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News for food business professionals

Highlights

Instacart’s Forecast Of Top Grocery Trends For 2021 Includes Keto

Among the grocery trends expected to gain prominence in 2021 – lower alcohol cocktails, bolder spices and condiments, greater selectivity by brand and store, etc. – is a dietary trend, according to the grocery delivery and pick-up service (San Francisco). Twenty-eight percent of those who tried a high-fat, low-carb keto diet in 2020 apparently liked it. Sales trends were consistent with the survey, as products with “keto” in the name saw a 72 percent increase in the Instacart marketplace. The 10 most popular keto products in the marketplace: KetoPint Salt and Caramel Keto Bar; Think! Keto Protein Bar – Chocolate Peanut Butter Pie flavor; Birch Benders Keto Pancake and Waffle Mix; Sundae Shoppe Keto Peanut Butter Fudge Ice Cream; Sundae Shoppe Keto Cookie Dough Ice Cream; Lenny and Larry’s Keto Gluten Free Chocolate Chip Cookie; Sundae Shoppe Keto Mint Chip Ice Cream; Epic Chicken Sriracha Protein Bar; Ratio Keto Friendly Strawberry Dairy Snack; and Ratio Keto Friendly Vanilla Dairy Snack. The Instacart report combines in-depth analysis of Instacart search and purchase activity with data from a new online Harris Poll survey.

New Nightfood Packaging Emphasizes “Sleep-Friendly” Benefits

New packaging for the Tarrytown, N.Y.-based “sleep friendly” ice cream company’s products puts greater emphasis on better-for-you night-time snacking formulated for better sleep. The revamped packaging features the company’s familiar Cravemonsters in a bolder design with a new deep blue background for stronger shelf-presence. The packaging also suggests night-time cues to the consumer, according to the company. The “sleep-friendly” nutritional profile includes more prebiotic fiber, casein protein, calcium, magnesium, and zinc compared to regular ice cream, while containing less sugar, less fat, and fewer calories. These benefits are highlighted in detail on the back of each pint. During the 18 months the ice cream has been on store shelves, consumer reviews and company interviews determined that 95 percent of reviewers ticked 4 or 5 stars. Production of Nightfood pints in the new packaging is expected to appear on store shelves starting in March. The packaging update was executed by OffWhite Co. 

Coca-Cola

Coca-Cola Lays Off 17 Percent Of Global Workforce

The company said it is laying off 2,200 workers – half of which are in the U.S. – as part of a larger restructuring aimed at paring down its business units and brands. As of the end of 2019, Coke employed 86,200 people worldwide. The restructuring process was accelerated by the pandemic, causing sales at places like stadiums and movie theaters to dry up due to lockdowns. Revenue fell nine percent to $8.7 billion in the July-September 2020 period. The company is also reducing its brands by half to 200. The layoffs won’t impact Coke’s mostly independent bottlers.

Companies, Organizations

Nestlé, Cereal Partners Unveil New Organic Version Of Cheerios

The Cheerios variant, Organic Honey and Chocolate Cheerios, is available now in the U.K.’s Waitrose supermarket chain and will debut in Sainsbury's stores in May. Nestlé's certified organic honey hoops, sere made from five organically-farmed whole grains, and chocolate cereal pieces. Ingredients are sourced from farmers following organic farming practices. Cereal Partners U.K. is the British operation of Cereal Partners Worldwide (CPW, Switzerland), a global breakfast cereal company that makes Nestlé cereals, including Nesquik, Shredded Wheat, Cheerios, and Shreddies. It was established in 1990 as a partnership between Nestlé and General Mills. 

Canadian Company Announces New Amazon Strategy For Holy Crap Cereal

Toronto-based Plant & Co. announced it is making a strategic shift from Amazon's Vendor to Seller Central to grow existing Holy Crap cereal sales in Canada and position the product for expansion to the health and wellness market in the U.S. According to the company, Amazon's Seller Central will give it greater control over online product sales. Holy Crap cereal sales increased more than 120 percent in the second half of 2020 over the same period in 2019. Holy Crap contains certified organic, non-GMO, kosher, and gluten free ingredients, including hemp seed, buckwheat, chia seeds, and gluten-free oats. 

