October 11, 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

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Cannae Holdings, KDSA to acquire majority stake in The Watkins Company.

• Cannae Holdings, Inc., in partnership with KDSA Investment Partners announced today an agreement to acquire a majority stake in The Watkins Company, a 156-year-old American heritage brand renowned for its high-quality flavoring products.

Source: Mergermarket

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Simulate acquired by Ahimsa Companies.

• Simulate (NUGGS), a New York-based plant-based chicken products manufacturer, has been acquired by Ahimsa Companies, a private equity house focusing on the plant-based food industry.

Source: Mergermarket

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Lewis Brothers Bakeries receives investment from One Rock Capital Partners.

• One Rock Capital Partners, LLC announced that one of its affiliates has completed a strategic investment in Lewis Brothers Bakeries, Inc., a third generation, family-owned bread and baked goods manufacturer headquartered in Evansville, Indiana, selling its products under market-leading brands including Lewis Bake Shop, Bunny Bread, Butternut and Healthy Life.

Source: Mergermarket

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Investment firm forms Global Flavors Group.

• Kaho Partners LLC, an investment firm focused on building companies through organic and acquisitions-driven growth, has formed Global Flavors Group. The Global Flavors Group platform aims to acquire and scale food manufacturers focused on international cuisine, according to the company.

Source: Meat + Poultry

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Trilliant lenders grant extension, setting up Blackstone recap.

• The Blackstone Group plans to pursue a recapitalization of portfolio company Trilliant Food & Nutrition over the next three months after lenders granted it an extension on its debt.

Source: Mergermarket

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Bachan’s taps Centerview to explore potential sale, sources say.

• Bachan’s, a founder-owned Japanese barbecue sauce manufacturer, has appointed Centerview Partners to explore a potential sale, according to four sources familiar with the situation.

Source: Mergermarket

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Once Upon a Farm partners with Equitable Food Initiative.

• Once Upon a Farm, the leading childhood nutrition brand, is pleased to announce a trailblazing partnership with Equitable Food Initiative (EFI).

Source: Produce Bluebook

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US Foods 2024 Diner Dispatch Survey shows shifts in diner preferences.

• The 2024 Diner Dispatch survey shows a growing preference for dining in restaurants over takeout, with 55% of diners choosing the former, up from 43% in 2023, driven by atmosphere and socializing opportunities.
• Monthly spending on dining out has increased to an average of $191 in 2024, compared to $166 in 2023, reflecting inflationary pressures on menu prices.
• Casual dining remains the most popular choice, rising to 69% in 2024, while preference for QR code menus has declined significantly, with 90% of diners favoring printed menus instead.

Source: Produce Bluebook

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Defining clean label.

• The concept of clean label has evolved to include not just ingredients, but also processing methods, packaging materials, and marketing claims, emphasizing transparency and authenticity in food production.
• Yaza, a labneh manufacturer, exemplifies clean label principles by using only two ingredients and sourcing milk from local farms to minimize environmental impact, showcasing a commitment to sustainability.
• Emerging concerns about food contact chemicals, particularly PFAs, are prompting a deeper examination of packaging safety and health implications, as consumers seek cleaner and safer food options.

Source: Meat + Poultry

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Chobani expands high protein presence with new yogurt.

• Chobani is launching its new High Protein line, featuring Greek yogurt cups with up to 30 grams of protein and drinks with 15 to 30 grams, aiming to meet the growing consumer demand for high-protein, low-sugar options.
• The line is marketed as all-natural with no added sugars or preservatives, appealing to a broader audience, including those who prioritize taste and health in their dietary choices.
• With various flavors available and plans for nationwide distribution of yogurt cups this fall and drinks in January, Chobani is reinforcing its commitment to its core yogurt business amidst mixed results in other product categories.

Source: Food Dive

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Mastronardi Produce unveils WOW Utopia Strawberries.

• Premium, non-GMO strawberries with enhanced sweetness, juiciness, and aroma, developed through advanced breeding techniques.
• Uniform shape and size, packaged in a modern two-piece carrier that highlights quality and freshness.
• Sleek matte-black packaging with reflective gold foil, designed to stand out on store shelves and enhance the consumer experience.

Source: Produce Bluebook

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Consumers frustrated over higher grocery prices.

• Nearly 90% of U.S. consumers express frustration with rising grocery prices, with 86% specifically citing food costs as their primary concern.
• Many shoppers are adopting value-focused behaviors, such as switching to cheaper brands, using coupons, and buying fewer items to manage expenses.
• While 55% of consumers remain loyal to their regular grocery stores, 45% are willing to switch for better savings, highlighting a shift in loyalty driven by price sensitivity.

Source: Meat + Poultry

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Mangos everywhere? Fresh Thyme Market releases 2025 trend predictions.

• Fresh Thyme Market has released its 2025 food trend predictions, highlighting a focus on functional ingredients, adaptogenic mushrooms, and non-alcoholic mood-enhancing beverages.
• Mango-flavored products are set to dominate, with an emphasis on their nutritional benefits, while natural sweeteners like honey and maple syrup gain popularity.
• The report also forecasts a rise in next-gen sustainable practices and protein-boosted products across various grocery categories, reflecting consumer demand for healthier, innovative options.

Source: Produce Bluebook

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Inside Smucker’s evolving relationship with US retailers.

