ASSOCOM INSTITUTE OF BAKERY TECHNOLOGY & MANAGEMENT

ASSOCOM INSTITUTE OF BAKERY TECHNOLOGY & MANAGEMENT

Plot No. 30/25, Knowledge Park - III, Greater Noida - 201306, Uttar Pradesh (NCR Delhi), India

Volume - 5 Issue - 11

Month : November 2016

Baked Goods – Meeting Consumers’ Demands

aked goods manufacturers are starting to reduce or replace ingredients to cater to millennials’ penchant Bfor food products with consumer-friendly

ingredient lists.

One of the hottest topics of discussion at the Institute of Food Technologists’ Annual Meeting and Expo in Chicago in July, ”clean label,” has become one of the biggest trends in the food industry.1 Yet there is no standard definition of the term, observes Caroline West Passerrello, Registered Dietitian Nutritionist, spokesperson for the Chicago-based Academy of Nutrition and Dietetics.2 “In general, when someone is looking for a clean label, they are looking for transparency and their food being as close to its natural state as possible,” she says.3

Aaron Clanton, manager of standards and calibration for the Baking and Food Technical Services Department of the American Institute of Baking (AIB) explains that “clean label” has been used to describe foods that may be free from ingredients that consumers want to avoid.4 “Often consumers are looking for simple ingredients that they can easily recognize, such as flour, yeast, sugar, and eggs,” he says.5

A number of U.S. food manufacturers and restaurant chains have decided that they can survive and thrive only by catering to the desires of the nation’s largest generation.6 On August 1, 2016, McDonald’s announced intentions to remove high-fructose corn syrup from its buns by the end of the month, as well as artificial preservatives from its chicken nuggets, breakfast sausage patties, and egg products.7

Consumer-friendly ingredient lists pose particular challenges for manufacturers of baked goods, explains Clanton.8 “Because there are no official definitions of “clean label” to guide manufacturers, each is on its own to decide an approach,” he says. “Many of the ingredients that have fallen out of favor with consumers have functional roles in bakery products and often improve their quality and eating characteristics.”9

“As manufacturers work to remove any ingredient, they must carefully balance their process controls as well as

explore alternative ingredients,” Clanton says.10 “In some cases, good alternatives are difficult to find,” points out Clanton, forcing manufacturers to choose between removing the ingredients in question resulting in a reduction in quality, or allowing the ingredients to remain. “Either choice presents the risk of losing consumers,” he observes.11 Indeed, millennials are already wary of food companies, according to Mintel.12 “With growing distrust and a greater desire for transparency from food manufacturers, millennials want brands to form a genuine, authentic connection with them, and brands should recognize the impact millennials have on their businesses,”

Amanda Topper, Food Analyst at Mintel notes on the company’s website.13

Solutions and opportunities : To please consumers, baked goods manufacturers are starting to replace emulsifiers, preservatives and oxidizing agents, notes

Clanton.14 “In many cases, the ingredients they are removing have long chemical names that raise concerns,” he says.15

Many baking companies use natural fermentation derivatives as a substitute for preservatives.16 “For emulsifiers and oxidants, most bakers are relying on enzyme solutions. Enzymes are naturally occurring proteins that help catalyze reactions in living organisms, including humans,” Clanton explains.17

The growing number of companies converting from synthetic to natural colors are challenged to maintain color

consistency and stability.18 During baking or processing, natural colorants such as anthocyanins may change

their hue.19 In addition, the shelf life of these colorants can be affected by temperature

and exposure to light.20 Moreover, when using natural food coloring, manufacturers have to make sure that the source – whether beet juice for red or turmeric for yellow—does

not impart a robust taste that would clash with the final product.21

In response to concerns about excessive sodium in the American diet, baked goods

manufacturers may want to reduce sodium in their products as well. In bakery products, salt serves many functions, including inhibiting the growth of unwanted microorganisms by reducing water activity, extending shelf

he Food Safety and Standards Authority of India (FSSAI) published its new draft Regulation called the T“Food Safety and Standards (Approval for Non-

Specified Food and Food Ingredients) Regulations, 2016” The draft Regulation outlines new product approval procedures for all food products not already covered under any preexisting Regulations under the Food Safety Act, 2006. These products have been termed by FSSAI as “non-specified food and food ingredients.” Comments are invited from the WTO member countries on the draft Regulation and the timeline to comment expires on December 16, 2016.

