Well hello there everyone! After working on some exciting consulting projects, I’m back from Italy, where I had the pleasure of meeting with and being hosted by amazing food and wine producers. I’ll share more once I’ve adjusted to the time zone (and digested all the pasta!), but for now, let’s dive into the news

Ways to Help Hurricane Victims

While the Siete deal has taken over LinkedIn, Instagram, and TikTok, let’s not forget Helene and the soon-to-come-ashore Milton.

I know it’s crunch time with Q4 and 2025 planning, so I’ll make this easy: check out The Frontline Impact Project, a nonprofit started by KIND founder Daniel Lubetzky. Originally created during the pandemic, the organization matches corporate CPG donors with hospitals, educators, and disaster relief organizations seeking assistance. Their goal is “to make product donations easier for CPG companies.” See, easy. 

Right now, they’re focused on collecting non-perishable food, hygiene items, and first aid supplies for communities in Western North Carolina but they will also be supporting Florida residents impacted by Hurricane Milton. 

If you’re interested (and you should be!!), all you have to do is reach out here to set up a donation. Coming from New Orleans and having experienced Katrina, I know how much this support matters.

Is Better Brand Still Alive? 

The CPG rumor mill has been buzzing about Better Brand, the low-carb, high-protein baked goods provider. Social media is filled with customers claiming they've been charged for products that never shipped, and the company's website was down briefly last week, adding fuel to the fire.

But just yesterday, their Instagram account posted about their Better Sesame Bun, and the website is back up and running, taking orders. Founder Aimee Yang reassured her own followers that it was just a technical glitch, the company is fine, and orders are being processed.

However, some customers report receiving emails from Better Brand’s customer service team stating the company is fighting off a “hostile takeover event by large institutions.” Stay tuned!

Let’s Talk Siete

Now, let’s circle back to the tortilla chip in the room.

By now, you’ve heard that snack and beverage giant PepsiCo has acquired Mexican-American food brand Siete Foods. If this is the exit Siete hoped for, I’m thrilled—they're one of the most genuine, hardworking teams in the industry. But amidst the celebration, here are a few key takeaways. 

Products and Platforming

Many speculate that Pepsi admired Siete’s “platform” potential, but I believe Pepsi’s interest lies more in snacks—and maybe dips. That’s where Pepsi can flex its distribution muscles and scale quickly. Categories like canned beans and frozen tortillas? Not likely the crown jewels here. Though Siete’s sprouted bean dips and vegan queso didn’t stick and were discontinued, Pepsi could revive that space – albeit perhaps with a slightly less BFY bent. Seasonings, in my opinion, are an easy cut with a lack of product differentiation and slow turns in the category. 

Siete also made a smart move by evolving beyond the natural foods crowd. Starting with grain-free tortilla chips, they expanded to more intensely flavored chips that could go toe-to-toe with Doritos. And, most recently, the brand ventured into kettle chips with even more mainstream flavors like salt and vinegar. 

These strategic snack moves likely got Pepsi’s attention— Siete wasn’t just playing defense; they were offering real competition. The chips, in particular, were a credible share threat to Pepsi’s existing brands and not a product format that Pepsi could (authentically) create on their own. 

Smart Money 

When it comes to exits, things aren’t always as straightforward as they seem. While headlines often focus on the big payout, the actual returns for founders and early investors can vary depending on how the deal is structured and the company’s cap table (i.e., the breakdown of company ownership and who gets paid what with an exit). 

Siete only raised a minority investment of $90 million in 2019 from Stripes Group – which means their cap table may not have been as diluted as it could have been with multiple rounds of funding. 

The Garza family likely came out well in this deal, but it’s important to remember that not every founder is guaranteed a huge windfall from an acquisition. The timing of when you raise capital, who you raise it from, and how your equity is structured can significantly influence how much you benefit from an exit. Founders who don't pay attention to these details can be surprised by how little they personally make from a big acquisition, even if their company sells for a hefty sum.

Tempering Future Expectations

$1.2 billion dollars is certainly impressive, but let’s compare it to other recent snack food exits. **note: I’m using data (and the wording) that has previously been shared **

• Quest (2019): Estimated 2019 net sales of $345M; acquired for $1 billion (2.9x sales)

• Perfect Snacks (2019): $70M in net revenue; acquired for $284M (4.1x net revenue)

• KIND (2020): Sales of $1.5B annually; acquired for $5 billion (3.33x sales)

• Lilly’s (2021): More than $110M in sales in 2020; acquired for $425M (3.9x sales)

• Dot’s Pretzels/Pretzels Inc (2021): $275M in aggregate net sales for the trailing 12 months; acquired for $1.2 billion (4.36x net sales)

• Clif (2022): $800M in sales; acquired for $2.9 billion (3.6x sales)

• Siete: Estimated 2024 sales of 500M ; acquired for $1.2 billion (2.4x sales)

While these numbers don’t account for all factors in valuation, one thing is clear: This deal is solid, but let’s not jump to conclusions about a return to high valuations. 2020 it is not. 

Wicked Chicken

Just a few months after announcing the acquisition of plant-based food brand Wicked Kitchen and the licensing rights to Good Catch, newly formed holding company Ahimsa Companies has also acquired faux chicken producer Simulate (formerly known as Nuggs).

Nuggs was part of the wave of “it’s not a food brand, it’s a tech company that makes food” over the past few years, even incorporating V1 and V2 into its product names. Its financial backing from tech investors reflected that strategy, raising over $60 million and, at one point, achieving a valuation of $260 million, according to TechCrunch. 

However, the company's status has become murky in recent months. The product locator returned zero hits, regardless of the city I searched, and Simulate has been notably quiet on Instagram. It's unclear if the brand’s “Insta-Chicken,” a microwavable chicken breast-like product launched earlier this year, ever made it to market. 

Ahimsa aims to consolidate plant-based food companies, leveraging economies of scale and improving efficiencies to help these brands achieve financial success and stability. The plant-based food market has faced significant challenges in recent years, to say the least. While others have attempted to create similar alt-meat conglomerates, Ahimsa believes it will succeed where others have not. The company has also purchased an alt-meat plant in Ohio (likely the old Gathered Foods production facility) and stated that owning a complete supply chain will benefit its portfolio companies.

Read up on Ahimsa’s strategy moving forward.

1-800-Flowers says Scharffen Berger Pickup Can Add $50M-$100M in Revenue

In August, craft chocolate brand Scharffen Berger changed hands yet again, selling to online gifting platform 1-800-Flowers. While executives were initially tight-lipped about their plans, the company’s recent quarterly earnings call has provided clarity. (For a quick history lesson on the companies and deal, get up to speed here.)

Deal Details

• On the earnings call, 1-800-Flowers founder and CEO James Francis McCann shared that he had considered acquiring Scharffen Berger 15 years ago, but “another company beat [him] to the punch.”

• With the brand generating only “[a] couple of million dollars” at the time of purchase, McCann described the deal as “low risk.” 

• McCann noted that the deal was similar to a prior acquisition, as it included only the intellectual property, the brand URL, a database of past customers, and a few staff members.

The Opportunity

• 1-800-Flowers has a clear and capital-efficient path to growing Scharffen Berger's sales, McCann said, by leveraging existing marketing campaigns, adding products to gift baskets, and exposing them to the company’s existing “huge customer base.”

• While these efforts alone will “double or triple” top-line sales, McCann pointed out that “that level of growth is inconsequential when you think about our size.” In the next five years, 1-800-Flowers believes it can grow the business to $50-$100 million.

The Unknowns

• Production: McCann noted that while Scharffen Berger has “a good facility,” it’s not equipped to handle larger volumes. Instead, 1-800-Flowers plans to utilize its own production facilities, requiring “no additional capital cost.” So, was the Scharffen Berger plant even part of the deal? If not, who bought it?

• Product: McCann repeatedly highlighted Scharffen Berger’s craft appeal and giftable nature. This raises concerns about the brand’s future presence in brick-and-mortar stores with its lower-priced Break’s line.

• Brand Proposition and Positioning: The Scharffen Berger website already redirects to Harry and David, and all social channels appear to have gone silent. How much brand presence does 1-800-Flowers truly want to maintain? Without it, does a Scharffen Berger product hold the same cachet with shoppers?

News Bites: 

Chilly News: Just when you thought your LinkedIn feed had peaked on cold plunge content… Wellness club Remedy Place has partnered with Kohler to create a new ice bath. With a price tag of a cool $15,000, the tub can be installed indoors or outdoors and includes a “breath light aid.”

On the Move: 

• Oats Overnight Chief Strategy Officer Nina McKinney is stepping into the newly created role of Chief Business Officer. Founder and CEO Brian Tate commented on LinkedIn that McKinney was “born to operate.”

• Lemon Perfect has a new top executive, with founder Yanni Hufnagel taking on the role of executive chairman and former spirits exec Jeff Popkin stepping in as CEO. Meanwhile, president Jim Brennan has also departed the company.

• Marisa Bertha (the only person I’ve seen navigate a trade show in heels) has been promoted to Chief Strategy Officer at water brand Liquid Death.

• Kegan Simons is keeping things spicy, transitioning from director of sales at Fly by Jing to VP of sales at Zab’s.

• After stepping away from running snack brand IWON, Mark Samuel will now lead Unbun. Let’s hope his busy schedule still allows him time to post on LinkedIn ;) 

Distribution Wins: 

• Snack brand Rolling Pin Snacks has launched a 28 oz bag of its Crunchy Corn in five new Costco regions.

• Four years after being discontinued at Kroger due to a branding transition, Deep Indian Foods is back in the retailer’s freezer set. Kudos to GM Kiernan Laughlin for the awesome (and honest) LinkedIn post detailing the news.

• Bean-based meal-on-the-go brand Lentiful can now be found in all Wegmans locations, where the heat-and-eat cups are intriguingly stocked alongside the mac and cheese section.

New Plant(ish)-Based Player: Tom Lynch, a former Beyond Meat product developer, has co-founded food tech company Asentia alongside former Mission Barns team member Parendi Birdie. Rather than following the alt-meat herd, Asentia aims to “simply make meat better” by using plants to enhance meat instead of entirely replacing it. Products listed on its LinkedIn page include truffle mushroom meatballs, bourbon bacon artichoke sausages, and black Angus roast shallot and shiitake burgers.

Misfits Looks to Add Members: After a successful summer test, online grocery retailer Misfits Market is officially launching its loyalty program, Misfits+. For a $69 annual fee, shoppers receive exclusive discounts and reduced shipping costs. One claim that caught my eye is that “your Misfits+ annual fee pays for itself with just one order per month.” How is that possible, you might ask? According to the Misfits+ page, customers generally save more than $69 when comparing Misfits+ products to standard MSRP or other grocery prices. Hmmm. I’ll watch to see how that one lands with shoppers. 

Add to Cart: New Products On Shelf

If you’re chronically online, you’ve probably seen a creator or two sharing their love for Buldak’s instant Carbonara ramen. Building on that success, parent company Samyang Foods is bringing its Buldak Carbonara Dumplings in the U.S. To heat things up further, the South Korea-based company will also offer 50-count packs of its Buldak Hot Sauce packets.

After testing value-added products like smoothie bowls and sorbet, Pitaya Foods has launched a new line of smoothie pops. Unlike other Pitaya products which are available on the brand’s website, these pops are exclusive to Walmart. The pops are currently sold in the frozen fruit section and I’ll be watching to see if their positioning evolves with greater distribution. I see a solid opportunity in selling these pops in the novelty section, where their cardboard “squeeze pop” format could make them a standout BFY option against brands like Popsicle and Icee.

Fast casual restaurant chain Tatte is venturing into CPG with a two-SKU line of coffee beans. Available only in cafes, the coffees are produced in partnership with Massachusetts-based roasters George Howell Coffee and Gracenote Coffee. With 40 locations across the DC and metro-Boston areas, Tatte appears to be on an expansion tear. In my suburban town alone, we’ve gone from zero locations to three cafes within a four-mile radius in the last year.

Breakfast brand Belgian Boys has rolled out two Breakfast All Day and three Pancakes-to-Go kits. This seems like a smart move, putting the brand in a new section of the store and opening channels like c-stores, while also offering a fresh way to drive trial. Remember, think like your acquirer! In recent years, Belgian Boys has pivoted successfully from cookies (where IMO they had a less defensible position compared to other imported cookies) to refrigerated breakfast items.

Chikka Chikka is capitalizing on the digestive health trend with a new line of fennel seed snacks inspired by the South Asian treat Mukhwas. Packaged in pocket-sized tins, these snacks combine fennel seeds with functional ingredients that freshen breath, support digestion, reduce inflammation, and provide a boost of fiber and minerals. While consumer education will be essential for success, the brand deserves credit for introducing functionality, a limited ingredient deck, and global flavors to the breath mint market. I can easily see this taking off at Erewhon.

Speed Round: 

• Just in time for the holidays, snack brand Snoods is launching limited-edition Sweet Kugel noodle chips. It's great to see brands introducing sweet flavors to typically savory formats—think Siete’s buñuelos and You Need This’ Churro Puffs.

• Nespresso is debuting its first RTD: Master Origins Colombia coffee sweetened with honey. Despite its steep price of $66 for 12 cans (7.6 oz each), it’s already sold out online.

• Water and coffee bean producer WAIĀKEA is combining its existing product lines with a new bag-in-box cold brew coffee. The brand claims that consumers can drink the coffee as is or use it as a concentrate.

Now, let’s dive into the news. There’s a lot to catch up on!

Kodiak Cake Execs Ready to Start a Fire in Snacking

When it comes to second acts for successful CPG CEOs, the spotlight may be on RxBar founder Peter Rahal and his new protein bar brand David. But there's another CPG exec-founded brand brewing that you should have on your radar as former Kodiak Cake President Cameron Smith and former VP of Marketing Brandon Porras gear up to launch a new snack brand in Q4. 

Quick recap: After Kodiak’s expansion from baking mixes into frozen breakfast and snacks, the company was sold to L Catterton in 2021. Smith and Porras left in January and July 2023, respectively.

Porras teased on LinkedIn that the new brand will “[fill] a gap in the category,” while Smith highlighted their ambition to create something that can “make a real impact.”

So, what’s this new venture called? Trademark filings suggest the name is “Kindling,” which fits nicely with their playful job listings that include responsibilities like “Be a steady flame,” and “Invite Others to the Campfire,” noting, “Roasting is for marshmallows, not people.” A refreshing sentiment.

Job postings for hybrid roles in Nashville reveal a push into better-for-you snacks that will “taste just as good as the original.” Meanwhile, trademark filings cover a wide array of products—from jerky to cookies, chips, trail mix, fruit snacks, and protein bars—and include the slogan “Feed Your Flame.”

Interestingly, Kindling’s go-to-market strategy seems to prioritize Costco and the club channel. A Field Marketing Manager job posting specifically mentions responsibilities will include managing Costco roadshows and coordinating with the retailer’s distribution warehouses. That said, it’s not an entirely surprising strategy given Smith’s history at Kodiak, which credits Costco as its first major retailer and a long-time innovation partner. 

Water Woes

Waiakea, known for its Hawaiian volcanic water, is facing scrutiny from the FDA after “significant” violations were found at its bottling facility. This week the agency published a warning letter on its website detailing the result of inspections conducted between December 2023 and February 2024 just months before an April 2024 recall by Waiakea was prompted by consumer complaints of “floating particles” in bottles.

While much of the company’s specific procedures and processes are redacted in the document, in the letter the FDA alleges that Waiakea’s water treatment process failed to “effectively” address biological hazards, leading to the presence of mold and yeast. Additionally, the FDA noted inconsistent logging and sanitizing processes by employees. 

Waiakea’s testing of the recalled products identified the presence of Pseudomonas Aeruginosa and Paecilomyces lilacinus, while FDA laboratory analysis identified another seven strains of mold and yeast. 

Waiakea initially responded to the FDA's concerns by proposing corrective actions, including updated equipment and revised testing protocols. However these efforts are not enough, according to the FDA, and what has been submitted to the agency is still missing critical information. As such, the letter notes, “We remain concerned that the [redacted process] for the treatment of product water is not operated in a manner that is effective in accomplishing the intended purpose.” 

Another “Oily” Alliance

Beyond Brands founder Eric Schnell has launched a new “Seed-Oil Free” certification for brands and restaurants, developed in collaboration with influencer Dr. Andrew Weil and led by CEO Jonathan Rubin. The move follows industry efforts like 2022’s marketing awareness campaign by the “Clean Oil Crew” and the 2017 launch of the Healthy Fat Coalition, which promoted the use and consumption of animal-based fats.

There’s a lot of chatter about seed oils within the CPG space, but is it a mainstream trend or just part of the natural products echo chamber? I wonder if the more compelling play might be highlighting the oils you do use—like olive or avocado oil—to convey a premium positioning, regardless of whether consumers are clued into the whole seed oil debate.

News Bites:

Juicy Deal: Juice manufacturer Perricone Farms has acquired Natalie’s Orchid Island Juice Company. While a website post by Natalie’s execs reassures that product quality, shelf life, and branding will remain unchanged, the FAQs hint at potential changes in distribution strategy and sourcing.

Hail to the (New) Chiefs: Former Alter Eco and Safely CEO Mike Forbes takes the helm at MaryRuth’s Organics as CEO. The supplement company was sold back to its founders last month; Colostrum company Miracle Moo hired former Against the Grain CEO and Grillo’s Pickles Chief Revenue Officer Mike Watts as its new CEO;  Melissa Hauser has been appointed President, Americas at Minor Figures. Hauser has climbed the ranks at the coffee and alt-milk brand, first serving as VP of Sales for North America and, most recently, General Manager for Minor Figure’s North American business. 

Nothing Fishy Here: Cookbooks are a rising marketing tool for CPG brands and joining the likes of Lotus Foods, Red Boat Fish Sauce, Fly by Jing and Masienda is tinned fish brand Fishwife. Co-founder Becca Millstein’s cookbook is now available for preorder. 

