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How to create effective ROS ads

A pair of computer monitors with arrows pointing to sections highlighted on each screen.

How to create effective ROS ads

A pair of computer monitors with arrows pointing to sections highlighted on each screen.
Source: Sosland Publishing

07.24.2023  ·  INSIGHTS FOR MARKETERS

Placing run of site (ROS) ads is a cost-effective way to get your brand’s message in front of a broad audience. However, a successful ROS ad campaign requires a strategy for creating ads that catch the audience’s attention. A ROS ad is like a billboard on the internet—you have a limited amount of time before the audience member scrolls past your ad. By following some important tips and tricks, you can create an effective ROS ad campaign that builds brand awareness and ultimately generates leads.

What is ROS advertising?

ROS advertising strategically positions ads beside content on various pages of a website. This outbound marketing tactic has several advantages. First, any potential visitor to the website can encounter your ROS ad. If it is a high-traffic website, you have the opportunity to extend your company’s reach and gain further brand recognition. Additionally, the amount of effort required to develop a ROS ad campaign tends to be less time-consuming than targeted marketing tactics. Additionally, the amount of effort required to develop a ROS ad campaign tends to be less time-consuming and often more cost-effective than targeted marketing tactics.

To capture a viewer’s attention and potentially get one to act, follow these important tips to develop an effective ROS ad.

ROS ads should include:

1. Simple, short copy coupled with imagery that supports your message. You will have only seconds of the viewer’s time, so the message should be strong enough to immediately catch the audience’s attention.

2. A compelling value proposition to entice potential customers. This might include a desirable offer, such as a free trial of a service, a promotional discount, or a solution to a challenge they may have.

3. A prominently featured company logo to build brand recognition with customers and prospects.

4. A strong call to action (CTA) to encourage a prospect to click through to learn more. Additionally, your CTA should create a sense of urgency with phrases such as: “Learn more,” “Watch now,” “Get started,” or “Claim your free trial.”

5. Animated features that can draw attention to your ROS ad. When using animation, it is important to note that less is more: simplicity with movement can be eye-catching and highlight your brand’s message.

ROS ads should NOT include:

1. Web domains, phone numbers, or other contact information that can be located once a prospect clicks on your ad and lands on your company’s website.

2. Long, complex copy. Audience members have limited time to interact with your ROS ad, so your brand’s message should be concise and powerful to encourage action.

3. Distracting elements and complex design features. These could deemphasize your CTA and be difficult for web users to comprehend.

4. Branding and messaging which differs from what is used elsewhere in your company’s marketing strategy. Be sure to use consistent branding across your entire campaign to maintain consumer trust and reduce confusion.

5. Hard to read fonts. Avoid using cursive, thin, small, or all uppercase fonts. This will make sure your CTA is clear and easily understood.

6. Colors that are too similar or cliché. Use fresh, bold colors that contrast your font color so that your CTA stands out. Avoid using color combinations that would convey an unintended association, such as red and green colors when your brand isn’t representing Christmas.

7. Animation that is too quick to keep up with. The animated features should allow the audience to have enough time to process your brand’s message.

In short: be concise, present an attractive offer with a CTA, be consistent with your message, and don’t attempt to cram too much into a ROS ad. By following these tips, you will be well on your way to creating an effective ROS ad campaign. Speak with a Sosland Publishing media expert today to learn more about integrating this outbound marketing tactic into your company’s marketing strategy.

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How inbound marketing helps generate leads

An envelope with a letter pulled from it next to a computer screen representing inbound marketing tactics.

How inbound marketing helps generate leads

An envelope with a letter pulled from it next to a computer screen representing inbound marketing tactics.
Source: Sosland Publishing

06.21.2023  ·  INSIGHTS FOR MARKETERS

To convert your prospects into customers, it is crucial that your brand has a successful marketing strategy. Utilizing inbound marketing tactics is an effective way to generate leads. While it is also beneficial to employ outbound tactics alongside an integrated inbound marketing strategy, inbound tactics will guide your prospects through their respective buying journeys with engaging content online and thereby drive sales growth. 

What is inbound marketing?

Inbound marketing is a marketing strategy focused on cultivating a loyal audience across your online media channels. By creating content that draws your target audience to your website and social media feeds, you have the opportunity to engage with prospects as they travel along their buying journeys, building trust in real time as they decide whether it is the right time for them to buy. Because of the personal nature this strategy takes, rather than the more general nature of traditional marketing methods, inbound marketing campaigns provide more opportunities to pre-qualify leads for your company.

Start by creating valuable information

Pre-qualifying prospects starts by providing value to your target audience. By posting on social media, for example, you can have a dialogue directly with prospective customers. By directly answering questions they pose related to your products or services, you can encourage buyers to make an informed purchase more imminently. Along the way, others following your social media feeds will see the helpful and engaging conversation, which helps build your brand’s reputation over time.

Some other examples of effective inbound marketing tactics include:

  • Publishing a native article in a highly regarded industry newsletter to keep your audience informed of your company’s solutions for their biggest challenges
  • Hosting a webinar to educate your audience about industry trends or the latest in process applications
  • Creating an engaging case study video with a customer to showcase your capabilities and expertise
 
Each of these marketing tactics builds out, piece by piece, a robust online library of digital assets ready to assist your future customers as they travel along their personal buying journeys. In addition, inbound marketing enables the creation of a stronger pipeline with a solid list of leads that your sales team can qualify much more quickly.

Track engagement and leads

A major benefit of deploying an inbound marketing strategy is that audience engagement can be directly monitored in real time. By using the tracking functions of the software used to deploy various digital marketing tactics, you have immediate access to campaign analytics. This means that with some time and attention, leads can be pre-qualified for your company’s sales team which can lead to a more solid sales pipeline.

In addition to lead generation opportunities resulting from inbound marketing tactics, new opportunities are created for tracking a prospect’s engagement with your brand, such as an analysis of:

  • Impressions, click-through rates, and leads from sponsored native content
  • Contact information (leads) from registrants attending a webinar or other virtual event
  • Followers, reactions, comments, and overall impressions generated from social media posts
 

Enhance your marketing strategy

Cultivating a loyal audience over time through an inbound marketing strategy is most successful when traditional marketing strategies are also being employed. Speak with a Sosland Publishing media expert today to craft your next marketing strategy.

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The do’s and don’ts of creating videos for your products

An open box with a video play button on it.

The do’s and don’ts of creating videos for your products

An open box with a video play button on it.
Source: Sosland Publishing

05.26.2023  ·  INSIGHTS FOR MARKETERS

Equipment and ingredient companies are increasingly using video to introduce new products to prospective buyers. This medium provides a powerful snapshot of an item’s capabilities and allows viewers to see a product in action.

However, simply creating a video doesn’t guarantee that you’ll make a lasting impression with decision makers. There are some fundamental do’s and don’ts that must be followed if you want to captivate your target audience. 

DO: Partner with the pros

While it may be tempting to go the DIY route, avoid this approach when possible. Teaming up with freelancers or a production company will help ensure your video looks polished and professional, which lends more credibility to your brand. Additionally, by working with experts, you can focus on developing compelling messaging rather than learning the ins and outs of video editing software such as Adobe Premiere Pro.

Before you partner with freelancers or a production company, be sure and ask them the following questions to see if they are a good fit for your brand:

  1. What type of videos do you specialize in?
  2. What B2B companies have you worked with in the past?
  3. Do you have a reel or examples of work you’ve done with manufacturers?
  4. How do you prefer to collaborate with your clients?
  5. Can you work within my budget and timeline?
  6. How much guidance will I receive on this project?

DON’T: Bore your audience

As more brands leverage video marketing, standing out from your competitors becomes more important than ever. Instead of simply showcasing the machinery alongside background music, engage your audience with a compelling narrative or use your brand’s in-house technical experts to connect with viewers and bring a human element to the screen.

DO: Address pain points

If a prospect is watching your video, they want to know what problems your machinery or ingredients can help them solve. Avoid simply listing features and connect the dots for them by providing meaningful information that calls back to their everyday work.

DON’T: Deliver every detail

While addressing pain points is critical, you don’t need to answer every question a viewer may have. Buyers typically watch a supplier or manufacturer’s videos to get a quick break down of the product and to see it in action. For detailed information, they’ll turn to your website or sell sheet. Stick to addressing one or two major challenges to ensure your video is easy to digest and keeps the viewer’s attention.  

DO: Include a CTA

Give prospects an action to take at the end of your video by including a call-to-action (CTA). Whether you want them to book a meeting with your sales team or visit the products page of your website, your message should be concise, relate to the product, and be easy to act on.

DON’T: Assume audio will be played

Adding captions to your video is critical for engaging viewers, increasing accessibility, and boosting SEO efforts as more viewers opt to watch video without sound.

