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Market Opportunities for

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2 Food Insider Journal Market Opportunities for Clean Label Gums & Starches January 2018

CONTENTSJanuary 2018

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Innovation in Action

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12Market Opportunities for Clean Label Gums & Starches

The Ultimate Texture Test: Clean Label Starches and Gums

Sir Kensington’s: Condiments With Character

3Viewpoint: All About The Texture

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VIEWPOINT

In a category like soups, sauces, dressings and marinades—where texture is key, even if taste is king—starches and gums play a significant role.

Texture is tricky, and poses unique challenges to product developers formulating clean label products. To win this game, they must find and use ingredients that provide the structure consumers expect and stand up to the realities of

today’s manufacturing conditions—and do it in the most minimalist way possible. Fortunately, there are a host of clean label ingredient solutions available in the formulator’s toolbox, including starches and gums, that help ensure a product’s taste and texture are pleasing to the palate.

Viscosity, opacity, mouthfeel, suspension, meltaway and how the product sticks to the substrate are critical to the product’s success. Depending on the application, gums and starches bring specific qualities and functions that help with stabilization, emulsification, shelf extension and mouthfeel of the finished product. This issue of Food Insider Journal examines clean label market opportunities in soups, condiments, sauces, dressings and marinades, frozen desserts and entrées, and refrigerated entrées—all categories that rely on gums and starches for overall product success.

In a category like soups, sauces, dressings and marinades—where texture is key, even if taste is king—starches and gums play a significant role. Used for thickening, preserving shelf life and keeping emulsions intact, gums and starches cannot be simply removed to clean up the label. Instead, they must be replaced with cleaner alternatives. This month’s Category Insight takes a deep dive into what’s driving demand for natural gums and starches in the soup, sauce, dressing and marinade markets, as well as formulation challenges and solutions for creating great tasting, clean label products.

The Innovation in Action case study highlights how the team at Sir Kensington’s realized opportunity in the condiment aisle and are creating clean label “products with a purpose.”

As always, please drop me a line with any suggestions on future topics.

Cheers,

Judie [email protected](480)281-6019

@judiebizz

All About the Texture

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While consumers are looking for convenience in the kitchen, they still want foods that provide homemade textures with simple ingredient decks. Qualities such as viscosity, opacity, mouthfeel,

shelf extension and stabilization are critical to product success, but reformulating and repositioning mainstream products to carry a clean label declaration isn’t as easy as it sounds.

by Judie Bizzozero

The global market for hydrocolloids will reach

$8.5 billion

by 2022 representing a compound annual growth

rate (CAGR) of 5.8%.

agar. Label-friendly native starches are derived from sources such as maize, waxy maize, high amylose maize, wheat, tapioca, pea and potato.

The global hydrocolloids market has witnessed steady growth due to the varied functional attributes of hydrocolloids, as well as an uptick in consumer demand for convenient prepared foods that are minimally processed and contain natural ingredients. According to Mordor Intelligence’s 2017 report “Food Hydrocolloids Market-Growth, Trends and Forecast,” the global market for hydrocolloids will reach US$8.5 billion by 2022, representing a compound annual growth rate (CAGR) of 5.8 percent.

While the report stated sector growth should be seen by brands as an opportunity to adopt hydrocolloids in their manufacturing process, the market is mainly constrained by demand and supply imbalances. What’s more, seasonal changes cause volatility in raw material pricing, raising costs for manufacturers. Despite restraints, the market has tremendous potential for growth, the report concluded.

Indeed. Jon Getzinger, chief marketing officer at Puris Foods, said while many premium and lifestyle brands are turning to clean label gums and starches, some older, staid consumer brands continue to use typical formulations because brand managers worry about increasing costs or alienating their traditional consumer base.

Market Opportunities for

Clean Label Gums & Starches

Whether a sauce, soup, frozen dessert or refrigerated entrée, the product must meet consumers’ expectations on many fronts, including taste and texture. Enter the multitude of natural gums and starches available to product developers.

Providing Function, NaturallyGums and starches fall under the umbrella of

hydrocolloids, which are widely used in a variety of applications such as prepared frozen meals, soups, sauces, dressings, processed meats, frozen desserts, dairy products, fruit preserves and confectionery.

Hydrocolloids commonly used as thickening agents include starch, xanthan gum, guar gum, locust bean gum, gum karaya, gum tragacanth, gum Arabic and cellulose derivative. Those commonly used for gelling purposes include alginate, pectin, carrageenan, gelatin, gellan and


“Unfortunately, these are the same core brands that could use a shot in the arm as they slowly spiral downward in revenue and margins become thinner,” he said.

Michelle Kozora, technical service director at Cargill, said brands looking to clean up their labels must re-evaluate their entire formula to understand which ingredients are most functional and necessary, and which ingredients can be eliminated. What’s more, ingredient suppliers can play an important role in helping customers simplify product labels and manage costs.

