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Food Entrepreneurship andTesting Opportunities for Value-
added Producers in VirginiaJoell Eifert
Director, Food Processor Technical Assistance Program
March 30, 2009
VIRGINIA AGRICULTURE & FOOD ENTREPRENEURSHIP PROGRAM:WORKSHOPS FOOD-BASED BUSINESSES
Charlottesville, VA
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Product Development Success Developing product that fits your mission be
comfortable with your product! Keeping focus on products
Performing market analysis need not to be fancy Size of market
Growth rate of market
Barriers to entry into and exit from market
Competitors
Avoid me too concept
Understanding demographic of your consumer Providing specific consumer benefit
Fulfilling customer expectations
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Product Development Stages
Idea Stage
Development Stage
Consumer Testing Stage Packaging Stage
Shelf-life Testing Stage
Final Production Stage Test Marketing Stage
Commercialization Stage
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Product Development Stages
Idea Stage formulation of business plan Type of Product
Target Audience
Competition
Demand
Price of Product
Cost of Manufacturing of Product (facility,
utilities, ingredients, packaging, licensing andgovernmental fees)
Other Indirect Costs (advertising, phones,postage, transportation, insurance)
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2008 Trends
Going local great for specialty foods!(Replacing organic importance.)
Green/Eco-friendly Vegetarian Whole grain
Healthy Low-fat/low sugar/low salt Antioxidants Few additives
Superfruits go mainstream Cranberry, mangosteen, pomegranate
Hot and Spicy Hispanic/Mediterranean/Asian Kids the next gastronomic frontier
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Getting Help: Business Resources
VA Department of Business Assistance
Mission: promote economic growth byhelping Virginia businesses prosper
Accessing capital
Small business counseling
Workforce training
Business problem solving www.dba.virginia.gov
www.business.virginia.gov
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Getting Help: Business Resources
Virginia Small Business Development Centers Networkwww.virginiasbdc.org
Provides professional business counseling, training and informationresources to help grow and strengthen Virginia businesses
29 locations across Virginia Central Region
Regional center at James Madison University
Other offices in Charlottesville, Richmond, Warrenton,Middletown, Verona, Harrisonburg
Potomac Region Regional center at George Mason University
Other offices in Alexandria, Arlington, Fairfax, Sterling,Fredericksburg, Springfield and Warsaw
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Getting Help: Business Resources
SCORE (www.score.org)
Nonprofit association provides NO-COSTcounseling to help start-up a new business,
secure financing or operate, manage and/orexpand an existing business
Utilize retire business professionals
10 SCORE units in Virginia/1 in District ofColumbia
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Getting Help: Business Resources
Virginia Tech Business Technology [email protected]; telephone: (540)443-9290
Dick Daugherty, director Provides confidential strategic planning and
business development assistance
Helps with market analysis, businessexpansion plans at lower than market cost
Provide free information if business plan isused as student learning case
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Product Development Stages
Development Stage/Tasting Stage canbe long stage
Creation of the new product
Recipe standardization
Address Issues:
Safety
Quality Regulatory
Packaging
Shelf-life
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Time Effort vs. Outcome for Creation
Short development time usually less than 6months
Quick to market, but easily duplicated
Intermediate Term (1 year)
Difficult to duplicate
Long Term / Applied Research (2-5 yrs.)
Develop new technology
Patent or strong trade secret
Substantially financial burden
Possible substantial pay-out with duplication
almost impossible
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Recipe Standardization
Multiplying ingredients to make largerbatch may not work Convert all ingredients to weight
measurement Weigh on your own - best
www.gourmetsleuth.com has calculator
Multiply to get desired batch size
Experimental additions or subtractions maybe necessary
Jams and jellies notoriously do not scale-up
Experiment with cost cutting measuresf r n r iz i n if i l
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Recipe Standardization
Understand that brand substitution ofingredients may greatly affect productincluding flavor, shelf-life stability and
safety parameters
After standardizing recipe, make productmultiple times to determine repeatability
Streamline work station to develop mosteffective way of producing product usingmost effective equipment
Take meticulousnotes at every step
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Testing: Virginia Tech Department of FoodScience and Technology
Provide testing of food products for safety and quality
Act as process authority for acidified foods (accepted byFDA and VDACS)
Conduct Better Process Control School workshopsrequired for acidified food producers (planning for June)
Provide guidance on reformulation and product design
Provide technical guidance on safety and regulatoryissues governing food products
Assist with compliance with regulatory agencies
Nutritional Label Services
www.fst.vt.edu/extension/valueadded
www.fst.vt.edu
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Process Authority
Based on regulations, a person orinstitution with expert knowledge andexperience to make determinations about
the safety of a food process andformulation.
