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Tag: packaged foods

  • Ultraprocessed foods now account for two-thirds of calories in the diets of children and teens | CNN

    Ultraprocessed foods now account for two-thirds of calories in the diets of children and teens | CNN

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    CNN
     — 

    Children and teens in the United States now get more than two-thirds of their calories from ultraprocessed foods, an analysis of almost two decades worth of data has found.

    Ultraprocessed foods – such as frozen pizza, microwave meals, packaged snacks and desserts – accounted for 67% of calories consumed in 2018, up from 61% in 1999, according to research published in the medical journal JAMA Tuesday. The study analyzed the diet of 33,795 children and adolescents nationwide.

    While industrial processing can keep food fresher longer and allow some foods to be fortified with vitamins, it modifies food to change its consistency, taste and color to make it more palatable, cheap and convenient – using processes that aren’t used in home-cooked meals. They are also aggressively marketed by the food industry.

    “Some whole grain breads and dairy foods are ultra-processed, and they’re healthier than other ultra-processed foods,” said senior author Fang Fang Zhang, a nutrition and cancer epidemiologist at the Friedman School of Nutrition Science and Policy at Tufts University in Boston.

    “But many ultra-processed foods are less healthy, with more sugar and salt, and less fiber, than unprocessed and minimally processed foods, and the increase in their consumption by children and teenagers is concerning.”

    The information on children’s diets used in the study was collected annually by trained interviewers who asked the children or an adult acting on their behalf to detail what they had eaten in the preceding 24 hours. The information was gathered as part of the National Health and Nutrition Examination Survey.

    Between 1999 and 2018, the proportion of healthier unprocessed or minimally processed foods decreased from 28.8% to 23.5% of consumed calories, the study found.

    The remaining percentage of calories came from moderately processed foods such as cheese and canned fruits and vegetables, and flavor enhancers such as sugar, honey, maple syrup and butter, the study said.

    The biggest increase in calories came from ready-to-eat or ready-to-heat meals such as takeout and frozen pizza and burgers: from 2.2% to 11.2% of calories, according to the study. The second largest increase came from packaged sweet snacks and desserts, the consumption of which grew from 10.6% to 12.9%.

    The link between child health and ultraprocessed food is complex but one recent study in the United Kingdom found that children who eat more ultraprocessed food are more likely to be overweight or obese as adults.

    Experts said the study’s implications for future health were significant given that childhood is a critical period for biological development and forming dietary habits.

    “The current food system is structured to promote overconsumption of ultra-processed foods through a variety of strategies, including price and promotions, aggressive marketing, including to youths and specifically Black and Latino youths, and high availability of these products in schools,” wrote Katie Meyer and Lindsey Smith Taillie, both assistant professors in the department of nutrition at the University of North Carolina’ Gillings School of Global Public Health, in a commentary on the study. They were not involved in the research.

    There was good news that suggested efforts to tackle consumption of sugary drinks such as soda taxes had been effective: Calories from sugar-sweetened beverages dropped from 10.8% to 5.3% of overall calories.

    “We need to mobilize the same energy and level of commitment when it comes to other unhealthy ultra-processed foods such as cakes, cookies, doughnuts and brownies,” said Zhang.

    Black, non-Hispanic youths experienced a bigger increase in the proportion of ultra-processed foods in their diet compared to their White counterparts. The study said it did not assess trends in other racial or ethnic groups because of a lack of nationally representative data. However, it noted that Mexican American youths consume ultraprocessed foods at a consistently lower rate, which authors said could reflect more home cooking among Hispanic families.

    The education level of parents or family income didn’t have any impact on the consumption of ultraprocessed foods, suggesting that they are commonplace in most children’s diets, the study added.

    The authors said their study had some limitations: Asking people to recall what they ate isn’t always an accurate measure of dietary intake. Plus, there is a tendency to under report socially undesirable habits such as consumption of unhealthy food.

    In addition, it can be a challenge to accurately classify ultraprocessed food because it requires a full list of ingredients – information unlikely to be given by children answering a questionnaire.

    “Better methods for dietary assessment and classification of foods are needed to understand trends and mechanisms of action of ultra-processed food intake,” Mayer and Taillie wrote.