Snack Companies Experiment With Carbon-Neutral Products

Snack companies young and old are trying to keep up with the conscious consumerism trend by introducing carbon neutral – or “climate-positive” – snacks. Among the bigger food players offering the innovation is PepsiCo and its Walkers Chip line in the U.K. The company has partnered with British clean tech firm CCm Technologies (Oxford) , which is using carbon-capture technology to help  Walkers turn its leftover potato peelings into new low-carbon fertilizer. Walkers is installing CCm’s equipment at its Leicester-based factory in 2021 to reduce carbon emissions by as much as 70 percent in its crisps line. Other companies dabbling in carbon-neutral technology include Mondelez and its recently-launched NoCOé crackers brand, Planet FWD and its Moonshot Snacks, and start-up Impact Snacks.

Nature's Path Installs UV Light Sanitation Technology To Protect Three Factories

The Canadian organic breakfast and snack food company says it is the first food manufacturer to install a state-of-the art sanitization technology in its North American production facilities. Far-UVC 222nm light technology, developed by Healthe, Inc. (Melbourne, Fla.) will increase the protections for employees against the spread of harmful airborne pathogens in its Delta, British Columbia, plant as well as facilities in Blaine, Wash., and in Sussex, Wis. Healthe AIR combines the germicidal properties of ultraviolet light and carbon activated filtration to improve air quality in indoor spaces. A fan draws air through a HEPA/carbon filter and into a sanitization chamber where UVC LEDs target and inactivate remaining pathogens. 

Egg Innovations Acquires Hard-Cooked Egg Snack Company Peckish

The Warsaw, Ind.-based free-range eggs producer announced it will acquire the hard-cooked egg snack brand Peckish, which recently returned to Whole Foods Market nationwide with redesigned packaging. Peckish is the third incubated concept from growth equity firm Sonoma Brands, which will team up with Egg Innovations to support its new Blue Sky Family Farms brand. Several egg brands (Eggland’s Best, Wilcox Organic, Organic Valley, Crystal Farms, and Vital Farms) have launched ready-to eat hard boiled eggs in recent years. But Peckish is the first to pair eggs with culinary inspired dips (Salt & Pepitas, Everything, Ranch, Fried Rice, Rancheros), and features a slightly softer boiled texture, while retaining food safety, according to the company.

New Dried Fruit And Nut Snack Mix, Cranberry Seeds, From Ocean Spray Cranberries

The Mass,-based cranberry farmer cooperative’s Craveology Fruit and Nut Snack Mix will be available in three variations – Spicy Coconut Curry, Vanilla Chai and Tuscan Herb – that blend spices and seasonings with walnuts, pecans, roasted peanuts, roasted pumpkin seeds, roasted almonds, and cranberries. Each serving delivers 3-6 grams of protein with no artificial colors, flavors or preservatives. The cooperative also launched Ocean Spray Cranberry Seeds, a snack made from an upcycled ingredient rich in fiber (1.6 times the amount found in chia and flax seeds), a good source of zinc, magnesium, and omega 3 fatty acids. In addition, naturally red in color, non-GMO, allergen free, and have no additives or preservatives.  

U.K.’s Fairfields Farm Introduces Meat-Flavored Potato Chips

The company’s Rib of Beef Crisps are made from potatoes harvested on the farm only meters from the chip factory. Calling the chips a “taste of a delicious roast dinners in a bag,” the arftisan potato chips are priced at 80p ($1.08) a bag and are available at the East of England Co-op and online from www.fairfieldsfarmcrisps.co.uk. Fairfields Farm's other vegan flavors include Bacon & Tomato, Lightly Sea Salted, Sweet Chilli and Sea Salt & Aspall Cyder Vinegar.

Pretzels, Inc., Signals Expansion Plans With Investment In New Kansas Factory

The Indiana-based manufacturer of pretzels and other snacks announced “a significant investment” in the building of a state-of-the-art production facility in Lawrence, Kansas. In addition to creating new jobs, the 150,000-square-foot facility will increase the company's capacity across a range of products and formats. The factory is expected to be operational within a year. Pretzels, Inc. is a portfolio company of an affiliate of Peak Rock Capital, a middle-market private investment firm. The company makes a variety of flavored and stuffed pretzels for private label and national brands, and also sells pretzels under the Harvest Road brand.

