“I’ve always been interested in the CPG industry—ever since I was a young kid,” she admits. “When I was nine years old, I sent ad campaign ideas and product recommendations to some of my favourite toys and treat companies, and luckily, they engaged and responded to me. I loved the idea of improving products to make them more enjoyable for me and my friends. At the time, I wasn’t thinking too much about it, but it was ultimately the foundation of my passion for consumers. So, it’s only natural that this enthusiasm led me to the CPG industry.”

Despite her enthusiasm for the industry, Thompson’s journey from nine-year-old corporate advisor to GM of Mars Wrigley Canada was anything but a straight line.

“I started my career in a completely different industry, but I could never replicate the excitement and enthusiasm that I found as a nine-year-old passionate about consumer products,” she says.

While she enjoys the diversity the CPG industry offers, she definitely has a favourite. “I’ve been with Mars for 13 years and have always felt passionate about my work, whether it’s ice cream, pet care or confectionery,” she explains. “But I must say, the great thing about coming back to confection is I get to be both a marketer and a consumer of what we produce. And personally, I love sharing the products with my kids and seeing their excitement for the brands.”

Understanding the consumer

In addition to a degree in general management and marketing, Thompson also has a degree in psychology, which she says has helped her better understand consumers.

“I’ve found that my psychology degree has helped immensely throughout my career,” she says. “In an industry where consumers have such personal memories and feelings tied to the products, it’s especially important to understand what drives them, what brings them joy, but also what turns them off.”

This understanding of human psychology, she adds, has also helped her better manage employees.

“True leadership is all about understanding people, figuring out what you can do to support them, helping them achieve their goals and ambitions, and taking care of the whole person,” she says. “And just as in marketing, understanding motivational triggers is very helpful in not only getting the best out of your team, but also in fostering and retaining your talent.”

Challenges and opportunities

Thompson is well aware of the pain today’s consumers experience when they see the price of groceries edging upwards, week after week.

“In our industry and beyond, affordability is top of mind for everyone,” she says. “We make every effort to minimize costs to provide a full range of delicious products while making sure we preserve both the value and quality of our iconic brands.”

While affordability will continue to be an issue with consumers, Thompson is committed to navigating the choppy waters ahead.

“My goal is for Mars to lead the pack and show the industry what’s possible when you lead with purpose, never compromise on quality and centre your decisions around consumer insights,” she concludes.

This article was originally published in the April/May 2024 issue of Food in Canada.

Nestle Sustainably Sourced chocolate is crafted using Rainforest Alliance-certified cocoa.

Travellers will be able to personalize their 170 g and 280 g bars by adding their own messages to the product sleeves.

“Through creative branding, we can provide transparency on the origin of the cocoa used in our chocolate,” said Aura Sanchez, head of marketing at Nestle Travel Retail. “It enables us to raise awareness about our longstanding commitments to supporting cocoa-farming families and the long-term sustainability of cocoa production.”

Nestle Sustainably Sourced Cocoa will also be available in a recyclable paper pouch.

Many chocolate companies, like Daniel Chocolates in Vancouver, only use all-natural ingredients. “We use real cream, real fruits and actual herbs and spices,” says owner Monique Poncelet. “We use only plants and fruits, such as cinnamon, ginger and lime, to provide natural flavours.”

Constance Menzies, founder of Chocolatier Constance Popp in Winnipeg, also uses natural ingredients such as real fruit puree in her products.

Many Canadian chocolate companies have no added ingredients in their bars—cocoa beans are ground into delicious pure chocolate. These bars are “hugely popular” at Sirene Chocolate in Victoria, B.C. “For those who haven’t tried it, it’s surprisingly good,” says founder Taylor Kennedy. He describes the flavour experience as savoury, “more akin to a strong black espresso or a neat whisky.”

Galerie au Chocolat offers a line of no added sugar chocolate bars, barks and almond butter cups sweetened with stevia and erythritol. They added more cocoa butter and vanilla to mask the stevia aftertaste. Photo © Galerie au Chocolat

Natural sweeteners

Sugar in moderation is not unhealthy and the amount of sugar in true chocolate is low. However, some people prefer no added sugar in their foods for various health reasons, including diabetics and dietary choices. For this reason, interest in chocolate with stevia and other plant-based natural sweeteners surfaced in recent years, although it seems to have waned somewhat at this point. As Julianna Tan notes (who owns Those Girls at the Market in Saskatoon, Sask., along with her sister Ying), “people’s perception of alternative sweeteners, including xylitol and stevia, vary greatly.”

Several Canadian chocolate companies have done some product development with these ingredients. Several years ago, Dominique and Cindy Duby at Wild Sweets in Richmond, B.C., ordered samples of maltitol and more from suppliers, but decided against further product development for a couple of reasons.

“Maybe it had something to do with the type of xylitol that we got (although we had a similar effect when we received a sugar-free chocolate bar made with xylitol), but it felt to us that it was similar to the cooling effect that you get with mouthwash,” they report.

Maltitol was a potential option, but the Dubys note that its added cost on top of the price of their premium bean-to-bar chocolate would have been too  high for their customer base.

However companies like Galerie au Chocolat have found success with alternative sweeteners. In 2022, the company launched a line of no added sugar chocolate bars, barks and almond butter cups sweetened with stevia and erythritol.

“Some people can taste stevia,” notes Sellier, “so we accounted for this and added even more cocoa butter and an extra splash of vanilla. The resulting taste is very good, very smooth and delicious.”

Added healthy ingredients

While cocoa beans are high in antioxidants, many consumers are interested in chocolate that has extra antioxidants and healthy ingredients, such as berries, ginger, cinnamon, and turmeric. Daniel Chocolates is currently developing chocolates containing additional Omega-3 fatty acids. These vegan products will also have high levels of protein and fibre.

The Better Chocolate offers FourX Better Chocolates, a line of supplements (vitamins and minerals) in a dark chocolate ‘bite,’ as well as a line of functional chocolate. The company’s products contain MCT oil (which may promote nutrient absorption) and piperine (found in black pepper and having anti-cancer, antioxidant, antidiabetic, anti-obesity, cardioprotective, antimicrobial, anti-ageing, and immune-boosting effects).

The Tan sisters create a monthly ‘feature bar,’ which often contain ingredients like goji berry and beet that have extra antioxidants and/or other health-promoting properties. Julianna notes that while “the feature flavours do not always appeal to the mass public, their limited availability, novelty and ability to stimulate both awareness and conversation about certain ingredients make them hot sellers.”

Tan also believes that even if it’s not feasible to add a high dose of a particular health-promoting compound in each product, “having the opportunity to engage in discussion and spread awareness about certain ingredients is a worthy endeavour. For example, in our matcha green tea chocolate bar, we include one full serving of matcha green tea in each eight-piece chocolate bar, but when we market it, we focus on the difference between L-theanine and caffeine when it comes to focus, concentration and productivity.” L-theanine, an amino acid with several health benefits, is found in high amounts in matcha.

In the end, Tan notes that for some customers, eating their bars with matcha or another healthy ingredient might be their first experience with these ingredients, and this introduction may prompt its inclusion as a regular part of the diet. However, transparency about the amount of an ingredient in a chocolate product is very important to Tan, so as not to mislead consumers.

The Dubys also have an interest in accuracy. They explain that just because a certain ingredient, such as matcha, has scientifically identified health benefits, this doesn’t necessarily mean those benefits will be present in a finished product like chocolate.

Process matters

As is the case with many food products, some antioxidants are lost during the manufacturing of chocolate. However, as noted by scientists at the University of British Columbia several years ago, fewer can be lost if chocolate processing is done in specific ways.

The Dubys report that they worked with these scientists to compare their chocolate to other products on the market. “We tested against large global industrial chocolate companies and found that our product, through tested and adjusted procedures, was higher in antioxidants than those brands,” they explain. “Yet, everyone makes the claim that dark chocolate is ‘healthy’ without any evidence that their chocolate actually contains any significant amount of antioxidants.”

The Dubys therefore focus on specific ways of roasting, conching, and completing the other steps in making chocolate, “as well as evaluating and improving the effect of mechanical actions during the different steps” to reduce loss or boost levels of antioxidants.

It seems in the end that those wanting healthier chocolate, however they define it, need to do their due diligence, as is the case with all other food products when it comes to health.

“I come from a family of entrepreneurs. My mom’s an entrepreneur, my grandmother was an entrepreneur, my great-grandmother was an entrepreneur, so I feel like entrepreneurship runs in my blood. As a child, I was always told to create my own destiny. So that was kind of instilled in me growing up,” recalled Bednarski-Malik.

Her passion for food and nutrition eventually led her to become a dietitian as well as attend culinary school. Her professional quest then became one of finding ways to merge her culinary skills and nutrition. Sadly, a health issue pumped the brakes on her plans and made her focus on healing herself.

“It took me two years to recover from an eating disorder. During that process, I reconnected with food and found my love for food again,” said Bednarski-Malik.

In 2014, she decided to create foods that made her feel good. She began experimenting with kale.