Donald Trump “Spills” the Tea: Comedian Theo Von’s podcast interview with Donald Trump has been all over TikTok and Instagram, and if you’re a CPG geek you’ll notice the cans of Ryl Tea next to the host and former President. Politics aside, it’s always an interesting (and risky) choice to align your brand with a specific political party. No comment yet from Ryl on the sponsorship deal but, meanwhile, Von previously shared Smart Waters with Senator Bernie Sanders. 

A New Day: After 20 years at the helm, Zach Adelman announced on Linkedin that he stepped down from superfood brand Navitas last month, handing the role over to COO Ira Haber. Adelman wrote he has “an exciting new project… that keeps me engaged in the industry” and his LinkedIn profile indicates he is the Managing Director at dried tropical fruit company Sunset Fine Foods. 

Peet’s New Plant-Based Pour: Ripple’s Plant-Based Barista Blend has landed at Peet’s Coffee nationwide, expanding the chain’s existing dairy-free options of oat, almond, and soy milk. “Peetniks” were able to try Ripple Plant-Based Barista Milk for free over the last two weeks of August. 

The Science of State Fairs: Every summer I drool over the photos from the Minnesota State Fair. So this year I was particularly excited to see the CPG industry represented at the fried foods mecca. While Naturally MN Executive Director Allison Hohn created the Minnesota Fair Foodie Guide (I’m waiting to hear how the Deep Fried Ranch Dressing bites and Dill Pickle Lemonade were), demoing at the fair were local brands including K-Mama, Gingerbread Village, B2B Farms Honey, P&TY Granola Bars, Bao Bao Buns, Willa’s Oatmilk and Jump Chili. 

People on the Move: Sophia Sesto was promoted to VP of Culture at Poppi; Seventh Generation CEO Alison Whritenour is moving onto a sweet gig, assuming the role of Chief Commercial Officer at Unreal Snacks; Abbey Appel was promoted to Whole Foods Senior Category Merchant for Functional Supplements & Functional Foods; David Paul Miller (or as you probably know him, DPM) will now head up sales as Chief Sales Officer at Puravida Foods; BTR Bar is bringing on CPG veteran Todd Kluger as its VP of Sales and Marketing. Kluger formerly held the same role at the now-closed chocolate brand Ocho

Foxtrot’s Local Brands? I happened to spy this Eater.com article about Foxtrot’s reopening, and saw something weird….check out this sidebar. Pretty sure Fishwife, Lexington Bakes, Scribe Wine, and Yough! are not local to Chicago.

New Products on Shelf:

Baking brand Supernatural is adding some sparkle to Goliath's latest toy release, Tasty Tinies Bake Shop. If you haven’t yet fallen into the wormhole of Mini-Verse TikTok videos, where have you been? Tasty Tinies taps into the tiny-toy trend with an interactive, edible experience that lets kids mix and "bake" mini cakes in just 25 seconds. Available in three flavors, the mixes feature Supernatural’s Rainbow Pop, Pink Pop, and Unicorn Tracks sprinkles.

Sol-ti is making a play for the shelf-stable market with SuperStix, a line of coconut water-based, Organic-certified hydration powders. Free from stevia, cane sugar, and synthetic salts, these powders come in four flavors: lemon with strawberries, chlorophyll, blueberries, or dragon fruit. Whole Foods has the exclusive launch.

Kraft Heinz is back at it with their licensing magic, partnering with functional food brand RYSE for a line of Jello-flavored Whey Protein and Pre-Workout powders. The five SKUs will debut in GNC and Vitamin Shoppe and are Jello's first foray into "active nutrition.” Kraft Heinz Sr. Manager of Licensing Charter Foster  shared on LinkedIn that the Jello brand fits the category format, highlighting its strong brand recognition, "beloved" taste profiles, and ability to create “at-shelf happiness with the images (and brands) shoppers seek in other grocery aisles.”

No Cap Soda is the latest better-for-you soda player to enter the chat. With flavors like Bussin’ Berry and Apple Rizz (and a No Cap! Aura 12-pack), each can boasts just 10 calories, 5 grams of fiber, and a mix of pre- and postbiotics. The brand was co-founded by former Congo Brands VP Sam Wilson, who previously led sales teams at Clean Cause, Sway Energy, Bang Energy, and Red Bull.

It seems 2024 is the year of the crunchy cookie (sorry, chewy fans, I feel your pain). We've already seen crispy bite-sized cookies debut from Fancypants and now allergen-friendly brand Every Body Eat is joining the fray with new Cookie Bites in Chocolate Chip, Ginger Cinnamon, and Cranberry Vanilla. Available online now, the cookies will hit Whole Foods Market nationwide in October.

Starkist's latest release might confuse Jessica Simpson even more than Chicken of the Sea did: introducing Beef Creations. The 2.6oz shelf-stable pouches feature fully-cooked ground beef in Taco, BBQ, or Sloppy Joe sauces, with 8-9 grams of protein. Unlike the brand’s Salmon and Tuna Creations, Starkist recommends heating the beef mixes first—and heads up, the packaging isn’t microwave-safe. So while it makes sense (mmm cold ground beef?), it’s not the most portable option.

Other launches include:

• Spindrift is ushering in Fall (sob) with the return of its beloved Cranberry Raspberry seltzer and a new Fuji Apple sparkling beverage. 

• Moving from sweet to savory, influencer-created company Myna Snacks launched a new pizza-flavored cracker. (If you haven’t tried their cookies, they’re the Oreo alternative you’ve been dreaming of.)

• A-Sha and internet sensation Hot Ones are teaming up on a three-sku line of spicy ramen noodles, each cup getting progressively hotter. Normally, I’d expect a gimmick, but A-Sha makes some of the best noodle kits out there, so I’m hopeful this one will be Da Bomb (IYKYK).

• Bob’s Red Mill has rolled out new White Chocolate & Strawberry, Chocolate Chip & Banana and Homestyle Buttermilk pancake & waffle Mixes. Made with a blend of wheat flour, tapioca flour, and wheat gluten, Bob’s claims these mixes produce a fluffier pancake.

• Dipping into a new category, Bachan’s is launching new dipping sauces that are thicker than the brand’s original Japanese BBQ sauces. It’ll be interesting to see if this new positioning attracts incremental customers or simply pulls them over from the flagship line.

In My Cart:

After I expressed my love for Superieur’s water enhancers last week, functional food brand GoodOnYa challenged me to check out their hydration powder. Okay folks, buy this. Not only is it Organic and certified Glyphosate-free, but it's delicious. The brand is D2C only for now and, as a child of the 80’s and 90’s, gives me Country Time Lemonade vibes in the best possible way. 

Will Olipop’s New Formulation Enable Distribution Growth?

This week, Olipop officially launched a new shelf-stable four-pack, allowing the previously chilled-only soda brand to be sold in new sections of the store. The line features a revised version of the company’s “proprietary” Olismart fiber mix, replacing Chicory Root Inulin and Jerusalem Artichoke Inulin with Acacia Fiber and Guar Fiber for roughly a 30% reduction in fiber. At 6 grams of fiber, the new formulation aligns more closely with other prebiotic sodas like SunSip, Heywell, Levo, and several private label brands, which generally contain between 2-5 grams of fiber.

(For now, let’s ignore that they now have two versions of the same “proprietary” formula, as that opens a whole other can of marketing worms.)

“Many customers wanted to drink more OLIPOP per day (closer to how they enjoyed traditional soda) but struggled to do so with the very high fiber content,” Olipop founder and CEO Ben Goodwin told me. “We are excited to provide our customers with options that fit their lifestyle and are available to drink on-the-go or stocked up in the pantry.”

The shelf-stability alone opens up new merchandising options, but I’d argue the drop in fiber level will help as well. Olipop has been targeting food service and alternative channels, and it feels like it’s an even easier sell when your product won’t send consumers to the restroom mid-movie or game.

For context, I asked Behave candy’s founder Mayssa Chehata about her own formulation move, which also included a fiber drop, and she pointed out that if you want your product to be sold everywhere, and not be limited by use case, you need to consider what happens after consumption. She also noted that inulin (one of the fiber sources removed from Olipop’s latest formulation) can be particularly taxing to digest.

Of course, Olipop isn’t exactly struggling to gain distribution right now. Case in point, the WSJ announced yesterday that Olipop will be sold at the Intuit Dome. The new home of the LA Clippers, the sports arena will stock the older, higher fiber formulation. Currently, the brand will only offer the shelf-stable, lower-fiber line in four-packs, but I wouldn’t be surprised to see that change in the future.

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Flower Power:

Hot on the heels of a $23M capital raise, D2C flower company Bouqs has opened three stores inside California Whole Foods Markets.

Before COVID, Whole Foods was big on the store-within-a-store concept (or as Bouqs calls it "shops-within-shops"). These were mostly restaurant concepts designed to make Whole Foods more of a shopping experience versus a chore to just get done. But that program seems to have largely fizzled out. In Massachusetts, we had a similar concept with a local high-end florist, but that, too, seems to have faded away.

So, what’s brought about the return of the shop-within-a-shop? Here’s my take:

• Labor: It seems like these stores are run by Bouqs’ employees, meaning WFM can save on staffing and team member education costs.

• Quality and Differentiation: Whole Foods used to have numerous marketing programs for their floral department that emphasized the benefits of their direct sourcing efforts. While they still have strong sourcing practices focused on Fair Trade, more products appear to now come via third-party vendors, making it hard to stand out compared to other suppliers. Bouqs, however, claims to purchase flowers directly from farmers.

• E-commerce: I recently tried to order flowers from Whole Foods for someone in a different city. The issue? For most bouquets, it wasn’t clear what I was buying when I ordered something like the “floral visionary” bouquet. They also didn’t appear to be true arrangements as much as standard plastic-wrapped bouquets. With Bouqs handling delivery, Whole Foods can offer a more curated, true floral store experience, without dealing with the backend processing.

Finally, a side note: If you want to see some stunning floral departments, check out Town and Country stores in the Seattle area. They have an amazing build-your-own bouquet program with impressive quality and variety, not to mention knowledgeable team members.

An Epic Marketing Strategy:

If you’re into gardening (raises hand), you’ve probably noticed that all the cool kids have one of Epic Gardening’s Birdies raised beds or planters (I am not one of those cool kids, alas).

If you don’t know them, pay attention. The TCG-backed company, which last year acquired seed brand Botanical Interests, is yet another example of the power of content, with a killer blog and social media feed (1.7 million followers on Instagram and 3.3 million in TikTok).

It’s this strategy, founder Kevin Espritu says, that enables the “content to commerce” company to enter less traditional classes of retail. This summer Epic Gardening rolled out a "Gardening with Your Pet" merchandising program in roughly 200 Petco-owned stores. Next year, he said on LinkedIn this week, they’ll expand to 750-1,000 stores.

“This where the ‘creator commerce’ journey starts to get exciting,” he wrote. “Once you can prove you can drive real volume in stores, all sorts of creative ideas start to pop up.”

News Bites:

• Chamberlain Coffee has not one, but two new folks in its top leadership role, with the news that former COO Gustav Langberg Hossy and influencer Emma Chamberlain will assume the positions of co-CEOs. One thing not yet disclosed: Wherefore art thou, former CEO Chris Gallant? The CPG exec’s LinkedIn profile still lists him as leading the brand, and Gallant last posted about new distribution for Chamberlain less than a month ago.

• Private equity firm Butterfly has sold the majority of its minority stake in vitamin and supplements brand MaryRuth Organics back to the company’s original owner and founder. According to one report, the company had about $200 million in revenue in 2022 with a 60% gross margin.

• There’s been a mushroom mania for several years, but the market size and potential for growth remained somewhat unclear. However, it seems functional chocolate brand Alice Mushrooms is doing something right, with the company announcing this week funding from big-name investors including PE shop L Catterton along with actors Zac Efron, Pedro Pascal, and Kevin Hart.

• It been less than two months since Wedderspoon was acquired by New Zealand-based Florenz, and the manuka honey brand is already fast-tracking growth for its three new Bee Propolis sprays. After seeing high consumer demand, CEO Mike Tod posted on LinkedIn, the company has secured placement for the line in an additional 2,300 doors. A national push is expected to follow in 2025. The propolis sprays take the company down a decidedly functional/supplement path that will put it head-to-head with category leader Beekeeper’s Naturals. Meanwhile, it seems Wedderspoon has discontinued its Manuka honey-infused apple cider vinegar which was found in center store.

• Last week, I mentioned Venture for America’s closure. If you’re hiring consider bringing on one of the fellows now looking for a new role.

• Cookie pioneer Wally Amos, the founder of Famous Amos cookies, passed away earlier this week at 88.

• Funding is cool, but as an industry, we also need to support the less “sexy” wins. So I totally agree with this LinkedIn post from Matthew Woods, Rishi Tea’s head of retail: it IS pretty exciting when you sell enough product that you can switch from a wrap to printed cans!

• Erewhon has a (perhaps surprising) new competitor for hot grocery swag: H Mart. The Asian supermarket debuted a pretty slick New York exclusive tumbler.

• Trader Joe’s seasonal candles are always fire, but now they are quite literally causing fires. The retailer recalled its summer Mango Tangerine candles due to manufacturing issues.

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New On Shelf:

• Idahoan Foods has had a busy summer, most recently launching two new flavors of its potato cups in Tapatío Triple Cheese Mashed Potatoes and Idahoan Bacon Cheddar Potato Shreds. Meanwhile, in July the company not only rolled out refreshed, colorful branding but also debuted dairy-free and low-sodium versions of its Buttery Homestyle Mashed Potatoes, targeting customers with special diets.

• Cheerie Lane launched a state fair-inspired pack of popcorn pods in Funnel Cake, Jalapeño Popper, and Dill Pickle. (Say that ten times fast).

• Functional treat brand Gwell released Coco Calm, a powdered reishi and chaga enhanced Drinking Chocolate that can also be used for baking. The mix draws flavor and functionality inspiration from Gwell’s best-selling (and delicious) chocolate shortbread cookies.

• Meat snack brand Jack Links is moving into a new category, launching canned bean-free chili in Walmart. I initially thought this must be a licensing play, but the back of pack seems to indicate it’s an owned product.

• Maya Kaimal is now offering a meal-ready version of its Tikka Masala sauce with the addition of peppers, potatoes, and chickpeas. Available in microwaveable pouches, the new dish can go from pantry to table in just a few minutes.

• Superieur launched two new flavors of its powdered electrolytes last month: Lala Lemon and Strawberry Lemonade. Trust me, I WILL be ordering these. Most electrolyte powders either have a stevia/monk fruit aftertaste I can’t tolerate or functional ingredients I don’t want. Superieur does what it says it will, and the taste is the best I’ve found so far. Send me more recommendations if you’ve got them - I’m terrible at hydrating.

• Plant-based ready-to-eat meals from Israeli company Anina Culinary Art have hit the US. Debuting in Los Angeles stores including Hanks Organic, Rainbow Acres, and Irvine Ranch Market, a D2C website is in the works as well.

• Smith Teamaker and Levain Cookies have partnered on a new Comfort Cookie Bundle. The D2C offering contains four cookies, a Levain-specific assortment of bagged Smith teas, and the cutest branded blanket.

In My Cart:

There are quite a few brands I love, both for their mission and, frankly, the taste of their products. But in my previous role, I focused on the business of food rather than the flavor (Pro tip: NEVER tell a journalist that what sets your product apart is “the taste.” That’s the answer 99% of brands give).

That said, I thought it might be fun to highlight a few products I’ve picked up recently—maybe they’ll inspire you to try them out! And if there’s something you’ve been loving, drop me a line.

• Ocean’s Halo Coconut Broth: Add a little spice, and this broth become my go-to midday snack. Plus, it’s on promo at Whole Foods right now.

• Heyday Beans: Sauté some kale, add chicken, heat some quinoa, and the Harissa Lemon Chickpeas make for a quick, delicious dinner. (Plus, they too are on promo right now … sense a theme?)

• Uncle Eddie’s Vegan Cookies: I finally tried a sample of these at Mom’s Organic Market, and wow, I was floored by the texture and taste.

Today’s newsletter is brought to you by the letter B—Bigger product sizes, Bigger pack sizes and Breast Milk. Here’s what’s on the menu:

• Does Conagra’s latest deal prove that size matters with meat sticks?

• Are plant-based brand names as awkward as “gargling leeches”?

• Which CPG spouse is diving into the infant feeding category?

• What training ground for food and beverage execs is closing its doors?

Conagra Makes a Fat Deal

Conagra announced today it acquired Sweetwood Smoke & Co., the maker of FATTY Smoked Meat Sticks. While terms of the deal weren't disclosed, this acquisition adds to Conagra’s meat stick portfolio, which already includes Slim Jim and Duke’s. Though similar product formats, the three brands each have slightly different positioning and target customers.

But what ties these brands together is size. Yes, an original Slim Jim is just 0.28 oz, the brand has pushed innovation with its Monster and Savage size sticks, which range from roughly 2-3 oz. Meanwhile, Duke’s positions its sticks as “sausages,” while FATTY’s key selling point is its 2-3 oz size.

A few years ago, meat snacks rode the keto wave, promoting their low-carb, high-protein profiles. But those bite-sized snacks fell short of being true protein-bar alternatives. Now, larger sizes offer real heft, making them more appealing as a mid-meal option.

FATTY's positioning as a somewhat better-for-you meat stick —think high-protein, low-sugar, gluten-free, and no nitrates added – also fits with Conagra’s seemingly successful snacking strategy. On the company’s most recent earnings call, CEO Sean Connolly highlighted the company’s strong snack sales growth, crediting the success of Duke’s, David, and Angie's BOOMCHICKAPOP, specifically. 

“Our on-trend snacking brands [span] advantaged snacking subspaces like meat snacks, popcorn, and seeds,” Connolly said. “We've seen strong volume sales performance across each of these subcategories given the rise of protein and fiber-centric snacking.” 

