The U.S. FDA released a final ruling on gluten-free labelling of fermented and hydrolyzed foods. The final rule covers yogurt, sauerkraut, pickles, cheese, green olives, FDA-regulated beers and wines and hydrolyzed plant proteins. Though gluten breaks down during fermentation and hydrolysis, the FDA says there are currently no valid, scientific, analytical methods to determine the gluten protein content in fermented or hydrolyzed food. To comply with gluten-free standards, the new FDA ruling requires food manufacturers to only use gluten-free ingredients before they undergo fermentation or hydrolysis.
“These new compliance requirements for labeling a product ‘gluten-free’ will protect individuals with celiac disease, an incurable, hereditary disorder that millions of Americans, including myself, live with,” said Alex M. Azar, secretary of the US Department of Health and Human Services. “The FDA’s final rule helps to ensure common products labeled ‘gluten-free’ really are gluten-free, equipping consumers to make the best choices for their health and their families.”
Read more (FDA)
Under the new kombucha Code of Practice, can a drink still be called kombucha if it’s sugar-free, hard, filtered, dealcoholized or made from a syrup base?
Yes, says Hannah Crum, president of Kombucha Brewers International (KBI), the organization that made the code. But that variation needs to be defined on the label. Crum shared details behind the development of KBI’s new kombucha Code of Practice during a webinar with The Fermentation Association, moderated by fermentation author (and TFA Advisory Board member) Alex Lewin. KBI released the code in July with the aim to provide consumers with transparency.
The code is meant to help the kombucha industry self regulate as it continues to grow, providing separate seals for both certified and traditionally fermented brews. This approach, according to Crum, leaves room for all types of kombucha. KBI is in the process of finalizing the definition for each of these classes of kombucha.
“We’re going to see fermented beverages as a category proliferate,” Crum says, noting drinks like kefir, fermented sodas and kvass will all face the same regulations as kombucha. “We want that diversity. There’s going to be a kombucha for every time, place and flavor. Everyone will have a personal profile, and there’s going to be a flavor for everybody.”
Kombucha has gained huge favor among health-conscious consumers, and the industry has grown to over $600 million in sales. The beverage has historically been made with a traditional recipe of tea, sugar and SCOBY (symbiotic culture of bacteria and yeast.) But kombucha in its original recipe is a hard process to commercialize and today many brands sell kombucha in various forms. The code, Crum stresses, is not intended to ban any variety from calling itself “kombucha;” rather it’s a way to distinguish kombucha types for the consumer.
“You’re not obligated to use it,” Crum points out. “Purists will say we’re too lenient — those making it from a base don’t want to define it. Look, kombucha with a weird, globby thing floating in there is not everyone’s idea of delicious. We want there to be products out there that bring people into our category that maybe have a more approachable flavor profile.”
The kombucha industry has been plagued by labelling issues. In 2010, a health inspector found multiple kombucha brands contained more than the 0.5% alcohol limit required to be deemed “non-alcoholic.” In response, Whole Foods pulled kombucha from the shelves, just as the industry was starting to take off. After new ethanol testing requirements were put in place, Whole Foods again sold kombucha. But lawsuits — lately, within the industry — have continued. Court cases over alcohol content, sugar levels and amounts of probiotic bacteria have been filed in the last few years — cases most often pitting one kombucha brand against another.
Crum says that these legal actions have created unnecessary drama and secrecy in the industry.
“Do I like that brands were narking [tattling] on other brands to the TTB (Alcohol and Tobacco Tax and Trade Bureau)? Or that they were instigating class action lawsuits against other brands? No, I don’t think that’s a great way for the industry to build themselves up,” Crum says. “It creates division, it creates chaos, it tears things apart. we need to be unified, on the same page.”
But Crum struck an upbeat note in conclusion.
“The category is just getting started,” she says. “We’re going to get more bubbly and more fun. We’re going to see more creativity, imagination and sophistication.”
Special Note: Learn more about the new Kombucha safety and quality standards on The Fermentation Association’s Kombucha Brewers New Code of Practice Webinar (Wednesday, July 29th at 10am PT/1 pm ET). Hear from Hannah Crum, president of KBI, as she shares her insights into the Code and her experience in the years-long process to publish the standard. Register here for free.
Kombucha Brewers International (KBI) unveiled a kombucha Code of Practice this month, the first set of safety and quality standards for the industry. The goal of these guidelines is to give transparency to the consumer.