Required to maintain product
confidentiality Determines safety of processing
parameters based on food product
characteristics
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What are you looking for whenyou test my food?
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Safety Considerations:What Bacteria Need to Grow
Food
Acidity
Temperature Time
Oxygen Moisture
FIGHT BAC!
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What Bacteria Need to Grow Food
Acidity pH = Amount of acidity
Low acid food = pH > 4.6
Temperature
Time
Oxygen
Moisture
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What Bacteria Need to Grow Food
Acidity Temperature
Danger zone = 41F to 135F
Time No more than four hours in
danger zone
Oxygen
Moisture
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What Bacteria Need to Grow
Food
Acidity
Temp Time
Oxygen
Moisture
Major issue: Clostridium botulinum(botulism)
Canned Food
Low
acid canned food
pH >4.6
aw> 0.85
Not refrigerated
Acidified Food pH is decreased to
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What Bacteria Need to Grow
Food
Acidity
Temperature
Time
Oxygen
Moisture
Microbial Group Example aw
ProductsAffected
Normal bacteriaSalmonella species
Clostridium botulinum0.91
Fresh meat,milk
Normal yeast Torulopsis species 0.88Fruit juice
conc.
Normal molds Aspergillus flavus 0.80 Jams, jellies
Halophilicbacteria
Wallemia sebi 0.75 Honey
Xerophilic molds Aspergillus echinulatas 0.65 Flour
Osmophilic yeastSaccharomyces
bisporus0.60 Dried fruits
aw target = 0.85
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Potentially Hazardous Food
A food that requires time/temperaturecontrol for safety (TCS) to limit pathogenicmicroorganism growth or toxin formation
Examples:
Raw or cooked meat
Garlic-in-oil mixtures
Cooked vegetables Cut melons
Milk
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Canned Foods
Major issue: Botulism
Low acid food:
pH >4.6 aw> 0.85
Not refrigerated
Acidified Food pH is decreased to 0.85
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Acidified Foods
Low-acid foods to which acid(s) or acid food(s) areadded
Water activity (aw) greater than 0.85
Finished equilibrium (final) pH of 4.6 or below
Not Acidified Foods Acid foods (foods made with mostly acidic ingredients)
Fermented foods (will check if fermentation process is adequate)
Repacked acidified or fermented foods
Carbonated beverages
Jams, jellies or preserves
Product with a water activity below 0.85
Refrigerated or frozen foods
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Current Good Manufacturing Practices(cGMPs)
Code of Federal Regulations
(CFR - Title 21; Part 110)
Fundamental to food safety
Topics Personnel
Plant and Grounds
Sanitary operations
Equipment and Utensils
Processes and Controls
Warehousing and Distribution
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Regulations for Retail Food Products
Low Acid CannedFoods
21 CFR Part 113
Acidified CannedFoods
21 CFR Part 114
Meat and Poultry
9 CFR Parts 300-592
Vi i i D t t f A i lt d C
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Virginia Department of Agriculture and ConsumerServices (VDACS)
www.vdacs.virginia.gov
Getting Help: VDACS
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Getting Help: VDACSResources
Virginia Department of Agriculture andConsumer Services (VDACS)
www.vdacs.virginia.gov
Office of Food Safety and Inspection Assists in facility planning and layout Authorizes facility for food processing
Enforces food regulations
Divisions include: Dairy and Foods
Meat and Poultry
Consumer Affairs
Getting Help VDACS
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Getting Help: VDACSResources
Virginia Department of Agriculture and Consumer Services (VDACS) Office of Marketing Services
Virginias Finest Trademark Program Contact Olivia Wilson at [email protected] or call toll-
free 800.284.9452
VDACSVirginia's Finest Trademark Program102 Governor StreetRichmond, VA 23219
Virginia Grown Program direct marketing program for growers
Marketing Board News
Trade Event Notification
Grading Services
Connecting with Food Distributors
Getting Help: VDACS
mailto:[email protected]://www.vdacs.virginia.gov/vafinest/trademarks.htmlmailto:[email protected]8/3/2019 8 Joell Eifert-1
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Getting Help: VDACSResources
Virginia Department of Agriculture and Consumer Services(VDACS)
Office of Marketing Services
Organic Certified Programs Contact Catherine Cash at
[email protected] or call 540/377-2564
Good Agricultural & Good Handling Practices
Verification Contact Thomas Smith or Dennis Clary at 804.786.3548
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Virginia Department of Health (VDH)www.vdh.virginia.gov
