Leaders of the wine industry are asking the community to rally and appeal tax hikes. As the industry continues reeling from losses related to COVID-19, a new round of potential tariff hikes threatens the industry. In 2020, a 25% tariff imposed on certain European wines and cheeses was described by some as the greatest threat to the wine and spirit industry since the prohibition era. U.S. President Donald Trump imposed the tariffs in retaliation for a tax imposed in France on several large American tech ferns, such as Facebook, Google and Airbus.

Read more (Vinepair)

How does fermentation impact your cup of coffee? Fermentation in coffee processing may be one of the most misunderstood fermentation mediums. But, VinePair notes, “The fermentation process is critical to shaping a coffee’s flavor because, like wine, it produces the cup’s acidity and fruit notes through the breakdown of sugars by yeast and bacteria. Because coffee cherries start to ferment soon after picking, how the farmer or local cooperative handles that process has a direct impact on the coffee’s eventual flavor. Processing methods vary by geography, climate, logistics, and tradition, but the three main types are natural, honey, and washed.”

Read more (VinePair)

When consumers buy beverages today, they want drinks that go beyond simply quenching thirst. Drinks today need to meet consumer’s health needs, too — improving sleep habits, aiding gut health, lowering stress levels and boosting energy.

 “There’s this real explosion of outcome-based beverages in the industry at the moment,” says Howard Telford, head of soft drinks for Euromonitor International. “Ten years ago, it was easy to identify what was an energy drink. That’s no longer the case, clearly. Because every category now has some form of products on the shelf with a functional proposition. These ingredients-based category lines are blurring. Consumers are rethinking what’s our morning option, what’s our late afternoon option, what’s our evening beverage.”

Clean ingredient lists with functional appeal will differentiate brands. In a beverage trends webinar hosted by FoodNavigator, brand leaders in the beverage industry shared their insight. Here are six beverage trends for 2020:

1. More Consumer Need States for Different Ingredients

Modern beverages straddle between food and dietary supplements.

“Every time (consumers) spend a dollar on a drink or a food item, they want that food or drink item to do more for them,” says Chris Fanucchi, co-founder of drink brands Limitless and Koia. “Brands are starting to put more marketing on the front of their labels, that say ‘Hey, we help you with calming you or with inflammation or with pain or anxiety.’ As consumers start to see that more and more, they’re going to start to expect that. And the second they start to expect that is when the consumers are going to be demanding that their beverages have more and more function to them. So a functional beverage right now I think is definitely about identifying those need states that are more relevant to consumers today.”

2. Mindfully Purchasing Natural Health Products

Consumers are looking for ingredient lists without artificial ingredients (33%) and with limited or no sugar (35%), according to research by Euromonitor International. Sixty percent are following diets – lowering carbs and saturated fat, monitoring weight and tracking calories.

Holly McHugh, marketing associate with Imbide, thinks consumers will seek out healthier products at the end of the coronavirus pandemic. “Like a detox that you see in January because people have overindulgences over the holidays…I do think there will be a bump when people go back to their normal lives.”

“There’s absolutely a stigma against sugary products for your overall health. And people are really concerned about their health right now,” McHugh says.

However, McHugh doesn’t think brands will completely abandon sugar. Instead she hypothesizes brands will provide more options. Like a full-sugar, low-sugar and no-sugar drink, then drinks with alternative sweetener like stevia and natural sweetener like honey.

3. Rise of Cannabis/Hemp in Beverages

Consumers are experiencing mounting stress due to the pandemic and are seeking drinks with stress-reducing ingredients.

Estimates show legal cannabis sales will rise to $150-170 billion by 2023 according to Euromonitor International, mostly from North America. Huge innovations in CBD industry as proving hemp-derived drinks is a growing market. CBD-infused beverages grew by 500% last year.

“I think CBD is going to be a very big category,” adds Thomas Hicks, chief growth officer for Ojai Energetics, which produces various CBD products, including a CBD drink. “The consumer demand is phenomenal and you can see that online. About 90% of our business is direct to consumers.”

Ojai Energetics has seen sales increase 20% during the pandemic.

CBD is poised to become as big of a category as energy drinks. However, more clarity around CBD needs to be provided by the Food & Drug Administration. Thomas notes the FDA has not yet defined the different elements of CBD.

“It’s a race to the bottom if you don’t have really good branding and, quite honestly, a patented process,” says Hicks, who has formerly worked with big drink giants like Hansens and Coca-Cola.  