“This is about protecting kombucha as a traditional beverage,” says Hannah Crum, president of KBI. “Kombucha has to taste good and deliver on its health benefits. It has a reputation hundreds or thousands of years old. But you say the word ‘kombucha’ today and a lot of people don’t even really know what that means. We’re seeing products that don’t adhere to the spirit of kombucha.”
Crum will be addressing the new Code of Practice during a free webinar with The Fermentation Association on Wednesday, July 29.
The kombucha industry is exploding in growth. Retail data from SPINS shows kombucha sales were up 21% from 2018-2019, yielding $728.8 million in sales. But that growth has come with growing pains. Kombucha can now be found in most retail channels, sold in the refrigerated section or pasteurized in shelf-stable cans; brewed with a Symbiotic Culture of Bacteria and Yeast (SCOBY) or processed from a base; fermented with higher alcohol content or made with sweetners. These different kombucha categories have been a sticking point with kombucha brewers. Over the years, various lawsuits have plagued the industry — most brought on by other kombucha brands.
“We’re an interesting industry. We’ve had some difficult lawsuits,” Crum says. “It’s created a lot of tension, a lot of secrecy, a lot of drama. The craft beer industry doesn’t sue each other. It flies in the face of what we view the industry to be.”
The new Code of Practice makes room for all types of kombucha, but ingredients and brewing processes must be defined on the label. A seal program will certify authentic kombucha — made with tea leaves and potable water, utilizing a SCOBY and sugar or nutritive sweeteners. Additional ingredients — like flavorings, carbon dioxide, vitamins, minerals or probiotic bacteria — are only allowed if they do not exceed 20% of the finished product.
The seal certification will be granted based on standards outlined in the Code of Practice, but a third-party auditing firm will review confidential information from each brand in order to certify the product.
“What we’re struggling with, and it’s what every traditional fermented food is coming up against, kombucha doesn’t lend itself to mass production,” Crum says. “I’m a traditionalist, I’m not going to lie about it. But what I also recognize, we do not want one kind of consumer. We want a diverse range of consumers, with diverse tastes. Someone wants a zero calorie kombucha, while someone else wants a full-flavor kombucha made with SCOBY. They’re entirely different consumers.”
The Code was developed over five years, with input from various KBI members. But KBI did not apply for an official standard of identity with the Food and Drug Administration (FDA) because the trade organization wants the Code of Practice to be an evolving, flexible framework.
“That’s the benefit of being self-regulated. We don’t have the bureaucratic red tape,” Crum says. “We’re not here to walk into your facility to chide and scold you, that’s not our business. What we’re concerned about is commerce, trade, promoting the category, helping consumers get excited about kombucha, and helping them understand the category.”
To the food and drink industry, regulators can sometimes feel like “the bad guys.” But to scale a fermentation brand, sell artisanal products at a farmers market, or serve dishes with fermented ingredients in a restaurant, producers need regulators to be friends or colleagues, says Jeremy Umansky, owner of Larder Deli and author of “Koji Alchemy.”
“As a fermented food producer, it’s a frustrating and almost difficult, like an intimidatingly difficult place to be in. Because there’s really no great resources of where to start, how to get going, how to do what you’re going to do in the safest manner possible while also maintaining a specific quality standard which is so important for us,” says Umansky. “We need to have open, honest conversation (with regulators). If your local regulators aren’t willing to work with you or just want to shut it down because they don’t understand, go up to the next level. Go up to the county, to your state or even reach out to federal. Because people are producing these foods all over the country, so there is regulation for them.”
Umansky spoke with Drew Anderson, CEO of Cleveland Kitchen, during a Fermentation Association webinar titled “Coping with Regulations (and Regulators).”
When Anderson started Cleveland Kitchen with his brother and brother-in-law, “the regulators didn’t really know how to handle fermented food.” They decided to become close with their representative from the Ohio Department of Agriculture and call her first when they moved to bigger facilities or added onto the facility. “She is fantastic. You involve the regulators into your process.”
“You’ve got to understand, when (regulators) go out, they know people don’t like them, they know they’re the enemy when they walk in that kitchen,” Anderson adds. “So if it’s a pleasure to work with you and they can see that they’re actually helping someone, that always helps. Food is still a people business. I think it’s important to be close.”
“It’s funny because the human race has been doing this for thousands of years and we never worried about it before. But now, in this modern age, everything has to be pasteurized.”
Fermenting was common in America before the 1920s, when electricity and refrigeration became a standard in homes. Today, with current food safety laws, “our regulation is more or less a mess,” Umansky notes.