“I love vegetables. I would eat these kale chips, and I felt okay. They’re healthy, low in sugar, nutrient dense, and I could feel good about eating them,” she said.

Julie Bednarski-Malik, MHSc, PHEc, RD.

Starbucks as partner

Bednarski-Malik wasn’t the only one who liked the kale chips; her friends and family members found it delicious too. Thus began Healthy Crunch in 2014. It was also fortuitous that her first customer was Starbucks.

Bednarski-Malik was making her kale chips at a collective kitchen where she was renting a table by the hour. During a networking event at the kitchen, Bednarski-Malik offered her chips to a woman who wanted to share them with her friend. She didn’t know then, but the friend was Rossann Williams, head of Starbucks North America at that time. As the story goes, Williams loved the kale chips and contracted Healthy Crunch to make them for Starbucks.

“We started off with one really great partner who believed in us. And Starbucks was such a great customer to launch with because they have a [huge] brand presence. When you’re in Starbucks, people believe you’re legitimate. One year after launching in Starbucks, we had tremendous growth,” she recalled.

The company ended up with listings at Costco, Shoppers Drug Mart, Loblaws, and Ikea.

“Our kale chips were everywhere; all over Canada, in airports and movie theatres. Cineplex was selling our kale chips. kale was on trend at the time,” she said. “It was the colour of the year. It was just about being at the right place at the right time. I think all the stars were aligned for it to happen.”

The success was immensely appreciated because kale chips is a challenging product to manufacture. It’s a three-day process. Bednarski-Malik also faced supply issues.

“There are not that many kale chips out there right now because it’s very fragile. It takes a long time to make. You’re using fresh ingredients. Sometimes kale is fluffy and sometimes it’s not. There are so many variables to it,” she explained.

Despite the challenges, Healthy Crunch continued making its flagship product. However, during the COVID-19 pandemic, they couldn’t source the required amount of kale, and the company had to discontinue its most popular product.

Beyond chips

This decision kick-started the next phase of Healthy Crunch, which celebrates its 10^th anniversary this year (If you’re missing their kale chips, Healthy Crunch has relaunched it as part of their anniversary celebrations). It currently has more than 120 vegan, school-approved products, such as seed butters and jams, granola bars, trail mixes, crispy squares, dark chocolates and instant lattes. Their most popular products are granola bars and dark chocolates.

“We have to be super unique, but we also don’t want to be too unique where we have to educate the customer,” she explained. “We launched into categories where consumers know the product.”

For instance, jams, but with a Healthy Crunch twist, meaning reduced sugar, increased fibre, a clean ingredient deck without additives, colourings and preservatives. Another example is their nutrient-dense crispy squares instead of the full-on sugar rush that comes with typical rice crispies.

Bednarski-Malik chose this middle ground because consumer awareness takes a long time and resources. For a lean company like Healthy Crunch with only 12 employees, it’s not profitable to be launching uber niche products and spending thousands of dollars in raising awareness about new product categories.

Healthy Crunch manufactures its products out of a SQF level two certified facility in Mississauga, Ont. The products are free of 11 major food allergens, which comes out of Bednarski-Malik’s desire to make healthy eating inclusive. They have more than 20,000 points of distribution.

Healthy Crunch products are also sold in the U.S., the U.K. and the Middle East. After a decade of sustained growth, Bednarski-Malik is now ready to expand into other markets.

“There are a lot of major U.S. retailers that we want to launch into like Target and some other larger product categories too. I’m also thinking of launching into Europe, as there’s so much opportunity over there,” she said.

Bednarski-Malik strongly feels Healthy Crunch has the potential to take advantage of the whitespace in the global better-for-you category.

Unifor issued a statement saying its 461 members who work as machine operators, bar packers, shippers and receivers, general labourers and in the skilled trades at the Toronto Nestle plant chose to go on strike on Sunday evening.

The plant produces Kit Kat, Aero and Coffee Crisp chocolate bars, as well as Smarties, and Nestle says it doesn’t expect the strike will have an immediate effect on the products’ availability in stores.

Unifor says its members wanted improvements to the pension plan, and rejected a two-year freeze on a cost of living adjustment.

It says it doesn’t currently have any bargaining dates scheduled.

Nestle Canada says it’s disappointed workers rejected the tentative deal, and it plans to work with the union to get workers back on the job.

The brand, called Bettergoods, is just hitting Walmart stores and the company’s online shopping site. Walmart said Tuesday it expects to have 300 products in the line by the fall, including frozen foods, dairy items, snacks, beverages, pastas, soups, coffee and chocolate. The prices range from under $2 to under $15, with most products costing under $5.

The Bettergoods line is divided into three categories: plant-based options like desserts made with oat milk and non-dairy cheeses; products catering to other dietary lifestyles, such as gluten-free, or made without artificial flavours, colourings or added sugars; and “culinary experiences.” The last category features items like creamy corn jalapeno chowder and pasta from Italy.

The launch comes as inflation has driven shoppers to seek less-expensive alternatives, lifting the popularity of private-label brands. Private brands accounted for nearly 26 per cent of the overall market share in the number of units in the food and beverage category sold last year, up from 24.7 per cent during the previous year, according to market research firm Circana. That compares with 74.5 per cent for U.S. national name brands last year, down from 75.3 per cent in 2022.

For so-called core pantry items, including breakfast meats, baking items, fresh bread and salty snacks, private brands accounted for 36.6 per cent of market share in dollars in 2023, up from 36.2 per cent in 2019. That compares with national brands, which accounted for 63.4 per cent last year. That’s down from 63.8 per cent, according to Circana.

But these store brands are becoming tastier and higher quality, mirroring national brands. Walmart’s rivals, including Target, have been growing and sprucing up their own labels. Target’s Good & Gather food and beverage brand, launched in 2019, has expanded to include dishes such as chicken tikka masala.

Many U.S. grocery retailers face increasing competition from Trader Joe’s, which offers shoppers a treasure hunt experience with its variety of high-quality meals, ingredients and snacks.

Bettergoods joins Walmart’s other store label food brands, including Great Value and Equate, that provide lower-priced alternatives to branded products. In contrast, many of Bettergoods products are designed to be unique to Walmart while introducing its customers to new trends and flavors, the retailer said.

“As an industry, we’re seeing younger customers be more brand agnostic, prioritizing quality and value, and driving increased interest in private brands,” Scott Morris, Walmart’s senior vice president of private brands, food and consumables, said.

A coalition of Nestle shareholders, co-ordinated by ShareAction, an investment NGO, had filed the resolution challenging Nestle to improve its impact on people’s health.

The shareholder coalition asked Nestle to implement internationally accepted standards that define healthy food rather than deviating from credible guidelines, amid concerns over the regulatory, reputational, and legal risks to the company, and public health impacts associated with an over-reliance on less healthy foods.

“While the vote we achieved today may be less than we wanted, the direction of travel is clear. Investors and consumers are recognizing the importance of addressing the business risks and public health impacts of an industry that is heavily reliant on the sales of unhealthy food. They have growing expectations not only from Nestle, but from all food manufacturers. Left unaddressed, the public health trends that spurred this resolution will only worsen; consequently we expect investor support for such resolutions at food companies to increase. We look forward to continued engagement with Nestle and hope to see progress towards the health goals the company itself claims. While the majority of shareholders did not support the resolution, we hope that it has encouraged them to think about the public health impacts of their investments,” said Simon Rawson, deputy chief executive of ShareAction.

Credit: Ojasvini Parashar

This year’s ‘Level Up’ theme is aimed at supporting the industry, helping foodservice professionals, restaurants, cafes and bars discover new ways to push the boundaries of what’s possible in the industry while embracing innovation.

Kelly Higginson, president and CEO of Restaurants Canada, said in a press release that the show was for everyone including people aiming to expand a business, foster a winning team, boost efficiency, or enhance the overall quality of service.

Credit: Ojasvini Parashar

As expected, several beverage brands were displaying their wares. The Food in Canada team saw multiple non/low alcoholic brands, such as Partake Brewing and Libra, as well as a smattering of coffee/tea brands with sparkling teas, functional teas, cold-brew coffees, and canned lattes. With single-source Colombian coffee and a smooth, rich taste, Manic Brews’ ready-to-use cold brews caught our eye. Other innovative products on display included Bliss Dough’s straight-from-the-jar, ready-to-eat edible cookie dough and Nana Pops’ nutritionist-approved vegan ice creams that are literally a smoothie on a stick. Many of the exhibitors were offering products, such as gluten-free breads and vegan desserts that catered to a diverse clientele.

“This year we’ll be celebrating innovation, excellence, and the dynamic and deep-rooted essence of the Canadian hospitality sector. Our emphasis is to empower attendees to elevate their skills in this constantly evolving industry, challenge conventional limits, invest in people, and wholeheartedly embrace the spirit of innovation,” Higginson said.

The new and returning competitions for this year included the Garland Canada Culinary Competition, Restaurants Canada Pizza Competition, Fried Chicken Sandwich Competition, Beyond The Rail Cocktail Competition, John Bil Oyster Shucking Competition, and Coffee Competitions.

