Canadian Food Business Winter 21/22

» The science of food and beverage ISSUE 1 • 2022

Functional foods

that go beyond the basic

KEEPING AN EYE ON INFLATION

New Canadian start-up spins gold out of a common mushroom

GUEST EDITORIAL

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What drivers of inflation should be monitored in 2022?

By Kyle Burak, Senior Economist, Farm Credit Canada

H

eadline inflation continues to trend above the Bank of Canada’s target of 2%, and expectations are for inflation to remain elevated into 2022 because of pressures originating from both supply and demand factors. Pent-up consumer demand is robust due to increased household savings and low interest rates. Canadian households’ chequing and savings account balances have increased 51% and stand $158 billion higher than at the end of 2019. The Bank of Canada’s cuts to their policy rate and programs to keep credit flowing have lowered borrowing costs, placing Canadian households in a stronger position to service debt obligations.

Factory shutdowns and supply chain disruptions have reduced global inventories, while various employees’ safety measures within plants have slowed line speeds. Despite the challenges, Canadian businesses remain efficient as productivity per employee is at record levels.

The reality is, with global economies re-opening and pent-up consumer demand, supply chains can’t keep up. To fill this gap, employers across all sectors are competing hard for qualified labour, resulting in higher wages and benefits.

Many Canadian food manufacturing companies are experiencing these challenges firsthand.

Unfilled orders of food are at historic highs.

Ramping up investments in equipment and/ or vehicles is difficult given global microchip shortages and shipping disruptions. These struggles to meet demand have led to higher prices

GUEST EDITORIAL

Food costs could get higher Before they subside

Food inflation is at the top of the economic news cycle.

Higher agricultural commodity prices and labor challenges are arguably the two biggest drivers.

The Western Canadian drought has caused a major decrease in grain, oilseed and pulse production of up to 30% nationally (40% in the Prairies).

Challenging crop growing conditions in Western U.S. and Central Asia have also contributed to tighter supplies and higher prices. Low water levels on the Colorado River have forced water restrictions for 2022, impacting farmers in Arizona, Nevada and parts of California and Mexico. Reduced water supplies in key agriculture regions should put further pressure on imported nut, fruit and vegetable prices in the new year. Livestock prices have been trending higher than their 5-year average in 2021 as the reopening of the economy led to stronger meat demand.

This turned into record-high meat prices at processing level.

Labour is a top concern throughout the food and beverage industry. At the end of the second quarter, there was over

98,000 job vacancies in food service and food manufacturing – up 34.9% and 63.2%, respectively, versus the 5-year pre-COVID average.

Food manufacturers seek to pass on cost increases from higher wages, and from commodity and energy prices, to keep their share of the food dollar. To date, many manufacturers have been fairly successful, passing on a net price increase of over 8.1% YoY through three quarters of the year. We are now seeing these higher costs make their way through the aisles, with food inflation ramping up in Q3 (Figure 1). Not all these cost increases have reached consumers, though, as companies generally attempt to periodically increase prices. If these cost pressures become long-lasting, then the pressure will grow on both the manufacturers and retailers to further elevate prices.

Figure 1: Food inflation started to gain steam in Q3 2021 Source: Statistics Canada (as of October 31, 2021)

CPI inflation quarterly average, year-over-year change Percent

5.0

All-items

4.0

Food

3.0 2.0 1.0 -1.0 -2.0 -3.0

1

2

3

2016

4

1

2

3

2017

4

1

2

3

2018

4

1

2

3

2019

4

1

2

3

2020

4

1

2

3

2021

There are, however, a few bright spots. Reference prices for some grains and oilseeds (corn and soybeans) have come down their summer highs. Animal protein prices at the farm and processing levels have come down their highs, too. Other commodity prices (e.g., wheat) remain much higher than normal. The higher loonie also offers relief to food inflation. Canadians rely on the supply of imported food, and the higher dollar softens the blow of higher commodity prices in some areas like fruit and vegetable products, breakfast cereals, sugar, snack foods and coffee. An increase in the exchange rate would be an advantage for domestic food companies importing inputs. Conversely, Canadian food exporters would lose some competitiveness in global markets.