4. Cost Major Factor During Health, Economic Crisis

Brands looking to add more premium ingredients to their drinks need to note consumer’s pocketbooks. Howard Telford, head of soft drinks for Euromonitor International, said he predicts certain drink categories will decline because of cost in a COVID-19 era.

“This event (coronavirus pandemic) is translating to an economic crisis more than a public health crisis, I think we have to be very cognizant of price,” he says.

Comparing sales during the 2008 Great Recession, Telford says consumers will trade down premium products. “Affordable luxury” needs to be the focus of new drink launches, adds McHugh.

“I think cost will be a really important consideration given the uncertainty of the economy right now,” McHugh says. “Brands will need to introduce products that are affordable and meet those clean, quality, functional qualities during this time.”

5. Brands Need to Better Educate Consumers

As more consumers routines are impacting during the outbreak and they turn to healthy eating during, will they turn to kombucha over Coke? Telford believes so. Long-term, consumer’s beverage choices will change because of COVID-19. They’re reducing sugar, trusting health ingredients.

“When we decide to indulge, we’re conscious of the ingredients in those products,” he adds.

Especially CBD.

“There’s still so much education around CBD with the general public,” Hicks adds.

Research provides CBD helps regulate the immune system, and consumers are becoming savvier and seeking out that research, Thomas says. Key, he adds, is researching the specifics behind CBD brands. Brands should publish their lot number certification online. Consumers should easily be able to research CBD batches should go through two different labels to make sure they are acceptable and organic, he advises.

6. Shelf Brand Launch Until Post Pandemic

Faccuchi, who sold Limitless to Pepsi/Keurig last year, said smaller companies are struggling securing capital to launch. An entrepreneur, Faccuchi invests in beverage companies.

“Lots of clients, especially in the energy category, are having zero luck with retail meetings, confirmation of placement on shelves,” Faccuchi says. “They’re seeing around waiting for those opportunities. It makes it all the more difficult when there’s really no light at the end of the tunnel. These brands could lose a lot of cash over the next several months, they could go belly up.”

His advice to people wanting to launch a new beverage company: “Make sure the category you’re jumping into actually has a need. I run into a lot of entrepreneurs who build this awesome product out of different ingredients that you’d never hear of, and the unfortunate truth is some of those ingredients are just not supply chain ready. So you can’t get the price point necessary for consumer to actually try the brand, which is the No. 1 thing when you’re launching a new company. So make sure you’re identifying a need space that people actually have. Your best way to test that is online marketing.”

Find people in food and beverage industry that are looking to champion brands, he advices. “Those people do exist.”

Hops used to be the biggest thing in beer to create a powerful flavor — now it’s yeast strains. Brewers are using yeast strains from around the globe for the best flavor.

According to the New York Times: “For some time, it’s been a hopped-up arms race as breweries regularly double or triple the amount of hops to create stronger aromas. With breweries using the same hops, many beers are starting to smell alike. … In search of distinct aromas, brewers are embracing yeast and bacteria strains from across the globe. They’re creating beers that let each type of microbe speak its unique language, and drinkers are listening.”

DeWayne Schaaf, owner of @ebbandflowfermentations Ebb & Flow Fermentations brewery in Missouri, calls himself a “yeast nerd.” He does not use commercial yeasts in his drinks, instead fermenting with yeast strains from Scandinavian farms, bottles of Spanish natural wine and Colorado dandelions. Few hops are required in his drinks as, during fermentation, the yeast converts sugars into alcohol for the flavors.

Other fermenters featured in the article include: @omegayeast Omega Yeast (supplier of yeast strains in Chicago), Berg’n (a beer hall in New York), @alvaradostreetbrewery Alvarado Street Brewery (brewery in California), @yeastofeden Yeast of Eden (brew pub in California), @bootlegbiology Bootleg Biology (yeast lab in Tennessee), @whitelabsyeast White Labs (yeast supplier in North Carolina and California) and Lars Marius Garshol (Norwegian author of “Historical Brewing Techniques: The Lost Art of Farmhouse Brewing

Read more (New York Times)

Weathered Souls Brewing Co., a black-owned brewery in Texas, has launched the Black is Beautiful initiative to bring awareness to racial injustice and “show that the brewing community is an inclusive place for everyone of any color.” They are encouraging breweries to develop their own Black is Beautiful stout. Weathered Souls has shared a stout base recipe, and ask breweries to develop their own creative spin on the drink. A free label has been provided on their website, and the campaign encourages breweries to donate a portion of sales of the stout go to local foundations that support police reform and legal defenses.

