FroMo IFTSA & Mars Product Development Competition. Preliminary Proposal
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1 FroMo IFTSA & Mars Product Development Competition Preliminary Proposal February 1,
2 Product Description: FroMo is a better-for-you, vegan, and gluten-free frozen dessert bite. This carrot cake-flavored product made from a banana, carrot, and coconut milk base is wrapped in mochi dough and topped with a crunchy quinoa, nut, and seed topping. The mochi dough allows for easy handling and convenience, while at 110 calories per serving, the plant-based filling provides a nutritionally elevated alternative to ice cream (Figure 1). With its unique formulation, FroMo will competitively enter the market priced at $3.99 for 6 pieces. FroMo is the ideal permissible indulgence, appealing to consumers looking for a clean label snack or dessert alternative. Originality: FroMo was formulated with attention to surveys and future market trends. According to a consumer survey (n=291) we conducted in September 2017, over 62% of participants are interested in a banana-based frozen dessert. Additionally, 62% ranked vegan and 63% ranked gluten-free as extremely important when purchasing food products. Analysts at Whole Foods Market predict that in 2018, plant-based diets will continue to grow in the industry, and Nutrition Facts 6 servings per container Serving size 1 Piece (65g) Amount Per Serving Calories 110 % Daily Value* Total Fat 3g 4% Saturated Fat 2g 10% Trans Fat 0g Cholesterol 0mg 0% Sodium 55mg 2% Total Carbohydrate 17g 6% Dietary Fiber 2g 7% Total Sugars 2g Includes 4g Added Sugars 8% Protein 2g 4% Vitamin D 0mcg 0% Calcium 26mg 2% Iron 0.72mg 4% Potassium 282mg 6% Vitamin A 60% Vitamin C 4% *The % Daily Value (DV) tells you how much a nutrient in a serving of food contributes to a daily diet. 2,000 calories a day is used for general nutrition advice. Ingredients: Water, Banana Puree, Coconut Milk, Rice Flour, Carrot Puree, Maple Syrup, Almonds, Quinoa, Carrot Powder, Pumpkin Puree, Chia Seeds, Cinnamon, Agave Nectar, Monk Fruit, Salt Contains: Tree nuts Figure 1. FroMo Nutrition Facts consumers will be seeking out dairy-free dessert products [16]. FroMo takes advantage of the growing demand for non-dairy ice cream, which is predicted by Global Market Insights to triple from 2017 to 2024 [8]. FroMo is low fat, low sodium, and an excellent source of Vitamin A [19, 21]. It is a clean label product, free of artificial additives, preservatives, emulsifiers, or thickeners and also contains less added sugar and saturated fat compared to traditional ice 2
3 cream. All of these qualities allow FroMo to set itself apart from frozen desserts on the market, and appeal to the growing number of health-conscious consumers. Marketing: FroMo offers health-conscious millennials a delicious and more nutritious choice than traditional ice cream mochi products. According to the 2017 Future Market Insights report, plant-based ice creams are expected to see large growth in coming years with the category valued at $2.45 billion by 2027 [7]. According to marketing research firm IRI Worldwide, mochi ice cream sales increased 144% [13]. Mochi is a front-runner in the specialty ice cream segment, and FroMo provides consumers with a dairyfree, plant-based option. Our target market will be millennials seeking clean label, portion-controlled snacks and desserts. According to Mintel, millennials are more likely to snack than any other generation and present the most growth opportunity for this segment moving forward [6]. Whole Foods Market predicts consumers will continue to prefer transparency in the formulation and supply chain of their food products [16]. FroMo s marketing campaigns Table 1. Formulation and Functionality Component Ingredient Dry Weight/Serving (g) Functionality Frozen filling Banana puree 9.88 Product base Coconut milk 9.88 Stabilizer Carrot puree 9.06 Fiber and micronutrient Almond butter 1.98 Stabilizer Maple syrup 1.98 Sweetener Pumpkin puree 1.05 Fiber and micronutrient Monk fruit 0.17 Sweetener Cinnamon 0.27 Flavor Salt 0.10 Flavor Topping Popped quinoa 0.67 Protein Roasted almonds 0.44 Protein Chia seeds 0.11 Protein Cinnamon 0.01 Flavor Salt 0.01 Flavor Agave nectar 0.08 Binder, Sweetener Maple syrup 0.15 Binder, Sweetener Coating Rice flour 9.42 Product base Maple syrup 3.69 Plasticizer, Sweetener Carrot powder 1.63 Fiber, color enhancer Water Plasticizer Total will have a Full Disclosure policy, highlighting the use of ethically sourced raw materials, as well as eco-friendly production methods. FroMo s packaging will feature monk fruit, a lowglycemic sugar alternative, which has an increasing consumer preference according to CCD Innovation [18]. 3