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  • Campbell Soup Company buys Sovos Brands, maker of Rao’s for $2.7 billion | CNN Business

    Campbell Soup Company buys Sovos Brands, maker of Rao’s for $2.7 billion | CNN Business


    New York
    CNN
     — 

    Iconic canned soup company Campbell is expanding its reach in the Italian food market.

    Campbell (CPB) announced Monday that it would acquire Sovos Brands, maker of the popular Italian food brands like Rao’s sauces and Michael Angelo’s frozen entrees, as well as noosa yogurt, in a deal worth $2.7 billion.

    “We’re thrilled to add the most compelling growth story in the food industry and welcome the talented employees who have built a nearly $1 billion portfolio,” Campbell’s president and CEO Mark Clouse said in a statement. “The Sovos Brands portfolio strengthens and diversifies our Meals & Beverages division and paired with our faster-growing and differentiated Snacks division, makes Campbell one of the most dependable, growth-oriented names in food.”

    Campbell’s Meals & Beverages division includes its trademark soups, SpaghettiO’s, juice brand V8 and Prego sauces. But Campbell said Rao’s sauces attract a different consumer set than Prego’s.

    “Rao’s is the premium, market-leading sauce and it strengthens and diversifies our Meals & Beverages portfolio, complementing the core, mainstream portfolio,” the company told CNN. “It also provides an opportunity for expansion to adjacent categories like frozen meals, dry pasta, premium ready to serve soups.”

    By acquiring premium frozen meal brand Michael Angelo’s, Campbell will also beef up the frozen food portfolio it already owns under its Pepperidge Farm’s brand.

    While popular yogurt brand noosa is “not core to our strategy,” the company told CNN, “noosa is terrific, well-run business, with great products and strong profitability… The strength of the business will allow us to be patient as we evaluate strategic alternatives.

    Sovos Brands founder and head Todd Lachman called the acquisition a “momentous occasion.”

    “We have built a one-of-a-kind, high growth food company focused on taste-led products across a portfolio of premium brands, anchored by the Rao’s brand,” he said in a statement included in Campbell’s news release. “This transaction is expected to create substantial value for our shareholders, resulting in a 92% increase from our 2021 IPO price.”

    Shares of Campbell on Monday closed at $44.34, down $0.81, or 1.79%.

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  • There’s a new Reese’s in town, hold the dairy | CNN Business

    There’s a new Reese’s in town, hold the dairy | CNN Business


    New York
    CNN
     — 

    Vegan Reese’s are happening.

    Hershey, which makes Reese’s along with Hershey bars, Kisses and other chocolates and candies, announced two new dairy-free products on Tuesday: Reese’s plant-based peanut butter cups, and a vegan chocolate Hershey bar with almonds and sea salt, each made with oats instead of dairy and designed to taste like milk chocolate. The new Reese’s variety will be available nationally this month, and the new Hershey bar is arriving in April.

    The company is the latest to introduce a vegan chocolate in hopes that it will attract more customers. But Hershey is a little late to the game.

    Nestlé

    (NSRGY)
    introduced KitKat V, a vegan version of the chocolate bar, in 2021. Mondelez

    (MDLZ)
    acquired Hu, a company which makes vegan chocolate, that year, as well. Hershey also initiated a test of a version of its product in 2021.

    In prepared remarks discussing the company’s fourth-quarter results, CEO Michele Buck said that “better for you,” which includes plant-based items, presented an opportunity for the company and will “receive greater levels of support this year.”

    “We are excited to introduce these delicious, plant-based options,” Teal Liu, brand manager of Better For You at Hershey

    (HSY)
    , said in a statement announcing the launch Tuesday, adding that the new products offer more options for “chocolate lovers looking for plant-based alternatives.”

    By focusing on vegan alternatives to milk chocolate, specifically, Hershey may have a better chance of setting its products apart from others in the market.

    “As the vegan chocolate space gets more crowded, claims beyond plant-based may be necessary,” Kelsey Olsen, consumer insights analyst for food & drink at market research firm MIntel, told CNN in an email. “While many plant-based items previously launched have been dark chocolate varieties, brands should explore the areas of plant-based milk chocolate and white chocolate.”

    Touting oat as an ingredient could also help.

    Confectioners “can take advantage of oat milk’s unique properties to appeal to a larger consumer base, whether vegan or not,” Olsen said.

