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    Features

    The Story on Soy

    Soaring consumer awareness and the science to back it up is making soy the hot new functional food

    Related CONTENT
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    Ellen Schutt01.01.99
    Everywhere you look today, soy is the hot topic. Women's magazines are writing about it, Barbara Walters is talking to Michael Milken about it, the soy-based "Boca Burger" was a hit with both Oprah Winfrey and Rosie O'Donnell and even the FDA has a thing or two to say. For the first time since consumers learned that those big chunks in their Chinese food were made of soybeans, soy has the chance to "go mainstream."

    With the plethora of conversations today about the health benefits of soy-and less than 5% of soy production consumed by humans-the industry has nowhere to go but up. The pending health claim petition should amplify matters, focusing the spotlight on an industry that has the science and supply to back it up.

    To clarify matters though, soy isn't soy isn't soy. There are proteins and lecithin and isoflavones and concentrates and consumers aren't sure what's what and what's good. Here remains an education obstacle to be overcome.

    Speaking of obstacles, the taste and texture issue is still a big one. Consumers associate soy with tofu and soy milk, neither of which they find particularly appealing. And while they're interested in attaining the health benefits, many may not be willing to do it at the expense of taste.

    Internationally, the market is vastly different. In Asia, soy is everywhere. As a matter of fact, the health benefits of soy now being touted are a result of the good health historically enjoyed by the Japanese. Meanwhile, in Europe, soy would be nowhere, if certain consumer organizations had their way. The GMO (genetically modified organism) controversy continues and the end is nowhere in sight.

    Consumer Awareness Top Trend



    In terms of the overall market, the key factor influencing the business right now is the increasing consumer awareness of soy and its health benefits. Stephen Buchheim, Marketing Manager at soy supplier ADM, Decatur, IL, commented on this. "Ten years ago, soy was almost a secret that many of our customers didn't want to tell consumers about," he said. "Now that has almost completely turned around."

    Steve Snyder, Director-Commercial Development at Monsanto, St. Louis, MO, agreed. "The primary attraction to soy today," he said, "is the health benefit story. There is a growing awareness about isoflavones and soy protein and the connection between the two to deliver health benefits. The areas where soy may have an impact-like improved cardiovascular health, reduction of hot flashes and osteoporosis-are already on many consumers' radar screens."

    "In the soy industry, there are really no negatives in the U.S. right now," said Linda Wilson, General Manager of Solnuts, Hudson, IA, a manufacturer of dry roasted soybeans. "We've had nothing but positive press recently."

    And who's driving this awareness? "It's a women's world," said Ed Coco, President, Protein Technologies International, St. Louis, MO. "More women die from heart disease, but they think they die from breast cancer," he pointed out.

    And women are the ones who read magazines and watch Oprah. "People know more about the connection between soy and menopausal symptoms than about soy and cholesterol lowering because women do a better job of finding health information," said Laurent Leduc, International Marketing Manager at SoyLife, Minneapolis, MN, which manufactures "SoyLife 25," an isoflavone concentrate. "In addition," he said, "the 40+ market has been a key target for promotion by vitamin companies and this too has raised awareness."

    Linked to consumer awareness is the strong science behind the benefits being touted. Dr. Carl Hastings, Executive Vice President at Reliv, St. Louis, MO, which recently introduced "SoySentials," a soy-based women's supplement, commented, "The reason that soy has grown as much as it has is the great amount of scientific research being done. A staggering amount of research that has come forward in recent years."

    Tying everything together was Charles Worrall, manager-Health & Nutrition Group, Eridania Bghin-Say, parent company of Central Soya, Fort Wayne, IN. "There are a number of factors coming together right now," he said. "The first is demographics: as the population ages, awareness of health issues increases. The second is the science behind the products; soy science has come of age in a whole host of areas; thirdly, we now have a regulatory climate that allows responsible communication of benefits if you have scientific documentation. Prior to the Nutritional Labeling and Education Act in 1990, there were no real options; it was either a food or a drug. Now the regulatory arena is much more receptive to allow responsible communication. This is definitely proof that a transition is starting to take place in our food systems."