Still, it's curious why FATTY got the final rose, considering I’ve heard that several better-for-you meat snack brands are also seeking exits. Have you got the scoop? Send me a tip on or off the record.

Medicinal Chili Crisp?

Condiment company Redbloom announced it's the first sauce to achieve HSA/FSA eligibility. The brand claims to make the first gut-healthy chili crisp, with a low-FODMAP ingredient list designed to improve gut health. Additionally, the company says, chili peppers naturally help desensitize overly sensitive nerves and this “capsaicin therapy” ultimately reduces visceral hypersensitivity—a root cause of many IBS symptoms.

I’ll admit, I was skeptical at first. But from a top-level look, every claim seems backed by reputable scientific sources, and the company has endorsements from top medical professionals.

But regardless of the product attributes, I love the fact Redbloom has invested in this project. While yes, having an FSA is still a luxury, programs such as this can help get products into the hands of the consumers who need them. I also applaud Redbloom’s honest approach to pricing. Often, brands claim to be "affordable indulgences" or "accessible to all," but they just aren’t. Redbloom owns up to the reality of its price point while still trying to find a solve.

“Redbloom is expensive,” the company wrote on Instagram. “[And] many of our community members can’t afford it long-term.” 

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ICYM: Good Eggs Bought by GrubMarket

Earlier this week, I helped break the news that Good Eggs has been acquired by B2B wholesaler, distributor, and tech player GrubMarket. (Thanks to the sources who alerted me to the transaction — my inbox is always open.)

At this time there isn’t much more to add beyond what I’ve already covered, and you can catch up on the details here. But stay tuned—I’m scheduled to chat with the GrubMarket team soon and hope to have updates to share. Shoot me your questions. 

News Bites:

• Cartograph CEO Chris Moe offers a deep dive into managing Amazon listings when you're about to be featured on a network show like Shark Tank. Key takeaways: 

  • Ensure your listing has the right category and keywords. “Ask yourself, ‘If I was watching the show and couldn’t remember the brand name, what would I search for online,” Moe writes.

  • Optimize for mobile (60% of Amazon sales happen there).

  • Be prepared for a sales boost whether you get a deal or not.

• Nonprofit Venture for America is shutting down. The program, founded by former presidential candidate Andrew Yang, helped college grads gain startup experience in cities like New Orleans and Detroit before founding their own companies. Notable CPG alumni include Brian Rudolph (Banza), James Fayal (Zest Tea), James Reina (Jibby Coffee), Andy Cloyd (SuperAffiliate), Michael Fisher (Rotten), Emily Miller (The Rodale Institute), Edie Feinstein (GEM), Cathryn Woodruff (PLUS products), Sophie Cummins (UNREAL Snacks), , Amy Garza Lee (Momofuku) 

• Feastables is hitting the club (channel), launching a 24-pack of 1.24 oz bars (29.6 total oz) for $28.98 in Sam’s. While the offering is timed to the Halloween candy season, for comparison Sam’s Club is also selling Halloween-themed assortments from Ferrero ($19 for 72 oz), Reese’s ($12.98 for 39.8 oz), Mars ($14.98 for 45.18 oz) Hershey’s ($18.98 for 49.5 oz). 

• Distribution wins: Mimi Cheng's dumplings are now on the menu at Wagamama restaurants; Chloe's debuted a 24-count variety pack of organic popsicles in Bay Area Costco stores; RollinGreens launched their new plant-based instant meal cups in Sprouts. 

• California natural food folks unite! San Diego Vegan Market is seeking financial help, noting a tough summer and “several financial hits” have put them at risk of closing. I’ll admit that I haven't been to the store, but I follow them on Instagram to stay up-to-date about new brand offerings. 

• Jaya Saxena from Eater.com humorously critiques the "weird" names of plant-based brands, begging companies to “stop making me say these out loud.” Saxena particularly finds fault with alt-cheese brand Plonts whose name makes her “feel like I’m gargling leeches.” 

New on Shelves:

• Trish Clifford, wife of Barnana co-founder Matt Clifford, launched Leche, the first 100% pure shelf-stable powdered breast milk. The new product represents an evolution for the company, which began as a service provider that would freeze-dry your breast milk. So do we call this CPG power couple Tratt or Mish? 

• CPG exec Shari Leidich, the former founder of Two Moms in the Raw, No Brainer Foods, and Max Mallow, is launching PUREST ELECTROLYTE, a “whole food hydration” powder. The mixes aren’t available yet, but the positioning caught my eye.

• Last week non-alc brand Surely announced their new low-alc wine brand Harlow, noting there was plenty of white space for this category of beverages. Now, a week later, Wonderwerk House of Fermentation announced their release of LITE WERK, a naturally fermented 7% ABV wine that can be consumed as is or used as a cocktail mixer. 

• The Fresh Market revamped its private label coffee line with new skus and packaging. I love the fact the bag has sensory interaction instructions to “squeeze gently” to “awaken your senses.” The color scheme stands out too with the use of teal offering a strong contrast to the blacks and browns favored by other coffee brands. 

• Bread and baking brand Equii launched mac and cheese alongside a rebrand. What are your thoughts about moving into a third category while still building your fledgling brand: Is it a good way to test and learn? 

• In another recognition that customers are looking for ways to stretch their dollar, powdered tea brand Kola Goodies rolled out larger format bags of its Masala Chai and Sri Lankan Milk Tea. Each bag offers 10 servings for $22—a $5 savings compared to Kola’s single-serve boxes. 

• Drew Whited, founder of Waggin Water and co-founder of The Rose Spritz, is launching Yappy Hour, a line of dog beverages that look like booze. SKUs include Bark Light (dog beer), DROOLY (dog seltzer), Sauv Bark (dog wine), and Bow Wow Bourbon (dog whiskey). If you’re at Superzoo next week, check them out and report back.

According to sources, GrubMarket, a software provider and distributor has acquired e-commerce retailer Good Eggs. While this move could expand GrubMarket’s B2C offerings, especially given its produce-focused approach, the impact on the many small brands sold on Good Eggs remains uncertain.

Although the deal's terms were not disclosed, Several Good Eggs employees have reportedly been dismissed as part of the ownership transition.

While an employee indicated on LinkedIn that the agreement was signed at the end of July, the actual timeline still is a bit unclear. When reached yesterday, GrubMarket executives told me that the deal had not yet closed, and Good Eggs might still be entertaining offers from other companies. Today, however, executives confirmed the deal was now official.

Good Eggs did not respond to a request for comment.

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The Good Eggs Roller Coaster

This news follows a tumultuous journey for Good Eggs. Founded in 2011, Good Eggs initially focused on essentially operating as a middleman to connect food producers and growers with their local customers. After early success in the Bay Area, the company raised $8.5 million and expanded to New Orleans, Los Angeles, and New York. However, that rapid expansion proved problematic, nearly leading to bankruptcy in 2015. Retrenching, the board brought in then-CEO Bentley Hall, a former executive at Plum Organics and Clif Bar, who scaled the company back to its original market.

Hall led Good Eggs through a recovery, overseeing its entry into prepared meals, meal kits, and alcohol, along with the development of a second warehouse in Oakland. While growth was gradual, the Covid-19 pandemic—and the resulting surge in online grocery shopping—seemed to encourage the company to accelerate its efforts.

In 2021, Good Eggs announced it had raised an additional $100 million (bringing total funding to over $170 million) from investors including Glade Brook Capital Partners, GV (Google Ventures), Tao Capital Partners, Finistere Ventures, Benchmark Partners, S2G, and Obvious Ventures. The retailer then expanded into Southern California and launched a national gifting platform at the end of 2022.

However, the sales boom slowed as shoppers returned to physical stores. Good Eggs reportedly saw sales drop from $106 million in 2021 to $86 million in 2022, all while continuing to report negative profit margins and high cash burn. Reports from last year indicate that the company’s valuation, which was $270 million in 2020, plummeted by over 90% to $15 million in 2023, during a $7 million funding round needed to keep the company afloat.

GrubMarket’s Acquisition Fueled Growth Strategy

Meanwhile, ten-year-old software and services company Grubmarket, has undergone its own metamorphosis. Founded in 2014, the company also began with a direct-to-consumer bent. 

However, that strategy has shifted in recent years to a B2B focus, with Grubmarket gobbling up over 70 distributors and wholesalers. In 2024 alone the provider has acquired produce companies including Oriental Produce, Brother’s Produce, Global Produce, Performance Produce andJC Cheyne, as well as software makers Parsemony and Butter. The company’s most recent press release describes itself as “the first-mover in tech-enabled B2B food eCommerce.”

It’s revenue streams now include: 

• Software offerings for food wholesalers, distributors, and brokers that include everything from analytics platforms, to payment processing tool to e-commerce storefronts, inventory management and HR and accounting 

• A network of wholesalers and distributors, some of which have direct and/or exclusive relationships with farmers.

• Online produce delivery services for shoppers and offices 

Interestingly, the software piece of the business harkens back to how Good Eggs initially began, processing orders for small producers and streamlining delivery processes. 

With over $560 million in capital raised, GrubMarket sports a $3.5 billion valuation. While the company said in 2021 that it would IPO within the next 11 months, that goal has yet to come to fruition. Still, while the company has said it’s achieved profitability and seen continued sales growth, my question is how much of the latter has simply come from adding to its bullpen of companies. 

What Does this Mean for Brands?

Aside from a B2B focus, GrubMarket also differs from Good Eggs with its assortment, focusing on produce and perishable goods. Good Eggs, meanwhile, has always tried to offer a more complete shop, with center store, deli, and prepared food offerings. 

According to a former employee, the company was in the process of optimizing its fulfillment centers in order to grow from 6,000 SKUS to 10,000. 

So like the demise of Foxtrot (at least temporarily), will this remove yet another retail testing ground for emerging brands? While Good Eggs has broadened its assortment to include larger brands and even KeHe’s private label Cadia products, it still has continued to stock indie brands such as Lexington Bakes, Dalci, and Alice Mushrooms. 

Stay tuned to hear more about GrubMarket’s plan for the company…does this mean a return to B2C?

In this edition, you'll find out:

• Why Oats Overnight had another large round of funding just 18 months after its last one.

• The CPG equivalent of posting your vacation photos from Greece.

• How snacking fits into Tilray’s portfolio of cannabis and craft beer.

• The latest messaging coming from Foxtrot.

• Why Garlic Banana is the hottest flavor combination right now (just checking if you’re paying attention).

Why Oats Overnight Raised Millions….Again

Oats Overnight recently raised another $35 million, just over a year after their last $21 million round. The size alone might raise eyebrows, but the quick succession of these raises definitely caught my attention. Rather than rehash the deal details, I sat down with the team to understand why.

If you want the full story, head over to my larger article, but here’s the TLDR from the team:

First off, let’s look at the company’s finances and customer base:

• With $160 million in expected net revenue for 2024, the company projects a “very profitable” year ahead.

• Brick-and-mortar retail sales have grown 200% in the last year, even surpassing Amazon in gross sales. In-store velocities are up an average of 30%, and in some accounts, by as much as 125%.

• Despite the retail growth, D2C remains their biggest channel, with 250,000+ online customers who average $55 per order and a 60% reorder rate.

• Overall, a whopping 72% of its customers eat Oats Overnight products three to six times per week.

So, where did that $21 million from the last raise go? Infrastructure. The company opened a 68,000-square-foot facility in Arizona and another production and distribution center in Ohio. These investments are lowering costs, increasing margins, and adding redundancy to their supply chain, executives said.

But does the second raise indicate the company is just burning through cash? CEO Brian Tate says not at all, and that they’re being smart about it. Prior to this round, the company raised about $30 million and yet recorded roughly $29 million in assets on their balance sheet. In fact, Chief Strategy Officer Nina McKinney told me, “Since inception, losses are pretty immaterial relative to the size and scale that we've got on direct-to-consumer.”

Still, Tate declined to delve into too many details about the cadence other than noting 2023 was a “challenging” year to raise capital.

My take? Investors are getting more cautious, and by splitting the raise, Oats Overnight could show progress and secure a better valuation this time around. The team wouldn’t confirm or deny this, but they did mention it was a competitive process with multiple offers on the table.

Meanwhile, though distribution growth (think club, multipacks and more grocery) is a big focus, the Oats Overnight team is also looking at entering entirely new categories. Earlier this year the brand launched a line of instant high-protein coffee (sans oats, no less).

Could Tilray Acquire Your Snack Business?

Last year, cannabis company Tilray made headlines by diving into the craft beer market with the acquisition of eight beer brands from Anheuser-Busch. Now, they’re dipping their toes further into snacks, starting with the acquisition of Humble Seed.

While you may have read about the deal already, what you need to pay attention to is what’s coming next. While the Humble Seed acquisition was smaller, it signals Tilray's broader strategy and Jared Simon, Tilray’s President of Wellness, told me this is just the beginning.

Acquisitions have long been a significant part of Tilray’s growth strategy. Other notable deals including the aforementioned craft beer purchase (which also brought Tilray the energy drink brand Hiball), the pickup of Hexo and merger with Aphria. The core of their wellness segment is Manitoba Harvest, the hemp brand they acquired back in 2019.

This time, Simon said, Tilray considered starting a new brand from scratch but saw the benefits of speed to market and R&D cost savings by acquiring Humble Seed instead. Going forward, he added, expect a mix of innovation and more brand acquisitions.

The longer term goal: Expand beyond hemp. While Humble Seed uses hemp in its crackers, Tilray has no plans to heavily push that attribute. Some of the American market is still confused by hemp (some people still think it’ll get them high), Simon said, and federal regulations around CBD are pretty much stalled.

So, if you have a seedy snack brand to sell, Tilray might just be the strategic buyer you’ve been looking for.

Read the full scoop here.

News Bites:

• King’s Hawaiian parent company, Irresistible Foods Group, Inc. (IFG), announced a “partnership” with gourmet brownie brand Killer Brownie. With its packaged line and e-commerce gifting business, Killer Brownie is an interesting addition to IFG. The group’s original goal was to build a platform of brands to complement King’s Hawaiian (think similar category managers or sets in stores) but given pickups have included Shaka Tea and now Killer Brownie, are we seeing an strategy change underway?

• Ice Cream company Van Leeuwen is on an expansion kick of its ice cream stores. After moving into Massachusetts and Florida, according to new job listings, Georgia is next on the docket. It’ll be interesting to see where their priorities lie: CPG lines or scoop shops?

• Indie retailer Foxtrot (I’m going to assume I don’t need to rehash the drama here) posted what almost seems like a mea culpa on Instagram. CPG brands have loudly expressed their anger with the abruptness of the retailer’s closing and its subsequent sale to an investor group — all of which has resulted in thousands of dollars in losses for companies. This week Foxtot appeared to try to address the criticism, posting “This Foxtrot is about…being the first “yes” to small makers so we can help them to get noticed and prosper…We can’t make everything right from the past, and we know there’s work to be done. But we also know opening our doors again is the best way to provide the most opportunities for all.”

• Frozen brand Quebracho Empanadas is shutting down, as announced by founder and CEO Belén Rodríguez today. It’s always tough to see a brand go, especially one that was bringing something unique (and delicious) to the table.

• The FTC is investigating surveillance pricing practices — essentially, charging customers more based on their digital footprints and demographics — and the grocery sector isn’t escaping scrutiny. To start, the agency is focusing on the middlemen enabling these algorithmic tweaks and is seeking uncover the data companies are using as well as where it’s coming from.

• Aunt Fannie’s founder and former CEO Mat Franken is launching Beam, a “full spectrum buttcare brand, covering cheeks to crevice and everything in between.” Definitely one to keep an eye on — no ifs, ands, or buts about it!

• Forget family vacation photos, the latest social media trend is posting your Costco sampling programs. Founders and execs from brands like Banza and Mid-Day Squares spent their summers hitting the road to connect with consumers face-to-face. My favorite so far? Ithaca Hummus’ new social media star, Toni. (I’ve been urging Ithaca founder and CEO Chris Kirby to get this woman a partnership deal ASAP.) However, one thing I think brands need to be wary of is telling consumers they NEED to go to a Costco roadshow in order to prove they have a loyal following. Yes, showing the power of your brand is important, but you also don’t want to set false expectations for your velocities — Thats a recipe to get kicked off shelf.

• El Nacho chips appears to be undertaking a PR push to announce its “launch.” (The brand was founded in 2022 and hit stores over a year ago.) The El Nacho team is emphasizing its chips’ bold flavors, but will that work? It’s a crowded segment with competitors like Siete, Zack’s Mighty and Late July all pursuing a flavor-first, better-for-you Dorito/Takis positioning. It’s a local Boston brand, so I’m rooting for them.

• Miami-based Gelaty’s launched its gelato-based popsicles at The Fresh Market. The fun shapes (think giant chocolate bars and cat-shaped popsicles) could be a big point of differentiation on the shelf and a hit on social media. Who wouldn’t want a photo with a cat-shaped popsicle? But, at the same time, what does scaling production look like? Not too many co-mans making bear-shaped ice cream bars.

• Movers and Shakers: Laoban, a frozen dumpling brand, has hired Amy Boysen as its new VP of Sales. Boysen previously held sales leadership roles at Mason Dixie, Ghetto Gastro, and Levain Bakery; Meredith Madden has been promoted to CEO of The Kraft Heinz Not Company, stepping in for Lucho Lopez-May, who moved to Mondelez as Chief Sales Officer. Madden was previously General Manager for NotCo’s North American business.; Sauce specialist Eric Strickland has been promoted to VP of Sales at DayDayCook, where he’ll oversee the sales strategy for brands including Yai’s Thai, Omsom and Nona Lim. Strickland was formerly the head of sales at Yai’s Thai before its acquisition by DayDayCook.

