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AUGUST 23, 2024

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

DEAL-RELATED NEWS

Peterson Farms Family of Companies acquires juice company.

  • The Peterson family is pleased to announce the addition of King Brands, LLC to the Peterson Farms Family of Companies.

Source: Produce Bluebook

Snak King secures investment from Falfurrias Management Partners.

  • Falfurrias Management Partners, a private equity firm focused on growth-oriented, middle-market businesses, has made an investment in Snak King, a Los Angeles-based manufacturer of private label and co-manufactured products including tortilla chips, rolled tortilla chips, potato chips, popcorn, extruded and co-extruded snacks, nut clusters, and more.

Source: Mergermarket 

Halo Foods sale process expected to resume in September – source.

  • The sale process for U.K.-based snack bar producer Halo Foods has been paused but is expected to resume in September, a source familiar with the situation said.

Source: Mergermarket 

Halsey Foodservice acquired by Legacy Food Group.

  • Legacy Food Group, based in Glen Allen, Virginia, has made Madison, Alabama-headquartered Halsey Foodservice its fifth operating division.

Source: Mergermarket 

Quinoa acquired by PE-backed Saco Foods.

  • Saco Foods, a Middleton, Wisconsin-based food company, has acquired Quinoa Corporation and its brands Ancient Harvest and Pamela’s.

Source: Mergermarket 

QualiTech (MidOcean Partners) acquires Ellison Bakery.

  • QualiTech, a Chaska, Minnesota-based family-owned global manufacturer of plant nutrition, animal nutrition and food ingredient products and services, backed by MidOcean Partners, has acquired Ellison Bakery, a Fort Wayne, Indiana-based manufacturer of cookies, snack bars, crunches, toppings, and inclusion ingredients for retail, food service and private label end markets. 

Source: Mergermarket 

FOOD AND BEVERAGE MUSINGS

Raising the bar: How MadeGood and Bobo’s snack bars became ‘killer products’.

  • The snack bar market is projected to exceed $20.3 billion this year, with brands like MadeGood and Bobo’s capitalizing on trends towards healthier, allergen-free options.


  • Data shows that 30% of consumers eat snack bars for mental well-being, 44% for hunger, and 75% consume them at home, highlighting their role as convenient, mini-meal replacements.


  • MadeGood and Bobo’s have succeeded by focusing on transparency with clear packaging and addressing Millennial parents' needs for healthier, lower-sugar snacks that accommodate allergy concerns.

Source: The Food Institute

Tillamook Country Smoker creates Tajín Flavored Beef Jerky.

  • Tillamook Country Smoker introduces Tajín Flavored Beef Jerky, combining premium beef with Tajín’s chili lime seasoning, available in 2.2-ounce and 6.5-ounce packages.


  • The product responds to the trend for exciting, mindful snacks, offering a convenient, flavorful option for both outdoor enthusiasts and busy city dwellers.


  • This is the first time Tajín seasoning is featured in beef jerky, marking a unique partnership between Tillamook and Tajín.

Source: Meat + Poultry

Butterball seeks to overcome consumers’ obstacles for more shared meals.

  • Consumers face challenges such as busy schedules, limited hosting space, and insufficient time or cooking skills, but 70% desire more shared meals despite these obstacles.


  • 87% of consumers prefer in-store shopping for shared meals, and younger generations (Gen Z and Millennials) are willing to spend more on groceries for communal dining.


  • Retailers can attract shoppers by offering digital resources like online recipes and ingredient lists, creating recipe bundle kits, and improving store organization for a streamlined shopping experience.

Source: Meat + Poultry

Unilever spices up Hellmann’s with flavored mayo.

  • Unilever’s Hellmann’s is introducing new flavored mayonnaise varieties, such as Chipotle and Garlic Aioli, to appeal to millennials and Gen Z, aiming to boost sales and usage among younger demographics.


  • Flavored mayonnaise, which accounts for a $210 million market, has seen sales nearly double in 2023. Hellmann's flavored mayo offerings have also driven increased sales of the classic Real mayonnaise, with 70% of flavored mayo buyers also purchasing the original.


