SUSTAINABILITY
Major Food and Beverage Brands Make Significant Investment in Sustainable Product Development
New commitments, partnerships, package design and R&D facilities indicate long-term shift toward sustainability in the food and beverage industry
Sustainability continues to drive evolution across global industry. As an example, the Biden administration recently proposed new automobile pollution limits that would require at least 54% of new vehicles sold in the US to be electric by 2030 and as many as two of every three by 2032. In the food and beverage industry, new research shows that sustainability-marketed products continue to grow in the face of high inflation.
According to research from NYU Stern Center for Sustainable Business and Circana, sustainability-marketed products outperformed conventionally marketed products across 36 categories and grew +0.3 points to 17.3% of purchases. In addition, sustainability marketed products’ five-year compound annual growth rate (CAGR) sits at 9.48%, outpacing its conventional counterpart at 4.98% for the same period.
Here is a look at specific developments in the food and beverage industry that feature sustainability strategies.
Frito-Lay, Quaker open Greenhouse Learning Center to fast-track sustainable packaging innovation
The R&D packaging team will use the Greenhouse Learning Center to test the biodegradation properties of compostable packages
Frito-Lay and Quaker announced the opening of an industry-leading Greenhouse Learning Center at its R&D headquarters. The Learning Center will be used to field test, measure, and analyze compostable packaging with an aim to speed up the rate of innovation. This facility represents a key milestone to achieve the company's PepsiCo Positive (pep+) packaging goal to design 100 percent of packaging to be recyclable, compostable, biodegradable or reusable by 2025.
"Our sustainable packaging vision is to build a world where packaging need never becomes waste," said Denise Lefebvre, senior vice president of R&D for PepsiCo. "We're actively changing our own compostable snack packaging technologies. By sharing these technologies, we're inviting the industry to make these changes as well. We are prioritizing, investing in and expediting projects to build a more circular, inclusive economy."
The R&D packaging team will use the Greenhouse Learning Center to test the biodegradation properties of compostable packages in different environments to accelerate learnings, validate lab results through simultaneous, real-time experiments as packaging formulations are improved and iterate packaging solutions quicker
General Mills advances regenerative agriculture commitment through new strategic partnerships
Strategic partnerships with American Farmland Trust and Rodale Institute will accelerate regenerative agriculture techniques across key regions
As part of General Mills’ commitment to advance regenerative agriculture, the company shared several new initiatives across its brands and through consumer-facing efforts that aim to protect the planet and support farmers. Strategic partnerships with American Farmland Trust and Rodale Institute will accelerate regenerative agriculture techniques across key regions in California and the Northern Great Plains.
“As a global food company rooted in agriculture, we’re dependent on natural resources, like organic wheat for our Annie’s macaroni and cheese and almonds for our LÄRABAR products, among others,” said Jon Nudi, group president, North America retail at General Mills. “We’re focused on regenerating our planet and protecting the food supply for future generations. By partnering with organizations like Rodale Institute and American Farmland Trust, General Mills and its brands further our commitment to regenerative farming and standing for good.”
Beverage alcohol retailers place strategic bets on sustainably focused emerging brands
Global retailers are showing interest in beverage brands who champion sustainability
Research conducted via The IWSR indicates that 48% of US based beverage alcohol drinkers' purchasing habits are positively influenced by a company's sustainability or environmental initiatives.
GlobalData, in its recent webinar entitled, "Top Trends in Alcoholic Beverages 2023" also reported consumer purchasing being driven by both health and affordability.
Plant Botanical, a certified female-founded sustainable beverage company, hit the ground running in 2023. Having been in market officially for less than 18 months, the company has seen momentum and success to-date across various facets of the business, with a notable amount of the company's success being driven by initial retail growth.
Hormel Foods Brands showcases innovation, sustainability efforts
The Justin's and Applegate brand teams highlighted the latest innovations and new products at Natural Products Expo West
Through its robust 20 By 30 Challenge goals, Hormel Foods and its brands have several initiatives in place to address sustainability and corporate citizenship in the food industry, including:
- Investments and implementation in sustainable agricultural production, specifically within regenerative agriculture, soil health and farmer equity.
- Continue our clean-label initiative and efforts to reduce added sugars and sodium in our products, and increase desirable ingredients to nourish a diverse population.
- Match 100% of energy use with renewable sourcing.
- Focus on packaging sustainability efforts through research, innovation, on-package communications and optimizing package weight and shipping efficiencies.
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