New on Shelf:

• Surely, the non-alcoholic “wine” brand, is launching Arlow, a line of low-alcohol wines with 6.5% ABV. The company said on LinkedIn that there aren’t many low-alcohol options in the wine space. When I hear reasoning like this, the first thing I ask is “why aren’t there more brands doing X?” I know of at least one national brand that dipped its toes into this category only to quietly discontinue the line. It’ll be interesting to see how Surely performs — especially as they navigate the complexities of the three-tier system.

• Juice bar chain Juice Generation rolled out a line of gelatos made from their cold-pressed juices, positioning it as a new way to get your daily fruits and veg. It’s also potentially a way to reduce food waste, given the short shelf life of cold-pressed juice. One interesting element not getting as much attention? Their new “cold-pressed” Crispy Cones made from leftover juice pulp. Other brands such as The Forager Project have tried using juice pulp in products but found the process too labor-intensive. Let’s see if Juice Generation has cracked the code.

• Hershey’s Ice Cream Shoppe candy bars, previously exclusive to Hershey’s Chocolate World, are now available in Walgreens. Flavors like Strawberries ‘N’ Creme, Cookies ‘N’ Mint, and Salted Caramel are sure to catch the eye of anyone with a sweet tooth.

• Anything but Chilly: Cometeer is shaking up their D2C business by offering customers the ability to build their own box of frozen coffee concentrates rather than choosing from specific roaster-based selections. It may look like a small change, but its one that could make a big difference for customer satisfaction.

• Forbes reporter Douglas Yu has officially launched Diamond Brew, a line of “brewless” instant coffee. If you missed my exclusive coverage of the launch earlier this year, no worries—you can catch up right here!

After acquiring eight craft beer brands from Anheuser-Busch last summer, Tilray has turned its attention to the snack aisle, recently announcing the purchase of the cracker brand Humble Seed. While seed crackers might not seem like a natural fit in a portfolio that includes Redhook Brewery, Manitoba Harvest, Breckenridge Distillery, and Chowie Wowie cannabis confections, Tilray is betting on snacking and wellness as the next frontier. And keep an eye out – this deal is just the beginning.

For those less familiar with Tilray, the company’s portfolio includes a fast-growing craft beer and spirits business, recreational cannabis in Canada, and medical cannabis in Australia and Europe. The wellness division, led by president Jared Simon, primarily revolves around Manitoba Harvest, but it’s also expanding with the relaunch of energy drink Hiball.

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Similar to its entry into beer, Tilray significantly expanded its cannabis business in 2021 through a merger with Aphria. This merger brought in Irwin Simon, Aphria’s Chairman and CEO, who remained in the same roles at the now-larger Tilray. Simon, the founder and former CEO of natural foods and snack leader Hain Celestial, knows a thing or two about the snack business.

Following the merger, Jared Simon (no relation to Irwin Simon) noted that Tilray aimed to become a “CPG diversified cannabis company,” leveraging opportunities in related categories.

So, how’s that strategy playing out? In its most recent earnings call, Tilray reported net revenue of $229.9 million. However, the wellness division, with $15.7 million in sales, still lags behind the beverage-alcohol and cannabis segments, which brought in $76.7 million and $71.9 million, respectively. While the wellness division saw a 6% increase in net revenue, its growth remains modest. Despite ambitions to deepen its wellness reach, executives anticipate double-digit growth from cannabis and beer next year, while wellness is expected to see only low to mid-single-digit growth.

Given that wellness is a smaller slice of the business, why not focus where it's already making money? It boils down to Tilray’s need to expand in the American market. While it’s making inroads in beverages, cannabis and CBD sales in the U.S. have been hampered by slow-moving federal regulations.

Consumer confusion is also a challenge. Even with non-CBD products like Manitoba Harvest’s hemp hearts and hemp oil, many shoppers still associate hemp with cannabis, creating a unique hurdle for Tilray’s wellness ambitions.

“CBD actually, I think, set hemp foods back quite a bit because then there was all this confusion,” Simon said. “We've looked at our strategic plan with cannabis being where it is in terms of legislation and regulation..[and are looking for other acquisitions].” 

So, though Manitoba has over a 53% market share in branded hemp products and plans to launch new snacking innovations later this year, the line can only go so far under the current constraints, Simon said. Seed-based products, however, offer the company a new revenue stream with far less consumer education.

“We are a hemp forward company, but we're not beholden to only doing hemp,” Simon said. “We have a lot of capabilities with our farming network, with our manufacturing facilities, with our distribution network to go beyond just being a hemp company…[Hemp] is our bread and butter, but there's a lot of nice adjacencies in the seed world.” 

Which takes us back to Humble Seed. Manitoba plans to keep the Humble Seed name, expanding the portfolio to include other seed-based snacks that don’t necessarily contain hemp. Though the company considered launching a new brand itself, Simon said the pickup allows Tilray to jump straight into non-hemp snacking without investing in R&D.

While Simon declined to provide the purchase price, the deal included cash as well as further earnout potential for Humble Seed executives. The asset purchase included the brand’s IP, inventory, and branding, but not those of Humble Seed’s parent company Fourth World Foods, such as “certain relationships…[or] components with the corporate structure,” Simon said.

Humble Seed’s founding team, which includes CPG veterans Sarah Meis, Steve Shaffer, and Jennifer Mancusco, will not continue on with the company. Immediate next steps for Humble include expanding distribution beyond the brand’s current 2,000 door count as well as reducing costs, Simon said, as some retailers shied away from stocking the product due to its premium price point.

“We see an opportunity to really scale this brand at a different pace with a core set of products,” Simon said. “So while I'm anxious and excited about [future] innovation, these crackers right now, we want to get them in as many places as possible.”

It seems oatmeal is a dish best served cold. This week, breakfast brand Oats Overnight announced the close of a $35 million funding round, attracting investors like restaurateur Danny Meyer’s Enlightened Hospitality Investments, Sonoma Brands Capital, and BFG Partners.

CEO and founder Brian Tate revealed that the round was a mix of primary and secondary capital, offering some liquidity to early investors. Just prior to the deal, Califia Farms CEO Dave Ritterbush, who previously was CEO at Quest Nutrition and Premier Nutrition, also joined Oats Overnight’s board of directors.

The funding may have come as a surprise to some members of the industry, with Oats Overnight bringing in $21 million just last year. While Tate and Chief Strategy Officer Nina McKinney wouldn’t speak directly to the reasoning behind two raises, Tate noted that 2023 was a “challenging” time to raise capital.

My take: When Oats Overnight raised last year, it was largely a D2C brand with only 10% of its sales occurring in brick and mortar retail. Though the brand said it wanted to make a bigger push into that channel, we all know that investors no longer are willing to just take a brand’s word for it. Splitting the raise allowed Oats Overnight to prove out their thesis and, one would imagine, raise its valuation. But that’s just my two cents…

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So, what did Oats Overnight do with its previous $21 million? Mostly infrastructure. The company opened a 68,000-square-foot facility in Arizona and a second production and distribution center in Ohio. Together the two lower costs, increase margins, and add redundancy to its supply chain.

“We have major retailers leaning into the brand and we anticipate seeing another doubling of year-over-year growth this year, and need to be able to support the manufacturing of those of that volume,” McKinney said. “We're trying to get ahead.”

Despite that investment, McKinney noted the company has had a slower burn rate. Before this round, Oats Overnight had raised about $30 million and still recorded roughly $29 million in assets on its balance sheet.

“Since inception, losses are pretty immaterial relative to the size and scale that we've got on direct-to-consumer,” McKinney said. 

That scale is needed as brick-and-mortar retail sales have grown 200% in the last year, surpassing Amazon in gross sales. When asked if this growth was simply due to adding more retail doors, Tate assured that wasn’t the case, noting that velocities have increased an average of 30%, and even up to 125% in some stores. Additionally, rather than cannibalizing existing sales, the brand is seeing growth in unit sales as it adds more SKUs to shelves.

(Of note: Despite this retail push, D2C still remains king. The brand’s 250,000+ online customers average $55 per order, with a 60% reorder rate).

With $160 million in expected net revenue for 2024 the company is also hitting a “tipping point,” Tate said, in achieving profitability next year.

“It’s exciting to prove out that digitally native businesses can achieve profitability,” McKinney added. 

Entering the club channel is also a possibility, the duo said. Given 72% of its customers eat Oats Overnight products three to six times per week, there’s clearly pent up demand for a larger multipacks, Tate said. Meanwhile, alternative channels such as mini-bars, offices and vending machines are also on the horizon, and that’s where EHI will play a key role. 

But another tactic involves going where the brand has never gone before: Moving beyond oats. Earlier this year the company launched Oats Overnight Coffee, an instant coffee mix with 5 grams of protein per serving (And before you ask it, yes, they are considering new branding that supports oat-less products). Available only to subscribers for now, the recipe is still being tweaked.

“We sell craveable, nutritious and fun products for customers that have protein,” McKinney said. “And we know that we can bring those tenants to other areas of breakfast and other areas of the store.”

Quick housekeeping note: As I’m constantly evolving this newsletter, I’m playing around with the send dates and times. Have to keep you on your toes! In the meantime, keep that feedback coming. Someone emailed me that this newsletter was “So very Carol Ortenberg.” That’s a good thing….Right?

The Federal Government Doesn’t Appreciate Your Delta-8 Puns

Despite being relatively quiet about Delta-8, the government is still keeping a watchful eye on producers utilizing the cannabinoid. This week the FDA and FTC sent warning letters to five companies “for illegally selling copycat food products containing delta-8 THC,” with brands targeted including Trips Ahoy! and Double Stuff Stoneos.

• The concern is that these products mimic grocery store snacks too closely, posing a risk to unsuspecting Americans, especially children.

• According to the FDA, from Jan. 1, 2021, to Dec. 31, 2023, the agency received over 300 adverse event reports involving the consumption of delta-8 THC products. About half resulted in hospitalization or emergency department visits, with two-thirds involving food products like candy or brownies.

“The companies who sell these illegal products are demonstrating complete neglect for consumer safety,” FDA Principal Deputy Commissioner Namandjé Bumpus said in a statement.

• The FDA has repeatedly warned D8 companies to stop using punny product names.

• In May 2022, the agency sent warning letters to companies crafting products with CBD and/or Delta-8, stating that these ingredients could not be marketed as treating medical conditions and were not approved as food additives.

• Last July, the FDA and FTC teamed up, sending warning letters to six brands producing “copycat food products” containing Delta-8.

And this issue goes beyond just a few notices.

• Right now, hemp-derived cannabinoids are in a bit of a grey zone. Since they are derived from hemp, they do not need to be regulated like traditional cannabis products. However, you also can’t just put things in food willy-nilly as food additives.

• Without federal regulations, states are taking varied approaches with D8 products.

• In 2022, Louisiana approved the manufacturing and sale of hemp-derived products after the then House Speaker (incorrectly) said they couldn’t get consumers high. After being proven wrong, last month the House and Senate considered banning all hemp-derived THC products, but ultimately settled on a bill that bans gas stations, new restaurants/bars from selling the products, reduces portion sizes, adds a 21+ age requirement, and prohibits the sale of flower hemp products.

The FDA Remains Skeptical Over Dip Producer’s Food Safety Skills

Since y’all seem to love a good food safety story, I mean who DOESN’T …There’s another listeria issue, this time at dip producer Discover Fresh Foods (DFF), which makes dips under the Hidden Valley Ranch and Texas Pete brands.

According to a letter from the FDA, inspections of the company’s South Carolina plant in December 2023 and January 2024 found “serious” food safety violations and the presence of Listeria. In short, it’s not great.

• According to the FDA, the company’s dips “were prepared, packed, or held under insanitary conditions whereby they may have become contaminated with filth or rendered injurious to health.” The packaged dips also don’t undergo a kill step, allowing pathogens to flourish.

• To date, no illnesses have been linked to the dips, and the three samples taken over the two-month period that came back as positive for listeria were from non-food contact surfaces.

• Yes, but…. the plant has struggled with food safety issues for years with repeated inspections and even a product sample turning up the same Listeria strain. Because of this, the FDA wrote, it’s clear that there has “been a resident pathogen in your facility since at least November 2017.”

• While DFF said it took corrective actions over the last eight months, including “decommissioning” a chopper suspected to be the source of the pathogen, adding new food safety procedures, filling in drains, and upping testing, it seems the problem hasn’t gone away. Subsequent testing this year found listeria, including a new strain, in the plant as well as in finished packaged (though not distributed) products.

• Turns out, DFF didn’t exactly decommission that equipment; instead, the company repaired and cleaned it before returning it to the plant floor. Oops. The company told the FDA it has now “permanently removed” the chopper.

• Inspectors also observed an employee unclog a floor drain 12 inches from the fill line, with the water from the clog splashing onto food-contact surfaces.

While the FDA is just warning the company at this point, given the letter’s wording, it seems the agency doesn’t have high hopes.

“Given the repeated detection of the same strain of L. monocytogenes over several years and the inspectional findings, we continue to be concerned about your ability to maintain a sanitary environment, implement an effective sanitation program, and take adequate corrective actions.”

News Bites:

• Bloom Nutrition is expanding from powders into RTDs, launching Bloom Sparkling Energy in Target stores nationwide. “Sigh, another energy drink,” you might be saying, but the launch has a lot of muscle behind it. Earlier this year, C4 producer Nutrabolt took a 20% stake in the company as part of a larger $90M raise by the supplement brand. Now we’ll see the true potential of the partnership, with the new RTD offering Bloom expansion into a category with faster turns and Nutrabolt an additional way to target more wellness focused or female shoppers.

• Citing consumer confusion, Perfect Bar is renaming its “Perfect Bar Layers” line as “Perfect Bar Crisps” and adding new illustrative flavor callouts on the front of the pack. I love this product with any name, but I am curious about the new moniker. The chocolate SKU has always given me Kit Kat vibes, so I wonder if a more candy-oriented positioning was considered. Given the brand already sells chocolate cups, a second dessert option could have offered the company a larger block in the chilled dessert set. Still, despite apparent industry and retail interest in that set, brands selling chilled desserts/candy appear to have struggled to find the right location for their products in stores.

• A year after acquiring infant formula manufacturing company Nature’s One and its 9,000-square-foot Ohio-based facility, formula company Bobbie has the plant up and running. Bobbie purchased the facility in 2022 after a national formula shortage revealed the supply chain’s fragility. The new capacity will allow Bobbie to have redundancies in its supply chain lest future issues arise—and, I assume, service a growing customer base.

• Distribution Wins: Vegan fast casual restaurant Slutty Vegan is adding two items made with Chunk Foods’ alt-meat offerings. The plant-based brand is seeking to differentiate itself with its “whole cuts,” and select Slutty Vegan locations will offer a 4 oz. steak entrée; The Good Crisp is headed across the pond to the UK where it will launch in “just a few weeks; Sprouts picked up three new SKUs of Soley’s Fruit Jerky (Mango Guava, Mango Blueberry and Mango Passionfruit; Pitaya Foods 3lb frozen tropical fruit mix is now sold in Sam’s Clubs; Emerging frozen food brand La Rossi Pizza is rolling out in select Northeast Whole Foods Market stores.

• Hot on the heels of a brand refresh that included new packaging and product sizes, Lexington Bakes has brewed up a relationship with Equator Coffee. The gourmet baked goods brand will be sold in the coffee company’s Bay Area shops and Equator is now the exclusive coffee ingredient supplier for LXB.

• Call it upcycling. Anyone wanna to buy a trade show booth?

• New Hires of Note: Red Clay Gourmet brought on sales exec Kristine Hardcastle as an EVP (please please, can we finally get Red Clay’s pimento cheese up North); Jamie Forrest, formerly a leader on Whole Foods’ Global Corporate Communications team, will now serve as the retailer’s Senior Team Leader of Special Projects & Employee Communications; 4th and Heart’s Christina Garcia has been promoted from Quality Assurance Manager to Director of Operations.

• (I’m adding appliance coverage. Why? Because I want to. But also because products like the Ninja Creami, Instapot, and Air Fryer have shown the impact appliances can have on food innovation and marketing). Channing Street Copper Company is accepting preorders for its Charlie stoves. Keep an eye on Copper, with Charlie the “first energy storage-equipped induction electric range.” Induction stoves are growing in popularity, and the appliance’s battery power allows consumers to cook 3-5 meals, even if the power is out. As someone who grew up in a state plagued with hurricanes, this would have been nice to have instead of my dad’s old camping stove. Not only does the battery mean customers can use a standard wall outlet (versus needing costly kitchen rewiring), but it also allows the stove to draw not power when the electrical grid is already overtaxed, like at dinner time.

• If someone really wants a TJ’s tote this badly, give me a shout. Perhaps MA just doesn’t get as jazzed about these things, but the last time I went to my local store there were boxes of them available.

• Little Leaf’s “Is it a Salad” marketing campaign had me LOLing. Despite being a Southerner, Ambrosia Salad always confused me. Tell me marshmallows, cottage cheese, maraschino cherries, and canned mandarin oranges don’t just scream health.

Add to Cart, New Items on Shelves:

• “Herbal Remedies” brand Motherlove is answering consumer demand with their latest launch: a line of castile foaming and bar soap. These versatile products can be used for everything from hand and body washing to hair care, pet grooming, and cleaning up spills.

• Ore-Ida and GoodPop teamed up to create the Fudge n’ Vanilla French Fry Pop. If you're a fan of dipping fries in a Wendy’s Frosty, this one's for you. ::Raises Hand::

• Masa company Masienda launched two heirloom corn-based tortillas at Whole Foods nationwide. Over on LinkedIn, founder and CEO Jorge Gaviria detailed what that journey entailed. In recent years the tortilla line took a back burner while Masienda focused on gaining brick and mortar distribution for its ground masa.

• Patagonia Provisions is adding canned sardines to its lineup. While I’m a fan of the tiny fish myself, I recognize not every shopper knows what to do with a sardine. I’m curious if Patagonia’s choice to launch a Coconut Curry Sardine makes the product more or less approachable.