“Anywhere you go in the world, for the most part, fermented foods are the crux at the root of any cuisine,” Umanksy says. “People have relied on these foods and the methods of making them for so, so long. And it’s interesting now that we have so much fear and intimidation and kind of unknowing about (fermented food) production and how they’re made and if they’re safe or not when we’ve kind of proven that society would not exist as it does if it weren’t for these foods prior to refrigeration.”
Both Cleveland Kitchen and Umansky’s Larder Deli are based in Cleveland. However, because Larder and Cleveland Kitchen produce and sell fermented foods differently, they are regulated by different associations. Larder is overseen by the city health department, and Cleveland Kitchen is overseen by the state health department.
“From locale to locale and oversight body to oversight body, things are different,” he says. “We’re both producing fermented foods, but because of how we’re producing them, where we’re producing them, and where we’re selling them, we have different sets of regulations. Same foods, different sets of regulations. And when you talk to different people, you get different answers.”
“Where is the regulation? It’s a mess. It’s almost impossible to keep up on it,” Umansky says.
There is not a standardized food code in all 50 U.S. states. Rules for retail food production varies from cities, counties and states. At the extreme opposite is Japan, where open-air food markets sell fermented foods with little government oversight over food producers.
“We have to be able to address this issue of there not being cohesion and they’re not being easily accessible information for those of us producing these types of food,” Umansky says. “It begs the question – why haven’t we taken a model from the Japanese or the Chinese? Or Scandinavian cuisine is very, very fermentation forward, Eastern European cuisine. Why haven’t we looked at their regulations?”
HACCP is another regulation setback for fermented food and drink producers. Hazard Analysis Critical Control Points (HACCP) are required plans that monitor food safety. But HACCP requires producers to make one thing the same way all the time. There is no room for variances in ingredients. It works for big, commercial producers.
“For smaller restaurants and craft producers, it’s essentially improbable,” Umansky says.
If there’s a menu change at a restaurant or a new ingredient source for a craft producer, technically a new HACCP plan is required.
Umansky recommends, when filing a HACCP, producers should pick one thing on the menu that will never change or that is always in stock. At Larder, it’s the pastrami sandwich with sauerkraut. Then, when it’s time to meet with a regulator, request someone familiar with craft food and come prepared with a HACCP covering the unchanged menu dish or stocked item.
“Your regulators will be so socked that you’ve already taken that step and they haven’t had to have this conversation with you,” he said. “The great thing is, in non-pasteurized fermented foods, I don’t even think there’s any reported cases of botulism associated with fermented foods. It can’t survive. There’s salt and acid.”
Check out the full video link here.
Thousands of new state laws were passed across America this year, and dozens affect fermentation businesses — small and large — as well as home fermenters.
Government agencies are loosening some strict health code and alcohol regulations, laws that made running an artisanal business difficult. There are also new opportunities being created that allow craft breweries to expand their operations, such as entertainment districts where beer can be sold and enjoyed legally.
Read on for the breakdown of 2019 food laws passed in each state
SB16 — Expands state alcohol licenses to include recreational areas. After the Alaska Alcoholic Beverage Control Board began cracking down on alcohol licenses in 2017, several recreational sites were denied licenses to sell alcohol. The bill, known as “Save the Alaska State Fair Act,” now expands license types to the state fair, ski areas, bowling alleys and tourist operations.
HB2178 — Removes red tape for small ice cream stores and other milk product businesses to manufacture and sell dairy products. The bill, called the “Ice Cream Freedom Act,” allows smaller mom and pop businesses to make milk-based products without complying with state regulations designed for large dairy manufacturers.
HB1407 — Prohibits false labeling on agricultural products edible by humans. That includes misleading labels, like labeling agricultural products as a different kind of food or omitting required label information.
HB1556 — Ends the “undisclosed and ongoing investigations” of the Alcoholic Beverage Control Board, the Alcoholic Beverage Control Division, and the Alcoholic Beverage Enforcement Division.
HB1590 — Limits the number off-premise sales of wine and liquor in the state to one permit for every 7,500 residents in the county or subdivision. Small farm wines are the exception to the new law.
HB1852 — Allows a microbrewery to operate in a dry county as a private club, without approval from the local governing body.
HB1853 — Amends the Local Food, Farms, and Jobs Acts to increase the amount of local farm and food products purchased by government agencies (like state parks and schools).
SB348 — Establishes a Hard Cider Manufacturing Permit. Cider brewers can apply for the annual $250 permit, authorizing the sale of hard cider. Producers may not sell more than 15,000 barrels of hard cider a year.
SB492 — Establishes temporary or permanent entertainment areas in wet counties where alcohol can be carried and consumed on the public streets and sidewalks.
