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Panera swears off artificial ingredients

CANDICE CHOI
AP Food Industry Writer

NEW YORK (AP) — Panera says it will remove artificial colors, flavors, sweeteners and preservatives from its food by 2016, a reflection of the growing distaste people are showing for such ingredients.

The chain of bakery cafes, which has about 1,800 U.S. locations, is making the pledge as part of a “Food Policy” it is unveiling Tuesday that outlines its commitment to “clean” and “simple” ingredients.

The announcement comes at a time when Panera Bread Co. is facing slowing sales growth and working to jumpstart its business through a variety of means, such as revamping the sometimes confusing way people order and get food and switching baking hours to the daytime to create a homier feel in cafes.

The unveiling of Panera’s sweeping “Food Policy” also underscores how positioning foods as natural has become a marketing advantage, regardless of whether it brings any nutritional benefits. Part of the attraction for customers is that they feel better about what they’re eating, sometimes because they don’t feel as guilty about how many calories they’re consuming.

Chipotle, for instance, has gained in popularity in part by portraying itself as a more wholesome alternative to traditional fast-food chains like McDonald’s. Even Subway recently said it would stop using azodicarbonamide in its breads. The ingredient was dubbed the “yoga mat” chemical after a petition by Vani Hari, who runs FoodBabe.com, noted it was used to make yoga mats.

Still, declaring foods as being natural or free of artificial ingredients has the potential to invite criticism and even legal troubles.

A lawsuit filed in November, for instance, alleges that Whole Foods Market uses a “spectacular array” of artificial ingredients in some of its store-brand products, despite the grocer’s promise that the products contain “nothing artificial.”

Panera also isn’t swearing off genetically modified ingredients, another issue that is gaining attention in certain circles. Unlike Chipotle, which says its menu will soon be free of GMOs, Panera uses too many different ingredients to be able to make that claim.

And neither chain has any plans to stop selling fountain sodas from Coca-Cola and PepsiCo, even though the drinks are sweetened with high fructose corn syrup.

As for the rest of its menu, Panera says it’s about halfway through the removal of artificial ingredients. It’s still looking for ways to removes the artificial colors used in its bakery icings, for instance, and is testing a smoked ham in select markets that doesn’t use artificial preservatives.

“We decided it was time to put all this into a clear and concise policy,” Ron Shaich, Panera’s founder and CEO, said in an interview.

Ten years ago, for instance, Panera announced that it would use chicken raised without antibiotics, a move Shaich said helped significantly drive sales.

Panera’s new policy also states the chain’s commitment to “transparency,” meaning it will make it easy for people to see the ingredients and nutritional content of its food. It also says it will work to have a “positive impact” on the food system, such as by supporting North American suppliers whenever possible.

Whether the new policy helps attract more customers is yet to be seen.

Last year, Panera’s sales rose 2.6 percent at company-owned locations open at least a year. That was down from 6.5 percent in 2012 and 4.9 percent in 2011.

This year, the St. Louis-based company is forecasting sales growth of 2 to 3.5 percent.

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Follow Candice Choi on Twitter at @candicechoi

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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