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Topco and Wild Oats: A Theory

Topco Associates’ pitch for the dormant Wild Oats brand name seems — at first blush — like an odd move. What would a company that already offers a pretty successful private-label natural/organic brand called Full Circle want with a retail name that hasn’t been seen on shelves for three years?


Or, more to the point: Why would Topco want it?


wild_oats.jpgFirst, the background: The Wild Oats brand name has been for sale since Whole Foods Market acquired Wild Oats in 2007. A messy antitrust battle with federal regulators ensued, and ended only after Whole Foods agreed to sell off 32 Wild Oats units, along with the brand (to date, three stores have actually been sold).


Fast forward three years. According to papers filed with the Federal Trade Commission, Topco and Luberski Inc., a Fullerton, Calif.-based food-product supplier, are both bidding for the Wild Oats rights. A source familiar with Topco tells me that Topco has been interested in the name since the acquisition.


Why? The current thinking is that Topco will position the Wild Oats name as a “better-for-you” brand that complements the existing Full Circle natural/organic line, similar to what Safeway has done with its “O” Organics and Eating Right brands.


Adding a lesser-evil tier will allow retailers who pull from Topco to offer an additional line, with different price points and product attributes, to mainstream customers who might otherwise simply buy conventional products if given only a natural/organic option. more

Expo West: Saturday Trend Round Up

Each day on the show floor brings new insights into how the many moving parts in the natural foods industry can process emerging consumer demand and turn out products that answer the call. There were two trends that we saw in the aisles yesterday that will soon be coming to a store near you:


Flexitarian Soy: Soy regularly gets into trouble. Studies come out against it, only to be answered by research refuting the original findings. Nevertheless, soy remains the dominant alternative protein of choice for vegans and vegetarians — and now, it seems, flexitarians.


That last term was coined recently to describe those people who might also call themselves “casual vegetarians.” They don’t follow a rigorous no-meat diet, but they have cut down on their meat consumption, either for health or ethical reasons. Judging from some of the products we’re seeing here, it seems as if soy manufacturers are poised to deliver a soy product that increases the acceptance factor of these part-timers.


First, from Vitasoy/Nasoya, comes a line that’s been fortified with essential vitamins (particularly B12) that are primarily found in meat, and often at risk in a vegetarian diet. The second comes from Harmony Foods, which is introducing a dry soy mix that is extremely flexible (after all, flexitarian eaters must desire flexibility) and can be shaped into patties, balls or crumbles, simply by adding water.


What’s more — and here’s the kicker — the latter product is flavored to mimic certain animal proteins, such as chicken. So, these optional vegetarian consumers will be able to find a compromise between their actions and their desires.


Then there’s product redesign: An impressive number of manufacturers are unveiling new graphics, updated logos and more ecological packaging at the show. Among the big ones we found were Nature’s Path, the Canada-based maker of cereals and cereal bars. Their new boxes are 30% smaller now, though they contain the same amount of product. What’s more, the dimensions of the boxes won’t require retailers to reset shelves or change planograms, One of the side benefits for companies undertaking such a program is that, if the work with retailers, they’ll likely be ablr to get one or two more facings of their products onto shelves.


Over at Barbara’s Bakery, the company’s iconic puffin no longer gets top billing in the graphics. We learned that the new design will harken back to the company’s founding, and its California roots, with a bucolic image and a craft-paper shade of brown threading throughout.


We’ll note that all of the products mentioned are either just coming to market or are going into distribution right after the show. The fact that many manufacturers time their efforts to Expo West indicates the importance they give the show as a marketplace of ideas. For this reporter, this makes wandering the aisle more like a treasure hunt for seek out the new and improved items your customers are going to soon see.

Expo West: Friday’s Trend Round Up

It’s tough to stay focused when there’s so much ground to cover — and so much food to eat. Nevertheless, we were able to pick a couple trends that stood out from today’s show. They could be duds, or they could be the next big wave to hit the industry. Hey, we call ‘em like we see ‘em.


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- Water packaging: With bottled water undergoing something of an image crisis these days, it seems manufacturers are finding new ways to deliver. We saw water in pouches, cartons, glass bottles and spiffy new recyclable containers. One company, H2O Box, markets entirely around its packaging, which is 100% recyclable and can biodegrade within 7 years.

- Sweeteners: With high-fructose corn syrup on the ropes, and serious questions being posed about artificial sweeteners like aspartame, suppliers are stepping up with alternatives from some interesting places. There’s stevia, of course. But we also saw lots of agave nectar today, as well as evaporated palm sugar, of all things.

- Dried fruit: It seems consumers want to eat their fruit, but maybe don’t have the time or patience to deal with the real thing. A depressing thought, for sure. But the dried options, which have been around for years, are getting a facelift with interesting new presentation (tubs, pouches, bulk bins), and some delicious company like nuts, granola and various grains.