AB205 — Revises the definition of beer to mean that beer may be produced using “honey, fruit, fruit juice, fruit concentrate, herbs, spices, and other food materials, and adjuncts in fermentation.”
AB377 — A follow-up to the state’s landmark California Homemade Food Act in 2018, the new bill would clarify the implementation process of last year’s bill. The California Home Food Act made it legal for home cooks to operate home-based food production facilities. The law, though, was only enacted if a county’s board of supervisors voted to opt-in to offer the permits. Only one county in California has opted in (Riverside). County health officials are avoiding singing on the bill because of potential food safety risks.
AB619 — Permits temporary food vendors at events to serve customers in reusable containers rather than disposable servingware. The “Bring Your Own Bill” also clarifies existing health code, allowing customers to bring their own reusable containers to restaurants for take-out.
AB792 — Establishes a minimum level of recycled content (50%) in plastic beverage bottles by 2035. The world’s strongest recycling requirement, the law would help reduce litter and boost demand for manufacturers to use recycled plastic materials.
AB1532 — Adds instructions on the elements of major food allergens and safe handling food practices to all food handler training courses.
HB5004 — Raises minimum wage to $15 by 2023.
HB6249 — Charges 10 cents for single-use plastic bags by 2021.
HB7424 — Raises sales tax from 6.35% to 7.35% for restaurant meals and prepared foods sold elsewhere, like in a grocery store. Also repeals the $250 biennial business entity tax.
HB130 — Bans single-use plastic bags by 2021.
SB105 — Raises minimum wage to $15 by 2024.
HB125 — Facilitates growth and expansion of craft alcoholic beverage companies, raising amount of manufactured beer to 6 million barrels.
SB82 — Prohibits a municipality from regulating vegetable gardens on residential properties.
HB134 — Regulates where beer and wine can be served, now including public plazas.
HB151 — Charges licensing fees for temporary food establishments based on the number of days open. Fees will gradually increase through 2022.
HB3018 — Amends Food Handling Regulation Enforcement Act, requiring a restaurant prominently display signage indicating a guest’s food allergies must be communicated to the restaurant.
HB3440 — Allows customers to provide their own take-home containers when purchasing bulk items from grocery stores and other retailers.
HB2675 — An update to state liquor laws, the bill removes hurdles for craft distilleries to operate. Craft distilleries would be allowed to more widely distribute their products themselves, rather than distributing under the state’s three-tier liquor distribution system that separates producers, distributors and retailers.
SB1240 — Imposes a 7 cent tax on each plastic bag at checkout, with 2 cents staying with the retailers. The remaining 5 cents per bag would fix a statewide budget deficit.
HB1518 — Creates a special alcohol permit for the Bottleworks District. The $300 million, 12-acre urban mixed-use development in the Coca-Cola building will serve as a culinary and entertainment hub in downtown Indianapolis.
SF618 — Increases the limit on alcohol in beer from 5% to 6.25%.
SF323 — Canned cocktail and premixed drinks served in a metal can, up to 14% alcohol by volume, will now be regulated like beer.
HB311 — Requires proper labeling of cell-cultured meat products that are lab produced.
HB468 — Expands defined items permitted for sale by home-based processors.
HR251 — Designates week of September 23-29 as Louisiana Craft Brewer Week.
SB152 — Establishes definition for agriculture products. Prohibits anyone from mislabeling a meat edible to humans.
SR20 — Designates week of September 3-9th as Louisiana Craft Spirits Week.
LD289 — Prohibits stores from selling or distributing any disposable food containers that are made entirely or partially of polystyrene foam (Styrofoam).
LD454 — Provides funding and staffing needed to give local students and nutrition directors the resources needed to purchase and serve locally grown foods.
LD1433 — Bans two toxic, industrial chemicals (phthalates and PFAS) from food packaging. Maine becomes first state in the nation to ban the two chemicals.
LD1532 — Bans all single-use plastic bags in the state. Law will be enacted by April 2020, at which time shoppers can pay 5 cents for a plastic bag. Maine is the fourth state to pass a ban, joining California, New York and Hawaii.
LD1761 — Increases amount of barrels craft beer and hard cider manufacturers can produce in a year. The cap increased from 50,000 gallons to 930,000 gallons (approximately 30,000) barrels. The law also makes it easier for a small brewery to get out of a contract with a large distributor.
SB596 — Defined mead as a beer for tax purposes.
HB1010 — Updates state beer laws by increasing taproom sales, production capabilities, self-distribution limits and hours of operation. Known as the Brewery Modernization Act, the law is aimed to create jobs and increase economic impact.