We believe food inflation will remain elevated and possibly outpace the all-item headline inflation. As supply chain disruptions and labour challenges ease and the supply of agricultural commodities rebounds, we should record lower food inflation.

The difficult question is around the timeline associated with a return to average inflationary pressures. Only one thing seems sure: the current economic recovery comes with heightened uncertainty. Resiliency and productivity are two qualities of the Canadian agri-food supply chain that are essential to successfully control food inflation.

Kyle Burak, Senior Economist, Farm Credit Canada

C A N A D I A N F O O D B U S I N E S S.C O M

across the supply chain. We expect supply chain constraints to ease over time, but strength in consumer demand and elevated production costs should keep inflation running higher and thus higher consumer prices.

In response to the strong inflationary pressures throughout the economy, watch for the Bank of Canada to curb inflation. The Bank ended its quantitative easing program in October 2021, electing to keep its balance sheet stable and limiting money supply growth. The next step is an increase in its policy rate. Financial markets are currently expecting the rate to increase by as much as 1% (4 increases of 25 basis points) in 2022.

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NEWS BITES

Canadian Food Business partners with CIFST

Beginning in 2022, readers of Canadian Food Business magazine can expect even more insightful industry news as the magazine has partnered with the Canadian Institute of Food Science and Technology (CIFST). Building on a desire to offer Canadians the most reliable information, the two groups have come together on a platform for leading experts, innovators and scientists to showcase the latest trends, knowledge and developments that are changing the face of Canada’s food industry today. We’ll still be showcasing leading edge companies in the food and beverage space as we’ve always done, but with CIFST as a partner we’ll be able to tap into a pool of powerful industry insiders.

Plants or cow’s milk? It’s hard to tell.

NotCo, a food-tech company, is using AI and a team of chefs and food scientists to create a dairy-free, plant-based product that tastes, feels and functions like cow's milk. The international food tech company is expanding into Canada with the launch of its NotMilk dairy-free product. NotMilk is now available in British Columbia and Quebec in 1%, 2% and whole varieties, at a suggested retail price between $4.69 and $4.99. It will arrive on store shelves in Ontario in December.

Farming in the produce aisles

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In a bid to reduce the grocery supply chain carbon footprint, two Canadian grocers have taken a new twist on the traditional produce aisle, bringing the farm right into the store. The IGA in Montreal’s Saint-Laurent borough sells organic produce grown on its very own roof, one of the largest organic greenroof gardens in the country at 25,000 sq.ft. It includes 30 different vegetables, a variety of flowers and eight beehives producing 600 jars of honey a year.

Meanwhile, Sobey’s has taken a new leaf out of the vertical farming playbook and will be introducing in-store farming units to some of its grocery stores to quench consumer thirst for fresh ingredients. Working with Berlin-based InFarm, a hydroponics company, Sobey’s will roll out farm units that provide a controlled environments for growing herbs, microgreens, and leafy vegetables right in the store.

Researchers at the University of Toronto find nuts do not contribute to weight gain

University of Toronto researchers have found there is no link between nuts and weight gain. In fact, they found that a higher nut intake actually led to reductions in body weight. To land on this discovery, they gathered the results of 121 clinical trials and prospective studies, with over half a million participants. They then used a widely accepted system called GRADE (Grading of Recommendations Assessment, Development and Evaluation) to gauge the quality of the studies.