“Native starches are usually used at a higher rate; however, developers may not be able to simply replace a modified food starch with another single starch,” she said. “Often, we find a custom blend of starches or add another ingredient to achieve the same texture, stability, appearance and taste.”

Getzinger cautioned there is often a mismatch between supply and demand as newer, more label-friendly ingredients become available. “This was certainly true of the better-tasting pea proteins, and it can certainly be the case with the newer clean label starches and gums,” he said. “While pea-based starches compete very favorably against more established starches from tapioca and potato, the current supply is not infinite. Having a supply agreement in place versus spot purchasing can help mitigate supply issues, especially for ‘real’ certified organics grown in the United States, where only 1 percent of the available land is currently used for organic crops.”

Demand for NaturalThe interest in transparency and the demand for label-friendly products

show no signs of waning. Consumers want to know what’s in the food they eat, where it comes from and how those ingredients were made.

Getzinger noted increased consumer interest in where products originate and are processed. “Consumers are pushing back on certain countries of origin when they become aware of them,” he said. “There is also a desire for the ingredients to come from a plant source if possible versus chemical, and some consumers are going even further—pushing back against corn on the label.”

Kozora agreed, noting consumers are increasingly drawn to pantry-friendly ingredients. “Native starches from plant-based sources like corn, wheat, potato, rice and tapioca are great examples of ingredients consumers understand, can find in their supermarket and might even have in their own kitchen,” she said. “Among hydrocolloids, pectin is well accepted by consumers. Found in apples and citrus fruits, consumers recognize pectin on an ingredient statement and understand its gelling and thickening properties.”

While pea-based starches compete very favorably against more established

starches from tapioca and

potato, the current supply is not infinite.

Having a supply agreement in place versus spot purchasing can help mitigate supply issues, especially for ‘real’ certified organics grown in the United States, where only

1% of the available land is currently used for organic crops.


Ingredient suppliers are learning how to get more from these tried-and-true ingredients. For example, Cargill is looking at native and functional native starches in a different way by going back to the basics, studying and quantifying all the attributes of each individual starch in its portfolio.

“By gaining a greater understanding of the structure and unique properties of each starch, we began to unlock their collective potential,” Kozora said. “Using this approach, we’re dramatically increasing the number of tools in our toolbox. At the same time, it’s changed how we approach formulation challenges. Now, we sit down with customers to determine what specific attributes they need in a starch solution, then look at the individual characteristics of our different starches to create the right blend for their needs.”

Clean Label’s Potential & PositioningGlobal sales of clean label food and beverage products hit

$165 billion in 2015 and are projected to reach $180 billion by 2020, according to Euromonitor International. Breaking down clean label sales from 2015, packaged foods accounted for the lion’s share, ringing up $128 billion, followed by soft drinks at $34 billion and hot drinks at $3 billion. Considering the global packaged food market will garner revenue of $3.06 billion by 2020, there is tremendous opportunity for innovation in the clean label space.

Driving home clean label’s potential are results of a recent survey commissioned by specialty public relations firm Ingredient Communications that found as many as 73 percent of consumers will pay a higher retail price for a food or beverage product made with ingredients they recognize and trust. In a survey of 1,300 consumers across Europe, North America and Asia-Pacific, 52 percent of respondents said they would spend over 10 percent more on a food or beverage product that contained ingredients they recognized and trusted. Meanwhile, 18 percent said they would pay 75 percent or more extra. Overall, 76 percent of respondents said they would be more likely to buy a product that contained ingredients they recognized and trusted. The findings underline the growing importance of clean and clear labeling and the use of ingredients familiar to consumers.

Market Opportunities for Natural Gums & StarchesPrepared foods is one of the fastest-growing segments

within the global food industry, thanks to busy consumers seeking out convenient, nutritious and time-saving options in the form of frozen, refrigerated and shelf-stable products.

Viscosity, opacity, mouthfeel, suspension, meltaway and how the product sticks to the substrate are critical to the product’s success. Depending on the application, gums and starches bring specific qualities and functions that help with stabilization, emulsification, shelf extension and mouthfeel of the finished product. The following categories rely on gums and starches for those functions, which means the opportunity for clean label makeovers is immense.

Breaking down clean label sales

from 2015,

$180 billion by 2020

Source: Mintel: Food Packaging Trends - US - June 2016 Report

$165 billion in 2015

and are projected to reach

Global sales of clean label food and

beverage products hit

packaged foods accounted for the lion’s share, ringing up

$128 billion

followed by soft drinks at

$34 billion and hot drinks at

$3 billion.


SoupsAccording to the “Consumer and Innovation Trends in Soup 2014”

Consumer Insight report from Datamonitor, soups represented $19.6 billion in global spending in 2013. Of that number, shelf-stable soups accounted for most sales, followed by refrigerated and frozen offerings.

Innovation in the soup market has mostly been driven by consumer shift toward healthier lifestyles and nutrition.

