Clean Label Strategy & Formulation

Brought to you by: Natural Products INSIDER

Vol.1 No.7 ■ September 2017 ■ US$20

foodinsiderjournal.com
 CONTENTS foodinsiderjournal.com
September 2017

3 5 13
Viewpoint: Packaging 2.0: Juices Under
The Whole Package What’s Outside is Pressure: HPP
Just as Important as Options Boost
What’s Inside Juice Category

Innovation in Action

20 24
Dreaming Cow: The Tio’s Gazpacho:
Bovine Bliss Facto Freshness is the
Foundation of Health
and Flavor

Clean Label Strategy & Formulation

Brought to you by: Natural Products INSIDER
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2 Food Insider Journal The Whole Package September 2017

 VIEWPOINT

The Whole Package

A
s clean label continues to become the way of the land, food and
beverage brands must ensure products deliver on function, freshness
and food safety. But in this new norm, brands must look at the whole
package and align their clean label thinking to product packaging as well. We analyze
This issue takes a deep dive into how brands are turning to paper, plant- how consumers
based fibers and recyclable materials that are biodegradable or compostable perceive
to help reduce the environmental impact of packaging. We also analyze how sustainably
consumers perceive sustainably packaged products and the impact it makes on
product purchasing decisions.
packaged
Our Category Insights examines how recent developments in high-pressure products and
processing (HPP) helped reinvigorate the ready-to-drink (RTD) juice category and the impact
created demand for premium cold-pressed offerings, as well as the rising use it makes
of sustainable packaging in the sector. Case studies showcasing Tio Gazpacho on product
(2016 NEXTY Award winner) and Dreaming Cow’s LUSH (2017 SupplySide CPG purchasing
Editor’s Choice Awards finalist) examine how the companies found whitespace
in the RTD beverage category, and the lessons learned from implementing
decisions.
sustainable packaging that could be applied to your business.
To fully leverage the clean label opportunity requires a deep understanding
of what makes consumers tick. This year’s SupplySide West education program
includes three Workshops focused on defining, formulating and marketing clean
label food and beverages. If you are a manufacturer looking to learn more about
clean label ingredients, you can’t miss SupplySide West, Sept. 25-29, 2017, at
the Mandalay Bay in Las Vegas.
Cheers,

Judie Bizzozero
Editor
judie.bizzozero@informa.com
(480)281-6019
@judiebizz

3 Food Insider Journal The Whole Package September 2017

 Packaging 2.0:
What’s Outside Is Just as
Important as What’s Inside

by Judie Bizzozero

P
ackaging plays a critical role in a product’s
success or failure. In fact, one could argue
what’s on the outside of the product is just as
important as what’s on the inside. In addition to
being aesthetically appealing on the shelf, a product’s
packaging needs to protect the contents from damage,
leaking or contamination.
But developing new packaging materials that
protect food and beverages throughout the supply
chain—from the factory floor to retail shelves to
the consumer’s hand—while being recyclable,
compostable, produced with renewable energy
According to
or even edible is a key challenge for industry. Top
Packaged Facts’
of mind is the need for new packaging materials
“Food and Beverage to meet the criteria for being sustainable without
Packaging Innovation sacrificing the food safety, function, freshness
in the U.S.” report, and visibility of the product inside while appealing
consumers prefer to the target shopper.
growth for specialized produce packaging types
such as resealable pouches for chili peppers,
dispensing tubes of fresh herbs and single-
portion packs of fresh-cut fruit.
“Rising sales of prepared foods such as
rotisserie chickens, packaged salads or even
full-scale food bars have boosted demand for
foodservice-style packaging and suppressed
gains for conventional food and beverage
packaging,” Richardson said.
Food and beverage packaging falls into two
distinct types—flexible and rigid. Rigid packaging
refers to packaging that retains a firm shape,
such as glass bottles, metal cans, hard-sided
plastic bottles and containers, and thermoformed
plastic boxes. Flexible packaging can be defined
as any package or part of a package with a shape
that can be easily changed.
Packaging materials fall into six general
types—glass, metal, paper and paperboard,
plastic, combinations of materials (such as
laminates), and other materials, according to

glass
bottles and jars
as packaging material
for food and beverages.
What’s In, What’s Out
Mike Richardson, senior industry analyst at
the Freedonia Group, likened food and beverage
packaging trends to hundreds of little trends.
For example, trends favoring fresh produce
over canned fruits and vegetables have boosted
Packaged Facts’ “Food and Beverage Packaging
Innovation in the U.S.” report, which noted
consumers prefer glass bottles and jars as
packaging material for food and beverages,
followed by paper bags, plastic bottles and jars.
However, Richardson said flexible packaging
is generally gaining share at the expense of

5 Food Insider Journal The Whole Package September 2017

 rigid products, while plastic is taking share from other materials. Further,
recyclable and sustainable products are gaining share from products that Packaging
are less so.
“Plastic is gaining share, but organic, artisanal and craft products are
Material Types
growing more rapidly than overall food sales,” Richardson said. “Makers
of these products use packaging to convey a homemade feel or prestige
include:
at some level. And to the minds of many of these producers and their
consumers, plastic doesn’t deliver the same message that glass jars or
bottles do.”
Metal cans are losing share to alternative formats, with the exception
of beer, which accounts for a large portion of metal can packaging. “Craft
brewers have shied away from cans, for many of the reasons listed above.
But many brewers have come to embrace cans, which offer a number of GLASS
advantages, not least of which is that they protect beer from light,” he said.

Metal cans are losing share to

alternative formats, with the
exception of beer, METAL
which accounts for a large portion
of metal can packaging.

Need proof? U.S. demand for converted flexible packaging is expected

to reach $20.7 billion in 2019, representing an increased transition from
rigid to flexible packaging, per Freedonia’s 2015 “Converted Flexible
Packaging” report. Although growth will slow from the past decade’s pace, PAPER
converted flexible packaging will remain a growth area in both food and
nonfood applications due to the inherent cost and performance advantages
of lightweight bags and pouches. Moreover, converted flexible packaging’s
source reduction, space savings, and lower production and transportation
costs will be increasingly valued by retailers and packaged goods firms
for its supply chain sustainability. All of these factors will drive further
conversions from rigid to flexible formats, Freedonia reported.
Data from Mintel’s “Global Packaging Trends, 2016” report support
PAPERBOARD
flexible’s rise to superstar status, noting flexible packaging experienced
a 56 percent growth rate in launch of consumer packaged goods (CPG)
packaging between 2010 and 2014. What’s more, 32 percent of consumers
associate flexible packaging with being modern, the report noted.

Companies [may be] more willing

to consider using flexible pouches PLASTIC
to replace metal cans. One driver of this
is that the pouches are much lighter,
which can cut shipping costs for products
that may normally be sold in metal
cans or glass.
— Tom Vierhile,
innovation insights director, GlobalData
LAMINATES

6 Food Insider Journal The Whole Package September 2017

 When it comes to trends within flexible packaging, Tom Vierhile,
innovation insights director at GlobalData, said pouch packaging
definitely is on the rise. While commonly used for applesauce and
snack fruit products, pouches are turning up in more food and beverage
categories, he said, citing the recent launch of Hunt’s Recipe Ready

81%
100% Natural Paste as an example.
“This may signal that companies are more willing to consider using
flexible pouches to replace metal cans,” Vierhile noted. “One driver of this
is that the pouches are much lighter, which can cut shipping costs for
of consumers products that may normally be sold in metal cans or glass.”
Other notable launches taking flexible pouch packaging to the next level
said they would choose include Kellogg’s Special K Granola, Kraft YES Pack bulk salad dressing for
resealable packaging over foodservice, Chicken of the Sea Flavored Tuna and Salmon varieties, and
non-resealable packaging McCormick Skillet Sauces.