Deals, M&A, JVs, Licensing

Mondelez International Finalizes Acquisition Of Healthy Snacks Company Hu

The Chicago-based snacks company has acquired the remaining interest in Hu Master Holdings, an Albany, N.Y. healthy snack and paleo chocolate maker. Terms of the deal were not disclosed, but Mondelez said the deal comes after a 2019 minority investment granted it a right of first offer to acquire the company. Hu markets vegan and paleo-friendly chocolate bars and grain-free crackers and has become, according to Mondelez, "one of the fastest-growing confectionery brands" sold in the natural retail channel in the U.S. The company, which has just started building the distribution of its products into more mainstream outlets, now stands a solid chance of carving out a foothold in the competitive U.S. grocery market with the help of Mondelez.

British Snack Maker Sold To Irish Food Company

Ireland’s Valeo Foods Group, owner of the Kettle chips, Jacob's biscuits, and Rowse honey brands, has acquired the Gateshead, U.K.-based snack manufacturer It’s All Good, which employs 265 people. The company, which makes pita chips and tortilla snacks, was backed by Newcastle private equity group NVM. The deal, which takes Valeo's annual sales above the €1 billion ($1.2 billion) mark, will see It’s All Good’s workers transfer to Valeo's snacking business. Since its founding in 2010, Valeo Foods has expanded rapidly, now selling food in more than 100 countries. The deal marks the exit of NVM, which backed former Union Snacks managing director Calum Ryder, who launched It’s All Good with two partners. 

Market News

Campbell Soup Company To Shutter Georgia Snack Factory

The Camden, N.J.-based food company decided to close the Columbus snacks manufacturing facility in phases by spring 2022 because of its age and reduced consumer demand for non-core products made there. The plant, which employs 326 people, produces candy, crackers, cookies, nuts, and bars under brands such as Snyder’s of Hanover and Pepperidge Farm. The 94-years-old plant was part of Campbell’s purchase of Snyder’s-Lance in 2018. Campbell says it will phase out the production of candy under the Lance brand and will shift production of its higher demand Lance, Emerald, and Late July snacks across the division’s manufacturing network.

McCormick & Company Acquires Flavorings Company

The Baltimore, Md.-based food and spice company has acquired flavor maker Fona International for $710 million. Founded more than three decades ago, Fona posted around $114 million in annual sales last year and is expected to grow at a mid-to-high-single-digit rate under McCormick's umbrella. The company makes clean and natural flavors for use in bakery, cereal, dairy, desserts, chocolate, and other product lines. McCormick says it will finance the transaction through cash and commercial paper. 

India’s Slurrp Farm Raises $2M To Fund Further Growth

The four-year-old healthy cereal and snack maker (Gurugram, Haryana) has raised $2 million from multi-stage venture fund Fireside Ventures, in its Series A funding round. The company in June 2018 raised $1 million in a pre-Series A round from various Indian investors. The company says the funds will be used for product innovation, marketing, and increasing inventory to meet ”increasing demand,"  It will also look to strengthen its team and fortify its direct-to-consumer channel. Slurrp Farm’s annual recurring revenue (ARR) grew 300 percent during the last six months and the company is “looking to grow at the same rate to an ARR of $5-$6 million in the next 12 months."  The Slurrp Farm portfolio of 25 products includes porridges and cereals, puffed snacks for children, millet pancakes, millet dosa, and cake mixes, available in India, UAE, and Singapore.

Freedom Foods To Sell Health Cereal, Snacks Businesses To Arnott’s

The beleaguered Australian food company, which recently stunned investors when it revealed it had a nearly A$600 million hole in its accounts, is selling off its health cereal and snacks business to Arnott's, a company that was carved from the Campbell Soup Company last year in a A$3.2 billion deal led by private equity firm KKR. Freedom Foods, which is facing a shareholder class action as it tries to raise capital, will also change its name to distance itself from a recent trading and financial mess that has seen its chief executive and chief financial officer quit in quick succession after hundreds of millions of dollars of impairments drenched the accounts in red ink. The sale includes various cereal and snacks manufacturing facilities in New South Wales and Victoria, as well as the Freedom Foods, Messy Monkeys, Heritage Mill, and Arnold's Farm brands. It does not include the Crankt Protein brand.