Tracking the genetic evolution of chickpeas for better crops

Food integrity study shows Canadians are unsure about the food system

A report from the Canadian Centre for Food Integrity (CCFI) shows consumers are confused about which way their food system is heading. While the 2021 Public Trust Research Report reveals that Canadians are interested in improving the food system, including food affordability, sustainability and transparency, at the same time a larger portion of study participants than the previous year said they were unsure if the food system was heading in the right direction. “Respondents do not feel they can confidently say that the food system is moving in the right or wrong direction because they simply don’t know what information to trust,” explained John Jamieson, President and CEO for CCFI. The research revealed the global pandemic has not affected trust levels among Canadians. Respondents indicated that they do not feel it was more difficult to access food during the pandemic, with some even saying it was easier. There was minimal mention of empty grocery store shelves with respondents indicating this was only for “hot ticket items.”

First-ever assessment of blue food environmental impacts

A study out of Dalhousie University shows that some oceansourced foods leave a lower environmental impact than others. The research looked at nearly three-quarters of global production and drew on studies reporting data from more than 1,690 fish farms and 1,000 unique fishery records worldwide.

Researchers found that seaweed, mussels and oyster production generated the fewest greenhouse gas and nutrient emissions, like phosphorous and nitrogen, and used the least land and water. Capture fisheries also resulted in few nutrient emissions and used limited land and water. Compared to farmed fish, however, the researchers found greenhouse gas emissions range from relatively low, for such species as sardines and cod, to relatively high for flatfish and lobsters.

“Our results highlight not only the large differences in environmental impacts between and within major sources of blue foods across these environmental stressors but confirm the important role that many blue foods can play in reducing the impacts of human diets,” says Peter Tyedmers, a co-author and professor at Dalhousie’s School for Resource and Environmental Studies.

Commonly eaten farmed finfish, such as salmon and carp, outperform other farmed blue foods on several environmental indicators, while most blue foods outperform chicken, which generates similar environmental pressures as tilapia, one of the more impactful blue foods assessed.

This new set of standardized metrics can be used to benchmark the environmental impacts of blue foods to steer future production toward lower emissions and resource use - a key part of the UN Sustainable Development Goals and ocean health.

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Two University of Saskatchewan researchers have joined a global team tracking the genetic evolution and migration of the chickpea for insights that could lead to more nutritious and adaptable varieties.

Bunyamin Tar’an and Amit Deokar of the school’s College of Agriculture and Bioresources are helping to sequence the genes of 200 Canadian chickpea plants.

“Chickpeas are one of the main protein sources for hundreds of millions of people — especially in South Asia, Africa and other parts of the world,” said Tar’an. “The research provides an avenue to support global efforts to develop chickpeas with even better nutritional value as well as more climate-resilient varieties.”

Funding for the study was provided by the Saskatchewan Ministry of Agriculture and the Saskatchewan Pulse Growers.

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FEATURE

One Canadian start-up has spun gold

from the common

white button mushroom

By Jana Manolakos CANADIAN FOOD BUSINESS VO L U M E 3 6, I S S U E 4 • 2 0 2 2

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C

onsumers today are demanding transparency when it comes to the ingredients in their food and beverages.

They're looking for healthy, sustainable solutions, but up until now, natural preservatives for these products were hard to find. Who would have thought that an ordinary mushroom held the key? Canadian start-up Chinova Bioworks did.

The food ingredient manufacturer grabbed hold of a unique niche five years ago, developing a natural preservative for processed food and beverage products extracted from the stems of white button mushrooms that improves the quality, freshness and shelf life of foods in different categories. The company says it’s a natural alternative that is sustainable, effective and works as a food safety solution without compromising taste, texture or appearance.

The journey for company co-founders Natasha Dhayagude and David Brown began in a home basement research lab in 2016 in Fredericton, New Brunswick.

They pioneered the use of chitosan, a mushroom fiber that they’ve trademarked Chiber. It offered a clean-label solution to food spoilage by inhibiting microorganisms

like mold, and it could achieve similar results to the traditional chemical preservatives that food companies are trying to replace.

They determined the optimal amount of white button mushroom extract to support a shelf life that was similar to synthetic preservatives and identified doses that would be affordable for food and beverage processors.

“We're really lucky to have had a lot of amazing support and we've leveraged a lot of different programs and leaned on a lot of grant funding to just kickstart the company,” Dhayagude says.