54%
The Evolution of Packaging
Changes in demographics, lifestyles and eating patterns are creating
new opportunities for food and beverage packaging in the form of single-

would pay more

for packaging with added
features such as being
resealable or portion controlled
serve, portion-control and resealable packaging.
According to Packaged Facts’ August 2015 “Food and Beverage
Packaging Innovation in the U.S.: Consumer Perspectives” report, among
the demographic megatrends feeding into package development are
changing population distribution, fewer married couples and more people
living alone, smaller household size and multigenerational households.
These demographic changes are leading to changes in household
dynamics and eating behaviors, such as multishopper households, more
meals being eaten alone and more snacking on more occasions.
“Package innovation is playing a key role as food retailers respond to
an ongoing shift away from the traditional three sit-down meals a day in
favor of snacking and on-the-go eating,” said John Owen, senior food
and drink analyst at Mintel. “In an effort to capitalize on ever-evolving
eating occasions, brands should look to package products in single-serve
portions for greater portability.”
Notable product launches featuring single-serve or portion-control
packaging include Kellogg’s Eggo Bites in Individual Pouches, Skippy
Singles Peanut Butter Stack Pak, and Coca-Cola’s and PepsiCo’s mini
cans of soft drinks.

34%
In 2016, Mintel called out “Phenomenal Flexibles” as a global
packaging trend, noting flexible packaging is no longer considered a
compromise for brands as demand for single-serve packaging grows
of consumers and consumers associate flexible pouches with being contemporary.
Mintel reported 34 percent of consumers view flexible pouches as
view flexible pouches as “modern,” compared to 40 percent of consumers who perceive glass
“modern,” compared to packaging as “old-fashioned.”
“While the need for portability is forcing some brands to forgo glass for

40 % more convenient packaging options, glass hits on the trend of package

reusability, and is considered visually appealing to many consumers. As
such, brands that use glass packaging should market their products with a
of consumers second life for its package in mind,” Owen said.
Convenience also is a key selling point for food and beverage
who perceive glass packaging packaging, especially considering today’s fast-paced lifestyle. Packaging
as “old-fashioned.” benefits such as portability, ease of opening, resealability, lighter
weight and no-mess dispensing all can positively influence consumers’
Source: Mintel: Food Packaging Trends - US -
June 2016 Report purchasing decisions, noted Packaged Facts.

7 Food Insider Journal The Whole Package September 2017

 What’s more, 81 percent of consumers said they would choose resealable packaging
over non-resealable packaging, and 54 percent would pay more for packaging with
added features such as being resealable or portion controlled, according to Mintel’s
“Food Packaging Trends - US - June 2016” report.
Brands also are incorporating see-through windows or transparent packaging that
allow consumers to see the product before purchasing. According to Packaged Facts,
transparency in packaging taps into consumer desire for transparency about how
food and beverages are produced, both figuratively and literally. Companies that are
transparent about their ingredients, sourcing and business practices are reaping the
benefits in consumer goodwill and trust. Notable launches of products with transparent
packaging include Capri Sun clear bottom pouches, KIND Bars in clear wrappers, and
Hormel’s Skippy P.B. Bites in transparent cups.

Packaging Influences Consumer Purchases

Data from Packaged Facts’ National Consumer Survey conducted in April 2015 found
nearly 70 percent of respondents ranked freshness, closely followed by food safety, as
the “highest priorities” they look for in food and beverage packaging. Interestingly, fewer
than half of the respondents said preservation of natural nutrition, product identification
(variety, flavor, etc.), food preservation/shelf life, and preservation of natural food
Top three features
characteristics (such as flavor, color, texture) were their highest priorities. Moreover, only
consumers want are
29 percent of respondents said convenience was a high priority for them in food and food and beverage
beverage packaging. packaging that is
Furthermore, fewer than one out of five survey respondents “strongly agreed”
that packaging convenience, ease of use and packaging appearance are important tamper-proof,
considerations in choosing food or beverage products. A similar percentage strongly
agreed they avoid buying products with excessive packaging, and fewer than one in
easy to open
six strongly agreed they avoid buying food or beverage products if they dislike the and resealable.
appearance of the packaging. According to the report, the top three features consumers
want are food and beverage packaging that is tamper-proof, easy to open and resealable.

Sustainability: The Green Effect

Increased consumer demand for sustainable products puts pressure on companies
to embed “green” thinking into every aspect of the supply chain. A lack of awareness of
sustainability issues or a lack of engagement brings real risks to businesses—especially
if public perception of a brand or a company is damaged from practices such as using
unsustainable sources of materials or damaging ecosystems or habitats.

GlobalData recently surveyed U.S. consumers about which types of environmentally

friendly packaging are “extremely important” when making a purchasing decision
Results of the Q1 2017 survey found

28% 28%
Recyclable packaging Reducing unnecessary
25%
Reduced carbon
24%
Easy to separate different
22%
Compostable/
packaging footprint materials for disposal Biodegradable

22%
Made from
21%
Made from
21%
Lightweight/lower
21%
Refillable/
20%
Made from
renewable sources recycled materials weight packaging Reusable unbleached paper

8 Food Insider Journal The Whole Package September 2017

 Companies are turning to paper, plant-based fibers and recyclable materials
that are biodegradable or compostable to help reduce the environmental impact
of packaging.
GlobalData recently surveyed U.S. consumers about which types of
environmentally friendly packaging are “extremely important” when making a
purchasing decision. Results of the Q1 2017 survey found “recyclable” and
“reducing unnecessary packaging” top of mind at 28 percent, followed by
“reduced carbon footprint” (25 percent), “easy to separate different materials for
disposal” (24 percent), “compostable/biodegradable” (22 percent), “made from
renewable sources” (22 percent), “made from recycled materials” (21 percent),
“lightweight/lower weight packaging” (21 percent), “refillable/reusable”
(21 percent) and “made from unbleached paper” (20 percent).
Vierhile said one of the bigger stories is the move to compostable coffee
single-serve coffee pods. While Keuring’s K-Cup® pods have become the
Rising sales
darlings of convenient and portable single-serve beverages, they also of prepared
have been blamed for increased landfill waste because of their lack foods such
of sustainability and recyclability. To address the issue, Keurig as rotisserie
introduced its first recyclable K-Cup made from polypropylene chickens,
in 2016; the company has a goal to make its K-Cup coffee packaged salads
pods 100 percent recyclable in the United States by 2020
and in Canada by 2018.
or even full-scale
Single-serve bottled water also is another category food bars have
that has come under attack by environmentalists, which boosted demand
is why brands have worked to introduce products with for foodservice-
more sustainable packaging. Notable products include style packaging
Rethink Water Kids, which uses paperboard boxes; Just and suppressed
Water, with packaging that is 54 percent paper and 28
percent plant-based plastics; and Coca-Cola’s PlantBottle™,
gains for
a fully recyclable polyethylene terephthalate (PET) plastic made conventional
partially from plants. food and
But no matter the product, a key issue for sustainability in beverage
packaging is the importance of the appearance of sustainability, which packaging.
doesn’t necessarily overlap perfectly with the actuality of it, Richardson noted.
“Some of it is pretty straightforward—source reduction and shipping weights are —Mike Richardson,
senior industry analyst at
pretty simple concepts, and companies are financially incentivized to use less
the Freedonia Group
packaging materials that weigh less,” he said.
However, other parts of the equation are trickier. “Consumers don’t know, and
really can’t be expected to know the details of complicated lifecycle assessments,
and make grocery purchases based on those. Most people, however

According to Packaged Facts’August 2015

“Food and Beverage Packaging Innovation in the U.S.:
Consumer Perspectives” report, among the demographic
megatrends feeding into package development are
changing population distribution, fewer married couples
and more people living alone, smaller household size
and multigenerational households.

