Reviving Sake with SoCal Style
James Jin of Nova Brewing Co. doesn’t want to create a Japanese-style sake — he’s working to create a Southern Californian sake.
Jin uses Calrose rice grown near Sacramento, imports koji and yeast from Japan and designs his own brewing equipment. The flavor of his modern sake is thanks to a secret blend he uses to make the koji rice (the base for the sake), utilizing both yellow and black koji spores, as well as yeast from the Brewing Society of Japan. The flavor — more wine-like, fruitier, higher in acidity and easily paired with food — “it’s a lot more appealing to the younger generation.”
“I respect the history of sake brewing, but it’s a dying art in Japan,” Jin says, adding, “Sales of sake [are] constantly going down [there]. I’m one of the few brewers in America trying to bring the dying art back to life.”
“I’m not a Japanese brewer. I’m an American brewer. I purposefully do things they wouldn’t do in Japan.”
Nova Brewing produces four sakes and 10 craft beers at their facility in Covina, California. They are the only craft sake brewery and tasting room in Los Angeles County — and the only sake and beer hybrid producer in California.
Read more (Los Angeles Times)
- Published in Business, Food & Flavor
Post-Pandemic, Sales Plateaus for Fermentation Brands?
This is the first in a series of articles that TFA will be releasing over the next few months, analyzing trends from our Member Survey.
Though fermentation brands overwhelmingly reported substantial sales gains during the Covid-19 pandemic, they’re not breaking out the champagne. Now, nearing fall 2021, many are starting to see sales flatten. This trend is consistent with sales for the food industry at large, which started to plateau in March 2021.
Most fermenters reported struggles meeting demand — packaging shortages (38%), costly and time-consuming Covid-19 sanitation protocols (30%), distribution delays (29%) and ingredient and labor shortages (both 28%). Then there’s the challenge of keeping a fermented product in stock with constantly changing sales demands.
Jared Schwartz, a TFA Advisory Board member, is founder of fermented sauce producer Poor Devil Pepper Co. and director of operations and quality for Farm Ferments (a facility in Hudson, N.Y., that is home to Hawthorne Valley Farm). He says forecasting has been especially difficult for a refrigerated fermented food with a processing cycle more delicate than that of its shelf-stable counterpart.
“While these spikes in sales are incredible, they also depleted our on-hand WIP [Work-In-Progress],” Schwartz says. He would project barrels of fermenting vegetables to provide adequate inventory for a certain length of time, but peak pandemic demand depleted stock. Finding new ingredients is difficult because everything is sourced locally. “With fermentation, there is of course a much longer lead time on a finished product as the process can’t be rushed. So these challenges left us extending our production season and looking to source from the spot market, which is generally out of our norm. We generally source 95% of our ingredients from New York State and base our projections around the trajectory aforementioned.”
Sales Flatten After Record Year
While predicting sales has been difficult — especially as many states are again increasing Covid-19 restrictions because of the Delta variant — some brand leaders were prepared for a decrease in sales in 2021.
Kheedim Oh, founder of Mama O’s Kimchi (and also on TFA’s Advisory Board), said sales doubled in 2020. But, this summer, they fell dramatically from that peak. “July was terrible,” Oh says, but they “anticipate a boost in the fall since summer months are typically slower.”
Revenue almost tripled in 2020 for hard kombucha brand Dr. Hops, but sales have since started to flatten. The company had secured new distribution before the pandemic, then redesigned their product line this year. “We would have likely done much more… if we had been able to do all the field sales and marketing we had planned,” says Joshua Rood, co-founder and CEO of Dr. Hops Real Hard Kombucha,
Hawthorne Valley is seeing a similar downturn. Sales from March to April spiked about 50%, with overall year-over-year growth at 46%. But “things have definitely plateaued for now,” Schwartz says.
Supply Chain Nightmares
Small packaging supplies — like the tiny plastic caps for glass kombucha bottles — caused huge production issues. Hannah Crum, president of Kombucha Brewers International, says this was the biggest challenge for brewers. “It’s had a massive impact,” she says.
Twenty-four percent of survey respondents said they anticipate production constraints will continue to be a challenge throughout 2021.
And though sales remain strong for Bubbies pickles according to John Gray, owner of Bubbies (and TFA Advisory Board member), “glass shortages have affected the entire industry. Sales are strong, but shortages persist,” as he describes the pandemic’s double-edged sword facing many fermented brands.
