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Please see below for a listing of what the North Point Food & Beverage Team has been tracking this week. We hope that you find the content insightful and a nice way to summarize the most noteworthy Food & Beverage events of the week.
Additionally, sharing some key insights from our time at Expo East:
- The prevalence of the plant-based trend is fading as consumers have proven unwilling to compromise taste and texture for the sake of sustainability and the investor community has grown tired of waiting for plant-based concepts to scale. Increasing consumer concerns around tall ingredient stacks in plant-based products contributed a meaningful long-term headwind to their implicit distaste for the sector.
- Ethnic food companies are producing sauces, dips, treats and more with an ethnic flare that is very popular among consumers who are highly interested to diversify the flavor profile of their everyday meals. This trend presents interesting pockets of growth opportunity in the otherwise sleepy broader category of sauces and dips.
- Non-alcoholic beverages are gaining meaningful traction with consumers. Previously thought of as a fringe category, the space has continued to expand and grow, having successfully traversed a turning point with consumers. Key drivers appear to be decreasing alcohol consumption more broadly, health & wellness trends, active lifestyles which require avoidance of the negative lingering effects of alcohol consumption and an increasing focus on higher quality sleep driven by the large-scale adoption of smartwear devices.
Have a nice weekend!
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Glen Clarke
Head of Food & Beverage
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Sea Fresh USA acquired by Oceano Seafood. | - Sea Fresh, a processor of fresh, wild-caught Loligo Squid, has been purchased by Oceano Seafood, an international fishing and processing conglomerate
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Ballreich Snack Foods acquired by Grippo's. | - Potato chips and packaged snack foods manufacturer Ballreich Snack Foods was acquired by fellow snack food manufacturer Grippo’s
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Above Food to acquire NRGene Technologies genomic assets. | - Above Foods, a producer of ingredients and consumer products enabled by its vertically integrated supply chain, will purchase AI-based genomic assets, IP and trait development from Israeli ag-tech company NRGene Technologies
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Marfrig increases holding in BRF. | - Marfrig increased its holding in global food company BRF to 40.5% from its previous stake of 35.77%
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JM Smucker to sell Sahale Snacks to Brownie Brittle owner for $34M. | - JM Smucker has sold Sahale Snacks, a maker of fruit and vegetable snacks mixes, to Second Nature Brands, creator of premium, nutritional and BFY snacks, for about $34 million
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Cattaneo Bros. acquires rodeo announcer’s beef jerky brand. | - Cattaneo Bros., a small-batch jerky processor, will acquire Bob Tallman’s Authentic Cowboy Beef Jerky
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Cal-Maine Foods to acquire egg production assets of Fassio Egg Farms | - Food producer Cal-Maine Foods will acquire all the assets of Fassio Egg Farms related to its commercial sell egg production and processing business
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FOOD AND BEVERAGE MUSINGS | |
Olive oil prices surge over 100% to record highs, sparking cooking oil thefts. |
- Olive oil prices have spiked amidst severe droughts in major production regions
- In the wake of rising prices, olive oil has become subject to increased rates of theft, as desperate consumers resort to stealing the product
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Diageo taps former Tyson, Clif Bar exec as North American CEO. |
- Diageo has names Sally Grimes, formerly the CEO of Clif Bar at Tyson Foods, as the CEO of its North American business
- Grimes expertly grew Clif Bar while at Tyson and sold the business to Mondelez for nearly $3 billion in 2022, a meaningful accreditation in the eyes of Diageo
- The company additionally appointed longtime employee and current North American President Claudia Schubert to also serve as the COO
- In her position as North American President of Diageo, Schubert successfully navigated the company through the pandemic and managed the rise of its tequila business
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JBS builds $22 million biotech innovation center. |
- JBS began construction on a $22 million project to build a research, development and innovation center for cultivated protein in Florianopolis, Brazil
- JBS cited dedication to maintaining a position at the forefront of industry evolution as the genesis for the plant’s construction
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The Global Sugar Shortage Is About to Ease Thanks to a Corn Supply Boom. |
- Global pressure that drove sweetener & sugar prices to an 11-year high will subside as interest surges for corn ethanol
- Corn ethanol is attacking market share in the biofuel market, incentivizing producers to reallocate production capacity from biofuel to sugar production
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Meat Perspectives: Sum of the parts. |
