Functional Ingredient Removal - SR&ED Opportunities in the Food Industry
Written by:
Matthew Wilson, Technical Writer.
In July, Health Canada proposed changes to nutritional labeling that reflect a growing concern among consumers about sugar. The government’s proposed changes include making a distinction between sugars naturally present in food and added sugars, such as fructose, and including a % Daily Value listing for Added Sugar, with an upper limit of 100g. Before these changes are enacted, companies in the food industry might consider changing product recipes in order to lower added sugar content.
Removing a functional ingredient, such as sugar, is a familiar process to food industry
professionals. Over the past few years, many companies have looked to remove ingredients such as lactose and sodium from their products in order to meet consumer demands for healthier or allergen-free food, improved taste, or a simpler ingredient list. Unfortunately,
removing an ingredient from a food product or altering its chemical composition often results in unintended changes that can include reduced moisture content, difficulties binding ingredients
together, and an unappealing texture. The quality assurance activities undertaken to address these issues can lead to SR&ED-eligible work in the food industry.
Unanticipated changes in product quality as a result of ingredient removal may require a
company to perform additional testing or change existing processes, which can generate
additional expenses. For example, an attempt to remove gluten, a binding agent, from a product might mean introducing an alternative binding agent, but introducing that binding agent could cause issues with moisture retention and texture that then require further recipe alterations and
testing. These tests would, in turn, generate additional labour expenses, testing fees, and
materials costs. Because these additional tests are non-routine procedures, these costs can be offset through SR&ED tax credits.
Functional ingredient removal is just one example of work in the food industry that can qualify for the SR&ED program. Recognizing the SR&ED potential of these activities is key to enabling further product and process development.