Production and distribution issues hit frozen pizza brand Alex’s Awesome Sourdough, too — packaging costs went up 10%, and freight expense nearly doubled. But these didn’t slow the company’s growth. They expanded massively in 2020, from 100 to 1,500 stores. An overall uptick in frozen food sales helped them as well, especially as competing pizza brands went out of stock.
“Sales are strong as pizza is a seasonal category and the end of summer and early fall are the beginning of peak season,” says Alex Corsini, founder of Alex’s Awesome Sourdough (and another TFA Advisory Board member). “We anticipate sales being even stronger if Covid protocols remain strict and restaurants continue operating at a limited capacity. Restaurants definitely take a piece of our pie (pun intended).”
- Published in Business
Kombucha Brewers Push to Change Outdated Law
Kombucha producers across the U.S. have organized an awareness campaign for the KOMBUCHA Act. The legislation — which was reintroduced into Congress this year for the 5th year in a row — would exempt kombucha from excise taxes intended for alcoholic beverages.
The KOMBUCHA ACT Days of Action, organized by the trade organization Kombucha Brewers International (KBI), is from September 14 to 18. The act would raise the alcohol by volume (ABV) threshold for kombucha from its current level of 0.5% to 1.25%. Producers plan to lobby, emailing representatives, posting on social media and encouraging the public to sign a petition in support of the bipartisan bill.
In a statement from KBI President Hannah Crum, she points out that kombucha is not an alcoholic beverage. The fermented tea rarely exceeds 0.5% ABV, while light lager beers contain about 3.2% ABV and most craft beers are 5% or higher. (Note: hard kombucha, an increasingly popular drink option, is specifically brewed to have higher alcoholic content and is labeled accordingly.). Here are some of the key paragraphs from her statement:
“Today, most kombucha sold in the United States contains trace amounts of alcohol due to the fermentation that occurs during production. The alcohol, a natural preservative, acts to protect kombucha’s live cultures, as well as the safety of consumers, from unwanted pathogens,” Crum says. “Traditionally made kombucha seldom tests above 1 percent ABV, as kombucha cultures are not suited to high levels of alcohol, so this level allows kombucha brewers to feel confident distributing their products by providing ample buffer room to shield them from the threat of this tax.”
“Nevertheless, for the purpose of assessing federal excise taxes on beer for its alcohol content, the Internal Revenue Code defines the term ‘beer’ in a way that encompasses kombucha, if the kombucha contains 0.5 percent or more of ABV.”
“For kombucha brewers, this federal law presents a real dilemma. While their kombucha may be leaving the facility below the 0.5 percent ABV threshold, trace alcohol can increase slightly – in some cases above 0.5 percent ABV – if the product is exposed to temperature fluctuations on distribution trucks or grocery store shelves after it has left the kombucha brewery.”
“Under the current law as written, kombucha brewers have a Damocles sword hanging over their heads. That is, their kombucha can leave the brewery untaxed, only for its ABV level to rise slightly above 0.5 percent once out of their control, thus becoming subject to the federal excise taxes.”
Hard cider makers waged a similar battle in 2015. Federal law had limited hard cider to under 7% ABV, but cider makers (particularly smaller producers) found it difficult to control alcohol levels because of apple varieties and cultures. Congress passed a bill increasing the allowable alcohol content in hard cider to 8.5%.
Crum continues: “While hard cider is an alcoholic beverage and kombucha is not, the two products nonetheless share a similar issue: the alcohol level in each can vary naturally due to fermentation.”
“As with cider makers in 2015, this dilemma and the anxiety it causes kombucha brewers would be easily remedied through the enactment of a similar common-sense update: the bipartisan KOMBUCHA Act (H.R. 2124/S. 892) now being considered in Congress. The bill – sponsored by House Representative Earl Blumenauer (D-Oregon) and Senate Finance Committee Chairman Ron Wyden (D-Oregon) – creates an exemption in the tax code for kombucha, so long as the ABV level of the product is 1.25 percent ABV or lower.”
