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

Products

  • 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!

 

Meticulous Process Ensures Integrity

2017 marks the 20th anniversary since establishment of DuPont Solae’s Protein Solutions’ IP Non-GM Program.  Our IP Non-GM Soy Proteins were the first soy proteins to be Non GMO Project Verified due to our detailed farm-to-customer program in place to manage our supply of IP Non-GM Soy Proteins and assure its integrity.   Through a complex system of segregation and testing we can say our IP Non-GM is a model for others to follow.

To commemorate this occasion we have this video to help demonstrate our long time commitment to delivering what customers seek: honest transparency in where our products come from and how we make sure to deliver at and above your expectations.

Asian Noodle Technology Course held at the Wheat Marketing Center, Portland

The Wheat Marketing Center together with the Food Innovations Center held another excellent advanced course on the manufacturing of dried Asian style noodles. Asian style noodles are popular all over the world for their convenience, low price and the long shelf life they provide the end use consumer. Asian noodles are packed in plastic cups or formed in a square and wrapped in plastic. Many countries lack refrigeration for foods that need to be used in a few days or weeks. Asian noodles are perfect for all climate conditions and easy to prepare and serve.

This class has taught many hundreds of people from all over the world on the science in making a good quality dried noodle. The course was held in the Old Alber’s Mill along the Willamette river waterfront near downtown Portland and ran the entire week of August 7th. This time the course was held for a group of food industry people from Nigeria which included people from the milling and baking industry.

The Wheat Marketing Center holds other short courses on many other products that also use the NW soft wheat that is grown exclusively in the NW region of the US. Soft winter wheat is lower in protein than the hard winter wheat variety that is used in bread type doughs. Higher gluten is desired for good cell structure and strength, lower gluten level is desirable for making flat breads, cakes, cookies and Asian style noodles.

The course includes in depth sessions on using phosphates, wheat protein isolates, resistant starches and hydrocolloid as ingredients in making high quality dried Asian style noodles. They included a session on making the seasoning that goes into the individual serving packets for each package. The seasoning blend in the packets is key in making the product taste and smell desirable in every country that produces them. No matter the flavors they choose they have to decide on how to enhance those flavors.

In the seasoning session we told the students how their flavor enhancing chemist tool belt included Salt, Glutamic acid in the form of MSG or Yeast Extracts as well as Nucleotides and Peptides. The proof of the performance of the yeast extracts, was when we showed the students the three demo’s I’d prepared. I used the Provesta 349, poultry enhancing yeast extract in a chicken broth, the Provesta 347 extract in a beef broth and the Provesta 512 extract in a vegetable broth.

At .025% we showed them how much a little bit of the yeast extracts can affect the seasonings flavor and have an overall umami effect on the broth. All agreed the broth was much fuller and flavorful using the yeast extracts. They finished the week making their own dried Asian Noodle product and all were going to use the samples of Ohly yeast extracts that I left for them.

The Ohly yeast extracts and other products work in all varieties of food products. If you’re working on a food product that needs some extra flavor enhancement or to bring out certain flavor notes.

Please get in touch with your local SPI Group representative and ask for an Ohly product list and demonstration on how they would work in your product.

The Positive Economic Value of Soy Protein in Prepared and Nutritional Foods

Many times we are asked, “Why should we use soy proteins in their processed food products and blended protein beverage and bar solutions?”  One of the very best reason is price stability over the long term.

In recent years, we have seen the prices of WPC/WPI and Caseinates/MPCs soar

above their  historical average prices by 50 to 60% .   All these milk based proteins are subject to global and domestic effects on the producing country’s supply and demand for fluid milk for retail dairy products including fluid milk and cheese as well as conversion into butter and skim milk powder or caseinates/milk protein concentrate powders. In addition, strong demand for Whey proteins have resulted in long leadtimes and short supply while dairy companies try to balance out their cheese production against this demand. Although present prices appear stable, milk-based proteins remain volatile to any supply versus demand imbalance.