The main features of the draft Regulation are noted below:

• Non-specified food products or food ingredients are defined as those products which are not allowed to be manufactured, stored, sold, distributed or imported under any other Regulation under the Food Safety Act, 2006. These products will require prior approval from FSSAI. The various categories of food products covered under this category are :

Novel foods or foods containing novel ingredients which do not have a history of human consumption in India; ? Food ingredients that have a history of human consumption in India, but are not specified under and preexisting Regulations under the Food Safety Act,

•

life, and enhancing texture and flavor.22 By using Cargill Salt’s Alberger® Fine Flake Salt, which has a larger surface area that provides superior adherence and rapid solubility compared to granular salt, manufacturers may be able to reduce the total amount of sodium in their baked goods without compromising flavor.23

Baked goods manufacturers may also distinguish themselves through how they source their ingredients, such as highlighting using only cage-free eggs.24 Millennials report considerable interest in purchasing food brands they feel follow ethical manufacturing practices, a trait closely related to their desire for food companies to be transparent in regards to their manufacturing processes.25

The good news for baked goods manufacturers is that consumers like to try new and bolder flavors, which offers many opportunities for innovation.26 Some companies are adding savory flavors to traditionally sweet products such as doughnuts and cupcakes. The “sweet spicy” trend has led to flavor marriages such as chocolate muffins with chili and hot sauce dark-chocolate brownies.27

Another rising trend is to pair sweet and salty within one snack.28 Again, Cargill Salt’s Alberger® Brand Flake Salt

products offer the potential to create a product with an appealingly salty taste and a lower sodium content than one made with granular salt.29

The expansion of the breakfast category30 may also provide a significant opportunity for baked goods manufacturers. I d e a s c o u l d i n c l u d e combining consumer-friendly ingredient lists with artisan-style breads and rolls or grab-and-go meals that can be enjoyed for breakfast or for snacking later in the day.31,32

Millennials appear to have purchasing power that cannot be overlooked. Clanton notes that offering products with consumer-friendly ingredients “allows bakers to meet current consumer demands. Bakers can innovate new products or reformulate existing products to meet the demand.

2006; ? New additives and processing aids; and ? Foods manufactured or processed using novel technology

• The proposed Regulation includes the applications formats along with details on the supporting

documentation required while applying for product approval.

Annexure I: Application for approval of non-specified food and food ingredients

Annexure II: Application for:

Novel foods or foods containing novel ingredients or

processed with the use of Novel technology ? Food ingredients with a history of human consumption in India but not specified in any Regulations under the Act ? New Additives ? Processing Aids and Enzymes ? Foods and food ingredients consisting of or isolated from micro-organisms, fungi or algae

For additional information on the procedure and formats, interested readers may refer to the full text of the notification pasted at the end of the report or on the website of FSSAI at www.fssai.gov.in/.

Comments should be sent to: The Chief Executive Officer Food Safety and Standards Authority of India 3rd Floor, Food and Drug Administration Bhawan, Kotla Road New Delhi – 110002 Email: baranip@yahoo.com

•

FSSAI Proposes Draft Regulation on New Product Approval Procedures

Admission Open for 2016-17

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Brand consistency puts Milk Bikis ahead for Britannia

ilk Bikis is one of the oldest brands from Britannia’s product portfolio. Ali Harris Shere, MDirector (Marketing), Britannia Industries

Limited, and a company veteran, discusses how Milk Bikis has survived the test of time and emerged a popular proposition among many a household. Edited excerpts:

What is the size of the biscuit market in India?

For 2015-16, A.C. Nielsen estimated the biscuit market size to be over Rs.25,435 crore (annual NSV) and 2.39 million tonnes. Britannia is the market leader in terms of value market share.

Under what category does Milk Bikis fall?

Milk Bikis is categorized under the ‘Milk Biscuits’ segment, where it is the market leader among players such as Horlicks Biscuits, Parle Milk Shakti and Sunfeast Milk Magic.

What is the size of this segment?

Milk biscuits segment clocked Rs.1,126 crore, contributing to 4.4 per cent of the total biscuit sales for the year 2015-16. In certain states such as Tamil Nadu, the sales of the segment to total biscuit sale is as high as 21 per cent.

How much does Milk Bikis contribute to Brittania’s sales?

Milk Bikis dominates the milk biscuit segment with more than 60 per cent share of this segment, nationally. Since 1978, when it was first introduced, Milk Bikis has consistently provided biscuits made of the highest quality, filled with essential nutrition that a growing child needs. In fact, it wouldn’t be wrong to say that in a lot of households Milk Bikis with a glass of milk is the only way in which a mother is able to get her child to consume milk.

What is the growth rate?

For FY 2015-16, while the milk biscuits segment grew at only 4 per cent, Milk Bikis grew at a rate of 15 per cent, thereby gaining further share in a segment it already dominates.

How has the brand catered to consumers in terms of price points?

Keeping in mind the various occasions and varied needs of consumers, Milk Bikis comes in a range — from Rs.5 to Rs.32.

Milk Bikis dominates all price points that it offers to consumers. Tamil Nadu is the biggest state for Milk Bikis, where it commands a market share of over 87 per cent in the milk biscuits segment.

Why is it that the product seems to have greater appeal in Tamil Nadu?

