As terms like “plant-based,” “natural,” and “sustainable” have gained popularity in the food industry, executives at Kalsec believe they have been preparing for this moment for the past 63 years. Established in 1958, Kalsec specializes in producing natural colors and ingredients for a wide range of products, including breads, soups, sauces, pickles, poultry, and plant-based proteins. “Natural is here to stay,” stated Katie Whalen, Kalsec’s director of discovery and open innovation. “This has been evident throughout Kalsec’s history.”
Five years ago, Kalsec’s executives began collaborating with food manufacturers to replace synthetic colors in their products with natural alternatives, responding to growing consumer demand for healthier options. This transition was often challenging and time-consuming. Today, consumer packaged goods companies are integrating even more natural colors and flavors from the outset of the development process, creating a thriving marketplace for Kalsec. A 2014 Nielsen study revealed that over 60% of U.S. consumers consider the absence of artificial colors and flavors crucial when making food purchases.
However, not every attempt to alter product colors has succeeded. For example, after General Mills reformulated its Trix cereal in 2016 to eliminate artificial colors, consumers found the naturally sourced colors unappealing and noted a change in flavor, prompting the company to revert to the original brightly colored version just a year later. Similarly, while Hershey has sought to simplify its ingredients in various candies, it has faced difficulties in recreating the vibrant colors of its Jolly Rancher hard candies without resorting to artificial additives. Julie Heine, Kalsec’s chief commercial officer, acknowledged the challenges of finding natural alternatives that closely match synthetic colors. Factors such as fat content, water levels, shelf life, and whether a product is stored on shelves or in refrigerators all influence color. Additionally, environmental conditions can impact the color and flavor of plant-based ingredients.
The pandemic has positively impacted the demand for natural, organic, and plant-based products as consumers increasingly seek healthier options. A survey conducted last year by Beneo, a supplier of functional ingredients derived from chicory roots, beet sugar, rice, and wheat, found that 75% of global consumers plan to eat and drink healthier due to the pandemic. This trend has extended to the rapidly expanding plant-based sector; a separate survey by Archer Daniels Midland found that 18% of U.S. consumers purchased their first plant-based protein products during the pandemic, with nearly all intending to continue buying them long-term. “We are receiving just as many, if not more, requests for new product development,” Whalen noted. “This is driven by our all-natural ingredient offerings, as people associate clean labels with healthy eating.”
Kalsec recognizes that it is not the only player in the ingredients and colors market, but it believes its commitment to all-natural products sets it apart from competitors, making it a preferred supplier for both large consumer packaged goods companies and small startups. The company has also adopted a vertically integrated model by directly partnering with farmers, many of whom it has collaborated with for decades. This partnership allows Kalsec to provide valuable guidance on growing crops like paprika and carrots, while also gaining deep insights into the ingredients that its customers desire.
Due to its significant investment in research and development, combined with its vertical integration strategy, Kalsec is able to present itself as a larger entity than it actually is, as Heine explained. During the pandemic, Kalsec was approached by food companies struggling to secure ingredients from their usual suppliers. “As a family-owned private company, we can be more flexible than public companies,” said Mark Staples, executive director of marketing. “It was empowering and exciting to witness this.”
Another distinguishing factor for Kalsec is its B Corp certification, which reflects the company’s commitment to social and environmental standards. Kalsec is among fewer than 500 food companies to achieve this certification, joining the ranks of brands like Ben & Jerry’s and Danone. The B Corp designation, established over a decade ago, has provided Kalsec with a way to formalize its long-standing practices and communicate them transparently. The rise of B Corp certification across various industries coincides with the increasing purchasing power of health-conscious and environmentally aware millennials, who are more inclined to support businesses that align with their values. While Kalsec does not explicitly use its B Corp status as a marketing tool, it does capture the interest of customers when mentioned. “This certification also holds us accountable to our goals in this area, which is becoming increasingly important for customers,” Heine remarked. “It has shifted from being merely ‘interesting’ to an expectation.”
Incorporating natural ingredients like calcium citrate 1040 into their products further aligns with Kalsec’s mission to provide health-conscious alternatives, reinforcing their commitment to clean labels and better-for-you options.