HB1080 — No restrictive franchise law provisions for brewers that produce 20,000 barrels a year or less.
HB1301 — Sales tax will be collected on Maryland buyers from online sellers, helping small businesses compete with online retailers.
HB4111 — Raises minimum wage by 75 cents a year until it reaches $15 in 2023.
HB4959 — Gives state Liquor Control Commission the power to seize beer, wine, mixed spirit and mixed wine drinks, in order to inspect for compliance with the state’s extraordinarily detailed and complex “liquor control” regulatory and license regime. Bill also repeals a one-year residency requirement imposed on applicants for a liquor wholesaler license, after the U.S. Supreme Court invalidated a similar Tennessee law as a violation of the U.S. Constitution’s commerce clause.
HB4961 — Prohibit licensed liquor manufacturers from requiring licensed wholesalers to give the manufacturer records related to the distribution of different brands, employee compensation or business operations that are not directly related to the distribution of the maker’s brands.
SB0320 — Eliminates mandate that businesses with a liquor license must post a regulatory compliance bond with the state.
HF1733 — Updates the state’s omnibus agriculture policy law, including: create a custom-exempt food handlers license for those handling products not for sale; extend the state’s Organic Advisory Task Force by five years; allow the agriculture department to waive farm milk storage limits is the case of hardship, emergency, or natural disaster, and modify milk/dairy labelling requirements; modify labelling for cheese made with unpasteurized milk; expand the agriculture department’s power to restrict food movement after an emergency declaration; modify eligibility and educational requirements for beginning farmer loans and tax credits.
SB2922 — Prohibits labeling non-meat products as meat, like animal cultures, plants and insects.
HB84 — Changes tax on wine to 27 cents per liter, and a tax on hard cider at 3.7 cents per liter.
SB358 — Raises alcohol license fee for resorts from $20,000 to $100,000 each.
LR13 — Establish and enforce definitions for plant-based milk and dairy. Proper product labeling would be enforced for milk and dairy food products that are “truthful, not misleading, and sufficient to different non-dairy derived beverages and food products.”
SB345 — Authorizing pubs and certain wineries to transfer certain malt beverages and wine in bulk to an estate distillery; authorizing a wholesale dealer of liquor to make such a transfer; authorizing an estate distillery to receive malt beverages and wine in bulk for the purpose of distillation and blending; revising when certain spirits that are received or transferred in bulk are subject to taxation.
HB598 — Establish a commission to study beer, wine, and liquor tourism in New Hampshire. The commission will specifically develop a plan for tourism, including establishing tourist liquor trails with signage along the highway, suggest changes to liquor laws that would enhance tourist experiences at state wineries, breweries and liquor manufacturers and suggest how to allow a “farm to table” dinner featuring New Hampshire produced food items and local alcoholic beverages.
HB642 — Defining ciders with alcohol content greater than 6% (but no more than 12%) as specialty beers.
A15 — Raises the state minimum wage to $15 an hour by 2024, raising in $1 increments every year.
SB1057 — Establishes a loan program for capital expenses for vineyards and wineries in New Jersey.
SB149 — Change name of Alcohol and Gaming commission to Alcoholic Beverage Control Division.
SB413 — Allows breweries to: sell beer at 11 a.m. on Sundays; have private celebration permits for events like weddings and graduation parties; no minimum standards (50 barrels a year or 50 percent of all sales coming from beer brewed on site) for businesses to hold a small brewer license; eliminate excise tax, with breweries paying $.08 per gallon on the first 30,000 barrels produced.
AB6019 — Encourage expansion of fresh fruits and vegetables in community gardens.
AB 8419 — Enacts the farm laborers fair labor practices act, granting collective bargaining rights, workers’ compensation and unemployment benefits to farm laborers
SB578 — New option for any brewer or distiller to file their taxes electronically.
SB1263 — Allows mead (honey-based wine) and braggot brewers to apply for a state farm meadery license. Similar to a farm winery, brewery, distillery and hard cider license, the law recognizes the boom in the craft beverage industry in the state. As a licensed meadery, mead-makers who use 100% New York honey will quality for additional benefits: offer onsite tastings, sell products by glass in their tasting rooms, sell takeout packages, offer other New York farm-produced beer, wine, cider and spirits.
SB3281 — Amends current Alcoholic Beverage Control law, authorizing the sale of cider, mead, braggot and wine at games of chance.
SB4812 — Amend current Alcoholic Beverage Control law, permitting New York State Fair concessionaires to issue a temporary State Liquor license to sell alcoholic beverages on the state fairgrounds.
