The Canadian Institute of Food Science and Technology (CIFST)’s 2024 CIFST Interface featured presentations from industry experts on the cocoa market, fermentation, risk management, sugar reduction and FOP labelling. The event was organized on Nov. 12, 2024, at The International Centre in Mississauga.
Len Monheit from the Global Prebiotic Association presented on prebiotics and synbiotics and the latest developments in that market. Marly Sumayong from Brenntag Nutrition explored innovation with clean-label chickpea protein. Rodrigo Vasconcelos of Bunge Canada talked about edible oils and bakery shortening.
Risk management – What’s your plan?
Rick S. Steinke, Canadian grain manager, ADM Milling Company, suggested that one should let the market control when creating a procurement plan. “Opportunity comes dressed in overalls and looks a lot like work. So, you do have to take a little time at the onset and go, let the market just control. You have a plan and execute it,” he said. He further advised that when building a budget, the starting point should be current market conditions. He used the example of a budget that was previously $100 million but notes that if a key commodity in that budget had doubled in price, “you better reset it.” Steinke said that while one can’t control market volatility, one can make decisions relative to one’s budget based on one’s tolerance for risk. These small or large decisions help mitigate risk and achieve procurement goals. He further emphasized the importance of monitoring, measuring, and reacting to market changes, as well as reflecting on the successes and failures of the procurement plan to learn for the future.
The cocoa market
Hugo Van Der Goes, VP cocoa North America, Barry Callebaut, gave a presentation on the current state of the cocoa market. He started by reviewing the cocoa market from the previous year, noting that “people were not handing out chocolate, [and] little sugar candy” during Halloween of the previous year. He pointed to this as an early indicator of the elevated prices that were to follow. He stated, “You should cover all the ingredients because the price is really going to drive everything.”
While talking about the supply of cocoa beans, he noted that supply of the beans is currently very low, with “inventory levels very low, and the same is true for the products on the specification.” He explained that the low supply is due to several factors, including the previous year’s poor harvest in West Africa, ongoing drought in the region, and the fact that many cocoa farmers have already sold their crops for the year. Goes mentioned that the low supply of beans has led to high prices, which have “sparked since last November.” He shared that the price reached a high of “almost $1,000 at the end of April, and right now, we are kind of around $7,000 a day.”
Goes said that demand has been “resilient so far” despite the high prices. He pointed to data that shows that grindings, a measure of how much cocoa is being processed, have only declined slightly. ”Demand has not fallen off,” he added.
Goes concluded his presentation by sharing his outlook for the cocoa market. He mentioned that prices will remain elevated in the near term, but they will eventually come down as supply increases. He encouraged buyers to take advantage of the current inverted market, where cocoa prices delivered in the second half of next year are lower than cocoa prices delivered in the near term.
How to perform sugar reduction with natural sweeteners
Hank Wang, technical director, Howtian, began his presentation by noting the growing trend of new product launches with natural, non-nutritive sweeteners, particularly stevia and monk fruit, which are the most consumer-accepted options. Wang discussed the cost comparison of various sweeteners, highlighting that while high-potency artificial sweeteners offer significant cost savings over sugar, natural sweeteners like monk fruit and stevia can be more expensive. He recommended a 50 per cent sugar reduction as a starting point, as it maintains upfront sweetness while leveraging the benefits of stevia and monk fruit.
Wang then focused on the properties and application of stevia, explaining its sweetness curve and potential bitterness at higher use levels. He recommended using Reb A up to the point where bitterness becomes noticeable and then supplementing with other high-purity glycosides like Reb D or Reb M for a cleaner taste. He further explained that the evolution of stevia has progressed from stevioside to Reb A and now towards Reb D and Reb M, which offer better taste profiles. However, there are ongoing efforts to reduce the cost of Reb D and Reb M to make them more accessible.
Next, Wang discussed monk fruit, emphasizing its clean label appeal and stability. He recommended using monk fruit with a Mogroside V content of 40-50 per cent for optimal value and taste. He advised against using monk fruit alone due to cost considerations, suggesting instead to use it in conjunction with stevia to enhance sweetness. Wang also touched upon erythritol, a sugar alcohol often used in combination with stevia and monk fruit. While erythritol provides upfront sweetness, it is more expensive to produce than artificial sweeteners.
New regulations on FOP nutrition symbol
This presentation, given by Cassandra Rouleau, activation marketing manager, and Luisa Pensato, senior manager of regulatory affairs Canada, Kerry, focused on new regulations for front-of-pack (FOP) nutrition symbols in Canada and how consumers are likely to react to them.
They explained that these regulations, which come into force in 2026, require most pre-packaged food products containing high levels of sugar, saturated fat, and sodium to display a warning label. The threshold is “greater than or equal to 15 per cent of the daily value for sodium, sugar and saturated fats.”
The two further discussed Kerry’s research on Canadian consumer sentiment towards FOP labelling, noting that Canadians are positive about the new symbol and believe the new label will be useful in their decision-making. The presenters explained that consumers are equally concerned with sugar, sodium, and saturated fat in their food; however, sugar is more concerning overall, at 24 per cent.
The presentation concludes by looking at how food manufacturers might respond to these new regulations. One thing they will need to consider is pricing, as 63 per cent of Canadian consumers are unwilling to accept price increases. As a result, finding ways to reformulate their products to make them healthier without increasing prices will be necessary. Some strategies that companies might consider include reformulating their existing products to make them healthier, creating new sub-brands to offer healthier options, and encouraging consumers to try products that are less sweet or salty.
Fermentation: Past, present and future
Hamed Zahedi, regulatory affairs manager, Giraffe Foods, explored the world of fermentation, spanning its historical roots, scientific principles, applications, and regulatory aspects. Zahedi’s definition of fermentation is “converting sugar capacity,” which stresses the metabolic transformation of sugars by micro-organisms as the foundation of this process. He highlighted the significance of this ancient biotechnology by highlighting its historical roots, saying, “This technique is very important. Is coming from about 90,000 years ago.” Archaeological evidence points to cheesemaking as early as 700,000 BCE and winemaking around 6000 BC, illustrating the “human fascination with harnessing microbial power” to transform food.
Beyond its historical role, fermentation offers a multifaceted approach to food processing, addressing preservation, flavour, health, and sustainability. Zahedi explained how fermentation preserves food through acidification, primarily by lactic acid, creating an environment hostile to spoilage micro-organisms. He said that this natural preservation method aligns with growing consumer demand for minimally processed foods. He added that fermentation elevates the sensory experience of food, “making food more delicious” through a symphony of flavour-enhancing processes. The breakdown of complex molecules like carbohydrates and proteins generates smaller, flavourful compounds, contributing to the characteristic taste profiles of fermented products.
The presentation also touched upon the health benefits associated with fermented foods, ranging from improved digestion to enhanced nutrient availability and detoxification. For instance, fermentation can break down lactose in dairy products, making them accessible to lactose-intolerant individuals. It can also neutralize anti-nutrients like phytic acid in soybeans, enhancing mineral absorption. Moreover, Zahedi emphasized the role of fermented foods in promoting gut health. Introducing beneficial micro-organisms to the gut through fermented foods supports a diverse microbiome, which is increasingly recognized for its influence on immune function and overall well-being.
Zahedi concluded his presentation by addressing the regulatory landscape surrounding fermentation, particularly for novel food ingredients. He provides an overview of the pre-market authorization process, highlighting the importance of safety assessments and adherence to regulations for new products derived from fermentation.
Source: www.foodincanada.com