(Editor's Note: This item originally appeared earlier today. It
is being sent to run on additional wires.)
By Jennifer Maloney
The future of protein could be a meal worm, a fungus, an obscure
plant or a run-of-the-mill pea.
"If we look around the world, there's a big consumer trend on
more protein," says Mehmood Khan, vice chairman and chief
scientific officer at PepsiCo Inc. "The question is: How are we
going to do this in a manner that's sustainable? Protein isn't
cheap. And animal protein has the greatest footprint on the
planet."
The maker of Cheetos, Rice-A-Roni and Quaker Oats this year
issued a request for proposals on "novel protein sources" for its
snacks and beverages. PepsiCo is focused primarily on plant-based
proteins but said it would also consider insects or mycoprotein --
an ingredient made from fermented fungus.
Indeed, companies from startups to conglomerates are expanding
their portfolios to serve consumers concerned not just about what
they eat, but how their food is grown.
More U.S. consumers are looking for healthy, minimally processed
ingredients sourced in a way that is kind to the environment.
While U.S. per capita consumption of meat and poultry combined
grew 6% from 2014 to 2016, according to the U.S. Department of
Agriculture, consumption of meat substitutes is also growing. U.S.
retail-store sales of products using meat substitutes climbed 16%
over the same period to $700 million in 2016, according to research
firm Euromonitor International. The firm projects that meat
substitutes, including frozen, refrigerated and shelf-stable
products, will reach $863 million in annual U.S. sales by 2021.
Packaged foods labeled "vegan" represented $9.7 billion in
global retail sales last year and are projected to reach $11.8
billion by 2021, according to Euromonitor.
"The consumer is demanding more and more plant-based solutions,"
says Ethan Brown, chief executive of Beyond Meat, a Los
Angeles-area company that uses peas to make burger patties with a
texture, taste and sizzle similar to ground beef. The company last
year sold a 5% stake to Tyson Foods Inc., the largest U.S. meat
company by sales. Tyson, which raised some eyebrows with the move,
said at the time that investing in plant-based protein would help
it meet consumer demand for more choice and keep tabs on
innovations.
Nestlé SA last month agreed to acquire Sweet Earth Foods, a Moss
Landing, Calif., company that substitutes plant for meat proteins
in meals such as curries, stir fries, breakfast wraps, burgers and
pasta. Nestlé didn't disclose the terms of the deal.
As shoppers look for healthy, natural ingredients, big food
companies are investing in startups that offer alternatives to
traditional dairy products as well.
Kellogg Co.'s venture-capital fund in January announced an
investment in Kuli Kuli, an Oakland, Calif., company that makes
smoothie mixes and bars from the protein-rich leaves of the moringa
tree, cultivated in West Africa, the Caribbean and elsewhere.
General Mills Inc.'s venture-capital fund, too, has invested in
such companies as Kite Hill, a producer of nut-milk-based cheeses
and yogurts; and Purely Elizabeth, which sells granola and hot
cereal made with ingredients such as kaniwa, a protein-rich seed
grown in South America.
Alternatives to traditionally raised animal products are coming
from some surprising sources. Take jackfruit, for example. It isn't
high in protein, but when cooked it has a texture similar to pulled
pork. Then there's Memphis Meats Inc., which is developing
technology to grow meat from self-reproducing animal cells. Cargill
Inc. invested in the company in August.
PepsiCo's request, posted on a website that helps match projects
with researchers, notes that the company has already done
"extensive work" on ingredients including soy, moringa, duckweed,
cricket powder and mealworm powder. But don't expect a Quaker
cricket bar soon. The company says that "extensive work" could mean
reading the research literature on a given subject.
The company has set goals for lowering the amounts of sugar, fat
and sodium in its products and is shifting its portfolio to include
more of what it calls "everyday nutrition" products containing
whole grains, fruits, vegetables, dairy and protein. These
products, such as overnight oats, granola and hummus-based sandwich
spreads, now represent 27% of PepsiCo's net revenue.
In its search for new protein sources, the company says it is
looking for ingredients that are affordable, easy to pronounce and
have minimal impact on the flavor and texture of a drink or
snack.
"Ask anybody who enjoys cooking," says Dr. Khan, a former
endocrinologist. "Take anything with protein; if you mishandle it,
it either curdles, denatures, gels, tastes bad. It is not easy to
cook with."
In some cases, PepsiCo has taken a conventional ingredient and
given it a new form.
The company's latest innovation is a patented process that makes
oats soluble in water so they can be consumed as a protein-rich
beverage. The resulting drinks don't have the viscosity or
granularity one might expect from mixing oats and water, PepsiCo
says. The company is developing products made with "SoluOats" for
the U.S. and other markets that vary by seasoning, flavoring and
texture. Some may include additional protein from dairy.
Food companies are also looking for ingredients that address
concerns that meat production -- because of the amount of land,
water and energy it requires -- won't meet the world's growing
protein needs.
That's where the use of insects could come in.
Mohammed Ashour, chief executive of a Texas company called
Aspire Food Group, is aiming to introduce American palates to
insects -- a protein source consumed by two billion people around
the world.
"We are growing in numbers and we are growing in appetite," Mr.
Ashour says of the world's population, noting that raising
livestock requires much more water, land and fossil fuels per pound
of meat produced than insect farming does. "We have to start
shifting how the world's resources are used."
In a newly expanded indoor facility in Austin, Aspire produces a
cricket powder that is used in protein bars, cookies and dog
treats. The company also makes whole-roasted crickets, a crunchy
snack that comes in flavors such as Texas BBQ and sour cream and
onion. The roasted crickets were a hit this year at the Seattle
Mariners' Safeco Field, where concession stands served them in a
4-ounce cup with chile-lime seasoning for $4. Aspire is now in
talks with an NBA team, Mr. Ashour says.
"There's definitely a psychological hurdle," he says. "A lot of
insects are just simply gross to look at. This isn't an overnight
shift."
Meanwhile, Beyond Meat is exploring protein sources beyond the
humble pea.
"People don't like to eat the same thing every day," Mr. Brown
says. A mix of proteins can create a better mouthfeel and a more
complete amino-acid profile. The company is also looking to
increase the stability of its amino acid supply by diversifying the
crops it uses.
Among other crops, it is considering lentils, mung beans,
mustard seeds and lupin beans, a legume eaten in the Mediterranean.
The company's next product will likely use a combination of protein
sources.
---
Ms. Maloney is a reporter for The Wall Street Journal in New
York. She can be reached at jennifer.maloney@wsj.com.
(END) Dow Jones Newswires
October 16, 2017 13:53 ET (17:53 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Tyson Foods (NYSE:TSN)
Historical Stock Chart
From Apr 2024 to May 2024
Tyson Foods (NYSE:TSN)
Historical Stock Chart
From May 2023 to May 2024