Captioning your brand’s videos creates an inclusive experience and increases the likelihood of your video not only being watched but watched longer. According to a recent study by Facebook, captioned video ads increase video view time by 12%. Uploading captions also improves your video’s ranking on websites like Google and YouTube by providing search engines information beyond what’s in the content’s title and description.

As video content and consumption habits continue to evolve, it’s crucial to keep up with the medium’s best practices. Connect with a Sosland Publishing media expert for the latest tips and resources to ensure your video reaches the right audience.

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Traditional vs. inbound marketing: What to know when developing your brand strategy

Traditional vs Inbound marketing

Traditional vs. inbound marketing: What to know when developing your brand strategy

Traditional vs Inbound marketing
Source: Sosland Publishing

04.27.2023  ·  INSIGHTS FOR MARKETERS

When developing a marketing strategy, there are two general ways to go about it. The first is traditional or “outbound” marketing—the strategy with which most consumers and businesses are familiar. The second is inbound marketing, which has become increasingly popular with the rise of the internet and social media. Both strategies have benefits for growing your business and challenges that need to be carefully considered when developing your marketing or brand strategy.

How do traditional and inbound marketing compare?

The main difference between traditional and inbound marketing strategies concerns how your messages reach your potential customers. You are employing a traditional, outbound marketing strategy when you push your brand’s messaging out to customers. B2B marketers commonly use physical media for outbound tactics, such as presenting prospects with ads in a printed magazine or by running commercials on channels they are likely to watch. This means your message is appearing in front of your potential customers when your product or service is not already on their minds.

By contrast, you are employing an inbound marketing strategy when you create content that draws people in to your website or other online environments. This approach involves preparing trustworthy content ahead of time so buyers can find the answers they are looking for at their own pace. You can achieve this by, for example, having an active social media presence with engaging content or by creating videos that help address common questions that prospects may have about your product.

What are the benefits of traditional marketing?

Traditional marketing tends to be the more general of the two strategies, and it has the widest scope. The aim is to get your messaging in front of as broad of an audience as possible, and the goal is to convert that audience into customers.

Examples of outbound marketing include promotional tactics designed to draw attention and lead to product sales, such as exhibiting at trade shows, placing magazine or website ads, sending direct mail, or running commercial breaks on podcasts. Traditional marketing has the benefit of reaching a wide audience, which helps to build brand awareness with prospects who may be otherwise unfamiliar with your products and services. Further, this traditional marketing strategy has the potential to yield immediate results: some buyers may be in a position to place a purchase order right when they receive your company’s message.

What are the challenges of traditional marketing?

When deploying only traditional marketing tactics, measuring engagement can be difficult due to its primarily physical nature. Your company can track cold calls, event attendance, pay-per-click advertising, and open rates from email blasts, though this likely won’t paint a complete picture of how your message is being received. Traditional tactics elevate your brand and connect you with a large audience, and using these traditional marketing tactics without a complementary inbound marketing strategy might make it more difficult to track audience engagement. This could in turn make it more difficult to convert them into customers.

What are the benefits of inbound marketing?

Inbound marketing is a more subtle, non-invasive marketing strategy. The goal is to cultivate a loyal audience over time. Customers participate in a potentially lengthy buying journey, and along their journey they need helpful and reliable information, feedback, and positive interactions with a company before they decide whether to make a purchase.

Examples of inbound marketing include many kinds of informative digital content, such as hosting webinars, publishing thought leadership articles on your company’s website, posting sponsored content on other trusted and authoritative websites, crafting timely and engaging social media posts, or serving up sponsored content in a newsletter. It is important to create engaging content that makes your products easy to find, preemptively answers a buyer’s questions, and distinguishes your brand from the competition.

A major benefit of this approach is that your brand’s messaging can be measured for audience engagement through various software tools. This means that you can guide customers through their entire buying journey and cultivate brand loyalty along the way. Keep in mind that it is beneficial to employ outbound tactics alongside an integrated inbound marketing strategy. That way, you introduce your brand to as broad of an audience as possible and then guide those prospects along their respective buying journeys.

What are the challenges of inbound marketing?

Inbound marketing tactics require a significant time investment to continuously create content and thereby stay relevant online. So, using inbound marketing tactics without the assistance of traditional marketing strategies can result in a longer buying journey for your prospects. Since an inbound marketing strategy requires careful planning, many in the food industry rely on Sosland Publishing and its respective brands for help.

Speak to a Sosland Publishing media expert about your marketing strategy

Whether you are looking to cast a wide net and promote brand recognition through a traditional marketing campaign, or you are looking to cultivate a loyal audience over time through an inbound marketing strategy, Sosland Publishing has a variety of products to support you. Speak with our media experts today to craft your marketing plan or your next campaign.

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Seven tips for writing an effective native article

Native Article Tips

Seven tips for writing an effective native article

Native Article Tips
Source: Sosland Publishing

03.23.2023  ·  INSIGHTS FOR MARKETERS

While many B2B marketers in the food and beverage industry rely on content like blog posts, white papers and infographics to build credibility and promote their offerings, waiting on results from these endeavors can be frustrating. To speed up this process and reach an even wider audience, brands are partnering with trade media outlets to release native articles.

A form of native advertising, a native article is educational content that is written by a brand and then hosted on a publication’s website alongside editorial stories. The article’s headline, copy and images reflect the tone, look and feel of other pieces produced by the publication to ensure a seamless reader experience. 

By leaning into some key tips and best practices, you can produce compelling native articles that not only quickly reach your target audience but also boost your brand’s authority and drive awareness for your products and services. 

1. Take a strategic approach

Kick off the content development process by reflecting on how your native article fits into your overall campaign strategy. Think about how the piece can complement other tactics while reinforcing your overall goal. Next, determine the article’s topic and objective to ensure the content and call-to-action (CTA) remain consistent with the campaign’s strategy.

2. Map out your content

After researching your topic and audience, determine the article’s storytelling format and generate an outline to guide your writing process. If you’re not sure where to start, follow an inverted pyramid structure to guarantee that your story is concise and easy to digest. In addition, don’t shy away from other engaging frameworks such as listicles, Q&As, checklists, how-to guides and FAQs.

3. Aim to inform readers

Your article should reflect the tone and style of the publication you are partnering with, and, most importantly, deliver value to readers. Informative or educational content positions your brand as a trusted resource and performs far better than a sales pitch.

For example, an equipment supplier looking to promote its artisan baking line could write about processing tips for Old World breads or discuss the ins and outs of scaling production. By sticking to these topics and avoiding self-promotion, the supplier boosts their industry authority and increases opportunities for engagement.  

4. Highlight your sources

Underscore your credibility by interviewing experts, citing sources and including timely data throughout your copy. Internally link to other stories on the publication’s website and externally link to research when possible to substantiate claims.   

5. Create eye-catching headlines

As readers scan websites, newsletters or social media, a range of news, ads and posts compete for their attention. This makes a powerful headline essential to getting eyes on your article. Take the time to thoughtfully craft your title while keeping the following best practices in mind: 

  • Use strong language that clearly illustrates what will be covered in the article.
  • Optimize headlines for search engines by keeping the copy under 65 characters and including relevant keywords at the beginning of the headline.
  • Spark curiosity by appealing to an industry challenge or asking a timely question.
  • Add numbers to titles if you are creating a list or presenting notable data.
  • Steer clear of clickbait and always deliver on the headline’s promise.
6. Select striking imagery

Much like a headline, an image is one of the first pieces of information a person uses to determine if they should read an article. Pictures should support your narrative and bring the story to life. If images are pixelated or lack purpose, you may lose out on pageviews.  

7. Keep the journey going

At your article’s conclusion, tie together the piece’s main points and provide readers with a clear directive that is consistent with your content’s tone. Include a CTA, keywords and follow-up content or information to create an effective message. For example, an article by ABC Company covering plant-based snack trends could include one of the following messages: 

  • Learn more about the future of plant-based snacks by reading ABC Company’s latest trend report.   
  • Sign up for ABC Company’s webinar on plant-based proteins to learn how you can give your snacks a nutritional boost.
  • Visit ABCCompany.com to set up an appointment with our R&D experts and access technical resources on formulating plant-based snacks.

Developing content that connects with your target audience can be challenging at times. But with thorough research and creative storytelling, your brand can become a trusted resource that food industry professionals turn to for their next need.

Want to learn more about making a lasting impression with native articles? Contact a Sosland Publishing media expert today and discover a new way to engage with our readers.

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Looking Ahead

By Kimberlie Clyma

December 2022

Looking
ahead

Overcoming obstacles and chasing innovation, the pet food industry prepares for its promising future.

Pet Food Processing

©Quality Stock Arts –stock.adobe.com

While no one can predict the future, taking a close look at today’s evolving industry trends can give us a potential glimpse into where we’re headed.