So, as soon they founded the company, the first program they participated in was IndieBio, a global venture capital company located in the US and Ireland. The IndieBio gave them access to a number of resources, including a lab facility from which they could build on their initial research and develop a viable product.

“We were able to pitch to different investors. We were able to talk to our first early customers to gain validation that this is why this technology was needed in the marketplace. And then (we had) a lot of pitch training,”recalls Dhayagude.

On returning to Canada, they leveraged federal and provincial funding programs like the Atlantic Canada Opportunities Agency, the National Research Council of Canada Industrial Research Assistance Program and the Canadian Food Innovation Network. And, they hired their first employees through local university co-op programs.

As a female entrepreneur who identifies as a visible minority, Dhayagude is on a mission to open opportunities for other women in STEM. “Creating these positions and empowering women really helps to promote representation to empower them to grow,” she says. “We've been collaborating with some amazing female-led companies within this space. It’s really been great to get their support and learn from the things they had to overcome to create change. And I’m just proud to say that to date our company is 90% women in STEM.” “Mushrooms are on the rise within the industry,” explains Dhayagude. “Both brands and consumers are starting to recognize the health benefits they’re offering. But, what we find, especially within the ingredient space, is that they're a great source of protein or macronutrients.”

According to Mushrooms Canada, an industry trade association, there are more than 100 mushroom farms in Canada. More than half (52%) of mushroom production is in Ontario, 39% in British Columbia and the rest comefrom the remaining provinces.

Nearly 300 million lbs. (146,000 tons) of mushrooms are grown in Canada each year.

Most are sold fresh, some are canned. Out of these, the most popular among consumers is the White Button.

During harvesting, a large portion of the fungus stem is left behind and discarded

by farmers. For Chinova, that is where the opportunity lies.

The team connected with farmers to collect the leftover stems. Dhayagude explains, “Our mission really has been to provide value throughout the food supply chain, right from collecting that mushroom stem from those farmers, which would otherwise be wasted, and then transforming it into that commercially viable ingredient that can then be sold to brands and then can be included on a label that will provide that end transparency and food safety solution.”

Gaining acceptance for mushroom extract as a natural preservative on product labels has had its challenges. “We get a lot of questions and work really hard to educate our clients and customers. We really push to showcase the efficacy because there are limited options when it comes to natural preservatives and limited ways in which you can label.” The company provides information sheets to clients to help them respond to consumer questions.

The good news is that a lot of Chinova’s clients are innovators who are already disrupting the plant-based dairy and meat landscape. The company supplies a number of innovative mushroom protein alternative companies and has seen an increase in demand for mushrooms in adaptogenic beverages that help the body cope with stressors.

“The pandemic has really accelerated the trend for food safety. For brands, keeping food safe is much more than just preventing spoilage. It has evolved into protecting flavour, texture and colour, and maintaining the overall quality of the final product over its shelf life.”

Riding on the surge of interest in functional foods, one can only imagine how much Chinova sales will mushroom.

It offered a clean-label solution to food spoilage by inhibiting microorganisms like mold, and it could achieve similar results to the traditional chemical preservatives that food companies are trying to replace.

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FEATURE

MoOove over milk,

plants are taking on the

traditional beverage space

By Jana Manolakos

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O

nce relegated to the far corner of the health food section, milk alternatives like oat, almond, peas and barley have come mainstream and have pushed the dairy industry into a tight corner of its own.

According to Nielsen data that looked at the food and beverage segments in 2020, US sales of oat beverages outperformed dairy milk, with a 212% increase in the 31-week period ending October 3, while dairy milk increased by 9%. It even outperformed almond milk, a market front-runner for years. In Canada, sales of alternative milk beverages increased by 20.9%.

Interest in plant-based foods continues to grow

At a conference hosted by the Canadian Institute of Food Science and Technology in October, Jenna Kuori, Business Development Manager for Plant-Based Proteins, Ingredion Canada, explained that sustainability, functionality and taste are key drivers for innovating in the plant-based alternatives space.