9 Food Insider Journal The Whole Package September 2017

 well-meaning, use a much simpler process and go with whatever looks or Few companies
seems most ‘sustainable.’ Most consumers have a general sense of what
can be recycled, and what widely used materials come from renewable have robust
sources and which don’t.” sustainable
But the sustainability question is often more complicated. As an
example, Richardson cited three main types of egg cartons—molded pulp, packaging policies
PET and expanded polystyrene. “Molded pulp is made from a renewable
material, PET is easily recycled and expanded polystyrene cartons use far
or system-wide
less plastic,” he said. “But the eco-conscious shopper is probably going programs to recycle
to gravitate to molded pulp, all other things being equal, because it looks their packages.
most sustainable.”

Recycling Challenges & Solutions

The “Waste and Opportunity 2015” report by As You Sow and the Natural
Resources Defense Council examined packaging practices of 47 fast food/
quick service restaurant (QSR) chains, beverage companies and consumer
good/grocery companies. The report concluded few companies have robust
sustainable packaging policies or system-wide programs to recycle their
packages.
In terms of retail beverages, New Belgium Brewing, Coca-Cola, Nestlé
Waters NA and PepsiCo were cited for “Better Practices,” and Dr Pepper
Snapple Group, Diageo and Anheuser-Busch were categorized as “Needs
Improvement.” Heineken, MillerCoors, Boston Beer and Red Bull were
identified as “Poor” for showing little to no leadership on packaging
sustainability, based on information the companies make public.
“We found that most leading U.S. fast food, beverage and packaged
goods are coming up significantly short of where they should be when
it comes to the environmental aspects of packaging,” said Conrad
MacKerron, senior vice president at As You Sow and author of the report.
“These companies have not sufficiently prioritized packaging source
reduction, recyclability, compostability, recycled content and recycling

Let’s Get Digital

Consumers also are looking beyond the packaging type or material and seeking out products that include
enhanced information such as QR codes that allow smartphones to digitally download more details about a food or
beverage product.
According to Mintel, digital printing is capturing brands’ attention by creating opportunities to engage consumers
on a local, personal and even emotional level. In fact, Mintel noted 2016 as a tipping point for digital package printing,
as brands moved beyond using it for limited editions and personalization, and capitalized on its economic and
speed-to-market advantages for mainstream package decoration.
Tetra Pak’s 2017 Index “The Connected Consumer” report also identified digital as an emerging trend and noted
brands can turn their industry’s most influential Super Leaders—a newly defined digital community of early adopters
and brand amplifiers—into brand advocates to spread messages, shape opinions and help build trust in products.
“Using new ways to reach connected consumers is especially important when you think of Generation Z,” said
Alexandre Carvalho, director marketing services at Tetra Pak. “They have been brought up in a digital-first world, and
expect brands to communicate on their channels of choice. The age of passive, one-way communication is over. Brands
need to adjust their communications and create more channel-specific, authentic and engaging content.”
The report also found packaging has an important role to play in consumer engagement. For example, digital codes
printed on packages can improve transparency of traceability, allowing consumers to access information about the
product right down to the source. The package can also be transformed into a conduit for two-way communication, where
brands can capture specific, valuable data about their consumers as well as share more information about the product.
“The digital package gives brand owners a direct link to the consumer through an important communication
channel—the product itself,” Carvalho said. “To make the most of this fully owned channel, Tetra Pak is piloting the
use of augmented reality and other digital technology in our packaging to help our customers stay ahead.”

10 Food Insider Journal The Whole Package September 2017

 Almost 71 percent of consumers
surveyed in 2015 said packaging for products should
be recycled, and 68 percent of consumers
said they make a conscious effort to recycle paper,
glass, cans and other items.

policies. Increased attention to these key attributes of packaging sustainability would

result in more efficient utilization of postconsumer packaging, higher U.S. recycling rates,
reduced ocean plastic pollution and new green recycling jobs.”
Strains on the global food supply chain also are making their way from the field into
consumer consciousness, which presents opportunities for food brands and retailers to
address those concerns through innovative packaging and product messaging, noted
Mintel’s Owen. “The prevention of food waste can be positioned not only as a good way for
consumers to save money, but also as a way to work toward reversing the growing food
waste trend through conscious consumption,” he said.
According to Packaged Facts, the majority of U.S. adults are in favor of recycling efforts,
which has grown since 2011. Almost 71 percent of consumers surveyed in 2015 said
packaging for products should be recycled, and 68 percent of consumers said they make a
conscious effort to recycle paper, glass, cans and other items.
However, despite brands’ best efforts, package recycling is well below its potential,
noted Mintel’s 2016 “US Food Packaging Trends” report, which found only 42 percent of
consumers recycle a majority of the food packaging they use. Interestingly, 25 percent of
U.S. consumers said product labels contribute to the low recycling rate because it’s often
unclear which packages can be recycled.
However, industry groups such as the Sustainable Packaging Coalition® (SPC) are
addressing the need for a more robust environmental vision for packaging. SPC is a
project of GreenBlue®, a nonprofit that equips businesses with the science and resources
to make products more sustainable. In 2008, SPC launched How2Recycle Label®, a
standardized on-package labeling system that clearly communicates recycling instructions
to the public. The mission of the How2Recycle Label is to reduce confusion by creating
a clear, well-understood and nationally harmonized label that enables companies to
convey to consumers how to recycle a package; improve the reliability, completeness and
transparency of recyclability claims; provide a labeling system that follows Federal Trade
Commission (FTC) Green Guides; and increase the availability and quality of recycled
material.
Food and beverage leaders such as ConAgra Foods, Plum Organics, Minute Maid,
Annie’s, General Mills, Kellogg’s, Kraft Heinz and Barilla have joined the How2Recycle
program, which includes 50 member companies representing the entire packaging supply
chain, from manufacturers to large retailers.

What’s on the Horizon

The call for sustainable packaging that doesn’t compromise product integrity will only
get louder as the issue of climate change continues to heat up, which means brands not
only should view sustainable packaging as a way to cater to eco-conscious consumers,
but also as a way to shape a consumer’s experience with the product. As noted by Mintel,
going forward, when product price and perceived product quality are equal, consumers will
be increasingly turning to eco- and alternative-use attributes as the deciding purchasing
factor, and brands cannot afford to ignore this as they develop their brand positioning and
marketing strategies.