Other

Nature’s Fynd Invests In Commercialization Of Foods, Beverages Containing Fy

The Chicago-based a food technology company, formerly known as Sustainable Bioproducts, has big plans for its fungi protein called Fy, made by fermenting the fusarium strain flavolapis. According to the company, Fy contains all nine essential amino acids, and is a good source of vitamins, minerals, and fiber. Nature’s Fynd plans to commercialize food and beverage products that contain Fy across the breakfast, lunch, dinner, and snack occasions. Fy has been shown to work in meat alternatives and dairy alternatives. To realize its commercialization plans, the company recently hired four executives with more than 60 years of combined experience working for food and ingredient companies, including Baljit Singh Ghotra as senior vice president of food innovation. He previously was vice president of food research at Archer Daniels Midland Co. 

Products & Brands

New Promotion From Special K Canada Features Twist On “Ditch Resolutions” Day

Kellogg’s Canadian brand (Mississauga, Ont.) is putting a new twist on January 17, known as "Ditch New Year's Resolutions Day," when Canadians fall back into old habits. Special K’s "Prove It Day" promotion is designed to encourage Canadians to reach their New Year’s goals. It turns a Special K box into a prize generator: consumers visit a website to scan a cereal barcode offering a chance to win motivational prizes, including exercise bikes, fitness trackers, water bottles, yoga mats, and a year's supply of Special K, among others. The celebrity face of the promotion is Kaitlyn Bristowe, ABC's Dancing with the Stars 2020 winner, former Bachelorette, and podcaster. 

Kellogg Unveils Version Of Raisin Bran With Oats

The Battle Creek, Mich.-based breakfast foods company’s Raisin Bran Toasted Oats and Honey is made with the traditional bran flakes and raisins plus whole-grain toasted oats and honey. Available now at U.S. retailers, the new oats and honey version has a suggested retail price of $2.99 for a 15.6-ounce box and $3.99 for a 22.1-ounce box. 

Pretzel Pete Adds Seasoned Pieces To Lineup

The Hatboro, Pa.-based snack manufacturer has launched Seasoned Pretzel Pieces to its lineup of gourmet pretzel snacks. The pieces, made with soft red winter wheat flour, are available in three flavors: Smokey bacon and cheddar (buttermilk, onion powder, garlic powder, natural smoke flavor, and natural cheddar), Buffalo blue (hot sauce, cayenne pepper, garlic, vinegar, paprika, annatto, turmeric, and blue cheese), and cinnamon brown sugar (brown sugar, cinnamon, maple syrup, sugar, molasses, and vanilla extract). A 1/3-cup serving contains 150 calories, two grams of protein, eight grams of fat, and from zero to as much as four grams of sugar. All Pretzel Pete snacks are made from local, non-GMO ingredients and are free from artificial flavors, colors, flavor enhancers, peanuts, nuts, and sesame. Seasoned Pretzel Pieces come in multipacks that include four 10.5-oz packages for a suggested retail price of $19.50 per package. 

India’s Tapas Foods Hopes To Internationalize Healthy Snacks

The ambitious mission of the Udupi-based start-up is to make available its superfood snacks – makhana, also known as foxnuts or lotus seeds – globally. Makhana, which comes from a plant called euryale fox that grows in stagnant water, is said to be low in cholesterol, sodium, and saturated fats, and a good source of magnesium, potassium, manganese, phosphorous. and protein. Tapas Foods offers two brands of makhana snacks – Tapas and Nummy – in plain and roasted varieties, and as ready-to-eat makhanas in cheesy, spicy, and tangy flavors, in small, medium, and large packs, among others. A three-pack (225 grams) is priced at Rs 369 ($5.04) on Amazon.

U.K.’s Cheeky P’s Unveils Rebranded Crunchy Chickpea Snacks

The London-based snack company has rebranded its range of flavored crunchy chickpeas with “brazen and colorful packaging” to reflect a “playful style” and bold taste credentials. The Kickin’ Curry flavor will roll out alongside the brand’s latest addition to the range, Lip-smackin’ Cheese, in Sainsbury’s Taste of the Future trial bay in selected stores and online. Each of the flavors, which are fiber- and protein-rich, gluten-free, and vegan-friendly, are available in 40-gram bags at an RRP of £1 ($1.36).

Ferrero Group Acquires Eat Natural Snacks Company

The Luxembourg-based confectionery company has agreed to acquire the British maker of cereal bars, fruit and nut bars, toasted muesli, and granola for an undisclosed amount. The acquisition is said to be part of a strategy to expand its footprint in the healthier snacking space to maintain its value among consumers who are increasingly focused on their health and what they consume. According to Bloomberg, the global healthy snacks sector – which has experienced a surge in sales recently, thanks to the coronavirus pandemic – is expected to surpass $33 billion in value by 2025. Ferrero plans to build on Eat Natural’s (Epping, U.K.) strong brand authenticity, while pushing its expansion into new markets and category segments.

