Innovations in Functional Foods and Beverages

Consumer Brand and Innovation Leaders, Earlier this week I attended Chicago Innovation's Taste of Innovation. In addition to sampling delicious eats from Chicago restauranteurs and brands, I heard from a diverse panel of chef's and Food biz experts on where the industry is headed. 🔮 But it wasn't a rehashing of food trends we all know about. I found it helpful to hear reframes of the dynamics/trends we've already been watching. 🌟 𝗚𝗟𝗣-𝟭'𝘀: There's broad industry agreement they're here to stay, so how can CPGs adapt, beyond creating "GLP-friendly" products? I was intrigued by one panelist's perspective that these drugs represent the merging of food and healthcare: "Personalized, performance based eating" (paraphrased). Ways menus and brands can adapt: ➡️ Prioritizing nutrient-dense ingredients/foods ➡️ More focus on small plates/mini meals ➡️Treating nutritionists as the HCPs they are in making medical decisions ➡️ Educating on the importance of maintaining muscle mass 🌟𝗔𝗹𝗰𝗼𝗵𝗼𝗹-𝗙𝗿𝗲𝗲: yes, it's a huge and enduring trend, but social drinking remains a prevalent behavior, especially among consumers <40. The need for on-premise and CPG alcohol innovation isn't going away. ➡️IMHO, a positive byproduct of the Mocktail trend is we can now look at Cocktails as if not "healthy", carriers for real fruits, herbs, interesting spices, etc. which bring a health halo. ➡️We've already seen innovation from both big Bev alc companies entering No ABV, and CPG drink companies entering DIY cocktails/mocktails. But there's still a TON of upside across many CPG categories, from pack formats to flavor profiles to collaborations. FUN stuff. 🌟𝗔𝗜 𝗮𝗻𝗱 𝗣𝗲𝗿𝘀𝗼𝗻𝗮𝗹𝗶𝘇𝗲𝗱 𝗗𝗶𝗲𝘁𝘀: As wearable trackers/diagnostics (Oura rings, glucose monitors etc) and microbiome testing become more prevalent, CPG /foodservice leaders can paint themselves as "functional chefs," harnessing data to address individual customer needs. ➡️We know food is medicine, so how can it be positioned to boost individual performance in whatever context that might be? Think focus at work, endurance for athletics, or even creativity for the arts or recreation. 🌟𝗙𝗼𝗼𝗱 𝗪𝗮𝘀𝘁𝗲 𝗮𝗻𝗱 𝗘𝗮𝘁𝗶𝗻𝗴 𝗟𝗼𝗰𝗮𝗹: It's no secret that restaurants, retailers and food companies face food waste challenges, but it was eye-opening to learn that ~30% of waste happens upstream in the food system--pre-consumer. Ways to offset this: ➡️Understanding food sources and buying local (less transport = less waste) ➡️Smaller menus curated with seasonal offerings and specialties featuring regionally/locally accessible ingredients. There's a reason Natural Grocery is faring better than Mainstream Grocery in our Tariff-ridden times! ➡️Shopping: make more frequent trips to smaller footprint stores with stronger fresh assortments vs huge stock-up trips that increase likelihood of waste What do you think? I'd love to hear your thoughts and builds! #foodindustry #insights #trends

Fermented foods have been a staple of human cuisine since ancient times, and among the world’s most celebrated are cheese, wine, and beer—the “world's three major fermented foods.” Japan, too, is renowned as a treasure trove of fermented delicacies, with its rich culinary heritage featuring natto (fermented soybeans), regional pickles, kusaya (from Tokyo), and funazushi (fermented sushi from Shiga Prefecture), not to mention miso and soy sauce. Japan’s warm and humid climate creates ideal conditions for fermentation. While such an environment can promote the growth of harmful molds, it also favors the propagation of beneficial, non-toxic molds like koji. By selectively cultivating these useful molds, Japan has perfected the production of a wide variety of fermented foods, earning its reputation as one of the world’s foremost centers for fermentation. A striking example of Japan’s innovative spirit in this domain is Fermecutes Inc., based in Tsuruoka City. In collaboration with my alma mater Keio University and Tsuruoka National College of Technology, Fermecutes is pioneering the development of “Bacillus natto powder.” This primary processed food leverages Bacillus natto for its high protein content, rapid growth rate, and efficient conversion of byproducts. They are also using this ingredient to create secondary processed foods such as noodles and bread under the brand name KinPun—a play on “enzyme powder” that rhymes with gold powder. According to Fermecutes, “Increasing food production and producing protein in a way that has less impact on the earth is necessary now and in the future. The reason for creating KinPun, and its distinctive quality, is to use ‘enzyme bacteria’ as a protein source—a role these bacteria have long played in our food systems. Our goal is to establish a new protein that has never been realized before, and to foster a sustainable and delicious food culture by putting bacteria to practical use as a protein.” While many foreigners find natto an acquired taste—and its popularity even within Japan varies geographically—the undeniable health benefits of natto suggest that its transformative potential extends beyond traditional consumption. If Bacillus natto powder can help meet the global demand for sustainable, plant-based proteins with minimal environmental impact, it could revolutionize the world’s nutritional landscape. Fermecutes is redefining food by integrating high-quality protein with a reduced ecological footprint into everyday staples like bread and noodles. I’m excited to see how this startup will contribute to a sustainable future in food production using natto. https://fermecutes.com/

Functional Ingredients Just Created a $117 Billion Opportunity in CPG. Lion's mane in your chocolate. Ashwagandha in your cookies. Nootropics in your granola bars. The line between food and wellness has completely blurred, and the smartest CPG brands are capitalizing on consumers willing to pay premium prices for products that do more than just taste good. This isn't just another health trend - it's a fundamental shift in what consumers expect from everyday products. What makes this trend significant: →Today's consumers are seeking products that multitask. They want their everyday purchases to contribute to specific wellness goals →78% of consumers now actively seek foods with additional nutritional benefits beyond basic sustenance →The functional ingredients market is projected to reach $117 billion by 2027, growing at 6.8% CAGR Brands leading the functional ingredients revolution. Established Innovators: Magic Spoon: Reimagining cereal with functional proteins and zero-sugar formulations Purely Elizabeth: Ancient grain granolas enhanced with probiotics and functional botanicals GOODLES: Nutrient-packed mac and cheese with prebiotic fiber and 21 nutrients from vegetables Ritual: Transparent multivitamins with traceable functional ingredients and clear benefits Emerging Stars: Mid-Day Squares: Functional chocolate bars with adaptogens that serve as meal replacements Snow Days - Their grain-free pizza bites incorporate functional ingredients like apple cider vinegar for gut health while maintaining the convenience food angle Otherworld: Functional pancake mixes packed with performance-enhancing adaptogens Toodaloo Superfoods: Trail mix featuring specific functional mushrooms for targeted wellness benefits Brands to Watch: Fx Chocolate: Functional chocolate squares for targeted benefits like sleep and immunity Mindright: Snack bars containing nootropics for cognitive performance Chasin' Dreams Farm: Mini-cookies infused with adaptogens and superfoods Topicals - This skincare brand focuses on using functional ingredients with clinical validation for addressing specific skin concerns, maintaining the personal care category representation The functional ingredients gold rush is here, and brands that merely sprinkle trendy additives into existing products will be left behind. The real winners are building their entire value proposition around targeted benefits backed by science, not marketing hype. In this high-stakes market, consumers will quickly separate the innovators from the imitators. #cpgtrends #consumergoods #WellnessTrends