- The most recent National Beef Quality Audit revealed that food safety is the most important factor in beef purchasing decisions for producers, packers, retailers, restauranteurs and others
- The audit also found that the vast majority of cattle transportation occurs with ease, and there’s been an industry-wide uptick in the use of electronic ear tags as a means of identification
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Hormel workers reject ‘final offer’. |
- Hormel workers voted against the company’s latest offer relating to employee benefits, safety and wages, claiming the company refuses to share record profits with the very people enabling Hormel’s success
- Hormel continues to express hope that an agreement will be met with the outspoken employees; the parties have agreed to a contract extension until Oct. 8
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The Rise of Gen H: Hispanic Culture’s Influential Young Adults. |
- A recent demographic study projected that nearly a quarter of the U.S. will be Hispanic by 2028
- Most food & beverage purchase decisions can be boiled to three key driving factors: communal validation, experiential and well-being / immediate gratification
- Hispanic foods & beverages have flourished with the rise of Gen Z and the convergence of their purchasing drivers with aspects of many Hispanic brands
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Alt Meat No Longer Sizzles While Plants & Fungi Grow. |
- While the alternative meat sector continues to struggle, sustainable seafood, fungi and mushrooms receive increased interest from customers and venture capital investors
- The primary factor disincentivizing consumers from purchasing meat alternatives is steep price tags
- Despite lackluster retail performance, smaller-scale applications of plant-based menus have achieved success in foodservice kitchens
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Ag Outlook Forum: Stakeholders remain optimistic despite growing food insecurity challenges. |
- A central question of the ninth annual Ag Outlook Forum in Kansas City this week focused on how to build ample food supply for the massive and still growing world population, which currently sits at over 8 billion
- The answer lies in relentless innovation and the application of creative problem solving on a global scale, which will require international collaboration
- Full dedication to regenerative agriculture is a crucial first step, and corporate players are gradually embracing the practice
- The Farm Bill, renewed every five years, is currently being redrafted, and crop insurance and agriculture research are expected to be prioritized in the upcoming 2023 version
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Delivering value to shoppers will remain paramount for grocers, McKinsey study finds. |
- A recent McKinsey study found that consumers across the income spectrum harbor concerns about spending, and find discounts are more important to them now versus a year ago
- Consumers’ price conscientiousness causes them to increasingly favor private brands, a trend which will possibly persist even after food inflation subsides
- Looking forward, consumers are expected to place a high degree of value in environmentally friendly products and personalized shopping experiences while retailers further pursue the integration of generative AI
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Coca-Cola’s BodyArmor launches hydration powders at retail. |
- Coca-Cola diversified its sports drink brand BodyArmor to include on-the-go hydrating powders
- Though BodyArmor maintained a competitive position in the sports drink category, Coca-Cola strived to extend the brand into larger, faster-growing segments
- With the roll out of BodyArmor Flash I.V., the brand has successfully launched into the rapid rehydration beverage category and has tapped into convenience, sustainability and customizable attributes which are increasingly important to consumers
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Feeding the World Once Brought the U.S. Untold Influence—No More. |
- America’s agricultural surplus, and therefore favor won via exports, is diminishing insomuch that the nation may be confronted with an agricultural trade deficit, representative to many of a bizarre reversal of America’s historic role as a leading exporter
- America’s loss has largely proven to be Brazil’s gain; Brazil is primed to become an agricultural superpower as the country is endowed with plentiful arable land and a favorable crop-growing climate
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GPC secures another specialty flour milling facility in an effort to expand plant-based reach. |
- Grain Processing Corporation (of Kent Corporation) plans to acquire a 64,000 sq. ft. specialty flour milling, manufacturing and warehouse facility in Iowa
- Exact plans for the plant are still under consideration, and are expected to support the company’s sustainability efforts and goals to cater to health-conscious and plant-based consumers
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Charlie Woods wins junior golf tournament — with dad Tiger as caddie. The apple doesn’t fall far from the tree. Charlie Woods, the 14-year-old son of golf champion Tiger Woods, won first place at a junior golf tournament. - CNN
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