11 Food Insider Journal The Whole Package September 2017

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 CATEGORY INSIGHT

Juices Under Pressure:

HPP Options
Boost Juice
Category
by Melissa Kvidahl

I
t wasn’t so long ago that juice was a staple of
American diets as well as cuisines around the world.
A balanced breakfast was incomplete without a tall
glass of OJ, and kids were encouraged to sip apple
juice as a wholesome alternative to milk.
But, oh, how times have changed. According
to Mintel’s “Juice and Juice Drinks - US” report,
published May 2017, the juice market is on
a downslide. Between 2016 and 2021, the
overall market is expected to grow 5 percent,
representing a 7 percent decline in sales when
Consumers concerned adjusted for inflation. To blame is the continued
with sugar content are sales decline of 100 percent juice, the report
less likely to noted. So, what shifted?
purchase 100 First, Mintel points out that while some
juices carry health benefits, consumers
percent juice, have come to associate the category
and are also less likely
to consider juice a with high-sugar content, which is at
staple breakfast odds with trends toward healthy eating.
beverage. Consumers concerned with sugar content
are less likely to purchase 100 percent
juice, and are also less likely to consider juice
a staple breakfast beverage.
Nowhere is this shift away from juice
more evident than in the case of orange juice.
According to data from Packaged Facts June
2017 “Ready-to-Drink Beverages: Culinary Trend
Tracking Series” report, household consumption
rates for orange juice dropped from 73.7 percent
in 2004 to 67.7 percent in 2016. The market
research firm speculated that, in addition to
concerns about sugar content, an increasingly
fast-paced lifestyle that doesn’t accommodate a
traditional breakfast at home could be to blame.
Plus, the popularity of Alissa Hamilton’s 2009
best-seller titled “Squeezed: What You Don’t
Know About Orange Juice” only further served
to alienate consumers. In it, Hamilton revealed
many mainstream orange juice brands store their
product for long periods of time and then use
flavor packs to revive flavor before packaging,
which struck a chord with many consumers who
stopped purchasing the juice altogether. The
result? By 2016, sales of bottled orange juice
posted a yearly decline of 6.5 percent, Packaged
Facts reported.
Most recently, in May 2017, the American
Academy of Pediatrics (AAP) delivered another
blow to juices. Previously, the AAP recommended
against serving juice to children under six months

13 Food Insider Journal The Whole Package September 2017

 of age, but put its stamp of approval on 4 to 6 oz. daily for children up to 6 years of
age, as well as 8 to 12 oz. for children over age 7. In the June 2017 issue of Pediatrics,
though, AAP changed its tune. It now recommends no juice whatsoever for children
under 1 year of age, and caps daily consumption at 4 oz. for toddlers and 8 oz. for
kids age 7 and older. It also recommends eliminating juice from the diets of children
who have excessive weight gain, insinuating that juice could be a culprit. Together,
these recommendations represent the AAP’s explicit policy goal of decreasing juice
consumption overall, based on its stance that fruit juice provides minimal nutritional
value. Instead, AAP says parents should skip juice in favor of whole fruits that provide
better nutrition for kids.

Processing Change Thanks to

To regain a foothold in the beverage space, and maybe even turn the tide of consumer HPP, Evolution
sentiment back to the juice aisle, juice manufacturers and brands are taking a new look at Fresh can meet its
their processing. And they’re finding an answer in high-pressure processing (HPP). goal of creating and
HPP, also known as cold pressure or cold-pressed technology, is a preservation marketing juices
method that’s transforming the juice market. Instead of using heat, which can diminish
the nutrient load of fruits and vegetables, HPP eliminates bacteria by using (as its name
that taste as close to
suggests) high pressure. The fact that cold-pressed juice is processed means it’s often fresh-picked juices
safer than raw juice, and boasts a longer shelf life. And because it’s heat-less means as possible.
fruits and veggies maintain their robust nutrient—and color—profiles, resulting in an — Anne Williams,
arguably healthier juice than those pasteurized with conventional methods. vice president of marketing,
“During HPP, our bottles of juices are immersed in cold water and then subjected to Evolution Fresh
enormous pressure to inactivate pathogens,” explained Anne Williams, vice president
of marketing, Evolution Fresh. “This allows us to ensure safety and help retain flavors
and nutrients. It also allows us to make our juice accessible to consumers nationwide
in the United States and in Canada by extending the life of cold-pressed juice.” Thanks
to HPP, Evolution Fresh can meet its goal of creating and marketing juices that taste
as close to fresh-picked juices as possible. And the company recently invested in a
264,000-square-foot state-of-the-art juicery in Rancho Cucamonga, California, to prove
it. The new facility is capable of sourcing, peeling, squeezing and pressing raw fruits
and vegetables, and can deliver HPP juice to more than 17,000 points of distribution in
the United States and over 1,200 Starbucks retail locations in Canada.
“While HPP has been used since the mid-1990s, in the past few years HPP within
the juice market has grown, as brands learned how to harness the process for their
own products,” said Suja Juice CEO Jeff Church. And though HPP may not be a
consumer-facing term that shoppers widely understand, it has enabled juice brands
to offer consumers the benefits they demand: healthier products with a natural label.
“There’s still a large opportunity to educate around the concept and benefits of HPP,”
Church added. “The result of HPP is fresher and more nutrient dense, which we
believe is what attracts consumers to these types of products.”
According to data from SPINS, attracting health-minded shoppers may
just be the shot in the arm the juice category needs. Though the overall
juice market is suffering, natural juices are doing quite well sales-wise. Fruit
juice with a natural positioning grew 6.6 percent in sales since one
year ago, and coconut water and kombucha—both arguably benefiting
from a healthy halo—experienced explosive sales growth to the tune
of 19 percent and 30 percent, respectively. Suja Juice alone grew 10,511

14 Food Insider Journal The Whole Package September 2017

 HPP has helped to make cold-pressed juices more widely accessible
and provide a safer and more convenient option for consumers who might
not have the time or resources to make their own fruit and veggie blends.
— Bill Lange, vice president of marketing CPG, C-Fresh,
a division of Campbell’s that includes Bolthouse Farms

percent over the past three years, reported Packaged Facts.
“HPP has helped to make cold-pressed juices more widely
accessible and provide a safer and more convenient option
for consumers who might not have the time or resources to
make their own fruit and veggie blends,” added Bill Lange, vice
president of marketing CPG at C-Fresh, a division of Campbell’s
that includes Bolthouse Farms and other brands. In this way,
HPP makes it possible for juice brands to invite all kinds of
consumers to the table: home juicers who thought ready-to-
drink (RTD) wasn’t for them, as well as an increasing base of
health-minded shoppers who avoid conventional juice due to
concerns surrounding high sugar and low nutrition.
Vegetables and Superfoods
One key benefit of HPP is that it preserves the nutrients of
a juice’s ingredients. And, as Euromonitor International pointed
out, this is an important attribute that can attract a consumer
base increasingly aware of the value of veggies.
According to Euromonitor International, public campaigns
worldwide have resonated with consumers, from Australia’s
Go for 2 & 5 (which encourages two servings of fruit and five
servings of vegetables a day) to the U.K.’s 5 A Day program.
Add to this the rise of the farm-to-table movement as well as
a growing interest in flexitarian (semi-vegetarian) diets in most
developed countries, and the result is an environment that’s
vegetable-friendly to say the least.
Juice makers have a clear opportunity to capitalize on
this interest with offerings that boast not just fruits, but also
vegetables. And, as a bonus, Euromonitor International said,
adding vegetables to traditional fruit juices lowers the sugar
and calorie content, while raising the nutritional profile.
This is a tactic evident in Bolthouse Farms’ 1915 Organic
juice offerings, which are each made with six or fewer organic
and non-genetically modified organism (GMO) fruits and
vegetables, and capitalize on “100 years of farming expertise,”
Lange said. The company’s deep burgundy variety includes
beet, orange, carrot and lemon; its green juice includes apple,
romaine, cucumber, spinach, kale and lemon.
Packaged Facts noted it took only a year or two for green
juices to go from just hitting shelves to going completely
mainstream, as they are now—and not just with niche brands.
Tropicana, for example, offers a Tropical Green juice that’s
100 percent juice and has no added sugar. It gets its deep
green hue from spinach and kale.
Including vegetables in juice will resonate with the
46 percent of consumers who told Mintel they want added

15 Food Insider Journal The Whole Package September 2017

 naturally
According to Euromonitor International,
healthy superfruit juice is projected
to be the fastest grower in the juice category
between 2015 and 2020.