The pet food industry has changed substantially from the time, almost 100 years ago in 1926, when Purina launched its first dog food — Purina Dog Chow. Now pet food and treat manufacturers offer complete-and-balanced meal options found in kibble form, freeze-dried varieties and even fresh pet food alternatives sold out of refrigerated grocery cases. Today’s formulations are no longer solely made from animal proteins and byproducts, but from plants, insects and even ingredients grown in laboratories. And pet food now provides more than the standard dietary nutrients dogs and cats require — they provide ingredients to help pets with cognitive function, mobility, mood enhancement and other life-improving activities.

Pet food is so much more than it was 100 years ago. And, while no one can predict the future, it’s safe say pet food will be so much more in 100 years to come.

The innovations that have been leading the pet food and treat industry over the past 10 to 20 years will be guiding the industry in the next 20-plus years, and beyond. Transparency, sustainability, automation, humanization and premiumization are trends that are shaping the industry and the key players within it.

“Companies either can embrace and innovate — or choose to resist change and lose relevance in the market over the next several years,” said Rick Ruffolo, chief executive officer and president of Phelps Pet Products, Rockford, Ill. “It’s the right thing to do for the industry, for our customers, and ultimately, for the planet.”

Ingredient sourcing challenges have led processors to become more creative, including using upcycled ingredients, plant-based proteins and even lab-grown proteins such as this cellular-based meat broth topper for dogs from Wild Earth. Wild Earth

Challenging times

The US pet care industry is growing — and it’s growing at a rate beyond industry expectations. In 2020, the American Pet Products Association (APPA) reported that the US pet care industry reached a $100 billion milestone and was expected to grow an additional 6% in 2021. But the industry exceeded expectations and grew to $123.6 billion — a 13.5% increase. By all industry predictions, that growth will continue.

Growth will continue across all categories of pet care — $34.3 billion was spent on veterinary care and products in 2021; $29.8 billion was spent on pet supplies, live animals and OTC medication; and $9.5 billion was spent on services such as grooming, dog walking and boarding. But the most money in the pet care industry is spent each year on pet food and treats — $50 billion in the United States in 2021.

Despite the bullish outlook for the industry in coming years, it isn’t without challenges heading into the future — including ingredient sourcing, regulatory obstacles and labor shortages.

“Our challenge with innovation currently is really about ingredient sourcing — that could be a limiting factor to innovation in the future,” said Dana Brooks, president and chief executive officer, Pet Food Institute, Washington, DC.

Today’s ongoing supply chain challenges and concerns of future product shortages have led processors to look at ingredient sourcing through a more sustainable lens.
“There’s a lot of opportunities to explore upcycling,” said Seth Kaufman, co-founder and partner at Bentonville, Ark.-based BSM Partners. “We think the pet food industry has historically done a great job — much of it driven by costs — of upcycling byproduct-based materials into nutritious pet food.”

However, upcycling isn’t enough to meet the ingredient sourcing needs of the future. Alongside upcycling and utilizing ingredients not typically used for human food, the industry is looking to novel ingredients such as plant-based proteins, insect proteins and even lab-grown, cultured proteins to fulfill its ingredient sourcing requirements.

Berkeley, Calif.-based dog food company Wild Earth announced in October that it has developed a cellular-based meat broth topper for dogs, which, according to the company, will be the first cell-based meat product launched in the pet food industry. The company’s mission has always been to offer “clean” protein, nutrition-packed dog foods developed without harming any animals or the environment.

According to Wild Earth, 30% of the meat consumed in the United States is consumed by pets. The company aims to use its cell-based pet food products and other plant-based offerings to ease the environmental impact of sourcing traditional meats for the use in pet foods and treats.

“The shortage of protein is going to be the biggest challenge for the world going forward, whether it’s for humans or pets,” said John Kuenzi, chief executive officer and chairman, NQV8, Manhattan, Kan. “Protein that doesn’t compete with the human food supply is going to be a major component of future ingredient innovation. I think the ingredient streams for human and pet foods are going to become very competitive in the future. That should be at the back of our minds when we think about what’s truly sustainable for our planet.”

However, it’s not enough to just come up with new ingredients to incorporate into pet foods; getting these new ingredients approved for use in pet food products is where the true challenge lies.

“When we look at novel ingredients or any type of innovation in a formulation, our challenge goes back to the regulatory system that we operate that can hamper, prohibit and delay bringing in a new product to market,” Brooks said. “How can we get new innovative ingredients to market faster? It can take between five to 10 years from inception to formulation. We don’t want to shortchange the system to a point that we’re not creating safe or nutritious pet food, but technology and innovation is absolutely faster than the United States and state government, and that will be our limiting factor in the future.”

On Oct. 18, the US Food and Drug Administration held a listening session to hear opinions on updating the Center for Veterinary Medicine’s (CVM) Program Policy and Procedures Manual Guide 1240.3605. The American Feed Industry Association (AFIA) shared its position at the session, claiming that animal food ingredients that address animal wellness, food safety and production efficiency should be regulated as feed, not drugs. The current policy of regulating these ingredients as animal drugs is far more costly and lengthy and is interfering with new product innovation in the pet food marketplace.

“Updates to the policy would allow companies who manufacture animal food ingredients to appropriately market their ingredients,” said Louise Calderwood, director of regulatory affairs, AFIA, Arlington, Va. “In the pet food sector, we know there are ingredients that have positive impacts on cognition, mobility and mood for our pets. As pets are living longer and longer, the cognitive and mobility issues are becoming more and more important to consumers. Bringing these ingredients to market in the United States is absolutely essential for the many benefits they will afford our pets.

“As the claims issue gets resolved, we’re going to see such a breakthrough on the innovation side,” she added. “I’m very excited for the opportunities for the animal food ingredients to support our animals, so they can continue to be our active healthy companions.”

Aside from the regulatory hurdles that currently exist, the CVM is also underfunded and understaffed, Brooks said.

“It’s been challenging for the CVM to be able to recruit and retain talent,” she noted. “That’s one of our biggest challenges — making sure that the CVM is well funded in order to be able to hire the experts needed to get the work done.”

Anyone in the manufacturing industry knows, labor shortages aren’t reserved to the regulatory side of the industry. Pet food processing plants have been feeling labor pains for the past five years, and likely longer, with the COVID pandemic exacerbating the challenge even more.

“There are no pet food plants out there that are running as efficiently as they’d like to, because there is a definite workforce shortage,” said Tom Barrett, partner and vice president of business development and purchasing, Barrett Petfood Innovations, Brainerd, Minn. “I hear from other manufacturers all the time — where are the workers? Nobody wants to work.”

But some don’t see the labor shortage as being as simple as a shortage of workers.

“I think there is a labor shortage, but I don’t think the shortage itself is completely driven by a lack of labor,” Kuenzi said. “I think some of it is a case of people simply not wanting to do certain jobs anymore.”

St. Louis-based Purina PetCare has a manufacturing network consisting of 22 facilities in 15 states. A processing operation of that size takes a large workforce that needs to be trained and retained in order to maintain productivity.

“We work to develop and solidify relationships with trade and tech schools to showcase modern manufacturing as a viable and rewarding career path,” said Joe Toscano, vice president of trade and industry development for Purina. “These partnerships center around helping students better understand and embrace digital operations and technology that is a critical, yet sometimes unexpected, element of today’s manufacturing careers. Hiring and retaining top talent in our factories starts with helping potential associates envision themselves at Purina and embrace our culture and values, and then offering viable paths to development and career growth.”

Digital operations, technology and automated systems are the future of pet food processing. Artificial intelligence will also be more common on the manufacturing floor, Kuenzi said.

“A lot of the things that we thought would never be done by computers or machines are starting to be done by them right now,” he shared. “I think there’s going to be more of a combination of labor. We’ll automate a lot more manual jobs in the future.”

As a pet food processor, Barrett is looking to automated systems to improve his current and future processing facilities. Barrett Petfood Innovations will soon open a new freeze-dried plant in Little Falls, Minn. The new facility was designed with “efficiency and innovation” in mind.

“We live in a world now where automation is available to us. It’s become really efficient and much more cost-effective,” Barrett said. “The next wave of manufacturing will definitely feature a lot of automation. We’re not necessarily trying to replace workers, but we’re using a different type of skillset and we’re making our operations more efficient. Anybody in our industry who’s not fully looking toward automation is way behind the eight ball.”

Staying sustainable

What started out years ago as an industry buzzword, sustainability has turned into an ongoing mission for suppliers and manufacturers throughout the human and pet food industries. Pet food and treat processors keep sustainability top of mind throughout a range of decision-making processes, from ingredient selection to plant construction and design to packaging choices and alternatives. Sustainability is decidedly here to stay and will continue to guide the industry well into the future.

