In The News

The FUTURe IN FOOD

A Bi-Monthly Newsletter from Malabar Super Spice Co. Ltd. Jan/Feb 2016

With 2015 behind us, we can now look ahead at what the trends will be for the New Year. One thing is certain, consumers seeking food adventures for their taste buds is a trend that is here to stay. Innova Market Insights also notes that clean labelling is no longer merely a trend but has come to be regarded as an industry standard.

Global trends according to Innova Market WatchInnova Market Watch presented their top 10 global trends in food and beverage manufacturing, at the October 2015 ANUGA food fair in Germany. 1. Fromcleartocleanlabel:transparency2. Convenienceforfoodies:risinginterestinhomecooking3. Marketingtomillennials:growingmarketswithitsownchallenges4. Snacksrisetotheoccasion:quick,healthyandconvenient5. Goodfats,goodcarbs:no,theyarenotallbad.6. Moreinstoreforprotein:alternativehigh-qualityproteinsources7. New routes for fruits8. Freshlookatfrozen9. Privatelabelpower10. Rich,chewyandcrunchy:thesensoryexperience

For the full report visit; http://innovami.com/anuga2015_top10trends_summary.pdf

CheCk outour website! wwwmalabarsuperspice.comMalabar’s full catalogue is available online.

February1–3,2016

Effective Negotiation in the Agri-Food IndustryElmhurst Inn, Ingersollwww.agrifoodecon.ca

February21–23,2016

Annual Meat Conference co-sponsored by North American

Meat Institute (NAMI) and FoodMarketingInstitute(FMI).

Nashville, Tennesseewww.meatconference.com

February28–March1,2016

Restaurants Canada ShowEnercare Centre,Torontowww.restaurantshow.ca

May7–12,2016

IFFA 2016 – Meat Processing World Fair

Frankfurt,Germanywww.iffa.messefrankfurt.com

Upcoming Events

Cherkizovo Group is Russia’s largest producer of meat products, and they have recently announced an $85 million dollar investment in the construction of seven pig farms in Russia’s Penza Oblast. This project is expected to bein operation by 2017, and will produce 58,000 tonnes of pork a year. Source: www.Globalmeatnews.com Nov 18, 2015

FaDs, TReNDs & sTaTIsTIcs FOR 2016

continued on page 3

PRIce TReNDs Food Prices will rise through 2016… for fruits, vegetables, meats and spices!AccordingtotheGlobe&Mail(Dec9,2015),foodpricesareexpectedtoincreasebyasmuchas4%in2016. The low Canadian dollar is directly impacting the costs of all imported foods, including fruits and vegetables, and spices too! Analysts at the investment bankMorganStanleypredicttheexchangeratetofallto0.69overthenext12months.Notafarstretchconsidering the dollar is currently trading at 0.72 (Dec 21,2015).

The lower dollar will also push up prices for Canadian pork and beef. We will be competing with the strong US demand for Canadian meats due to the bargain price whenpaidforinUSdollars.For2016,meatpricesareexpectedtoincreasebyasmuchas4.5%.

The University of Guelph Food Institute forecasts the following 2016 food inflation rates.

Meat Trends – Meat production will continue to grow.HSBCForwardPlanning2016predictsthatmeatproductionwillgrowby17%overthenextdecade,withBrazil being a key supplier. Half of the predicted meat increase will be for chicken and it will be the world’s most consumed meat protein. By 2017, India will becometheworld’snumberoneexporterofbeef.(Source: www.Globalmeatnews.com Nov 20, 2015)

The category of dry and semi dry sausage products orchilledprocessedmeatsisexpectedtogrow3.1%between 2016 and 2018, according to Euromonitor International. These products include pepperoni, salami and “meat snacks”.

As commodity prices for meat (and especially beef) continue to rise, the option for industry will be to considerrelativelyneworunutilizedmeatcuts.Forbeef,consider the Vegas Strip Steak® (for details visit www.vegasstripsteak.com)ortheshouldertenders.Forpork,you have the pork sirloin and the pork eye rounds. There is also a growing movement among smaller butchers and restaurants to consider the meat parts available from nose-to-tail. You can find menus that include pig’s tails and roasted beef marrow bones. House made sausages arealsoexpectedtobepopularastheyallowforavarietyof seasonings using the same meat block.

AccordingtotheWATTExecutiveGuidetoWorldPoultryTrends2015,thepoultrymarketoutlookoverthenextdecade remains mostly positive. By 2024, an additional 26 million metric tons of poultry will be produced worldwide.Expectedlowerfeedcostsandincreasedprotein consumption in diets worldwide will support this growth (for details visit www.poultrytrends.com).

Category 2016 price increaseMeats

2.5–4.5%Fish & Seafood 1–3%Fruits & Nuts 2.5–4.5%Vegetables 2–4%

Overall Food Costs 2–4%

FOOD TReNDs & sTaTIsTIcs FOR 2016 continued from page 1

Clear Label“Clear label” established itself as a key trend in 2015, with greater transparency and the focus on simpler products with fewer artificial additives taking “clean label”tothenextlevel.Thebiggestsurgebeing reported is organic products.

Free From AllAlthough not all consumers need products that are gluten, wheat or dairy free, many are choosing them anyway as they believe them to be healthier choices. Watch for other “free from” claims to gain momentum.