• Our Home, previously Real Food From the Ground Up, introduced new Sea Salt Pita, Cornbread, and Multigrain Pita crackers under its Food Should Taste Good brand. (What do we think is the difference between a Pita Chip and a Pita Cracker?) Coincidentally, Pretzelized, the new brand from RFFTGU co-founder and former owner Jason Cohen’s, just launched its pretzel crackers nationwide in Whole Foods Markets.

• Be still my carb loving heart. Daily Harvest is launching two new SKUs: Sesame Fried Rice and Edamame multi-serve side and Butternut Squash + Cauliflower Mac n' Cheeze.

Weekend Reads:

• Given we’re coming off of Prime Day, you’ve probably heard a lot about Amazon this week. But Bloomberg’s recent article highlights how a single negative review can impact a new company. LDR, someone was sent a used diaper and despite the mixup likely being Amazon’s fault, the company has been unable to get the negative review taken down. (Also, only Last Crumb could charge 10% MORE on Prime Day…)

• Not everyone loves Trader Joe’s Everything Bagel Seasoning. Find out while the cult product is banned in South Korea.

It’s hot weather here in Boston, but today's newsletter contains news about cold hard cash. Early signs of a positive shift in the economic climate? (We’ll ignore the environmental climate) Send me your thoughts!

Also, use the button below or head on over to the tips page to share your news with me. I’ve heard from so many of you and I’m excited for even more conversations.

With Cash Influx, Is Lotus Foods Ready for a New Bloom?

Yesterday Lotus Foods announced a $22.5 million investment from Grounded Capital. So, what's next for this rice and noodle brand? I chatted with CEO Andrew Burke to get the inside scoop.

• Co-founders Caryl Levine and Ken Lee brought Burke on board four years ago. While they’re still actively involved in the company’s strategy and direction, Burke oversees the day-to-day operations of the business.

• Burke confirmed Levine and Lee were the largest shareholders before Grounded’s investment. Some of the $22.5 million went towards offering liquidity to early investors and shareholders and Burke declined to comment on the ownership structure following the deal.

• Currently, the thirty-year-old brand sells 40 SKUs across rice, noodles, and instant ramen. Almost as important as the product line is Lotus’ mission to promote sustainable and ethical rice production, improve the livelihoods of small farmers, and reduce agriculture's environmental impact.

• Grounded Capital’s support for this mission was a “non-negotiable,” Burke said, and key to the deal going through.

• The new capital will go towards two main areas: developing the product portfolio by launching new SKUs and "reinventing" others, and expanding into conventional grocery stores to reach new shoppers.

Read More Deal Details Here

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ACG Closes Fifth Fund; Sees Rising Opportunities in Food and Bev

Investment firm Alliance Consumer Growth Partners (ACG) has closed its fifth fund and is ready to invest in food and beverage brands.

At $160 million, Fund Five is smaller than ACG’s fourth fund ($350M) and third fund ($210M). While the dollar amount reflects the tighter capital market, co-founder and managing partner Josh Goldin told me that the size also better reflects ACG’s refined strategy.

“We are always trying to figure out, and it’s evolved over time, the right number of investments in a fund,” Goldin said. “[It works best when] you say, ‘Okay, we're gonna go make seven or eight or nine investments, and based on our average check size, what's actually the right amount of capital to go into the fund?”

Aside from Athletic Brewing, Fund Four focused largely on apparel, beauty, and skincare, diverging from ACG’s history of backing food brands like Krave Jerky and Suja. Supply chain challenges in food and beverage, coupled with higher margins in non-food sectors, certainly contributed to the Fund Four’s makeup, Goldin said. However, ACG has already invested out of Fund V in Momofuku Goods, and Goldin said he predicts adding more food and beverage brands to the firm’s portfolio.

“The hard part is still capturing really good economics when you're subscale,” Goldin said. “If you’re a $30 million food company, and you're selling at a 15% premium to the national big brands, it's pretty hard to have an amazing product and still have great margins and economics. That's the rare part.”

Read My Whole Interview with Goldin Here.

1-800-Flowers Looks to Build Basket Size with Scharffen Berger Pickup

Scharffen Berger is once again owned by a publicly traded company following last week's announcement that 1-800-Flowers acquired the chocolate company.

• Terms of the deal were not disclosed but according to a LinkedIn post from a former employee, the entire senior executive team at Scharffen Berger was let go.

• Scharffen Berger has had a tumultuous ownership history. Founded in 1996, it was later acquired by Hershey's in 2005. Recognizing that the high-end chocolate market wasn't a good fit, Hershey's divested the brand in 2000, selling it to former Concord Confections president Paul Cherrie and Hampton Roads Capital.

• Over the last year, the brand rolled out refreshed packaging and expanded into new categories such as snacking, with the launch of Breaks — a better-for-you BarkThin’s type product.

• No word yet on what led to the recent sale but the soaring price of cacao has certainly made it difficult to be an independently owned chocolate brand.

• That will be less of an issue for 1-800-Flowers, which owns several brands that utilize cacao. Executives at the $2 billion brand previously told analysts that they have locked in cacao pricing for the year, thus mitigating some of the blow from rising supply chain costs.

• Buying Scharffen Berger fits with 1-800-Flower’s plan to own a portfolio of complementary brands that can, quite literally, build (gift) baskets.

Read Up on the Deal and 1-800-Flowers’ Strategy Here

Oh, Cheeze Whiz! Credo Foods this week launched spray-can cheese, my second favorite canned dairy product after whipped cream. (Are there others?) With its most recent launches including center store items such as plant-based queso, alfredo sauce, and nacho cheese dip, Credo has clearly diverged from other plant-based dairy brands, which have largely focused on the chilled dairy case.

The packaging is playful and it’s an interesting addition to the portfolio for sure, but if I was interviewing Credo, here’s what I would ask:

• Research indicates the spray cheese market is set to grow from $1.4 million in 2023 to $2.1 million by 2033. The big question: how much of this market does Credo need to capture for this venture to pay off?

• Are spray cheese consumers seeking a better-for-you option, or given the product they are buying, do they care?

• Key players in this arena include giants like Kraft Heinz, Bel Group, Lactalis, Fonterra Food, Savencia, and Dairy Farmers of America. Is there space for an emerging brand, or is the market dominated by incumbents and their pricing power?

A fun aside, Berner Foods claims to produce 98% of the spray cheese on the market, churning out nearly 80 million cans over the last three years.

News Bites

• DC-based distributor, incubator, and community kitchen Union Kitchen opened a new storefront at Dulles Airport, offering emerging local brands a global stage.

• I'm not familiar with The Black Leaf Tea & Culture Shop, but its owner’s story made me wince. It's unfortunately all too common to see brands invest heavily in trade shows, events, or conferences and then see disappointing returns. Repeat after me: if attending an event could hurt your company, just say “no.” That said, the company has big goals, so consider supporting their GoFundMe. Along those lines, let's commend the owners of beverage brand Kekeda for their honesty.

• Talk about upcycling. Big Idea Ventures has launched Bayou Best Foods, a new plant-based seafood company that utilizes IP from the now-defunct startup New Wave Foods. What caught my eye, however, was the appointment of Kelli Willson as CEO. With extensive experience in CPG quality, operations, and regulatory compliance, I believe that Willson's hiring speaks to critical pain points plant-based companies are facing.

• In other moves, Taika COO Kal Freese has departed the beverage brand to join "sleep fitness company" Eight Sleep as its Special Projects Lead.

• Breaking from our usual beat, Subway added three new sandwiches to its menu— bringing barbecue sauce back to the sandwich chain for the first time in three years. This caught me off guard because BBQ seems like it would be such a standard condiment at Subway. Frankly, I’m surprised its not some cobranded option with Sweet Baby Ray’s. I'm also all for this SubKrunch topping—think croutons for your sandwich. Sound odd? Try potato chips in your sandwich and tell me the texture isn’t better.

• From pickle earrings to Hamwaiian shirts, Dietz and Watson's swag drop has me swooning. Their rebranding efforts targeting younger shoppers impressed me at last year Expo East — I won a “meat sweats” set of sweat socks — and the line feels authentic to the new brand ethos. I appreciate, as well, that’s more about conversation pieces rather than branded items. Now, I need to decide if pickle earrings pair well with a Fishwife necklace.

• Distro News: S’Noods is now available at 160 Fresh Market locations, and The Three Little Pigs Sou Vide Meals can be found in Safeway and Acme stores across the Mid-Atlantic region.

New Products:

• This is more of a “new to me” type product, but I have to rave about Mezzetta’s Roasted Red Peppers Mediterranean Hot Sauce. I don’t particularly like roasted peppers, but this is my solution to every this-dish-needs-something conundrum.

• In collaboration news, Michelle’s Granola and SIMPLi joined forces to create a limited edition Strawberry & Red Quinoa Granola that features SIMPLi’s Regenerative Organic Certified Red Quinoa. If it's anything like Michelle’s other offerings, it's a must-buy.

• Premium matcha brand matchawell launched this week. In a clever twist, matchawell has named its two tea offerings “The Daily” and “The Weekender” to highlight quality differences between SKUs.

• Hoping to capitalize on the nutritional benefits of yogurt, Siggi’s has rolled out Protein Packs. Will adults warm up to food in pouches? It's been a tough sell for many brands.

• On the snack front, newcomer Cob describes their popped sorghum snacks as “corn-free popcorn.” Clever marketing? Many shoppers don’t know what sorghum is, so perhaps the wording will inspire them to look further and ask “if it’s not corn, what is it?!”

After thirty years, Lotus Foods is ready for its next phase of growth, and with a $22.5 million investment from Grounded Capital, they now have the cash to make it happen. "This helps us really scale the impact that we can have as a company," CEO Andrew Burke told me.

Terms of the deal weren't disclosed, but Burke shared that the investment is a mix of primary and secondary capital, offering early investors some liquidity. Co-founders Caryl Levine and Ken Lee were the majority shareholders prior to the deal, but it remains unclear if they still are, as Burke declined to comment.

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The deal is the culmination a plan that started with Burke being hired as President in 2019 to help Lee and Levine "chart the waters for how to go forward," he said. Burke was promoted to CEO in 2023, and though the two co-founders remain very actively involved in the business, it’s a different relationship now.

“We've been working [on this deal] for more than three years.” Burke said. “It's [Grounded Capital’s] long term perspective that I think makes this right.”

But Lotus Foods isn't just about products; it's about a mission to promote sustainable and ethical rice production, improve the livelihoods of small farmers, and reduce agriculture's environmental impact. So Grounded Capital’s own mission-focused investment thesis was key to the deal, with Burke stating that supporting Lotus’ goals was a “non-negotiable” in finding a partner.

Plenty of investors rave about the importance of mission, only to weaken these efforts post-deal. But Burke said the questions investors asked made it clear who was really all in.

“Once you get into the back and forth and you hear the questions that are asked [by potential investors], you then understand, ‘Okay, what's the real underlying thing that they're looking for?’ And you can kind of start weeding out the right partners,” Burke said. “At the end of the day, [an investor can say] a lot of nice buzzwords, but it's when you sit down and you see…what they want to get down to brass tacks on, you pretty quickly understand, ‘okay, this is really where their priority is.’”

Burke declined to comment if the brand rejected offers with a higher valuation or larger check size from less mission-driven entities.

So, what's Lotus' own priority? In one word: Growth. While this will include debuting new products (though the company already has 40 SKUs) and "reinventing" current offerings, the team will largely focus on expanding retail distribution beyond its current 9,000 store count. Conventional retail and mass are of particular interest, Burke said. (Though if anyone at Costco is reading this, PLEASE bring back the large Lotus Foods bag of rice. It’s been gone for years, and yet I check every time I shop in hopes it has yet again returned.)

Burke acknowledged Lotus is still a premium-priced product in a commodity category but said there is potential to lower prices as the company grows. The rice noodles and ramen, he said, have been performing particularly well in conventional retail—perhaps due to the rise of more premium instant noodle options from players like Immi, Omsom, Ocean’s Halo, and Momofuku.

“[We want to] identify new consumers who are open to the proposition that we put forward in the rice and noodles that we go to market with, but maybe they don't shop in Whole Foods,” Burke said “And [we plan to] identify those channels, identify those customers, and then really reach out to them and start a conversation with them.

Is the market for food and beverage investment looking up? According to Alliance Consumer Growth Partners (ACG) managing partner and co-founder Josh Goldin, the answer is a resounding yes. With yesterday’s announcement of the close of its Fund Five, the investment firm is poised to make strategic moves in the food and beverage sector.

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Coming in at $160 million, Fund Five is less than half the size of Fund Four’s $350 million, and smaller than Fund Three’s $210 million. When asked about the change, Goldin was refreshingly candid. “It’s a tough fundraising environment for everyone. We're all part of the global economy and, unfortunately, subject to macroeconomic forces.” Credit where it's due, Goldin's honesty is a breath of fresh air in an industry often filled with platitudes.

But, Goldin also emphasized that the decrease in fund size was intentional.

“We are always trying to figure out, and it’s evolved over time, the right number of investments in a fund…[it works best when] you say, ‘Okay, we're gonna go make seven or eight or nine investments, and based on our average check size, what's actually the right amount of capital to go into a fund?” he said. “At the end of the day, the return is sensitive to the fund size. If you return the same amount on a bigger fund, it's a lower return. If return the same amount on smaller fun, you're a hero, because the returns are better. So we're always trying to optimize for having the highest possible returns for our investors.”

ACG plans to maintain its check size but will reduce the portfolio size from the 12-13 companies seen in prior funds to 7-9 brands. Generally, ACG looks for businesses with $10-$90 million in sales, though that can vary. Because ACG takes minority stakes in companies, versus seeking control deals, Goldin said, it can still afford to invest in larger companies.

ACG has a rich history of backing food and beverage brands, with its portfolio including Krave Jerky, Suja, evol, Bark Thins, Shake Shack, and Cappello’s. So I asked Goldin why Fund Four’s portfolio companies (Athletic Brewing, Skims, Harry's, Good American, Milk Makeup, Super Ordinary, and Herschel) largely fell outside these two segments. Some of these deals were simply a case of being offered a good opportunity or with executives ACG already knew, but Goldin said the makeup is also an indicator of the financial climate.

“During COVID, and post COVID, there have been complexities for food and beverage brands around manufacturing and margins, and it took companies a few years to figure out how to navigate [this]. There was a period where a lot of packaged food brands and beverage brands, even if they were great brands, they had challenges making the margins work,” Goldin said. “But in beauty, particularly prestige beauty, you're going to have a much higher gross margin profile.”

Similar moves from other funds, like VMG and CAVU, show ACG isn’t alone. However, Goldin said F&B brands should remain optimistic about raising capital in 2024 and beyond. As brands have recalibrated, the potential for better margins and solid finances has increased. He noted there’s a “high chance” that “a good portion” of Fund Five will be invested in food and beverage brands. ACG has already invested from Fund Five in Momofuku Goods and, he added, with founders no longer seeking huge (and often out-of-touch) valuations, ACG’s smaller check size allows the fund to be more competitive.

“I think the fundamental things that make a company or an investment great are still the same today as they were five or 10, or 15 years ago. It's still about creating an amazing, better product in a big pre-existing category,” Goldin said. “You also still need to have a price point that is accessible to most people — that could still be an accessible premium. But the hard part is still capturing really good economics when you're subscale. If you’re a $30 million food company, and you're selling at a 15% premium to the national big brands, it's pretty hard to have an amazing product and still have great margins and economics. That's the rare part.”

In short, while the landscape may be challenging, there’s plenty of reason for optimism.

Chocolate company Scharffen Berger is changing hands again, this time in a sale to 1-800-Flowers. Terms of the deal have not been disclosed, other than the fact that the senior leadership team was not kept on. 

The brand has struggled over the last decade to find its footing, so could this deal result in yet another change to the chocolate company’s sales strategy? And how does this fit into 1-800-Flowers’ strategy to build basket size while centralizing its manufacturing and distribution? Let’s take a look. 

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A Quick Chocolate History Lesson

Founded in 1996, California-based Scharffen Berger was purchased by the Hershey Company in 2005, part of an effort to build out a high-end chocolate division alongside the 2006 acquisition of Dagoba Chocolate. But in 2020, Hershey streamlined its business, selling Krave Jerky to Sonoma Brands and Scharffen Berger to former Concord Confections president Paul Cherrie. 

What happened to Dagoba is fuzzy. While the company’s Instagram pages have not been updated in years and its website redirects to a Hershey’s owned property, Scharffen Berger’s website lists the address of Dagoba’s prior manufacturing facility. This last part could be key to the 1-800-Flowers pickup. 

With financing support from Hampton Roads Capital, Cherrie planned to reinvigorate the brand, broadening the portfolio and targeting snacking. In 2023, it launched Chocolate Provisions, a line of portion-controlled “chocolate thins,” and BREAKS, a competitor to Bark Thins. According to a LinkedIn post by former Senior Director of Sales Nathan Dahlen, over the last 19 months, the team grew the business from less than 200 doors to over 2,500 doors, with accounts including Whole Foods Market, Publix, Giant Eagle, Albertsons, HEB, and Bristol Farms.

Executives did not return a request for comment about why the company was sold. Still, I wonder if rising cocoa prices played a role, making the company less financially appealing to Cherrie and his investors. The specialty chocolate industry has also seen many mergers and acquisitions, and I wonder how hard it is to be an independent company given the current supply chain challenges. 

1-800-Flowers, Really?

Raise all the eyebrows you want but 1-800-Flowers has a fairly significant portfolio of food brands. Sure there’s gift basket stalwart Harry and David, but the company also owns The Popcorn Factory, Wolferman’s Bakery, Simply Chocolate, Vital Choice Seafood, Moose Much, and Cheryl’s Cookies – and its revenues from that segment are nothing to sneeze at. 

