Dive Brief:
- Panera announced its Panera at Home line of nearly 50 packaged products will be free from artificial flavors, sweeteners, preservatives and colors by the end of the year, according to Business Insider.
- The restaurant chain will also adhere to the same deadline to remove these same additives from its menu items.
- Panera is making an "all-inclusive change" to its products, CEO Ron Shaich said. "We think in the supermarkets, it's even worse. I'll name names: Kraft, Campbell's, Nestle, General Mills — they've all done some form of it, but they'll do the flavor but not the colors, some lines but not other lines."
Dive Insight:
Shaich singles out startups for having transparency. But, with this action, Panera applies pressure to large packaged foods companies to undertake similar measures.
And while the challenges of removing additives from packaged foods are different than removing additives from the foods at Panera locations, Shaich said it is important to do it at the same time as the packaged food line is a growing part of the business. The line contributed $150 million to the company.
Panera's move is in line with trends already established in the industry, though what makes this move stand out is that it matches its previous announcement regarding its restaurant menu. This kind of cross-company commitment is effective in brand positioning.
The largest investment of the removal of additives in the retail line has been time and research, Sara Burnett, director of food policy and awareness, Panera, told CNBC.The company will utilize refrigeration to extend the shelf life of products such as soups and salads and natural preservatives such as rosemary extract to extend shelf life.