Crum says many kombucha producers limit growing their business “in order to protect themselves from this risk, as well as facing burdensome costs of testing to comply with the arbitrarily restrictive limit.” There are over 600 kombucha producers in the U.S. Kombucha has “garnered a cult following in the last 20 years for its unique taste and probiotic benefits,” she says, adding:
“We are hopeful that Senator Ron Wyden (D-OR) and Congressman Earl Blumenauer (D-OR) and their colleagues on both sides of the aisle (multiple Republicans in various states have co-sponsored the bill) can succeed in getting this legislation enacted into law this year. If they do succeed, they’ll pave the so-far rocky path for a new and rapidly growing industry that promises to add thousands of jobs with benefits to the economy at a time when they are desperately needed.”
- Published in Business
Can Poi Survive as Taro Farmers Quit?
Hawaii’s traditional dish, poi, is in danger. Fewer farmers are growing taro, the starchy root vegetable that is fermented to make it.
Historically, poi was a staple for native Hawaiians and in Polynesian countries. Today it’s mostly served at celebrations and luaus. The purple, paste-like dish is made by cooking and mashing taro root, then leaving it to ferment for a week. Poi develops a sour flavor, similar to yogurt.
But taro farming is steadily declining. Honolulu Civil Beat points out that growing, cultivating and cooking taro “is hard work that’s not always profitable.” Limited access to farming land and Hawaii’s wet climate also make taro a difficult crop to raise. And production and sales data — the basis for Federal and state subsidies — under-represent actual activity, as many farmers trade taro to friends and family instead of selling it to retailers.
Read more (Honolulu Civil Beat)
- Published in Business
Fermented Fungi Forge Forward
The alternative protein industry continues to explode in growth — and fermented mushrooms are leading the pack as the preferred meatless protein. In a recent article, the World Economic Forum highlighted mycoprotein, the protein-rich, flavorless “foodstuff” made from fermenting mushrooms. Companies creating alt proteins with fungi “are starting to sprout almost overnight,” the article notes.
Mycoprotein has a big advantage over plant-based proteins, as it has a meat-like texture that can then be flavored to taste like animal meat. Plant proteins must go through further processing to replicate a meat-like texture, and many plant proteins retain the taste of the original plant.
The mycoprotein production process was developed and patented by UK brand Quorn in 1985. But their patent expired in 2010, and the food technology is now available for all.
Read more (World Economic Forum)
- Published in Business, Food & Flavor, Science
U.S. Celebrities Infiltrate Mexico’s Tequila Industry
Tequila sales last year were 60 million gallons, 800% higher than two decades ago. This agave-based spirit has become so popular that distillers are “selling it at the price of gold.” What caused the boom? Celebrity endorsements.
From George Clooney to Arnold Schwarzenegger, LeBron James to Nick Jonas and Dwayne “The Rock” Johnson to Kendall Jenner, celebrities have made billions off their tequila brands.
A Los Angeles Times article highlights the pros (a booming local economy in Mexico, tequila being introduced to more people) and the cons (environmental concerns, agave plants harvested too young, diverse crop fields and forests turned into monocultures of agave, foreigners taking over a traditional drink) of this growth. The article continues:
“Pre-Hispanic Indigenous groups in Mexico had been fermenting agave into a viscous alcoholic drink known as pulque for centuries when Spanish conquistadors arrived in the 16th century and first distilled tequila. It has since evolved into an $10.8-billion-a-year industry.”
Read more (Los Angeles Times)
- Published in Business
The State of the Art in Coffee Fermentation
More specialty coffee producers are developing unique approaches to their coffee bean fermentation, isolating native microorganisms to create a flavorful cup or working closely with rural farmers to utilize fermentation control techniques on small-scale operations.
“Practically all the coffee we drink has been fermented in one way or another. But there is huge room for improvement, innovation and development in the realm of coffee fermentation,” says Mario Fernández, PhD, Technical Officer with the Specialty Coffee Association (SCA). The SCA partnered with The Fermentation Association for the webinar The State of the Art in Coffee Fermentation.
Fernández continues: “Coffee is produced by millions of small coffee producers around the tropics that have very little capital to invest in fermentation equipment. Oftentimes, the price is too low for them to add fermentation controls as part of the cost equation. Therefore, for perhaps 99.9% of coffee in the world, it undergoes wild fermentation, in which the microbes grow on the mass of mucilage in a wild fashion and the coffee producer only controls certain parameters, such as the length of the fermentation.”