The shift is being felt in the U.S. market as well. Data from SPINS found sales of frozen, refrigerated and shelf-stable soups reached nearly $7 billion and grew 1.1 percent in the 52 weeks ending Nov. 5, 2017. Sales of frozen, refrigerated and shelf-stable soups with natural positioning rang up approximately $733 million during the same period. Looking closer at the natural positioning, frozen and refrigerated offerings grew 30 percent each, and sales of shelf-stable soups grew 8 percent.

Soups represented $19.6 billion

in 2013Condiments, Sauces, Dressings & Marinades

The global condiment sauces market reached $19.3 billion in 2014 and is predicted to hit $23.4 billion by 2020 due to increased popularity of ethnic foods, according to a report from Transparency Market Research.

Growth of ready-to-use sauces, dressings, marinades and condiments is being fueled by Millennials who not only are expanding their flavor palates to include global cuisines, but also are willing to spending more money on products that provide depth of flavor. What’s more, consumers are seeking out higher-quality offerings with specific attributes such as organic, natural, low sugar, low sodium, etc.

Mintel’s most recent “Cooking and Pasta Sauces, Marinades” report found sales of sauces and marinades leapt 12 percent between 2010 and 2015, and are anticipated to continue rising 13 percent through 2020 to reach $6.2 billion. Though marinades represent the smallest segment here, they are the strongest performing; sales of marinades rose 24 percent to reach $1.4 billion in 2015 and are anticipated to grow 17 percent through 2020. The report also found 63 percent of consumers who use sauces and marinades seek products that are all natural, 61 percent desire those made without additives or preservatives, and 55 percent want ones made with simple and minimal ingredients.

According to Packaged Facts’ 2017 “Condiments and Sauces: US Retail Market Trends Report,” there’s been increased interest in healthy sauces and dressings. The market research firm reported dollar sales rose significantly more than volume sales between 2011 and 2016, indicating a premiumization in the category and a willingness on the part of consumers to prioritize specialty items.

Data from SPINS found U.S. sales of shelf-stable pasta and pizza sauce reached $2.6 billion and grew 1.3 percent in the 52 weeks ending Nov. 5, 2017. Sales of products with natural positioning hit $535 million and grew 6.9 percent. Sales of refrigerated pasta and pizza sauce reached $88 million, and products with natural positioning rang up $8.5 million during the same period.

SPINS data found sales of refrigerated condiments reached $840 million and grew 3.5 percent during the same period. Sales of products with natural positioning hit $144 million. Of that number, refrigerated dressings rang up $87.7 million in sales.

Sales of shelf-stable condiments, dressings and marinades hit $9.7 billion and posted a percent loss of .04 in the 52 weeks ending Nov. 5, 2017. Interestingly, products with natural positioning reached $535 million and grew nearly 7 percent during the same period, signaling a significant bump in the sector. Drilling down deeper in the natural category, shelf-stable mustard grew the most at 21 percent, followed by shelf-stable and refrigerated mayonnaise (19 percent), shelf-stable soy sauce and tamari (14.3 percent), and shelf-stable hot sauce (13.8 percent).

in global spending

Sales of refrigerated

condiments reached $840

billion in 2017


Frozen Desserts & EntréesDriven by a growing demand for faster-to-prepare foods and new product

launches in the market, the global frozen food market is expected to reach $293.75 billion by 2019, up from $224.74 billion in 2012, according to data from Transparency Market Research.

Frozen ready meals—including frozen pizza, desserts, snacks and entrées—accounted for more than 30 percent of the total global market revenue in 2012. Frozen foods made with natural and organic ingredients show ongoing strong market opportunity for manufacturers.

Data from SPINS found U.S. sales of frozen desserts reached $12.6 billion and grew 1.8 percent in the 52 weeks ending Nov. 5, 2017. Sales of certified organic frozen desserts grew 15.3 percent, sales of gluten-free offerings skyrocketed 21 percent, and sales of non-GMO (genetically modified organism) products grew 6.5 percent during the same period.

Frozen entrées rang up $18.2 billion in sales and grew 3.3 percent. In the natural category, sales of certified organic frozen entrées hit nearly $69 million and grew 40 percent, while gluten-free products rose 3.2 percent to reach $840 million. Sales of non-GMO products hit $411 million and grew 6.6 percent during the same period.

Interestingly, sales of certified organic frozen pizza fell 27.4 percent, while overall sales of certified organic experienced a 107.8 percent gain. In the non-GMO category, frozen pasta entrée sales skyrocketed 192.8 percent, while frozen soups fell nearly 72 percent. Conversely, sales of gluten-free frozen soups grew 103.6 percent, while non-GMO frozen pasta entrées only grew 10.3 percent.

Frozen ready meals—including frozen pizza, desserts, snacks and entrées—accounted for more than 30 percent of the total global market revenue in 2012.

