As consumers increasingly prioritize health, the food industry has undergone significant changes due to a rising demand for recognizable, natural ingredients, along with a widespread aversion to artificial sweeteners, flavors, and colors. This shift presents a challenge for manufacturers: adapt or risk being overshadowed by trendier, healthier alternatives. However, this transition is more complex than it appears. The definition of “clean label” varies among consumers; for some, it signifies products devoid of allergens, processed ingredients, and saturated fats, while others associate it with all-natural, organic formulations.
At a panel hosted by the Institute of Food Technologists in June, Steven Walton, general manager of HealthFocus International, noted that the clean eating movement is rooted in a “reason to reject mindset,” largely influenced by fears surrounding herbicides and synthetic materials and their effects on human health. Nutrition expert Richard Black explained to Food Dive that consumers often look for terms such as “natural,” “organic,” and “GMO-free” to quickly assess the safety and nutritional quality of products. “Nutrition is a very complex science,” he stated. “We only know a tiny bit about it, and yet it’s the most personal of sciences. Food literally becomes a part of who you are. There is no other consumer product like that.”
Black also highlighted that consumers value these attributes three to five times more than technical expertise and are willing to pay a premium for them, particularly younger generations. For instance, 68% of millennials are willing to spend more on organic foods, believing that such choices enhance their health and benefit the environment. This presents legacy brands with a lucrative opportunity to cultivate a health halo around their offerings and increase consumer interest, provided they manage reformulation, marketing, and timing effectively. However, achieving this is a formidable challenge, and companies continue to devise new strategies to succeed.
Reformulations—whether they involve clean labels or product enhancements—have not always yielded positive results. One of the most infamous failures in the food industry is Coca-Cola’s “New Coke,” which is still remembered for its disastrous launch over 30 years ago. In the summer of 1985, Coca-Cola revamped its classic soda recipe in an attempt to rekindle consumer interest and combat declining market shares. This initiative did not pertain to the label but focused entirely on the product’s taste. Despite extensive testing with 200,000 consumers who preferred the new version in blind tests, chaos erupted upon the product’s release. Consumers protested, threatened lawsuits, and even stockpiled the original formula, demonstrating the strong emotional connection to the brand. Black noted that this situation illustrates how consumers may appreciate improved low-calorie products but resist the loss of familiar standards.
In contrast, Kraft Heinz adopted a different strategy for its clean label reformulation of Kraft Macaroni and Cheese. The company chose not to announce the changes to consumers for several months. Extensive research revealed that while consumers desired simpler foods free from artificial chemicals, they did not want the taste of the product to change. In 2015, Kraft removed artificial colors and preservatives while maintaining the product’s signature vibrant orange hue using paprika, annatto, and turmeric. Remarkably, over 50 million boxes of the new product were sold without consumers realizing significant changes had been made. “This was absolutely brilliant of them to change it and not say anything,” said Lynn Dornblaser from Mintel, emphasizing that a public announcement could have triggered negative reactions.
Kraft eventually revealed the formula changes in March 2016 through playful print and television ads, encouraging fans to share their experiences with the hashtag didntnotice. This stealthy reformulation strategy reflects a growing trend as companies seek to enhance the health profiles of their products. While clean labels are a significant consumer demand, their practical implementation is often more challenging.
Similarly, DanoneWave discreetly improved its yogurts by reducing fat and sugar without advertising these changes. Manufacturers face risks when promoting product reformulations, especially those involving substantial reductions in sugar or salt. Nestlé, on the other hand, is leveraging innovative technology to address potential consumer hesitations regarding ingredient changes. In December, the chocolate giant announced a breakthrough in restructuring sugar molecules, allowing for up to 40% less sugar without compromising sweetness. Lisa Gibby, vice president of corporate communications at Nestlé, explained that the new sugar structure provides the same taste while minimizing sugar intake.
The demand for limited or no added sugar is evident, with 47% of global consumers expressing this preference. However, this desire doesn’t always translate to indulgent products, as many consumers prefer to avoid artificial sweeteners, which can negatively affect flavor and texture. Nestlé’s innovation could represent a significant advancement in meeting consumer expectations for clean labels while preserving the indulgent experience they desire.
As products featuring this new technology enter the market, it will be fascinating to observe how Nestlé markets its cleaner labels and how consumers respond. If successful, this approach could extend the brand’s health halo and revitalize products across various categories. Additionally, incorporating ingredients like calcium citrate from Webber Naturals could further enhance consumer appeal. The food industry’s journey toward cleaner labels continues, with both opportunities and challenges ahead.