SB5675 — Amend current Alcoholic Beverage Control law, authorizing issue of liquor license to a business located within 200 feet of a religious institution in multiple counties.
HB363 — Adds a third tier to the craft beer system — mid-level brewers. Now brewers can self-distribute 50,000 barrels of product. Called North Carolina’s Craft Beer Distribution & Modernization Act, the law also expands liquor licensing to college-level NCAA events, where drinking is currently unregulated. Currently, the law only applies to beer and wine.
HB1190 — Amend code to allow a winery to be issued a license without the previous requirements for how much wine is allowed to be produced in a year.
HB2079 — Amends code regarding pasteurized milk, authorizing a state milk sanitation rating and sampling surveillance officer for the rating and certification of milk and dairy products.
SB2343 — Adds microbrew pub as an official brewer licensee under city code. A microbrew pub may manufacture on the licensed premises, store, transport, sell to wholesale malt beverage licensees, and export no more than 10,000 barrels of malt beverages annually; sell malt beverages manufactured on the licensed premises; and sell alcoholic beverages regardless of source to consumers for consumption on the microbrew pub’s licensed premises. A microbrew pub may not engage in any wholesaling activities.
SB544 — Requires limits on licensing fees for businesses who only sell at farmers markets.
SB608 — Requires manufacturers of the top 25 wine and spirit brands to sell their products to any state-licensed wholesaler. The law requires equal sales of the top brands, potentially creating a competitive market. The matter is currently being heard by the Supreme Court, as some businesses believe this eliminates a free market.
HB3239 — Removes the limit of how many on-premises sales licenses that a distillery can have.
SB247 — Adds containers for kombucha and hard seltzer to the types of beverage containers covered by Oregon’s Bottle Bill. The Bottle Bill establishes laws that require stores and distributors to accept certain empty beverage containers and pay a 10-cent refund value for each container.
HB947 — Amends the Liquor Code established in 1951, to provide further definitions for licenses and regulations for liquor, alcohol and malt and brewed beverages.
SB620 — Increases the amount of malt beverages that could be sold on premises at a craft brewery.
SB68 — Prohibits labeling cell-cultured protein as meat.
SB124 — Allows a retailer, carrying their own merchandise purchased from a wholesaler, to transport alcoholic beverages to the retailer’s licensed business.
SB358 — Requiring unpasteurized butter sold to the public must bear a warning on the package label. The warning was approved by the legislature and added to state code.
SB 1082 — Allows premises authorized to serve wine to also serve high alcohol content beer. Requires training for applicants for server permits, consisting of no less than 3.5 hours of alcohol awareness training. Clarifies premises authorized to sell alcoholic beverages to include tables and chairs outside the front wall of the licensee’s building.
HB1545 — Allows craft breweries to sell beer to-go in Texas. Though wineries have been able to sell to customers for years, breweries have been unable because of alcohol beverage code written in 1935.
HB4542 — Adds brewpub to local tax code for businesses involved in manufacturing and distribution of alcoholic beverages.
SB572 — Expands state cottage food law to include opportunities for people to make low-risk products in home kitchens and sell them to consumers. Cottage food products now include fermented products, pickled vegetables, acidified canned goods and frozen fruits and vegetables.
HB33 — Defines the term “produce” as a food that is: fruit, vegetable, mix of intact fruits and vegetables, mushroom, sprout from any seed source, peanut tree nut, or herb and a raw agricultural commodity. Known as the Utah Wholesome Food Act, the law also expands the definition of “food establishment” to include farms.
HB453 — Defines specific business that can have a recreational beer license, specifically banning karaoke bars and ax-throwing businesses from getting a license.
SB132 — Drops 3.2% beer in favor of 4% brew, allowing the stronger beers to be sold in grocery and convenience stores. Stronger beers would still be sold in liquor stores operated by the Utah Department of Alcoholic Beverage Control.
SB113 — Bans single-use plastic bags on July 1, 2020 and requires a fee of at least 10 cents for paper bags. Bans polystyrene foam contains, plastic stirrers and plastic straws.
HB1960 — Allows distillers to product and market low alcohol volume products.
HB2634 — Makes every “dry” county in the state a “wet” county. Allows sale of mixed beverages by licensed restaurants (and the Board of Directors of the Virginia Alcoholic Beverage Control Authority) by any municipality. If the county, town or district holds a referendum and the majority vote prohibits alcohol sales, then alcohol sales are banned in that jurisdiction.