Sales of certified

organic frozen desserts grew

15.3%

sales of

gluten-free offerings skyrocketed

21%

and sales of

non-GMO products grew

6.5% during the same period

10 Food Insider Journal

Refrigerated EntréesTime-pressed consumers sometimes must

compromise on their desire for fresh food preparation, and refrigerated entrées provide a quick and nutritious solution. The numbers speak for themselves—global sales of prepared meals reached $80.4 billion in 2015 and are forecasted to grow at a CAGR of 3.3 percent in value terms during 2015 to 2020, according to GlobalData.

Data from SPINS found U.S. sales of refrigerated entrées clocked in at nearly $7.3 billion and grew 10.3 percent in the 52 weeks ending Nov. 5, 2017. Refrigerated soups showed the most growth at 14.8 percent, followed by refrigerated sushi (14.2 percent), and refrigerated sandwiches and wraps (10.5 percent).

Sales of products with natural positioning hit $308 million and grew 3.7 percent. In this category, refrigerated sandwiches and wraps grew 56.6 percent, while refrigerated soups increased 30.3 percent.

Certified organic refrigerated entrées rang up $19 million, but sales fell .02 percent. Non-GMO sales reached nearly $14 million, but experienced a 20.4 percent drop. Sales of gluten-free offerings reached nearly $207 million during the same period.

REFRIGERATED SOUPS showed the most growth at

14.8%followed by

REFRIGERATED SUSHI

14.2% and

REFRIGERATED SANDWICHES AND WRAPS

10.5%

Market Opportunities for Clean Label Gums & Starches January 2018

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wholesomeness, sustainability and simplicity.

Partner with Cargill to benefit from proven application expertise and a reliable global supply chain.

Learn more and request samples at www.cargill.com/labelfriendly.

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Cargill Label-Friendly Ingredients

As a global ingredient leader, Cargill offers an extensive portfolio of label-friendly ingredient solutions

to help meet your formulation goals for sugar reduction, non-GMO, organic and beyond!

Some of the products in our growing label-friendly portfolio include:

• ViaTech® stevia sweeteners

• Oliggo-Fiber® chicory root fiber

• Label-Friendly starches

• Lecithin

• Plant proteins

• Pectin & gums

• Custom Texturizing Systems

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When consumers think of functional ingredients, what comes to mind? Often, today’s consumers think of ingredients like protein, turmeric or ancient grains, which bring added nutrients or holistic benefits

to a food or beverage. But decades before the term “functional ingredients” became a clean label buzzword, the food industry relied on its own version of functional ingredients: ingredients like gums and starches that work double duty, often adding or enhancing flavor but also working to thicken, stabilize, texturize or otherwise enhance a food product.

And when consumers started demanding clean labels of their soups, sauces, dressings and marinades, the artificial gums and modified starches that served formulators so well in the past were suddenly met with increased scrutiny.

According to Pam Stauffer, global marketing programs manager at Cargill, clean label is an evolving concept that often includes regulated attributes like organic and non-GMO (genetically modified organism), as well as more subjective ones like recognizable ingredients (which, of course, will be different for every consumer).

In order to understand what clean label really means, Cargill recently conducted proprietary consumer research on the topic. What the company found was a bit surprising: while nearly 60 percent of the respondents were aware of clean label products, far fewer seemed to have a deep understanding of exactly what the term means. But it didn’t matter. Nearly eight in 10 still said they were at least somewhat likely to seek out clean label products, even if they weren’t certain of the definition or benefits. This leaves formulators and brands in a bit of a conundrum: They must appeal to educated clean label consumers who want differing attributes—from organic to gluten-free and beyond—while simultaneously appealing to well-meaning but uninformed consumers who are looking for better products but have no clear direction as to what exactly constitutes “better.” In this way, clean label has become an umbrella term that goes well beyond simple ingredients.

“For today’s label-conscious consumer, simple and recognizable ingredients are not always enough,” Stauffer said. “Increasingly, consumers want to know how those ingredients were produced. In some cases, that concern may cause product developers to look for alternatives to modified starches and artificial gums.”

by Melissa Kvidahl

Nearly 8 in 10 consumers are at least

somewhat likely to seek out clean label products, even if they aren’t certain of the definition or benefits.

CATEGORY INSIGHT

The Ultimate Texture Test: Clean Label

Starches and Gums


Indeed, while not as publicized as other clean label villains like GMOs, modified starches and artificial gums are increasingly concerning for the better-for-you consumer. According to Ben Roche, Michelin-starred chef and director of product development at Hampton Creek, even educated consumers often view gums and starches overall as chemicals or harmful food additives and, therefore, they view the whole lot of them through a negative lens. As such, these ingredients suffer from a bad reputation with consumers who scrutinize labels.

“I believe that the general public’s interest is a concern with the safety of these products,” he said. But, well-meaning as they may be, are they justified? Perhaps. “There is a designation of organic and clean label within these ingredients so, yes, I think it’s justified that there are better versions of these products than others,” he said. “Overall, though, it really comes down to the consumer doing some research and making their own call on whether they want to consume the product and feed it to their family.”