    It's Not Just Tofu Anymore



    Now that consumers are aware of the health benefits of soy, the next step is introducing them to "mainstream" ways of incorporating soy into their diets. The jury is divided about whether this should entail adding soy protein to existing foods or developing new or better tasting soy foods, but overall the challenge is to improve soy's perception in the public.

    "We believe the challenge for food manufacturers is to try to create a unique and positive identity for soy," said Jeffrey Worthington, Director of Consumer Industries Practice at Arthur D. Little, which is part of the Strategic Food Solutions joint venture with Netherlands-based TNO Nutrition and Food Research Institute. "The question is how," he said. "Soy has a negative perception in the Western world. At the end of the day, soy should be soy and not be a replacement for meat or milk. We truly don't understand what the consumer wants."

    "Generally I think it will take a while to get people to try tofu," said Dr. Hastings, "and while the continued publicity can only help, I think that rather than a major increase in tofu sales, we'll see other mainstream products-beverages and meal systems in particular-formulated around soy. Soy is already in a lot of things that people don't even know about; as the awareness increases, they'll start looking more for it."

    "It used to be that in the supermarket, there were two basic choices about how to get soy into your diet: tofu or soy milk," said Curt Roettig, Director of Sales at soy nut butter manufacturer Soy Nut Butter, Barrington, IL. "For most people, these were not options. The problem is getting people to find soy in a form they like; they are not willing to wade through the label and understand all the ingredients and which of them are soy."

    So the question is, do we fortify existing foods with soy or do we make better tasting soy foods? According to Monsanto's Mr. Snyder, "Most people want healthy, good tasting foods, not really 'medicines' if possible. Getting over the hurdles of improved taste and texture will be critical for soy foods to break into mainstream diets, but in general people are excited about having more food options to better manage their health and lifestyle."

    That said, however, companies will also be looking seriously at fortifying existing foods. With the proposed soy health claim only requiring 6.25 grams of soy protein per serving to make a health claim on the label (see more information about this below), it will be easy for manufacturers to add soy as an ingredient to existing foods. "It will become the next oat bran," predicted Mr. Roettig. "This doesn't have to be all bad," he said. "Here is a great opportunity for tofu as an ingredient. Consumers generally don't care what's in it as long as it tastes good."

    Central Soya's Mr. Worrall agreed. "Basically we're going to see an intelligent adaptation of mainstream foods using soy as an ingredient. You won't see true mainstream products at first, but rather bars, beverages, spreads and salad dressings. You'll see it in a nontraditional way in traditional foods," he predicted.

    Getting consumers to try these foods requires education though. According to Mr. Roettig, "General consumer knowledge on the health benefits of soy has not yet scratched the surface and we must as an industry help the education effort. We must make a concerted attempt to take soy to the next level."

    "This is a huge problem," agreed Edward Cabelera, Vice President-Marketing, at soy product manufacturer GeniSoy, Fairfield, CA, "along with the taste issue. We have to educate consumers about how to get enough soy in their diets in good-tasting ways. We are not promoting the health benefits as much as we should be. People need to understand what's going on."

    "While it is a challenge to establish the science behind these products, the bottom line is they sink or swim as foods," said Mr. Worrall in summary.

    To Eat Or To Supplement? That Is The Question



    There's soy nuts and there's nut butter. There's tofu and tempeh and miso soup. There's soy as an ingredient in a whole host of products that no one even knows about. And now there's isoflavone supplements. So what will the future hold? There will be a market for both functional foods and supplements in the soy world of the future, according to most suppliers. "There's a group that wants to take pills and a group that wants to obtain their health benefits from food; there'll always be a market for both," said PTI's Mr. Coco. "We are doing a project right now with the National Cancer Institute looking at concentrated soy isoflavones for prostate cancer prevention. We believe there will also be a market for OTC drugs or science-based extracts."

    "The value of supplements is becoming more evident in general with consumers and the question is, do people want isoflavones in powders, pills or food?" said Mr. Roettig. "In a layman's opinion, if you have no overriding health issues, eat soy in an attempt to eat healthy. If there is a specific issue that would be helped by a high dose of isoflavones, take the supplement."