    Chocolate as a category has been resilient in the past few years, with people reaching for treats during the stress of the early pandemic and seeing it as a relatively affordable splurge even as prices rise.

    But it’s not clear that an oat-based chocolate will do the trick. “The majority of consumers are not focused on added [better for you] components to chocolate,” Olsen noted in a Mintel report last year.

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  • What’s gone wrong at Beyond Meat | CNN Business

    What’s gone wrong at Beyond Meat | CNN Business


    New York
    CNN Business
     — 

    A slew of problems have stalled the growth of Beyond Meat, once a darling of Wall Street whose top product became synonymous with plant-based burgers.

    Sales have been declining, sliding 22.5% in the third quarter compared to the previous year, and the company has laid off over 20% of its global staff since August. After an extremely successful market debut in 2019, Beyond Meat

    (BYND)
    has lost favor with investors. The stock dropped about 77% so far this year.

    Some of the problems can be attributed to broader industry challenges. In the grocery store, interest in plant-based meats has waned as consumers, faced with inflation, focus on shopping for affordable basics.

    At the same time, restaurant traffic is dipping. Cash-strapped customers are pulling back on dining out, making Beyond’s foodservice business more vulnerable. And Beyond is far from the only company to lay off staff as a possible recession looms.

    But Beyond is facing some unique challenges.

    The company recently parted ways with three members of its C-suite, one of whom allegedly bit someone’s nose. A recent LA Times report called into question the hygiene of a Beyond Meat facility in Pennsylvania, though the company stands by the cleanliness of the plant, saying that its “food safety protocols go above industry and regulatory standards.”

    Also, a promising partnership with McDonald’s

    (MCD)
    has stalled in the United States. And fierce competition is squeezing sales, including in frozen, plant-based chicken, a category that is growing while refrigerated plant-based meat sales falter.

    The company’s plan is to focus on cash flow and profitability rather than growth, and become more strategic in its restaurant and marketing initiatives, among other things.

    “Despite the current headwinds facing our business and category, we remain confident in our ability to deliver on the long-term growth and impact expected from our global brand,” a Beyond Meat spokesperson told CNN Business in response to a request for comment.

    “They’ve got a big task ahead of them,” said Peter Saleh, restaurant analyst at financial services firm BTIG. Next year will be about “trying to get their financials in order to a place where they can sustain themselves,” he added. “It’s a tall order.”

    Last year, Beyond Meat announced a strategic partnership with McDonald’s, including working with the burger chain on the McPlant, a plant-based burger.

    Since then, the McPlant has been added to the McDonald’s menu permanently in some European markets.

    In the US, McDonald’s

    (MCD)
    tested out the burger in some locations. But it hasn’t added the item to the menu, and it’s not clear if or when that will happen.

    “I don’t think it’s totally off the table, but I’m not sure that it’s going to be [Beyond’s] saving grace at this point,” said Saleh.

    Beyond has also lost its spot on the Dunkin’ menu. The coffee chain enthusiastically rolled out a breakfast sandwich with Beyond sausage nationally in 2019, but stopped working with Beyond last year.

    McDonald's tested the McPlant, but has not added it permanently to US menus.

    Beyond still has plenty of partnerships with restaurants, but many of them are limited-time tests.

    “In the last 12 months, we have had 25 trials for permanent menu launches with nine distinct products,” said Beyond CEO Ethan Brown during a November analyst call discussing the company’s third-quarter results.

    Brown positioned the launches as long-term investments, saying they won’t generate big sales in the short term but should pay off eventually. But getting a permanent menu spot might be challenging, noted Kathryn Fenner, principal at foodservice consulting firm Technomic.

    “Even if they sell, say 30 to 40 of these plant-based burgers a day … that still pales in comparison to their traditional proteins,” she said, speaking about plant-based burgers in general. And these days, making a limited-time offer permanent is a tough sell because operators have been slimming down their menus, she noted.

    Meanwhile, Burger King continues to sell the Impossible Whopper nationally. “We haven’t been experiencing what Beyond Meat and some of the other brands in the space have reported,” said Impossible foods spokesperson Keely Sulprizio. Impossible is private and is not required to share its sales data publicly.