health benefits such as vitamins and minerals in their juices, but who at the same time
may balk at the added vitamin C or zinc that have been included in conventional juices
for decades. Instead, consumers—especially younger ones—favor natural ingredients
with built-in functionality, reported Packaged Facts. In fact, Mintel found juices made
with superfoods are as appealing to consumers as those with added protein, with both
attracting 23 percent of shoppers.
According to Euromonitor International, naturally healthy superfruit juice is projected
to be the fastest grower in the juice category between 2015 and 2020. These juices are
expected to grow at a faster rate than fortified juices because consumers want functional
benefits without artificial ingredients—and superfoods deliver.
“With the wide variety of beverage options available on the market now, consumers are
looking for those cutting-edge ingredients that are both delicious and serve a purpose,” With the wide
Church said. variety of beverage
At Suja, both ingredients and purpose are on full display, with the ingredients listed on options available
the front label, and the product names reflecting those ingredients’ functional benefits. on the market
For example, Invigorate offers antioxidant-rich goji berries as well as a double dose of
fresh and fermented ginger; Green Delight contains the superfoods kale, spirulina and
now, consumers
chlorella alongside apple, banana and mango flavors; Twilight Protein boasts strawberry are looking for
and vanilla with almond milk and pea protein. This fall, Suja is taking it one step further with those cutting-edge
a line of organic kombuchas, “all of which contain 5 billion colony forming units (CFUs) of ingredients that are
Lactobacillus rhamnosus and adaptogenic ingredients such as ashwagandha, reishi and both delicious and
schizandra,” Church added. serve a purpose.
Superfoods are also front and center at Evolution Fresh, where the
company’s 2016 survey of natural channel shoppers revealed that — Jeff Church,
CEO, Suja Juice
health (alongside refreshment) was a top purchase driver for super
premium juice purchases. Soon after, in March 2017, Evolution Fresh
introduced cold-pressed Organic Superfoods Juices.
“Inspired by founder Jimmy Rosenberg’s morning superfoods
smoothie ritual, this new line combines cold-pressed fruit and
vegetable juices with cold-pressed coconut milk and at least seven
unique superfoods in each bottle, to deliver a nourishing on-trend
beverage with health-boosting antioxidants,” Williams said.
Evolution Fresh tapped into one of Packaged Facts’ juice
ingredients to watch—the functional Ayurvedic spice turmeric—
with three out of the four varieties it launched: Goldenmilk
is inspired by the traditional Indian beverage, and includes
organic coconut milk, turmeric and acerola cherry juice;
Thriving Greens includes spirulina, baobab and turmeric;
and Cocoa Spice is a bend of cocoa, acerola cherry, baobab,
turmeric, ginger and cinnamon. Turmeric also popped up in a launch
from Uncle Matt’s Organic called Organic Orange Turmeric with Living
Probiotics, offering 500 mg of turmeric per serving.
That said, brands with more of a mainstream following than a
niche one would be wise to ease into the functional ingredients or

16 Food Insider Journal The Whole Package September 2017

 vegetable trend, especially when it comes to green juices. While
green juices are growing in popularity, the truth is that they’re doing
so because the majority are actually fruit-and-vegetable blends,
noted Packaged Facts. Traditional supermarket channel shoppers
are interested in dipping their toes into this trend—desiring fewer
calories, less sugar and a nutritional boost from greens—but will
do so only to a point. Adding sweetness from lime or apple is key to
harnessing this consumer, who is only just beginning to experiment
with vegetable-based juices.

Beyond Breakfast
According to Mintel, the beverage market is in the midst of a
blurring trend, marked by products crossing multiple categories.
Typically, this tends to hurt beverage sales, since consumers are
bogged down with too much choice, and they don’t favor hybrid
beverages anyway. But when it comes to juices, blurring the lines
boosts product popularity.
Case in point: coconut water.
While the juice category struggles, the water category has
emerged as one of the greatest growers of the beverage industry.
According to Mintel’s January 2017 “Bottled Water – US” report,
sales of bottled water reached an estimated US$16.5 billion in the
United States, and are expected to reach $23.8 billion by 2021.
Mintel reported consumers are ditching sugary beverages like Sales of bottled water
carbonated soft drinks (CSDs), dairy milk and, yes, juices, in favor reached an estimated
of water. So, it’s no surprise that some juices are capitalizing on the
draw of plain old water to make their case to consumers. US$16.5 billion
Mintel pointed out coconut water as one example of this, since in the United States,
it is marketed as being nature’s great hydrator and 79 percent of and are expected to reach
consumers say they drink bottled water for hydration. Another benefit
for coconut water brands is their product isn’t necessarily a breakfast $23.8 billion
beverage (like juice), as it can be consumed at any time of day. It
benefits from a young, affluent consumer base, Mintel added. And, by 2021.

according to Euromonitor International, coconut water

SPINS reports that has been able to post strong sales growth outside
of its native Asia Pacific and Latin American markets
sales of coconut water by positioning itself as nature’s sports drink, high
in the United States have in electrolytes and low in sugar and calories. SPINS
reports that sales of coconut water in the United States
grown about have grown about 20 percent over the last year.
20 percent In this way, coconut water—by definition, a fruit
juice—has blurred across multiple categories of
over the last year. beverages, appealing to all kinds of consumers from
health connoisseurs to athletes to anyone needing
natural hydration (read: everyone).
Blurring the lines between juices and carbonated
soft drinks are sparkling juices such as Sanpellegrino,
Bai Bubbles, Ocean Spray Sparkling and the Synergy
line from GT’s Living Foods, which are all classified
as juices, noted Mintel, despite the fact that most
consumers may not consider them to be juices.