    "Supplements are targeting a more health aware consumer," pointed out Deborah Garcia, Manager, Strategic Food Solutions. "They're higher up on the learning curve. To become more mainstream, soy must be in food form. People eat for enjoyment; pills don't deliver on that."

    The issue of isoflavones-whether in supplement or food additive form-has its own set of challenges. One issue is standardized testing. According to Mr. Worrall, "We need a standard method of analysis for isoflavones. The same samples can test for different levels of isoflavones by different methods (using different solvents). We need to standardize to be able to talk the same set of numbers. This is a technical problem that needs to be addressed up front."

    Another issue, at least in the mainstream food market, said Mr. Roettig, is food processability. "While the general consensus may be that people will choose food if they can, the question is how well can isoflavones be incorporated into foods? You then get into food processability issues; heating, shelf stability, dosage and flavor remain the main issues. Until food and supplement manufacturers work together and investigate the best way to proceed, this will remain an issue."

    The food versus supplement controversy changes once you cross international waters. According to SoyLife's Mr. Leduc, "In the U.S., the vitamin industry is well ahead compared to Europe. In Europe it is difficult to gain acceptance for tablets and capsules; Europeans are more interested in a healthy diet." This is where isoflavones have come into the picture, he said, telling the story of a baker who began adding isoflavones to his bread. "The baker was married to a woman who was going through menopause and in his words, 'was very difficult to live with,'" said Mr. Leduc. "Once she starting eating the isoflavones in the bread, her symptoms disappeared. The baker is now licensing his recipe for bread and cookies to other companies throughout Europe."

    In emerging countries as well, soy is a major source of protein, said ADM's Mr. Buchheim. "They have recognized the value of the complete protein in soy and it has become the protein of choice." He offered Cuba as an example. "Due to embargoes and economy, the Cubans have become masters at developing soy products," he said.

    Overall-around the globe-suppliers believed that there would be an increase in both isoflavone and soy protein popularity. "We are going to see the whole gamut of the positive nutritional benefits of soy realized," said Solnuts' Ms. Wilson.

    On the competitive scene, Mr. Leduc predicted more and more competitors would be jumping into the market. "A few years ago, we were the only supplier of isoflavones; in the last year four or five major companies have gotten involved," he said. "This is a good thing, however; it will help grow the overall market."

    This Too Shall Pass Touching on the global industry brings up the GMO issue, which has been a subject of major controversy in Europe. As a result of a concerted effort by Greenpeace, European consumers are very aware of-and resistant to-genetically modified soybeans, which represent the majority of the supply. While in the long run, everyone believes the issue will "blow over," for now the frustration level is high. "There has been a feeding frenzy in the popular press," is how Mr. Worrall described the situation. "These are understandable fears, but consumers need to read and learn about the science."

    "This is a very critical issue," said Monsanto's Mr. Snyder, "and one that the industry needs to continue to address. We must improve consumer understanding of this new technology to be successful. We are taking a proactive approach," he said, "and I think that with better education and thorough discussion, people will become more comfortable with these foods. This will play an important role in reducing barriers to commercializing new GMO soy-based products."

    Mr. Coco touched on the technology aspect. "We understand the concern about labeling and having the right to know about whether the product is GMO, but we don't like the prejudicial aspect. Soy has been singled out and it's not right. Biotechnology is a tool that will change the market as we know it. It's perfectly safe and there is a marketable value to saying that we are modified, as long as we explain the consumer value."

    The problem, said Mr. Snyder, is that the value to consumers has not been clear so far. "Up until now, genetic modification has been used to improve the agronomic traits for the farmer. The benefits to you and me have not been totally obvious. The next wave of products will also be beneficial to the consumer, possibly in terms of higher protein, lower unfavorable carbohydrates or increased isoflavone content. These developments will clearly lead to increased appreciation of the benefits of foods improved through biotechnology.

    For the future, "If you accept that the GMO situation will resolve itself, soy will become a bigger part of European diets; it will simply happen on a slower basis," said Mr. Buchheim.

