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NOVEMBER 22, 2023

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.


Happy Thanksgiving!

Glen Clarke

Head of Food & Beverage

DEAL-RELATED NEWS

Cumulus Coffee secures seed funding of USD 20.3m.

  • The Cumulus Coffee Company, a New York-headquartered coffee business, has raised $20.3 million in seed funding

Source: MergerMarket

Hord Family Farms expands operations through acquisition.

  • Hord Family Farms, a fifth-generation pork producer acquired the assets of New Horizon Farms on Nov. 17
  • The acquired farrow-to-finish swine operation will now operate as Hord Farms West, retaining its current pork operations

Source: Meat + Poultry

BRF takes pet food business off the block.

  • BRF announced on Nov. 13 it has abandoned plans to sell its pet food business after exploring competitive sale opportunities earlier this year

Source: Meat + Poultry

SKKY Partners invests in TRUFF.

  • SKKY Partners, a private equity firm, announced today that it has signed a definitive agreement to acquire a significant minority stake in TRUFF, a flavor-enhancement brand offering premium sauces and seasonings

Source: MergerMarket

Innoliva acquired by Fiera Capital from Cibus Capital.

  • Innoliva, a Spanish olive oil producer (f.k.a. Olivos Naturales), has been acquired by Fiera Capital, an asset management and investment firm, from Cibus Capital

Source: MergerMarket

FOOD AND BEVERAGE MUSINGS

FI on the Scene: Key Takeaways From the 2023 PLMA Show.

  • The 2023 PLMA Show last week highlighted the continued growth of private label sales, with a 20% larger exhibit featuring a record 1,685 exhibitors
  • Private label dollar sales grew by 11.3% in 2022, reaching $229 billion and outpacing national brands in 2023
  • The event also discussed the significant impact of AI on the consumer product industry, emphasizing the need for private label suppliers to engage with AI in forecasting, customer service and collaboration with retailers

Source: The Food Institute

Cattle on Feed – USDA Report.

  • U.S. cattle and calves on feed for the slaughter market totaled 11.9 million head on Nov. 1, rising 2% from the total reported Nov. 1, 2022, according to USDA
  • Placements in feedlots during October totaled 2.16 million head, rising 4% from the 2022 figures

Source: USDA

Ramen maker Nissin Foods to spend $228M on new US plant.

  • Ramen maker Nissin Foods plans to invest $228 million in a new U.S. plant, responding to surging demand for its products with four consecutive quarters of high double-digit growth
  • The facility, located in Greenville County, South Carolina, is expected to be operational in August 2025, generating over 300 new jobs
  • Nissin aims to optimize production capabilities, expand its footprint and contribute to environmental goals, including a 30% reduction in CO2 emissions by 2030 and carbon neutrality by 2050, with the plant featuring solar panels, EV charging stations and electric forklifts

Source: Food Dive

Walmart president expects deflation in the months to come.

  • Walmart’s CEO, C. Douglas McMillon, anticipates a period of deflation in the coming months in the United States, particularly in food prices, and welcomes this as beneficial for customers despite increased unit pressure
  • While overall product costs have risen, McMillon notes a positive trend of lower pricing in dairy, eggs, chicken and seafood, while also observing slower disinflation in the dry grocery and consumables categories
  • Walmart reported a net income of $453 million in the third quarter, with a 5.2% increase in total revenues to $160.8 billion and despite a stock decline on Nov. 16, the company is cautiously optimistic about future sales growth

Source: Meat + Poultry

Automation and innovation in the protein industry.

  • Wayne-Sanderson Farms and design-build firm Stellar expanded their Enterprise, Ala., poultry processing facility, prioritizing flow, automation and employee wellness
  • The addition features an AI controlled atmosphere stunning system, two processing lines handling 1.3 million birds per week and a new line processing an additional 860,000 birds
  • The plant, supplying quick-service restaurant chains, focuses on automation, from picking and evisceration to deboning and packaging, and is exploring retail opportunities following the acquisition of Sanderson Farms

Source: Meat + Poultry

PepsiCo Sets Goals to Further Reduce Sodium and Deliver More Diverse Ingredients in Convenient Foods Portfolio.

  • PepsiCo has unveiled two new nutrition goals as part of its strategic transformation initiative, PepsiCo Positive
  • The first goal aims for at least 75% of the global convenient foods portfolio to meet or fall below category sodium targets by 2030, with a focus on reducing sodium levels in key categories by 15-30%
  • The second goal targets the delivery of 145 billion portions of diverse ingredients annually in its global convenient foods portfolio by 2030, promoting a more nutritionally diverse diet by incorporating ingredients such as legumes, whole grains, plant-based proteins, fruits, vegetables, nuts and seeds

Source: PR Newswire

Camel milk grows in popularity as functional ingredients surge in demand.