17 Food Insider Journal The Whole Package September 2017

 As consumers’ expectation for transparency increases,
brands have the opportunity to raise the bar
on what that will look like.
U.K. brand Coldpress, known for its cold-pressed
fruit and vegetable juices made using HPP, recently
launched two sparkling water juices, in Raspberry
Pineapple Apple Pear and Strawberry Apple
Watermelon varieties, designed to offer health-
conscious consumers something different than soda.
Yet another way juices are blurring the lines is by
crossing into the refreshment category.
Lemonade, for example, is finding success
in that it’s appropriate most any time of day and
is marketed as a refreshing treat. Mintel even
speculated that, unlike other juices, it benefits from
the fact that it’s shamelessly sweet since there’s no
notion that it should be a health beverage.
Unlike the overall juice category, lemonade posted
a 9 percent uptick in sales in the year leading
up to Feb. 9, 2017. Mintel reported lemonade
brands have an opportunity to specifically market
to younger consumers, as 52 percent of iGens
reported purchasing lemonade in the last three
months, and they tend to be receptive to unique
flavor profiles like fruity, herbal or even spicy
lemonade.
Evolution Fresh markets two lemonades made
with HPP: Organic Strawberry Lemonade and
Orange Spicy Lemonade with ginger juice and
cayenne pepper. Also crossing boundaries into
the refreshment category, the company launched
Watermelon Juice, made with just cold-pressed
watermelon juice and lemon. And, it blurred the line
into the iced tea category with tea-infused juices
that blend cold-pressed juice with cold-brewed tea
in three varieties: Raspberry Citrus Cooler, Blueberry
Mint Cooler and Tropical Hibiscus Cooler.
Going forward, experts agree HPP will continue to
enable juice brands to widen their reach, appealing
to all types of consumers, even as it remains largely
behind the scenes. “As consumers’ expectation for
transparency increases, brands have the opportunity
to raise the bar on what that will look like,” Lange
said. “HPP is not a common consumer-facing term,
but consumers look for beverages that incorporate
the benefits of HPP—great-tasting beverages with
nutritional benefits and a longer shelf life.”
18 Food Insider Journal The Whole Package
— Patrice Radden,
vice president of communications, Califia Farms
Coffee Talk
According to SPINS, refrigerated ready-to-drink (RTD) coffee is
on the rise, posting 72.1 percent sales leaps over last year. And if
there’s one hot trend in this category, it’s cold brew.
As opposed to the traditional coffee-making method, which brews
grinds in hot water, cold brew methods dictate that grinds are steeped
in cold water overnight. Fans of this approach say the result is a more
full-bodied and flavorful brew, and coffeehouses have been responding
with cold brews alongside traditional iced coffee offerings. So, it wasn’t
long before RTD beverage brands stepped up to offer cold brew on
supermarket and convenience store shelves as well.
HPP isn’t necessary to develop cold brew coffee, but it does offer that
something extra. “We utilize HPP to process our MOJO because it is a
purely cold-chain process, which allows us to maintain that freshly blended
taste MOJO consumers crave,” said Annie Brainard, chief blending officer
and MOJO founder. “Most RTD coffee—even cold brew—uses some form
of heat pasteurization, which generally degrades the taste slightly.”
Brainard said HPP has helped build MOJO’s business, especially
when it came to developing a milk-based coffee. But this is still an area
in relative infancy. Like juice consumers, RTD coffee consumers don’t
necessarily know about HPP, but favor its benefits. “They appreciate
ones that have [been processed with HPP], but they might not know
why,” Brainard said. “At MOJO headquarters, we often debate whether to
proactively educate our consumers about the process of making our cold
brew, or simply let them enjoy a healthful and powerful experience.
So far, the latter has won out.”
Going forward, HPP will help coffee brands
offer functional beverages, which high heat may
have deterred in the past.
According to Patrice Radden, vice president
of communications at Califia Farms, while there
will always be purists who want a simple black
coffee, more consumers are looking for function.
“For example, at Califia, we developed an MCT
[medium-chain triglyceride] oil- and protein-
enhanced RTD cold brew coffee called Full
Shot because we believe functionality is
a key part of the future of coffee,” she
said, “which goes hand in hand with a
future that offers many more options for
consumers to get direct trade-sourced
craft coffee on the go at grocery
convenience stores.”
September 2017
EXPLORE OPPORTUNITIES FOR THE
Clean Label Market
Consumers are demanding great tasting, healthy products
with shorter, cleaner ingredient lists. What does this mean for
product developers? SupplySide West has the answers. This
year’s SupplySide West education program includes three
workshops focused on defining, formulating and marketing
“clean label” foods and beverages.

Underwritten by

Tuesday, September 26 | 9am-Noon

Defining Clean Label: Moving From Trend to Norm

Tuesday, September 26 | 1:30-4:30pm

Clean Label Strategies and Formulation Considerations

Friday, September 29 | 8:30-11:30am

Developing and Delivering Clean Label Messaging

SEPTEMBER 25-29
EXPO HALL SEPTEMBER 27 & 28

REGISTER TODAY AT
west.supplysideshow.com

Dreaming
Cow:
The Bovine
Bliss Factor
C
alm, happy cows produce better milk, and better milk
makes better dairy products. That’s the philosophy for
Kyle and Janelle Wehner, who, in 2009, channeled
more than two decades of family dairy farming into Dreaming
Cow, a thriving yogurt and yogurt drink venture based in bucolic
Pavo, Georgia.
At this Shangri-La for cows, the emphasis is on low-stress
living. Cows enjoy a mostly outdoor existence, and graze
on expertly managed grass pastures year-round, thanks to
Georgia’s warmer climate. The rBST and rBGH hormone-free
herds are milked twice daily in an open-walled, New Zealand-
style milking barn that the Wehners say also encourages calm
because the cows don’t feel confined. And while grass-fed
cows typically produce less milk than grain-fed cows, the
emphasis at Dreaming Cow is on quality, not quantity.
“Not only is the milk higher in vitamins and contains
omega-3 fatty acids, grass-fed cows’ milk has up to
five times more CLA (conjugated linoleic acid) than
grain-fed,” said Dreaming Cow CEO Kyle Wehner.
20 Food Insider Journal The Whole Package
INNOVATION IN ACTION
by Joanna Cosgrove
Dreaming Cow
Headquarters: Pavo, Georgia
dreamingcow.com
From Yogurt to LUSH
Dreaming Cow’s first foray into the dairy segment was a
line of eight 6-oz. full-fat, cream-top yogurts (plus two 32-oz.
SKUs) that are currently sold in more than 3,500 natural foods
grocery, mass-market grocery, drug stores and grab-n-go
kiosks stores nationwide.
This spring, the company debuted its second product line:
LUSH Grassfed Yogurt Drinks. Available in four “subtly sweet”
flavors—Strawberry Raspberry with purple carrot and beet,
Blueberry Boysenberry with purple carrot and beet, Lemon
Passionfruit with carrot and pumpkin, and Peach Ginger with
pumpkin and carrot—each full-fat, preservative- and stabilizer-
free drink is nutrient-dense, packing a full serving
September 2017
 Made with grass-fed yogurt, natural fruits
and vegetables, this drink could be in the
produce section or the yogurt aisle.
It’s like a farmer’s market
in a bottle.

of vegetables, 11 to 13 g of protein, and Recommended Dietary Allowance (RDA) levels of the

antioxidants, vitamins A and C, iron, calcium, potassium and B vitamins into every 12-oz. bottle.
What’s more, LUSH includes more than 20 billion colony forming units (CFUs) of Bifidobacterium
BB-12 (from Chr. Hansen), a clinically studied probiotic renowned for promoting immune and
digestive health.
“Made with grass-fed yogurt, natural fruits and vegetables, this drink could be in the produce
section or the yogurt aisle,” Wehner noted. “It’s like a farmer’s market in a bottle.”
Dreaming Cow’s flavor combinations are developed and manufactured internally, which
affords the company to flexibly try new pairings as often as inspiration strikes.
“When it comes to flavor ideation, we work together as a team to come up with core
characteristics, and then hand the whole process over to Janelle, co-founder and COO of
Dreaming Cow, who goes to work in the kitchen making it all happen,” Wehner explained. “I
source hundreds of ingredients from all over the world that I find promising and make sure that I source
Janelle never runs out of options, as the original idea almost never comes out as it went in.” hundreds of
Once each flavor’s lab batch process is perfected, the company scales up to small batches for
taste-testing family and friends, who ultimately determine whether a flavor combo is market-worthy.
ingredients
While the company’s yogurt-making venture was an unassuming process, developing LUSH from all over
was more complex. With LUSH, the company sought to define and create a product that aligned the world that I
with the tastes and attitudes of today’s busy but health-conscious consumers. find promising
and make sure
that Janelle
never runs out
of options, as
the original idea
almost never
comes out as it
went in.’
— Kyle Wehner, CEO,
Dreaming Cow

OVER 20 BILLION FULL FAT NUTRIENT

PROBIOTICS GRASS-FED MILK RICH

21 Food Insider Journal The Whole Package September 2017

 We wanted our nutritional label to reflect
the goodness we are fitting inside the bottle, so
we chose to use nutrient-dense vegetables while
knowingly accepting a higher SRP [suggested
retail price].
— Kyle Wehner, CEO, Dreaming Cow