Credits: Ojasvini Parashar

The show also had a range of dynamic speakers such as co-owner and chef of Vij’s Restaurant Meeru Dhalwala; sommelier, winemaker, and designer André Hueston Mack; chief economist and vice president of research for Restaurants Canada Chris Elliott; foodservice analyst for Circana Vince Sgabellone; senior vice president and head of Syndicated Solutions at Ipsos Asad Amin; senior principal and head of strategic partnerships at Technomic David Henkes; and founder of Marler Clark, Bill Marler.

Trends

The driving trends that we noticed this year at the The RC Show are “eatertainment”, sustainability and AI-powered personalization.

• “Eatertainment” is driving innovation in the industry, with restaurants leveraging interactive elements and entertainment to create memorable experiences that generate positive word-of-mouth.
• The food service industry remains focused on sustainability with a growing emphasis on plant-based products and menus including the ever-increasing trend of plant-based seafood.
• AI-powered personalization is revolutionizing the food service industry by allowing establishments to tailor their offerings and interactions to individual customer preferences. New trending technological advancements are widespread, impacting how customers eat and drink out, including helping businesses customize menus, and create more personalized recommendations and event-targeted diner messaging.

There was a total of 11 pavilions this year like, Bar & Beverage Pavilion, Canada Pavilion, Coffee, Tea & Sweets Pavilion, Design Pavilion, Eco Pavilion, Indigenous Pavilion, Ontario Pavilion, Quebec Pavilion, Tech Pavilion, The Black Experience Pavilion, and the World Pavilion.

It’s neighbour Ivory Coast, which is the world’s largest cocoa producer, also raised its farmgate price to 1,500 CFA francs per kg, up from 1,000 CFA francs last season.

Per AfricaNews, major confectionery companies like Hershey, Nestle, Mondelez, and Barry Callebaut, buy cocoa from Ivory Coast.

Dr. Alejandro Marangoni is a professor in the Department of Food Science and the Canada Research Chair in Food, Health and Aging. He researches the development of new structured emulsions to take the place of trans fats, saturated fats, and palm oil in foods.

Marangoni notes the cost of chocolate is rising because of long-term shortages of cocoa beans in West Africa, where the majority of the world’s cocoa is grown. Extreme weather and climate change in those regions have led to crop failures of cacao trees.

“Cocoa butter is one of the most expensive fats in the world and current trends in the cocoa butter market suggest further rises in prices because of shortages and increasing demand,” he says. “That’s why finding practical alternatives is necessary.”

Marangoni is working on several solutions, including one that could transform industrial chocolate production, by eliminating multi-step “tempering,” a costly and lengthy process of repeatedly heating and cooling melted chocolate in large machines to create the ideal structure.

“We can lower chocolate prices due to our invention of a simple method to temper chocolate by adding a specific phospholipid, which skips the use of complex tempering processes,” he says.

The technique is described in this 2021 research study.

His team has also been developing cocoa butter alternatives for the chocolate industry that have similar textures and melting points as chocolate but do not contain dangerous trans fats.

The team uses non-cocoa sources, such as shea butter, oils from marine algae and palm oil mid fractions.

Marangoni says that efforts to find alternatives to expensive cocoa butter have been underway for years but have accelerated as the cocoa supply dwindles and demand increases.

“It’s all about economics and futures,” he says. “The price of cocoa and cocoa butter has finally reached that critical point where cocoa butter alternatives are necessary.”

“I think people are becoming more interested in where their food comes from,” said Sophia Carodenuto, a professor of geography at the University of Victoria whose research specializes in global food systems.

The past few years have seen a number of high-profile disruptions including a spike in lettuce prices due to flooding in California, rising orange juice prices because of bad crops and higher wheat prices linked to the Russia-Ukraine war.

These kinds of disruptive events feel like they’re becoming more common, said Graeme Crosbie, senior economist at agriculture lending firm Farm Credit Canada.

Cocoa futures have “gone vertical” this year, especially in the last four or so months, said Crosbie.

Futures are a way of measuring commodity prices based on contracts for future delivery, a common way to track prices for commodities like wheat, gold and oil.

A February report by agriculture-focused co-operative bank CoBank said cocoa prices were nearly 65 per cent higher than a year ago, and New York futures prices were at a 46-year high.

Bad weather and disease in West Africa have damaged crop yields, said Crosbie, hurting supply for the product that goes into Halloween, Valentine’s Day and Easter candy.

“The confection business is going to bear the brunt of the margin impact due to cocoa,” Hershey chief financial officer Steven Voskuil told analysts on a conference call in February.

Most cocoa, especially the cocoa found in many popular chocolate products, comes from West Africa, Carodenuto said. Côte D’Ivoire, which she said produces about 40 per cent of the world’s cocoa, saw a 30 per cent decline in production over the past year due to climate change and disease, she said.

“That’s one of the main drivers of … this huge rise in prices on the commodity markets,” she said.  “I think we’re seeing this all over the world, that the rainy season and the dry season are no longer predictable the way that they had been.”

Unlike some crops, cocoa production is highly concentrated, meaning huge portions of the world’s supply are grown in a handful of areas, said Crosbie. This makes the crop and its supply chain more vulnerable to disruptions.

Cocoa prices don’t directly translate to retail prices, since there are many things other than cocoa that make up a chocolate bar, Crosbie said. But they do have an effect, and he expects retail prices to increase.

According to Statistics Canada inflation data, the price of confectionary items rose more than nine per cent between January 2023 and 2024, compared with overall inflation for food purchased from stores of 3.4 per cent.

Michael Medline, the chief executive of Sobeys parent company Empire Co. Ltd., told investors earlier in March the grocer is seeing “sizable” price increases from some of its suppliers that will “inevitably affect the customer.”

“This is largely driven by some commodities like sugar and cocoa continuing to be very volatile due to ongoing climate and geopolitical factors impacting global supply,” he said.

Higher cocoa prices are an obstacle for manufacturers who have already been struggling with higher sugar prices over the past three years, said senior food and beverage economist Billy Roberts in the CoBank press release.

“That could lead to a further erosion of chocolate volume sales and begin to impact dollar sales as well,” he said.

Consumers are becoming more aware of these kinds of disruptions as food prices have risen across the board, Crosbie said.

“I think people are certainly paying more attention to the prices themselves, and even how their food is produced.”

In a 2021 survey by Deloitte, almost three-quarters of respondents said it’s important for them to understand where their food comes from.
And cocoa is one of many food products that consumers are eyeing more critically.

Cocoa is indigenous to Central America, said Carodenuto, and naturally grows under a canopy of rainforest trees in a diverse ecosystem. But large swaths of rainforest in West Africa have actually been wiped out to make room for cocoa farming, meaning less ecological diversity and more vulnerable crops.

Higher commodity futures also don’t necessarily dictate the prices farmers are being paid in real time, noted Carodenuto.

In Ghana and Côte D’Ivoire, the largest-producing countries for cocoa, the government creates a minimum price for farmers for the season, she said. But the large multinational companies buying and trading cocoa enter into forward contracts, meaning prices are agreed upon in advance.
It takes a lot of manual labour and investment to build a cocoa farm, so farmers need support, especially financially, Carodenuto said.

There’s hope that the higher futures prices will lead to more income next year, but it’s not a guarantee, she added — cocoa prices are cyclical, meaning there will likely be a price crash at some point.

Consumers looking to make ethical spending decisions face a difficult choice, said Carodenuto, especially given the price gap between premium and ethically sourced chocolate and popular, mass-market confections.

Carodenuto said shoppers don’t need to stop buying chocolate, but they should educate themselves and seek supply chain transparency by looking for the origin of the cocoa in a product.

Shoppers who can afford to spend more can also seek out businesses that specialize in sourcing ethical cocoa products, she said.
In the long term, there is lots of potential for cocoa to be grown in a more sustainable manner, she said, but it could mean lower production in the short term.

“It’s just that, who’s going to pay for that? … It shouldn’t be the most marginalized actor in the system. It shouldn’t be the smallholder farmer who has to pay for that.”

— With files from The Associated Press

Unlike the standard four-piece bar, the Iftar bar features 30 pieces. The bar is divided into three parts, with each set of 10 pieces representing the 10 days of each Ashra, featuring iconography inspired by the 30 phases of the moon in the Islamic lunar calendar.

“Last year’s Iftar bar resonated widely with Canadians celebrating Ramadan,” says Riona Coller, marketing leader, confectionery, at Nestlé Canada. “We’re thrilled to officially offer a limited run, furthering our community engagement, and embodying the spirit of service during the holy month with proceeds to support Food Banks Canada. We’re honoured to play our part and anticipate many more meaningful celebrations across diverse communities in the years ahead.”

All proceeds from Iftar bar sales will support Food Banks Canada.

The Iftar bar is now available at www.kitkat.ca while supplies last.

Organic growth was 7.3 per cent in North America, largely driven by pricing as well as continued momentum for e-commerce and out-of-home channels. Nestle gained North American market share in pet food, coffee and frozen meals.