  • Camel milk is gaining popularity as a functional ingredient, with sales currently at $1.34 billion and projected to grow at a 4.1% annual rate through 2032, driven by its digestive properties and nutritional benefits appealing to lactose-intolerant and health-conscious consumers
  • Despite the rise of plant-based milk alternatives, a study indicates that not all meet dairy's nutritional standards, creating an opportunity for camel milk
  • The camel milk market's growth faces challenges, such as its high cost compared to cow's milk, but marketing strategies, including positioning it in the beauty category, aim to reach a niche and health-conscious consumer base

Source: Food Dive

Farm bill extension continues prohibition on EBT processing fees for SNAP purchases.

  • The recently signed short-term funding package extends the farm bill until September 30, 2024, and maintains the prohibition on EBT processing fees for SNAP purchases
  • The National Grocers Association supports this extension while advocating for a permanent end to these fees, emphasizing that their imposition could negatively impact retailers participating in the program, particularly those serving high-need areas
  • The association has been actively pushing for a permanent ban on EBT processing fees and legislators have introduced bills to address this issue, with the support of industry associations such as the NGA and FMI

Source: Grocery Dive

Kraft Heinz gives executive team updates.

  • Kraft Heinz has announced updates to its executive leadership team, with Pedro Navio appointed as the new Executive Vice President and President, North America, succeeding the current president, Carlos Abrams-Rivera, who will become CEO in 2024
  • Additionally, Willem Brandt is promoted to President, Europe and Pacific Developed Markets, Bruno Keller to President, West and East Emerging Markets and Cory Onell to Chief Omnichannel Sales and Asia Emerging Markets Officer
  • Diana Frost has been elevated to Chief Growth Officer, focusing on global growth, brand building and product portfolio transformation and the team transitions to their new roles at the beginning of fiscal year 2024

Source: Meat + Poultry

JBS reopens, expands beef plant in Brazil.

  • JBS has announced the reopening and expansion of its beef processing operation in Diamantino, Mato Grosso, making it the largest beef plant in Latin America
  • Following a fire in June, the facility’s operations were halted, but JBS plans to invest R$300 million ($62 million) in the project’s initial stages
  • The plant, with an initial processing capacity of 600 heads of cattle per day, will gradually increase to 1,800, employing 3,000 workers and aiming for a final capacity of 3,600 heads per day by 2024, emphasizing JBS's commitment to regional development

Source: Meat + Poultry

Global beef markets divided.

  • Global beef markets are characterized by a divide between high prices and shrinking production in the United States, while the Southern Hemisphere sees increased production and lower prices, according to Rabobank’s Global Beef Quarterly report
  • The U.S. is expected to shift to a net-import position in 2023, with a 4.5% production contraction and a 3% drop in consumption in 2024
  • Australia and Brazil will experience production increases, with Brazil anticipated to set a new production record in 2024, supporting a 2-3% rise in export volumes, driven by increased Chinese demand for value-for-money products

Source: Meat + Poultry

Why industry leaders say Florida citrus is on track for a better year.

  • Florida citrus is expected to have a better year with increased volume and favorable weather conditions, according to industry leaders
  • Citrus groves were not impacted by damaging hurricanes this season, resulting in an uptick in volume and excellent fruit quality
  • The industry is optimistic about the upcoming season, with progress in citrus greening research and the adoption of innovative methods, such as the Citrus Under Protective Screen (CUPS), contributing to improved fruit quality and increased production

Source: The Packer

Consumer Buzz: 5 Health & Wellness Ingredients to Watch.

  • Creatine is noted for its energy benefits, and is most favorable among Gen X, driven by the female demographic
  • Aquafaba, derived from legume cooking water, is popular for digestive health and plant-based needs, predominantly among Millennials and women
  • Berberine, known for diabetes management and weight loss, has attracted attention on social media, especially among Millennials and Gen X
  • Tongkat Ali, an adaptogen, sees increased mentions in recipes, with Millennials showing the most interest
  • Moringa, a superfood rich in antioxidants, appeals to Millennials and Gen Z for functional health and heart health benefits

Source: The Food Institute

JUST FOR FUN

  • Cargill survey sees uptick in whole turkey purchases – Meat + Poultry

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