    In the grocery store, Beyond is facing a swell of competition.

    Beyond has embraced competition in the past. But now, rivals are interfering with its bottom line.

    “We believe that healthy competition within plant-based meat is a good thing as it brings investment in marketing to the category,” said Brown during the November analyst call.

    “However, in the current environment, we are not seeing this benefit,” he said. “Instead, more companies are pursuing the same or fewer consumers.” Brown said Beyond is the leader in refrigerated plant-based meat, and that he expects some brands to pull back or consolidate in the future.

    It’s true that the plant-based meat pie is smaller these days. Retail sales of meat alternatives fell about 12% in the year through November 6, according to data from IRI. Ground plant-based meat fell about 19%, and patties were down 30% in that period.

    But frozen chicken alternatives are growing. Strips and cutlets sales increased about 16% and nuggets jumped nearly 28%.

    “Frozen plant-based chicken is the largest single subcategory in all of plant-based meats and continues to grow at a double-digit pace,” said Brown during the analyst call. “So we are pleased to be expanding our presence of additional chicken items.”

    Beyond Meat introduced plant-based chicken strips in retail in 2014, but pulled the product in 2019. It launched a retooled version, Beyond Chicken Tenders, in stores in 2021, and has built its plant-based chicken portfolio since then.

    But in the few years Beyond’s product was off the market, new entrants rushed into the space.

    Nuggs, a plant-based chicken nugget made by startup Simulate, has made a splash online thanks to its bold packaging over the last few years and has been expanding in retail.

    Daring, another plant-based chicken company, launched its product in the US in 2020. Daring’s chicken alternative became available at Whole Foods last year. Impossible and other legacy brands have offerings, as well.

    “Plant-based chicken is a good growth category,” said Saleh. “I would have liked to have seen [Beyond] double down.”

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  • Founder of beloved Malaysian noodle snack Mamee dies at 92 | CNN Business

    Founder of beloved Malaysian noodle snack Mamee dies at 92 | CNN Business


    Hong Kong
    CNN Business
     — 

    The founder of Mamee Monster, the iconic Southeast Asian noodle snack brand, has died, the company confirmed Tuesday.

    Mamee-Double Decker Group, a Malaysian food manufacturer, told CNN Business that Pang Chin Hin died on Saturday at the age of 92. Local media had given his age as 96, reflecting a traditional Chinese way of calculating age.

    “Without [him] many of our childhoods would be very different,” Group CEO Pierre Pang Hee Ta, Pang’s grandson, told CNN Business in a statement. “He is truly a legend, we have our utmost respect for him, and we are grateful for what he has done and will now continue his legacy.”

    Pang leaves behind a beloved brand that has become a pantry staple for consumers across the region. Mamee is best known for its colorful packets of crunchy, dry instant noodles, which are typically sold with savory powdered flavoring. Some have likened the image of a furry blue cartoon character on its packaging to Sesame Street’s Cookie Monster.

    Pang, a former used car dealer, founded the company in 1971, when he and a business partner set up an instant noodle factory in the Malaysian coastal state of Malacca.

    The company started off making traditional instant noodles, with packs of vermicelli sold under a brand called Lucky.

    About three years later, Pang’s son noticed laborers who worked as rubber tappers “eating uncooked instant noodles straight from the pack,” according to a company biography posted on its website. The family then decided to branch out into a new category: selling noodles as dried snacks.

    The Mamee line now has various powdered flavors, ranging from barbecue to chicken to black pepper. The company says the name of the snacks, which are popular with children, is a play on the word “Mummy.” The group sells its products in 86 countries.

    Today, the company’s product range has expanded to include a variety of snacks and beverages, including Double Decker crackers, Mister Potato chips and Boom+ vitamin drinks.

    In an interview this year, Pang’s grandson said that while Mamee was its most recognizable brand, Mister Potato crisps were its biggest moneymaker.

    Pierre Pang told Malaysian publication The Edge in March that the launch of those potato chips was “the single most important decision in our history, as the brand contributes more than 70% of our revenue and is exported to 18 markets.”

    He added that his father and grandfather, the now late Pang, were receptive to new ideas and supportive of his vision to grow the company in new directions.

    “I’m so fortunate that they are so open,” he said. “We are the product of two great, forward-thinking generations.”

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