• J.M. Smucker is enhancing partnerships with retailers by aligning strategies through joint business planning, focusing on collaboration in response to post-COVID challenges like supply disruptions and inflation.
• The company uses advanced analytics to identify consumer needs, driving product innovation and ensuring that items are available on shelves to meet demand.
• Successful products, such as Jif Peanut Butter and Chocolate and Cafe Bustelo’s multi-serve coffee, showcase how insights can lead to innovations that attract new consumers to their categories.

Source: Food Dive

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How Chomps went from a side hustle to the fastest growing snack in the US.

• Chomps has experienced remarkable growth, achieving 206% sales increase last year and aiming to surpass that this year by focusing on high-protein, low-sugar meat snacks made from clean ingredients.
• Co-founders Pete Maldonado and Rashid Ali began the company as a side project in 2012, driven by a desire for healthier on-the-go protein options without added sugar and preservatives.
• With plans to open a manufacturing plant in Missouri in 2025, Chomps aims to expand its reach while maintaining its authentic brand messaging, positioning itself as a trusted choice for consumers seeking better-for-you snack options.

Source: Food Dive

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Court denies petition for stronger EPA regulation of large livestock farms.

• A federal court denied a petition from Food & Water Watch for stricter regulations on large livestock farms, allowing the current EPA framework for concentrated animal feeding operations (CAFOs) to remain unchanged.
• The lawsuit aimed to require all farms to obtain Clean Water Act discharge permits unless they could prove they weren't polluting, but the court sided with the EPA's approach to regulate through information gathering.
• Pork producers welcomed the decision, asserting that any major regulatory changes should come from Congress, not through judicial actions by activist groups.

Source: Food Dive

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Nestlé taps into $110B global cuisine markets with Mexican, Asian brands.

• Nestlé is launching new frozen food brands, Mings and Tapatío, to cater to the growing demand for Mexican and Asian cuisines among consumers, especially Gen Z, who seek bold and diverse flavors.
• The Mings brand is created by celebrity chef Ming Tsai, while Tapatío is developed in partnership with the popular hot sauce brand, emphasizing authenticity and high-quality recipes.
• The move aligns with Nestlé’s strategy to capture a share of the estimated $110 billion global cuisine market, complementing their existing product offerings and responding to trends in consumer preferences for international flavors.

Source: Food Dive

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The Weekly Sip: Keurig Dr Pepper serves Shirley Temple 7UP | Constellation taps CPG veteran as executive VP.

• Keurig Dr Pepper has launched a limited-edition Shirley Temple flavor of 7UP, combining classic lemon-lime with pomegranate and cherry notes, available through 2024.
• Constellation Brands appointed E. Yuri Hermida as executive vice president and chief growth and strategy officer, focusing on consumer insights and new ventures, as the company prioritizes its beer portfolio amid declining wine and spirits sales.
• The Mary Dowling Whiskey Company introduced Winter Wheat Bourbon, aged for four years with flavors like vanilla and cinnamon, honoring the legacy of "Mother of Bourbon," Mary Dowling.

Source: Food Dive

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Perdue Farms lauds new labeling guidelines for ‘pasture-raised’ chickens.

• Perdue Farms praised the USDA's updated guidelines on "pasture-raised" claims, which now encourage producers to provide documentation confirming that animals are raised on pasture for most of their lives.
• The changes aim to improve transparency and clarity for consumers, addressing concerns highlighted in Perdue’s petition and consumer surveys about the definitions of "pasture-raised" versus "free-range."
• The USDA decided against codifying specific definitions for animal raising claims, citing the impracticality for small farms, while maintaining a review process to ensure label truthfulness and compliance.

Source: Meat + Poultry

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USDA announces next steps for greater competition.

• The USDA announced steps to enhance competition among U.S. farmers and ranchers, following President Biden's Executive Order on competition, including increasing transparency in seed access and assessing conditions in the meat retail industry.
• An interim report released by the USDA draws from over 1,600 public comments and interviews with various stakeholders in the meatpacking and retail sectors, aiming to identify competitive challenges.
• The Meat Institute criticized the USDA's proposed rulemaking under the Packers & Stockyards Act, arguing it could hinder market flexibility and innovation by favoring traditional cash markets over Alternative Marketing Arrangements (AMAs).

Source: Meat + Poultry

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Arctic Gala non-browning apple receives FDA approval.

• Okanagan Specialty Fruits has received FDA approval for its Arctic® Gala apple, following earlier approvals from USDA and Canadian regulatory bodies, allowing for its commercialization as a non-browning apple.
• The Arctic Gala, like its predecessors (Arctic Golden, Arctic Granny, and Arctic Fuji), is engineered to resist enzymatic browning, maintaining freshness for up to 28 days after slicing, thus reducing food waste.
• OSF aims to expand its portfolio of non-browning apples, with future varieties such as Arctic® Honey and Arctic® Pink in development, catering to the evolving preferences of consumers and foodservice providers.

Source: Produce Bluebook

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Chefs, food manufacturers embrace Gen Z-driven ‘chaos cuisine’.

• Gen Z is driving the demand for authentic international flavors, leading to innovative dishes that break traditional culinary boundaries, such as combining Nashville hot chicken with bao buns.
• This generation shows a strong preference for spicy foods, with over half identifying as fans of hot sauce, and is shifting away from Italian cuisine in favor of Mexican, projected to grow significantly in the coming years.
• Health consciousness is on the rise, with younger consumers increasingly seeking protein-rich options and viewing food as fuel for energy and clarity, paving the way for new, health-focused culinary trends.

Source: Food Dive

JUST FOR FUN

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• Leftovers: Chips Ahoy! goes overboard for jumbo-sized cookies | Lifeway turns to trendy kefir flavors – Food Dive

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