She referenced a 2020 Food and Health Survey by the International Food Information Council, which showed that 34% of consumers consider sustainability when purchasing food. “Sustainability is becoming increasingly important in terms of product claims and positionings,” she said. “It

encompasses products and processes that are, first, good for the planet, so they are environmentally-friendly and clean label. This includes non-GMO and organic claims, animal welfare and other ethical considerations, as well as food security.”

Second, she added, health and nutrition also drive consumer choices, with 43% of consumers in that same survey assuming that plant-based is healthier than non-plant-based.

“This includes enhanced and added nutrition, higher protein, and reduced sugar,” she explained.

And finally, taste is a major consideration when innovating in the plant-based space. “The product needs to deliver in terms of nutritional and plant-based requirements, while achieving superior texture, flavour, and mitigation of any off notes,” she says.

The landscape for dairy and dairy-alternative products in Canada has changed significantly over the last few years. Canada's Food Guide has pivoted from stressing the importance of dairy to adopting more plant-based and fruitand vegetable-based foods.

“And looking at the compound annual growth rate of product launches in Canada over the last five years, we see a 5% growth in milk-alternative products versus a 1.6% in traditional milk products,” adds Kuori.

FEATURE

Lesley Srivastava, a senior account manager for Canadian food processing giant Cargill, says that agriculture is According to Sylvain Charlebois, it spells responsible for approximately 8% of the trouble. Charlebois is a renowned expert world's total greenhouse gas emissions, on food distribution policy who leads the with about half coming from livestock and 2020 US sales Agri-Food Analytics Lab at Dalhousie half from crop production. “Diesel and gas of oat beverages University. are used to plant and cultivate, harvest outperformed dairy Canada’s dairy supply is managed and transport crops, producing CO2. milk, with a 212% through the Canadian Dairy Commission, Large quantities of natural gas are used to increase in the which sets quotas calculated on a monthly manufacture fertilizers that promote plant basis that balance supply with demand. growth.” Once applied, those fertilizers 31-week period However, Charlebois points out that produce nitrous oxide, a greenhouse ending October 3, recent trade deals signed with Asia and gas 300 times more dangerous to the while dairy milk Europe allow more dairy products to environment than carbon dioxide. increased by 9%. enter the Canadian market tariff-free.

“To reach our greenhouse gas reductions “These measures created a breach in by 2030, we need to find a way to balance our supply management system,” says that target with policy, profitability and Charlebois. “Which is why the Federal sustainability,” she adds.

Governmentopted to throw nearly $2 On another front, in 2020 almost 30,000 billion over eight years at dairy farmers. metric tons of California almonds made But the real menace may be on the domestic front, with their way into Canada. That’s good news for the industry, but consumers clearly longing for choice,” he adds. bad news for the environment. It takes over 8,637 L of water Charlebois believes that the surge in non-dairy beverages to grow 1 lb. of almonds, a costly endeavour in the face of is taking a heavy toll on farms and processing plants. “Saputo California’s water shortage. recently announced the closure of two plants, one in New For Dairy Farmers of Canada (DFC), their ethical and Brunswick and the other one in Trenton, ON. Meanwhile, sustainable practices are expressed in the Blue Cow logo. It’s Canada's largest dairy cooperative, Agropur, is facing financial seen on dairy products made from Canadian milk they say have headwinds. Difficult decisions are looming at Agropur and met high standards in animal care, food safety, milk quality and the storyline is all about how the market is flirting with plantsustainable production. based alternatives,” he says.

The industry recently teamed up with environmental And while a majority of younger consumers are leading the organizations to promote sustainability in the dairy sector trend on alternative beverages, in large part because of their aimed at improved farming productivity, waste reduction, belief in the value of sustainability, it may not be that clear cut. tree plantings and responsible resource management. The marketing campaign, Here for Tomorrow, features projects underway on Canadian farms working on sustainable outcomes.