• According to 1-800-Flowers’ May quarterly earnings report, of its consolidated revenues of $379.4 million in the third quarter (down 9.1% from the prior year period), $131 million came from its gourmet foods and gift baskets division. That segment’s sales have dropped 11.4% from the prior year period, with e-commerce sales down 4.5%. 

• Still, gross profit margin for the division expanded 530 basis points to 29.9%, compared with 24.6% percent in the prior year period, and the segment’s contribution margin loss improved as well. 

• The company’s last food-related acquisition, Vital Choice Seafood, was purchased in October 2021 for $20 million, with revenues of $27.8 million for the prior year. 

• Fun Fact: 1-800-flowers owns the domains www.berries.com and www.greatfoods.com 

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What Does the Future Look Like?

The goal, 1-800-Flowers’ executives previously told analysts, is to offer an array of complementary products to drive up the average order spend (currently $79) that can utilize a centralized manufacturing and distribution network. As the company has several other chocolate brands already, with its Simply Chocolate website delivering over 4 million chocolates per year, Scharffen Berger easily plugs into 1800-Flowers’ supply chain and increases the company’s cocoa buying power. Furthermore, its Oregon facility could offer the company a West Coast chocolate manufacturing option and is less than an hour’s drive to Harry and David’s 52-acre Oregon headquarters. 

But will Scharffen Berger remain in retail? Given that 1-800-Flowers seems focused on e-commerce; some wholesale holiday gifting; and a limited number of Harry & David’s and Cheryl’s Cookies branded stores, I don’t know how likely that is. Maintaining a grocery presence would require a significant investment, and 1-800-Flowers already underwent a reduction in force last quarter.

If I could argue for retail, I’d note that the channel could solve some existing pain points for 1-800-Flowers, including acting as a trial/sampling opportunity for (hopefully) larger online orders. It also would get the company’s products into the hands of what it calls “value” shoppers, who are turned off by higher price points. 

Additionally, in its 2023 annual report, the company said sales were down for “everyday” gifting and I’d argue that many “everyday” gifting purchases are made on the spot in stores, versus in advance online. While 1-800-Flowers has tried to address this with more same-day delivery options via its BloomNet network, there’s something to be said for simply adding a product to your cart. 

Other Notable Recent(ish) Transactions in the Specialty Chocolate Space:

• 2023: Theo Chocolate merges with American Licorice Company

• 2023: PE firm Levine Leichtman Capital Partners purchases Kilwin’s Quality Confections and Kilwins Chocolates Franchise

• 2022: Chocolate Works acquires substantially all of the assets of Moonstruck Chocolate 2019: The Abel Family, owners of Chocolate Chocolate Chocolate Company, buys Bissinger’s Handcrafted Chocolatier

• 2018: Ferrero International acquires the Fannie May Confections Brands and the Harry London chocolate brands from 1-800-Flowers.com

• 2018: Ezaki Glico purchases TCHO Ventures

• 2018: Kar's Nuts buys Sanders chocolate

• 2017: Nuts.com acquires Kopper’s Chocolate

Brands Faced with Recalls; Labeling Issues

The FDA has been busy the past week(ish). But before I get into what’s going on, I want to say that I feel so badly for many of these companies, particularly the emerging brands. I urge everyone to try to support them as they work through these issues.

Now, I’ve covered some of this news in-depth, but here’s the abbreviated version. First off, we ended last week with a recall of over 200 RTD coffee products from more than 100 brands over concerns about potential botulism toxin.

• The beverages were produced by Snapchill, a co-man that claims to have a proprietary process of rapidly cooling hot coffee, preserving more of each roast’s unique flavors.

• Let’s be VERY clear, there has been no botulism toxin found to date. It seems Snapchill never filed the proper paperwork with the FDA, so the FDA couldn’t verify that their canning process wouldn’t result in botulism growth. Essentially, as the saying goes, “absence of evidence does not mean evidence of absence.”

• I’m a little confused as the FDA notice states that “the problem was identified” when they notified Snapchill of the missing paperwork, not simply that the paperwork was missing. However, Snapchill’s website seems to indicate this is simply a filling issue.

• Snapchill has picked up many partners over the last year, thanks to a new relationship with the coffee incubator/broker Local Collective and their new shareholder, logistics and distribution partner Englewood Marketing Group (EMG).

Next, we had some listeria concerns over at ice cream manufacturer Totally Cool.

• Products impacted by the recall include ones under the Jeni’s, Marco, Friendly’s, Hershey’s, and Dolcezza brands, among others.

• There doesn’t seem to be a constant among the pulled products which included pints, cones, and sandwiches that are both dairy and non-dairy based. On my LinkedIn post a few people stated that if the plant was vegan this wouldn’t have happened, but listeria is not a carnivore. It hits anywhere.

• Again, the details are scant. What we know is that FDA sampling discovered the presence of Listeria monocytogenes somewhere. Jeni’s specifically has noted that no listeria has been found in their products to date, nor has the bacteria been found on the equipment used to produce their sandwiches.

• The date codes of the products pulled typically range from May 2024 through May 2025. Given how far in advance ice cream can be manufactured, it’s likely that Totally Cool recalled all products produced after their last FDA inspection, which appears to be in May 2023.

• One expert told me years ago, “If you aren’t finding any listeria in your factory, you aren’t looking hard enough.” The problem is when its found somewhere that could impact products or in products, versus in say, a floor drain.

Continuing on, we’ve got some edible issues:

• The FDA, CDC and America’s Poison Centers are currently investigating a series of illnesses associated with eating Diamond Shruumz chocolate bars, cones, and gummies. The products were sold online and at various retail locations nationwide, including smoke/vape shops and retailers that sell hemp-derived products such as CBD or delta-8 THC.

• The company advertises its “trippy” products as containing nootropic and functional mushrooms, offering consumers a “premium microdose.”

• However, these snacks are causing serious side effects, including seizures, loss of consciousness, abnormal heart rates, and hyper/hypotension. To date, 39 illnesses across 20 states have been reported, resulting in 23 hospitalizations.

• While the FDA has been in touch with Diamond Shruumz’s manufacturer about a voluntary recall, it appears the company has declined to do so at this time.

• FDA testing of the products found the presence of Kava kavalactones as well as O-acetylpsilocin (aka psilacetin), a substance with a similar chemical makeup to psilocybin, DMT, and LSD.

Finally, the FDA also sent a warning letter to Bimbo Bakeries, telling the bakery corporation to change its labeling practices.

• First up, it seems Bimbo is labeling products as containing allergens such as sesame seeds and tree nuts when they don’t. While this might mitigate their risk if, for example, a sesame seed slips in there, the FDA pointed out that this makes product labels false and misleading. (I’m just waiting for someone to sue because they bought bread thinking it contained sesame seeds!)

• Next, another Bimbo product lists “Kamut” as an ingredient. The issue, according to the FDA, is that Kamut is a brand name and not an ingredient in itself. The correct name is Khorasan wheat, which Bimbo has misspelled elsewhere on the packaging as “Khorsan.”

• Finally, Bimbo did not include certain ingredients in their nutrition panels because they “consider[ed] them to be present at insignificant levels and not to have a functional or technical effect on the product.” However, the FDA had already told the company this was a no-go, as these ingredients are, in fact, processing aids.

• My favorite line from this warning letter, which is pretty snarky as warning letters go: “Labeling is not a substitute for adherence to good manufacturing practices or implementation of preventive controls.”

For some industry analysis and advice on working with co-mans, check out the comments on my LinkedIn post.

Shopify to Help Brands Get On Target:

Target is hooking up with (or perhaps, better said, hooking into ) Shopify as merchants on the Shopify platform can now apply to be sold as part of Target’s Target Plus program. Target executives emphasize that the marketplace will be highly curated, so while they clearly want to compete with the likes of Amazon, they don’t want their website to become a free-for-all.

Here are a few things I’m pondering:

• Shopify is already a partner and shareholder in Faire, stocker of "shoppy shops” everywhere. Food brands, in particular, are a big category for Faire, so given this existing relationship, will Faire clients have a leg up on getting into Target's program?

• I could see this integration being a good fit for premium food products, especially somewhat perishable items, that haven’t fully made the jump into traditional CPG. For example, I’m thinking of brands like Milk Bar and Levain Bakery, which haven’t translated well to store shelves. Shipping directly to Target consumers would give them the mass consumer they wanted to reach, without worrying about needing long freshness dates.

• Pet products also seem like a winning category. There are plenty of D2C brands in the pet space with aesthetics that align with Target’s, but they face limited shelf space in stores. This partnership could be a great opportunity for them.

What do you think? Is this a game-changer for small brands? Share your thoughts!

News Bites:

• Perfect Snacks rolled out a new series of ads to educate shoppers that their bars are sold in the refrigerated section of the store, not with other protein snacks. The video is pretty cute ("Fridge is my favorite F-word, what’s yours? I just want you to follow your heart, if your heart says left"). But then I realized what this means: even with the power of Mondelez, shoppers still don’t know where Perfect Bars are sold. There was lots of talk when the bar company sold about the rise of refrigerated snacking, but has that come true?

• When one grocer’s door closes, another opens. The Fresh Market recently posted several new job openings for a soon-to-open location in Chicago at the site of a former Dom’s Kitchen & Market store.

• Mirepa Investment Advisors (MIA) invested in supplement, skincare, and ingredient provider True Moringa. The firm manages PE and VC funds in Ghana, where True Moringa sources its flagship ingredient, moringa. “Sadly, the majority of our investments have come from outside of Ghana,” said Kwami Williams, co-founder of True Moringa. “It means a lot to me and is important for the ecosystem to see MIA re-write that story: seasoned Ghanaian investing team investing in Ghanaians to do well and do good.”

• Mike’s Hot Honey is truly on a collaboration roll. Yesterday, Dunkin’ announced three new additions to store menus in partnership with the condiment brand: a Hot Honey Bacon Sandwich, a Hot Honey Bacon Wake-Up Wrap, and Hot Honey Snackin’ Bacon. If we bring Grillo's and Mike’s together somehow, I think we’ll hit peak collab power. Can grocery shelves even handle that pairing?

• D2C Supplement company Care/of has closed its doors its doors. In addition to personalized supplement packs, the company sold an array of functional powders such as protein, probiotics, maca, chia, flax, and collagen.

• Food vendors at the California State Fair better be prepared for customers with a serious case of the munchies. According to a press release, the annual event will include onsite sales and consumption, marking the first time cannabis will be legally sold at a state fair.

• Hiring & Promotions: Jon Hayes has been promoted to Director of Social Media & Community Management at seasoning brand Dan O’s (which has 4.5 million TikTok followers); DayDayCook (the now owner of Nona Lim, Yai’s Thai and Omsom) brought on Malik Sadiq, PhD as its new COO and Jeff Ervin as the company’s Co-CFO; Indranil Guha has joined investment group VMG as a general partner in their technology fund; Jim Ehlen was promoted to Director of Sales at snack company Calbee North America.

New Products:

• It’s truly Christmas in July. Vosges is selling a handcrafted, made-to-order advent calendar…now. Roughly 19 inches tall and 2 feet wide, the calendar lights up and plays music, and contains 24 chocolate treats and a limited edition candle. At a whopping $500, calendar orders must be placed by July 24, but if you miss out, Vosges is dropping another calendar in September for pre-order.

• I got excited by this Instagram post by Yoquiero Brands, which initially looked like a new egg-stuffed avocado take on a scotch egg, but at further glance seems more like an avocado/egg salad. Still into it.

• Truff is moving into a new condiment category — or at least a few shelves over — launching a truffle-infused buffalo sauce.

• Little Sesame x Vista Hermosa. Honestly, I think enough said.

• The Barbie trend is far from over, with Bumpin Blends debuting new Barbie Strawberry Dream Smoothie Cubes in Sprouts stores nationwide. According to Bumpin Blends’ founder Lisa Mastela, the partnership came about after she bumped, no pun intended, into Mattel’s VP, Head of Global Licensing and Consumer Products Partnerships at an airport.

• Minute Maid Spiked, which previously was only offered in a 1.5L multi-serve bottle, is launching mini cans of its flavored wine cocktails.

• Hot Pot Queen is releasing a new Spicy Sesame Dan Dan Noodle Kit, one of the first SKUS to debut in the company’s new single-serve noodle packs.

• Brooklyn Cured’s new Bresaola and Gouda pack stood out to me because of its use of a beef-based cured meat. Most of these meat and cheese grab-and-go items typically lean towards a sliced salami, so this could bring a new customer to the set.

Summer has just started, but two major recalls have already impacted the food industry, resulting in over 250 ice cream and coffee SKUs being pulled from shelves.

Ice Cream Co-Packer Recalls Products Due to Listeria

Yesterday, ice cream co-packer Totally Cool, Inc. recalled all ice cream products made at its Maryland facility after FDA sampling detected the presence of Listeria monocytogenes. Companies affected by the recall include Marco, Jeni’s, Dolcezza Gelato, Cumberland Farms, ChipWich, Hershey’s, and Friendly’s, among others.

Details about the origin of the listeria are still undisclosed, and it is unclear if the company has identified the source. Unlike other recalls I've covered, which often involve products from a specific line or ingredient, this recall affects various formats (pints, cones, sandwiches, and cakes) with few shared ingredients.

It also appears that timing may be a concern. According to the filing, many of the impacted products have a best-by date ranging from May 2024 to December 2025. Ice cream has a long shelf life, so a product with a May 2024 date code was likely produced in 2023. The FDA inspected Totally Cool in May 2023, so it's reasonable to assume the company is potentially just pulling all products made soon after that date.

The impact on individual brands remains to be seen. Taharka ice cream shared on social media that it was only working with Totally Cool on one run of its Honey Graham and Key Lime pints. Potentially other brands had a similar relationship, with Dolcezza recently posting to Instagram “7 days a week. everything made in house from scratch…hand packed. hand made. old school.”

For Jeni’s, the recall includes only the company’s ice cream sandwiches, which were launched last November and comprise a small part of its product portfolio. A statement from Jeni’s says the ice cream sandwiches were recalled out of “an abundance of caution” and “as requested by Totally Cool.” No listeria has been found in Jeni’s Frozen Dessert Sandwiches or on the equipment used to produce them.

Marco, however, has all its pints and sandwiches listed on the recall notice. The company has been teasing the upcoming launch of the sandwiches for several weeks. An Instagram post a few days ago noted, “We’re getting very very excited for our [sandwich] launch, wbu?”

RTD Coffee Producer Pulls Products Due to Potential Botulism Presence

Over 250 ready-to-drink coffee SKUS have been recalled due to the potential presence of botulinum toxin. The beverages, produced by co-packer Snapchill, were sold under various brands, including George Howell, Intelligentsia, and Metric Coffee. The FDA published a notice late last week.

No illnesses have been reported to date, and Snapchill is unaware of any instances in which its products contained botulinum toxin. However, the FDA notes that Snapchill’s low-acid canning process “could lead to the growth and production of the deadly [botulinum toxin].” The potential issue arose when the FDA notified the company that it had never filed certain manufacturing documentation.

Recalled cans were sold in 7 oz or 12 oz sizes and have “produced and distributed by Snapchill LLC” printed below their nutrition facts panels. Some products also feature “Snapchill Coffee” callouts on the front. The product was sold directly via Snapchill’s website and in numerous national retailers. 

Founded in 2017, Snapchill initially launched with its own line of RTD coffee under the Elemental Beverage Co. brand name. In addition to co-packing, executives planned to sell smaller versions of its proprietary coffee cooling system to cafes, but that sales channel appears to have stopped in its pilot phase.

The past two years saw two key developments that drove the adoption of Snapchill technology among coffee brands. First, in 2022, logistics and distribution company Englewood Marketing Group (EMG) reportedly purchased roughly half the company, giving Snapchill an easier route to market and access to EMG’s customer base. Then, in 2023, Snapchill partnered with Local Collective, a coffee incubator program that helps emerging brands get into Walmart stores, becoming its exclusive RTD manufacturer. Unfortunately, these are the same brands now being recalled.

Bokksu Seeks to Build Its Moat via Brick and Mortar

After a busy few years acquiring subscription box service Japan Crate and raising $22 million, e-commerce retailer Bokksu is taking aim at brick and mortar, most recently getting pickup in all Giant Food stores.

Until late last year, Bokksu had three lines of revenue:

1. Its flagship Bokksu Box, which includes higher-end Japanese snacks.

2. Bokksu Boutique, an ecommerce retailer selling premium Japanese products ranging from Le Creuset pans to handmade candy

3. Bokksu Market, a second e-commerce retailer selling largely mass-produced grocery items

But in 2023, Bokksu acquired Japan Crate (which also sells more mainstream Japanese snacks) and, through the deal, not only expanded its subscriber base but also picked up distribution in 5,000 retailers.

Now the company is putting more effort into brick and mortar, looking to not only add more distribution for Japan Crate but also by becoming a distributor for Japanese products.

“What we've been hearing from a lot of our buyers is that…[they want to sell] things like Pocky or KitKats and such, and they just have not been able to because a lot of that [distribution] has been dominated by traditional Asian food import companies in America,” founder and CEO Danny Taing told me. “[Many of those importers] don't even speak English very well and definitely do not have a modern sales process.”

What’s next? Well, expect a premium line of Bokksu-branded food items headed to retail in 2025. It won’t ever be a huge part of the business, Taing said, but it’s another way to reach shoppers and diversify revenue streams.

“We're going do it in a way that's not as over committing…it’s a step process where we got retail distribution first via the box, [and] then via being a general Asian food retail distributor,” Taing said.

BTW If this all sounds intriguing to you, reach out — Bokksu is raising a bridge round of funding, which Taing said should take the brand to profitability.

And, in the meantime, check out my full interview.

