Defining Natural

By Karen Weisberg

Early this fall, iconic ice-cream maker Ben & Jerrys agreed to remove the all natural" labeling from all of its ice-cream and frozen-yogurt products. The move was in direct reaction to issues raised by Michael Jacobson, Ph.D., executive director, Center for Science in the Public Interest (CSPI), Washington, D.C., who contended in a letter to Unilever (owner of the Ben & Jerrys brand), that using unnatural" ingredients, such as alkalized cocoa, corn syrup and partially hydrogenated soybean oil, and calling the resultant product natural," constitutes a false and misleading use of the term."

In Jacobsons view, FDA could do consumers and food manufacturers a great service by actually defining when the word natural can and cannot be used to characterize a given ingredient," notes April Fulton in a Sept. 27 National Public Radio piece outlining the Ben & Jerrys decision.

And back in 2006, CSPI threatened to sue Cadbury Schweppes over the 100% natural" claim it applied to 7Up because of the sodas use of high-fructose corn syrup (HFCS) as its sweetener of choice. The companys reaction? Drop the claim.

In such an apparently hostile climate, youd think manufacturers would be hesitant to attach natural" to their products. However, according to Chicago-based Mintels Global New Products Database, from 1998 to 2009, more than 10,000 shelf-stable natural" foods were launched.

FROM PERCEPTION TO REALITY

From the consumers perspective, natural is symbolictheyre seeking an ideal of natural that would mean that the food and beverages they buy are healthy, whole, real and minimally processed," says Shelley Balanko, Ph.D., vice president of ethnographic research, Hartman Group, Bellevue, WA. There are a variety of attributes that are necessary for naturalnothing artificial (e.g., colors, flavors, etc.), no preservatives, no additives or fillers, minimally processed, short (clean) ingredient line, recognizable (real) ingredients." In addition, she finds that consumers believe natural foods and beverages should also be healthylow in fat, sugar and salt, while high in ingredients with inherent healthfulness, such as fruits, vegetables, whole grains, etc."

A Sept. 2009 Mintel survey reveals that 59% of respondents believe food and beverages labeled as natural" must meet a government standard. However, from a federal perspective, the term natural" remains rather nebulous.

In the preamble to a 1993 rule on nutrient-content claims, the FDA defines natural as nothing artificial or syntheticincluding all color additives, regardless of sourcehas been included in, or has been added to, a food that would not normally be expected in the food," says Jennifer Guild, global food science and regulatory manager, D.D. Williamson Louisville, KY.

FDA clearly outlines colors exempt from certification (generally considered the natural colors; see Title 21 of the Code of Federal Regulations, Part 73). There are approximately 20 selected naturally derived food color additives exempt from certification," including, for example, annatto extract, dehydrated beets (beet powder), caramel, beta-carotene, etc.

Also, USDA has set some general rules for natural meats (no artificial ingredients or added color, only minimally" processed). Guild notes that minimal processing would include smoking, roasting, freezing, drying and fermenting. Relatively severe processese.g., solvent extraction, acid hydrolysis and chemical bleachingwould clearly be considered more than minimal processing."

Anything that deviates from the realm of ingredients found in consumers home kitchens causes concern, notes Balanko. For the consumer, the absence of pesticides, herbicides, growth hormones, genetically modified ingredients and antibiotics helps define natural foods.

From the consumer standpoint, theyre confused," says Steven French, managing partner, Natural Marketing Institute, Philadelphia. Some think natural foods contain no pesticides."

Balanko also notes that consumers arent paying a lot of attention to brands. In fact, Mintels Dec. 2009 report, Natural Products Marketplace Review: Shelf-Stable Foods-U.S.," cited a 38% growth from 2006 to 2009 for natural and organic foods, with much of this coming from private-label products, suggesting the sector could grow from $6 billion in 2009 to $7.5 billion by 2012.

Supermarket chains increasingly want restaurant-quality products created by outside manufacturers to sell via their own private label. Every retailer wants items to be proprietaryabout 98% of what we do is for private label, i.e., branding thats their own," says Steven Petusevsky, director of retail culinary innovation, Neco Foods, Lantana, FL. A lot of clients are looking for completely clean and natural. Others want the most-gentle shelf-life stabilizers within the natural realm, while theres also a level of people purely driven by shelf life."

