5@5: USDA keeps carrageenan on National List for organic | Dairy woes hit Organic Valley5@5: USDA keeps carrageenan on National List for organic | Dairy woes hit Organic Valley

USDA defies advisers, allows carrageenan to keep organic label

Certified organic products can continue to contain carrageenan, an ingredient that’s extracted from seaweed and used as a thickening agent or emulsifier in ice creams, high-protein beverages, and other foods and beverages. The USDA made this decision despite a recommendation from the National Organic Standards Board, which voted in late 2016 to drop carrageenan from the list of approved organic ingredients because of concern related to animal studies that suggested it may cause intestinal troubles, and the existence of alternative ingredients. But USDA says that it continues to be a safe and necessary ingredient. Read more at OPB…

Despite $1.1 billion year, Organic Valley posts $10 million loss in 2017—its first in 20 years

Business grew more than 4 percent and gross sales topped $1.1 billion, but the issue of excess supply that’s plagued the organic dairy industry, plus price pressures and a slowdown in sales growth, contributed to a $10 million loss, executives of the cooperative said at an annual meeting today. Read more at La Crosse Tribune…

Dirty Lemon is disrupting distribution

Food and beverage brands communicate with consumers via websites, social media channels and apps. But what about text? Beverage brand Dirty Lemon has leveraged text message to build a cult following for its luxury wellness beverages that feature trendy ingredients like collagen, charcoal and ginseng. Read more at MSNBC…

Related:3 things to know about Organic Valley’s newest solar project

J.M. Smucker to buy Ainsworth Pet Nutrition for $1.9 billion

In the second pet food acquisition in just as many months, J.M. Smucker announced it will buy Rachael Ray dog food maker Ainsworth Pet Nutrition. In February, fellow CPG giant General Mills got into the fast-growing premium pet food business with its acquisition of Blue Buffalo. While it’s building its pet portfolio, J.M. Smucker may look to sell its baking business, which includes the Pillsbury brand. Read more at Reuters…

How organic wine finally caught on

What can we learn about new category creation from the sluggish adoption of organic wine—and the surprising success of a related category, biodynamic wine? Organic wine was not embraced by retailers or distributors, even as the number of both grew, and it had a reputation for poor quality. Biodynamic wine, however, has a strong reputation for quality. Read more at HBR…