By product category, Purina PetCare was the largest growth contributor, with broad-based demand across segments, channels and brands, particularly Purina ONE, Purina Pro Plan and Friskies. Sales for Nestle Professional and Starbucks out-of-home continued to grow at a double-digit rate, led by new customer acquisition. The beverages category, including Starbucks products, Coffee mate and Nescafe, posted mid single-digit growth. Nido growing-up milks posted strong double-digit growth. Confectionery in Canada recorded high single-digit growth, driven by KitKat and Aero. Water saw low single-digit growth, based on a strong sales development in the fourth quarter. S.Pellegrino and Acqua Panna posted double-digit growth, which more than offset the impact of capacity constraints for Perrier. Growth in frozen food was negative, impacted by soft consumer demand and the winding down of the frozen meals and pizza business in Canada. In the U.S., growth in frozen food was close to flat, supported by Stouffer’s, Jack’s and Tombstone.

Pricing and mix also helped to offset cost inflation and a significant increase in advertising and marketing expenses.

Company CEO Mark Schneider said, “Unprecedented inflation over the last two years has increased pressure on many consumers and impacted demand for food and beverage products. In this challenging context, we delivered strong organic growth and solid margin improvement with increased marketing and other growth investments. Our free cash flow generation returned to historical levels.

“Looking to 2024, we are prioritizing volume- and mix-led growth with increased brand support, as we enhance value for consumers through active innovation and renovation, premiumization, affordability and more nutritious options. We will continue to focus capital allocation on our fast-growing billionaire brands, which enables us to deliver dependable growth while enhancing brand loyalty.”

For 2024, Nestle expects organic sales growth around four per cent and a moderate increase in the underlying trading operating profit margin. Underlying earnings per share in constant currency is expected to increase between six and ten per cent.

The Mars Unreasonable Food partnership will focus on four pillars: Shaping the Future of Food, Improving Farmer Livelihood, Transforming Food Supply Chains, and Reimagining Sustainable Packaging. These four focus areas are designed to identify, and then accelerate, the areas Mars believes can make a meaningful and differentiated impact given the company’s global business footprint and operations.

Each year, Unreasonable will identify, privately invite, and unite growth-stage entrepreneurs best positioned to profitably solve sustainability challenges. Selection of these ventures will be a mutual decision between Unreasonable Group’s team and the Mars Snacking team. Over the course of the three-year partnership, Unreasonable Food aims to build a portfolio of approximately 40 solutions uniquely situated to solve Mars Snacking’s key sustainability challenges.

The first cohort, to be announced later this spring, will join Mars Snacking’s first Unreasonable Food program for a week-long gathering with mentors from the Mars Snacking global leadership team as well as Unreasonable.

Amanda Davies, global vice-president of R&D, sustainability, and commercial at Mars Snacking, said, “Mars has the experience, the energy, and the footprint to shape the food future. Doing nothing is not an option.”

Daniel Epstein, CEO at Unreasonable Group, said, “More than 25 per cent of global greenhouse gas emissions caused by human activity can be attributed to the way we produce, process, and package food. As one of the world’s largest food companies with some of the world’s most admired brands, Mars Snacking, in partnership with Unreasonable and the entrepreneurs we support together, is uniquely positioned to put that statistic where it belongs— in a museum. We cannot imagine a more compelling partner to set a new standard for sustainability in our food systems than Mars.”

The Mars Net Zero Roadmap aims to cut carbon by 15 million metric tons by 2030 across the company’s value chain.

Bello joined Mars in 2006 and has since held roles of increasing responsibilities across all three of the Mars CPG segments – confectionery, pet and food. Most recently, Bello held the position of VP of sales for Mars Wrigley Canada where she successfully guided teams in digital, category, customer marketing, sales, retail, demand, operations, strategic revenue management, and capability.

She is a people-centric leader with a passion for fostering talent and a recent recipient of Canadian Grocer’s Star Women in Grocery Award. She looks forward to sharing her expertise, innovation and leadership with her team.

“It’s a company that started with the idea of bringing hot chocolate to all families in Colombia, but [the idea was] also to see how through that product, and through developing hot chocolate, they could also bring development and well-being to cocoa-growing, rural families in Colombia,” said Marcela Jaramillo, VP of marketing for Luker Chocolate, a 120-year-old family-owned business.

Fine flavoured cocoa

When we think of Columbian crops, cocoa might not be top of mind. But Colombia is the 10^th largest cocoa producer in the world. It produced 62,000 tons in 2022. What sets the country apart is that 95 per cent of the country’s cocoa for export is fine flavour cocoa. A special quality classification designated by the International Cocoa Organization, fine flavour cocoas have nutty, floral, or even fruity flavour profiles and is ideal for chocolates.

“[This cocoa] allows us to develop dark chocolates, for example, an 85 or 90 per cent, and still taste all the aromas and flavours that we love about chocolate, without having to add too much to the chocolate,” said Jaramillo.

Cocoa farming is also a safe and sustainable alternative to illicit activities such as drug trafficking and the violence that goes along with it. Remote and isolated, Colombia’s countryside and cocoa-growing regions have been especially affected by the 50 years of narco trafficking.

“Cocoa is a great income option for communities that live in lower altitude areas where illegal crops are grown. So, cocoa is a strong option to also drive peace in the countryside,” added Jaramillo.

Luker’s portfolio includes everything from 90 per cent dark chocolates to 36 per cent white chocolates.

Global footprint

In 2005, Luker expanded from hot chocolate to a line of couverture chocolates that are used by manufacturers to produce a wide range of products like baked goods and ice creams. Luker’s heritage recipe portfolio includes everything from 90 per cent dark chocolates to 36 per cent white chocolates.

Exporting to 40 countries, Luker Chocolates’ ingredients are used by manufacturers like GoodSam Foods, Petit Pot, and Lacey’s (Desserts On Us). The company employs more than 600 people with offices in Europe, the U.K., the U.S., and Colombia. Luker entered the U.S. market in 2008 and Canada in 2015. It  acquired  a  majority stake in Lyra group in 2022, a leading Slovakian chocolate manufacturer. Last year, Luker’s net revenue was over $110 million.

Private label

In 2008-09, Luker launched a private label division that now produces custom bars, snacks, chocolate-covered fruits and nuts, and a hot chocolate stick. Serving around 12 per cent of their total sales, the private label is manufactured in Colombia and in the recently acquired production facility in Slovakia. These facilities are certified BASC and FSCC2200, as well as offer kosher and non-GMO options. Jaramillo believes in “really working with brands to see how we can grow together and help them grow and find those business objectives that they have.”

New initiatives

In 2021, Luker launched an oat beverage-based chocolate. It was challenging to capture the indulgence and creaminess of the traditional line with novel ingredients, but after many trials and errors, they managed to formulate an oat beverage-based chocolate that mirrors dairy chocolate in taste and texture.

Other innovations include working with coconut sugar and creating sugar-free alternatives to cater to health-conscious consumers. In recent years, Luker has also been selling single-origin (i.e. country, region, estate) chocolates. Like wine, Jaramillo noted that each region provides a different flavour profile for the chocolate.

Traceability

While many companies have adopted sustainable practices, Luker Chocolates takes it one step further. In 2018, Luker signed the Cocoa and Peace initiative that prevents deforestation in cocoa-growing regions. Chocolate Dream, launched in 2018, teaches farmers how to protect local biodiversity, avoid water contamination and ensure responsible use of natural resources.

With a holistic approach to sustainability, Luker is also working to improve the lives of their workers. By 2027, the company is aiming to boost the incomes of 1,500 farmers by 20 per cent. They aim to do so by supporting education, gender-focused entrepreneurship, and reinforcing the human rights of 5,000 families. They are also working to achieve 90 per cent adherence to the Women’s Empowerment Principles, and in 2022, they changed policies emphasizing gender equality and fair pay for women.

Currently, all their cocoa can be traced to the first purchasing point, which the team at Luker says is crucial to ensure farmers are paid fairly and crops are grown sustainably. By 2027, Luker aims to conserve 5,000 hectares of land in the regions of Necocli, Tumaco, Huila, Casanare, Sur de Bolivar and Caldas. The company is well on its way to achieving this goal, as last year they protected 2,670 hectares by documenting the whole supply chain, demonstrating farmer’s payments and geo-referencing images. It plans to achieve net-zero carbon emissions by 2030. Having already achieved carbon neutrality across all their operations (including their farms), they are now tracking their carbon footprint and the footprint of their suppliers.

Sustainability

Recently, Luker earned B-Corp certification, a designation that highlights the company’s high social and environmental performance. The certification is a commitment not just to earning a profit but to their workers, the community, and the environment. Additionally, initiatives like the Chocolate Dream anchor their sustainability plans through a collaborative approach to sustainability and social well-being.

This article was originally published in the November/December 2023 issue of Food in Canada.

The chocolate confectionery market is expected to be worth over US$128 billion in global retail sales by the end of 2024.

With the recently seen price increases, Barry Callebaut expects consumers to respond in two ways:

Consumers continue to treat themselves by celebrating and escaping the ordinary experience by purchasing small luxury items, such as premium and high-quality chocolate.

