Let's Chat Acquisitions: Conagra's Meat Stick Buy and Good Eggs Sells
Plus: You can now use FSA dollars for condiments; The Debut of Freeze-Dried Breast Milk and Will Feastables New Offering be a Treat?
Hi Everyone!
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.”
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.