus of this project,”​ said Ross Sprovieri.

“We want our customers to be part of the product development process.”

To support the commercialization of new products and technologies, the building includes an R&D kitchen, four specialized application centers, a dedicated pilot plant with HTST, UHT, and aseptic processing and filling capabilities, a sensory room for blind and controlled testing, and premium guest suites.

Food Union sees 2020 sales increase

Food Union (Europe), a global ice cream and dairy producer and distributor headquartered in Latvia, will wrap up 2020 by posting strong financial results and delivering outstanding commercial performance despite the global uncertainty caused by the covid-19 pandemic.

The group has seen its market grow amid challenges caused by changing markets, evolving consumer preferences and transforming distributor value chains.

“I am pleased to announce that we are on track to achieve our goal of reaching a 5% increase in sales in 2020,”​ said Normunds Staņēvičs, CEO of Food Union Europe.

“This is very encouraging, given the unprecedented market dynamics this year. Strategically, it’s worth noting the increase of Food Union’s ice cream market share by an average of 0.5% across markets where we sell our products. In Food Union’s core ice cream business, profit margins increased by an average of 1.8%. This is a significant outcome given the challenging times. Our group will start 2021 strongly positioned for growth.”

In 2020, Food Union operated in nine European countries, navigated shifting market demands and launched 117 new products based on local consumer insights. Food Union Europe also increased exports into South East Asia, with total exports soaring from near-zero in the first months of 2020 to €2.1m ($2.6m) in sales by the end of 2020.

“Our current position speaks to the resilience of our global business,”​ Staņēvičs said.

“We have emphasized flexibility and agility in responding to the current global crisis, and ensured that local market factors were central considerations in our most crucial business.  Throughout 2019, the Group invested €18.8m ($22.8m) in new technologies across every part of its business and in each geographical region.

“These investments were prescient and positioned Food Union to both withstand the impact of COVID-19 and to increase revenues and profitability in 2020.”

Two Good Yogurt launches new product line utilizing Verified Rescued Produce

Danone North America's Two Good Yogurt is tackling food waste with the introduction of its Good Save product line.

In partnership with Full Harvest, Two Good 'Good Save' uses Verified Rescued Produce to create lower sugar yogurt products with the goal of reducing food waste at the farm level. The product is the first dairy product to utilize 100% Verified Rescued Produce. The initial offering features Meyer Lemons that are 100% verified rescued, with plans to launch additional flavors in 2021 and beyond.

"As a purpose-led brand committed to the well-being of our planet and its people, Two Good knows food waste is a problem across the industry that could not be ignored,”​ said Surbhi Martin, vice president of marketing at Danone North America.

“By rescuing fruit that would have been otherwise wasted and creating this innovation, we are taking purpose a step further by building an even more sustainable business model while also prioritizing the planet.

“Alongside our partners at Full Harvest, our team pledged to make a positive impact on food waste with the introduction of our Good Save product - a commitment to our planet and communities that is underscored by donating 100% of profits during Earth Week in April of this year to food rescue organizations City Harvest and We Don't Waste, and launching the industry's first one-for-one model with our One Cup, Less Hunger program this fall."

The lemons in Two Good 'Good Save' yogurt would otherwise have been wasted due to overproduction, a lack of secondary markets for the farmer, or cosmetic blemishes.

Two Good 'Good Save' yogurt is the first product to use the Full Harvest Verified Rescued Produce seal – the highest standard for on-farm food waste reduction verification.

"With the launch of the Two Good 'Good Save' line in partnership with Full Harvest, Danone North America is at the forefront of the food waste reduction movement and is helping farmers get the most from their harvests,"​ said Christine Moseley, founder and CEO of Full Harvest.

"We're thrilled to help Two Good make a great tasting product by creating a sustainable and resilient supply chain made of Full Harvest Verified Rescued Meyer lemons."

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