Two industry experts on the forefront of coffee fermentation technique and technology joined Fernández — Felipe Ospina, CEO of Colors of Nature Group (multinational specialty coffee trader) and Rubén Sorto, CEO of BioFortune Group (a coffee, upcycled and food ingredient manufacturer based in Honduras).
Post Harvest Processing Technology
Sorto is adapting fermentation technology to coffee, mapping the microbiota of the bacteria and yeasts that are present at Biofortune Group’s farms.
“We realized that fermentation was one of the key aspects of the coffee production that hadn’t been addressed,” Sorto said, noting fermentation is controlled in industries like dairy, wine, beer and bread but not in coffee. “We learned that our soil, our water, our coffee trees, our leaves, our [coffee] cherries, had a large compendium of bacteria and yeast that were involved in the posterior fermentation process…some of the yeasts and bacteria were definitely beneficial and were urgently needed during the fermentation but some of them were not.”
To maximize flavor, they focus on that complex array of bacteria and yeasts, preferably indigenous to the countries of origin. These microorganisms thrive in their local environment, reflecting altitude and temperature. To control the fermentation of those bacteria and yeasts, Biofortune reduces the variables, including monitoring pH levels, alcohol content and container contaminants.
“If you are able to control the fermentation, you are also able to offer a higher-quality product, a consistent quality product…and that’s what the market is looking for, consistent quality in a cup,” Sorto says.
Educating Coffee Farmers
Ospina, meanwhile, is researching fermentation techniques accessible to small-holder coffee producers and training them. The goal is for them to understand the role of each microorganism, discover how to use it in fermentation, then scale that knowledge to small-scale operations, so they can produce incredible coffees.
At La Cereza Research Center, the Colors of Nature facility in southern Colombia, they are experimenting with fermentation processes. Some alcoholic fermentations result in coffees that produce coffees that taste of whiskey, cognac, champagne, sangria or even beer. Lactic fermentations might produce coffees with flavors of banana, mango, papaya, grapefruit or even cacao. “This is showing us the potential is humongous,” Ospina says.
“Wild fermentation is the ultimate expression of the terroir and it’s very important for us because the terroir produces unique coffees,” Ospina says. “The thing is, we don’t understand wild fermentation yet, but I’m very against demonizing wild fermentation. Why? Because we have seen hundreds and hundreds of outstanding, amazing coffees from all over the world that have been produced with wild fermentation.”
There are challenges. Food safety is a big concern. Ospina teaches the use of disposable gloves at the farm level to prevent contaminants, and to put a new plastic bag in the bioreactor for each batch of beans to avoid cross-contamination.
The cost of implementing fermentation technology can be high. Sorto recommends to start by buying each farmer a pocket pH meter and a refractometer to closely monitor the fermentation.
“Translating science and technology to small farmers with very little investment will help them increase the possibility of a higher income because if you are not able to control fermentation, you are risking the effort of a one year harvest,” Sorto advises.
- Published in Business, Food & Flavor
Should Groceries Eliminate the Ethnic Aisle?
In America, where 40% of the population identifies as nonwhite, why do grocery stores still have an ethnic aisle? The outdated aisle initially began after World War II as a way for soldiers to buy the food they ate while in Italy, Germany or Japan. But the European foods, like pasta sauces and sauerkraut, eventually became integrated with the rest of the store, while foods from BIPOC countries stayed put.
Heads of ethnic food brands and grocery chains have been pushing for a change, but it’s been a hard sell. Doing away with the aisle is a layered problem — and still not the most popular approach with food professionals.
“Several food purveyors of colors see the aisle as a necessary evil — a way to introduce their products to shoppers who may be unfamiliar with, say, Indian food — though a barrier to bigger success,” reads an article in The New York Times.
Some ethnic brands come to store buyers with little capital to get their products on the shelf, so the only spot for them is on the ethnic aisle. They will never break out unless they’re acquired by a larger company. Larger corporations, like Pepsi or Nestlé, can afford to pay stores to put their products on shelves with prime product placement. And large ethnic brands (like Goya beans and Maruchan ramen) are placed on both ethnic aisles and their respective traditional product section because they’re considered broadly recognized.
