Peirce, Steve

English

Research Papers in Economics

What Manufacturers Want in Food Ingredients
Steve Peirce
The food  industry is going through  constant
change  as  companies  try  to  maintain  or  create  Functionality
higher  profits,  while cutting  costs.  The cost  cut-
ting  is  coming  in  many  forms  which  include  re-  Most  food  manufacturers  have  several
duced  research  &  development,  decreased  staff  choices  of products to choose  from when looking
size,  relying  on  suppliers  for  more  support  and  for  functional  ingredients.  Functionality  charac-
know-how.  This  presentation  will  look  at  three  teristics include the following:
specific areas:
* Texture
1.  State of the market  * Creaminess
2.  What the manufacturer is asking for  * Mouthfeel
3.  What is available  (in the marketplace)  * Water holding capacity
* Water activity
The State of the Market
A  change  in  functionality  is  needed  when  you
During  1996 all food manufacturers  that use  move a full fat food into the fat free sector.
corn, wheat, soybean  and other related grains ex-
perienced wide price swings and significant profit  Components of  Key Food  Ingredients
robbing  issues:
As producers look for functional  ingredients,
*  Ingredient cost increases;  wheat, soy, corn  they  often  look to  various  classes  of ingredients
*  Increased  manufacturing  costs;  labor,  utili-  based  on the functionality  of various  compounds
ties, and equipment  (i.e.  protein, fat or ash). The Nu-RICE ® ingredi-
*  Stronger  competition;  faster  introductions,  ents  offer  a  unique  combination  of components
smaller R&D staff, changing product lines  that  can  be  used  as  a  foundation  ingredient  on
*  Firm to decreasing food prices  which to build  a finished  food product.  In many
applications fewer ingredients  are required, which
What the Food Manufacturer is Asking For  can provide  cost saving benefits that will  be dis-
cussed later (Table  1).
The  'big four'  requests when  dealing with  ingre-
dients:  Flavor/Taste
1.  Functionality  - added  texture,  lubrication,  The  primary  issue that consumers  are  look-
mouthfeel, etc.  ing for in food is good taste and flavor. In evaluat-
2.  Flavor/Taste/Color  - enhanced  taste  or  ap-  ing  flavor and  taste,  the food producer  considers
pearance  the following:
3.  Cost Reduction  - help eliminate  other ingre-
dients and cut costs  *  Consumer acceptance
4.  Label  Statement - reduce chemical  sounding  *  Broad scale appeal
names on the label  *  Align with a traditional flavor
*  Trendy is okay
i.e.:  clean,  crisp,  strong,  bold  - just  not
heavy. This is true with the many new ethnic
foods  and  their strong/unique  flavors  while Steve Peirce is President of RIBUS, Inc.,  a start-up company  foos and  thr  t  fa 
providing ingredients for food processing.  not heavy with fats.40  February  1997  Journal  of Food  Distribution  Research
Table 1. Comparison of Ingredients
Nu-RICE ®  Soy  Starch  Oil  Phosphates
Protein (%)  15-18  90  0  0  0
Fat (%)  2-32  1  0  100  0
Carbs.  (%)  40-60  1  97  0  0
Ash (%)  10-15  5  3  0  97
Americans want more for less  - lower operating temperatures
- more output on existing equipment
Americans  are  demanding  more  taste  and  - delay capital expenditures
flavor, plus a list of other characteristics.
Components of Key Food Ingredients
*  More flavor with less fat
*  More flavor with less calories  As  food  manufacturers  look  to  reduce  the
*  More flavor with less artificial (ingredients)  cost of foods,  many have seen benefits  in using a
*  More nutrition in all foods  multi-purpose  ingredient  that can  provide  many,
if not  all,  of the cost  savings  listed  above.  The
Consumer Surveys  Nu-RICE  ®  ingredients  are  patented  and  offer
unique benefits  not typically  found  in  any of the
While  consumers  make  demands,  many  of  classes listed below.
them are not practicing eating habits that result in
weight  control  and  good  health;  therefore,  they  Label Statement
want  the  food  manufacturer  to  make  specialty
foods that can be over consumed without negative  As food producers  look to reduce  cost,  pro-
effects.  vide  enhanced  flavors  and  all  of the  other  de-
mands  from consumers, they also have to provide
*  9 8%/ "Nibble between meals"  "clean  labels."  The  public  desires  more  natural