Look no further than the recent events surrounding xanthan gum for proof that consumers will need to make this call for themselves. On Aug. 28, 2017, General Mills got hit with a second class-action lawsuit stating that the natural claims on Annie’s salad dressings are misleading to shoppers because the products contain xanthan gum. On the one hand, the suit alleges xanthan gum is synthetic and, therefore, not natural. On the other, General Mills responded to a similar complaint filed in May 2017 that the ingredient is approved by the National Organic Program (NOP), which represents, to many, the gold standard for natural food. Both have a point, to an extent. But many industry leaders contend that, despite its chemical-sounding name, xanthan gum is, in fact, acceptable to the natural consumer and has an important role to play in natural dressings, sauces and soups.

Indeed, according to market researcher Stratistics MRC, the global xanthan gum market is expected to grow at a compound annual growth rate (CAGR) of 4.7 percent between 2016 and 2023, thanks to growing demand for gluten-free and, yes, natural products.

Overall, though, it really comes down to the consumer doing some research and making their own call on whether they want to consume the product and feed it to their family.

— Ben Roche, director of product development,

Hampton Creek

Increasingly, consumers want to know how those ingredients were produced. In some cases, that concern may cause product developers to look for alternatives to modified starches and artificial gums.

— Pam Stauffer, global marketing programs manager, Cargill

Many industry leaders contend that, despite its chemical-sounding name, xanthan gum is, in fact, acceptable to the natural consumer and has an important role to play in natural dressings, sauces and soups.


Demand for Cleaner Gums and StarchesIn a category like soups, sauces, dressings and marinades—

where texture is key, even if taste is king—starches and gums play a significant role. Used for thickening, preserving shelf life and keeping emulsions intact, gums and starches cannot be simply removed from such products to clean up the labels. Instead, they must be replaced with cleaner alternatives. And this is an issue on consumers’ radars, even if it’s not in the spotlight like other clean label demands such as non-GMO, organic or allergen-free.

Jon Peters, president of BENEO Inc., said soup and dressings consumers don’t like to see modified or artificial ingredients, including starches and gums, on the labels of the products they buy. And the data backs this up. Euromonitor found the total volume consumption of starches in soup in the United States remained stable between 2015 and 2016, while consumption of modified starches in soup dropped 3 percent. As far as sauces, dressings and condiments, total volume consumption of modified starches grew at half the pace of starches overall.

Consumer preference for clean label at retail may very well be what’s driving this shift in ingredients. According to data from SPINS, sales of frozen, refrigerated and shelf-stable soup grew about 1 percent in the 52 weeks ending Nov. 5, 2017. Sales of certified organic and gluten-free offerings, though, grew over 5 percent each, and sales of non-GMO offerings grew nearly 7 percent during that same period.

Soup and dressings consumers don’t like to see modified or artificial ingredients, including starches and gums, on the labels of the products they buy.

— Jon Peters, president, BENEO Inc.

According to a report from Mordor Intelligence, published March 2017, though the regular canned soup segment dominates globally as far as market share, the organic canned soup segment dominates as far as demand, likely thanks to an increasingly educated consumer base that wants cleaner attributes.

As far as sauces, Mintel revealed in its “Cooking and Pasta Sauces and Marinades - US - December 2017” report that most people who use cooking sauces, pasta sauces and marinades look for products that are natural. In fact, 63 percent said they seek out all-natural products, 61 percent want them free from additives or preservatives, and 55 percent desire those made with simple and minimal ingredients. How can starches and gums, which often suffer from bad reputations as being “additives,” fit into this trend?

“Companies are doing a better job of explaining or providing explanation as to what [gums and starches] are, where they come from and how they are produced,” Roche explained. “For example, natural and organically produced food gums—such as some xanthan, guar and konjac gums—are much more palatable to consumers now, and public awareness of these ingredients is more prevalent than ever. A lot of this is due to brands taking the care to provide education around ingredients to concerned consumers.”


Visitors to the Campbell’s website, for example, will find ingredient breakdowns organized by those used for flavor and those used for texture and color. The company explains each ingredient, where it comes from, and what it’s used for. On the list are gums like locust bean gum, as well as the starches included in products.

Pacific Foods, which was acquired by the Campbell Soup Co. last year, is yet another brand prioritizing education. Brand Manager Kelly McCann said the company’s focus has always been on clean label ingredients, which is why the brand never uses modified starches or artificial gums in its soups. McCann mentioned consumers often reach out to learn more about the types of additives Pacific Foods uses in its offerings. Of most concern? “Corn-based starches,” she said, “because of the potential for corn to be genetically engineered.” Because of this, Pacific Foods has noticed its consumers generally prefer seeing native tapioca or rice starch on the labels of its sauces and soups.