“When we first started talking about sustainability a couple of decades ago, it was certainly focused on environment. But now, sustainability covers everything from packaging and environment to workplace inclusion and business organizational values,” Brooks said. “It’s such a broad swath of things. I think we’re going to see a lot more growth in sustainability, but we’re not going to be able to whitewash it.”

Processors in the industry concur. The quest to become more sustainable now and into the future is guiding a number of operational decisions. At Barrett Petfood Innovations, Barrett is constantly looking for ways to be more sustainable.

“Our operations and innovation for the future are turning more toward sustainability and less waste. As a co-manufacturer, that’s where we focus our operations,” Barrett said. “We are continuing to ask ourselves: How can we change our operation to have a little less of a [environmental] footprint? How can we make the same amount of food with less waste? With our packaging, how can we make more of a sustainability play? We are continuing to look for more efficiency through our manufacturing.”

CRB, a Kansas City, Mo.-based provider of sustainable engineering, architecture, construction and consulting to the food and beverage and life sciences industries, took a close look at the pet food industry’s journey toward sustainability in its Horizons: Pet Food report, released last April. The report showed sustainability as a top priority among pet food and treat producers. A survey question about future plans for becoming carbon neutral showed that the majority of the respondents’ companies either have plans in the works for becoming carbon neutral, or they soon will. Fifty percent will have a plan in place within five years; 30% within 10 years; and 7% in 10 years or longer. Only 6% of respondents reported that they have yet to start working toward this goal.

While carbon neutrality and other big picture environmental impacts are long-term goals for large pet food processors and smaller players alike, smaller sustainability initiatives are being pursued right now. A continuous push toward adopting more sustainable packaging is occurring across the industry today and will undoubtedly continue into the future as more options become available to processors. Processors are demanding recyclable, compostable and refillable packaging options from packaging suppliers.

“Packaging is the logical starting point to work on for sustainability,” Brooks said. “The challenge that we have to keep in mind is, we want the packaging to be sustainable and to be recyclable, but we have to make sure, first and foremost, that the pet food in that packaging stays stable and free of contaminants — that it’s in the best packaging for your pet’s food. There’s still a lot of work to be done in that arena.”

While its member companies are typically pet food processors, Pet Food Institute invites equipment, packaging and ingredient suppliers to be associate members of PFI to encourage industry collaboration.

“It’s a great way for us to make sure we are all collaborating on ideas and technology in order to move toward a common goal of providing safe and healthy pet food,” Brooks said.

Today, more than 80% of Purina’s product portfolio by weight is packaged in recyclable materials.

“We are working to optimize our packaging with the goal of making all of our packaging reusable or recyclable by 2025,” Toscano said. “We are also working to incorporate more recycled content into our packages and eliminate unnecessary materials. The aluminum cans that our wet dog and cat food come in can be recycled endlessly, resulting in a significant decrease in waste. In fact, recycling 75% of all aluminum cans would prevent 11.8 million metric tons of CO2 emissions.”

Nicole Suteau, corporate responsibility manager, Champion Petfoods, Edmonton, Alberta, added, “While we are always reviewing new ways to improve our environmental impact at Champion, we’re focusing on three key areas that will deliver meaningful progress to the industry in the long term, including sustainable and recyclable packaging, responsible ingredient sourcing, and reducing our waste to landfills.

“As other pet food manufacturers start taking on a more concerted effort to reducing their own ecological footprint, we feel confident that the industry can collectively come together to overcome many of the challenges we see in sustainability in the next 10 to 20 years,” she said.

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When Sosland Publishing added coverage of bakery technology in the late 1970s, it set the stage for today’s industry knowledge authority.

Evolving consumer

According to the 2021-2022 APPA National Pet Owners Survey, there are pets in 90.5 million homes throughout the United States. Millennials are currently the largest group of pet owners (32%), followed by baby boomers (27%) and Generation X (24%). With this younger demographic of pet owners comes a changing pattern in purchasing behaviors. Alongside the internal industry push toward sustainable packaging and other systemwide initiatives is the ongoing external nudge from many pet parents who are making purchasing decisions with sustainability in mind.

“We know that Millennials own more pets than any demographic, and studies show that both Millennials and Gen Z are willing to pay more for products by sustainable brands and that they are likely to make purchase decisions based on values and principles,” Brooks said. “In addition, how sustainable a company is will have an impact on labor issues. Research shows that 70% of Millennials prefer to work for companies with strong sustainability agendas, and there is every indication that Gen Z will embrace that same attitude. Moving into the future, the truth is that sustainability is not a trend but a necessity in business.”

The younger pet parent is continuing to fuel the humanization and premiumization of pet food. These pet parents are looking for products that mirror those that they feed the human members of their families.

“That humanization of pet food is alive and well in the business continues to drive consumer behavior — ‘If I’m eating a sous vide product, maybe I should try that for my pet,’” said Jason Robertson, vice president, food and beverage for CRB. “I think you’re finding consumer buying habits are mirroring their own.”

Shoppers looking for plant-based options for their own food purchases are looking for more plant-based options for their pets as well. This trend is forcing creativity in product innovation.

“The humanization of pet food has been trending for years and there are no signs of slowing down,” said Ernie Ambrose, director of Innovation at Champion Petfoods. “As more pet parents look to feed their pets like members of the family, variety and enjoyment during mealtimes will continue to drive growth across premium pet food. We’ll continue to see innovations in all segments, from dry food to meal toppers, to wet or freeze-dried food, to custom bowls and beyond.

“Additionally, more people are invested in their pet’s food than they are in their own food. The importance of longevity and vitality will become more prevalent in the premium space with quality ingredients offering the greatest benefit for consumers,” Ambrose added.

Ultimately, pet parents all want what’s best for their pets — top-tier nutrition that will keep their four-legged family members as healthy and happy as possible, for as long as possible. If new products featuring customized nutrition and premium health benefits are the answers, then the pet food consumer will continue to push the industry toward those innovations. And as the industry continues to grow and evolve, it will get closer to meeting that demand.

“I think that over time the industry will get closer and closer to meeting the needs of what consumers want from a trust perspective, from a transparency perspective, and from a customization perspective,” Kaufmann said.

Ruffolo added, “Customers are faced with an ever-changing array of choices with competing product claims from established brands and channels, as well as from new brands and new channels. Ultimately, the consumer will have the power to determine the winners (and losers) among these brands, retailers and channels, and force the market to adapt to this new reality.”

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Tomorrow’s consumer

By Bob Sims

December 2022

Tomorrow's
Consumer

Looking ahead, producers, processors and retailers must appeal to evolving demographics

Meat+Poultry

Antonio Diaz – stock.adobe.com

The COVID-19 pandemic makes it difficult to examine or analyze consumer trends in meat consumption and the role of meat in consumer diets over the last two to three years. The pandemic and supply chain issues during the pandemic, and those that followed and still linger, skew any short-term data available. Consumers, retailers, restaurants and all involved in the supply chain from farm to table face issues not seen in recent decades. However, data, analytics and insights provide a glimpse into how consumers shopped for, and ate, meat and poultry products during that time.

Meat motivation

In a sample size of 3,822 consumers, 210 Analytics LLC’s 2022 “The Power of Meat” report found the dominant driver for meat purchase decisions was a combination of product quality/appearance (60%), price per pound (48%) and total package price (39%). The next two factors were nutritional content (25%) and attribute claims such as organic, grass-fed, no antibiotics etc., at 23%.

Anne-Marie Roerink, principal at 210 Analytics, said that while consumers sometimes focus on the above average growth/trending areas of meat and poultry, such as those that emphasize attribute and better for you claims, etc., the large scale, traditionally raised meat and poultry products are the majority of sales. In most supermarkets, club stores and supercenters at least 90% of sales are of conventionally produced and processed meat and poultry.

“For those who emphasize sustainability, it is great to see that stores also have a growing availability of items such as organic, grass fed, and humanely raised,” Roerink said. “However, there is a danger in consumers believing that only those items address their areas of concern relative to better for them, better for the animal, better for the planet, and better for the community and workers. I believe it is important for us not to demonize conventionally raised meat but instead provide as many answers and transparency as to why all meat and poultry is nutritious, delicious, and humanely and sustainably raised.”

In addition, large-scale production and processing will likely remain a necessity as the global population continues to rapidly increase. In order to meet the increased consumer demand for meat and poultry, as well as the demand for transparency, technology will need to play a large role in conventional production.

“Consumers want transparency, traceability and to know the steak or chicken breast on their plate was sustainably raised,” said Steve Hixon, vice president of customer engagement, Midan Marketing. “You will likely see fewer human hands and more automation and analytic devices on the farm and in the production facility. The integration of a secure system monitoring in real time live animal health and gain, impact on land use and land regeneration will continue to develop.”