Oy Vey: This Week in “Why People Worry Me”

According to a study of 3,000 shoppers commissioned by The Ajinomoto Group, a U.S. manufacturer of monosodium glutamate (MSG), people need to stop getting their news off TikTok and Facebook. Now, normally I’d dismiss a report like this as being biased, but it appears the company put a fair amount of time and effort into creating something well-written and researched. Here’s what you need to know:

The Dangers of Social Media:

Not only did 57% of respondents report changing their eating behaviors because of something they saw on social media, 60% said they rely on their intuition and personal knowledge to assess these food claims. The overall sentiment across all respondents, The Ajinomoto Group found, was a culture of fear around what food choices were “right” or “wrong” — a concern that rang true regardless of socioeconomic backgrounds, education levels, gender, and political parties.

And lest you think this is an exaggeration, remember, there’s currently a rumor on TikTok that retailers are trying to pass off rubber blueberries, watermelon and bananas as real fruit.

The best (aka worst) stats:

• 30% of respondents have tried or would consider putting garlic up their nose for congestion relief (compared to the 25% of respondents who regularly check to make sure influencers are qualified before listening to their advice).

• 1 in 10 people in the U.S. (14%) think cheese gives you nightmares.

• 60% of respondents said they would avoid consuming Dihydrogen Monoxide (aka…water).

Concerns for the “Ethnic” Aisle:

Beyond the misinformation element, what worried me was how respondents viewed many global cuisines, such as ones found in the “ethnic” aisle at grocery stores.

• 34% of respondents said they have tried to avoid “specific diverse cuisines” in an effort to be healthier.

• 54% of respondents from communities of color (38% of the total pool) have seen misinformation online attacking tradition food items from their culture or heritage.

• 48% of respondents from communities of color reported that they have personally been, or have seen others be, insulted or ridiculed because of food from their culture or heritage

Skip this if you’ve heard my lecture already, but this is part of why I hate brands who advertise their products as the “clean” version of [insert cuisine here]. While this is likely a well-meaning claim, a lack of attention is often given to the consumers already eating this item, creating a feeling of alienation and shame. If you make the “clean” version of chili crisp, black beans, or, say, Indian sauces, does that mean the others are “dirty?”

News Bites:

Bragg Buyers? According to Reuters, apple cider vinegar brand Bragg Live Food Products has hired Bank of America to explore a sale. Sources told Reuters that the deal would value Bragg at more than $500 million, including debt, which is equivalent to at least 10 times EBITDA. Founded in 1912, Bragg was acquired by an investor group led by private equity firm Swander Pace Capital in 2019.

Kroger Sells A LOT of Sushi: In a press release this week, grocery retailer Kroger casually mentioned it’s the “largest sushi retailer in America” with one million rolls of fresh sushi sold per week. The release goes on to note that the retailer has launched a Cheetos Flaming Hot California Roll, which is coated with crushed Cheetos Flamin’ Hot snacks and topped with a spicy sauce. The fun doesn’t end there, and I’m not making this up, in the fall the retailer will sell a Doritos Flamin’ Hot Limón Shrimp Tempura Roll. Please please someone try these and report back. I can’t fly across the country just to eat Frito-Lay sushi.

Distribution Wins: Chip brand Jackson’s can now be found in 800 Walmart stores; Arya Rotis are available at select Whole Foods Market in the Mid-Atlantic Region (trust me, run don’t walk to try these); African Dream Foods’ African Ghost Pepper Sauce can now be found in Albertsons; Clevr Blends has been picked up by several regions of Whole Foods including the Sopac, Norcal and Pacific Northwest; Grillo’s pickles has locked in another food service deal and will now top Plant Power Fast Food’s The Ribby sandwich.

Cheers to SoulCycle: Fitness studio SoulCycle is hosting a Wellness Weekend at The Barn, its seasonal Bridgehampton location. While the event features (and is sponsored by) more traditional fitness offerings like IV drips, facials, and B12 shots, instead of a a sea moss or adaptogenic beverage, riders will be able to partake in a non-alc Athletic Brewing beer post ride.

Kombucha Slingers: The fermented food fam at GT’s is adding an experienced exec to the team as Brandjectory co-founder Michael Movitz joins as VP of Sales Operations. The kombucha company also added Kelly Behr as its new Sr Director of Sales. Behr has spent roughly the last six years of her career in sales roles at Nuts For Cheese and Kite Hill. I wonder, could the hiring of an alt-dairy sales slinger indicate a renewed emphasis on GT’s Coyo coconut yogurt?

Copycat Mushroom Movers: You know the grey/black market is getting bad when you have to issue a press release about it. This week Fungi Perfecti, the makers of Host Defense® Mushrooms issued a press release warning consumers that multiple unauthorized accounts on eBay.com and Walmart.com were selling counterfeit products using their brand name. Reportedly Walmart has taken down the fake profiles, but I give Host Defense credit for providing shoppers clear instructions on how to spot a fake. Tell me, how would you handle this situation?

Get Hired:

• Omsom’s putting that DayDayCook $$ to use already, posting for several contract digital marketing positions. One interesting tactic: hiring a “creator crew” to develop content for the brand. Now, normally, this would mean influencers posting to their own accounts, but in this case Omsom seems to just be hiring freelancers for their own account.

• As it looks to grow in retail, FS Drinks, makers of the newly launched RTD Simple Boba, is hiring a Director of Customer Experience to head up field marketing and sampling. Note, the role is for equity compensation only.

• The PepsiCo Life Sciences Engagement Team is still searching for a scientist for its Gatorade Sports Science Institute. With a goal of “translating the science of sports nutrition for academic and practitioner audiences,” the new hire with be tasked with everything from helping with communication plans aimed at athletes, to social media content development, to coordinating science conferences.

New Products:

• I’m fascinated by this one: Nestlé is releasing Kickin' Jalapeño Carnation Evaporated milk, a limited edition flavor designed to be used in mac and cheese. I’m curious to see if this can educate shoppers that there’s a use case for evaporated milk beyond baking. Keep in mind, in 2022 Eagle Foods (the owners of both the Eagle Brand and Magnolia brands of condensed milk) announced its own growth plans — but this time via acquisition of Hamburger Helper and Suddenly Salad

• Brooklyn Delhi is moving into meals. I’ll be watching to see how the sauce and condiment brand grows now that it’s in a faster-turn category. I do, however, wonder where these will be stocked: in the ethnic set or alongside A Dozen Cousins, which often has a more prominent slot in canned beans. Whole Foods Market has the exclusive for now.

• Speaking of meals, canned bean company Heyday is moving into a new category with the debut of a six-SKU line of soups, chilis and stews. I think the later two work well with the existing portfolio, as many shoppers already use the canned beans as the base for dishes/stews. I’m curious to see how the more traditional SKUs do, like Tomato, Lentil and noodle, given the sheer amount of other options in the set. Granted Heyday is putting a twist on each flavor (think Lemon Parmesan Noodle Soup) but that could also alienate some shoppers just as much as it differentiates the brand.

• GoodPop is launching new (shelf stable) Hydration Pops. Keep an eye out on the brand evolution here as the company goes from frozen novelties to beverage and now more functional offerings. Reportedly fellow tube-pop brand DeeBee’s was up for sale last year. Clearly other brands have paid attention to the brand’s growth with Good Pop not the only new entrant. So, will a rising tide lift all boats or cannibalize sales? Shoot me a note if you know how the category is looking.

• In one of the better cobranded subscription box partnerships I’ve seen, Reynolds Wrap and ButcherBox have teamed up on a limited-edition BBQterie Kit ($119). While I think this feels pretty organic, I refuse to use the term “BBQterie” for what appears to be just… barbecue arranged nicely?

• In yet another attempt to reinvent the Lunchable, Olli Salumeria, has teamed up with That's It. to launch a new snack pack containing a cured meat, sliced cheese and a That’s It. bar.

• I’ve seen lots of Pixar and Illumination Entertainment tie ins, but often they just involve a minion stuck somewhere on the front of pack. So I’ve gotta give King’s Hawaiian credit for this packaging. The minion taking a bite / lineup on the product window is just perfect!

How do you survive as a subscription box brand? You diversify. That’s the plan Japanese snack and candy subscription box Bokksu has taken, and investors have noticed. The company, which now includes two online retail platforms and a distribution business, raised $22 million in 2022 at a $100 million valuation. So, what’s next? According to CEO and founder Danny Taing, get ready for Bokksu-branded items.

But, I’m getting ahead of myself. Let’s start with a timeline:

• In 2015, Taing founded Bokksu and subsequently launched the company’s flagship Japanese snack subscription service in 2016. Available online only, the monthly box includes premium snacks from largely family-run businesses.

• After proving there was an appetite for Japanese products, Taing expanded the business in 2018 to include Bokksu Boutique (an e-commerce store for premium Japanese lifestyle products) and Bokksu Grocery followed in 2021. The Boutique ships products directly from Japan and carries more craft, small-batch products, while the Grocery is more of an “Asian version of Thrive Market,” Taing said. Compare The Boutique’s $405 Le Creuset Tsumami Sauce pan to the Grocery’s $8.99 Strawberry Kit Kats, and you’ll see what he means.

• Last fall, Bokksu acquired Japan Crate, which sells mass-produced Japanese candy and snacks. By acquiring the company, Bokksu gained not only a new base of subscribers but also distribution in 5,000 retail locations.

While the online businesses are still growing, Taing said, a big part of Bokksu’s current focus is on expanding into brick-and-mortar retail. The channel strategy is playing out in two ways:

• Growing Japan Crate’s distribution in grocery (Giant just added a $19.99 Japan Crate in over 150 stores).

• Distributing Japanese products to conventional groceries who want more mass produced Japanese items like Kit Kats and Ramen.

“What we've been hearing from a lot of our buyers is that…[they want to sell] things like Pocky or KitKats and such, and they just have not been able to because a lot of that [distribution] has been dominated by traditional Asian food import companies in America,” Taing said. “[Many of those importers] don't even speak English very well and definitely do not have a modern sales process.”

Even if grocers can get these items, he added, often they don’t know what to bring in. Bokksu, meanwhile, has that data and can easily curate a custom product assortment that’s plug and play for a retailer. While American shoppers are interested in Japanese items, there’s still a limit, Taing said, sharing that many of the items you might find on Bokksu Boutique are still a bit “too culturally curious.”

“The first step into mass retail is to use the products people already familiar with,” he added. “Generally speaking, it's like American brands with kind of Asian flavors.”

Currently revenue between the two streams is split roughly 50/50.

But neither of these options works in natural and higher-end grocery. So what’s next? Think branded Bokksu food items. Coming in 2025, the line will have a premium focus. One example Taing gave me was a gourmet mochi.

2025 is still a ways off, so why the long runway?

“We're going do it in a way that's not as over committing…it’s a step process where we got retail distribution first via the box, [and] then via being a general Asian food retail distributor,” Taing said. “It [will be] a small part of our business.. [but] the idea is to have more of that competitive moat, so new products and retail would be another way.”

To kick things off, a little shameless self-promotion. This week I spoke with ModernRetail about why cottage cheese continues to draw consumer interest. It’s a breakfast staple for me, so I hope this category continues to grow. I am also publicly declaring my request for Good Culture to bring back its Kalamata Olive flavor. RIP.

And now, let’s get to what you came here for.

Holly Adrien is On the Move

There’s big news coming out of The Kroger Company, and it’s not merger-related. Holly Adrien, the retailer’s Natural and Organics Strategy and Innovation Manager, has departed the Cincinnati-based grocer. Yesterday was her last day at the company.

“I've been honored and fortunate to be part of a great organization with over 18 years at dunnhumby USA, 84.51° and The Kroger Company,” Adrien told me. “I’ve loved working with so many emerging brands as really a retail strategist. I just found a real joy in bringing all the different pieces and components together.”

Adrien has been crucial in keeping the retailer on trend, helping it remain a category leader amidst fierce competition. Her efforts included creating a classification for Kroger stores with higher than average levels of natural and organic shoppers.

“By identifying our top stores for natural organic [shoppers], that helped us internally and externally understand where we could place bets on brands and give them opportunities first.”

In addition to working with Kroger’s category managers and buyers, she also provided advice to thousands of emerging brands.

“Holly’s passion for ensuring shoppers have access to healthy, up-and-coming brands is unmatched, Annie Streit, Chief Commercial Officer at Daily Harvest, told me. “She’s incredibly knowledgeable about current food trends and is a true nurturer and generous supporter of the talent around her. Working with Holly on Daily Harvest’s launch at Kroger was an absolute pleasure.”

A Brief Interlude: At trade shows, I tried to spend every minute walking the show floor. The ONLY person who usually beat me was Holly. She’d even leave Expo East and West on a Sunday so she didn’t miss a moment of Saturday.

Adrien was also passionate about working with the Kroger Health team and integrating food into the retailer’s wellness business.

“Using food as medicine is about proactively encouraging healthy living versus just reacting and treating a problem,” she told me, adding that she feels there’s still robust opportunity for food brands to help solve pressing health needs.

While Adrien is still determining her long-term plans, they will involve “continuing to add value for brands and being a valuable part of the food and beverage industry.” So stay tuned for her next moves. In the meantime, you can connect with her on LinkedIn for strategy and consulting needs (or ask about the time she challenged a UFC fighter to a brawl).

In the meantime, I asked her to share one tip for brands working with retailers in the current economic climate.

“There’s a real opportunity to do a bit more homework and understand where the other side is coming from,” she said. “Every side of the business is challenged to grow right now. The strongest brands are doing more to understand individual retailers and find unique opportunities with each rather than using a one-size-fits-all strategy.”

Can Daily Harvest Play Double Duty as a Supply Chain Partner?

You probably have noticed that frozen food brand Daily Harvest has been on a major expansion kick, adding new retail partners such as Target and Costco and new products like pops. It’s impressive growth for a brand that has only been in retail for roughly a year, but according to CEO Ricky Silver, the growth speaks to just how powerful the brand’s concept and product mix are.

“Our awareness is at a high enough percentage, [while] our categories extend across day parts [and that combined] affords us an opportunity to introduce the brand across multiple areas of the retail landscape all at once,” CEO Ricky Silver told me. “A lot of emerging brands struggle with how to logistically support all of those priorities at once but because of the supply chain we’ve built…and the operational excellence that we've focused on, we're actually in a very strong position to run these, call it ‘experiments,’ in parallel.”

It’s that “operational and supply chain excellence” that I wanted to better understand. And it turns out that while it’s clear that brick-and-mortar retail remains a top priority, there’s also an opportunity for revenue growth behind the scenes. Daily Harvest will always be a food company first and foremost, Silver told me, but it can also be more than just a physical brand.

For example, later this month, the company is bringing online a whole new type of manufacturing: dry ice. If you’ve ever worked with a perishable product, you know how expensive and complicated dry ice can be. (Honestly, as a former frozen food marketer, I got way too excited at this point in my interview with Silver.) For now, the line will serve Daily Harvest’s East Coast operations, but future geographic expansion may be in the cards and eventually offered to other food companies.

“We are exploring ways to leverage our [operational and supply chain know-how] beyond our own business,” Silver said. “A philosophical point of view…that I've had for a long time is that the greatest businesses are the ones that collaborate.”

Solving pain points like this could also help the company add a new revenue stream: acting as a supply chain partner. For emerging brands, Silver said, Daily Harvest could eventually take over some of the painful parts of fulfillment and logistics, such as assisting with delivery to end customers. This would not only add to Daily Harvest’s bottom line, but also help the company fully utilize the scale it’s built.

“There are many smaller brands in the perishable space in particular, that are looking to solve similar problems we are. Values aligned brands that are looking to make it easier to make better choices,” Silver said. “And if we have an asset that helps them bring that to life, why not leverage it?”

Investors get the bigger picture, Silver said, with the company bringing in an additional $11.5 million round of funding earlier this spring. While that cash is largely earmarked for the food business, investors are aware that there are other opportunities on the table.

“We're lucky to have investors that are very enthused about the future and we wanted to have the healthiest balance sheet as possible as we work to expand into these new distribution channels,” Silver said.

Omsom Deal Numbers

You’ve probably already heard that indie darling Omsom was acquired by Asian-food rollup DayDayCook this week. According to a press release, Omsom’s Q1 revenue was up 324% year-over-year at the time of the sale, with its sauce and noodle kits sold in over 2,000 stores nationwide. Often, a press release is where the acquisition details might end, but because DayDayCook is a publicly traded company, with a little research you can find out a whole lot more about this deal. Let’s break it down:

• Omsom was acquired by DDC Omsom, a wholly owned subsidiary of DayDayCook, on June 6. The deal included substantially all the assets of Omsom, including cash, receivables, and inventory.

• In 2023, DayDayCook reported to investors, Omsom had gross revenues of $3.7 million.

• As part of the transaction, DayDayCook agreed to assume certain obligations, including bank debt of approximately $800,000, and promised to provide $3 million in working capital over the three-year period following the closing of the acquisition. One remaining question I have is whether there were other obligations or liabilities on Omsom’s balance sheet that DayDayCook did not assume responsibility for.

• “Subject to achievement of net revenue and net profit goals,” DayDayCook will also pay an “additional purchase price consideration to Omsom” of up to $11.7 million, with 50% of the value in cash and the remaining 50% in company stock. What this amount is “additional” to remains unclear. Note that the capital and stock are being paid to “the company,” so it's unclear who exactly will be taking those shares or getting paid out. Prior investors?

• In conjunction with the Omsom announcement, DayDayCook also informed stockholders that it had terminated a previous agreement to acquire 51% of G.L. Industry, S.p.A, an Italian producer of Asian ready-meals.

• Roughly a year ago, DayDayCook acquired 100% of Cook San Francisco, which operated the Nona Lim brand, for approximately $1.98 million in cash and shares of DayDayCook valued at around $1.3 million.

News Bites:

• Guess Who? This week two snack brands hinted at future partnerships with notable celebs. First, functional food brand Amia teased the upcoming announcement of a new celebrity Co-Founder & Chief Brand Officer. Meanwhile, IQBAR founder Will Nitze also posted that the brand signed a deal with “the most decorated chef in America.” Who are we betting on — Thomas Keller? Interestingly, a day later Nitze shared a second post about his marketing strategy. “There are only so many celebrities, celebrity brands often flame out, and celebrity-brand fit is hard to predictably achieve,” he wrote. “Thus, you're almost certainly better off thinking deeply about how your brand can forge a path to cult status.”