Challenges and SolutionsWhen it comes to soups, sauces and dressings, getting the texture right is critical. That’s

why the biggest challenge in replacing artificial gums and modified starches is ensuring that consumers don’t detect a sensory difference between the clean label options they demand and the conventional offerings they’re used to.

According to Roche, the biggest formulation challenge, then, is that clean label, native and organic starches and gums aren’t as “robust” as their conventional counterparts. “Because of this, it requires us to use more of a native starch than a modified starch, or use a combination of a starch and a gum to get the same effect,” he explained.

The same goes for Pacific Foods, where its clean label soups often require a combination of native starches to achieve the same end-product attributes offered by conventional soups. “The same is true for gums,” McCann said. “Product developers typically need to spend some time working with these naturally derived ingredients to get a sense for how they function in a product and, once they become familiar, they never need to go back to the modified ingredients.”

Since, according to McCann, a simple 1:1 swap may not produce the desired end result, a combination is often the answer. This brings with it trial-and-error challenges, as well as a potential for higher costs, which can be an additional hurdle.

“Especially in cream sauces, developers must be wary of break,” said Jaime Underwood, technical services manager of hydrocolloids at Cargill, pointing out another challenge for this category. “You need to use stabilizers that can withstand the freeze/thaw cycle as well as the steam table.”

Again, the answer is usually some kind of blend. Underwood said many developers need to use several ingredients, from functional native starches to emulsifiers and plant-sourced hydrocolloids, to meet the needs of a truly clean label sauce or dressing. Especially if the end food product is frozen, the sauce needs to have freeze/thaw stability, added Michelle Kozora, technical services director at Cargill. In the past, modified starches with hydroxypropyl (HP) substitution were typically used to provide water-holding ability while still offering an excellent texture when the consumer finally cooks the meal. For years, she said, these modified starches were the workhorses of the sauce world.

Modified starches were the workhorses of the sauce world for years.

Product developers typically need to spend some time working with these naturally derived ingredients to get a sense for how they function in a product and, once they become familiar, they never need to go back to the modified ingredients.

— Kelly McCann, brand manager, Pacific Foods


Achieving the right texture is so important

since it directly affects the perceived flavor—the longer the

dressing stays in the mouth, the bigger the flavor impact.

Today, however, these ingredients won’t fly with clean label consumers, and the switch isn’t always easy. As other experts have pointed out, there isn’t a 1:1 replacement for a modified food starch and, even when used at a higher rate, a single native starch may not be able to replace a modified one. For this reason, ingredient suppliers often recommend a custom blend, but also because different applications require different textures, and a native starch that performs well in one recipe may not work in another.

“Mayonnaise should have a thick, spoonable texture,” said Michael Baumber, technical service representative at Cargill. “Vinaigrettes need to be pourable. Sauces are usually quite thick with a good amount of cling.”

Achieving the right texture is so important, he said, since it directly affects the perceived flavor—the longer the dressing stays in the mouth, the bigger the flavor impact.

Cargill came up against a texture challenge when formulators developed a beetroot and chive dip, which was over 60 percent beetroot. Without modified starches, it was difficult to meet the moisture content needed for a dip. Formulators found the answer in Cargill’s new SimPure™ 99560 blend of native starches, which is capable of holding the water in a formulation and demonstrates excellent viscosity and stability. It can replace modified starches, deliver on the texture so important to this category, and hold up to the rigors of processing and the differing needs of acidic and neutral pH systems. Plus, Kozora said, it can withstand up to 12 freeze-thaw cycles, performing on par with the modified starches currently in use.

To meet demand for such ingredients, Tate & Lyle recently expanded its line of CLARIA® Functional Clean Label Starches with the introduction of two new instant starch products: CLARIA Instant 340 and 360. According to the company, these new launches are versatile enough for salad dressings, instant gravies and soups, providing immediate viscosity in high-solids systems and easily building texture in cold-processed applications like salad dressings.

At BENEO, the answer lies in native rice starches, which Peters said are ideal for sauces and soups (in addition to snacks, convenience meals and seasonings). Its Remypure rice starch is clean label, gluten-free, hypoallergenic, easily digestible and also provides “a level of performance that is comparable to chemically modified starches,” Peters said, “thereby offering manufacturers the opportunity to incorporate Remypure in a range of products.”

For soups and sauces, the fact that Remypure offers the smallest granule size of the starch family can come in handy, Peters added. “The uniqueness of rice starch as an ingredient compared to other starches relates to its small granule size to benefit mouthfeel,” he explained, adding that it’s an ideal fat replacer as it mimics “indulgent, palatable, creamy, process-stable, spreadable” attributes.

I also see great potential in using things like water and temperature to expand the functional benefits of many native starches without impacting product labeling or consumer acceptance.

— Michelle Kozora, technical services director, Cargill

17 Food Insider Journal

As consumers become more educated about the ingredients in their soups and dressings, pectin is a safe bet as far as gums go, Underwood said. “Found in apples and citrus fruits, pectin is well accepted by consumers,” she said, noting it also works well in thicker marinades and dressings as a gelling agent, thickener and stabilizer.