4 Profitability: FroMo will compete in the Frozen Novelties and Frozen Snacks market segments, as classified by Mintel [15, 16]. The first year target market shares in these segments are 0.1% and 0.05% respectively, totaling to $7.89M (Table 2). FroMo will be sold at a competitive price of $3.99 per individual pack of 6 pieces with a 40% margin for the manufacturer, a 20% margin for the wholesaler, and a 40% margin for the retailer. Using a 5 year profit and loss statement, FroMo projects to break even in the first quarter of the second year, and an overall net present value of $6.73M. Table 2. Summary of Pricing, Profitability, and Competitive Analysis Expense of Market Size Market Dollars ($) Market Segment Market Share (%) Individual Pack ($M) Share ($M) Ingredients 0.68 Frozen Novelties 5, % 5.47 Packaging 0.05 Frozen Snack 4, % 2.43 Operational Expenses 0.10 Sum of Total Retail Sales 10, % 7.89 Distribution 0.20 Sales, Promotion and Administration Total Unit Cost 1.13 Manufacturer Price (+40% Margin) Wholesaler Price (+20% Margin) Retailer Price (+40% Margin) Profit Analysis Packs (M) Net Cash Flow ($M) Competitive Analysis Price per Serving ($) 0.10 First Year Mr. Mochi $2.08 Cumulative (5 Years) Whole Food Market s Self-Serve Mochi $ Initial Investment ($M) 1.5 My/Mo Mochi $ Average Yearly Sales Growth 15% FroMo $ Net Present Value ($M) 6.73 Payback of Initial Investment Year 2, Q1 Tofutti Cuties Dairy Free Ice Cream Sandwich Trader Joe s Dairy Free Mochi $0.62 $0.58 Processing: Raw materials will be received from approved suppliers and Certificates of Analysis (CoAs) will be requested for specific tests as needed. CoAs will contain lot number, date received, and expiration date (Appendix I). The glutinous rice flour, water, maple syrup, and carrot powder will be combined and kneaded at a temperature of 75 C in an evaporative mixing mill (Shanghai Bakenati International Trade Co. Ltd, Evaporate Mixing Mill) to form a translucent, sticky mochi dough with a moisture content of about 39% [3, 4]. 4
5 The carrot puree is cooked for 30 minutes in a jacketed kettle (Lee Industries, Jacketed Kettle) at 140 C to achieve caramelization [11]. The carrot puree is cooled to 24 C (FOODesign, Cryojet) before being homogenized with banana puree, coconut milk, salt, almond butter, maple syrup, cinnamon powder, pumpkin puree, and monk fruit in a blender (Quadro, HV0 Wet Mill & Emulsifier) to ensure a uniform consistency. This frozen filling mix is aged for 4 hours for stabilization and flavor development at 4 C before High Pressure Processing at 500MPa for 15 minutes (Hiperbaric, Hiperbaric 55), and churned (ROKK, RFE 200A) with 85% overrun to ensure a firm texture [10, 17]. The frozen filling is then further cooled to -18 C. The frozen filling is enrobed in mochi dough (Shanghai Longyu Electro-Mechanic Technology Co. Ltd, Mochi ice cream machine). Quinoa, roasted almonds, chia seeds, cinnamon powder, salt, agave nectar, and maple syrup are mixed (Amixon, VM). The mochi enrobed frozen filling is sprayed with water to ensure the topping adheres [1]. The finished product is packed in low density polyethylene trays and polyethylene-coated paperboard cartons to prevent desiccation [12]. The packages are subjected to metal detection, packed into cases, printed with the best-if-used-by date, and stored at -18ºC (Norpole, Reach-in-Refrigerator). Safety/Shelf Life: FroMo is manufactured under Good Manufacturing Principles (GMP) and a Food Safety plan. All hazards identified will be controlled through CCPs and Preventive Controls. CCPs are illustrated in Appendix I. Preventive controls include allergen cleaning to avoid cross-contamination, and verification of sanitation by a Pathogen Environmental Control Program. All ingredients will be sourced from approved, qualified vendors, including a monitoring program for pesticide residues and heavy metals. FroMo has an estimated shelf life of 1 year based on flavor and quality [9]. The water activity of the mochi, frozen filling, and topping are as follows, respectively: 0.96, 0.98, The mochi and frozen filling have similar 5
