Business Bites: Cereal killer? Kellogg’s heiress speaks out against family company

Even as our forests burn, and microplastics suffuse our blood, and “experts” from YouTube University continue shaping policy … even with all that going on, people are still worried about food coloring. All right. Let’s talk about it.

Social media influencer The Food Babe just interviewed heiress Victoria Kellogg, who had some surprisingly incendiary things to say about her namesake. This comes after a sustained campaign by Hari against Kellogg’s for failing to remove potentially dangerous additives such as red dye No. 40 from products marketed toward children, even though they vowed to do so 10 years ago.

In other news, Lifeway Foods just rejected a takeover bid by Danone, calling it “opportunistic” — come on, Danone, at least take Lifeway to dinner first — and Kerry has acquired new technology to complement its existing lactase enzyme portfolio.

All that and more in this week’s Business Bites.

The Food Babe inspires Kellogg’s heiress to speak out against family company

“I would absolutely boycott Kellogg,” Victoria Kellogg, heiress to the Kellogg’s fortune, said in an interview with The Food Babe last week. “Kellogg, I’m really ashamed of you for doing this to me and my family after all of the things we have done. You have betrayed my family.”

Related:3 tips for labeling, claims from Ivan Wasserman – video

Food activist Vani Hari, also known as The Food Babe, recently interviewed Kellogg, who decried the company’s use of artificial dyes in its U.S. cereals. In October, Hari led hundreds of demonstrators outside Kellogg's headquarters in Michigan in an effort to persuade the company to fulfill its decade-old promise of eliminating these dyes, which have already been removed in countries like Canada. 

Kellogg's maintains that its cereals meet FDA standards, but the outcry continues to grow over the potential neurological effects of artificial dyes, highlighted by a recent California law banning red dye No. 3. It’s worth noting that Hari has been criticized by the American Council on Science and Health for operating without any relevant training or expertise.

Danone gets shot down by Lifeway Foods

Remember when French yogurt giant Danone offered to acquire kefir-maker Lifeway Foods for $283 million, or $25 per share? Well, Lifeway just told Danone to talk to the hand, which may not go over well, considering Danone already owns 23.4% of Lifeway’s shares. Nonetheless, the declining company described the offer as “opportunistic” and claimed that it significantly undervalued them. With an attitude like that, Lifeway must spend a lot of time scrolling Instagram posts about “knowing your worth.” That said, the brand has seen consistent growth, with record sales of $160 million in 2023.

Related:FDA reorganizes, modernizes with Unified Human Foods Program

In response to the lackluster proposal, Lifeway’s board adopted a “poison pill” shareholder rights plan designed to deter takeover attempts. The plan allows shareholders to buy preferred shares if anyone acquires 20% or more of Lifeway’s common stock.

Kerry Group acquires new tech for lactose detection

LactoSens, a lactose detection technology from Austria-based DirectSense, has been acquired by Kerry Group to expand its enzyme portfolio. The acquisition underscores the effectiveness of these biosensor technologies and should enhance the company’s ingredient solutions while offering manufacturers a more integrated approach to meet regulatory demands and improve efficiencies through real-time analysis. This move, in addition to other similar acquisitions, shows an ongoing effort by Kerry to improve its ability to produce lactose-free and sugar-reduced dairy products.

Financial terms were not disclosed, but they probably paid more than they would have for my stomach, which can also detect lactose in foods and beverages. Remarkable.

Ingredient Idol winners announced at SupplySide West

At SupplySide West, winners were announced for the inaugural Food and Beverage edition of Ingredient Idol, a competition that honors new standout ingredients. The contestants each had two minutes to win over a panel of judges — and SupplySide Food & Beverage Journal Content Director Audarshia Townsend, who moderated the event — with elevator pitches for a unique ingredient in either the food or beverage category.

Related:Hemp innovators take on public perception, regulatory hurdles in rising THC-infused beverage sector

The winners were:

Jeremy Appleton, director of medical and scientific affairs for PLT Health Solutions, claimed that victories like this only happen when you focus on continual improvement of the product.

“We distinguish ourselves by having ingredients that are very well differentiated and have compelling, science-backed values that speak to consumers,” Appleton said about Zynamite S, a water-soluble, taste-neutral ingredient derived from mango leaves that can enhance cognitive and sports performance. “We never stop publishing studies. We don’t rest on our laurels. We’re always looking for new avenues.”

Read more of our coverage of Ingredient Idol right here.

What Trump’s win could mean for food and beverage brands

America has cast its ballots, and regardless of whom you voted for or how you feel about the results, big changes are likely coming to the food and beverage space. John Foraker, co-founder and CEO of Once Upon a Farm, took to LinkedIn to discuss possible shifts in the regulatory landscape.

“Voters have spoken, and there are some things in the food industry that they are likely to get, whether they wanted them or not,” he wrote before outlining four key points he believes will come to pass in the next three to six months.

“The pace of all this change will likely be very fast, so strap in and get ready,” Foraker advised.