Interview Participants:
- Terry Stover: Senior Vice President of Special Markets at Riviana
- Peter Riddlebarger: Special Markets Account Manager at Riviana
Hello, I’m Beni Van Dam, Marketing Manager B2B for Ebro Ingredients, and in this inspiring conversation, I sat down at the end of March with Terry Stover and Peter Riddlebarger from Riviana, our sister company in Houston. During their visit to the Ebro Ingredients plant in Antwerp, we explored what is driving the food ingredients market in the U.S. and how these insights can prepare us for the future of food together.
Here are the key takeaways I will remember from this interesting interview:
- Growing Demand for Plant-Based Products: There is a clear trend in the U.S. toward plant-based foods, with increasing interest in alternatives to animal proteins, although the market share remains relatively small. Opportunities exist for rice and pulse products as this trend develops further.
- Importance of Open Communication and Relationship Building: Open communication about specifications and requirements accelerates the product development process. U.S. customers tend to be more transparent, while European customers may be more reserved. Strengthening relationships and fostering an advisory role for sales representatives in Europe will lead to successful long-term partnerships and can dramatically reduce go-to-market lead times of innovations.
- Impact of Regulatory Changes on the Market: Recent discussions around regulations, such as bans on lab-grown meat in certain U.S. states, illustrate how external factors can shape market dynamics. Staying informed about regulatory developments and adapting strategies accordingly will be crucial for ingredients suppliers and food companies to navigate the evolving landscape and identify new opportunities in the industry.
The Interview:
Thank you for joining me today. Let’s start with introductions. Terry, could you share a bit about yourself?
Terry: Sure! I’m Terry Stover, the Senior Vice President of Special Markets at Riviana. Our group focuses on the businesses beyond domestic retail brands, including exports, food service, bulk ingredients, military, and private label retail.
Thank you, Terry. And what about you, Peter?
Peter: Hello, I’m Peter Riddlebarger, the Special Markets Account Manager. Although I’m new to this specific area, I have a strong background in proteins and am eager to dive into the Ingredients side of the business.
Great introductions! What were your initial impressions of the Ebro Ingredients plants here in Europe?
Terry: From my past visits and our recent tour, I can say they are exceptionally well-developed facilities with first-rate technology. The processes for pulse product separations are particularly impressive.
Peter: I’m still getting familiar with the logistics and capabilities here. Observing the differences between the technologies used in the U.S. and Europe has been enlightening, especially regarding rice and pulse products.
Interesting! Have you noticed any key differences in production or treatment during your visits?
Peter: Yes, the processes for turning rice broken into flour are similar. However, the U.S. market hasn’t fully developed ultra-fine flours yet. The separation processes for pulse products are quite advanced here and new for me.
Are there trends in supply chain practices that you think could be important for the future?
Terry: Absolutely. The pandemic highlighted the need for a robust backup supply in the U.S., where companies historically operated on a just-in-time model. This taught us the importance of maintaining safety stock to ensure service continuity.
Peter: I think there are also immediate issues that can change what’s happening with supply chains. Certainly, the looming issues around tariffs could be important in terms of how we move goods around the world, and that’s going to bear watching. We’ve been very focused on a recent supply chain issue around eggs because of avian flu, which has created a shortage and high cost of eggs in the U.S., very extreme challenges, and that has opened up opportunities for some of the products we’re focused on selling, like pea protein as an alternative and replacement.
That makes sense! Are food suppliers open to alternatives like replacing eggs with plant proteins in their products?
Terry: Definitely! Many manufacturers are interested in how they can adapt their processes, and we’ve had several discussions with potential clients eager to learn.
Regarding sustainability, do you see differences in how it’s handled in the U.S. compared to Europe?
Terry: There are certainly varying perceptions. The Ebro Group does a great job of sharing sustainability practices globally. However, some companies have retreated from sustainability commitments for cost reasons, while others are driving regenerative agriculture initiatives.
Peter: It’s crucial to recognize that sustainability is impacted by regulations and consumer expectations, which can vary by region in Europe. The larger retailers in the U.S. often set higher standards beyond regulations, which helps drive progress across the industry and the nation. Additionally, consumer willingness to pay for sustainable products also affects what products make it to market. Consumers generally support sustainability as long as it doesn’t come with a higher price tag.
“Many manufacturers are eager to adapt their processes, and we’ve had several discussions with potential clients looking for plant-based alternatives like pea protein.”
Terry Stover
Let’s switch gears to clean label products. Is clean labeling also an important trend in the U.S.? How are you adapting as an ingredient supplier, and can you share any best practices in how this is communicated on packaging?
Terry: Our products align very well with clean label trends. Rice and pulse ingredients are great solutions in this regard, and the trend is ongoing in the U.S. Younger consumers prefer clean labels with words they can recognize. As we develop new products, we ensure they align with clean label requirements.
Peter: That’s right. We focus on clear communication regarding our bulk ingredient options. Our ingredient lists are straightforward, which simplifies the process for customers when labeling their end products. Customers like to see clean label solutions because it fulfills a growing consumer demand.
With plant-based proteins gaining traction, do you think the initial hype around meat alternatives has shifted? How do you see this evolving, especially in comparison to traditional animal proteins?
Peter: Plant-based is undoubtedly a growing trend in the U.S. However, it’s still relatively niche compared to omnivore diets. While demand for plant-based proteins is growing, and innovation continues, we shouldn’t overlook the fact that most consumers still consume traditional animal proteins daily.
Terry: Recently, there have been discussions around lab-grown meat bans in various states. It’s events like this that provide opportunities for alternatives like plant-based proteins, which cater to those adopting a plant-based or vegan lifestyle.
I’m interested in the U.S. regulatory landscape. How do you see it affecting the food industry compared to Europe?
Terry: Beyond regulatory frameworks, companies often drive specifications to stricter levels. Food safety standards, like GFSI, are similar across both regions. However, with the Food Safety Modernization Act (FSMA 2.0), there’s a greater emphasis on traceability in the U.S.
Peter: Key to note is that companies often enforce their standards even higher than regulatory requirements due to a risk-averse culture in the U.S., especially in sectors like infant nutrition.
Given the importance of relationships in sales, how do you see the partnership between ingredient suppliers and food companies evolving in the U.S. compared to Europe?
Peter: In the U.S., customers are generally more open about their specifications and needs, which fosters a collaborative environment. They seek solutions actively and value the input we provide. In contrast, European customers can be more reserved about sharing requirements, which can slow down the process.
Do you believe that greater openness from European customers could speed up product development?
Terry: Absolutely. When customers engage openly, it accelerates the process significantly. Understanding their needs allows us to align quickly on specifications, ultimately benefiting both parties.
Thank you both for your insightful perspectives today! As we wrap up, if you could introduce one U.S. food product in Europe, what would it be?
Peter: I would say the plant-based corn dog! It’s fun and gaining popularity. Also, protein waffles have been a hit at the expos.
What European dish would you recommend to an American?
Terry: The stew we had yesterday was delightful, and of course served with Belgian frites and mayonnaise!
What is one standout observation from your visit that you’ll take back with you?
Terry: I’ve enjoyed the walkability of cities like Antwerp, contrasting sharply with the distances in the U.S. where driving is often necessary.
Peter: I do agree and also the variety of flavors and local cuisines here is impressive and so different from what we have back home.
Thank you both for your insights today. It’s been a pleasure learning about your experiences and perspectives!
Peter: And you did a great job ordering the weather by the way! It must have had something to do with marketing…
Of course! I can manage this easily online via a digital platform. We have online platforms for everything in marketing you know. 😉