Conversely, nearly seven out of 10 consumers (66 per cent) are looking for better value for their money. This group is also looking for ways to get more for their money, such as buying in bulk, taking advantage of economies of scale, or switching to private-label brands.

In both cases, consumer preferences depend on their mood or mindset and their specific attitude toward life.

Celebrating life with intense chocolate experiences
Consumers look for Intense Indulgence when they want to enjoy life to the fullest. They want immersive experiences.

Based on our proprietary research among 11,974 participants, in August 2023, three out of four consumers (74 per cent) want to try new and exciting chocolate experiences. Consumers want unique, rare, seasonal, and premium chocolate, especially limited editions.

Consumers perceive chocolates with a unique story about their origin or production as being of higher quality. According to Barry Callebaut’s  research, 61 per cent of people appreciate brand storytelling, and the same percentage actively seeks out seasonal chocolate confectionery.

About 70 per cent of consumers want unique, exciting chocolate with multiple textures and flavours.

Indulge with health of planet and people in mind
The Mindful Indulgence trend is for consumers who want to indulge without compromising their physical and mental well-being, the health of others, or the planet.

Barry Callebaut’s  research shows that three out of four (75 per cent) of global consumers agree that chocolate needs to be tasty, ‘good for me,’ and good for the planet.

Most consumers (77 per cent) want chocolate with less sugar. Forty-one per cent are trying to limit their sugar intake, and 10 per cent are avoiding it altogether.

Consumers are increasingly interested in natural and authentic ingredients, as well as products that are free from artificial additives and have simple ingredient lists. More than half (54 per cent) of consumers prefer pure chocolate without artificial flavours and colours, while 66 per cent are interested in chocolate confectionery that contain what they consider unhealthy ingredients.

Consumers are becoming more environmentally conscious and are looking for chocolate produced in a way that is sustainable and ethical. According to this year’s research, 65 per cent of consumers choose chocolates that minimize waste and use upcycled ingredients, nearly two-thirds are actively looking for chocolates that are produced sustainably, and almost seven out of 10 (68 per cent) prefer chocolate brands and products that enable them to do good for people and the planet.

Indulgence with health benefits
Consumers looking for Healthy Indulgence actively and intentionally make choices that have a positive impact on their health. The majority of consumers (69 per cent) are interested in chocolate with healthy or good ingredients, 74 per cent want snacks that are both nutritious and energizing, and 71 per cent would like to have chocolate that supports their mental health.

Six out of 10 people find claims like ‘high in protein’ appealing when it comes to chocolate. In addition to protein, they also look for nutritional products that include ingredients like vitamins, minerals, fibres, flavonols, and omega-3.

The Healthy Indulgence trend is one to watch within the confectionery segment in the years to come, according to Barry Callebaut.

This year hosted 1,200 exhibitors (30 per cent coming from abroad) while 10,000 meetings were scheduled.

The 2023 edition of Cibus Tec was opened by Franco Mosconi, president of Fiere Parma.

“Fiere di Parma is a special place, in which the authentic beauties of this country are periodically on display: art, antiques, tourism, good food. With Cibus Tec, however, it takes the visitor inside an ideal factory of the future in which one can experience first-hand all the processes – of very high technical depth – that bring the foods and drinks we consume daily to our tables,” says Mosconi. “All this gives enormous prominence to the foodtech supply chains and manufacturing excellence of our territory and of Italy as a whole, attracting highly qualified exhibitors and visitors from all over the world, certain of finding here in one place, the best and most advanced solutions, technologies and innovations for the food industry.”

Photo: Cibus Tec

The inauguration ceremony was an opportunity to present data from the first Cibus Tec machinery observatory for food & beverage, which aims to measure and monitor the size, performance, markets and competitiveness of the supply chain on international scale.

The meeting was concluded by Emanuele Di Faustino, head of industry, retail and services at Nomisma, who oversaw project.

“Despite the uncertain international macro-economic and geopolitical scenario, the opportunities for a further expansion of Italian exports of food and beverage technologies and machinery in the coming years are plausible. The market of greatest interest for Italian companies is certainly the United States, the main world importer (7 billion euros in 2022) and the first destination for Made in Italy exports (1.2 billion euros), a record destined to remain so in the future, thanks to an expanding food industry and significant growth rates in the demand for Italian machinery. Precisely in light of this strategic nature, the USA was the first market to be studied in depth within the newly created Machinery Observatory for Food & Beverage by Nomisma for Cibus Tec,” he said.

Many companies who operate in Canada were exhibitors at the show, including: bioMerieux, Honeywell, Kronen GMBH and Provisur Technologies, to name a few.

The Italian company, Bardiani Valves, opened a Canadian distribution office in Toronto in 2014. At the Bardiani booth, Food in Canada had a chance to speak with Andrea Genitrini, General Manager at Bardiani about the show and Italian/Canadian ties. 

“At this edition of the trade show we decided to invite our biggest Canadian partners to our Parma facility. We try to open up in the same way they opened to us when we first came to Canada. We hope to share Italy with them like a local.” 

Bardiani hosted an evening of education and networking on October 24 at their Parma plant. There were presentations on their machinery and equipment, with the team available to explain the features and advantages of new technologies. 

Various events took place during the week, one of the conferences scheduled was organized by the Order of Food Technologists from Emilia-Romagna, Tuscany, and Umbria.

“The Impact of Circular Economy on Food Safety” roundtable discussion provided insights into the importance of food safety in companies adopting sustainable practices such as reducing their carbon footprint, fighting food waste, food redistribution, and waste management. The seminar concluded a three-day event hosted by the Order, in collaboration with Cibus Tec, which focused on current regulations and innovations in food, from functional foods to cultured meat, from insect-based products to plant-based products, and clean-label offerings.

In celebration of the 120^th anniversary of the International Milk Federation and the Italian Committee, a discussion took place aimed at giving voice to the dairy industry. The goal was to share business experiences and strategic directions to collectively tackle upcoming challenges.

Demo line. Photo: Cibus Tec

Walking through the conference halls, machines were spotted in action; moving in rapid speed, zipping vacuum sealed cheese and other products down converter belts with precision. 

In Hall 2, three automated production lines were showcased. One was dedicated to a traditional Italian bakery product, ‘pinsa,’ which has experienced a surge in popularity in recent years. The processes of mixing, forming, and packaging the finished product were designed to optimise production, minimise waste, and ensure precise weight accuracy.

A second line replicated the processes of portioning and packaging hard and semi-hard cheeses. The initial step was cutting, a process that could be conducted with different diameters and heights, resulting in products with fixed geometry or calibrated weight. The portioned cheese was transported to a quality control system that employed 2D and 3D analysis to examine the product both dimensionally and cosmetically. Safety at work was also considered in this line, with specific stainless steel protections safeguarding tasks performed by human operators.

The third line replicated the packaging of ‘Doypack’ bags, applied to candies (though the process is versatile). An aspirator transported the sweets to a 10-head weigher, which could adjust the product dosage as needed for packaging. The packaging machine featured both a bag loader with servo-assisted pick and place and a system for discarding unopened or improperly positioned packages. The line integrated an electronic gas mixer in direct communication with the machine, minimising consumption. At this stage, packages passed through an in-line sealing integrity control system, ensuring food safety and product quality.

Start up arena. Photo: Cibus Tec

In Hall 4, at the Cibus Tec Digital Factory, visitors entered the world of Industry 5.0, where digital technologies such as the industrial internet of things, virtual reality, and artificial intelligence optimised production efficiency, streamlined maintenance and training operations, made production more sustainable, and enabled new post-sales business models for machine manufacturers.

Mechanics for the F&B industry is an area of focus in Italian manufacturing; with over 2,100 active companies and 61,000 employees, the sector generated a turnover of 15.7 billion euros in 2022. Compared to 2019, turnover grew by 7.6 per cent, while the workforce recorded an increase of 11.7 per cent.

This industry also represents one of the Made in Italy sectors most suited to international markets, with exports of eight billion euros in 2022 (24.2 per cent compared to 2012). In the first six months of 2023, compared to the same period of 2022, the export trend is growing (+16.4 per cent), and at the end of 2023, it is estimated to close with a value of approximately 8.8 billion (+10 per cent compared to 2022).

The proposed acquisition would combine Jelly Belly Candy Company’s more than 100 flavours of Jelly Belly jelly beans and gourmet specialty confections with Ferrara’s broad portfolio of sugar candies. Once the acquisition closes, nearly 800 global Jelly Belly employees and its facilities in California, Illinois, and Thailand will join the Ferrara organization. Jeff Brown, who is currently the executive vice-president of global operations and distribution of Jelly Belly, will become its CEO.

Jelly Belly Candy Company’s roots date back to its founding in Illinois in 1869 and it has continued to be family-owned and operated by the fourth, fifth, and sixth generations of the Rowland candy-making family. Its signature brand of Jelly Belly jelly beans has been one of the most loved and recognizable candy products in the world since its introduction in 1976. Its portfolio includes more than 100 flavours of its jelly beans and aother candies. The company is also well-known for its specialty retail confections, including jelly bean lines such as BeanBoozled jelly beans and Sport Beans Energizing jelly beans. Today, Jelly Belly distributes its products in more than 60 countries across five continents.

