Take Your Product to the Next Level With Premium Ingredients

By Melissa Althen

“Premiumization” has been identified by a Deloitte study as a key consumer trend shaping the food industry. In fact, Packaged Facts estimates that U.S. retail sales of gourmet, specialty and premium foods and beverages through all retail channels rose to $59 billion in 2007, an increase of 10.9 percent over the previous year’s sales. In the next five years, this number is expected to top $96 billion.

There are many consumer trends converging to drive this growth. For one, luxury is not being saved for special occasions but is incorporated into a new style of “everyday gourmet” living in which people want to treat themselves better holistically. Even in today’s harsh economic environment, consumers will still be driven by the desire to indulge and treat themselves. With fewer dollars being spent, however, differentiation and innovation are essential to new product development. Premium ingredients can help deliver that added value and intrigue to products and convince consumers, forced to tighten their food budget, to pay a premium price.

Also driving the growing interest in premium products is a quality over quantity viewpoint. Smaller portion size is becoming a big trend for both health and economic reasons. Moderation means that consumers want more satisfaction from each calorie they consume, leading to the purchase of more premium goods.

Another trend is a move toward authentic, minimally processed foods, which naturally includes organic products. Minimal processing maintains a food’s authentic flavor and nutritional integrity. No artificial preservatives means organics are delivered more freshly to the plate, and fresh is highly associated with quality. Natural, minimally processed ingredients are perceived as superior to their artificial, adulterated counterparts.

Although organic foods are already part of the premium trend, organic product developers have a unique opportunity to take their product to the next level by incorporating specialty ingredients. So what defines a premium ingredient? Here are some examples.

Flashback to the Past
“Don’t eat anything your great-great-grandmother wouldn’t recognize as food.” This phrase, popularized by Michael Pollan, author of The Omnivore’s Dilemma, has become the mantra for many today. People are beginning to re-evaluate the innovations that brought us bountiful food cheaply. Heritage grains and heirloom produce exemplify nostalgic trends within the premium sector.

Heritage grains. These are ancient varieties of grains such as spelt, quinoa, millet, buckwheat, amaranth, chia and kamut. Typically “heritage” signifies a grain that existed prior to the mid-20th century and is openly pollinated, not treated or genetically engineered.

These grains tap into current trends by being nutrient dense and better tolerated by those with wheat allergies. A review of the USDA National Nutrient Database reveals that raw spelt, quinoa and kamut contain more protein and iron than either whole grain wheat flour or rice. Chia, the generic name for the seed Salvia hispanica L., is a nutrient powerhouse, with three times the amount of fiber, 14 percent more protein and 18 times the amount of calcium as whole grain wheat flour (that’s five times the calcium in whole milk!). Chia is also rich in essential fatty acids.

Heritage grains can provide a variety of distinct flavor profiles. Quinoa and amaranth have grassy notes, millet is very earthy and puffed kamut is mild with nutty undertones. Varying blends of different grains can create unique layers of flavors that play well together.

Many nationally recognized brands are making the jump to incorporate heritage grains as premium ingredients. Nature’s Path Organic Heritage Flakes and O’s contain kamut, spelt, millet and quinoa. Clif’s Luna bars contain such grains as quinoa, amaranth and barley. Altiplano Gold makes a Oaxacan Chocolate hot quinoa instant cereal. Oskri Organics utilizes harvest grains such as quinoa, amaranth and buckwheat in their bars.

Heirloom produce. Like heritage grains, heirloom produce can offer a flavorful root to the past. Unlike new seed cultivars that have been selected for size, uniformity and yield, heirloom varieties can offer more intense, varying flavors. The definition of an heirloom varies, but generally refers to those varieties that existed 50 to 100 years ago—before large-scale processing created the need for selection of seed based on disease resistance and yield.

Heirlooms may also be a better source of nutrition as well. A study conducted by the University of Texas examined changes in USDA nutritional database values over the past 50 years. The study evaluated 43 different garden crops and the differences in their nutrient values from 1950 to 1999. The findings showed a nutritional decline in the evaluated crops, and suggested a possible link to newer cultivars being selected for yield and disease resistance versus nutrient value.

In addition to consumers choosing heirloom varieties at the farmer’s market, manufacturers are incorporating heirlooms into their product lines. Dave’s Gourmet Organic recently released a Spicy Heirloom Marinara Sauce, while Sustainable Sourcing offers Organic Heirloom Peppercorns. The names of heirloom varieties—Black Prince, Purple Peruvian, Brandywine—offer a charming marketing opportunity.