  • While the pace of new flavor launches may slow, Unilever plans to continue expanding its flavored mayo range, recognizing its growing popularity and potential to enhance the Hellmann’s brand.

Source: Food Dive

Circana: Consumers increasingly spending on health and wellness.

  • Post-pandemic, consumers are adopting a more comprehensive approach to well-being, incorporating physical, mental, and social health into their daily lives. This trend is driving increased spending on products and services that support holistic wellness, including clean ingredients, digestive health, and energy-boosting items.


  • The report highlights significant growth in self-care products and services, with a 121% increase in sales of mental health books and a 250% rise in self-help books since 2020. Younger generations, particularly Gen Z and millennials, are leading the charge with a preference for stress-relief items like weighted blankets and aromatherapy.


  • There is a growing recognition of the importance of social interactions and community involvement. This shift is reflected in increased participation in in-person events and a heightened interest in products that foster social connections and personal engagement.

Source: The Food Institute

Near 12% of India's tested spice samples fail quality, safety standards.

  • Nearly 12% of spice samples tested by Indian authorities failed to meet quality and safety standards. This follows contamination concerns that led several countries, including Hong Kong, Britain, and New Zealand, to restrict imports of popular spice brands like MDH and Everest.


  • The Food Safety and Standards Authority of India (FSSAI) has conducted inspections and testing of mixed spice blends, taking action against non-compliant products as per Indian regulations. However, detailed reports on failed samples were not disclosed.


  • India, a major global player in the spice industry with a domestic market valued at $10.44 billion and record exports of $4.46 billion in the past fiscal year, faces scrutiny and potential market impacts due to these safety concerns.

Source: Reuters 

Sysco releases plan for FSMA food traceability compliance.

  • Sysco will collaborate with iFoodDS to implement advanced traceability solutions, enhancing data sharing and compliance with FSMA regulations.


  • The company will leverage cutting-edge digital technologies to track food products in real-time, ensuring accurate and transparent traceability throughout the supply chain.


  • Sysco will work closely with suppliers to meet new traceability standards and provide customers with clear and accessible information regarding product traceability.

Source: Produce Bluebook

Food industry pushes back against Kamala Harris’s ‘Price Gouging’ plan.

  • Executives in the food industry argue that rising costs for labor and ingredients, such as cocoa, necessitate maintaining profit margins to support new product development, countering claims of price gouging.


  • Vice President Kamala Harris has accused corporate greed of driving food-price inflation and is advocating for a federal ban on price gouging, which she plans to address more formally during her Democratic National Convention speech.


  • The food industry contends that the increasing costs of production and supply chain disruptions have directly impacted pricing, challenging the notion that the industry is unfairly exploiting consumers.

Source: The Wall Street Journal

Poultry Price Fixing Update

Pilgrim’s to pay $100 million in broiler grower class action suit.

  • Pilgrim’s Pride Corp. agreed to pay $100 million to settle a class action suit alleging the company was part of a conspiracy to underpay chicken growers. Pilgrim’s Pride denied any wrongdoing in the settlement agreement.


  • Both the recovery from Pilgrim’s and the aggregate recoveries in the case represent the largest sum recovered for a class of growers in any litigation, according to the court documents. Furthermore, the settlement filing noted that $100 million would be the largest amount paid in any antitrust case in the protein industry.


  • Other poultry processors to have reached agreements in the case include Tyson Foods ($21 million), Perdue Farms ($14.75 million), Sanderson Farms ($17.75 million), and Koch Foods ($15.5 million). If approved, the Pilgrim’s settlement would finalize the class action lawsuit.

Source: Meat + Poultry

Tyson, Amick Farms settle wage price-fixing case.

  • Tyson Foods and Amick Farms have recently settled a class-action lawsuit alleging wage price-fixing. The settlements, proposed on August 12 and August 16 respectively, do not disclose the financial terms. These settlements follow earlier agreements with other poultry processors including Pilgrim's Pride, Cargill, and Perdue Farms.


  • The class-action suit, initiated in 2019, accuses multiple poultry processors of conspiring to suppress wages for over a decade by sharing compensation data and engaging in coordinated meetings to plan salary reductions.