Rob Kowal, president of Kriscor & Associates, a Canadian company providing functional and nutritional ingredients to food manufacturers, says the market for milk alternatives has contributed to a glut in innovative products entering the space.

From Canadian rock icon Bryan Adams’ investment in BC-based Bettermoo(d) to dairy giants like Gay Lea pushing coconut whipped toppings and newcomers like Not Milk, a pea protein and sunflower oil drink that claims to taste just like milk, next-generation producers are riding the wave of consumer demand for lactose-free and trans fat-free, easily digestible proteins and beverages, pushing milk products to ‘moove’ on over.

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What does the surge in plantbased beverages mean for the Canadian dairy industry?

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FEATURE

Communicating Health Claims for Functional Foods CANADIAN FOOD BUSINESS VO L U M E 3 6, I S S U E 4 • 2 0 2 2

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by Marcia English

I

n terms of the nutritional benefits they provide, not all foods are considered equal. Foods or food components that have been demonstrated to provide a health benefit beyond meeting basic nutrition may be described as functional foods.

The term was first promoted in Japan in the 1980s, and today Japan remains one of the most advanced functional food markets in the world. Although there is no consensus on the definition of functional food, they can be broadly grouped into three categories: (a) natural foods containing physiologically active components; (b) foods that have been enriched or modified with physiologically active or biologically active components; and (c) synthesized food ingredients that demonstrate a physiological benefit (e.g., indigestible carbohydrates).

A 2021 Mintel report suggests that demand and markets for functional foods continue to rise. Indeed, the current market in Canada is worth approximately CDN$13.93 billion and is projected to reach CDN$19.8 billion in 2025. However, the

development of functional food can be a risky process since some consumers have conflicting perspectives on whether functional foods are actually linked to health benefits or if they are primarily used as a marketing strategy.

Food labels that promote nutrition and health claims have also been criticized for containing misleading information.

These observations suggest there is more to be done to better inform consumers of the potential health benefits linked with consuming functional foods.

Health claims for functional foods: How are they established?

Health claims are statements that imply a link between consuming functional foods and a potential health benefit.

However, the lack of a universal definition for functional foods affects the level of the evidence needed to establish health claims in different countries. Thus, health claims alone are not sufficient evidence; understanding the level or the weight of the

FEATURE

Consumer response to functional food health claims

Recent reports from the scientific literature confirm that consumers are genuinely interested in health-related claims, but interest seems to vary depending on the type of functional food products. The presence of too much information and difficulty interpreting different health claims have been noted as factors that can negatively influence whether consumers purchase functional foods.

The successful communication of health claims is a concern that has also been raised among different stakeholders. Importantly, health claims find their true value when they are effectively used by manufacturers to communicate information about the positive health benefits of functional foods to consumers.

However, a further challenge for food manufacturers is to realize that consumers have different needs, and that information in health claims will only be of interest to different segments or groups of consumers.

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scientific evidence that forms the basis to support that claim is what’s important.

The establishment of health claims is a process in which a health concept related to a functional food becomes a health claim through many regulated steps. The first step involves a systematic literature review that gathers information about previous research of the potential functional food of interest. Then, product analysis evaluates the product’s quality and stability. Preliminary studies in animal models may also be useful as indicators of safety and the efficacy of the food or food components of interest.

Although animal studies are not reflective of realistic doses to be used in humans, they can be important to

help gain approval for human studies. Well-designed, controlled human intervention trials are the most effective approach to demonstrate the efficacy of functional foods. In these studies, participants are exposed to the potential functional foods of interest in a safe and ethical way, and the functional effect of the food is evaluated. Biological markers, components in our body that can be measured and evaluated, are used to provide physiological information, and are important to gather scientific proof about the effectiveness of the proposed functional food. Supporting evidence from laboratory experiments is also used to provide insights about mechanisms of action that explain the association between the consumption of the potential function food and the resulting health effect.