Stout is a top-fermented beer that ranges in color from dark brown to almost black.

Marcus Baskerville, founder and head brewer at Weathered Souls, told the San Antonio Current: “The brewing industry is pretty eclectic, with all kinds of different people in it. Why wouldn’t this community be one to join together to support a message of equality and purpose to support the concept of general respect for everybody?”

Read more (San Antonio Current)

How to make fermentation practical for modern people? That’s a culinary goal Alex Lewin is passionate about reaching. Lewin is the author of “Real Food Fermentation” and “Kombucha, Kefir, and Beyond” (and member of TFA’s Advisory Board). His mission is “lowering barriers to fermentation.”

“Most of the ways we control the environment is lowering the barrier of fermentation for the microbes, like adding salt to the cabbage or keeping yogurt at the right temperature,” Lewin says. “But a lot of what I’m doing is lowering the barrier of fermentation for the humans.” 

Lewin began fermenting as a hobby, and it turned into a passionate side career. Lewin works in the tech industry for his day job, then spends his spare time immersed in fermentation projects. His schedule parallels his interests. Lewin studied math at Harvard University, then studied cooking at the Cambridge School of Culinary Arts. He’s often tinkering with a microbe-rich condiment in the kitchen after office hours, and attending new fermentation conferences during his vacation time. 

“Fermentation gives me direction in my life, but there’s also something about tech that nourishes me. And I don’t have to choose,” Lewin says. “The fermentation world, it is a huge amount of community. The community of fermenters really reflects the community of microbes. There’s some very interesting, very open-minded people who are outside of the mainstream in the fermentation world. And a lot of them feel they have a calling, that they were called to do this.”

Below, excerpts from a Q&A with Lewin from his home in California’s Bay Area:

The Fermentation Association: What got you first interested in fermentation?

Alex Lewin: I’d always been interested in food and started cooking a little in college. My dad had heart disease and later diabetes and he was on these diets and pills, but things didn’t seem to be getting him any better. When I got interested in health and nutrition during this time, I partly did it out of fear for my own life. 

I started reading books about health, nutrition, diet, food. What struck me was they all said different things. I had studied math, physics, and generally the experts agree more or less on the obvious stuff. There’s discussion on the origin of the universe, yes, but no disagreement about what happens when you drop something and it hits the floor. I was surprised at the difference. One cookbook would say what would really matter in your health is your blood type — another would say the ratio from carbs to fat to protein that you eat, you have to eat them at a certain ratio at every meal. Then another book says don’t eat protein and carbs together, have space between them. I would read and was intrigued and frustrated. I had this idea that it should make sense and it didn’t make sense.

I was in a bookstore one day and I saw the book “The Revolution Will Not Be Microwaved” and thought it was such a fantastic title. It was about food politics and underground food movements and food subcultures. It was written by Sandor Katz and he writes with so much heart, very intelligently. He writes about radical food politics and has this way of keeping it very balanced and measured. Some books about radical politics can be shrill, but there’s nothing shrill or strident about anything Sandor does.

I wanted to read what else Sandor had written and found “Wild Fermentation,” and made my first jar of sauerkraut. In the meantime, there’s another book that affected me a lot, “Nourishing Traditions” by Sally Fallon. And that book similarly blew my mind. That book took all these diverse threads of diet, health and nutrition and pulled them all together in a way no other book has or has since. I felt like I finally understood what to eat, where before it was a free-for-all.

One of the things I learned to think about when you’re eating are foods with enzymes, microbes and live foods that weren’t processed with modern processing techniques. That really set me on my path.

TFA: After that, you spent the next decade diving into fermentation. You went to cooking school, started teaching fermentation classes, got involved with the Boston Public Market Association. How did your book “Real Food Fermentation” come about?

Lewin: A friend of mine who had a chocolate business recommended me to a book publisher. That was for “Real Food Fermentation,” my first book, in which I made it as easy as possible for people to ferment things. I knew from my class, making sauerkraut is not very complicated, and once people see it and how easy it is, they’re likely to keep doing it. So in my book, there are lots of pictures. There are lots of people with kitchen anxiety who are more comfortable if they see pictures of everything — pictures of me slicing the cabbage and putting it in the jar. I’m not a visual learner, I want to see words and measurements and numbers. So the book has both. 