In contrast, isolated soy protein (90% protein) and soy protein concentrates (65% protein) are very price stable. The prices for isolated soy proteins has remained stable only increasing due to subtle soy crop-related changes, capital improvement,energy,labor and transportation and inflation while at the same time improving in flavor, quality and improved functionality. (Over the past three decades, the average cost of domestically produced soy isolates has increased only 2.5% per year.)

A primary reason for this price stability is that 85% of world’s soybean production is crushed into soybean oil and meal. Of the meal,98% is converted into animal feed and only 2% is further processed into soy flour and proteins. With a bountiful supply of raw material, soy protein shortages and price spikes are rare.

As we develop the nutritious foods of the future and consider the positive nutritional and physiological value of blended proteins, let us recall the most price stable of all: Soy protein.

 

 

Soy Allergen Concern

Most formulators and nutritionists realize that soy protein provides many functional and nutritional benefits in foods. These benefits include providing better yields and moist texture in processed meats and protein-based satiety when added to beverages or nutrition bars. However, in all cases, when added to prepared foods or nutritional products, soy is considered a definite allergen as it is listed as one for the 8 top allergens found in foods as follows:

  • Peanut
  • Tree Nuts
  •  Milk
  • Egg
  • Wheat
  • Soy
  • Fish
  • Shellfish

All of us are concerned about the labeling and health concerns of having an unwanted allergen in our product. But here are some facts which might help us to re-consider soy protein use:

  • The largest survey conducted found only 0.0005 percent of adults are allergic to soy protein.1
    Cow’s milk allergy is about 40 times more common than soy allergy.1
  • The American College of Allergy, Asthma and Immunology estimates that only 0.4 percent of children are allergic to soy protein. Of those, an estimated 70 percent will outgrow their allergy by age 10.2

When designing a prepared food or nutritional food for adults, it is vital to weigh whether our soy protein use or rejection is based on allergen labellling dictates or remote risk concerns about allergenic effects of soy protein products.

  1. Savage, J.H., et al. “The natural history of soy allergy.” J Allergy Clin Immunol, 2010. 125(3): p. 683-686.
  2. Vierk, K.A., et al. “Prevalence of self-reported food allergy in American adults and use of food labels.” J Allergy Clin Immunol, 2007. 119(6): p. 1504-10.

Source: http://www.soyconnection.com/soy-wisdom

SCFIC & SCIFTs Suppliers’ Night – March 8, 2017

We hope you had the opportunity to attend at least one of the premier events SCIFTs put on in Anaheim, CA this March. This was the 30th anniversary of these events and it was one of the best. The Conference held the first half of the day was a wealth of information on topics of interest for the busy Food Industry professional. Highlights included the esteemed Elizabeth Sloan, PhD of Sloan Trends, giving a ‘sneak peek’ of her market insights on 2017-2018 food trends. Look for her full report to be published in IFT’s Food Technology magazine soon.

Other speakers and subjects included: insights from Debra Topham, MS, CNS, CFS on managing  the new nutrition label changes set in place in 2016, Katie Wagner, founder of Katie Wagner Social Media, on how food industry professionals can harness the power of social media to engage our audience, build credibility and get our message out, Dr. Ash Husain discussed scientific advancements in sterilization processes for food safety, and we heard from Dan Solis, MHA FDA with updates on regulations and processes in food import and exports. Overall, it was very informative day.

In addition to the knowledge and expertise of the speakers, 5 student teams from Southern California Universities participated in the annual Student Product Development Competition. The teams utilized the conference theme: New World, New Tools to present their ideas to the panel of judges.

And last, but certainly not least – the day was capped off with the SCIFTs Suppliers’ Night hosted in the ballroom of the Disneyland Hotel. The event was sold out – vendors, customers, and students were able to meet with manufacturers and distributors of a wide variety of ingredients. The evening was capped off with a complimentary hors’ de oeuvre reception. If you did not attend, we encourage you to put next year’s event on your calendar – March 7, 2018.