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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.
Have a nice weekend!
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Glen Clarke
Head of Food & Beverage
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Equal owner Whole Earth Brands to go private in sweetened takeover bid. |
- Whole Earth Brands agreed to a $4.875 per share offer by an affiliate of Sababa Holdings FREE
- The deal is expected to close in the second quarter
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Cigna Healthcare partners with meal kit provider HelloFresh. | - Cigna Healthcare and HelloFresh, the world’s leading meal kit company, announce an exclusive collaboration to offer discounted access to HelloFresh’s wholesome, affordable meals to as many as 12 million Cigna Healthcare customers through their employers
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Miami Beef acquires Hofmann Sausage Co. | - The Miami Beef Co. announced that it would acquire Hofmann Sausage Co., a producer of beef and pork franks, smoked sausage, bratwursts, beef jerky and condiments
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Benson Hill divests soy processing business for USD 72m. | - Benson Hill, an ag-tech company, has sold its soy processing business to White River Soy Processing, a specialty oilseed processor, for USD 72m
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RIND Snacks (Valor) acquires Small Batch Organics. | - RIND Snacks, a sustainable snack brand, has acquired manufacturer of granola products, Small Batch Organics
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Controlled Environment Agriculture startup Hippo Harvest raises $21MM. | - Hippo Harvest, a controlled environment agriculture (CEA) startup developing advanced greenhouse systems that produce sustainably-grown produce, announced the close of its $21M Series B funding round led by Standard Investments
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FOOD AND BEVERAGE MUSINGS | |
Rabobank: Pork market remains challenging for Q1. |
- Rabobank’s Q1 2024 Global Pork Quarterly report notes challenges in the pork market as key regions anticipate a slowdown in production due to a contraction in the sow herd
- Forecasts suggest a potential decline in global pork trade early in 2024, influenced by high inventories in importing countries and complications in European shipments to Asia caused by the Red Sea and Suez Canal crisis
- Despite expected production challenges in China, the United States, and Europe, lower feed costs offer relief for pig farmers, though weather-related volatility remains a concern, and Rabobank warns of ongoing uncertainty due to disease outbreaks in 2024
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Kevin’s Natural Foods increases sous vide output. |
- Kevin’s Natural Foods, acquired by Mars Inc. in 2023, has expanded its sous vide lineup, upgrading its grass-fed beef entrée to top sirloin and introducing new flavors like Honey Garlic Beef and Chimichurri Beef
- The company’s sous vide products have gained traction in retail partners such as Costco, Whole Foods, Target, Publix, and Walmart
- Kevin’s plans to further innovate by launching a line of frozen, single-serve entrées in spring, offering convenient, healthy meals with sous-vide proteins, signature sauces, vegetables, and starches in compostable bowls
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Mexico’s BBB Foods valued at $2.2 billion after shares jump 11.4% on New York debut. |
- Mexico’s BBB Foods saw an 11.4% rise in its shares on its New York Stock Exchange debut, reaching a valuation of $2.2 billion
- The Mexico City-based discount grocery retailer exceeded its initial public offering (IPO) price of $17.50, with shares opening at $19.50
- BBB Foods, like other foreign companies, is attracted to U.S. bourses for their broader capital pool and potential for higher valuations, though caution remains among investors despite expectations of an IPO sector rebound amid an improving economic environment
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Snoop Dogg, Dr. Dre bring hit ‘Gin & Juice’ to the beverage space. |
- Rappers Snoop Dogg and Dr. Dre are entering the spirits market with a ready-to-drink canned cocktail, Gin & Juice By Dre and Snoop, featuring four flavors
- Distributed by Southern Glazer’s Wine and Spirits, the gin-based beverages capitalize on the trend of celebrity-backed offerings in the booming RTD (ready-to-drink) space
- Dr. Dre, known for his Beats Electronics, ventures into food and beverage for the first time, while Snoop Dogg, a CPG maven, expands his portfolio, including a recent announcement of a hemp delta 9-infused beverage line, Do It Fluid
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Cocoa supply issues could lead to smaller chocolate bar sizes: expert. |