Headquartered in Chicago for more than 115 years and privately owned, Ferrara is a leading U.S. sugar confections company and the manufacturer of 20 brands such as Black Forest, Nerds, Sweetarts, and Trolli. Ferrara is a Ferrero related company.

“As we considered the future of Jelly Belly Candy Company, we have been steadfast in our commitment to create a win-win situation for our employees, consumers, and products,” said Herman Rowland, sr., chair of the board of directors of Jelly Belly. “When I met with the Ferrara team, I recognized a like-minded group that shares our knowledge and passion for the candy business and has the talent and resources to grow our products and the careers of our people around the world. I am confident of the continued success of Jelly Belly as part of the Ferrara portfolio.”

“We are excited to bring Jelly Belly’s imaginative products and talented team into the Ferrara community,” said Marco Capurso, CEO of Ferrara. “Our dedication to creating high-quality, innovative sugar confections for the world and our deep relationships with retailers aligns perfectly with the Jelly Belly track record and passion for quality, reliability, and customer service. We look forward to working together to build on the success of all our brands.”

Fermentation contributes to food sustainability through preservation, safety, and production of food components. The desirable flavour of fermented foods is predominantly due to the acid, sugar, and volatile flavour compounds.

Whether it is for preservation, flavour, texture, health benefits or a combination of these reasons, fermented foods are thriving. Research suggests fermented foods can support both gut and immune health. Health-conscious consumers are still making sourdough bread, creating fermented vegetables, and enjoying fermented dairy. Therefore, consumers are open to techniques that create breads and baked goods with better tastes, textures and enhanced nutritional value.

Deb Anderson, director new business development, the Protein Brewery, explains, “Many consumers are seeking more natural, fresh, and less processed foods. Fermentation is perceived to be a natural process. Consumers are more conscience of the gut microbiome and its health benefits, and fermented foods have a long history in providing healthy gut microflora. Consumers will continue to seek better-for-you bakery products. However, they will not compromise on the experience, which includes decadent flavours and delicate textures.”

Beyond traditional bread

Sourdough bread is a consumer favourite when it comes to fermented foods. Sourdough provides an old, traditional method of fermentation for artisan bread making. However, let’s look beyond the bread application. 

Adriana Fazzina, vice-president of marketing, Puratos Canada, describes, “With over 2,400 registered sourdoughs in our Puratos’ Quest for Sourdough project, we were able to learn that sourdoughs used to make laminated goods (croissant) typically have a less fruity taste profile; and a more pronounced lactic sourness when compared to other sourdough baked goods. But this difference in taste profile is not the main reason why sourdough is used in laminated and other rich baked goods. It was texture. By combining the data with all our consumer surveys and consumer taste tests, we found a consumer preference for a ‘melting’ or ‘buttery’ croissant, and sourdough croissants rate very well on those factors.”

Advancements

The plant-based baked goods segment is evolving, thanks to advancements in fermentation technology. From alternative protein ingredients to enzymes, the baking industry now has options to create desired flavours and textures in plant-based cookies, cakes, and other baked goods.

Anderson explains the Protein Brewery’s technology is considered biomass fermentation. It is a non-sterile process combined with a proprietary fungi strain that converts water efficient crop side streams, such as potato or corn (golden remains) into a high-quality protein, insoluble dietary fibre, essential fatty acids, vitamins, and minerals. Due to the nature of the conversion process, the protein is essentially inert or not ‘bossy’ in bakery formulations. As a result, bakeries can develop a permissible indulgent bakery treat without compromising flavour or texture. Its target applications in the current format are better-for-you bakery, bars, snacks, and tortilla.

Enzyme technology is a must-have solution in baking today. It provides a consumer-friendly label solution while increasing shelf life.

Fazzina identifies, “Plant-based baked products are becoming better as far as tastes and textures are concerned. This can be attributed to the development of enzyme technologies. Enzymes can replace several ingredients, while maintaining the original functionality in the finished product.”

The chocolate sector

Fermentation is a vital step to chocolate making. Fermentation allows the bitter, otherwise tasteless, cacao seeds to develop the rich flavours associated with chocolate.

“Beans are dried and fermented before being transformed in chocolate liquor,” explains Fazzina.

The art and science of fermentation has a promising future in the baking industry. From the ancient role of preservation to the modern role of creating desired textures, fermentation technology advances are impacting the industry. 

“By monitoring emerging trend signals and predicting their growth trajectories, we are able to gain insight into the future of our industry,” said Jaina Wald, vice-president marketing, Puratos USA. “Our goal is to remain at the forefront of innovation and ensure that our partners and clients stay ahead of the curve. By understanding consumer needs, motivations, moments and narratives, Puratos delivers a holistic understanding of the current landscape and envisions the future of food.”

Trends that will shape the future of bakery, patisserie and chocolate in North America include the following.

The “tech-inspired” revolution: Embracing innovation and craftsmanship

North America’s food landscape is undergoing an astonishing transformation through the “tech-inspired” revolution. The region’s fastest-growing trend, captivating both consumers and professionals seeking to harmonize traditional craftmanship and cutting-edge technology is manifesting in the use of AI-powered generation and 3D printing.

“By fusing technology and culinary craftsmanship, we’re pushing creative boundaries and entering a new era of recipe personalization with tools like ChatGPT and text-to-image generators,” said Wald. “Technologies like 3D printing bring culinary visions to life, fostering unparalleled experimentation and elevating the entire industry.”

In addition to AI technologies influencing recipe generation, one in three consumers believe that AI will help them make better food choices.

“Classics continued” and “fusion flavours”

Puratos research found that more than half (69 per cent) of the North American consumers polled are looking for nostalgic, familiar culinary experiences. Another 64 per cent of respondents are interested in experimenting with food presented in new ways.

“This distinctive duality of desiring classic comforts as well as the thrill of the unexplored presents an exciting opportunity for industry professionals to leverage the power of classics while reinventing finished goods to encourage exploration and discovery,” said Wald.

The “gut feeling” trend

A substantial 76 per cent of North American consumers recognize the essential role of improving gut health for overall health – from a boost in immunity to enhanced mental well-being. In fact, 66 per cent express interest in food products designed to enhance and enrich gut health.

“This striking interest in gut health among North American consumers is translating into a demand for multipurpose gut-friendly foods that offer holistic health benefits and enhanced energy,” said Wald.

This increased focus on gut health has prompted a surge in demand for bakery, sweet goods, and chocolate products infused with probiotics, prebiotics, and fibre. Eighty-four per cent of North American consumers acknowledge the positive effect of fibre on digestion.

Sourdough emerges as an unwavering symbol of this trend, holding its position as one of the most popular goods in this category among consumers. Sourdough fermented bread stands out for its superior digestibility, a result of its extended fermentation process. This slow fermentation unlocks an array of advantages: increased release of vitamins, minerals, and amino acids, contributing to an overall enhanced nutritional content.

Plant forward: Cultivating a greener indulgence

The “plant forward” movement emerges as a prominent and compelling subject of online discussions in North America, underscoring a transformative evolution in people’s dietary preferences. In this era of heightened consciousness, consumers have become acutely aware of the profound ripple effect their food choices can create on the environment. The surge of interest in plant-based options echoes this growing realization, with nearly half (44 per cent) of individuals perceiving plant-based foods as a natural choice.

In North America, 53 per cent of consumers recognize the positive impact that pant-based choices have on the environment. Another 46 per cent believe plant-based offerings both cater to their well-being and are a healthier choice than animal-based products.

As this trend of conscious consumption continues to evolve, consumers are setting high standards for the quality and taste of plant-based products.

The multi-step approach involves preparing to innovate, checking out the current market, plotting your path, formulating your candy, and developing a launch plan. The speed of your journey will vary depending on several factors such as: 

• how frequently do you innovate;
• does your organization have a process to follow, or are you new to innovation;
• how many stakeholders must you consider, as multiple approvers can lengthen development time;
• what are your brand’s financial goals;
• do you need a quick win in the market with a seasonal flavour, or are you focused on growing your brand extensively?
• You may run through these steps quickly for a limited-time offer, while a significant new launch could take more than one year.

Step 1: Set your brand guardrails

Before starting your innovation journey, take time to understand the opportunities and limits within your brand.

For an established brand, confirm you clearly understand current customer perceptions. Is your brand viewed as traditional, novel, or cutting-edge? Mapping your brand’s persona helps you begin setting boundaries for how far you can take the product’s flavour.

You can explore how far you can stretch your brand using consumer research. Are any flavours, formats, or functionalities out of bounds for your brand? Can your brand change its shape or format or offer a trending flavour? Sometimes people have a high tolerance for brand innovation. Snickers, the well-loved combination of chocolate, caramel, and nougat, made a successful leap into the ice cream category as an extension that made sense to people. Sometimes, brands stretch too far. Cadbury, the premium U.K. chocolate brand, introduced Smash, a line of instant potatoes, and invested significant dollars to achieve reasonable success, but the effort lowered quality perceptions of the flagship product line.