The Flexitarian EffectThe Flexitarian refers to the part-timevegetarian who has reduced their meat consumption for reasons such as health, sustainability and animal welfare. Many are looking for meat substitutes and alternative protein sources.

Processing the Natural WayNatural food processing practices are a rising trend, which allow for an authentic image to override some of the negative perceptions of heavily processed foods. Watch for more fermented foods and newer technologies that are seen as a fresh alternative to using preservatives.

Green Light for VegetablesThereisnoquestionthatwe all know we should eat more vegetables. Many food manufacturers are already including them in a variety of products. Watch for more products to include vegetables.

Creating a Real LinkThere is a growing back to basics approach to re-establish links with ‘real’ food. More products will come with a story of where the product comes from, who produced it and where the ingredients are sourced.

Small Players, Big IdeasSmall companies have been the thought leaders on driving food trends. They are getting their ideas out quicklyand provide inspiration for the larger companies. Look for little companies doing big things.

Beyond the AthleteHealth trends are moving into the mainstream with more than just athletes wanting to reap the benefits of sports nutrition. Protein and energy claims will become more prominent and on a variety of products.

The Indulgence AlibiHealth conscious consumers want permission to indulge purely for pleasure. Look for snacks made with healthy ingredients like chocolate bites with chia seeds and yogurt drops made with probiotics.

Tastes for the New ExperiencesAdventurousconsumersareexpectingmoreauthenticity and originality from the food they consume. They are looking for flavour and textures to become bolder and moredramatic.Watchfor textureclaimssuchascrunchy, thinly, super moist and creamy.

Did you Know?Focus on the science! Here is a website that offers a library of published, peer reviewed studies about the role that meat and poultry play in a healthy, balanced diet.

www.meatpoultrynutrition.org

Call today for more information or visit our website at www.malabarsuperspice.com.

OUR PRESIDENT’S

Message

International cuisine continues to grow, with a focus on African and Middle Eastern spices. Spices add flavour without the addition of salt, fat or sugar, and easily fit in the formulation of any natural, healthful or clean-label product. Spicy hot is growing in popularity where just heat is not enough. Watch for a variety of ethnic spice blends, including Harissa, Berbere, Dukkah, Peri Peri, Za’atar and Tsire.

In addition to spicy hot blends there is rising popularity with the following;

• Floralflavours–lavender,rose• Broccolileaves• Seaweed• Mushrooms-chanterelles,morels,shiitake• Full-fatdairyproducts

With the Rio Olympics fast approaching, Brazilian foods will be popular including barbecued meats, caipirinhas, rice and fruit.

For more information, call us at 1-888-456-6252 (MALA) or visit our website at www.malabarsuperspice.com

As we start a new year, and we see some of the food trends that are coming forward, we are also hearing the question from many consumers…. “Where does my food come from?” Information about what we eat is often gathered from numerous on-line sources, including blogs and on-line discussions, with a focus on values, personal beliefs and perceptions. The facts based on current science can be very complex, and difficult for the consumer to understand.

Within the food industry, we hear discussions around how do we open communication and build public trust with our customers, in understanding the foods we eat? Did you know that the new Canadian Centre for Food Integrity is actively involved in developing a plan for Canadian research in public trust in food and farming? A summit is planned for May 31st – June 1st, 2016 in Ottawa. The conversation around transparency and building consumer trust in food will be a popular topic in the year ahead. The key will be in building a transparent and positive relationship between farmers, food processors, retailers, educators and consumers. We have an interesting year ahead!

We wish you and yours a healthy, peaceful and prosperous 2016!

Doris ValadePresidentMalabar Super Spice Co.

Look for our next edition in March/April 2016.

Malabar Super Spice Co. Ltd., 459 Enfield Road, Burlington, Ontario L7T 2X5 www.malabarsuperspice.com

For more information on any of the subjects covered in Malabar’s newsletter, or to suggest topics you’d like to see covered in future editions, please contact Kristine Shaver at marketing@malabarsuperspice.com.Malabar takes your privacy very seriously, and we do everything in our power to safeguard it. We NEVER rent, sell, lend or otherwise circulate our mailing lists or other contact information to anyone outside of Malabar.

Malabar is certified to provide Halal products and is BRC certificated for

spices, ingredients and seasonings

For more information on the Canadian Centre for Food Integrity, visit www.foodfarmcare.org

Spice and SeasoningTRENDS fOR 2016Savoury and Sour from around the World

SPICE PRICES

BaBy BoomERS & mIllEnnIalS

In the past 18 months market prices for many of the popular spiceshaveincreasedincostby15–19%.Increasesaredueto global weather interference and rising global demand. Spice market prices will remain high through 2016, with the added consideration that spices are traded in USD.•Mustard prices are at their highest in 7 years with a steady rise

in recent months in reaction to projections for reduced yield from Statistics Canada.

•Chinese garlic oil prices continue to reach market highs, as availability remains very low.

•Turmeric prices will continue to rise on the belief that the 2016 crop will fall short due to lack of soil moisture in certain growing areas.

Baby boomers and millennials are the largest and most influential consumer groups. Understanding each generation and what drives their purchasing decisions will be key to implementing successful and effective product development strategies in 2016 andtheyearstocome.Formoreinsightpleasevisitourwebsiteat www.malabarsuperspice.com