What’s Next?Going forward, clean label gums and starches will

continue to play a central role in better-for-you sauces, soups, dressings and marinades because, unlike trendy flavors and nutrients, the right texture will never go out of style.

“Texture is central to everything we do,” Baumber said. “Food has to have the right texture or consumers won’t buy your product again. Exotic flavors may create some excitement, but the majority of our pleasure from food comes from texture.”

Cargill is currently looking at the benefits of additional and unique starches for applications in soups, dressings and more. “I also see great potential in using things like water and temperature to expand the functional benefits of many native starches,” Kozora said, “without impacting product labeling or consumer acceptance.”

And, as consumers continue to embrace clean label products overall, Peters doesn’t expect their demand for better gums and starches to wane any time soon.

Also on the horizon? McCann predicts less of a cost barrier for natural gums and native starches as demand for clean label increases. And, according to Mintel, since natural and better-for-you options hold the key to revitalizing a sluggish sauce market going forward, that demand will likely come to pass.

Found in apples and citrus fruits, pectin is well accepted by consumers.

— Jaime Underwood, technical services manager-hydrocolloids, Cargill

Food has to have the right texture or consumers won’t buy your product again. Exotic flavors may create some excitement, but the

majority of our pleasure from food comes from texture.

Market Opportunities for Clean Label Gums & Starches January 2018


A merican cuisine has undergone a renaissance of sorts in the last 10 years, with the heightened focus on ingredient purity and preparation processes

contributing to next-level gastronomic experiences. In 2008, two Brown University students, Scott Norton and Mark Ramadan, decided oft-overlooked condiments also should benefit from that same level of attention.

Charmed by the simplicity of a “lost” recipe documented by an intrepid globe trekker named Sir Kensington (which they found filed away and forgotten in the school’s library), the pair set out to revive the recipe—a ketchup—in faithful homage to the Sir Kensington tradition but with a contemporary attention to high quality.

In 2010, Norton and Ramadan officially established their company, Sir Kensington’s, in New York’s SoHo district, where the company now manufactures 20 total SKUs spanning two ketchups, 10 mayonnaises, four mustards and four iterations of Fabanaise, a vegan mayo made with aquafaba (an egg alternative that’s simply the viscous water left behind after cooking chickpeas).

INNOVATION IN ACTION

Sir Kensington’sHeadquarters: New Yorksirkensingtons.com

by Joanna Cosgrove

Recounting their beginnings in a blog post, Norton and Ramadan explained they wanted to build a business that conveyed their appreciation for the role food plays in our lives. “Food fosters community and intimacy between people. Over a meal, strangers can become friends, and friends grow closer,” they wrote. “Food creates intimacy with nature, becoming a thrice daily opportunity to connect with the natural world where food begins.”

They also described why they were charmed by the notion of creating condiments that enhanced the eating experience. “So much of our food is prepared and eaten without the thoughtful reverence it deserves,” they wrote. “We saw condiments worthy of improvement because they’re universal, inseparable from food culture, and allow

Sir Kensington’s:

Condiments With Character

http://www.sirkensingtons.com

anyone to add flavor and individuality to their food. In other words, condiments live at the intersection of cooking and eating.”

The first challenge was to create the holy grail of condiments, ketchup. But this wasn’t going to be any ketchup, it had to be the quintessential ketchup with nothing less than a perfect flavor balance—and the process was a lot harder than they thought it would be.

“It was only after countless recipes, test batches and ingredient trials (not to mention first-degree burns from simmering tomato sauce) that we had produced a product worthy of public palates,” they recalled. “Slowly and deliberately we’ve grown to offer over a dozen condiments, which are sold in thousands of stores and served by hundreds of discerning chefs. As we’ve grown, we’ve applied our original philosophy, vowing not to make it unless we can make it better.”

The process of creating that ketchup crystallized their mission: to bring integrity and charm to ordinary and overlooked food by committing to high-quality standards at each step of the product creation process.

Central to that mission are the four tenets of teamwork, honor, long-term thinking and, ultimately, making condiments with character. “We foster a supportive environment where our team works with a sense of purpose, potential and play [and] we act with honor, even when no one is looking [because] our workmanship is evidence of who we are,” Norton and Ramadan wrote, adding that character hinges on a distinctive sentiment they refer to as “Kensington Quality,” their own combination of integrity and charm, with a nod to the dandy character of Sir Kensington himself.

That dedication to integrity and quality caught the eye of Unilever, which acquired Sir Kensington’s for an undisclosed amount in April 2017. Both Ramadan and Norton continue in their roles at Sir Kensington’s. According to Norton, working with Unilever allows the company to more rapidly expand distribution while holding true to its values as it helps define the next generation of good food.