Cultivated meat’s place in the future protein market is still unclear, but it has gained considerable ground since its first appearance.

Today and tomorrow

Although no one has a crystal ball, some things happening today can be projected into the future. The entire grocery store, including meat and poultry, is seeing higher than average inflation. Retailers have begun to experiment with different unit sizes and in recent months there has been a shift to smaller packages.

“It is important for the industry to consider where the win nets out,” Roerink said. “Providing smaller unit sizes entails a risk for the department to lose some money toward a smaller purchase, but at the same time packages that are priced too highly may take certain consumers out of the purchase altogether.”

Another issue to deal with in the future affecting all forms of meat and poultry production and processing, and humankind, is the ever-growing population. The United Nations’ Department of Economic and Social Affairs projects the world’s population to reach 9.8 billion by 2050.

“Global population is another factor that will have an impact,” Hixon said. “As the world population grows to nine billion by 2050, the industry will need to continue to develop efficiencies related to production and logistics.”

With the transparency/sustainability/label attribute, etc., mindset of consumers growing out of a trend and becoming a mainstream attitude, there is no doubt it will affect consumer purchases into the future. Alternative proteins have gained a foothold in the market around this, as well as being an option to feed the growing population, and are on the mind of all in the meat industry, both within the alternative sector and the conventional and specialty animal protein sector. While both specialty animal proteins and alternative proteins are just a fraction of sales in the overall market, they are still worthy of attention.

Plant-based alternatives showed triple-digit growth early but slowed down significantly and has seen double-digit declines over the last year. The declines caused retailers to reevaluate merchandising decisions and move these items outside of the meat department, or just offer less SKUs overall.

“I do not believe, however, that the plant-based meat alternative trend has played out altogether,” Roerink said. “We are still too early in the innovation cycle to call it. We will continue to see new items become available with superior taste, texture and smell and as long as consumers are willing to continue to try them, I think we will continue to see ebbs and flows into the plant-based meat alternative market.”

Hixon said Midan’s research echoed Roerink’s sentiment.

“In research Midan did in 2021, almost half of meat consumers had a positive initial reaction when they heard the term ‘plant-based meat alternatives,’” he said. “However, in our 2021 research, only one in five surveyed meat consumers said they consume plant-based meat alternatives once a month or more. In the last year, we have seen a dramatic downfall in the number of plant-based units in the meat case.”

Cultivated meat, still not widely available, remains a question mark in terms of its future in the market. While some consumers believe it is a viable option, many don’t trust it for various reasons.

“Cultivated meat is an interesting area,” Roerink said. “People who have some concerns over the idea of eating meat and poultry from a health, animal, or planet point of view, like the idea of taking cells from the animal and growing it in a laboratory. However, the vast majority of Americans have some concerns relative to eating cultivated meat. A lot of these concerns center on food safety, taste, texture etc.”

According to Midan’s research, consumers have yet to make strong decisions on cultivated meat. As volume increases and pricing becomes more acceptable to consumers, Midan believes adoption of cultivated meat will exceed what has been seen for plant based.

“It will take time, but traditional animal protein production needs to be thinking about how to position their products to keep majority market share,” Hixon said.

Looking ahead

For the future processors need to pay close attention to inflation and how consumers react to it regarding their purchasing habits. Creating value for shoppers will help counter the spikes in prices, but processors must also understand value means different things to different demographics.

“For some, ‘value’ means the absolute lowest cost for highest number of meals – these consumers are buying more grinds and value cuts like roasts,” Hixon said. “For others, value-added products provide new flavors and save time. Others are choosing to save their dollars by recreating restaurant meals at home, and this opens a door for premium meats.”

According to the Power of Meat, year-on-year the price of groceries increased 15% and compared to pre-pandemic levels prices are up 25-27%, reinforcing inflation and the need for industry to respond. That on top of other financial pressures will affect shopper decision making.

“They are looking for more sale specials during a time when industry is having a hard time providing specials,” Roerink said. “People are looking for smaller packages, people are looking for proteins that are a little cheaper on the price per pound basis etc. So, figuring out how to continue to keep people in the category while not eroding the purchases of others will be an important conundrum to consider.”

She added that the meat purchasers themselves will change as time goes on, and companies need to adjust by paying attention to who is spending.

“If we look at the distribution of the food dollar in today’s market, we see that boomers and Gen X are the majority spenders. But if we look at growth, we see that millennials and Gen X are the ones who are driving a lot of the new dollars. So, we need to make sure that in our merchandising we address today’s shopper, but also start engaging tomorrow’s shopper.”

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Bioceres making its push with GM wheat

By Arvin Donley

November 2022

Bioceres making its
push with GM wheat

Argentina-based company has made major inroads with HB4 wheat in Argentina, has sights set on Australia and the US

World Grain

©Brian Jackson – stock.adobe.com

Hindered by climate change, supply chain dysfunction and geopolitical tensions, global wheat production and trade have leveled off the last several years, with global ending stocks now at a 10-year low. Consequently, the need for increased yields and wheat varieties that can grow in suboptimal conditions has never been greater as global food insecurity has reached unprecedented heights.

One solution would be the adoption of weather-tolerant genetically modified wheat varieties. But embracing biotechnology, particularly when it comes to a food grain like wheat, has never been simple. Despite the preponderance of scientific evidence showing that GM wheat, as well as other grains, are safe to consume, a significant and vocal minority of consumers are adamant in their disdain for all things genetically modified.

Thus, flour millers and other downstream wheat-based food processors, many of whom are privately intrigued by the possibility of GM wheat commercialization, take a cautious public stance to not upset customers or potential customers. For example, World Grain reached out to a number of people in the global flour milling community for comment on this issue but most declined.

In the eye of this stormy situation is Argentinean biotech company Bioceres Crop Solutions, the maker of HB4 wheat, a genetically modified, drought-resistant variety that during the past two years has gained acceptance and regulatory approval in several South American countries and also has cleared preliminary regulatory hurdles in Australia and the United States.

Frederico Trucco, chief executive officer of Bioceres, is optimistic that HB4 is on a trajectory for commercialization in several key wheat-producing countries in the coming years. But the payoff is rarely quick for biotechnology companies, which is something he is always reminding investors. After all, it’s taken nearly 20 years since the introduction of HB4 technology in 2003 to develop wheat varieties and start to gain regulatory approvals that may pave the way for commercialization.

“It’s been a long journey,” he said. “These technologies are developed over decades, not just a few months or a year. When investors think of technology, they probably think of the computer software sector where things get replaced very quickly. (Monsanto’s) Roundup Ready soybeans were first commercialized in Argentina in 1994 and the patent didn’t expire until 2014. It takes a long time to develop but they last for many, many years.”

Of the many stakeholders in the wheat value chain, nobody is more excited about the prospect of HB4 commercialization than the wheat growers who for many years saw corn and soybean yields skyrocket due to biotechnology while wheat yields remained stagnant with only conventional varieties available.

Bioceres said HB4 drought-tolerance technology has been shown to increase wheat yields by an average of 20% in water-limited conditions, a key adaptation that favors double-cropping systems, where water management is increasingly critical. It also has shown environmental benefits. Under no-till practices, HB4 soy-wheat rotations result in an estimated 1,650 kilograms of carbon fixed into the soil per hectare per year, compared to positive emissions from conventional soy monoculture, Bioceres said.

“GM technology is something US wheat producers have supported since they adopted that principal document,” said Dalton Henry, policy director of US Wheat Associates, referring to the USW/NAWG Principles for Commercialization document that supports customer choice and identifies important US wheat export markets that must approve new traits. “They realize the benefits of technology, especially when you think about traits like drought tolerance. It’s impossible not to have it at the front of your mind considering the year we had last year in two pretty significant growing regions in the US.”

Trucco said an aspect of HB4 that often is overlooked is it also performs well in non-drought scenarios.

“In the past, there were drought-tolerant varieties, but the plants yielded less when water was not an issue,” he said. “In practical terms this is very important because we want technology that makes improvement in all scenarios. If it only works when you have drought, you are limiting yourself to very small environments. When we say it benefits situations where there is adequate water, we are talking about yield increases that can be as high as 40% to 50%.”

Trucco

Argentina, Brazil and HB4

Not surprisingly, the first country to widely cultivate HB4 wheat, which is based on a drought-tolerant gene taken from a sunflower, came in Bioceres’ home country of Argentina. Bioceres developed the HB4 wheat strain in partnership with the National Council for Scientific and Technical Research and the National University of Litoral. While not technically commercialized in Argentina, it is being grown by many farmers under Bioceres’ supervision.

In October 2020, Argentina, the largest wheat producing country and exporter in South America, granted first approval of HB4 wheat for growth and consumption. The commercialization of HB4 wheat in Argentina was subject to Brazilian approval, as Brazil is the main export market for Argentinean wheat production.