Bio & Me Extends Line Of Porridges, Mueslis

The Chester, U.K.-based gut-friendly granola brand has unveiled four new products – two porridges and two mueslis – set to roll out in 2021. The new additions provide a “diverse range of plant-based ingredients,” such as nuts, seeds, and grains on top of fruits and vegetables. The four products – Apple & Cinnamon Porridge, Super Seedy & Nutty Porridge, Fruit & Nut Muesli and Super Seedy & Nutty Muesli – will launch at Booths and Planet Organic in January, priced at £3.75 ($5.09) for the porridge and £3.99 ($5.42) for the muesli (both 450 grams). Both new ranges will feature the European Food Safety approved Good for the Gut health claim, in line with its granola products.

Hormel Foods Introduces Plant-Based Protein Puffs Snack

Happy Little Plants protein puffs from the Austin, Minn.-based company provide 16 grams of plant-based protein per serving, contain no preservatives, are gluten-free and come in three varieties: ranch, nacho cheese, and cinnamon & sugar. They are available on Amazon in a variety pack (12 1.25-ounce bags) for $28.77. Hormel introduced the Happy Little Plants brand in 2019.

Healthy Snack From Mark's Mindful Munchies Features Ancient Grains

The Boston-based snack company, developer of Stacy’s Pita Chips, has launched Pop Bitties crunchy, air-popped chips made from 100 percent whole grain sorghum, brown rice, quinoa, and chia. Available in Pink Himalayan Salt, Maple & Sea Salt, Hickory BBQ, and Vegan Sour Cream & Onion flavors, the chips are Non-GMO Project Verified, certified gluten-free, vegan, corn-free, and tree nut and peanut-free. A serving contains 120 calories without trans fats or artificial ingredients. Pop Bitties are available in 4.5-oz ($3.69) and 1-oz. ($1.49) bags both online and at grocery stores in the U.S. 

Cereal Companies Try Positioning Breakfast Fare As Anytime Snacks

To combat shrinking breakfast cereal sales, companies like General Mills and Kellogg have been working to reposition product portfolios as on-the-go snacks. General Mills, for example, has partnered with Hershey to launch five new cereals and Kellogg launched big format cereals as it steadily works to convert its breakfast brands into snacks. Gaining traction in the market are out-of-the-box flavors and indulgent choices, according to Food Dive, and the indulgence trend is enduring as the pandemic strengthens consumption of sweet snacks. Cereal makers have indulgence-type snackers in their sights as a primary market. With 30 percent of cereal already eaten outside of breakfast, Kellogg and General Mills are targeting Millennials looking to relive their childhood with new sweet varieties of cereals or snacks remembered from years past

Planet FWD Garners Additional Funding, Unveils “Climate-Friendly” Crackers

The San Francisco-based food startup founded by Zume co-founder Julia Collins has unveiled its first product, the “climate-friendly” crackers called Moonshot Snacks. The crackers are carbon neutral, organic, kosher, plant-based, non-GMO, and contain no added sugar. Available in sourdough sea salt, rosemary garlic, and tomato basil, a box costs $5.99. The company also announced an additional $2.5 million in funding led by Emerson Collective, Concrete Rose, MCJ Collective, and Arlan Hamilton, as well as existing investors, including BBG Ventures, January Ventures and Kapor Capital, among others. The company raised $2.7 million earlier this year. Collins says she hopes her success in climate-friendly foods will would encourage more farmers to implement regenerative agriculture practices.

Trends

Floor Foods Specializes In Innovative Nut-Based Snacks

The Middelburg, Netherlands-based producer of nut snacks is devoted to innovation in nut products in an era of increasing consumer awareness of health and diet. The company, whose main product focus is responsibly-produced fruit and vegetable snacks, innovative rice crackers, creative nut mixes, and seaweed snacks, recently developed a nut mix that includes cheese croutons. Another of its products is a nut mix with no added salt that is flavored with Dutch seaweed. New offerings must meet several conditions: vegan, low fat, gluten-free, and “trendy.” The company’s 50 products, marketed under the brand “Snaqs,” are supplied to the European retail, foodservice, and business-to-business sectors, can be served at any occasion, and can be used as an ingredient in meals. 
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