Research and Development Tax Credit

SPI Group recently attended a meat conference at Texas A&M and one of the speakers talked about R&D Tax Incentives for food companies that do R&D/Product development.

Many companies in the food manufacturing and processing industries are unaware that the government offers generous research & development incentive programs. Even those that are aware often fail to capture the full extent of R&D tax credits.

If your company has introduced product line extensions or modified product formulations then the tax credit applies. While the R&D Tax credit has been part of the tax code for decades, it only became permanent in December 2015 with the passage of the Protecting Americans from Tax Hikes (PATH) Act. The permanency of the credit will provide your company greater certainty and the ability to count on its savings in their annual planning.

Examples of Food Science innovations eligible for the R&D tax incentives include the following:

  • Develop recipe formulations for new food products and flavorings
  • Improve existing food product formulations to extend product shelf life
  • Develop new or improved agricultural or chemical materials that go into food


  • Improve existing food products to enhance sensory qualities
  • Improve existing food products to achieve nutritional requirements
  •  Improve existing formulations to achieve analytical requirements
  •  Develop new production processing techniques
  •  Develop new packaging designs
  •  Produce prototypes products for testing and validation
  •  Conducting sensory evaluations


Natural and Clean – Research for Understanding Consumers

SPI Group is committed to helping our customers meet consumers’ needs, as we all know, one of the most popular trends is clean(er) labels and natural.  Except that clean and natural have no definition.  DuPont Nutrition and Health spent the last year researching what consumers mean when they say they want clean and natural.

  • 57% of adults are making an effort to avoid packaged food and beverages with chemical or artificial ingredients
  • 58% say the avoidance is due to concerns about negative impacts on their health
  • Of 1200 US consumers, 53% ALWAYS read labels on a first time purchase and 20% ALMOST ALWAYS

Except, 46% say they are confused by nutrition facts panels!

So, half of consumers want to avoid certain ingredients and half of consumers read labels except they don’t know what the labels mean.  In other words, they want to read labels and make certain choices but don’t know how.

Here are a few comments regarding specific ingredients:

  • 56% of consumers think “Chicory root fiber” is natural, 14% think “Inulin” is natural
  • 63% of consumer think “protein from soy” is natural, 36% think “soy protein isolate” is natural
  • 54% of consumer think “rice starch” is natural, 13% think “modified corn starch” is natural

And finally, who is willing to pay for all of this?  Consumers who want to change their health and live a good life, are willing to pay up to 10% more for natural and clean foods.  Those interested in taste and weight management are not.  In our sample size of over 10,000 adults, the second group composed more than half of the sample.

Want to know more about this primary customer data that can help you create a clean label strategy?  Call your SPI Group account manager today to set up an appointment

True “Uncured” Labeled Meats

Celery juice powder is used in many natural uncured sausages and deli meats, with packaging that declares ”A natural source of nitrates”. In fact, celery juice powder is a source of concentrated nitrite!

SPI Group and Wenda Ingredients offer another option for natural meats:  use Spice and Fruit Extracts from Prosur.  Prosur T-10 plus works in a different way to preserve the cure color but is not a concentrated source of nitrite.  Using T-10 plus can help eliminate chemical nitrite, as well as cherry and celery juice powders.  It creates “cured” color and flavor and improves shelf life.   Additionally, changing from celery juice powder to T-10 plus allows for faster processing (no overnight holding).

If you want more information about moving away from celery juice powder and moving towards ProSur T-10 plus fruit and spice extract; contact SPI Group today! 

DATEM Replacement in baked goods

Our friends at MGP Ingredients were recently featured by Bakerpedia!

The featured ingredient in this article is Arise® 8100:  a functional wheat protein isolate.  It affects the rheology or machinability of doughs and exhibits enhanced extensibility properties that decreases mixing time and improves loaf volume of bread and other yeast-leavened products. As an added bonus;  Arise 8100 is Non-GMO Project verified!

Check out the Bakerpedia feature and contact your SPI Group representative for more information or a sample today!


Plant-based 90% Protein Nuggets

SPI Group just returned from the Supply Side West show, where we were excited to introduce our customers to some exciting new ingredients: plant-based 90% Protein Nuggets from DuPont Nutrition and Health. 

The new SUPRO® 90 percent protein nuggets are unique not only for their high level of protein, but also because they are label friendly. We like these nuggets as an effective way to add protein to a formula but also to add crunchy texture.  The new shapes allow for easy use in snacks, cereals , granola items, and nutrition bars – and more!

Contact us for more information and to see these new 90% protein nuggets for yourself!