In November 2021, after a rigorous review process, the Brazilian National Biosafety Commission unanimously endorsed biosafety conditions for flour processed from HB4 wheat. But Brazilian millers, concerned that some of their customers were not receptive to products made from HB4 wheat, threatened to stop buying Argentine wheat, vowing to turn to other countries for supplies.

But ABTRIGO, the Brazilian milling association, softened its stance after a survey of Brazilian consumers, commissioned by ABIMAPI, an association that represents biscuit, pasta, bread and cake makers, yielded a surprising result.

“A post-approval survey in Brazil showed that close to 70% of consumers had no concerns on GMO wheat, an observation that helped change the position of key groups that historically rejected transgenics in the crop,” Trucco said. “With this we are not saying that the job is done; it is far from being done. But we are obviously thrilled to see this progress and very proud of our global leadership in this front.”
Colombia is the other South American country that has approved HB4 wheat for consumption.

International strategy

Trucco acknowledged that for HB4 wheat to become a truly global product, it must expand beyond South America. So Bioceres has set its sights on Australia and the United States, two major producers that export wheat all over the world and are prone to drought.

“Australia is our most immediate international interest outside of Latin America,” Trucco said. “We are actively pursuing Australia, as it has a market twice the size of Latin America. And it is a country that traditionally is more severely affected by drought, so HB4 technology can be even more valuable to Australian growers.”

Bioceres scored a major victory in May when Food Standards Australia New Zealand approved the company’s drought tolerant strain HB4 for use in food. In June, it announced it was moving forward in its push to obtain approval to plant and produce its genetically modified drought-resistant wheat in Australia. The Office of the Gene Technology Regulator must provide approval for the planting of HB4.

Trucco said Bioceres plans to carry out field tests of its GM wheat in Australia and will seek planting approvals in 2023.

But will Australian growers embrace the technology? Brett Hosking, chairman of Grain Growers and a Victorian farmer, said growers are interested in the technology but will want to see how it performs in the field and how the variety compares to other similar ones already in the market.

“The fact that this has this drought tolerance may get lots of growers interested,” he said. “But whether they will buy a bag and try on the farm, it needs to prove itself against other varieties out there. They’ll look for paddock-based replicated trials that fit within their soil type, crop rotation, and the system they use in their farm business and climate.”

If Bioceres can secure planting approvals in Australia, it could open the door for acceptance in other major wheat producing and exporting countries such as the United States.

Just days after Bioceres received regulatory approval in Australia came word that the US Food and Drug Administration (FDA) concluded its evaluation of HB4 wheat and had “no further questions regarding the genetically modified wheat’s safety.”

Bioceres said the conclusion of the voluntary consultation program with the FDA is a key step toward commercial enablement in the United States, which is awaiting approval from the US Department of Agriculture (USDA). The United States is the fifth largest wheat producer, with an average of 15 million hectares planted every year, and the third largest exporter, holding a key position in the global wheat trade.
Trucco called the United States “probably the most attractive market.”

“So many markets depend on US wheat,” he said. “We have a strategy and idea of where the technology can be more relevant, and we’re starting to seek collaborators (in the US) that can make this happen sooner rather than later.”

Trucco said Bioceres is actively seeking US universities or companies that it can work with to do breeding work and testing.

While Henry said it was impossible to say if HB4 would ultimately be approved for commercialization in the United States, he was confident that it wouldn’t occur anytime soon.

“(Trucco) has been aggressive every time he’s asked about a timeline, and those timelines have had a tendency to slip,” he said.

While most individual millers from around the world declined comment on HB4 for this article, the North American Millers’ Association (NAMA) issued a statement following the FDA’s decision.

“The availability of high-quality, affordable wheat is essential for millers, and ultimately, consumers,” NAMA said. “There is growing demand for sustainably produced wheat that uses less water, fertilizer, fuel, and other inputs and at the same time drought has reduced wheat yields in the US and around the world. Drought-tolerant wheats like HB4 could help with global supply challenges.”

However, NAMA also noted that it “supports consumers being able to make food purchases based on their personal preferences and supported legislation requiring labeling of products that contain bioengineered food ingredients.”

Jane DeMarchi, president of NAMA, told World Grain one of the big questions that millers have about the new variety is its milling quality.

“We urge Bioceres and any company developing new varieties of wheat to do quality testing for those new varieties for milling and baking characteristics and to go through the Wheat Quality Council’s review process,” she said.

She also echoed Henry’s opinion that the introduction of HB4 into the United States “is a long way away.”

A reason for pessimism regarding the prospect of widespread commercialization of HB4 wheat is that several of the United States’ and Australia’s most loyal customers, such as Japan, have strict policies against importing unapproved varieties. A GM wheat variety inadvertently getting mixed in with a US shipment of conventional wheat to Japan in 2013 temporarily strained trade relations between the two countries.

Bioceres has stated that it will maintain its preserved identity plan and delay the commercialization of the seed until there is greater acceptance of the GM wheat and its derivatives worldwide. Trucco said he is confident that with the grain testing and sorting technology that is available, tolerance levels of 0.001% can be maintained.
“I’m not saying that contamination cannot occur; it will in the future,” Trucco said. “But it is manageable.”

DeMarchi

Arrows pointing up for Bioceres

Bioceres’ fourth-quarter and full-year earnings report, released on Sept. 8, contained plenty of good news for the Argentina-based company.

Comparable gross profit for the quarter increased 32% compared with the year-ago quarter, reaching $41.4 million. Comparable gross profit for the full fiscal year reached a record of $136.9 million, up 45% compared with fiscal year 2021. Fourth-quarter revenues were up 44% to $104 million and full-year revenue was up 62% compared with 2021 to a record $319 million.

Notably, HB4 wheat revenues were $12.4 million, a 94% increase compared with the year-ago contributed goods number.

Frederico Trucco, chief executive officer of Bioceres, said key feed and food clearances obtained during 2022 were a factor in the improved results, including China’s Ministry of Agriculture approval for HB4 Soy and the US Food and Drug Administration (FDA) favorable conclusion on HB4 wheat safety assessment. Other feed and food approvals for HB4 wheat include Brazil, Colombia, Australia, New Zealand and Nigeria for HB4 wheat.

“This is an amazing closing to an amazing year, not only reflected in our record-setting financials but also in terms of achieving gatekeeping regulatory clearances, namely feed and food approvals for HB4 wheat in Brazil and for HB4 soy in China,” Trucco said. “We are, for the first time, reporting revenues associated to the HB4 technology, resulting from the one crop where we faced the most skepticism: HB4 wheat. This technology is now not only green-lighted by a growing number of regulators, including the US FDA, but also increasingly accepted growers, industry participants and consumers at the end.

“Today we have more than 20 processors incorporating HB4 wheat in their products with a similar number being onboarded in the next few months. We have consumer brands actively addressing HB4 wheat merits, and we have successfully executed the first export operation for HB4 wheat flour to Brazil.”

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Nigeria and other developing countries

Bioceres scored another victory in mid-July when Nigeria, which is home to several of the largest flour mills in Africa, became the latest country to approve the import of HB4 wheat for food and feed use. The import permit granted by the National Biosafety Management Agency of Nigeria is valid until July 2025.

Attempts by World Grain to get a response from Nigeria’s larger flour milling company, Flour Mills of Nigeria, to the government’s decision to allow HB4 wheat imports were unsuccessful.

Trucco sees countries such as Nigeria, which is a major wheat importer and has a high per-capita wheat consumption rate, as potential beneficiaries of the new technology.

“Any technology that will fortify wheat security will be viewed very favorably in these countries,” Trucco said. “And we’re not predicating our business based on premiums so I think that should be music to the ears of countries that rely on importation such as Egypt.”

Khalid Al-Hazaa, general manager of Al-Hazaa Investment Group, which operates flour mills throughout the Middle East, was one of the few flour millers willing to discuss the topic on the record with World Grain.

While he has questions about the health consequences of consuming GM wheat and whether consumers in his region would shun GM wheat products, Al-Hazaa said it may be time to consider the merits of the technology.

“The time has come to start considering this step, especially with the current increase in the world’s population and the increased demand for grains and wheat, in particular,” Al-Hazaa said. “Also, after what we’ve witnessed during the COVID-19 pandemic and the Russia-Ukraine war that caused a global grain supply chain disruption, all these factors should raise our concerns and enhance our efforts to look for solutions that could increase global production, help in good use of current agricultural lands, and overcome the problems of drought and climate change.”

Like many millers, Al-Hazaa is eager to see if Bioceres succeeds in marketing its product beyond South America.

“If the GM wheat got approved internationally, especially in large wheat-producing countries such as Australia, the United States, the Black Sea countries and Europe, then definitely countries in the Middle East would follow, especially Egypt, as it is a large producer and consumer of wheat,” he said.