• Lesser Evil Says So Long to Cassava: After a Consumer Report's investigation found high levels of lead in its Lil’ Puffs, snack brand Lesser Evil announced today that it will phase out its use of cassava flour, the ingredient that reportedly caused these issues. The brand maintains that it “regularly test[s] its products to ensure that they are safe and even since the recent news story broke, again tested all of [its] products and have confirmed that everything meets safety standards, including lead levels.”

• Moving on Up: After serving as Danone’s Chief Strategy and Transformation officer for the past three years, Wendy Nunnelley has been promoted to President and GM of Danone’s Plant-Based Business Unit. I am assuming this means she’ll oversee brands including Silk, and not that her team is made up of tofu and pea protein. Nunnelley previously held executive roles at Diageo and The Coca-Cola Company.

• Funday News: Collaborative Fund announced the close of its Fund IV, coming in at $125 million. Founder and Managing Partner Craig Shapiro wrote on LinkedIn that the fund will continue to deploy capital in early stage companies operating at “the intersection of for-profit and for-good.” Within CPG, Collaborative Fund’s current and prior investments include Immi, Magic Spoon, Good Meat, Impossible Foods and Zack’s Mighty.

• Feeling Cheesy: Do you dig dairy and sell cheese (shredded, chunks, slices, snack cheese or spreads)? Give me a call. No, just kidding. While my dairy love knows no bounds, you should, however, shoot Nate Cormack over at Lunds & Byerlys a note. Cormack shared on LinkedIn that the retailer is reviewing its dairy cheese category and looking for new brands/products.

• Getting Saucy: The band is getting back together with the news that Jim Morano has joined premium Italian food brand Carbone Fine Foods as its Chief Sales Officer. Morano knows a thing or two about sauce, as well as about his new boss, CPG guru Eric Skae. The duo held C-Suite roles at Italian food brand Rao’s, with Morano serving as President from August 2016 through December 2019 and Skae as CEO from August 2016 through May 2018.

• Tuna Jams: IYMI….Guys, a tuna fish BBMAK (IYKYK) collab was not on my summer bingo card. So, will there be a tuna snack stand on the band’s upcoming tour?

  bumblebeefoods

  

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Add to Cart: Products To Look Out For

• Several brands revealed new products at this past week’s IDBBA trade show including:

  • Mediterranean food brand Fun Sesames made its debut under its new brand moniker, Tal’s. In addition to its signature Tahini Dip, the brand’s portfolio now includes Original Toum, Cilantro Jalapeño Toum and Baba Ganoush. If you haven’t tried Tal’s flagship tahini sauce, do yourself a favor and pick up a tub. Signed, a tahini addict.

  • Dip Darling Ithaca Hummus previewed a new Black Bean Hummus.

  • Wonder Monday, a producer of low-sugar, high protein desserts, sampled their new cheesecake bites and an updated recipe for their mini cheesecakes. FWIW, I don’t have a sweet tooth and tend to dislike the taste of alt-sugars, but I thought the previous formulation was pretty great. And, if you need an a icebreaker at your first meeting, ask the two Wonder Monday founders how they met.

  • My/Mochi is continuing to expand into baked goods. After seeing traction with its waffle bites, the company highlighted its new Mochi Donut at the show.

  • Cured meats brand La Quercia is bringing back its Spreadable Salami, which is made with spicy nduja. Now sold in a rolled tube format, the product can be merchandised alongside other cured sausage products.

• Is there anything Dolly Parton can’t do? The country superstar has partnered with Acolade Wines to launch Dolly Wines. First up, a chardonnay packaged in a Dolly-esque bottle that features glittery butterflies.

Want to Work in CPG?

• I scream, you scream we all scream for…working at Ben and Jerry’s as a Digital Marketing Manager. Hm, doesn’t roll off the tongue the same way. One benefit of the gig (besides oh working for Ben and Jerry’s): three free pints of ice cream a day!

• Snack brand Skinny Dipped is looking for a Director of Creative Strategy and Community to find “new and interesting ways to bring SkinnyDipped to life.” One thing that stood out to me was a possible nod towards the company’s marketing strategy, with the job post stating candidates will ideally have “6-8 years of marketing experience at disruptive beauty/lifestyle/fashion brand” … not food and beverage. Just more evidence that brands are no longer thinking about themselves as just products, but also platforms.

What can you expect as a (free) subscriber? Think news coverage, executive profiles, category insights, and updates on what I'm observing in stores. Essentially, a look into how an industry insider (and reformed journalist) sniffs out what’s interesting right now. Some weeks, you'll receive longer stories, and other times, lists – for now, the only rule is that there are no rules. So, without further delay, let's take a look down the aisle together.

Inside the Wicked Foods Sale, Meet the “Buyers”

As you may have seen, earlier this week, plant-based food brand Wicked Foods joined the Ahimsa Companies. But who is this plant-based player? Although the company is new to the scene, the people behind it are not, especially to Wicked

At the top is nonprofit Ahimsa Foundation, which is one of the biggest backers of the Ahimsa Companies and, according to IRS filings, appears to be an LP in Unovis, one of Wicked’s original investors. Meanwhile, Ahimsa VC, the venture arm of the foundation was also an investor in Wicked.

Given that I was told by Ahimsa Companies CEO Matt Tullman that all previous shareholders in Wicked have carried over, its not a stretch to say this is looking like a recapitalization. Wicked is now a subsidiary of Ahimsa Companies, Tullman said, with the transaction including Wicked’s licensing rights to the Good Catch line of plant-based seafood (Wicked does not own the brand) and fellow alt-seafood company Current Foods, which was acquired by Wicked in an all-stock transaction in 2023, Speranza previously told me.

Tullman has big plans for the brand and says that there is plenty of opportunity in plant-based, particularly if you focus on business fundamentals. Tullman himself founded and remains CEO at Complement Nutrients, a profitable!!! supplement brand.

“What we're trying to achieve is to bring a very healthy balance sheet at a time of industry contraction,” Tullman said. “There's some great businesses out there that [just] need support. And they've just been kind of pushed down because of the sector dynamics, the broader macroeconomic environment and the cost of capital.”

Read the full scoop to find out more about Ahimsa’s plans for the brand and what other business the plant-based rollup also acquired.

Douglas Yu Goes from Forbes Reporter to Founder

After interviewing hundreds of founders and executives, Forbes reporter and CPG influencer Douglas Yu is following his “passion” and looking to gain first-hand knowledge about running a food business. Last month Yu launched Diamond Brew, a “brewless” coffee. Although the product shares a the same convenience factor as instant coffee, Yu promises the flavor profile is unmatched.

“When I started designing the brand a year ago, I was determined to dissociate Diamond Brew from instant coffee on all fronts – naming, branding, packaging, or experience – and position us as the country’s first Brewless coffee,” Yu said of his strategy. “[I’ve] vowed to create a solution that merges barista quality with instant gratification.”

While Yu isn’t departing journalism just yet, he told me that Diamond Brew is about more than just creating the next multi-million dollar brand.

“I realized an elevated sense of purpose and fulfillment really comes from a long-term commitment to building something versus the instant satisfaction of seeing my byline on a daily basis.”

Read on to find out more details about Diamond Brew, Yu’s journey and why investors have already put $$$ into the brand.

News Bites:

• Fearless Fund Grant Program Blocked: An appeals court this week upheld a preliminary injection against the The Fearless Foundation (the nonprofit arm of investment group The Fearless Fund). The ruling blocks the organization from continuing with The Strivers Grant program, which issues grants to Black women business owners. Last year the Fund was sued by the American Alliance for Equal Rights (AAER), which alleged that the grant program was discriminatory because it excluded non-Black women founders. The Fearless Fund is an investor in food and beverage businesses including Air Protein, Bitsy’s, Fresh Bellies, Partake Foods and Slutty Vegan.

  

• Making mush work for you: Overnight oats brand MUSH is expanding into kids’ pouches. While they’ll now face off against larger incumbents in the kids’ refrigerated set, the format offers a new value proposition for parents and can carry a higher price point. Plus, any off-putting texture is no longer is an issue; kids are used to well, mushy, foods in pouches.

• Hello Mrs President: Two category leaders have hired presidents to help run the show. At condiment company Fly By Jing Ami Desai Mathur, the former Chief Commercial offering for Untamed Brands and Jeni’s, has been hired as President. At Jeni’s Mathur saw the ice cream business grow from $30 million to $150 million over five years. Meanwhile, Katie Eshuys has been promoted to President of That’s It. Eshuys has worked at the snack brand for roughly four and a half years, most recently holding the role of Chief Sales and Commercial Officer.

• A New Strategy for Good Eggs? California e-commerce retailer Good Eggs has always prided itself in bringing on local, emerging, and unique brands. But has the company decided to expand its horizons even further? This week a LinkedIn post noted the company “[is] bringing in everyday grocery brands [customers have] been asking for” in an attempt to become a “one-stop-shop.” Brands featured in the post included Near East grain blends, La Croix seltzer, and Alexia frozen french fries.

• The Perfect Day Winner: Of all the companies who have used precision fermentation provider Perfect Day’s animal-free dairy protein, Bored Cow has perhaps achieved the greatest success. The brand shared that it’s expanding into 2000 new stores, is now available in all 50 states, and is rolling out four packs. Meanwhile, other Perfect Day providers including Woo Bar, BetterLand Milk, CO2COA, Brave Robot, Modern Kitchen, and Natreve’s MOOLESS skus all seem to have gone by the wayside.

• A Safer Cocktail Option: Jinx Drinx has launched in Sin City. Sure there are other adult “Capri Sun” options, but Jinx’s packaging is unique, with a straw sealed into the bag. The goal: mitigate drink tampering or DFSA (drink & drug-facilitated sexual assault. For on-premise, it’s an interesting play.

• Big Gulp: Ironically, Capri Sun just announced a multi-serve bottle of its fruit punch, an innovation that will allow parent company Kraft Heinz to capitalize on the growing consumer love for club stores. Equivalent to 32 of its pouches, the two-pack of 96 oz bottles is now available in Costco, Sam’s Clubs, and BJ's. For those wondering, drinking both bottles would be the equivalent of 240 grams of sugar (Don’t try this at home).

Other Things to (Shelf) Talk About:

• Can Nestle make ‘Vital’ Happen? You probably know by now that Nestle plans to launch Vital Pursuit, a frozen food line for GLP-1 patients. But what’s up with the name? Remember: In 2022 Nestle Health Sciences acquired collagen company Vital Proteins, which also markets products under the Vital Performance and Vital Proteins Professional sub-brands. When I asked Nestle reps if Vital Pursuit and Vital Proteins had any connection, the answer was no. So what’s so vital about being vital?

• I may not call it “one of the greatest foods ever invented,” but I’m definitely team hot dog. Who’s tried the new Oscar Meyer Stuffed dogs? I need a report.

• In my humble opinion, Mug Root Beer walked so Dr Pepper and pickles could run. Yes, another hot dog reference.

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Looking for a new gig?

• Want to manage social media for one of the hottest brands on TikTok and Instagram? Beverage brand Olipop is hiring a Director of Social Media.

• Speaking of social media, retail guru Cameron Gould-Saltman continues to build out his team over at TikTok Shop and is searching for food category managers. One of his latest pickups: Jem Wilner, a former category manager for Imperfect Foods

• Cereal CPG folks check out Magic Spoon, which is hiring for a variety of roles.

Add to Cart: Products To Look Out For

• Marco Sweets and Spices appears to be making a now familiar jump from pints to novelties with what looks like a forthcoming ice cream sandwich.

• Emerging brand Electorbrew has launched Vanilla and Salted Caramel RTD offerings of its “hydrating coffee”. The brand previously only sold ground coffee

• Top of the Morning, the coffee and Tea brand co-founded by influencer Jacksepticeye, is moving into a new category with the debut of Strawberry and Chocolate Matcha.

• Bowl Cut, which still ranks as having one of my favorite April Food’s Day products, is moving into squeeze bottles with the launch of their Classic & Spicy Lemongrass Stir Fry sauces.

• This is not a test: Altoid Sours are headed back to stores. I’m trying not to feel old given the product’s new name of Altoid Retro Sours. While the OG product has been off shelves for years, you can still buy an empty tin on ebay for $47.

• Zenb has launched a line of ramen. Although not heavily publicized, Zenb is owned by Mizkan, the makers of Bertolli and Ragu.

• Did you miss the ever-popular (at least with chefs) ramp season? I’m digging Jersey Bonfire’s new Ramped Up hot sauce — at $14.99 it’s a heck of a lot cheaper than the $55 powdered wild ramp seasoning I’ve always wondered about…

What Makes Graza Great?

Olive oil brand Graza is known for its sexy squeeze bottles, but with some consumers pushing back on plastic, the brand felt pressure to find alternative packaging options, and last month released pop-top cans of its olive oil.

But here’s the rub. Graza’s bottle has been one of its greatest marketing tools; customers love Instagramming it. But a plastic-adverse shopper will likely decant the new can into a random glass bottle. If you use Graza and no one sees it, does it make a sound (on social)? Meanwhile, plenty of customers were already refilling their Graza bottles with ::cough:: Kirkland ::cough:: oil to save some $$$. That said, when asked about the launch, Andrew Benin, Graza Co-founder & CEO, said the success of the cans will prove the brand is more than just a pretty face.

“We are not necessarily working to change the perception that our truest innovation is our squeeze bottle. If that’s what is most compelling to some shoppers, so be it. What we do want more folks to understand is that there is incredibly fresh and tasty olive oil inside said squeeze bottle….[We’ve found] the EVOO inside is the biggest reason people keep coming back to Graza.”

What Are Your Thoughts?

Talk to Me:

It’s not just your cereal box getting smaller: New Hope is slimming down Natural Product’s Expo West, dropping four hours from Friday and cutting Saturday’s hours entirely. Additionally, the North Hall and the 3rd floor will no longer be exclusively open on Wednesday, with all halls open every day. Though this means that brands in the North Hall will now have more competition for attendees on Wednesday, with a smaller crowd, they may have better opportunities to engage in conversations with them. One add: buyer-only hours from 9-10 AM on Thursday and Friday. So what say you?

After years of interviewing CPG executives, journalist Douglas Yu knows a thing or two about how to brew up a recipe for success. Now, he’s putting those skills to work, launching coffee company Diamond Brew. 

So read on to find out what’s the deal with this sparkly new brand and why investors (think GNC CEO Michael Costello) are already putting capital into the company.

A Diamond Experience

You’ve likely had Folgers instant crystals at some point in your life. Diamond Brew is decidedly not that. While the “carefully sourced” mix of coffee beans from Guatemala, Colombia, and Sumatra, are freeze-dried, the similarities to instant (aka soluble) coffee end there. 

According to Yu, instant coffee is produced by “a spray-drying process that essentially evaporates coffee liquid with extremely hot dry air to create fine powder.” The result, he noted, is great when you’re in a time crunch, but ultimately leaves consumers with a cup of joe that’s less aromatic and flavorful, not to mention has lower caffeine levels.

While he won’t give all his secrets away, Yu said his manufacturer utilizes a “unique process” for Diamond Brew, which results in a cup of coffee with a nuanced flavor profile. A Diamond Brew espresso shot, he said, tastes and looks freshly brewed, complete with a white crema on top. 

Sounds fancy right? While Diamond Crystal Brew has an MSRP of $29.88 for 12 capsules, Yu noted that the price point is cheaper than heading to your local Starbucks (let alone La Colombe) for an Americano.

An Instant Facelift

Certainly there’s plenty of coffee companies. In craft instant alone we’ve got Alpine Start, Blue Bottle, Verve, Four Sigmatic, and many more. So why head into an established category? 

According to Yu, during his initial research, several investors mentioned the appeal of powdered products, owing to the form factor’s shelf stability, lightweight shipping, and high margins. There are also plenty of existing manufacturing capabilities available, allowing for easier scalability. Wandering down grocery aisles brought about a “eureka” moment that he should focus on instant coffee, a category Yu said could “use a facelift” and offered him “enough room…to be a disruptor.” Plus, (shhh) Yu admitted, he grew up drinking Nescafe 3 In 1 Instant Coffee, so the product type holds a soft spot for him. 

Further research revealed a gap in the market, he said. For most existing instant brands the focus is on convenience or functionality, rather than quality or taste. But by focusing on coffee first and foremost, with powder simply a delivery mechanism, Yu believes that he can cater to both coffee connoisseurs and the next generation of coffee drinkers. 

“I have certainly noticed an increasing number of convenient coffee beverages powered by both emerging and legacy companies entering the market, from coffee concentrates to more premium instant coffee,” he told me. “This trend is largely driven by younger consumers, Gen Z in particular, who are more concerned with efficiency and customization.” 

The Itch to Create

The biggest question I had for Yu was why on earth he’d want to start a food brand after seeing how challenging the endeavor could be. The answer: passion. 

“The more I learn about these founders and executives over the years, the more I feel like I’m stuck in a rut – while it may take three hours for me to interview, transcribe, and write up a company announcement, it could take years for an entrepreneur to make that announcement possible,” Yu said. “That’s when I realized an elevated sense of purpose and fulfillment really comes from a long-term commitment to building something versus the instant satisfaction of seeing my byline on a daily basis.” 

Still, Yu said his work as a journalist has been invaluable, offering the opportunity to determine what type of leader he wants to be and where he may face pitfalls. 

“With market data and tools so readily available these days, it has become easier than ever to identify a white-space opportunity and come up with another ‘disruptor’ brand…certain founders [have an] overly mathematical approach to building a business,” Yu said. “I promised myself to ditch this playbook and build a new one by leveraging common sense as an everyday consumer, embracing uncertainties, and iterating continuously based on real feedback.”