Other questions to ask as you start the innovation process include, ‘What gaps can my brand fill?’ Gap analyses map trends against current offerings. 

Sweet Chews, a recent innovation from Smart Sweets, recognized consumer desire for low-sugar options and interest in plant-based foods.

For start-ups, fully understanding your brand’s reason for being—your point of difference, and who you want to connect with your brand—are essential steps in the innovation process. Your answers will affect the flavour palette you can use. Defining success will also guide your efforts. If you’re selling principally online to a small audience with specific needs, reaching success will have different metrics than a national brand striving to gain one to two per cent market share.

With your brand guardrails defined, you can move to Step 2.

You may want to experiment with novel flavours like lemon and grape. Photo © MaskaRad / Adobe Stock

Step 2: Assess the candy landscape

In-market research will provide invaluable insights to guide your innovation journey. During your shopping trips, review what your competitors are doing with innovation in flavour and format.

Look along the candy aisle to see if you notice any patterns in new product development. Are new products featuring more melon or citrus profiles? Do you see global inspirations like yuzu or lychee? 

Begin identifying the themes underlying the innovations. Are brands trying to deliver excitement, indulgence, or nostalgia through flavour?

Pay close attention to look and feel. Do you notice any new packaging formats that are getting more activity? Beyond the more readily available reduced sugar claims, what types of functionalities are emerging? Do you see candy with caffeine, antioxidants, or vitamins added? As you evaluate the trends, consider which will align with your brand guardrails.

Be sure to try new candies! Does the flavour experience deliver on the promise of the brand and the packaging callouts? Sampling is often a great way to learn what not to do. 

As you do your research, continue to think about ways your brand can stand out. If you learn about a new flavour combination generating news, can you ‘fast follow’ with a similar profile? Or, if the profile is getting buzz because it’s exciting, can you create a combination that’s equally or more exciting?

Crossover flavours are happening across the food and beverage landscape. Sugar confectionery offers a versatile platform for borrowing flavours from other categories. If you have time, visit your local bakery, a juice bar, or a trendy coffee shop to see if you can find flavour inspiration. Think about recent cocktails or mocktails you enjoyed, too.

If time and budget allow, talk to your brand buyers. If you’re just starting, speak with candy buyers. Listening to people talk about their experiences provides a first-person viewpoint that can drive your innovation process.

If shopping and qualitative research aren’t possible, resources are available to give you insights into new product activity. Companies like Mintel or Innova track new product launches across categories and countries. By evaluating product descriptions and viewing packaging, you’ll get a glimpse of flavour profiles and clues about the experience they’re trying to deliver. You can also aggregate launch data to check out flavour trends. Figure 1 shows the top flavours launched in sugar confectionery across North America over the past 52 weeks. A few novel flavours introduced last year are ones to watch.

Figure 1: Top candy flavours in North America. Data © FlavorSum

Step 3: Plot your innovation path

With established guardrails and preliminary opportunity areas in place, it’s time to formalize your path to new product development. You can begin by collaborating with your team or trusted ingredient suppliers to brainstorm flavour ideas. Then, prioritize your concepts to align with your company’s production, brand, and financial goals.

While your ideas reflect the market and consumer insights, plan to get feedback on your concepts. You can have additional conversations with small groups of candy consumers or invest in quantitative research with larger groups of people to gauge their interest in your ideas. Social listening platforms, like Tastewise IO, offer additional insights into whether your new flavours or formats will generate excitement and conversation.

Now, it’s time to draft your formulas, establish relationships with ingredient suppliers, and create benchtop samples to taste.

Step 4: Formulate benchtop samples

As you formulate, use your brand guardrails and budget to guide your base formula and label claims. Before creating your benchtop samples, key components to consider are your sweetener, flavour, and colour systems. Further, determine if you’ll use HFCS, non-nutritive sweeteners like erythritol, or cane sugar.

How important are natural flavours to your customers? Will your flavour systems deliver results with your manufacturing process? Does your budget or desired flavour profile require a natural-and-artificial (N&A) solution?

If you’re striving to create a reduced-sugar candy, do you need to explore flavour modulators that improve the taste experience?

Are your brand buyers open to FD&C colours, or do you want natural options? Will natural colours deliver the visual impact people expect? If you have the budget and time, consider letting people taste your samples to optimize your formula.

Step 5: Map your launch plan

It’s time to get ready to launch your new candy idea. The commercialization process involves:

• ordering ingredients and packaging;
• confirming your label meets regulatory guidelines;
• setting production and ship dates;
• evaluating quality after product scale-up; and
• generating some buzz through marketing campaigns or social media outreach.
• After your candy launches, remember to check in with retail partners or your customers to get feedback and see if you need to adjust the formula.

Launching your next candy flavour is easier with an innovation process framed with insights and expertise. Check out FlavorSum’s Innovation Journey Guide at https://discover.flavorsum.com/innovation-journey-0-0. 

Lisa Jackson is director of marketing at FlavorSum.

This article was originally published in the June/July 2023 issue of Food in Canada.

CEO Peter Feld said, “Our mission is to be the heart and the engine for the global cocoa and chocolate industry. We have delivered robust growth for nearly 25 years. Due to evolving customer demands for more sustainable and innovative products, now is the time to bring the group to the next level by strategically investing in its future. We will move decision-making closer to our markets and customers while fostering simplicity and digitization to advance our well-recognized innovation and sustainability approach to deliver additional value for all our stakeholders.”

The program includes a net investment of CHF 500 million in areas most relevant to customers, such as innovation, service, sustainability, and quality powered by digital platforms that boost speed to market and facilitate deeper partnerships with customers. BC Next Level will be funded from existing financial resources.

Barry Callebaut will increase its regional footprint from three to five regional divisions – Western Europe, Central & Eastern Europe, North America, Latin America, and Asia Pacific Middle East & Africa – each encompassing five to six country clusters. This also includes the creation of Barry Callebaut’s new Customer Supply & Development organization to enhance product delivery and scale innovation faster globally, while delivering technical service locally to customers.

Barry Callebaut will also create new global responsibilities within the enabling functions of finance, HR, and technology to improve processes. The executive committee will be reduced to six from the current nine members. New members will be:

• Peter Vanneste, joining on November 1, 2023, as CFO;
• Jutta Suchanek, joining on October 1, 2023, as chief people and diversity officer; and
• Dr. Clemens Woehrle, joining on October 1, 2023, as chief customer supply and development officer.

Steve Woolley, president & CEO Americas, has decided to pursue new endeavours outside of Barry Callebaut.

Pursuant to the terms of the agreement, the facility will be sold to Hershey Canada for approximately $53 million.

“We are pleased to have reached an agreement with Hershey on this important sale. This is the latest milestone in our focused effort to reduce costs and further enhance our balance sheet,” said David Klein, CEO Canopy Growth.

“Our intent to purchase the Hershey Drive property in Smiths Falls is another example of the strategic investments we’re making in our supply chain network and our Canadian operations to support growth,” said Jason Reiman, chief supply chain officer, the Hershey Company.

Upon the completion of the transaction, Canopy Growth will have sold seven properties for an aggregate gross amount of approximately $155 million since April 1, 2023. Net proceeds received from the sale of the facility will be used primarily to pay down the company’s senior secured credit facility.

The sale of the facility follows the centralization of post-harvest manufacturing at the company’s former beverage facility in Smiths Falls, as well as the consolidation of all flower cultivation in the company’s purpose-built sites in Kincardine, Ont., and Kelowna, B.C.

Using an enzymatic process, it reduces intrinsic sugar in ingredients such as malt, milk, and fruit juices by up to 30 per cent. The sugar-reduced ingredients are then used in recipes for various products. There is no need to add sweeteners or bulking agents to replace the volume of the eliminated sugar.

Stefan Palzer, Nestle’s CTO, says, “Sugar reduction across our portfolio remains a top priority. This new technology is a true breakthrough, as we can reduce sugar without adding sweeteners while preserving a great taste, all at a minimal cost increase. In addition, our scientists discovered that the sugar reduction generates prebiotic fibres that support the microbiome, which is an additional benefit. We are now accelerating the global roll-out across formats and categories.”

The sugar reduction was first piloted in cocoa and malt-based ready-to-drink beverages in Southeast Asia and over the past year, Nestle has introduced it in factory lines for cocoa and malt-based powdered beverages such as Milo across several countries across Asia, Africa, and Latin America. Since 2021, the sugar reduction technology has been applied to over 200,000 tons of cocoa and malt-based beverages. The roll-out continues, and other product categories such as dairy powders will follow.

This proposed transaction follows Theo’s decision to restructure its operations, which will result in the closing of its Seattle manufacturing and reductions in office staff.

As part of ALC, Theo would join their portfolio of organic and better-for-you brands, including Torie & Howard and Zing Bar.

“Like other businesses, we are contending with rising costs across all aspects of our manufacturing and supply chain, requiring us to change. We’ve had to make some tough but necessary decisions to ensure the company’s long-term viability,” said Etienne Patout, CEO of Theo Chocolate.

Approximately 60 Theo employees will be affected by the restructure.