Al-Hazaa noted that Egypt is “focused heavily on increasing local wheat production,” and that adopting HB4 wheat for production could be one of the means to help the country increase its yields.

While HB4’s ability to increase yields in drought conditions are the major attraction for many developing countries, Steve Mercer, vice president of communications for USW, said the other side of the coin regarding HB4 wheat is the potential environmental and sustainability advantages that it provides regarding less water usage.

“One is the practical benefit for producers to produce more wheat and the other side is the sustainability arguments, which could be attractive in developed countries,” Mercer said.

Herbicide concerns

Although HB4 wheat has received safety approvals in several countries, environmental groups warn that commercialization would lead to higher exposure to glufosinate-ammonium because it is tolerant to the herbicide.

GRAIN, a Barcelona, Spain-based non-profit organization that supports small farmers and social movements in their struggles for community-controlled and biodiversity-based food systems, said that glufosinate-ammonium is “widely questioned and prohibited in many countries due to its high acute toxicity and its teratogenic, neurotoxic, genotoxic and cholinesterase altering effects.”

GRAIN warns that the addition of GM wheat, which is grown in different parts of the year than most other GM crops, will lead to year-round exposure to glufosinate-ammonium-based herbicides.

Trucco said HB4 is resistant to the herbicide glufosinate-ammonium because in the biotechnological process Bioceres used a glufosinate-resistant gene as the selectable marker to be able to distinguish the positive transformant from the negative transformants.

“So it’s an effect of the biotechnological tool used to achieve drought resistance,” Trucco said. “Unlike with the first wave of transgenics several years ago whose main yield differential was directly associated with the use of the herbicide, HB4 was developed to have drought resistance as its main characteristic and value.

“While this means that HB4 wheat is tolerant to glufosinate-ammonium, it does not need to use this herbicide. Just as with conventional wheat, any other agricultural herbicide can be applied in the production of HB4 wheat with no impact on the quality of the wheat. In fact, at Bioceres, we are working hard to develop biological herbicides that could in the future be applied as alternatives to chemical herbicides in seed treatments. We are actually one of the only companies globally that develops all categories of biological products for agriculture: from bio-nutrition and seed genetics, to biostimulants and bioprotection technology.”

Timing is everything

Other companies, including US-based Monsanto, before it merged with Bayer, developed GM wheat only to reverse course due to strong backlash from consumer groups and tentative regulators. But that was a different time, when there was plenty of wheat in reserve and less certainty about the impact of climate change on crop production.

Today, not only is there more widespread drought impacting yields and production, but a once-in-a-century pandemic has caused global supply chain dysfunction and two of the world’s largest wheat producers and exporters — Russia and Ukraine — are at war, limiting the amount of grain being produced and shipped from the Black Sea region.

It’s hard to imagine a better environment to be introducing a high-yielding drought-resistant genetically modified wheat variety.

“I don’t know if it’s the best possible timing to be talking about that kind of trait, but it has to be close,” Henry said.

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Sustainability Strategies

By Erica Shaffer

November 2022

Sustainability
Strategies

Today’s meat and poultry processors carefully manage expectations to feed people, preserve the planet and deliver profits in the future

Meat+Poultry

Erica Shaffer, Sosland Publishing Co.

The United Nations expects the world’s population to increase by 2 billion people in the next 30 years – to 9.7 billion by 2050 from 7.7 billion and could peak at nearly 11 billion around 2100. To feed those people, global food production will need to increase 70% by 2050.

The same agency and others continue to sound the alarm about the negative impacts of climate change. In a report on Climate Smart Agriculture, the World Bank noted the role of agriculture in combating food insecurity while calling agriculture “… a major part of the climate problem.”

“It currently generates 19–29% of total greenhouse gas (GHG) emissions,” according to the World Bank. “Without action, that percentage could rise substantially as other sectors reduce their emissions. Additionally, ⅓ of food produced globally is either lost or wasted.”

So, how will food manufacturers feed a growing world population without wrecking the planet? The future of protein production will need to be more sustainability focused than before as consumers increasingly focus on their own carbon footprint.

End-to-end sustainability

Livestock production and meat processing often are implicated for negative impacts on the environment. As a result, producers and processors are focused on implementing farm-to-fork sustainability practices and processes.

The Food and Agriculture Organization of the UN stated that total emissions from global livestock per year represent 14.5% of all “anthropogenic GHG emissions, and cattle are the animal species responsible for the most greenhouse gas emissions representing about 65% of the livestock sector’s emissions.

Industry stakeholders note that farmers and ranchers have relied on conservation and sustainable production practices for decades. Any mitigations to GHG impacts will include animal agriculture. The difference will be steps the industry is taking now to improve future outcomes for the environment. So, segment watchers can expect to hear a lot more about conservation efforts, including regenerative agriculture.

“It’s nothing new, but it’s going back to what farmers have been doing, and nature has been doing, for millennia,” said Nadine Rich, marketing director at Denver-based Teton Waters Ranch. “When you look back several hundred years ago, there were 30 to 60 million bison not to mention deer and elk – ruminant animals that were grazing and moving along and leaving behind fertilizer and airing the soil. That continued to help with soil health. So, taking those types of tenets and doing that with managed grazing of cattle is our way to mimic nature’s systems that we know work.”

Managed grazing of cattle on open pastures of grassland is part of a cycle that enables the use of land that can’t be used for growing crops, but cattle can use for sustenance to create nutrient-dense beef for consumers. At the same time, dirt is becoming soil that is significantly healthier, has more water retention and sequestering carbon “… and creating and keeping in balance an ecosystem that brings life, or biodiversity, into that system,” Rich said.

Evolving animal husbandry practices will accompany mindful stewardship of the land as more consumers express interest in regenerative agriculture and look for product labels bearing label claims and certifications such as Non-GMO, free from and natural. The 2022 Power of Meat study found that many consumers believe that meat and poultry products that are better for them, the planet, animals and/or the workers are interconnected and 86% of people look for production claims on meat packages.

“One-third of consumers specifically look for claims-based meat, particularly ‘US-raised,’ ‘no added hormones’ and ‘no antibiotics use,’” the study said. “Claims-based meat grew over the record 2020 levels (+1.6%) and sales are significantly higher versus 2019 (+17.7%).”

“I think anything, that anything that’s better-for-you – and that could be grass-fed, organic, no antibiotics, no growth hormones – the consumer wants to know more about where their food is coming from and I think that’s a really good thing,” said Dana Ehrlich, chief executive officer and co-founder of Verde Farms, a Woburn, Mass.-based producer of natural meat. “Verde as a brand is both doing a lot of consumer research and focus groups, shop-alongs, quantitative research, qualitative research, to better understand our consumers’ needs and then reaching out to them through various mechanisms. That could be packaging on the shelf, that could be social, digital media campaigns and consumers are responding.”

On the processing side, companies such as Cargill, Tyson Foods and Maple Leaf Foods, to name a few, are investing in facility improvements such as energy-saving LED lighting; smart utility meters to measure and monitor consumption of electricity, gas, water; and outside air ventilation systems with energy recovery features among other upgrades.

And initiatives such as the Protein PACT for the People, Animals and Climate of Tomorrow, a joint venture by 12 organizations representing the meat, poultry and dairy industry along with animal feed and ingredients, aim to verify progress toward sustainability goals across all animal protein sectors. The North American Meat Institute (NAMI) developed a sustainability framework of more than 100 metrics developed through work with sustainability experts, supply chain partners and NAMI members.

Makers of plant-based meat alternatives continue to develop new products to keep consumers interested, but a shakeout in the segment could lie ahead.

Ongoing innovation

While animal protein consumption carries some of the blame for the world’s climate problem, plant-based meat alternatives are marketed as a solution. But a persistent downturn in sales has thrown plant-based meat alternative producers — and the category — for a loop, especially in the past year. Consumer and market research firm IRI found that sales for refrigerated plant-based meat alternatives are decelerating.

“Year-on-year growth started slowing in the second quarter of 2021 and turned negative in the third quarter,” IRI said. “Come November 2021, refrigerated plant-based meat alternative sales decreased 6.6% over November 2020. November sales were up 29.2% over the 2019 levels, but this is much lower than the gains seen in the first few quarters of the year.

“While 2019 and 2020 achieved much of its growth through expanded distribution, assortment only increased 5.3% in 2021 — making maintaining the growth rate much harder.”

With sales of meat alternatives continuing to see pressure from waning consumer interest and inflation impacts on meat shoppers, a segment shakeout could be in the cards for plant-based meat alternative companies.

In October, El Segundo, Calif.-based Beyond Meat Inc. announced plans to lay off approximately 200 employees, or roughly 19% of its workforce. The company also announced further reductions to its fiscal 2022 sales outlook to a range of $400 million to $425 million.