    Mr. Worrall agreed. "It will be difficult to provide a GMO-free stream in the long run. The bioengineering is not done by greedy capitalists; there are real benefits to the consumers and we can overcome severe shortcomings in the overall food supply," he said. "In the short term this is a serious issue in Europe; in the long term, as other vegetables pour in, there will be no way to avoid this."

    In the U.S.-where GMO beans are also mainstream but not an issue-education and a good government system seem to be key. "In the U.S., companies like Monsanto did a better job of educating the consumer about genetically modified soybeans," said Ms. Wilson. "Some smaller 'mom and pop' stores have asked about it, but it generally has not been a big deal here."

    "Consumers in the U.S. are less concerned because they are comfortable with our system. We have the FDA and the USDA to protect us and consumers are confident that they do a good job," added Mr. Coco.

    The Health Claim Petition



    Without a doubt the biggest news in the soy market in 1998 was the soy health claim petition filed in May by Protein Technologies. In a quick recap, the claim, which was filed on May 4, requested that FDA authorize a health claim on the relationship between consumption of soy protein and the risk of coronary heart disease (CHD). Specifically, the claim is for 6.25 grams of soy protein per serving, with a daily requirement of 25 grams. FDA responded on August 12 with a statement that it had completed its initial review and would file the petition.

    On November 10, FDA issued its tentative conclusion in the Federal Register that there is significant scientific agreement to support the relationship between consumption of soy protein included in a diet low in saturated fat and cholesterol and the risk of CHD. The agency added that the strongest evidence for the effect of soy protein was provided by studies that measured the effect of consumption on total and LDL cholesterol. FDA does not, however, believe that the isoflavone component of soy is a relevant factor to the diet-disease relationship and concluded that the evidence supports a relationship between soy protein per se and reduced risk of CHD. As we went to press, the comment period for the ruling was still open and expected to close on January 25, barring any extension. According to industry sources, a final rule is expected in March.

    Overall-on a macro level-the industry is thrilled about the FDA response. "We are very happy with the health claim petition response," said PTI's Mr. Coco. "We received a quick answer from the FDA and we're delighted that they've decided to proceed."

    Mr. Snyder said the approval of the pending health claim should boost the whole industry, including the isoflavone business, which is already growing dramatically. "I think you'll see soy growing in everything from meat alternatives and soy beverages to better tasting soy cheeses and yogurts," he said.

    While overall satisfaction is high, there are of course concerns about the actual final rule. One is the comparison of soy products. According to Mr. Coco, not all soy-based products are the same and an alcohol extracted product has not been proven to be as good nutritionally as a water-washed product. "There just have not been enough studies done," said Mr. Coco. "Run the studies to show that alcohol-washed products are as good, but for now that data should be excluded."

    In terms of the isoflavone issue, Mr. Coco in a release earlier this year said that Protein Technologies was disappointed that FDA found the data submitted on the isoflavone component inconclusive. He now commented, "I think the scientific community will come back with comments about isoflavone levels. The data is pretty clean; there have been only two studies that demonstrates the isoflavone effect and one that disputes it, but there are more than 30 studies that show that soy isolate, with its naturally occurring isoflavones, reduces cholesterol.

    There are no studies that show that commercial alcohol-treated soy protein reduces cholesterol." "The FDA was not inappropriate in its comments," said Mr. Coco, "but soy isolate has been in the market for more than 30 years. Let's keep the food the way it is. The same health benefits may not carry over to food that is further processed or processed in a different way," he said.

    Central Soya's Mr. Worrall commented on the opposing viewpoint. "PTI thought isoflavones were necessary; we thought the protein would do the job; The proposed regulation just references the protein itself. Is the isoflavone enhancement secondary? We think so," he said, adding that the establishment of a claim for soy in general is significant. "I think the industry is taking the attitude, 'let's just get this through," he said. "It's possible there's communication going on now to elevate the claim," said Strategic Foods Solutions' Mr. Worthington. "The oat fiber claim did not start out as a beta glucan claim; it evolved into that. It will be interesting to see whether this claim changes. In general I think people in the industry are feeling pretty positive."

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