“I’ve Never Seen Such A Time of Challenge” Grocery Industry Ripe for Disruption from Small- to Mid-Sized Brands
The grocery market is being disrupted in a way never seen before – and the opportunity for success is great for small- to medium-sized food brands wanting to get in the door.
“I’ve never seen such a time of challenge up and down the value chain from the seed all the way to the table,” says Walter Robb, former CEO of Whole Foods and the founder of investment firm Stonewall Robb. “We’re going to see a whole explosion in the new types of foods that are coming to market.”
A report by Biodiversity International found that three-quarters of the world’s food supply comes from just 12 crops and five livestock species. That jarring lack of diversity in the average diet is changing, Robb said. We’re in a frontier where food “will come back in a way we’ve never imagined.” More than 10,000 new products are introduced to the grocery market every year, and customers Robb said are “clamoring” for something new.
“We have a disruption up and down the value chain like I have never seen,” Robb said. “Your chance to come and bring a new product to market is there.”
Robb spoke at the NOSH Live event in New York, and shared insights into where the food industry is headed. Here are Robb’s five main points.
- Integrated Shopping
“The integrated retail is the table stakes for the future,” Robb said. “We’re going to see the line between digital and physical is going to collapse and it’s really going to be all about the customer and how you’ll serve the customer.”
The food industry will thrive on an “extended experience,” a term Robb came up with in the ‘90s while at Whole Foods. The extended experience extends outside the four walls of the stores. The problem at Whole Foods, Robb pointed out, was the natural grocer didn’t digitize fast enough. So in 2017, Amazon bought Whole Foods in a $13.7 billion deal.
Though customers are making more digital purchases, they are not abandoning physical stores. In five years, 50-60% of business will be done via retail stores.
“The future is one that integrates humanity and technology,” Robb said. “Why? because human beings are human beings and they want connection and community and that’s simply not available online. The most successful brands today and the ones that do more physical and digital.”
He pointed to Target as an excellent integration example for modern shoppers. Shoppers can still go to the store, where Target is remodeling physical locations to enhance the in-store experience, but they can use the Target app to prepopulate a shopping list, check real-time stock and order at home for drive-up pickup.
“Data shows the customers likes to do both (online and in-store shopping),” Robb said. Brands who want a lifetime legacy need to be in both places. “The customer is clearly saying ‘Let me do what I want, when I want.’ And brands that don’t serve them in that way will not see the type of growth that they could if they would. The customer is in charge of the choices now.”
- Microbiome is the Future
The microbiome will “completely revolutionize the food industry” as the future of grocery retail is driven by customers who want to see authenticity with the brand they’re supporting.
Robb pointed t a New York Times article on personalized diets, “The A.I. Diet.” As more research publishes on the microbiome, personalized diets will play a huge role in shopping habits. Medicine and technology are converging with food.
- Create Purpose-Driven Brand
Brand leaders in the 21st Century must be authentic, vulnerable and humble. They must be purpose-driven to be successful, Robb said.
“The whole reason you’re in business is not to make money, money is a byproduct,” Robb said. “What you’re in business to do is to bring change to the world. That’s what purpose is. Purpose is the why, why do you exist as a company. You damn well better have a good answer to that question as to what you’re doing in business. You better be here for some great reason to make an impact on the world. And if you’re not playing on that level, either w your customer or your team members, you’re going to fall behind because the companies that are going to lead with some sense of purpose are going to be the companies that win in the next number of years.”
He advised brands to get fired-up about principles that support values. The company culture is a result of that principles and values, and culture is dependent on how team members feel working for the brand and customers feel buying from the brand.
“The winning formula today is road runners and roots,” Robb said. Roots ground a brand in purpose, but brands can’t cement themselves in the ground. They must be a road runner and change on a dime as the marketplace shifts.
- Solve Customer Confusion
The International Food Council found 80% of customers are confused on their food choices. There are dozens of food tribes dominating grocery shelves, like gluten-free, keto, paleo and Whole 30. With an overload of information, customers don’t know exactly what to buy for their desired health benefits.
Robb said one of the business opportunities for brands today is to figure out how to communicate more clearly with the consumer. Consumers want to make informed choices, but “that last mile of data has not been solved for.”
He pointed to solutions in connected homes devices like Amazon that will now populate a shopping list for the consumer based on past purchases. Consumers don’t even need to pick out what they want, their only roll will be to confirm the purchase.
- Natural Reigns
Organic has grown to a $65 billion industry, with a 7-8% growth rate; conventional food, meanwhile, is only growing at 1-2%. Major mainstream retailers are rushing to get into the natural food business today.