THE WHOLLY GRAIL

In 1995, Petusevsky was executive chef at Unicorn Village, a pioneering natural and organic retail store in North Miami, FL, when Whole Foods Market bought it. He remained on staff at Whole Foods for seven years, and recently joined Neco, where he continues to refer to the Whole Foods Unacceptable Ingredients for Food" listall of the ingredients it deems to be outside the natural" realm. Its a list he helped compile, and one thats sacrosanct to product formulators from coast to coast; if a product contains anything on the list, Whole Foods will not sell it.

In fact, Mike Bunn, CDM, CFPP, director of production and research chef, Neco Foods, has a copy of the list prominently tacked up on his bulletin board to make sure any ingredient hes thinking of adding to extend product shelf life wont push a product out of the natural arena, as defined by Whole Foods. He often goes with an antimicrobial product naturally derived from fermented milk or dextrose, as well as another based on lauric acid, which is found in coconut oil and palm kernel oil.

Fermented" is a common term used in the realm of natural ingredients. Joe Leslie, national sales and marketing manager, Kikkoman Sales USA, Inc., San Francisco, highlights the natural, six-month-long fermentation process thats key to the production of his companys soy sauce. Typically, weve used the USDA definition of natural from the Food Standards and Labeling Policy Book," he says. Our soy sauce is fermented, and fermentation is defined as minimal processing, like smoking, roasting, etc. As long as we dont add a preservative, were natural.

So many food manufacturers are now interested in having natural, that about 80% of customers are purchasing our products without preservatives," continues Leslie. Plus, the vast majority of our new products in the last two or three years that were designing for the retail market are all natural without preservatives; we never added artificial colors or flavors."

A COLORFUL SITUATION

In 2007, researchers at the University of Southampton in England published results from a study that suggested a connected between ingestion of artificial colors and hyperactivity in children. The effects of this study, which has resulted in a new labeling regulation for the European Union requiring foods that contain any of six synthetic colorants to include that the color may have an adverse effect on activity and attention in children" on the label.

Theres some debate as to the merits of the study," says Campbell Barnum, vice president for branding and market development, D.D. Williamson. As a result of this newly required warning, large European food companies are now exploring naturally derived options in U.S. product formulations." (In the wake of the EU ruling, CSPI has petitioned the FDA for a ban on synthetic artificial color additives, so stay tuned...)

Barnum concedes that using synthetic colors is more economical, more stable and requires less dosage, but he sees manufacturers now performing more tests in case they decide to make a switch, and in new products we continue to see request for solutions that are naturally derived." Although he admits its more challenging to formulate with naturally derived colors, working with suppliers can help customers get the hue they need after communication on the processing and stability parameters for a customers specific food or beverage application." The company defines naturally derived color additives as those: derived from agricultural, biological or mineral sources; manufactured via a simple process; and having a long history of safe use.

SYMBOLIC PACKAGING

The choice of packaging can also influence the consumers ultimate perception of the natural" quality of product. For us, theres a focus on green and using less plastic," says John Cantwell, corporate chef, Neco Foods. Now were also looking at removable labelsnew here, but big in Europeutilizing less material for recycling purposes."

Balanko underscores the point that since natural" is largely symbolic in consumers minds, packaging elements that cue natural" can support the products authenticity and credibility, noting that too much plastic, as well as bright, shiny colors and cartoonish graphics, can erode the natural" perception. She adds that clear packaging, or windows, can help, and if paper is used it should be recyclable or look as though its made from recycled material. Simple, clean type fonts, as well as colors that come from nature, such as green, brown, and white, all add to the perception, she notes.

But although studies have shown that consumers are paying more attention to packaging, French notes that its not a top driver of purchasing decisions. Its all about taste, convenience and valuewith nutrition coming in fourth, and interest in sustainable packaging remaining toward the bottom of the priority list."

MARKET STRENGTH

In dollar and cents terms, in this tight economy, just what is the market potential for natural processed foods in the United States? Theres a return to natural with both mainstream and second-tier manufacturers now launching," says French, noting that the introduction of the natural category happened decades ago. Companies want to eliminate colors, flavors and other ingredients that are artificial. Weve seen activity in all sorts of food and beverage categories. Yes, the market potential is still relevant."

As the market for natural foods continues to grow, the ability to more-precisely determine its strength will become necessary. Currently, most market research still groups natural and organic foods together despite the fact that they display some notable differencesboth in regulation and perception by consumers. But an array of indicators points to continued activity in the category, and if federal regulators decide to join this discussion, growth could prove quite explosive.

New Yorkbased award-winning journalist Karen Weisberg has covered the issues of the food-and-beverage worldboth commercial and noncommercialfor more than 25 years.