But many products with international flavors made by nonwhite brands are not placed on the ethnic shelf. The Times shares the story of Toyin Kolawole, who runs the African ingredients brand Iya Foods. Kolawole tried to get her cassava flour into the flour aisle with a Midwestern retailer with no success. But when cassava flour began trending as a substitute for traditional flour, bigger companies launched their own cassava brands — which were put in the flour aisle.
On the flip side, other food professionals note that consumers turn to the ethic aisle in search of international flavors. Customers like the convenience. There is a fear that unique ingredients (like tamarind or pomegranate molasses) without a clear spot in a grocery store would get lost in a conventional aisle. And, even worse for some brands, integration in an American grocery store means being “divorced from its cultural background.”
Read more (The New York Times)
- Published in Business, Food & Flavor
Beyond Kombucha: Pu’erh, Jun and Dark Tea
Tea consumption globally is increasing. But consumers don’t want a cheap, poor quality tea bag. They’re buying premium teas — and increasingly, dark, fermented teas.
“What’s trending right now seems to be authentic tea, tea that has great flavor, more closely married to the terroir. People are beginning to understand that it’s just fine to have tea. You don’t have to have coloring in it, you don’t have to have a lot of bits and pieces of fruit and flowers, there’s a genuine benefit to just understanding the terroir and keeping it simple,” says Dan Bolton, the founder, editor and publisher of Tea Journey. Bolton and two tea experts discussed two lesser-known fermented tea varieties in the TFA webinar Beyond Kombucha: Pu’erh, Jun and Dark Tea. “Tea just isn’t as good as it could be, without fermentation.”
A new study on tea demonstrates how important fermentation is to tea quality, Bolton says. Researchers from the Anhui Agricultural University in China recently studied the effect of surface microbiomes on the quality of black tea. The results found microbial fermentation in non-sterilized control tea samples produced complex compounds and more flavorful teas than with sterilized tea leaves. The results were published in the Journal of Agricultural and Food Chemistry.
“It’s a remarkable finding because, certainly for the last century or so, there’s been a lot of discussion about whether fermentation plays a role in the production and processing of tea,” Bolton says. The study proves “black tea is actually a result of both fermentation and oxidation.”
Pu’erh Tea
Jeff Fuchs — author, Himalayan explorer and co-founder of Jalam Teas — shared details of pu’erh tea. Pu’erh is a tea style from a strain of camellia leaf cultivated and produced in the Yunnan province. Fuchs spent over a decade living in there and is the only Westerner to have traveled the Tea Horse Road through Sichuan, Yunnan and Tibet.
“Pu’erh is a tea that certainly I think it’s been deliberately mystified to some degree,” Fuchs says. “It’s interesting that you have this very simple, raw material green tea that is now arguably one of the great boutique commodities.”
Fuchs stresses consumers need to research tea sourcing. Where is the tea coming from? How was it stored? Who stored it? Older tea cakes are being sold for large amounts of money, but can have questionable provenance.
“Young teas I think are making a big assertion in the tea world right now because they represent a closer line to the terroir, a closer line to the origin point,” he says, adding dark teas are becoming more popular in North America. He sees more bartenders experimenting with dark teas, playing with flavor compounds. “I think dark teas will come into the sway more and they’ll remain.”
Jun Tea
Jun is another tea style making waves in the fermented beverage market. It is a type of kombucha, but the base is green tea and honey instead of black tea and sugar. Brendan McGill shared his experience making jun — he is a chef and James Beard nominee; he owns the Hitchcock Restaurant Group in Seattle and the newly-launched Junbug Kombucha.
“Jun is a very special style of kombucha,” McGill says. “It’s shrouded in mystery, where these cultures originated. What we do know is how they’ve been developed and manipulated in fairly recent history. One of the joys I’ve had with this is just being extremely creative because i found that while the fermentation isn’t necessarily a delicate process, it has allowed us to modify and use a lot of different inputs that it’s actually a pretty robust fermentation process.”
McGill began making kombucha over a decade ago, as a replacement for beer and wine. He liked jun for its similar flavor to alcohol, the additional bioactive compounds that create a more nutritious drink and it’s made with honey instead of added sugar.
Junbug Kombucha uses filtered water, organic green tea, wild honey and, of course, a SCOBY. In the secondary fermentation, fresh herbs, berries and even mushrooms are added. Junbug flavors include Chaga Root Beer, Chili Raspberry and Maui Mana.
- Published in Business, Food & Flavor