Soy's Sensational Strides

A resurgence in popularity — and new USDA guidelines — are fanning soy's flames of becoming a mealtime staple.

This is a protein-rich story: Steve Demos, founder of WhiteWave Inc., the company credited with taking soymilk mainstream with its Silk brand, accepted the Lifetime Achievement Award from Naturally Boulder in September. During his acceptance speech before members of the organization dedicated to nurturing startup natural foods companies in Boulder, Colo., Demos recalled the early years of selling his homemade tofu door-to-door from the back of a van. That was the late 1970s, before soy was one of the most talked-about health foods in the country.

Fast-forward to 2002, when Dallas-based Dean Foods Co. acquired its remaining interest in WhiteWave and, in so doing, put the soymilk manufacturer's market value at $296 million, which has since translated into some $500 million in annual revenues.

While this may be the most high-profile soy success story, many more soy-based products have since captured the attention and the taste buds of the American consumer throughout the last 10-plus years. To wit: from 1996 to 2009, soy foods' sales increased from $1 billion to $4.5 billion, according to the Washington-based Soyfoods Association of North America (SANA).

What's more, soy foods have infiltrated just about every grocery category, from snacks and desserts to energy bars and meat alternatives. From 2000 to 2007, U.S. food manufacturers introduced more than 2,700 new foods with soy as an ingredient, notes Mintel. And though these products were once exclusively found in specialty health food stores, the Chicago-based researcher reports that more than three-quarters of soy food and beverage sales today are generated in supermarkets.

Where's the Soy?

Soy-based foods experienced spectacular growth following the U.S. Food and Drug Administration's (FDA) October 1999 announcement that soy protein helps fight coronary heart disease. Stalwart soy food supporters like Nancy Chapman, SANA's executive director, are hoping that history is about to repeat itself.

Next month, the USDA is due to release its new dietary guidelines. While the final version remains to be seen, preliminary feedback from the advisory committee indicates that the new guidelines will likely recommend a "plant-based" diet, one that emphasizes fruits and vegetables, but also includes moderate amounts of meat, eggs and milk.

"I think it's going to have a big impact," says Chapman of the new guidelines' effect on soy food sales. "Our goal is to begin a dialogue with consumers about incorporating soy into their diets to help meet those guidelines. The American public has to feel comfortable making changes."

Where both SANA and the consulting firm Soyatech Inc. see the biggest growth potential for soy is smack-dab in the center of the American family's dinner plate. "We think there is growth potential for good-tasting, innovative meat alternative products — including products sold as part of a prepared meal — [as well as] condiments; soy-based spreads and, to a lesser extent, energy bars with soy protein," predicts Joe Jordan, content director of Southwest Harbor, Maine-based Soyatech, a publishing, research and consulting company for the soybean and oilseed industries.

Soyatech co-publishes the annual Soyfoods: The U.S. Market with Schaumburg, Ill.-based SPINS. According to the 2010 edition, soy-based meat alternatives were the biggest growth category for soy foods last year. Sales in the category jumped from $621 million in 2008 to $636 in 2009. Chapman echoes Jordan's sentiments with regard to the tremendous potential for soy-based entrees, noting that many people are already fans of soy foods and don't even know it. She points to products in the frozen food aisle, like an Amy's Kitchen veggie bowl, which features a helping of soy, but doesn't necessarily tout it as the main ingredient on the package.

Energy bars were the only other soy food category that experienced growth last year, according to the Soyatech/SPINS study. The category, which already boasted significant sales of $780 million in 2008, reached $796 million in 2009, a 2.1 percent increase.

Soymilk Sales Take a Spill

While sales of virtually all soy-based foods surged for a time, some products — specifically soymilk and the soy cheese/ cultured soy/frozen soy dessert categories — have witnessed slower growth or even decline in recent years.

"Dairy alternatives had a rough year in 2009," notes Jordan. The 2010 Soyfoods: The U.S. Market study puts 2009 soymilk sales at just over $1 billion, down from nearly $1.1 billion in 2008. "Soymilk is by far the largest single subcategory, and WhiteWave's Silk brand is by far the largest single brand in soymilk - in all of soyfoods, actually. So the fallout from Silk's decision to stop using organic soybeans for most SKUs hit the entire subcategory," asserted Jordan, referring to Dean Foods' decision last year to remove the "organic" label from its product.

"The weak economy has also eroded sales of soymilk, which is generally priced at a premium to dairy," added Jordan, who also points to competition from other nondairy alternatives, such as almond milk and coconut-based products, which have taken a bite out of the category. A plethora of new and tasty healthful alternatives in the dessert and yogurt categories may have contributed to the decline of the soy cheese/ cultured soy/frozen soy desserts category, which experienced the biggest dip in sales: down 7.6 percent in 2009 to $206 million, vs. $223 million the year before.

Soy and Health

Turn on your TV, pick up a healthy-lifestyle magazine or visit a nutrition-focused website, and it seems that more often than not, soy is the hot topic of the day. Just how healthy is it? Inquiring pundits want to know.

Last month, Dr. Mehmet Oz, the celebrity doctor made famous by Oprah Winfrey, tackled the subject of soy on a segment, which noted that in the past decade, research on the health benefits of soy foods have produced more questions than answers.

