Uplifting Tales of Upcycled Foods

Such innovative products can create unusual hurdles. When asked what was one of Irvins’ biggest challenges, Gunawan said there was a shortage of skins a few years ago. Rich in omega 3s, protein and collagen, the skins are also purchased by European firms for their collagen content. “Our competitors were cosmetic companies,” he laughs. Irvins solved the issue by going directly to fish farms to secure its supply.

Flock Foods launched its product, Flock Chicken Skin Crisps, in 2019. “We put the product online and did $10 million in revenue in our first year and a half,” says Serena Xue, strategy and operations manager at Flock. “That was when we realized we had something.” The product achieved Upcycled Certification in 2023. It is now in some 6,000 stores.

Flock Foods’ primary challenge was figuring out how to keep up with the demand for the crisps. “We had to build our manufacturing process,” says Xue. “No one was doing anything like this, maybe because no one wanted to,” she said and smiled. One key was to small batch wok fry the skins.

Additional flavored versions have been added since. The product is now available at Sprouts, Albertsons, and Kroger, among many other retailers.

The concept of upcycling

When Irvins began its business in 2014, the term “upcycled” was unknown. They’re one of many companies using formerly discarded ingredients that could be considered “upcycled” without directly promoting them as such.

“A few years ago, we used terms like ‘salvaging,’ ‘co-streams,’ ‘valorizing ingredients’ and ‘value-added surplus product,’ ” says Jonathan Deutsch, professor and director of the Drexel University Food Lab, also board director emeritus of the Upcycled Food Assn.(UFA).

Their website, www.upcycledfood.org, reports that “A team of experts from Harvard Law School, Drexel University, World Wildlife Fund, Natural Resources Defense Council, ReFed and others officially defined ‘upcycled food’ in 2020 for use in policy, research and more.” Specifically, “Upcycled foods use ingredients that otherwise would not have gone to human consumption, are procured and produced using verifiable supply chains and have a positive impact on the environment.”

Deutsch says marketing people are excited about the concept, and R&D people “put their engineering hats on” to solve production issues. However, he jokes that quality and safety people start drafting their resignations in recognition of operational challenges.

A plethora of data supports the crucial promise of upcycling. For example, The World Counts website notes that from 2017 to 2050, a 70% increase in food is needed for the expected nearly 10 billion people on the planet. The website also has running clocks for estimated global food waste, time left to the end of seafood and the percentage of wild forests remaining.

The nonprofit organization ReFed estimates that 38% of all food in the U.S. “goes unsold or uneaten.” That amount is valued at $473 billion (about 1.8% of U.S. GDP) and produces annual greenhouse gas emissions equivalent to 30% of U.S. passenger vehicle transportation.

No single step in the food chain can increase available food by 70%. However, reining in that 38% of food waste (sources range from refrigerated milk spoilage to “tons of scraps” trucked from commercial food production processes) would contribute significantly toward meeting the needs of a growing population, relays Deutsch.

In one example, Drexel Food Lab worked with Bimbo Bakeries USA to better understand consumer expectations and shelf lives. The company had some $635 million worth of baked items returned one year due to products reaching their sell-by date.

Creating language to reflect upcycling accurately and positively is ongoing. “Waste is a social construct,” Deutsch explains. “What we do with food determines whether it is ‘food’ or ‘waste.’” Deutsch wants to reframe what people think of as recycled food waste to create processes and products for food waste prevention.

Food processors walking the talk

Dieffenbach’s Potato Chips proudly displays the UpCycled Certificate logo on its Uglies brand of Kettle Potato Chips.

“We use Upcycled Certified potatoes from failed farm crops,” says Bob Zender, marketing director for Dieffenbach’s. “The potatoes are misshapen, bruised, or the wrong size; other manufacturers have often rejected them.”

Food waste is prevented as the produce turns into kettle chips. “They must be processed in small batches with much hands-on labor to manage the imperfect raw materials,” adds Dwight Zimmerman, the company’s sales and marketing vice president. This increases production costs; however, “Consumers want perfection,” Zimmerman adds.

Zender lists the company's difficulties they overcame moving the new product to market. The name itself, “Uglies,” was one. They had to work to educate retailers about the quality of the product. A recent change in the package created a helpful paradox between the name and upscale graphics. There also were operational challenges to support a rapidly growing brand. Nevertheless, the company claims 25 million lbs. of potatoes have been “rescued” since the company’s inception in 2017.

“Obtaining the Upcycled Certified logo was a big win,” Zimmerman says. “It helps streamline our mission statement. And it may inspire other folks in the industry.”

The whole process is a mindset. “Beauty is only peel deep,” Zender wryly adds.

New consumer product categories, such as plant-based milks, create new ingredients with the potential for upcycling. “You know the wrung out oat pulp from making oat milk? That’s me, Upcycled Oaty!” explains the packaging of Seven Sundays’ Simply Honey Oat Protein Cereal. A character on the label adds, “Full of protein and fiber. Eat up…cycled!” The Upcycled Certified logo appears as well.

“The oat protein component has three times the protein of oats and twice the fiber,” says Emily Lafferty, director of operations at Seven Sundays. As a 2024 Nexty award finalist at the recent Natural Products Expo West, the cereal is off to a good start.

Lafferty admits there were operational questions. “How could we make the process economical? To improve ingredient stability, how could we keep production in line at our supplier’s manufacturing facility?” Seven Sundays partnered with contract manufacturer SunOpta to launch Oat Protein Cereal.

“Cereal making is complicated. Lots of R&D is required,” she says. "Our products align with consumer expectations around nutrition and product quality while adhering to our brand’s people- and planet-forward values."