“We found that most Americans are not

getting enough fruit and vegetables a day, but
they are more thoughtful than ever before about
what they’re putting into their bodies,” Wehner
commented. “Flavor and convenience seem to
be the biggest obstacles. Seeing a major void in
the market, our vision and purpose behind LUSH
is to bring a convenient and delicious ‘wellness
on-the-go’ yogurt drink with noticeable nutritional
increases that everyone can enjoy anytime.”
Because of its unique profile, extra research
and development (R&D) was warranted. “Not
having any real template to go off, we took a very
data-driven approach and used our formulation
software in SAP to make sure production costs
would stay in line with our expectations,” he said.
LUSH’s development challenges included
sourcing ingredients that had the right flavor
balance, nutrient density and, of course,
price. “For instance, it would have been very
easy to get a full serving of vegetables using
cucumbers, but since cucumbers are mostly
water, we weren’t seeing any real nutritional
benefit from their inclusion,” he explained. 
“We wanted our nutritional label to reflect the
goodness we are fitting inside the bottle, so we
Janelle and Kyle Wehner, creators of Dreaming Cow.
chose to use nutrient-dense vegetables while
knowingly accepting a higher SRP [suggested
retail price].” The total realization of LUSH spanned about a year, with the initial
At present, LUSH is kosher certified and concept proposed in spring of 2016 and the product prototypes outfitted in
Wehner said the company is working on several their finished packaging by March 2017. LUSH hit the market in July and
other unique certifications that reflect the year- is on track to be carried in about 2,000 stores by the end of 2017. LUSH
round grazing production practices they maintain is a finalist in the Functional Food/Beverage category in the 6th Annual
at their farms. SupplySide CPG Editor’s Choice Awards that recognize achievements in
“Our family collective of dairies is large innovation and market impact in 27 categories. Winners will be announced
enough that we are not going to have to worry on Sept. 28 at the SupplySide West show in Las Vegas.
about running out of milk for years to come,
and our factory has just been upgraded, with Commitment to ‘Clean’
three additional upgrades already planned, to The concept of clean label can mean different things to different
accommodate aggressive growth,” he said. companies. To Dreaming Cow, clean label is tantamount to the definition of
simplicity. “The product is not manipulating nutrition, texture or flavor with
food science voodoo in the name of profit and/or deceptive marketing,”
Wehner said. “The consumer wants transparency and is smart enough to
realize when they are being misled.
“I don’t personally believe that you have to have less than X number
of ingredients or ingredients that are easily pronounced to have a ‘clean
label,’ but rather ‘clean label’ is about creating a wholesome product using
honest ingredients, each with a discernable and easily communicated
purpose, that the consumer can feel good about putting in their body.”

22 Food Insider Journal The Whole Package September 2017

 The company is committed to doing everything it can
to produce eco-friendly products, including keeping an Food
For
eye on the environmental footprint of its packaging. For
example, its new yogurt cups use 40 percent less plastic
than conventional 6-oz. cups and are joined together with
recyclable cardboard labels.
Dreaming Cow’s concept of clean even extends to the
very ground that nurtures the company’s happy cows. The
Thought
company follows a “no-till drill” process when planting its
pasture grasses, leaving the soil undisturbed and preserving
nutrients and organic matter that are typically lost when soil is
turned over. Define a void in the market
“Our farms are constantly sequestering carbon into the soil
as organic matter and humus, leading to enormously nutrient- and create a product that
dense, biologically active pastures that actually improve the land aligns with tastes and attitudes
over time instead of bleeding away the nutritive value as many
agricultural [practices] have done in the past,” Wehner said. of today’s health-conscious
Connecting With Consumers consumers.
Despite being a small company with a commensurately
small marketing budget, Dreaming Cow is connecting with
consumers via a handful of consumer-friendly digital marketing Don’t skimp on ingredients
and store-level engagement endeavors. It also has invested in to save costs—using higher
an “experiential marketing van” that will travel the country in
2017-2018 promoting LUSH. priced, nutrient-dense
In addition to acquainting consumers with its products, the
company is also keen on communicating its transparency
vegetables reflects commitment
and its commitment to the humane treatment of cows and to product quality and integrity.
sustainable farming. It accomplishes this through its packaging,
website and social media platforms, including impromptu live
Facebook videos direct from the farm. Selecting clinically studied
“As Millennials become a bigger buying segment in the
marketplace, they are demanding better nutrition from the foods
ingredients, such as probiotics
they eat,” concluded Jason Therrien, Dreaming Cow’s national for immune and digestive
account director. “They are driving companies to be more
innovative and are challenging the status quo in nearly every health, boosts the product’s
category throughout the grocery store [and] they also want to functionality.
see complete transparency of how the food they eat is made,
and who makes it.”

The company is committed to doing everything it can to

produce eco-friendly products, including keeping an eye on
the environmental footprint of its packaging. For example,
its new yogurt cups use 40 percent less plastic
than conventional 6-oz. cups and are joined
together with recyclable cardboard labels.
23 Food Insider Journal The Whole Package September 2017
 INNOVATION IN ACTION

Tio Gazpacho:
Freshness Is the Foundation
of Health and Flavor by Danielle Rose

In
college, Austin Allan, founder of Tio Gazpacho, went
to Spain for a short semester that ended up lasting
four years. As he fell in love with the country, he fell
in love with its cuisine as well, particularly the fresh, healthy
flavors of gazpacho—a traditional Spanish soup made with raw
ingredients and served chilled.
Upon returning to the United States, Allan began a career in
banking, but couldn’t get gazpacho off his mind. He founded
Tio Gazpacho in 2012 with the intention of doing for this simple
dish what other companies had done with other traditional
European foods, such as Greek yogurt.
“I was exposed to a product I had never heard of before,”
Allan said. “I fell in love with it, brought it back to the United
States, and reimagined it for an American customer.”
Tio Gazpacho
Headquarters: New York
tiogazpacho.com
History Tells All
Tio Gazpacho began in Miami, with products undergoing two
years of testing and sampling before Allan moved the company
to New York. Tio Gazpacho debuted at Natural Products Expo
East in 2014, and the first three flavors launched in stores in
January 2015.
Last year, the brand had an explosion of growth, launching
the first of three new flavors, and closing a US$1.25 million

24 Food Insider Journal The Whole Package September 2017

 Series A funding round with 301 Inc., General Mills’ business
development and venture capital arm.
One of Tio’s defining moments was its merger with
Michelin-starred chef José Andrés and his company,
ThinkFoodGroup in November 2016. Beefsteak is Andres’
fast-casual concept where vegetables take center stage. Tio
began manufacturing multi-serve packages for use in Andres’
restaurants, which now sell the gazpacho in the restaurant’s
grab-and-go section under the Beefsteak label.

It’s All About Variety

Tio’s all natural line of six varieties is high-pressure
processed (HPP) in BPA-free bottles, paleo, gluten-free, non-
GMO (genetically modified organism) and certified vegan.
The original three flavors had a focus on gazpacho’s
signature ingredient: tomato. Classico is traditional red
tomato with green pepper and cucumber, while Del Sol is
sweet and bright with yellow tomatoes and peppers, plus
carrot. Verde adds avocado, kale, spinach and mint to the
traditional tomato soup.
In June 2016, Tio Gazpacho debuted Rosado (watermelon,
cilantro and cayenne). Maiz (corn, roasted poblano and lime)
and Fresa (strawberry, basil and romaine) were added in
February of 2017 to much success.
Austin Allan, founder of Tio Gazpacho.
Packaging Is Everything
Allan understands and respects how freshness is the
foundation of both health and flavor, and wanted to bring
these elements of Mediterranean cuisine to the United researched was pasteurization, concerned about the effect
States. Add to that the fast-paced, on-the-go lifestyle of most heat would have on his raw food product. This was when he
American consumers, and Allan knew he had to get creative discovered HPP.
with the packaging for Tio Gazpacho. Instead of using heat, HPP is achieved through water. Bottles
Unlike most soups, Tio is meant to be eaten cold, which are placed in a chamber, which is then flooded to approximately
makes it perfect for quick, healthy meals and ideal for single- 80,000 pounds of pressure per square inch. This resembles
serve packaging. However, retaining the flavor and health conditions at the bottom of the ocean and, just like humans
value of fresh ingredients lent itself to unique production cannot survive if plunged to sea bottom, such an intense and
considerations, such as a short shelf life, high price point and rapid change in pressure creates a hostile environment for
concerns about sustainable packaging. The first thing Allan shelf-life reducing organisms, as well.