*  87%  Pick a snack based on taste  sounding  ingredients  that are  easy to  pronounce
*  38%  Pick a snack based on nutrition  and  understand  their origin.  Since  the enactment
*  87%  Believe  good  diet  &  nutrition  play  a  of  the  NLEA  (National  Labeling  &  Education
role in prevention of serious illness  Act), consumers  are  more aware  of food  ingredi-
*  66%  Have made dietary changes in an effort  ents  and  the  fat  content.  Many  companies  have
to maintain good health  not  realized  this  point;  however,  when  the  con-
sumer  has  a  choice  between  foods  with  "user
Cost Reduction  friendly"  vs.  "chemical  sounding"  ingredients,
they will select "user friendly."
By  identifying  unique  and  specialized  in-
gredients,  the food  manufacturer  can accomplish  *  Reduction  in Fat
most of the desired goals while saving money.  - fat-free, lowfat
*  Added nutrients/fortified
*  Substitute ingredients  *  Cleaner label
- replace  a more expensive  item  - fewer ingredients
*  Multifunctional  ingredients  - non-chemical  sounding ingredients
- one does the work of two - four items
- cut incoming transportation costs
- fewer logistical issues and  less warehouse
space
*  Processing aid
- reduce manufacturing timePeirce, Steve  What Maufacturers Want in Food Ingredients  41
Label  Impact  on  a  Frozen  Dairy  Product  Consumer  Surveys
(Emulsifier & Stabilizers)
With consumer awareness at peak levels, you
With Nu-RICE ®  Original Label Items  can  see  that  people  are  still  eating;  however,
Rice Extract  Guar Gum  many  are  thinking  about  what  they  eat.  Most
Mono & Diglycerides  people are of the opinion that good diet and  nutri-
Locust Bean Gum  tion  play  a  role  in  prevention  of serious  illness
Cellulose Gum  and  disease,  and  over  65%  have  made  dietary
Polysorbate  80  changes to maintain good health.
Calcium Carrageenan
*  98%  "Nibble between meals"
What is available  (in the marketplace)  *  87%  Pick a snack based on taste
*  38%  Pick a snack based  on nutrition
With this  list of needs,  desires  and demands  *  87%  Believe  good  diet  &  nutrition  play  a
from  the  consumer,  the  food  manufacturer  must  role in prevention  of serious illness
be aware of what  is  available  in the marketplace.  *  66%  Have made dietary  changes in  an effort
There is  a great deal of new technology  being in-  to maintain good health
troduced,  especially  in  the area of fat reduction.
However,  extreme  uniqueness  comes from  items  Presentation Summary
like the Nu-RICE ® ingredients that can provide
positive  nutrition  and  functionality  with  a  wide  In  an  ever  changing  food  industry,  I  think
variety of applications.  you  now  have  an  idea  of the  basic  issues  being
demanded of food producers. Food manufacturing
1.  Product and Technology  is one  industry that will always  be with us;  how-
Nutrients  ever,  it will constantly  be changing.  The changes
- B & E vitamins  will  be  fueled  by consumer  demands  on  quality,
- minerals  taste, cost, packaging and convenience.  How well
- proteins, carbohydrates  & oils  a company (both  the manufacturer  and the ingre-
Functionality  dient supplier) responds,  will determine how long
- emulsification -- creates mouthfeel  they remain in business.
- fat mimicker -- water binding
Applications  *  The state of the market
- extrusion aid -- low-fat chocolates  - changing & competitive
- fat replacer  *  What the manufacturer is asking for
- dough conditioner  - cost savings & strong results
- stabilizer  *  What is available (in the marketplace)
- nutrient fortification  - multifunctional  ingredients and technical
support
2.  Mainstream  vs.  Healthier  Foods  (Good  For
You Foods)  For Additional Information Contact:
Based  on  the  current  mind  set  of the  con-  RIBUS, Inc.
sumer,  it is  not hard to  see why the pendulum  is  Steve Peirce
swinging away  from  synthetic  foods  and  moving  1454 Crossbrook Dr.
toward more natural  foods. Fitness  and foods be-  St. Louis, MO 63119
came  popular in the  80s which  brought about the  (314)727-4287
legislative  changes  in  1994  (NLEA).  Consumer  (314) 968-4046 fax
awareness  is  at  an  all  time  high  with  respect to
fat, cholesterol, nutrition and  ingredient content.

WHAT MANUFACTURERS WANT IN FOOD INGREDIENTS

Abstract

Similar works

Full text

Available Versions

Research Papers in Economics