- Tablets: Particularly in the household cleaning sector, the idea of cutting down on waste by reusing the same container has taken hold. Companies provide the bottle, along with the tablets that you drop in, add water, and….voila!

Expo West: Social Media Tips

Thursday morning’s seminar, Best Practices in Social Media, played to a packed house. It could be people were raring to go the day before the show begins. But more likely the high attendance speaks to just how eager companies are to expand their online presence through Facebook, Youtube, Twitter and the like.


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For companies used to delivering polished, deliberate marketing messages, social media is a significant change of pace. It’s quick, casual, and predominantly user-generated. It’s a “me”-focused space where people come not to be pitched or marketed to, but rather to connect and to be entertained.


So how do companies break through to a non-captive audience like this? First, a few stats, courtesy of presenter Mauricio Lluch, president of the consulting firm eMarketing Naturally.


- Facebook has 400 million users, 32% of them older than 35.

- YouTube has 173 million monthly viewers, more than 50% of whom make more than $60,000 per year.

- 82% of brands are currently utilizing social media.


Clearly, the opportunity is there. And making an impact, according to Lluch and fellow presenter Heather Smith, founder of PR firm Lady Luxe Inc. means being honest, informative, and even quirky. To demonstrate the latter quality, Lluch showed this YouTube video made by the BlendTec blender company, in which the company’s president throws an iPhone into one of his blenders as part of their ongoing series, “Will it Blend?” more

Beverage Studies Examine Obesity Connection

A trio of beverage reports out this week all come from different sources, and consider different questions — but there’s a common thread that ties all of them together: obesity.


Two of the studies focus on carbonated soft drinks and other sugary beverages in our nation’s schools. The first compares deliveries of soda and full-sugar beverages to schools in 2004 to those this year. The numbers are down a whopping 95%. The ongoing initiative — headed up by the American Beverage Association (and big manufactures like Coke and Pepsi), the Clinton Foundation and the American Heart Association — has stressed 100% juice drinks, teas and flavored waters (though high school-age kids can additionally opt for diet drinks).


sodas.jpgThe program was introduced formally in 2006, in response to data showing that two-thirds of all Americans, including one in three children, have serious weight problems.


Against that backdrop, a second report unveiled at a heart disease convention this week shows that the increase in full-sugar beverage consumption has brought about 130,000 cases of diabetes and 14,000 cases of heart disease over the past decade.


The study’s lead author says that the greatest risk right now is to younger people, age 35 years and under.


“No one argues that these drinks are not fine in moderation, but over the past decade their consumption has been on the rise, while consumption of other beverages has declined,” Dr. Kirsten Bibbins-Domingo, senior study author and an associate professor of medicine at the University of California, San Francisco, was quoted as saying in a Reuters story. more

Mind Your Claims

The FDA has sent out warning letters to 17 food manufacturers claiming that certain products violate the Federal Food, Drug, and Cosmetic Act. The development follows last October’s statement by FDA commissioner Margaret Hamburg urging companies to review their nutrition claims.


Yesterday’s letters serve as a reminder that the agency is serious about holding manufacturers accountable for the promises they make to their customers. The vast majority of companies making health claims have been careful to include studies, research findings and other data supporting their claims on their websites, or otherwise make them available to consumers.


Even so, the FDA is saying companies continue to overreach, or neglect to balance their claims with statements that point out other nutritional aspects that are not so healthy.


For example, many of the manufacturers on this most recent list were cited for making claims such as “0 grams of trans fat” – a statement that, in and of itself, is accurate. However, many of these products contain significant amounts of saturated (bad) fats, or cholesterol, or sodium. FDA regulations state that if these nutritional elements exceed a certain amount, then manufacturers must include an ancillary notice next to any front-panel health declarations that directs the consumer to the Nutrition Facts panel.


There, they’ll see that the product does not have any trans fats as stated but, Wow, it’s loaded with saturated fat, cholesterol or sodium. No thanks, I’ll pass. more

Food Safety Report Scares Up New Data

Attempting to quantify the health-related costs associated with foodborne illness is, at best, an inexact science. There are so many variables to weigh. Some, like medical expenses and lost wages, are fairly obvious and easy to calculate. Research can reveal some pretty concrete numbers for those types of factors.


What about pain and suffering? Or the cost of financial burdens placed on a family whose primary wage-earner died as the result of a foodborne pathogen?


This “Big Picture” approach was taken with the new report: Health-Related Costs from Foodborne Illness in the United States (no mistaking the topic here, eh?). The study was authored by Robert Scharff, an assistant professor in the Department of Consumer Sciences at Ohio State University (and a former U.S. Food and Drug Administration economist). The report itself was sponsored by the Produce Safety Project at Georgetown University.