- Cocoa supply challenges, driven by a 46-year high in prices, may prompt major chocolate producers to experiment with product formulations and sizes to offset increased costs
- With prices expected to stay high until a new cocoa growth period in West Africa later this year, consumers may experience the impact during Thanksgiving and Christmas, as manufacturers could pass on additional costs
- Producers, facing uncertainty due to factors like diseases, climate conditions, and geopolitical concerns, may consider strategic decisions, such as job cuts and potential price hikes, to navigate the cocoa conundrum
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Positive shifts for global poultry market. |
- Rabobank Senior Analyst Christine McCracken discussed the positive shifts in the global poultry market during the 2024 International Production & Processing Expo
- According to Rabobank’s forecast, lower feed costs are expected to drive a 1.5% to 2% growth in poultry, making it the fastest-growing protein in the global animal protein market
- Despite challenges like outbreaks of Highly Pathogenic Avian Influenza (HPAI) affecting trade volumes, the overall outlook for poultry production and consumption remains moderately positive, with potential risks including geopolitical disruptions in shipping routes
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Report: Global seafood production could rise 20% to 2050. |
- Global seafood production is projected to increase by 20% by 2050, with annual seafood production expected to reach 160 million metric tons
- The rise in demand per capita is foreseen, driven by a doubling of marine aquaculture and almost tripling of finfish production
- Despite regional variations, per-capita seafood demand is predicted to surpass consumption of terrestrial meat and vegetarian foods in most regions, and Greater China is anticipated to become the largest marine seafood market
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What the US FDA reorganization means for alternative protein regulation. |
- The FDA is undergoing a major reorganization following a delayed response to an infant formula contamination crisis, creating the largest transformation in FDA history
- As part of this overhaul, the Office of Regulatory Affairs (ORA) will be renamed the Office of Inspections and Investigations (OII), with a focus on field-based operations
- The impact on alternative protein regulation, including cultivated meat and precision-fermented proteins, remains uncertain, but industry stakeholders express hope for continued FDA leadership and efficient regulatory processes in the evolving landscape
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Organic growth continues, even amidst inflation. |
- Sales of organic food exceeded $60 billion last year, driven by a post-pandemic focus on health and environmental consciousness
- Despite inflation affecting various grocery items, organic products have not seen a decline in popularity, with a 12% increase in the quarterly percentage of American adults regularly purchasing organic food since Q1 2021
- The trend is particularly prominent among consumers earning $100,000 or less annually, with a 7% increase in organic food purchases among those making $50,000-$100,000 compared to two years ago
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Liquid Death expands into electrolyte drink mixes. |
- Liquid Death, known for its canned water and tea, is expanding its product line with Death Dust, an electrolyte drink mix available in flavors like Severed Lime and Mango Chainsaw
- Each packet contains 35 calories, essential vitamins, sodium, potassium, and magnesium, catering to consumers seeking low-calorie options with added nutrients
- The move marks Liquid Death’s continued growth in the beverage market, aiming to capture a broader audience beyond health enthusiasts, amidst competition from major players like PepsiCo, Unilever, Keurig Dr Pepper, and Coca-Cola entering the electrolyte drink mix category
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Jack Link’s announces manager for new plant. |
- Jack Link’s has appointed Karl Diver as the plant manager for its new facility in Perry, Georgia, set to open in mid-2025
- Diver, with over a decade of experience in food manufacturing, will oversee construction and operational readiness
- The company, known for its global meat snack brands, plans to invest $450 million in the 120-acre site, with Diver set to move to Perry in May 2024 after completing an onboarding process
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- Retailers are working to meet Valentine’s Day demand. Cocoa prices are soaring. Will it affect your Valentine’s Day chocolate? — CNN
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