Get All Access for $5/mo

For The First Time, Food companies Are Trying to Learn A New game Today many fear that it's the processed food itself that's making us unhealthy

By Jaspal Sabharwal

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pixabay

Let me start with an excerpt from an article on Big Food that was published by the Fortune Magazine in May, 2015: Say the following out loud: Artificial colours and flavours. Pesticides. Preservatives. High fructose corn syrup. Growth hormones. Antibiotics. Gluten. Genetically modified organisms. If any one of these terms raised a hair on the back of your neck, left a sour taste in your mouth, or made your lips purse with disdain, you are part of Big Food's multibillion-dollar problem. In fact, you may even belong to a growing consumer class that has some of the world's biggest and best-known companies scrambling to change their businesses.

The idea of "processing"—from ancient techniques of salting and curing to the modern arsenal of artificial preservatives—arose to make sure the food we ate didn't make us sick. Today many fear that it's the processed food itself that's making us unhealthy. Most of the established food companies, globally, have a history that ranges from 25 years to more than 125 years. For the first time since their inception, they are trying to learn a new game to sustain their growth and relevance in the market place. For the first time in the history of food, the disruption is being driven by the consumers themselves rather than the companies.

Savour this: Americans are increasingly saying no to soda; per capita consumption of carbonated soft drinks fell to a 30-year low in 2015, according to Beverage Digest. Shoppers worldwide are turning to brands they believe can give them less of the ingredients they don't want—and they are turning to smaller (rising) brands because conventional food giants don't have them. According to CB Insights, investors poured $3.3bn, into Consumer Packaged Goods (CPG) firms, up 58 per cent over 2014 and a whopping 638 per cent up since 2011. Traditional CPG companies are skewed toward conventional products; however, they aren't taking the slow-down lightly. They are either attempting to buy their way into the natural space, acquiring small natural-food companies or are radically changing their own product recipes or formulations.

Why is the existence of Food-MNCs being challenged by newage entrepreneurs and consumers?
The answer lies in the history of processed food. The history of food was shaped majorly during the period 1870-1970; this phase reflected the effects of inventions of the late 19th century; every imaginable process related to food, from pasteurization to frying to the invention of ice to refrigeration to basic preservation was devised during this phase. What makes 1870-1970 so special is that these inventions can't be repeated. The combination of preservation technology and fast logistics made food available for masses and most parts of the developed world had achieved foodequity by the late 1960s.

So what has changed now? In some ways it's a strange turn of events, the business model of mass-production of safe food by "processing"— from ancient techniques of salting and curing to the modern collection of artificial preservatives—is being challenged today as unhealthy and questionable. Most importantly food is unifying the world, to give you a simple illustration, turmeric is the most searched functional food in the U.S., as per Google.

India is still at least a decade away from achieving food-equity. However, India is not alien to ancient grains and nutrient-dense products, with the exception of millennials and Generation-Z, we all grew up on pure products and companies like Patanjali, Ayurved are clearly leading this shift in India.

(This article was first published in the December issue of Entrepreneur Magazine. To subscribe, click here)

Jaspal Sabharwal

Co-Founder, TagTaste Foods Pvt. Limited

Jaspal invests in and works with mission-driven entrepreneurs, companies, and teams who combine technology and human touch to deliver amazing consumer products and services. After 26 years of leadership experience in the consumer domain, Jaspal has joined hands with some of the world’s best minds and brands in the food and beverages domain to build a marketplace for food related capabilities, powered by trend-analytics and ethnography, the platform has been named TagTaste and is expected to be fully operational by February, 2017. 
News and Trends

Recur Club Announces Credit Offerings for Startups Beyond Series A and SMEs

In FY 24–25, the platform also plans to deploy an additional INR 2000 crores through its Recur Swift program for startups.

News and Trends

growX Ventures Launches Fund II with a Target Corpus of INR 400 Cr

Fund II aims to target early-stage and growth-stage investments, backing 20–24 startups in deeptech sectors. It plans to deploy INR 10 crore in seed and INR 20–30 crore in Series B rounds.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

News and Trends

Indian Venture Ecosystem Poised for Global Ascent: Recovery, IPO Resurgence, and 'Building for Bharat' to Define 2025

India's GDP is poised to scale from USD 4 trillion to USD 8 trillion over the next decade and will offer a playground that is remarkable for both founders and venture capital (VC) firms, said Pranav Pai, Founding Partner and CIO at 3one4 Capital.

News and Trends

Key Cybersecurity Trends to Track as Threats Evolve

India has lost INR 11,333 crore to cyber fraud in just the first nine months of 2024. Nevertheless, with increasing cyber threats and public awareness, companies are taking proactive steps to safeguard their networks and devices.

News and Trends

Uber Launches Moto Women in Bengaluru, Connecting Female Riders with Female Drivers

Uber Moto Women aims to ensure safety with real-time trip sharing, anonymised contact details, and RideCheck monitoring for irregularities. It also offers 24x7 priority support via Uber's Safety Helpline for women riders and drivers.