Tio Gazpacho’s initial launches included

Rosado (watermelon, cilantro and cayenne)

Maiz (corn, roasted poblano and lime)
Fresa (strawberry, basil and romaine)
25 Food Insider Journal The Whole Package September 2017
 “The big argument for HPP is more about flavor,” Allan said. “You can taste the individual
ingredients of the product, but when it’s [heat] pasteurized, [the flavors] becomes one note.”
He knew this was the best, if not only, way to sell his vision of a fresh, raw, nutrition-packed
single-serve gazpacho.
“I knew that I wanted single-serve packaging,” Allan said. “In Spain, I bought cartons [of
gazpacho], but I drank it out of the carton. HPP preserves nutrition as well as flavor. This was a no
brainer for me. I wanted the HPP, and I wanted bottles, so it was a perfect match.”
vine-ripened
tomato
About the Bottles
Since HPP requires a flexible container that can give under pressure, that meant no glass, no green pepper
metals and no cartons. These restrictions, combined with Allan’s intention for the product, made
PET bottles the obvious choice. This BPA-free and recyclable option enriches an already health- cucumber
conscious product that is also mindful of the health of the planet.
“I recycle everything I can, and I think about sustainability in all aspects of my personal life,” he
said about his decision for PET bottles. “Now, as an entrepreneur, I think about that in my business
as well. I know that there is only a small percentage of recyclable plastics.”

Labeling: The Inside and Out of Real Food

Tio’s original label was transparent, allowing consumers to see the product on the shelf.
However, since it is all natural, each flavor looks similar, and retailers were confusing the
different varieties. This led the company to adopt a wrap-around label that was color-blocked on
three sides, but transparent on the back. This compromise offers a more vibrant, less confusing
face on the shelf, while still allowing consumers a clear view of the product. This is important,
as the texture and inherent bits of produce should speak for the purity and wholesomeness of
the gazpacho, Allan noted.
This belief in whole, unadulterated food has been with Allan since he was a young boy. A few
years ago, he found a childhood quote he made while on a tasting panel for Consumer Reports
for kids. He had favored yogurt with fruit pieces, because he said the pieces showed it wasn’t
made in a laboratory. Twenty years later, Allan maintains that preference through a product with
real food and pieces to prove Tio is the real deal.
“It’s a product that has some substance to it, but is still drinkable with a good texture,” he
said. “It has good mouthfeel, little tiny bits of corn or strawberry [depending on the variety], so
you know it’s real food.”
The beauty of Tio Gazpacho is in its simplicity. The produce ingredients are blended to pulp,
the oils and spices are added, and everything is ground in a blender. That’s it. From there, it’s
bottled, high-pressure pasteurized and shipped to retailers. It’s the HPP process, however, that
retains the product’s high quality and flavor.

High-Pressure Processing (HPP)

100% Produce Crushed Bottled Cold, High-Pressure

Processed
Never Heat Pasteurized ENJOY!!

26 Food Insider Journal The Whole Package September 2017

 “The beauty of HPP is that it never heats the product, so it still tastes raw
and fresh.” Allan said. “At events, I’ve had Spanish people say to me, ‘This Food
For
tastes like my grandmother’s gazpacho!’ That’s the ultimate compliment.”

Supply and Sustainability

Thought
Tio has made significant changes in its supply to reduce costs, allowing
the company to meet consumer needs without affecting quality. For example,
the original bottles came in 12-oz. sizes, which consumers found too big for a
single serving. The original varieties were also certified organic, which posed
unique sourcing and pricing concerns. Bottles now come in 10-oz. sizes, and
the produce is fresh and sustainably sourced, but no longer certified organic.
This permitted a significant reduction in cost—the original product retailed
at around $9 a bottle, but is now half that—making Tio Gazpacho more Opting for
accessible to more consumers. conventional over
Opting for conventional over organic produce does not mean skimping on
quality, however. Tio now utilizes the same produce buyer as the company’s organic produce
partner, ThinkFoodGroup, allowing both businesses to acquire quality produce
directly from a variety of different farmers and growers at affordable prices.
can significantly
This fluidity in sourcing allows for greater sustainability, as produce is chosen reduce costs without
from nationwide suppliers based on season, price, availability, quality and
growing conditions.
compromising quality.
Product Placement and Growth
Although product placement varies depending on the retailer, Allan said Tio Investing in costlier
Gazpacho has had favorable response when placed with savory soups and
snacking items in refrigerated grab-and-go sections.
production steps such
Much of Tio’s growth has happened organically through word of mouth, as high-pressure
Allan said, as well as through traditional public relations efforts. Additionally,
in-store demonstrations and features in nationwide publications have gone a
processing and
long way to building the brand, fostering awareness and boosting sales. recyclable packaging
The company’s website is clean, vibrant and peppered with easily understood
Spanish phrases and down-to-earth language, mirroring the down-to-earth results in product
quality and vibrant flavor of the product itself. “We’re a start up,” Allan said. integrity and consumer
“We’re not a stuffy brand, and I wanted the brand to reflect that.”
Another boon for business has been offering the product at airport loyalty.
restaurants and kiosks. “It’s a great product for airports,” he said. “When
you’re hungry there, you don’t want something messy; you want something
nice and quick.” Don’t be afraid to
Philanthropy change labeling if it
Tio Gazpacho takes fresh, quality ingredients like those in its bottles and offers a more vibrant,
helps bring them to the world through its partnership with Development
in Gardening (DIG). The Atlanta-based nonprofit helps disease-affected, less confusing face
vulnerable populations across the world gain the skills they need to build
sustainable gardens that provide not only food, but a source of income to
on the shelf, while
improve the health of their families and communities. allowing consumers
Allan said as a company that creates a premium
product, it’s his obligation to give back, and what better
a clear view of the
way to do this than through a small organization like product.
DIG that makes big strides worldwide.

27 Food Insider Journal The Whole Package September 2017

 CONTACTS

Clean Label Strategy & Formulation

Food Insider Journal EDITORIAL

Editor
Food Insider Journal focuses on Judie Bizzozero ...................................... judie.bizzozero@informa.com
clean label strategy and formulation, Contributing Editors
Joanna Cosgrove
exploring how the shift to simple and
Melissa Kvidahl
natural is impacting the food and Danielle Rose
beverage market. Content Marketing Manager
Karen Butler ........................................... karen.butler@informa.com
Legal and Regulatory Editor
Josh Long ............................................... josh.long@informa.com

SALES
Vice President, Sales, Health & Nutrition
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Senior Account Director
Ioana Neacsu........................................... ioana.neacsu@informa.com
Account Managers
PRESIDENT Fred Linder
Anthony Arteca ....................................... anthony.arteca@informa.com
VICE PRESIDENT,
Todd Berger ............................................ todd.berger@informa.com
HEALTH & NUTRITION Jon Benninger
Laurel Rivers .......................................... laurel.rivers@informa.com
VICE PRESIDENT, CONTENT,
HEALTH & NUTRITION Heather Granato Todd Willis .............................................. todd.willis@informa.com
Business Development Specialist, Asia
HUMAN RESOURCES
DIRECTOR Donna Layton Jiani Lai .................................................. jiani.lai@informa.com

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28 Food Insider Journal The Whole Package September 2017