Matt Dusi, Wells Fargo Sector Manager, Fresh and Frozen Fruits and Vegetables
Believe it or not, food represents the single largest component, by weight, of municipal solid waste reaching landfills and incinerators in the U.S. Bottom line, the U.S. is wasting up to 40% of the food produced in the country. How, exactly, did we reach a point where the U.S. annually sends more food to the landfill than total annual food quantities consumed by many nations?
Tim Luginsland, Wells Fargo Sector Manager, Grain and Oilseeds
Chris Eggerman, Sector Analyst, Grains, Crop Inputs, Forest Products
Traditional meats such as beef, pork, and chicken are the dominant protein sources in the U.S. and also in most other developed countries, and account for an estimated 30% of the calories consumed globally. However, alternative protein sources — plant-based sources, lab-produced “meat”, seafood substitutes, and insects — are becoming increasingly popular.
Lee Ann Pearce, Wells Fargo Sector Manager, Winery, Vineyards, and Tree Nuts
Wine in a can is not a new concept, having been around for some time, however, it’s taking on new life as the wine industry adapts to ever-changing consumer preferences. As baby boomers age out, and the millennial generation ages in for alcohol consumption, it’s apparent that wineries are working to keep pace with this physically active and environmentally conscious consumer group. Millennials value portability and ease of recycling, but don’t wish to sacrifice quality and product authenticity in the process. Winemakers are clearly listening to their customers, since the number of premium wine brands that are embracing the packaging of wine in cans is increasing.
David Branch, Wells Fargo Sector Manager, Specialty and Non-Grain Crops
The U.S. Food and Drug Administration (FDA) has released its long-anticipated, new and improved nutrition facts label for food and beverages. The established date by which manufacturers will be required to comply with the new requirements is July 26, 2018, although there is speculation that the implementation may be delayed by the U.S. Department of Agriculture (USDA). According to the FDA, smaller manufacturers with less than $10 million in annual sales will be granted an additional year for compliance. Foreign manufacturers that export packaged foods into the U.S. will also have to comply with the new requirements for relevant exports.
Scott Etzel, Wells Fargo Sector Manager, Protein
Courtney Buerger Schmidt, Wells Fargo Sector Analyst, Protein and Dairy
Changes are taking place throughout the food industry to address an increasingly important generation — the millennial. Born between 1977 and 1992, millennials have now surpassed baby boomers, born 1943-1960, to become the country’s largest, living generation. According to the latest U.S. Census report, millennials, totaling 83.1 million, now represent one-quarter of the U.S. population, with boomers totaling 75.4 million.
Colin Guheen, Wells Fargo Sector Manager, Packaged Foods, Restaurant, and Food Retail
Chris Innes, Wells Fargo Industry Risk Associate, Packaged Foods, Restaurant, and Food Retail
You can’t smell fresh cilantro through your computer screen or feel the ripeness of an avocado on your smartphone. That is, until such technology is developed. Over the next decade, as online shopping evolves as the fastest growing channel in the grocery sector, we will see if a true phase-shift emerges in food buying behavior, or if online grocery shopping plateaus and becomes an occasional option for “stock-up” packaged goods.
Karol Aure-Flynn, Wells Fargo Sector Analyst, Specialty and Non-Grain Crops sector
Innovation is the hallmark of farming. Small and large farmers and other businesses throughout the agriculture value chain, from first stage processors to final packagers, are among the greatest innovators in history. The old adage, “necessity is the mother of invention”, was born out of the farming culture where crops and food items must be produced at a price that the market can support throughout cycles of commodity boom and bust.
Tim Luginsland, Wells Fargo Sector Manager, Grains and Oilseeds with research data contribution from Chris Eggerman, Wells Fargo Sector Analyst, Grains and Oilseeds
I vividly recall entering the first grade. It was a big step up from kindergarten because it meant a full day of school and that meant eating lunch at school. At lunch each day, the entire class would walk single file through the lunch room collecting a tray filled with food, except for one boy named Tim. He brought his lunch every day because he said he was allergic to flour. While today, we know this condition to be labeled celiac, back then it sounded devastating and scary. Our lunches featured lasagna, pizza, sandwiches, hamburgers, and hot dogs, along with desserts of cookies, cake, and cobblers. Tim’s lunch pail always contained prepared meats, hard-boiled eggs, carrots, and an apple or banana.
Rob Fox, Wells Fargo Food and Agribusiness Sector Manager, Dairy
Over the course of 2016, there were numerous media reports about weakening sales in the restaurant industry — particularly as it relates to publicly traded chains.1 Some analysts went as far as to call it a “restaurant recession.” This struck me as puzzling since broader economic indicators such as low gasoline prices, disposable income growth, and low unemployment rates, as depicted by the charts below, are typically correlated with an increase in dining out.
Matt Stommes, Wells Fargo Sector Manager, Poultry, Beef, and Pork Protein Sectors
Growing up on a farm, I continually observed the passion and hard work that my dad put forth to care for our Holstein cows and calves, serving as their nutritionist, doctor, physical therapist, and general laborer. He provided them maximum comfort, cleanliness, and timely feeding and milking, recognizing that giving the cows a better life typically meant better returns and maximized efficiency.