The most astounding revelation in this study is that Scharff came up with a new number for the cost of foodborne illness: $152 billion. What makes that figure such an eye-opener? Past official government estimates have topped only $35 billion.


“The cost of foodborne illness is significantly greater in this report than in some past studies, but only because this study included costs of all pathogens and a more comprehensive measure of economic cost,” wrote Scharff in the report. “It is my hope that the improvements made here will lead to better decision-making, both at the legislative and regulatory level.”


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Deadline 2015

Don’t ask me why, but 2015 has all of a sudden become the year for green transformations.


2015.jpgLast week, Wal-Mart said it plans to cut 20 million metric tons of greenhouse gas emissions from its supply chain by 2015. It will do this by going through stores category-by-category, rooting out the products responsible for the highest carbon output, and then working with suppliers to reduce the amounts. This could mean Wal-Mart’s vendors need to revisit how they source ingredients, the way they ship their products; changing whatever process is using the most energy.


The changes could be big, and manufacturers, many of whom have worked with the retailer on its packaging scorecard, may not be enthused about Wal-Mart calling the shots like this. But Wal-Mart argues, compellingly, that such changes would put them ahead of the regulatory curve and into consumers’ good graces.


“As we help our suppliers reduce their energy use, costs and carbon footprint, we’ll be helping our customers do the same thing,” said Wal-Mart CEO Mike Duke, in a statement.


The Bentonville retailer has made strides with this and other efforts to tame emissions — but it’s not the most ambitious company out there. That title arguably belongs to Great Britain’s Marks & Spencer, which announced today that it aims to become the world’s most sustainable retailer by 2015. more

New Rules for Organic Dairy

It took five years of on-and-off sparring, but organic supporters are raising a nice, tall glass of organic milk after the U.S. Department of Agriculture issued revised rules governing the “access to pasture” guidelines contained within the National Organic Program.


Mark Kastel, co-founder of the Cornucopia Institute, a small farm advocacy group and one of the most vocal critics of the original regulations, was quoted in our print issue of SN as saying, “Flashing forward to a year from now, when this rule will be fully in place and enforced, we hope to be able to say that 100% of the name brands and private labels all meet the rigorous standards that consumers expect” from the USDA-certified organic label.


whrefreshcow.jpgThere are two reasons everyone is pleased. The first one, of course, is that the rule was changed. Starting in June, the USDA’s revised access to pasture regulation will require farmers to allow their cows to graze at least 120 days per year, and the cows must also get at least 30% of their food from pasture during the local grazing season. The old version simply — and vaguely — required “access to pasture,” with no further specifications as to how much or when.


Critics of the old rule claimed that large-scale dairies were taking advantage of the hazy wording to circumvent the spirit of the regulations but still calling their dairy products certified organic. Groups like the Cornucopia Institute and the Organic Consumers Association were tenacious in petitioning the USDA for investigations of specific big dairy operators and filing lawsuits. more

Advances Help Steam Foods Grow

Most of the attention at food shows goes to the fun, “around the plate” foods like chocolates and cheeses, teas and olive oils. “Center of the plate” offerings are usually few and far between. But this year, I am already noticing a handful of companies offering items that answer the daily question, “What’s for dinner?”


One company in particular caught my eye and piqued my interest with its steamable, sustainable seafood entrees like Japanese Black Sesame Wild Ahi Tuna, Veracruz Style Tilapia and Wasabi Ginger Wild Salmon. These are not your chemical-feast TV dinners of yore; instead, they are all-natural, flavorful meals with seafood as the protein of choice. These products were in trays, but more and more steamable meals are popping up in grocers’ freezers in bags that perform the same function.


Another company out of the Chicagoland area is producing restaurant-quality meals much like you can find in high-end European retailers like Picard in France. They are starting with high-quality ingredients to produce an upscale meal — also in a steam bag — that you would be proud to serve to your family and friends.


Interestingly enough, this steamable technology cropped up first in private label offerings from Europe before it was adopted by frozen vegetable producers. The frozen veggie manufacturers have been on board with steam-in-the-bag offerings for the past few years now, so it’s a natural transition that the entrée manufacturers would follow suit. Now that most households in America cannot “cook” without a microwave, we’re seeing new item introductions with microwave-only instructions. The day of the dual microwave or oven tray seems to be a thing of the past. more

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REFRESH is a blog without peer. As a web-based companion to Penton Media’s Supermarket News (SN) and SN Whole Health magazines, REFRESH offers unique content on the subjects of supermarkets, wellness and sustainability. The interactive format attracts retail food industry professionals, lifestyle advocates and everyday consumers. We invite you to read on and get REFRESHed!

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