“We are excited to bring Sir Kensington’s into the Unilever family. Their mission to bring ‘integrity and charm to ordinary and overlooked food’ is very much in line with our Unilever Sustainable Living Plan,” said Kees Kruythoff, president, Unilever North America. “Sir Kensington’s is an innovative business with outstanding products and a leader in the organic and natural marketplace. We look forward to leveraging our joint understanding of food trends and consumer preferences to significantly grow the business.”

The first challenge was to create the holy grail of condiments, ketchup. But this wasn’t going to be any ketchup, it had to be the quintessential ketchup with nothing less than a perfect flavor balance.


what has never been done before,” Vellevieille said. “We take a long-term approach to these supplier partnerships, by helping advance their capabilities in a way that allows us to grow together.”

To that end, the company has created strong supply chains for its mayonnaise products, whether that’s sourcing Certified Humane free-range eggs or aquafaba for its Fabanaise vegan mayo.

All of Sir Kensington’s products are Non-GMO Project verified. Its mayonnaise line is Certified Humane® and its Fabanaise, Ketchup and Mustard lines are all Certified Vegan.

Villevieille explained that the company’s supply chain is fortified by the long-term partnerships, along with a strong mutual understanding of the capacity and needs each entity brings to the table. “Each year we invite our suppliers to our headquarters to reflect on the past year’s successes and plans for the year ahead,” she said. “With partners who share our values, we build unique ingredient supply chains and pioneer innovative production techniques.”

Products With PurposeWhen dreaming up new products, Villevieille said the company

resists the urge to make “me too” type products and chooses instead to invest time to develop and formulate products optimally, making sure the product is right. Currently, it takes Sir Kensington’s about nine months to transition a concept to its first production, with the product

Slowly and deliberately we’ve grown to offer over a dozen condiments, which are sold in thousands of stores and served by hundreds of discerning chefs. As we’ve grown, we’ve applied our original philosophy, vowing not to make it unless we can make it better.

— Mark Ramadan (left) and Scott Norton (right), co-founders, Sir Kensington

Ethos-Driven Taste SensationsAll of Sir Kensington’s condiments are

manufactured with the same emphasis on clean, natural ingredients. “Our ethos guides us to source from as close to nature as possible, making our products more refined because they’re less refined,” said Laura Villevieille, the company’s vice president of product. “Our inspiration comes from the time of food before it was transformed by industry, thoughtfully employing traditional ingredients like citrus, salt and vinegar to preserve our products in place of chemicals, and creating taste with real food ingredients instead of artificial flavoring.”

The company pays close attention to the interplay of ingredient flavor, texture and quality during the formulation process. “We don’t believe in speaking about taste without holistically thinking about mouthfeel and ingredients,” Villevieille said. “Our focus on taste is built on sourcing carefully and making our products with the highest-quality ingredients. For example, our mayonnaise tastes as good as it does because we source Certified Humane® free-range eggs. This ingredient is the driving force differentiating us from other mayonnaise options.”

From a starch perspective, the condiments make use of xanthan gum, which Vellevieille said provides the best suspension in products like the company’s Special Sauce. “This helps us distribute our relish particulates evenly throughout the product,” she said. “It was important to us that the flavor and texture of that ingredient be present throughout the product.”

Sourcing clean, high-quality ingredients isn’t without its difficulties; but, so far, Sir Kensington’s has innovated its way through the challenges associated with creating new supply chains. “Our suppliers must be reliable, flexible and scalable to us as a customer to help us do for our customers


Food For Thought

Sometimes an overlooked category can yield the most market opportunity for a clean label makeover.

Don’t rush to grow a product line just for the sake of expansion. Make sure there is a need and get it right.

Partnering with suppliers that share your values helps build unique ingredient supply chains and innovative production techniques.

eventually landing on specialty/natural retailers’ shelves in about a year. The company is on track to expand to conventional grocery stores in early 2018.

“It is this quick clip of innovation that allows us to respond to our consumer base and maintain a foothold as innovators in the condiment space,” she said.

Villevieille echoed the sentiments of founders Norton and Ramadan in saying the company is inspired to tinker with products that haven’t seen much innovation or have room for improvement. “Taste is paramount as we work to challenge the status quo,” she said. “We take a chef’s approach to our work, which means finding inspiration in ingredients, creating recipes from scratch, and delivering flavor that reminds people why they love food.”

To help with its advertising and marketing activities, the company taps into the fun food experience across several mediums while playing up the great taste of its products. “We have a lot of confidence in the taste of our condiments, so we like to create taste experiences,” Villevieille said, adding the company does a lot of in-person activation at events and in-store demos. The brand even had a food truck travel across the country on a mission dubbed “Road Trip to Dip.”

She concluded: “Through our social and digital, we use a combination of organic and paid posts that inspire culinary curiosity and highlight our quirky brand personality, mission and values, and food that brings people together.”

Our mayonnaise tastes as good as it does because we source Certified Humane® free-range eggs. This ingredient is the driving force differentiating us from other mayonnaise options.

— Laura Villevieille, vice president of product, Sir Kensington’s


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