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Helpful Resources: Virginia Departmentof Health
Virginia Department of Health
www.vdh.state.va.us
http://www.healthspace.ca/vdh (Food Safety) Inspection of prepare and serve facilities
Caterers
Delis
Restaurants
Cafeterias
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Helpful Resources: Federal RegulatoryAgencies
U.S. Food and Drug Administration(USDA)
www.fda.gov All products sold outside of Virginia with more
than 2% cooked meat
Food and Drug Administration (FDA)
www.fda.gov
Acidified and low-acid food product regulation
Products subject to inter-state commerce
Web site rovides re ulator hel and
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Basics of Product Development
Consumer Testing Stage: Neglected by small food processors Display new products in small grocery
stores/specialty stores (ex.: Fresh Market,Trader Joes)
Shoppers given sample and questions Price sensitivity Product positioning Physical attributes Purchase frequency Desired serving size Purchase intent and frequency
Actual sales after tasting reinforce need
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Product Development Stages
Shelf-Life Stage Retain product from production batches for
shelf-life
Hold at conditions as close to retail as
possible Components
Microbiological
Chemical
Organoleptic (Sensory)
Packaging Stage Protects product
Helps sell product
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Virginia Tech Nutritional Label Service
Label can be generated bytesting product ($$$) or byutilizing nutritional data bases($)
Producer responsible for content Software available
Virginia Tech will providenutritional facts panel usingcalculations and nutritional
data base Contact Joell Eifert for needs
Will require recipe and amounts
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Packaging Pointers
Choice of package hinges on purpose
Protective barrier from air/water
Visual aspects (Visual window, graphics)
Protection from breakage
Purposes may have inverse relationships
Material greatly affects price
Package choice greatly affects shelf-lifeand quality
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A Primer on Plastic
Polyethylene Most used plastic in world
Light weight
Inexpensive
Impact resistant Excellent moisture barrier
Poor gas barrier
Grease and oil resistance properties
Poor visual transparency Used in blow molded applications
(milk jugs)
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A Primer on Plastic
Nylon Very good gas barrier properties
Used with modified atmosphere and reducedoxygen atmosphere products (meat andcheese)
Low moisture barrier properties Polystyrene
Low moisture barrier properties
Low gas barrier properties
Can have excellent clarity
Ability to foam
Inexpensive and easy to use
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A Primer on Plastic
Polypropylene
Better vapor barrier than polyethylene
Better visual transparency than polyethylene butnot excellent clarity
Heat resistant up to 133C
Can be used for microwave applications
Polyester
Polyethylene terephthalate polyester (PET)
Fairly good gas barrier properties
Stable and strong but difficult to form
Transparency makes it plastic of choice inreplacing glass for many applications
Not good for light sensitive products
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A Primer on Plastic
Barrier Plastics Polyvinylidene chloride (PVDC)
Dow Chemical Company Saran
High gas barrier properties
High moisture barrier properties Flavor barrier properties
Ethylene Vinyl Alcohol (EVOH)
Outstanding gas and flavor barrier
properties Moisture sensitive
Usually sandwiched betweenpolypropylene
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Product Development Stages
Final Production Stage Time to make product for retail sale!
Test Marketing Stage
Introduce new product into a limited area Distribute in stages to progressively larger
areas (statewide, regional, national)
Commercialization Stage Sell to the institutional trade
Sell to large grocery chains
Co-packing may be merited at this stage
THE SPECIALTY FOOD ADVISORY
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THE SPECIALTY FOOD ADVISORYCOMMITTEE
Created by VDACS Commissioner, Todd Haymore, in2007
Appointed 11 members, knowledgeable about specialtyfood issues in Virginia Represent retailers
Specialty food producers
Food Science Department at Virginia Tech
Supplier side of the industry
Purpose - Advise VDACS on the marketing andpromotion of Virginias specialty food industry
Annual educational conferenceMarch 23-24, 2009 inCharlottesville, VA (Boars Head Inn)
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Joell EifertDirector, Food Processor Technical Assistance Program
Department of Food Science and TechnologyVirginia Tech
(540)[email protected]