While the scientific evidence to support the benefits of soy is inconclusive, Oz and the majority of nutrition experts influencing the American consumer are recommending soy in moderation as part of a healthy diet. "Soy protein is still a great substitute for animal protein and dairy, which is high in saturated fat," notes Oz.

Careful not to overstate the proven health benefits of soy, the SANA website offers similar advice: "At the very least, soy foods can replace less healthy foods that are high in saturated fat and cholesterol, and contribute to a heart-healthy diet. Soy proteins are high-quality proteins that contain all the essential amino acids in appropriate ratios needed for human growth and body maintenance."

Try It, Then Buy It

According to SANA research on consumer attitudes, the majority of U.S. consumers — 84 percent — perceive soy products as healthy. That's the good news for soy foods. The potential obstacle to sales is overcoming some consumers' preconceived ideas about taste. "The biggest challenge," says Chapman, "is that to some shoppers, soy sounds strange."

The solution, according to Chapman, is simple: sampling. "When somebody tastes soy and it tastes great, they will go back to the category."

Dean Panovich, co-founder of the edamame-based dip company Soy- Zen-Zay, couldn't agree more. For the past year, he and his wife have driven the nearly 600 miles from Shawnee, Kan., to Denver every two weeks to personally sample their spreads at Whole Foods stores in the Rocky Mountain region. "Our business model is controlled growth focusing on one market at a time," notes Panovich, who says customers constantly approach him at demos to say that they've seen his product, but never wanted to buy it until they tried it. "Once they try it, they'll continue to buy it for years," he asserts.

Getting customers hooked on the best-tasting soy-based foods is step one, says Chapman. Step two is educating customers about the nutritional bang they're getting for their bucks spent on soy. "The question of price always comes up," notes Chapman. "When Americans are buying something they perceive as healthy, they will spend more," she adds. This is where retailers can help customers understand the nutritional value of their soy food purchases.

Finally, as with most food categories, soy foods have to be convenient. "We continue to find that entrees for families in a hurry, who are looking to put something affordable and healthy on the table, are an important trend," observes Chapman. Another trend is soy-based drinks. Beverages are already convenient, and now they need to be healthful as well. As Americans shift away from soft drinks packed with sugar and calories, Chapman sees a nation gravitating toward beverages packed with nutrients and protein, like those made with soy.

NEW PRODUCTS

Some of the latest introductions and innovations in the soy-based food and beverage category are:

MorningStar Farms Introduces Hot & Spicy Veggie Sausage Patties

Spice up breakfast with new MorningStar Farms Hot & Spicy Veggie Sausage Patties from the Battle Creek, Mich.-based Kellogg Co. These patties have 78 percent less fat than traditional pork sausage patties, plus they contain 8 grams of protein per serving. The SRP for an 8-ounce box is $4.29. For more information, visit www.MorningStarFarms.com.

Soy-Zen-Zay Adds Two New Flavors

Shawnee, Kan.-based Soy-Zen-Zay presents two new flavors of edamame spreads: Ginger Wasabi Edamame Dip and Spicy Garlic Edamame Dip. Each 10-ounce tub of Soy-Zen-Zay Edamame Dip contains one-third of a pound of edamame, olive oil, tahini, lemon juice and other all-natural ingredients and spices. The SRP for a 10-ounce tub is $4.99. For details, visit www.soyzenzay.com.

New Super Hummus From Nasoya

Tofu innovator Nasoya introduces Super Hummus, which the Ayer, Mass.-based company says offers twice the protein and half the fat of the leading hummus brand. Super Hummus is made with high-protein soybeans and soymilk rather than chickpeas. Available in two varieties, Classic Original and Spinach Garlic, Super Hummus has an SRP of $3.99 per 10-ounce container. For more information, visit www.nasoya.com.

Hain Celestial Group Offers Ethnic Yves Cuisine

New from the Melville, N.Y.-based Hain Celestial Group is Yves Veggie Breast in Curry Flavor Vindaloo Sauce. Perfectly seasoned, this juicy yet firm "breast" is low in fat, high in protein, and rich in iron and zinc. Simply heat and serve for a traditional Indian meal. Details available at www.yvesveggie.com.

SoyJoy Reformulates Bars

SoyJoy recently revealed that its bars are now delicately baked to be fruitier and moister. Mission Hills, Calif.-based SoyJoy grinds whole soybeans and then mixes them with real fruit and a few other all-natural ingredients for an uncomplicated, natural, nutritious snack. Each flavor contains 130 to 140 calories, 4 grams of protein, and 2 to 4 grams of fiber. Blueberry and Banana are SoyJoy's two newest flavors, and all bars have an SRP of $1.29. For details, visit www.soyjoy.com.

Soyaworld Presents So Nice Vanilla Soymilk

Made exclusively with North American-grown non-GMO soybeans, this 95 percent organic soymilk is low in fat, and offers a smooth texture and delicious and creamy taste. Fortified with eight essential nutrients, including calcium, vitamins D and E, and magnesium, So Nice Vanilla Soymilk from Vancouver, British Columbia-based Soyaworld has an SRP of $3.49 to $3.69 for the 1.89-liter size. Visit www.soyaworld.com for details.