As time went on, I ended up meeting Raquel Guajardo (co-author for Lewin’s book “Kombucha, Kefir, and Beyond), and we decided to write a book about fermented drinks. I think it’s a great book because we both got a chance to share our ideas about food and health and what is happening in the world. Then we got to share recipes from my experience and her experience as a fermented drink producer in Mexico, where some of the pre-Hispanic traditions are very much alive.

Fermented drinks I think are also easier. They’re a little less weird to people than sauerkraut and kimchi, they’re less intimidating. We all drink things that are fizzy, sweet and sour. But like kimchi, it is so far outside of the usual experience of eating. Most people know they shouldn’t drink five Coca-Colas a day, so fermented drinks are the answer.

TFA: Tell me more about your goal to lower the barrier into fermentation.

Lewin: What is it about kombucha that is familiar? It’s fizzy, sweet and sour. What is soda? It’s fizzy, sweet and sour. I’m certainly not the first to observe that, but I’m connecting the dots on how we can integrate these ancient foods into our modern lives.

For me, I always considered myself an atheist. Then when I started fermenting, I started letting go and thinking there are things outside of our control and we just need to accept them. There are things we will never understand completely, there are forces we don’t even know about. I came to faith and spirituality through the practice of fermentation.

A lot of the problems that we face today have been created by application of high technology to the food system, then we try to solve them by using more food technology — like growing fake meat. The problems caused by high tech are not going to be solved by high tech, they’ll be solved by low tech. And fermentation is one of my favorite low tech technologies. You pretty much just need a knife.

Fermentation also gets away from the western, scientific, medical paradigm that’s so reductionist, where we’re looking for some small isolated problem in the body and then trying to counter it. Looking for some metabolic issue and trying to neutralize the symptoms. “Your blood pressure is high, let’s lower it with a pill.” If the underlying causes of all these things are eating bad food, trying to attack the symptoms one at a time is not the easiest way to make progress. We have to move away from this reductionist mindset where we’re playing whack-a-mole with our symptoms. We’re healthier looking for the underlying problems and addressing them.

Gut health is a big one. All sorts of other problems caused by high-tech, processed foods. Eastern medicine has more of an idea of holistic health, what’s going on in the system. I think that’s the future. I think a lot of the health problems will be solved through system-type thinking. This balance of energy. There’s a dynamic of equilibrium in our gut.

TFA: You mentioned Sandor Katz’ book “Wild Fermentation” introducing you to fermentation. What about his book appealed to you?

Lewin: There’s something rebellious about making food and leaving it out on the counter. I hadn’t been to cooking school yet at that point when I read it. But you read about food safety and there are rules, you can only leave food on the counter for so long at this temperature. There are all these things you’re not supposed to do with food. But in order to ferment, you have to violate these rules to grow the microbes. There’s something rebellious about fermentation.

Another part of it is the utterly low tech aspect to it. All the trouble we go to to process our food in high tech ways today, turns out we can do it better without preservatives, without heat packing things, without the refrigerator. 

When you ferment something, every time it’s a little different. And you can keep doing it again and it doesn’t matter if it wasn’t perfect. And a lot of times you can do something interesting with it. I made pickles the other day, they turned out soft, so I’m going to make them into relish. Too much sourdough starter? Turn it into a porridge. Your kombucha got too sour? Turn it into vinegar. Sometimes something can be ruined, but often you can turn it into something else. Being able to make kombucha that’s better than most of the store-bought kombucha is pretty cool — I discovered that ability. 

TFA: Why do you encourage people to incorporate fermented foods in their modern diet?

Lewin: One of them is just coming back to the kitchen. During the coronavirus pandemic, people are coming back to their kitchens. That’s an unqualifiedly good thing, it means that much less processed food and that much less fast food. Fermentation also brings people back into the kitchen. And fermentation is in the limelight during the pandemic. Especially sourdough right now. Fermented projects are great things to do with families, kids. When you talk to the older generation about making sourdough, pickles, bread, they have these stories. My mom never made pickles, but her father did. It’s not too late to get these stories. Food is one of the things that connects generations of people, that reminds us of our roots and grounds us, literally.

Making anything with your hands, it’s a cure for all sorts of things. Not even getting into physical, digestive health. Just making something and liking it is psychologically healthy. You feel empowered in the face of so many disempowering things. If you can turn cabbage into sauerkraut, you have power.

