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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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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
http://www.dba.virginia.gov/http://www.dba.virginia.gov/


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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
http://www.virginiasbdc.org/http://www.virginiasbdc.org/


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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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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
mailto:[email protected]:[email protected]


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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
http://www.gourmetsleuth.com/http://www.gourmetsleuth.com/


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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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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]


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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
mailto:[email protected]://www.vdacs.virginia.gov/vafinest/trademarks.htmlmailto:[email protected]


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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
http://www.vdh.state.va.us/http://www.healthspace.ca/vdhhttp://www.healthspace.ca/vdhhttp://www.vdh.state.va.us/


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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
http://www.fda.gov/http://www.fda.gov/


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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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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)
http://www.amazon.com/gp/product/images/B00032A154/ref=dp_image_0/002-7017307-0467225?ie=UTF8&n=3370831&s=gourmet-food


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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
http://www.alibaba.com/catalog/11302620/Microwavable_Disposable_PP_Food_Container.html


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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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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]

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