The operational changes are in process and the proposed transaction is expected to close in the third quarter of 2023.

Cibus Tec 2023 will be held at Fiere di Parma in Parma, Italy, from October 24 to 27, 2023. For over 80 years, Cibus Tec has been one of the leading Italian trade shows for food processing equipment and technology, bringing together food industry professionals from around the world.

Parma is the capital of the Italian food and foodtech valley, and home to some of the leading European food and technology companies as well as to the European Food Safety Authority (EFSA). More than 60 per cent of Italian bakery, confectionery and snack industries are located within a 200 km radius from Parma.

Cibus Tec is held every three years, most recently in 2019, which included over 100 countries, 500 innovations shown across the floor, 1200 suppliers, and 3000 buyers.

The trip will offer food and beverage buyers an exclusive business experience in Cibus Tec and Parma.

At the show, visitors will be able to check out innovations in different segments, such as packaging, logistics, bottling and filling, coding, marking and labelling, end of line, handling and traceability, components, automation, digital, robot and control, energy efficiency, environmental technologies and hygiene, ingredient analysis and laboratory equipment.

Target groups of visitors include the food industry as a whole, as well as the C-suite in fruit and vegetables, dairy, meat, ready-to-eat meals, pasta, cereals, bakery, ice-cream and dessert, coffee and portioned meals, chocolate and snacks, liquid food and importers/distributors.

The Italian Trade Commission will cover the following expenses:

• Economy-class return flight
• 4-night accommodation in hotel in Parma with breakfast (October 23 – October 27, 2023)
• Lunches at VIP lounge at the show
• VIP pass for the show
• Transfers from/to airports and daily transfers to the trade show venue
• Access to B2B platform and personalized B2B meetings agenda

The trip to Cibus Tec 2023 is scheduled as follows:
October 23: Arrival in Bologna, Italy, and transfer to Parma
October 24 – 26: Visit to Cibus Tec show and B2B meetings with Italian technology companies
October 27: Transfer to the Bologna airport and departure for Canada

To be considered for the delegation, buyers must complete the online questionnaire by July 20, 2023.

For additional information, check out the Cibus Tec 2023 Trade Show guide and the Cibus Tec 2023 Preliminary exhibitors directory.

The agreement makes Puratos one of the largest chocolate producers in the country and the “only domestic manufacturer of ingredients for bakery, patisserie and chocolate.” Besides expanding the company’s market presence, the combined business will introduce a range of health and well-being-focused ingredients that cater to evolving consumer preferences.

“This acquisition is a moment of great pride for all of us,” said Michael Simone, president at Puratos Canada. “Our strategic fit brings together two highly talented, passionate teams to fuel innovation and propel the industry forward by delivering outstanding products and customer experience.”

Confectionery is often given as a gift or to celebrate special occasions, thus requiring premiumization. Product differentiation can be achieved through unique container shapes, designs and textures, as well as the use of attractive graphics.

Packaging design and materials are evolving to reflect the changing consumer demands for wellness and healthy lifestyles. Smaller portions are being offered to cater to consumers who want to indulge in moderation, and the packaging emphasizes using ingredients that are ‘clean’, natural, organic, and fair-trade.

With greater awareness of the impacts of plastic packaging waste on wildlife and the environment, it is not surprising the top trend for confectionery is sustainable packaging. Consumers are looking for eco-friendly packaging, and brand owners are responding. Alternative to traditional petroleum-based plastics is compostable/biodegradable and plant-based plastics. Also, the use of recyclable material and the integration of recycled content is increasing. Packaging reduction or light weighting are other means of reducing waste. Reusable and refillable packaging options are increasingly being offered as well.

Sustainability goals

Many large confectionery companies have set sustainability goals for their packaging. One of Nestle’s sustainability goals is to have 95 per cent of its packaging designed for recycling and reduce virgin plastic use by one-third by 2025. For example, Nestle UK has changed the foil wrappers for their Quality Street candy line to recyclable paper wrappers. Kit Kat packaging in Japan has replaced plastic wrap with sustainable matte paper that can also be made into origami. The Smarties brand now uses recyclable paper.

Mars also aims to contribute to a circular economy. They have replaced virgin plastic with a mix of recycled plastic in their Kind snack bar packaging.

Mondelez is driving toward net zero waste packaging with initiatives like reducing the box volume of Napolitain biscuits, removing hard-to-recycle PVC plastic windows from Cadbury Favourites boxes, and introducing a cardboard-only pack format for Cadbury Easter Inclusion Shell.

One must consider the implication of material and design changes to packaging. Does the new material have the same handling properties, heat seal properties, moisture, and oxygen barrier? Intensive work is put into the development of new materials and coatings. In some cases, changes in printing and the adaption of existing packaging equipment may be required. Product safety and quality are paramount. To this end, extensive prototype testing is performed along with evaluation throughout the supply chain. The product’s package integrity and shelf life must be evaluated to reflect real-life scenarios such as transportation and warehousing in various environments and retail and consumer handling.

Innovations

The increasing demand for sustainable, eco-friendly packaging materials and innovative packaging designs will drive the future of confectionery packaging. Brands will continue to develop new packaging materials that are biodegradable, compostable, or plant-based while exploring new packaging formats that can be recycled or reused.

Edible packaging is one potential innovation area for consumable wrapping or coatings around confectionery. It eliminates package waste and could provide additional functionality such as antimicrobials, vitamins, antioxidants, and nutrients. Incorporating nanotechnology into edible packaging could enhance its functionality. Smart packaging is another innovation area, which can provide real-time information about the product’s freshness, safety, and quality. This could include technologies such as RFID tags, QR codes, or NFC chips that allow consumers to track the product’s journey from farm to table.

By incorporating sustainable packaging, companies can meet changing consumer demands as well as contribute to a healthier planet.  

Carol Zweep is food consulting manager for NSF. Contact her at czweep@nsf.org.

The inaugural conference, Innovation and Sustainability for the Food and Hospitality Industry, will provide an opportunity to preview trends and address future food and beverage challenges.

Approximately 2500 brands from 46 countries will attend; among the most represented are, in order, Spain, Greece, the Netherlands, Romania, and Germany. First-time exhibitors from Saudi Arabia, Faroe Islands, South Africa, Swedenwill be present.

Exhibitors will meet about 800 profiled buyers from 86 countries, selected by Fiera Milano with the support of ICE Agency, 29 per cent coming from Europe, including Italy; 32 per cent from the Americas; 18 per cent from Asia and CIS countries; 18 per cent from the Middle East and Africa; and 3 per cent from Oceania. The largest delegations are registered, in particular, from the United States and Canada, the United Arab Emirates, China, Australia, India, and France. They include international corporations such as 7Eleven, Bravo Supermarket (Azerbaijan), Carrefour, Citysuper (Hong Kong), Eataly USA, Emirates Flight Catering, Picard, Rewe, The Kroger (USA).

New to the exhibition setup, The Green Trail: a pathway identified by a specific visual identity and dedicated signage, which will help people discover green, plant-based, net zero, as well as healthy, rich-in and free-from products through all areas of the event and at the booths of all exhibitors, facilitating healthier, sustainable and responsible food choices. The most active countries in these segments include Estonia, France, Germany, Ireland and the Netherlands.

TuttoFood is now accredited both in Italy and abroad as the landmark for professionals in the sector thanks to the concept that brings together major brands and top businesses in seven halls that highlight in the three macro areas of fresh, dry, frozen and seafood, the supply chain affinities of the vertical sectors.

More than 150 events, including exhibitors’ appointments and meetings organized by TuttoFood. Among the latter is Retail Plaza, the format that analyzes changes in modern retailing by matching companies with industry experts. Evolution Plaza is the area that the event dedicates to innovation not only in technology but also in its social-economic aspects, such as the new format Confessions at the Table, directly. Finally, the Better Future Award, in collaboration with Gdoweek and MarkUP, returns for the second year.

Photo: TuttoFood.

“We are delighted that Peter Feld, a seasoned leader with over 30 years’ experience at top global consumer goods and services companies, is joining Barry Callebaut. His track record with international brands is exceptional. In addition, he has many years of experience in the food industry. This unique combination makes him the ideal person to further develop Barry Callebaut successfully with a focus on sustainable growth,” said Patrick De Maeseneire, chair of the board of directors.

Feld, previously CEO of Jacobs Holding, has leadership experience in companies on almost every continent. He headed GfK, one of the world’s leading market research companies, and WMF Group, a premium cookware and professional automatic coffee machine maker for private and professional customers. Additionally, he gained decades of experience in leading positions in the consumer goods industry, namely at Procter & Gamble, Johnson & Johnson and Beiersdorf. As former vice-president of the German Brands Association, he has also played a key role in driving forward the topic of sustainable development for the industry. Feld holds a master’s degree in mechanical engineering from RWTH Aachen.

“It is a great honour to assume responsibility as CEO of Barry Callebaut. Chocolate is a life-long passion, even more so as I started my career in the food industry. I am very much looking forward to bringing my leadership experience to Barry Callebaut and am excited about writing the next chapter of our success story together with the entire team,” said Feld.