6 water activities, therefore moisture migration is of minimal concern. Future shelf life testing will focus on moisture migration between the mochi and the topping due to differences in water activity, as well as measuring ice recrystallization caused by temperature fluctuations [23]. Technical Problem Solving: Texture: A smooth and creamy texture without the use of dairy was achieved by using almond butter and banana puree in our filling. The filling was thoroughly blended to homogenize the base, and an at-home ice cream maker was used in processing to add overrun and reduce ice crystal size [5]. Coconut milk, with its high fat content, was added to stabilize and emulate the texture of dairy ice cream by creating a similar foam/emulsification [2]. The fat content of the almond butter also contributed. The result of these processes and ingredients created a viscous and rich frozen base. For the crunchy topping, a combination of almonds, quinoa, and chia seeds were used. These ingredients provide texture variation. The major technical challenge with these components was to avoid moisture migration from the mochi and the filling. Maple syrup was incorporated to make the nuts and grains impervious to moisture, preventing loss of texture and functioning as a flavor enhancer and binder for the coating. For the mochi, a sugar-free recipe was tested, but did not yield the desired texture. Varying amounts and types of sweeteners were tested to achieve a balance between chewy and sticky. The final sweetener chosen was maple syrup, giving the mochi color and the desired elasticity. Carrot powder was added to enhance the mochi color, flavor, and Vitamin A content. Maple syrup and water were also added as plasticizers. Flavor & Ingredients: Experimentation was used to determine the highest level of vegetable concentration to maintain the desired flavor. Roasting the carrots improved texture and flavor, 6
7 and reduced the water content. A nutty flavor in the topping was achieved by roasting the almonds and popping the quinoa grains before combining. All ingredients were chosen to create a vegan, dairy-free, gluten-free, naturally sweetened, and low fat product [21]. Processing: A small amount of water was added to the mochi to ensure topping adhered. Fully encasing the frozen filling in mochi made the final product more visually appealing for consumers, as well as making it easier to consume. Sensory Analysis: The overall liking (on a 9-point hedonic scale) was satisfactory. 60% of all participants (n=96) liked the product, while only 4% disliked it, for a mean score of 6.64 (±1.61). Despite the low fat percentage in FroMo (4%) and small scale processing conditions, the smoothness of the frozen dessert was Figure 2. Jar Analysis for Product Improvement well received by panelists with a score of 6.34 out of 9. We can expect improved textural results when the product is scaled-up, as this will allow for faster freezing at lower temperatures, therefore reducing ice crystal size. The overall carrot cake flavor was well liked with a high score of 6.81 and 6.64 for the flavor of the frozen filling. According to just-about-right (JAR) scale results, the product can be further improved by increasing the overall sweetness and flavor intensity of the filling. In addition, panelists found the mochi to quinoa topping ratio to be unsatisfactory (JAR>90%), and further reformulation was necessary. Taking into account the comments received, we conducted a final product formulation, fully enclosing the frozen filling in mochi and topping it with the quinoa crunch. 7
8 Appendix I: Process Flow Diagram and HACCP Plan CCP Process Step Hazard Critical Limit Monitoring Corrective Action 1 Verification Record 1 Kneading mochi Biological: Survival of vegetative pathogens 2 Internal temperature >75 C Calibrated thermometer used to measure temperature of every batch I, III, IV Thermometer calibration. Record review Temperature log Calibration log Corrective action forms 2 High pressure processing for filling Biological: Survival of vegetative pathogens 3 Internal pressure >500M Pa Pressure monitored for each batch II, III, IV High Pressure Ink Indicator Pressure log Calibration log Corrective action log 3 Cooling of filling Biological: Sporeforming pathogens 4 Temperature <5C Temperature monitored for every batch III, IV Thermometer Pressure log Calibration log Corrective action log 4 Metal Detection Physical: Metal Foreign objects <7mm All products pass through metal detector. Metal detector calibrated to proper sensitivity III, IV Metal detector Metal detector verification log Corrective action reports 1 Corrective action key: I: Increase cooking time, II: Increase processing time, III: Divert product, IV: Investigate cause of deviation 2 Pathogens include Salmonella spp. 3 Pathogens include Escherichia coli, Listeria monocytogenes and Salmonella spp. 4 Pathogens include Bacillus cereus and Clostridium botulinum. 8
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