Tamil Nadu would feature in the Top 5 States for most of our brands. However, for Milk Bikis the love that it enjoys from consumers in Tamil Nadu is something else completely.

Through the extensive consumer connect sessions we do in the State, we have come to know that Milk Bikis is trusted by moms as the first solid food that an infant is ever fed; the faith that mothers place in Milk Bikis is really quite unparalleled. While the need for having a milk biscuit stemmed from the

fact that Tamil Nadu has been historically a milk-deficient state, now when the state is no more milk deficient too, Milk Bikis is still an integral part of their lives.

How is it marketed in Tamil Nadu, especially, and across the country, in general?

While the communication has changed with times, Milk Bikis has maintained a very consistent brand proposition over the last four decades. It has always spoken to mothers of young kids in the age group of 6-14 years of age, impressing upon them the need for providing the right nutrition during the formative years and that a glass of milk with Milk Bikis goes a long way in doing just that.

What is the way forward?

We have just introduced a new communication campaign for Milk Bikis.

We believe good habits are formed early in life, and habits make a person.

Corporate Office ; Assocom Institute of Bakery Management & Technology Plot No. 30/25, Knwledge Park - III, Greater Noida - 201 306Tel. : +91-120-2428800 (50 Lines) Fax : +91-120-2428811 Email : aibtm@aibtm.in Website : aibtm.in

Clean label a hot topic at IBIE 2016

onsumers want azodicarbonamide and potassium bromate out of their bread, but they don’t mind Cartificial dyes in a birthday cake, said Abby Ceule,

director of market management for breads at Corbion Caravan

“Bottom line, people are less focused on ingredients and health when they’re eating sweet goods,” Ms. Ceule said during a panel presentation at t h e I n t e r n a t i o n a l B a k i n g I n d u s t r y Exposition (IBIE), held Oct. 8-11 in Las Vegas. “When we are looking at sweet goods, we shop with our eyes. People are less likely to

turn that package around and see what’s in it.”

Two years ago, Corbion Caravan, a Lenexa, Kas.-based bakery ingredient supplier, conducted research to better understand consumer perceptions and expectations of clean label, a term that has not been consistently defined across the industry.

“The definition isn’t quite so tidy… is it about something that’s healthier? Is it about specific ingredients?” Ms. Ceule said. “From this survey, we found out that some consumers are really zoned in on ingredients, and some are looking for a healthier label around reduced calories, reduced fat, and then there are other consumers who don’t care what’s out there; they’re just buying based on price.”.

The study revealed that 60% of consumers say the type of ingredients in a product has an impact on their purchasing decisions. Of these individuals, 43% are nutrition-focused, 33% are ingredient-focused, and 24% are less engaged.

Of the latter group, Ms. Ceule said, “There are some consumers out there who say, ‘ingredients matter to me,’ but they’re not willing to pay more for it. They’re not going to make every decision based off of it, but when there’s something on the front of the pack that really speaks to them, they’re going to pick it up.”

I n g r e d i e n t - f o c u s e d c o n s u m e r s a r e l e s s concerned with front-of-pack claims and nutritional information, “but they’re going to go to that ingredient panel, and they’re going to look and see what’s in it,” she

said. “’Can I pronounce it? Is it familiar? Is it something I’m trying to avoid?’”

Conversely, nutrition-focused consumers, the largest segment, are driven by dietary factors and general health concerns.

“They may be just looking for lower-calorie foods,” she said. “They’re less likely to be impacted by the length of ingredients.”

Both ingredient-focused and nutrition-focused consumers are willing to pay more for products with 12 or fewer ingredients, the research revealed. However, Ms. Ceule noted, taste, convenience and a host of other factors remain critical to driving purchasing decisions.

“At the end of the day, consumers are telling us what they want, but… from a supplier s t a n d p o i n t a n d a manufacturing standpoint… where are they willing to make the tradeoff?” Ms. Ceule said. “They say they want these things, but in reality are they willing to pay for it? Are they willing to take some of the functional tradeoffs that there are with going clean label (such as) a taste difference? Some are, and some are not.”

And when it comes to sweet goods, the expectations of taste

and appearance are especially important.

“Sweet goods are where people are willing to have a little more leniency because it’s an indulgence,” Ms. Ceule said. “If I think about a standard birthday cake, my guess is they’re probably not going to be as concerned there. That’s not to say in the future there may not be more of a focus on it, but we haven’t seen that thus far.”

While consumers are less concerned about ingredients in sweet goods, they are m o r e l i k e l y t o p a y attention to front-of-pack claims, she said.

“We found that while people are not going to turn around the label, they may be willing to look at a front-of-pack claim, but don’t make too many of them,” she said. “If you have one front-of-pack c l a i m t h a t s ay s ‘ n o preservatives,’ that may be

enough for a sweet goods consumer to go ahead and make that purchase.”