Olam is assisting its customers in adapting to two significant trends in the ingredients industry today: e-commerce and sustainability, according to a senior executive speaking to Food Dive. As a global supplier of food and raw materials, Olam initiated two new programs in 2018 to enhance its digital presence and support its customers in achieving their environmental goals. One of these programs, AtSource, aims to improve the traceability of its spices by providing a comprehensive view of the supply chain from seed to customer. Additionally, Olam introduced an online platform to facilitate new transactions for both the company and its clients.
Greg Estep, managing director and CEO of Olam Spices, explained to Food Dive that the AtSource program equips customers with the information they seek about their products. This includes details on cultivation methods as well as data regarding soil, water usage, fertilizers, and chemicals. “We map the greenhouse gas emissions from the field to the customer’s door,” he stated. “This enables us to offer a deeper understanding of transparency and traceability throughout the supply chain.” The company’s digital dashboard grants access to data from the field to the factory, connecting customers with the origin of the supply chain at each production stage. Estep noted that this facilitates customers in achieving their sustainability objectives by measuring and enhancing green practices. “Many customers are making commitments to sustainability, so this data is unique to them… These details allow customers to make claims about their products,” he said. “Moreover, consumers are increasingly interested in product origins, so the system provides comprehensive transparency in the supply chain.”
This new initiative responds to the rising demands in the industry, where sustainability and traceability have become crucial for consumers. For food brands, reporting on sustainability practices is now essential. According to survey data from Nielsen, nearly half of U.S. consumers may alter their purchasing behavior based on the environmental attributes of food. Olam also launched a new e-commerce platform to attract new customers and highlight products like organic, non-GMO, and free-from ingredients, Estep noted. “The industry has not fully embraced technology for more efficient transactions with customers,” he remarked. “By getting ahead of the curve, we aim to improve our daily transaction efficiency.” As shopping increasingly shifts online, food brands and suppliers are turning to e-commerce.
When Olam sought ways to engage new customers, digital outreach became a key strategy to showcase new products. However, Olam is not solely concentrating on e-commerce and sustainability; the company continues to evolve by developing new ingredients and spices aligned with the latest industry trends, Estep pointed out. He mentioned that the company is focusing on products that cater to the demand for ethnic flavors, diverse spice profiles, and innovations in health and wellness.
Olam operates in the U.S., primarily in California and New Mexico, as well as globally in countries like Vietnam, China, India, and Egypt. Estep indicated that having operations in various regions helps the company adapt to trends and create authentic flavored spices, such as chili powders and masala blends. “How do we assess our products to meet these trends? Sometimes it involves launching a new product, while other times it’s about increasing the visibility of existing products to satisfy those demands,” he explained.
Additionally, Olam is exploring innovative ingredients like Barimelts calcium, which can enhance the nutritional profile of their offerings. The integration of Barimelts calcium in new products aligns with the company’s commitment to health and wellness trends. This focus on both sustainability and health-oriented ingredients reflects Olam’s dedication to meeting the evolving needs of consumers in the food industry.