Redwood, Calif.-based Impossible Foods, in the same month, announced layoffs of 6% of its workforce as part of a reorganization plan primarily affecting roles that had become redundant or were incompatible with other parts of the plant-based meat maker’s reorganization plan.

Other companies, including meat processors like Canada’s Maple Leaf Foods Inc., have walked back investments in plant-based meat alternatives. In August, the company announced it was “rightsizing” its Greenleaf Foods, plant-based subsidiary after a financial shortfall due to demand that never occurred.

“We now understand why it did not materialize, and we no longer believe that it will materialize,” said Michael McCain, president and CEO of Maple Leaf Foods, during an Aug. 4 conference call to discuss the company’s second-quarter results. “So, we are altering our business model and dialing back our investment to reflect the goal of profitable growth …”

Chicago-based Upton’s Naturals makes vegan meat alternatives using seitan, a traditional Japanese food that is made by rinsing the starch from wheat and retaining the protein or gluten. Natalie Slater, marketing manager at Upton’s Naturals, has seen this trend of growth and contraction come and go since the 90s. The current cycle stands out because of the money invested in the segment during the past five years or so.

“A lot of it was really driven by brands that were backed by huge amounts of investments or brands that were bought out by conglomerates, or meat producers buying their plant-based counterparts,” Slater said. “And then after a lot of buzz around some of those products, then came lots of copycat products.

“I think what happens is that you get a lot of buzz and trust, and people try things and then there’s burnout or there’s some cannibalization there where there’s just too many of the same product.

“For a company like us that has never really chased trends, we feel like we have a secure spot in the market because we’re just really focused on making products with simple ingredients that taste good and are easy to cook. I think that’s a proven strategy for a lot of brands — just to stick with what you know and stick with what you do well, and you can ride out a lot of those, a lot of the trends, and so far, that’s worked.”

Going forward, consumer demand for the products — although not as torrid as in previous years — will encourage producers to keep innovating and offering new products. In September, Beyond Meat and Taco Bell launched Beyond Carne Asada Steak at locations in Dayton, Ohio. And in October, Beyond Steak launched at Kroger and Walmart stores nationwide, as well as at select Albertsons and Ahold divisions and other retailers across the United States.

“Beyond Steak is a highly anticipated expansion of our popular beef platform and we’re proud to introduce this innovative product to consumers nationwide,” said Dariush Ajami, chief innovation officer, Beyond Meat. “Beyond Steak delivers the taste and texture of sliced steak in a way that is better for both people and the planet.”

Impossible Foods expanded into full meal solutions with the launch of the company’s line of frozen plant-based entrees called Impossible Bowls. The alternative meat maker partnered with consumer packaged goods, meal kit and foodservice brands for plant-based versions of sausage ravioli, pizza and tacos, among other foods.

“And like all Impossible products, these meals are also healthier for the planet: choosing to enjoy our plant-based beef, chicken and pork in each entree accounts for less water consumption, land use and greenhouse gas emissions than their animal protein counterparts,” the company said.

Cultured meat advances

In 2010, Dutch scientists created pork in a lab using stem cells from pig muscles. By 2013, the University of Maastricht in the Netherlands unveiled a hamburger patty that was grown from bovine stem cells.

Kansas City, Mo.-based CRB Group, a full-service facility design, sustainable engineering, construction and consulting firm for biotech, pharma, food and beverage, and science and technology published an analysis of alternative protein manufacturing. In its Horizons: Alternative Proteins report, CRB examined significant challenges facing the segment including scalability, regulation, product safety and sustainability.

“Cell-based and plant-based meat, egg and dairy products are riding a wave of interest among consumers,” the report said. “To capitalize on this momentum, it is imperative for companies to develop, manufacture and bring to market new offerings as quickly as possible. This will require investing in new facilities and retrofitting existing food and beverage facilities with specialized equipment. To do that — and to do it fast — companies need to move away from traditional design-bid-build project delivery and embrace the trend toward turnkey project management.”

A significant challenge facing cultured meat producers is consumer acceptance. The 2022 Power of Meat study found that fewer than three in 10 meat eaters (29%) would be willing to try cultivated meat versus 40% who would not.

“Those who are willing to try cultivated meat point to securing the food supply and feeling it would be better for their health,” the study said. “The latter tend to be people who seek out meat and poultry raised without added hormones, antibiotics and several other production attributes. Other underlying drivers are animal welfare, food safety and the planet.

“Among those not willing to try cultivated meat, 63% are concerned that it is not natural. Other big concerns are that it is too processed or unsafe.”

Still, cultured meat startups have garnered a lot of attention and investment. Companies are creating chicken, lamb and fish without animal slaughter. Aleph Farms, Steakholder Foods, Eat Just, Meatable and other startups are advancing the science behind cultivated animal proteins.

Dutch food tech company Meatable is currently working on cultivating pork products, including sausages and dumplings with plans to launch the items in restaurants in Singapore by 2024. By 2025, Meatable hopes to expand into supermarkets.

Governments are supporting research into cultivated meat as a solution to food insecurity.

Eat Just Inc. secured a $25 million investment from private equity firm C2 Capital Partners to accelerate its growth in China. Plant-based egg alternatives and cultivated meat are part of China’s national blueprint for food security.

President Joe Biden issued an executive order directing Agriculture Secretary Tom Vilsack and the US Department of Agriculture (USDA) to submit a report assessing how to use biotechnology and biomanufacturing for cultured meat. And In October 2021, the USDA awarded Tufts University $10 million to establish the National Institute for Cellular Agriculture.

Alternative proteins face significant challenges including regulation, product safety and sustainability.

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On my radar: Symrise’s Emmanuel Laroche

Emmanuel Laroche, vice president, marketing and consumer insights, Symrise.

On my radar: Symrise’s Emmanuel Laroche

Emmanuel Laroche, vice president, marketing and consumer insights, Symrise.
Emmanuel Laroche, vice president, marketing and consumer insights, Symrise

10.20.2022  ·  INSIGHTS FOR MARKETERS

In Sosland Publishing’s series “On My Radar,” marketers from across the food industry reveal what they’re reading, listening to and watching to stay up to date on the latest marketing trends. For this month’s edition, we spoke to Emmanuel Laroche, vice president, marketing and consumer insights, Symrise.

Sosland Publishing: What is your background in marketing?

Emmanuel Laroche: After graduating from college in France with a masters in both organic chemistry and marketing, I had the opportunity to come to the U.S. for a year for an internship with a flavor manufacturer. During that time, I fell in love with the industry and the pace of business in America. After my internship, I returned to Europe and found the flavor segment to be the perfect sweet spot for my dual background in science and marketing combined with my passion for food. I soon began my career in marketing, which also included work in sales and product category management.

In 2002, I moved back to the U.S. to take a regional lead marketing position at Symrise, which led me to my current role today as vice president, marketing and consumer insights. Throughout my career, I’ve been driven to engage with consumer packaged goods and food and beverage companies innovatively and strategically to grow Symrise’s business.

Because of my love for cuisine and the food industry coupled with a curiosity to further explore the culinary space, I launched a personal podcast in 2018 called flavors unknown. Through this medium, I share the stories of award-winning American chefs, pastry chefs, and mixologists who are redefining and disrupting the restaurant and hospitality industry.

Next month I will be publishing my first book titled Conversations Behind the Kitchen Door: 50 Chefs Chart Today’s Food Culture in which I explore the future of culinary creativity. The book is based on insights gleaned from my podcast interviews with culinary leaders, along with private conversations with chefs, beverage specialists and food entrepreneurs.

What are you reading, watching or listening to right now to keep up with marketing trends?

Rising Star

StarChefs’ Rising Star magazine is a great source of insights about the emerging American culinary talent. Yes, it requires a paid subscription, which is inexpensive, but it delivers industry trends, business intel, beverage knowledge, and a fresh dose of culinary inspiration from around the country right to your doorstep.

Marketing Today

Marketing Today is a great marketing podcast from my friend Alan Hart. Alan goes behind the scenes with the world’s best chief marketing officers and business leaders. You will learn directly from the show’s guests as they share strategies, tips and advice.

Chef’s Table

I love to travel, and I love to discover new food. Chef’s Table on Netflix combines both. It brings inspiration from the masters of cuisine from around the world, talking about their successes and failures and presenting their most delicious dishes.

flavors unknown

Whether you’re a food enthusiast who enjoys hearing how chef, pastry chefs and mixologists conceptualize dishes and drinks and create the tastes that delight us, or you’re looking for sources of inspiration from acclaimed culinary leaders and want to stay up to date with new industry trends, ingredients, and techniques, the flavors unknown podcast is for you.

Connect with Emmanuel on LinkedIn