Let’s Get Specific
Just as champagne gained premium status by being made from grapes grown only in the Champagne region of France, specific origin and branded ingredients take a product to the premium level by adding differentiation. Other examples of specific origin products available include Tunisian Olive Oil, Maine Blueberries, Oregon Mushrooms and Kona Coffee.

The Hartman Group’s study, “Premium Experiences: Understanding the Consumer Redefinition of Quality,” found that premium ingredients tend to be more about the narrative behind the ingredient rather than just the ingredient itself. Attaching origin adds value to products by providing a more personal eating experience, allowing consumers to imagine that place, much like describing the setting in a good book.

Some of the ingredients that have been a big part of this trend are honey, chocolate and salt.

Honey. With more than 300 varieties sold in the United States, specific origin honey pushes a product into the premium category. Each specific plant and growing region from which bees gather nectar influence the flavor and texture of honey.

A poem by Dick Paetzke says that, “Honey is the soul of a field of flowers.” Rather than selecting a standardized multifloral honey, product developers may add intrigue and complexity to a product by choosing a varietal honey produced in a specific region. These varietal honeys each have their own distinct flavor profiles.

Rare macadamia honey is produced from the blooms of macadamia trees in Hawaii. According to the National Honey Board, the sweet aroma and delicate nutty flavor of this amber colored honey makes a delicious marinade for fish and is also perfect when paired with dark chocolate and/or coconut desserts.

Tupelo honey, light with complex floral, herbal and fruity flavors, is harvested from tupelo gum trees in the southern U.S. wetlands. Tupelo honey never granulates and works well in baked goods.

Zambezi Organic Forest Honey imports raw fair trade honey from the banks of the Zambezi River in Africa. The company is owned by two Peace Corp volunteers, who donate a portion of their profit to the area where their honey is harvested. The honey is described as having a “caramelly, woodsy note,” and is available in bulk.

Chocolate. This is another category that is showing promising growth in specific varieties. According to research from Barry Callebaut, chocolate lovers continue to seek out new flavor experiences. Callebaut reports that from 2006 to 2008 the number of consumers who had tried single origin chocolate went from 16 percent to 42 percent, with one fifth of all consumers eating it once a month.

Dagoba Organic Chocolate has mastered the art of offering new taste experiences, “transforming exceptional cacao into edible gold.” Dagoba’s wide variety of chocolate bars includes organic single origin chocolates from regions such as Costa Rica, Madagascar and Peru. These varieties are available in bulk “couverture” drops, which can easily be melted to use in baking, as well as two-pound bricks which can be chunked, shaved or melted.

Oaxacan chocolate is appearing in many more products as well. Oaxaca, Mexico has been called the “cradle of chocolate” and the people of Oaxaca view chocolate more as a staple cooking ingredient and less like a confection. Traditionally it is used in drinks and sauces such as mole. In Oaxaca, much of the production of chocolate is still done by hand. Oaxacans do not conch their chocolate, so it has a grainier texture. This chocolate is appearing in surprising ways, such as smoked chicken with a Oaxacan chocolate rub.

The flavor of a cocoa bean is highly influenced by the bean’s growing region and processing techniques. For example, cocoa beans are dried before shipping. Different producers use different drying methods such as sun drying, artificial driers and wood fires. If the beans are exposed to smoke during the drying process, the flavor of the chocolate made from those beans may possess smoky notes.

Salts. Also growing in mainstream popularity are gourmet salts sourced from such regions as the Andes Mountains, Hawaii, France, Australia and the Himalayas. The color, flavor and mineral content of salts vary depending on where they were harvested. Standard sea salt costs around $0.50/lb, whereas the specific origin sea salts can run from $2 to $20/lb. If you think of gourmet sea salt as a natural flavor rather than just salt, the price becomes justifiable.

Branded ingredients. One other trendlet within premium we are likely to see more of are name brand ingredients. Sambazon Açaí, Amazing Grass (wheatgrass) and Dagoba Chocolate are leaders in this, but more companies like gourmet fruit grower Frog Hollow Farms are joining this trend as well.

Another notable company enjoying success with branded ingredients is Salba Smart. According to Rally Ralston, managing partner of Salba Smart, Salba is a patented cultivar of the Salvia hispanica L. seed. Salba Smart is an authorized distributor of this super seed, and offers licensing and co-branding. The Salba Smart line of products includes tortilla chips and pretzels made with Salba, and Ralston said Salba Smart is currently working with other companies on co-branding this superfood. It is not yet available in organic, but it is on the National Organic Program’s 205.606 list of allowed non-organic agricultural ingredients.