Finally, after acquiring government approval, the health concept is then considered a health claim. All the evidence that these various procedures provide are valuable in establishing health claims, which in turn help to validate functional foods. Indeed, the scientific rigor involved in this process will vary in different countries based on their regulatory frameworks. However, this is fundamentally what separates how well a functional food “satisfactorily demonstrates” a functional effect. Ultimately, in each country, this will impact the number of functional food products that are available in the marketplace.

In Canada, health claims can be grouped into two main categories: function health claims and reduced risk claims. Function claims refer to the beneficial effects that the consumption of functional foods or food components have on normal functions or biological activities of the body. On the other hand, reduced risk claims link a food or constituent of that food to reducing the risk of developing a dietrelated disease or condition. Ideally, labeling for these health claims should adhere to the current regulatory standards and should not over-state scientific evidence.

However, this ideal situation is not always what is observed in the marketplace, which can make it challenging for consumers who want to purchase these foods.

But as we well know, the factors that influence how consumers understand health claims can be complex.

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FEATURE

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More importantly, these intended consumers can play a role in stimulating positive responses about functional foods to consumers in other segments. Thus, the unanswered question about what influences consumer understanding of health claims for functional foods can only be addressed when we evaluate the individual consumer characteristics, as well as the functional foods themselves and how the health claims are communicated.

Individual factors that can impact how consumers respond to functional food health claims include sociodemographic factors, knowledge of nutrition information, familiarity with or awareness of functional food ingredients, country of residence (i.e., developing nations vs. developed), and consumer overall experience with food (pleasurable and happy versus unpleasant).

Although these factors are not controlled by food manufacturers, they play important roles in determining consumers’ responses to claims about functional foods and their willingness to purchase these foods. Conversely, factors related to products such as cost and the way in which health claims are communicated on these products are within the grasp of food manufacturers to change. Thus, strategies to improve consumer understanding of health claims can begin here.

For example, the use of short health claims on the front label of functional foods can be more effective to some consumer segments in generating a positive image in the consumers’ minds compared to longer claims. Other consumer segments might also prefer to have more information on active ingredients and their health benefits.

The takeaway here is that consumers are not a homogenous group. Research has also shown that when the strength of scientific evidence is conveyed using visual aids, consumer understanding of health claims also increases.

Consumer confidence in functional foods depends on the processes underlying the evaluation of claims. Thus, in the context of a growing interest to respond to the urgent concerns about communicating health claims, food manufacturers and policy makers have a role to play in being transparent and ensuring that health claims on functional foods are truthful and not misleading. Consumers are not a homogenous group, and so efforts to encourage more functional foods in their diets should be targeted at different consumer segment groups.

It may also be important for policies governing producers’ use of health claims to not only evaluate whether claims are deceptive or misleading, but also evaluate how well they encourage producers to disseminate new information about functional foods to consumers. On the path to optimized nutrition, it is also important to help consumers personally link the attributes of functional foods to the consequences of consuming them.

A 2021 Mintel report suggests that demand and markets for functional foods continue to rise. Indeed, the current market in Canada is worth approximately CDN$13.93 billion and is projected to reach CDN$19.8 billion in 2025.

Table 1. Examples of functional foods and their potential health benefits Name of food

Biologically active components

Potential health effects

Blueberries

Flavonoids and anthocyanins

May reduce the risk of cancers Protect cells from oxidative damage

Fermented dairy products (yogurt)

Probiotics, bioactive peptides

Improves immune response Helps reduce growth of pathogenic microorganisms

Salmon and other high-fat fish

Omega-3 fatty acid

Supports brain and eye health

Margarine spreads

Margarine spreads fortified with plant sterols

Reduction in cholesterol

Whole grains

Resistant starch and dietary fibre

Supports gut and cardiovascular health

Marcia English, PhD is Associate Professor in the Department of Human Nutrition at Saint Francis Xavier University, Nova Scotia

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