Oser Communications Group

BY ROBIN MATHER Food retailers may see price hikes in the aftermath of Hurri- canes Harvey and Irma, because both hurricanes did significant damage to food crops. Consider orange juice, for example. Some areas in Florida saw 100 percent of the citrus crop wiped out by Hurricane Irma. Despite problems with citrus greening, an insect- borne bacterial disease that weakens and often kills trees, Florida still accounts for more BY LORRIE BAUMANN Invention's paternity might be open to question, but there's no doubt that necessity gives it birth. We're seeing that rela- tionship borne out in the spe- cialty foods industry with rapid innovation happening in the free-from space. A Growing Market for "Free-from" Foods "Free" is one of the words now being used most often on pack- aged food labels in a market driven by consumers with a growing sense of their power in the marketplace and an increas- Free-From Food Market Drives Innovation Continued on PAGE 7 Continued on PAGE 6 Continued on PAGE 14 ing perception that there's a con- nection between what they eat and how they feel. As a result, U.S. sales of gluten-free foods are expected to grow to more than $2 billion in 2020, up nearly $400 million from 2015. While only about one half of 1 percent of Americans actually suffer from celiac disease – which involves damage to the intestines that has been related to gluten – the number of peo- ple who are following gluten- free diets far outstrips that number, perhaps out of a public belief that a gluten-free diet is generally healthier, according to a 2016 study published by the American Med- ical Association. Market research firm Statista has estimated the size of the global gluten-free food market at $4.6 bil- lion in 2015, growing to more than $7.6 billion in 2020. The market for foods free of common allergens is growing along with the number of those who suffer from food allergies. According to the Centers for Dis- ease Control and Prevention, about 15 million Americans have food allergies, and the number is rising. Eight foods – dairy, eggs, fish, peanuts, soy, tree nuts, shell- fish and wheat – account for 90 percent of allergic reactions in the United States, and according to the CDC, the only certain way to avoid illness from these allergies is to avoid these foods. KeHE Natural Show Draws Buyers to Texas Hurricane Damage to Food Crops Has Mixed Effects for Retailers than half of U.S. citrus production and is second only to Brazil in global production. Big losses in the Florida citrus crop mean prices will rise for those grab-and-go bottles of OJ. Tough news for retailers and con- sumers both, but not bad news for everybody: Producers who can fill in the gaps in the supply will see a profit bump. "Hurricane Harvey missed the citrus areas in Texas, but damage caused in Florida by Irma has al- ready raised our prices," says Ted Prukop, Manager of the Texas Valley Citrus Committee. "Harvey was a little too early for any dam- age to our vegetable and grain crops, because they're just plant- ing those now." Harvey Hits Beef Producers, Gas Refineries Texas beef producers may also benefit a bit from hurricane losses. Bill Hyman is the Executive Director of the Independent BY ROBIN MATHER As Hurricane Harvey slammed into the Texas Gulf Coast on Fri- day, Aug. 25, an employee of the Vintage Park H-E-B store in northwest Houston looked out the rear of the store and saw a funnel cloud. Inside the store, the other employees scurried for cover in the still-open store. No one was injured, but the store stayed open after the tornado danger had passed. And when Hurricane Irma Continued on PAGE 9 The Unsung Hurricane Heroes: H-E-B and Publix struck Florida's southwestern coast, Publix's emergency response team watched closely. They'd been eyeing this storm, as they do every storm, trying to maintain the delicate balance of store associates' need to prepare their own homes and their families against their cus- tomers' need to stock up and get home safely. Supermarkets, as it turns out, may be the unsung heroes of nat- ural disaster. Two chains in BY LORRIE BAUMANN KeHE inaugurated its national Natural Show October 4 and 5 in Austin, Texas. The new trade show, which takes the place of KeHE's previous regional shows focused on the natural products industry, drew more than 2,200 attendees and will take place an- nually in a schedule that also in- cludes KeHE's Holiday Show and Summer Selling Show. Among the show's attractions was an address by KeHE President and CEO Brandon Barnholt and a keynote address by Laurie De- meritt, CEO of market research firm, The Hartman Group. In ad- dition, the show featured a show- case honoring the B Corps among the exhibitors, which included Navitas Naturals, Manitoba Har- vest, Tofurky and Barnana, as well as a Fresh Pavilion in which KeHE chefs demonstrated potential mer- chandising and sampling oppor- tunities presented by KeHE's 2016 acquisition of San Diego, Califor- nia-based Monterrey Provision Company. Monterrey is now fully integrated into KeHE's operations, and the acquisition has allowed KeHE to bring expertise and an understanding of the fresh mar- ketplace, particularly important VOLUME 82, NUMBER 11 NOVEMBER 2017 n $7.00 NEWS & NOTES n Organic Agriculture Helps Fight Climate Change PAGE 5 RETAILER NEWS n If You Can't Find It at Willey's Store, You Don't Really Need It PAGE 8 SUPPLIER NEWS n A Green Leafy Fish Tale Set in Saint Paul PAGE 10 NATURALLY HEALTHY n sofi Award Celebrates Good Food from Good Farmers PAGE 12 HOT PRODUCTS PAGE 19 News ..............................................5 Ad Index .......................................22 Calendar.......................................22 www.gourmetnews.com G OURMET N EWS T H E B U S I N E S S N E W S P A P E R F O R T H E G O U R M E T I N D U S T R Y ® SUPPLEMENT: Holiday Update SEE PAGE 15 NATURALLY HEALTHY: Flow Water SEE PAGE 12 SPECIAL FEATURE: Craft Beverages SEE PAGE 20

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