  • Settlements in this case have already totaled significant amounts, with companies like Perdue Farms and Sanderson Farms agreeing to pay substantial sums to resolve similar claims.

Source: Meat + Poultry

Consumers still reaching for ‘feel good’ products: Whole Foods exec.

  • Despite persistent inflation, consumers continue to gravitate towards premium food products, valuing quality and health benefits. Whole Foods Markets’ Jeff Turnas notes that even as food prices rise, shoppers are still prioritizing well-rounded, nutrient-rich foods and turning to supplements for added health benefits.


  • The specialty food ingredient market, including dietary supplements, is projected to grow from $112.4 million in 2022 to $168.6 million by 2031. Innovations in sweeteners and new product trends, such as turmeric-infused sourdough bread, are reflecting this consumer shift towards health-focused products.


  • While inflation has slightly eased, food costs remain a concern. Vice President Kamala Harris has proposed a federal ban on price-gouging to enhance food industry competitiveness, highlighting ongoing consumer and political focus on managing food expenses.

Source: Food Dive

Clemens Food Group displays new Hatfield sausage portfolio.

  • Clemens Food Group has introduced a range of innovative sausages under its Hatfield brand. The new portfolio includes all-natural, skinless sausage links and patties, available both frozen and fully cooked. The sausages feature a savory sage flavor and are designed for quick cooking with minimal shrinkage, making them ideal for high-volume foodservice operations.


  • The new sausages have received positive feedback from foodservice professionals. Sam Lazarro, executive chef at the Carilion Group, praised the sausages for their consistent quality and ease of preparation, which has streamlined operations in high-demand settings.


  • Clemens Food Group is committed to meeting high standards of animal welfare through its Gold Standard of Animal Care. This initiative reflects growing consumer demand for responsibly sourced and ethically produced food products. The company’s family-owned heritage and extensive network of farms support its dedication to quality and sustainability.

Source: Meat + Poultry

Japanese company unveils revolutionary diet drink.

  • Moringa’s “In Tansan” is a carbonated drink that transforms into a jelly-like substance in the stomach, promoting prolonged satiety. Available in lemon (low-calorie) and grapefruit (zero-calorie) flavors, it incorporates GABA for additional calming effects.


  • The drink’s jelly formation mimics the hunger-curbing effects of soluble dietary fibers, such as psyllium husk, but is presented in a modern, convenient format.


  • Since its June 4 launch, In Tansan has experienced high demand, frequently selling out on Amazon Japan, indicating strong consumer interest and success in the market.

Source: The Food Institute

Ingredient and product innovation in the dairy industry.

  • The dairy industry is leveraging advanced ingredients like phospholipids, milk fat globule membrane (MFGM), and bioactive peptides to enhance nutritional benefits. These innovations support cardiovascular health, cognitive function, and immune system performance.


  • New dairy products include caffeinated protein drinks, probiotic-rich milk, protein-rich snacks, and alcohol-infused ice creams. These innovations address consumer desires for health benefits, indulgence, and convenience.


  • The dairy sector is increasingly adopting sustainable practices, including reducing carbon footprints, using renewable energy, and implementing eco-friendly packaging to meet the growing consumer demand for environmentally responsible products.

Source: Dairy Foods

Nestlé names company veteran Laurent Freixe as CEO.

  • Nestlé has appointed Laurent Freixe as CEO, succeeding Mark Schneider. Freixe, a long-time Nestlé executive, will take over on September 1, 2024, following Schneider's resignation after nearly eight years in the role.


  • During Schneider’s tenure, Nestlé focused on divesting slower-growing segments and investing in high-growth areas such as coffee, pet care, and nutritional products. This strategy included significant deals like the $7.15 billion agreement with Starbucks and acquisitions in health and wellness.


  • Freixe inherits a company dealing with slow growth in key segments and changing consumer habits. His role will involve addressing these challenges by leveraging Nestlé’s strong portfolio and global presence to enhance productivity, innovation, and market share amid economic pressures and evolving consumer preferences.

Source: Food Dive

JUST FOR FUN

  • Liquid Death joins Van Leeuwen Ice Cream to offer Hot Fudge Sundae Water — Bloomberg

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