Could a Whole Foods-banned sweetener be an alternative to Ozempic? 

There’s reason for optimism: In a pair of studies, the rare sugar allulose enhanced the glucagon-like peptide 1 (GLP-1) activity in rodents. The GLP-1 hormone promotes satiety and slows gastric emptying, promoting weight loss and stabilizing blood sugar.

Full disclosure: The studies were funded and conducted by employees of Matsutani Chemical Industry, a producer of maltodextrin, prebiotic fiber and, yes, allulose.

The popularity of GLP-1 receptor agonists like Ozempic and Wegovy prescribed for weight loss has skyrocketed in the past year, but the medications have downsides, including high costs and unpleasant side effects. 

Food and beverage brands are poised to benefit from allulose’s halo as a cheaper and more accessible option – but it comes with some regulatory baggage and consumer perception issues.

 A little history: Allulose, which is chemically similar to fructose and can be found in certain fruits like figs and raisins, is nearly calorie-free and is not metabolized in the body. Matsutani received Generally Recognized As Safe (GRAS) status for allulose production in 2014, and six years later the FDA clarified Nutrition Facts labeling requirements for allulose, exempting it from total sugars and added sugars declarations.

Notably, allulose has yet to be approved for use in Canada and Europe, as it is considered a novel food ingredient. Whole Foods Market said it reviews how food is regulated by various governments for its list of more than 300 banned ingredients. 

Some brands have removed allulose from recipes to gain shelf space at Whole Foods. SmartSweets, for example, offers an allulose-free version of its candy in those stores. 

“To get into Whole Foods, some brands are reformulating away from allulose, while other brands like Keto Pint are giving up Whole Foods because allulose just makes the eating experience that much better,” said Kristoffer Quiaoit, founder of Good Journey Donuts.

Quiaoit said he chose to use Non-GMO Project verified allulose derived from corn in his formulations because “it tasted like sugar, functions similar to sugar in bakery applications, is easier on the gut than sugar alcohols, and is low-glycemic.”

Some shoppers shy away from the sweetener for several reasons, he said, noting it’s produced with a genetically modified enzyme and it's sourced from corn. 

“In addition to that, the name allulose sounds like either a sugar like sucrose or an artificial ingredient like sucralose,” Quiaoit said. 

Within the packaged food industry, opinions are mixed. Recent LinkedIn posts sparked debate over the safety of allulose. Proponents like Quiaoit stand by its sensory and functional benefits as a sugar replacement as well the role it could play in reversing chronic health conditions. 

“If we are going to win the fight against sugar-driven diabetes and obesity, allulose gives us a great shot at winning over consumer taste buds,” Quiaoit said.

Deductions can be an overwhelming pain for growing CPG brands, often negatively impacting their cash flow. But not managing them properly can cost brands well beyond those lost dollars and margin points. Here’s a deeper look into how to take control and use deductions to improve your business. Learn more

The U.S. Federal Trade Commission (FTC) yesterday issued a report on the causes behind grocery supply chain disruptions during the COVID-19 pandemic. The report found that large market participants “accelerated and distorted” the negative impacts of supply chain problems to their favor. Here are the three key takeaways:

1️⃣ Grocery retailer profits rose and remained elevated, with food and beverage retailer revenues jumping to more than 6% over total costs in 2021. In the first three quarters of 2023, retailer profits rose even more, with revenue reaching 7% over total costs. These findings bring into question retailer’s assertions that price hikes at the grocery store are the result of their own rising costs. 

2️⃣ Large purchasers sought favorable supplier allocations, with some companies – primarily larger ones – re-imposing strict delivery requirements on their upstream suppliers at the height of the pandemic and threatening fines for noncompliance.

How does a Canadian food company make an entrance into the U.S.? One way is shopping itself at a major food show like Expo West. Sure enough, last week in Anaheim there were a number of maple leaf flag flying brands with their sights set on the American consumer.

🍿 Naturally Homegrown Foods brought its multiple varieties of kettle chips to the show floor along with its most recent innovation, a four-SKU line of kettle-cooked popcorn.

🧀 Cashew-based cheese maker Millsie had returned to Expo West for a second year to entice U.S. retailers to give the brand’s NEXTY finalist dips and spreadable plant-based cheeses a chance on-shelf. While Ohh! Foods said it was preparing to set up an operations hub in the States.

🥶 It's been less than a year since Mars acquired Kevin’s Natural Foods and it is still innovating, unveiling a new frozen entree set to add to the portfolio.

Hold onto your Froot Loops because California is debating a ban of artificial food dyes and colorings in public schools. The bill, proposed by Democratic state lawmaker Jesse Gabriel, being considered in the State Assembly would ban the sale or offering of food products that contain additives like red 40 or titanium dioxide, among others.

🥼 According to research studies, consuming the food colorings in question could be potentially linked to behavioral issues among children.

🏭 The bill could effectively change food maker formulations due to the size of the California state school system making it financially unfeasible for big companies to not comply.

😏 Gabriel is no stranger to this type of legislation. The state lawmaker was a sponsor of the California Food Safety Act signed into law that effectively banned four common food additives: red dye 3, potassium bromate, brominated vegetable oil and propylparaben.

Building brand awareness around a perishable product line has been a challenge for Haven's Kitchen, according to founder and CEO Alison Cayne. With its launch of shelf-stable aiolis, the New York-based company is set to expand into new retail channels, including online grocery, increasing access to more consumers.

🧑‍🍳 Nosh managing editor Monica Watrous caught up with Cayne at Natural Products Expo West to learn more about the new line extension and the brand’s mission of helping home cooks gain confidence. 

Watch the full interview on Nosh.

On this episode of CPG Week, Nosh managing editor Monica Watrous and senior reporters Brad Avery and Lukas Southard discuss the latest twist in Kellogg’s cereal drama involving an activist letter urging the Battle Creek, Michigan-based company to make good on a previous pledge to remove artificial dyes.

💰 Lukas unpacks snack pack maker Sunnie’s strategic funding round, Brad spills details on Liquid Death’s recent raise, and Monica sheds light on a new minority investment in Serenity Kids. 

🤩 The team highlights additional food and beverage brands snagging elusive growth capital. (Hint: A sparkling water brand has added some star power to its cap table).

Listen now on Nosh.com and subscribe to get a fresh episode every week.