And then there are all the concrete, physical health benefits of eating fermented foods. You get more enzymes, more vitamins, more microbes, you get more of the good microbes and fewer of the bad microbes. You get probably less processed food, less sugar, you get all these trace substances that you really don’t get from processed food. Like nattokinase, which is this enzyme you only find in natto and might protect against heart disease and cancer. Depending on the ingredients you use when fermenting, if you use the right salt and right sweeteners, you can get minerals. Fermenting in some cases creates vitamins. You can straighten out a lot of digestive problems in my experience by introducing fermented foods, gradually. 

TFA: You’ve watched Americans’ diets adapt (or not adapt) over the past few decades to changing health standards. How have Americans’ perception of fermented food and drink changed in that time?

Lewin: Americans are absolutely more accepting of it. The story of kombucha is a good one. You can follow annual kombucha sales. You used to say “kombucha” and people would say “Ew” or “What’s that?” or “My crazy aunt makes that.” Now, it’s a billion dollar business. You can get it in mainstream supermarkets in most of the country, it’s not a fringe thing anymore. Fermentation is coming to the mainstream. Kimchi is not a fringe thing. I think the rise of food culture, with food reality TV shows, has really helped fermented things like kimchi. When food trucks in LA started having kimchi and Korean BBQ tacos, for me I felt like something had turned the corner. The rise of microbreweries and the interest in natural wines and the movement away from like super-oaky chardonnays and ginormous reds to more natural wines. I think people are a lot more sophisticated about food than they were 20 years ago, and a lot of that is leading to increased interest in fermented foods.

Fermented foods are no longer fringe. We’ve come a long way in 20 years. Kombucha and kimchi are two of the flag bearers of fermentation. I think fermentation is on the rise. People will say “I think it’s just a fad,” and I’ll say “It’s absolutely not a fad.” People were fermenting 10,000 years ago. It never left. Every drop of alcohol you’re drinking, that’s fermented. It never went away, it was under the surface and now it’s on the surface again. People are just realizing it’s important. 

TFA: Where do you see the future of the industry for fermented products?

Lewin: I think the more people ferment at home, the more people are going to want to buy fermented things. The more people ferment at home, the more they’ll appreciate fermented products and seek them out. It’s not like there’s a competition between home fermenting and commercial producers. If anything, there’s a symbiosis. I’ll make kimchi sometimes, but I’ll buy it sometimes, too, because it’s messy and there are people that make very good kimchi. Same with kombucha or high alcohol kombucha. I could make it if I wanted to, but it requires time and patience. Miso is another example, I don’t have the patience to wait six months to make miso.

Craft breweries, which were heading into their second decade of a major boom, are now shuttering during the coronavirus pandemic. “There’s going to be a lot of dead distilleries coming out of this,” said Paul Hletko, the founder and distiller of FEW Spirits, in Evanston, Ill. “Even if you survive, the new normal is going to be punishing for small brands.” Craft distilling relies on bars, tasting rooms, face-to-face sales and customers willing to pay a higher price for a premium product — all factors dramatically changing with social distancing and a global recession.

Read more (The New York Times)

Sales of functional foods and beverages — products that provide additional nutrients — grew 5.3% to $71.4 billion in sales in 2019, at a growth rate two times faster than conventional products. Sales of function foods and beverages were $68 billion in 2018. (New Hope Network)

The coronavirus outbreak forced coffee prices to spike in April, with coffee futures estimated to rise 15% in May. Though prices are high, coffee farmers internationally are suffering. The COVID-19 lockdown in Colombia is disrupting coffee exports, the lockdown in Brazil is causing container shortages and a locust invasion in East Africa is hurting harvests. Despite rising prices, consumers are still purchasing coffee. CNBC analysts suggest the price increase could be short lived, as coffee shops reopen again and the public begins consuming stockpiled coffee supplies.

Read more (Food Dive)

Amazake — an ancient, fermented superdrink from Japan — is jumping in sales in Japan. Boyband Kanjani Eight was even hired as spokespeople for Hiyashi Amazake, a popular Japanese brand. Amazake was developed around 250 to 538 AD. It’s made by boiling rice, water and koji for 8-10 hours. It’s a sweet drink with a lumpy texture, and its name translates to “sweet sake” (thought it only has trace amounts of alcohol thanks to the fermentation process.) Amazake has earned the nickname “drinkable IV” because it’s packed with nutrients and gut-friendly bacteria. In Japan it’s considered a drink and a health product.

Read more (BBC)