Flavors Become More Complex
Layers of complex flavor add value to foods by giving consumers new taste experiences. Today’s consumers are more adventurous and are experimenting with unusual and multidimensional flavors. Product developers can take advantage of this trend by using specific varietals and exotic flavors and spices to create a premium culinary adventure.

Rare Fruit Flavors. Citrus varietals are an example of how to send a common flavor to the next level. In ordinary products a lemon is just a lemon. The use of the less common Meyer lemon creates differentiation. The Meyer lemon is thought to be a cross between a lemon and a mandarin orange. It is juicier than the typical lemon, less acidic and possesses a sweet, floral flavor. Meyer lemon juice typically runs 20 to 30 percent higher in price than ordinary lemon juice.

The blood orange is another citrus varietal growing in popularity. The antioxidant anthocyanin gives the blood orange its characteristic deep red color. The flavor of the fruit is sweet and bitter with raspberry and floral undertones. Blood orange adds intrigue to frozen dessert, beverage and confectionery applications.

In addition to experimenting with rare varietals, consumers are tapping into exotic new flavors. Some of the popular exotic flavors emerging include lillikoi (Hawaiian passion fruit), mangosteen, tamarind and prickly pear cactus. Superfruits also fall into the exotic flavor trend and include pomegranate, açaí, goji, guarana and noni. With many of these fruits product developers can use the real deal or the same taste can often be achieved by creating an organic flavor profile to match the specific variety.

Prickly pear cactus offers functionality in both savory and sweet applications. The pads of the cactus have a flavor similar to green beans and work well with many other vegetables. The fruit of the cactus can vary in flavor but is mildly sweet. The flavor is compared to honeydew or sometimes described as a watermelon-fig profile.

From syrup to soups to jelly, the versatile prickly pear cactus not only provides a new flavor experience, but is also a functional food. Both the fruit and the pad of the prickly pear cactus contain high amounts of slowly digested insoluble fiber. Research is being conducted on the cactus and its use in controlling diabetes. The pad has a slimy, okra-like texture and can be used to thicken soups and sauces.

Spices. Adding spice to a food plays into the trend of offering more satisfaction per calorie. Spices add flavor, and more flavor means more satisfaction. The popularity of ethnic cuisine has popularized spice blends such as garam masala, harissa and herbes de provence. Spices are crossing traditional culinary boundaries with chili heating up sweet flavors and nutmeg warming up more savory dishes. Spices also have high antioxidant content and thus are great natural preservatives. Cinnamon has a total-ORAC value of 267,536, compared to pomegranate juice with a total-ORAC value of 2341.

Varietal spices known for their high quality can offer premium status to products. Tellicherry black peppercorn from South India is considered the highest grade of black peppercorn. Frontier Natural Products Co-op offers an organic Tellicherry black peppercorn, as well as long pepper (Indonesia) and Sichuan pepper (China).

Flavors can also be layered to create more upscale flavor profiles. Exotic flavors are being paired with traditional flavors to introduce them to the consumer. Pomegranate is often combined with raspberry or blueberry. Innovative examples of flavor combinations include honey saffron, strawberry balsamic and raspberry rose hip.

Food As Art
Artisanal products are handcrafted in small batches with high attention to quality and detail. They involve the use of a trade skill that typically has been passed from generation to generation. The term signifies that a product has been made with the finest ingredients by people adept at their craft, denoting a higher level of quality. According to a report from Mintel Online, almost one-third of products carried by specialty food retailers are characterized as artisan.

One example of a U.S. company supplying artisan ingredients is Cowgirl Creamery. Located in Point Reyes Station, CA, Cowgirl Creamery produces several varieties of artisan cheeses made with local organic milk. They also source over 200 varieties of cheese from America and Europe. The company offers their products for wholesale distribution through their parent company, Tomales Bay Foods, a company the owners created “to promote sustainable agriculture and artisan cheese.”

Getting to the Next Level
With sales of premium foods expected to nearly double in the next five years, the use of premium ingredients will undoubtedly continue to grow. The consumer shift toward everyday luxury and the new consumer definition of premium are factors driving the “premiumization” trend. From specific varieties to unique flavor combinations, organic processors can take advantage of this trend by using premium ingredients to push their product to the next level. No matter what, the key ingredient in developing a premium product is creativity.

Melissa Althen is senior food technologist for Parker Products (www.parkerproducts.com). Parker, an innovator in food concept design, is a supplier of fine inclusions for the dairy, bakery, confectionery and snack food industries. Parker also manufactures Organic Confections, a retail line of unique organic candies. Prior to joining Parker, Althen worked with Baskin Robbins in many areas of ice cream production. Althen can be reached at melissa@parkerproducts.com.

Photo credit for opening photo: Corin Hodder.

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