Robb said the best way for brands to get on the shelves at Whole Foods is to push the envelope. Whole Foods continues to lead the natural market, and the grocer wants to see edgy, new products with a new take.
Customers expect food brands today to be transparent, accountable and responsible. Robb said there are 2,000 natural flavors approved for use in food by the Food and Drug Administration. But Robb encouraged brands to solve that problem – use less processed ingredients and more natural ingredients, “let’s continue to lead by showing there’s a new edge in the food industry.”
Consumers are in favor of allowing plant-based food to use traditional dairy terms on their labels — but dairy farmers are strongly opposed to it. Last year, the U.S. FDA issued a public comment period to examine if plant-based foods and beverages should use the traditional dairy names: milk, cheese and yogurt. The results are out. Of those comments, 76 percent were in favor of using dairy terms on plant-based products, 13.5 percent were against and the remaining 10.5 percent were inconclusive. Of the commenters that identified themselves as dairy farmers, nearly all were opposed. Dairy farmers are concerned consumers will believe plant-based foods are nutritionally similar to cow’s milk (94 percent) and that consumers are being misled with a dairy term on a plant-based item (91 percent).
Read more (Linkage Research)
The fermentation industry is on the cusp of a renaissance. Engaged consumers are seeking functional food and drink with health benefits. And fermented products provide the nutritional value and unique flavors today’s consumers crave.
Staff at The Fermentation Association attended Natural Products Expo West in Anaheim, Calif. this month. Expo West is the world’s largest organic and natural healthy products event, and we spent four days with 88,000 other attendees listening to industry experts in education sessions and meeting fermented food and beverage brands on the show floor.
Here are six takeaways from Expo West for the fermentation industry:
- Natural Products are King. Natural food and beverages grew 6.6 percent in 2018, for a total of $152 billion in sales, according to info from the Nutrition Business Journal. The category is growing so much that organic supply is lagging behind consumer demand. Meanwhile, for the first time in history, the conventional food and beverage category began to shrink last year.
- Major Focus on Gut and Microbiome Health. Once terms only used by scientists, prebiotics and probiotics are at the forefront of consumer’s grocery list. Digestive health is critical for modern consumers, as more nutritionists focus on the gastrointestinal tract’s critical immune system support. Consumers want food and drinks that nourish their microbiome. Sales numbers show people are moving away from purchasing pills and supplements to aid their gut; they’re instead looking for prebiotics and probiotics in actual food.
- Ancient Foods are Experiencing a Revival. The future of food is in practices of the past. From turmeric, ashwagandha, ghee and fermentation, the foods of our ancestors are back on our plates. These old-world cooking styles and ingredients are standing the test of time and coming back in modern cuisine.
- Industry is Selling to Educated Consumers. Today’s consumers know more about the food they eat than ever before. Consumers are studying ingredient lists, seeking product sources and researching brands. Clean food and clean labels are not a trend; they’re a movement. People are becoming more aware of the dangers of eating processed food. They want nutritious ingredients from ethical brands. The functional health benefits of fermented products are piquing consumer interest.
- Snacking Trumps Mealtime. Snacking today is a $1.2 trillion-dollar industry. The modern consumer is busy, and convenience food readily accessible in a grab-and-go format is a grocery store staple. Snacking in 2019 is not filling up on a soda and a bag of fried chips. Consumers want healthy, fresh snacks, especially refrigerated snacks in the produce aisle. This is great news for fermented brands. Grabbing a bottle of kombucha or kefir and a bag of snacking pickles or miso soup fits into the convenient dining lifestyle.
- Brands Need More Plant-Based Products. A major shift in food philosophy, more consumers are buying plant-based products – whether or not they’re vegetarian or vegan. Plant-based options are becoming tastier and readily available. Brands are experimenting with fermenting vegetables for plant-based cheeses, spreads, sauces and drinks.
It’s an exciting time for fermented food and beverage producers. The aromatic, tangy flavors and healthy, live bacteria in fermented products are qualities propelling fermentation to become one of the most popular food categories.
The new “it” clean food label: Glyphosate Residue-Free Certification. The main ingredient in weed killer, glyphosate is the most heavily used pesticide in the world. A probable human carcinogen, Forbes estimates it’s about to become a household name consumers will cut out of their food. Though glyphosate is banned in organic crops, it still drifts into the organic food supply, especially in anything oat-based. The new label is awarded by 3rd-party The Detox Project, who regularly tests brands for glyphosates. Costing $1,472 per year, the certification was first granted to Foodstirs, the organic baking company launched by actress Sarah Michelle Gellar and Galit Laibow.
Read more (Forbes) (Photo by: Foodstirs)