|
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.
Have a nice weekend!
| |
|
Glen Clarke
Head of Food & Beverage
| |
Benestar Brands (Highlander Partners) merges with Palmex (Wind Point Partners). |
- Highlander Partners, a Dallas-based private investment firm, has announced the merger of its portfolio company, Benestar Brands, with Palmex, a portfolio company of Wind Point Partners
- The merger positions the combined entity as a provider of Hispanic and better-for-you salty snacks in North America
| |
Arkansas produce distributor joins FreshEdge. | - KT Produce, a produce distribution company, joined FreshEdge, a family of best-in-class fresh food distribution companies backed by Wind Point Partner
| |
CD&R to Acquire Shearer's Foods from Ontario Teachers’ Pension Plan Board. |
- Clayton Dubilier & Rice has announced its acquisition of Shearer’s Foods, a leading contract manufacturer and private label supplier serving the snack industry
| |
Heartwood Partners acquires majority stake in Bush Brothers Provision Company. | - Heartwood Partners has completed a majority investment in Bush Brothers Provision Co., a family-owned provider of premium protein products to restaurants, hotels, country clubs, mega yachts, and private chefs
| |
FOOD AND BEVERAGE MUSINGS | |
Perdue Farms introduces new air fryer crispy wings. |
- Perdue Farms has launched a new product called Air Fryer Ready Crispy Wings, available in three flavors: Hot N’ Spicy, Lemon Pepper, and Roasted
- Targeting the 75% of US households with air fryers, Perdue aims to provide a convenient solution for crispy wings at home, taking on the takeout debate
- Additionally, the company will release 100 limited Ultimate at Home Wing Kits, featuring the new wings, an air fryer, apron, tongs, and a coupon, available on their website starting December 11 while supplies last, and the wings will be sold nationwide in select retailers
| |
General Mills leadership changes further push into pets, international segments. |
- General Mills has announced leadership changes, promoting Jon Nudi to head the pet food and international segments, the company's major growth areas
- The move reflects a strategic shift as General Mills aggressively enters the pet food market amid a decline in its traditional cereal category
- The company sees the pet food sector as a long-term investment, having entered it in 2018 with the acquisition of Blue Buffalo and recently acquiring Fera Pets
| |
The Consumer ‘Feels’ Behind the High-flying Feastables Brand. |
- Feastables, the chocolate brand by MrBeast, has gained traction due to its high-impulse and excitement-driven marketing approach, capitalizing on MrBeast's significant media reach
- Consumer decisions in the snacks and confections space are increasingly influenced by the immediate emotional satisfaction and excitement provided by a brand, surpassing considerations for functional benefits or social connections
- The article suggests that for enduring success, disruptive brands like Feastables should assimilate into core categories, emphasizing the importance of aligning brand and innovation strategies with the individualized, high-sensory excitement sought by consumers
| |
Consumers’ Cookie Craze Picks Up the Pace. |
- Cookie sales have surged over 9% from 2022, with nearly one in four consumers reporting an increased consumption of cookies, citing reasons such as self-treating, more baking, and seeking comfort
- The enduring popularity of cookies is attributed to nostalgia, portability, and versatility, allowing for diverse flavors and dietary adaptations
- The recent uptick in cookie consumption is linked to the stress of inflation, as people turn to comfort foods during times of crisis, and the anticipated cookie trends for 2024 include an increase in artisanal and specialty cookies, unique flavor combinations, and the growing popularity of macaron cookies with unconventional flavors
| |
Wisconsin cheese farmers share 2024 food trends. |
- Wisconsin cheese farmers predict that in 2024, consumers will prioritize cooking and eating at home, embrace adventurous cheese flavors, and practice “mindful indulgence” focused on health and wellness
- The Dairy Farmers of Wisconsin anticipate that cheese boards will remain popular for connecting with others, citing a preference for experience-related gifts over physical ones
- Additionally, the trend of environmentally conscious choices and a desire for unique flavors, exemplified by social media buzz around parmesan espresso martinis, is expected to drive local and innovative cheese purchases, contributing to the projected growth of the U.S. cheese market to $55.9 billion by 2029
| |
The Future of Food: Health, Wellness, and the Trillion-Dollar Opportunity. |
- The global health and wellness food market, valued at $940 billion in 2022, is projected to reach $1.47 trillion by 2027, driven by 200 million Americans participating in health and wellness programs
- Suboptimal diets cost the U.S. $1.1 trillion annually, making the health and wellness sector a significant opportunity for F&B companies, particularly in private label brands
- The growth in private-label products, accounting for 25% of all units manufactured, is expected to exceed branded products, reaching 50% or more, with U.S. grocery store private-brand dollar volume increasing by 10.3% in the first quarter of 2023
| |
Advance Monthly Sales for Retail and Food Services, November 2023. |
- In November 2023, U.S. retail and food services sales reached an estimated $705.7 billion, showing a 0.3% increase from the previous month and a 4.1% increase from November 2022
- Total sales for September to November 2023 were up 3.4% compared to the same period the previous year
- Notably, non-store retailers saw a substantial 10.6% increase from the previous year, while food services and drinking places experienced an 11.3% growth from November 2022
| |
Convenience Stores Would Rather Sell You Pizza Instead of Gas. |
- Convenience stores, including chains like Circle K and Casey’s General Stores, are increasingly focusing on selling food, with fresh offerings like pizza driving higher margins
- Food-service sales contribute over a third of in-store gross profits for these stores, surpassing fuel sales
- As traditional revenue sources like fuel and cigarettes decline, major chains such as 7-Eleven, Casey’s, and Circle K are investing in prepared food, aiming for higher profitability and enhanced market share, with a particular focus on fresh, restaurant-like offerings to attract customer loyalty
| |
White Claw enters nonalcoholic category with zero-proof beverage. |
- White Claw, a leading hard seltzer brand, is entering the nonalcoholic market with “White Claw 0% Alcohol,” targeting the growing number of Gen Z consumers abstaining from alcohol
- The electrolyte-infused, booze-free drinks will be available in four flavors starting January 2024
- With 69% of alcohol drinkers and 81% of Gen Z expressing interest in a “sober curious” lifestyle, the move reflects the industry’s response to changing consumer preferences, tapping into the projected 8.2% compound annual growth rate for the nonalcoholic drinks space through 2027
| | | | |
