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Please see below for a listing of what the North Point Food & Beverage Team has been tracking this week. We hope that you find the content insightful and a nice way to summarize the most noteworthy Food & Beverage events of the week.
Have a nice weekend!
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Glen Clarke
Head of Food & Beverage
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Western Smokehouse Partners acquires Idaho snack company. | - Meat snack producer Western Smokehouse Partners confirmed on May 17 that it acquired Golden Valley Natural, a fellow meat snack company based out of Shelley, Idaho.
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Forward Consumer Partners acquires 50% stake in Xochitl. | - Forward Consumer Partners, a private investment firm focused on branded consumer businesses, has acquired a 50% stake in Xochitl, an enduring brand specializing in authentic, premium tortilla chips and salsas.
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Olympus Partners-backed Rise Baking launches sale, sources say. | - Rise Baking Company has sent out books to prospective suitors as it evaluates a sale, five sources familiar with the situation said.
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Encore Consumer Capital acquires Chalet Desserts. | - Encore Consumer Capital, a private equity firm that invests exclusively in leading consumer products companies, announced the acquisition of Chalet Desserts, in partnership with founder and CEO Dave Laukat and the existing management team
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Uncle Nearest (Strand Equity Partners, Still Capital Partners) acquires Square One Organic Spirits. | - Uncle Nearest, the top-selling Black-owned spirit company in the world, has acquired Square One Organic Spirits, based in Charlottesville, Virginia.
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Mucci Farms acquires greenhouse grower partner. | - Mucci Farms an industry-leading grower and marketer of fresh fruits and vegetables, announces its acquisition of Hacienda North Farms, a 159-acre state-of-the-art greenhouse facility located in Coatsworth, Ontario.
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KPS to acquire Tate & Lyle’s ownership interest in Primient. | - KPS Capital Partners has entered into a definitive purchase agreement to acquire Tate & Lyle’s remaining ownership interest of 49.7% in Primient for $350m.
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Peak Rock launches sale of Turkey Hill Dairy, sources say. | - Peak Rock Capital-backed Turkey Hill Dairy has sent out books to prospective suitors, according to knowledgeable sources.
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FOOD AND BEVERAGE MUSINGS | |
Tetra Pak makes U.S. push to shift more canned foods to cartons. |
- Tetra Pak is launching its first trial facility in North America for its Recart carton packaging, aiming to shift more canned foods to cartons in the U.S. market.
- This move targets various food categories traditionally packaged in cans, including beans, fruits, pet food, sauces, and prepared foods.
- The Recart cartons offer potential sustainability benefits such as efficient space-saving design, easily reclosable, and reduced metal usage compared to cans.
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Saputo announces CEO transition. |
- Lino A. Saputo, CEO of Saputo Inc., will transition to the role of Executive Chair of the Board, while President and COO Carl Colizza will become the new CEO, effective August 9, 2024.
- Carl Colizza, who has been with Saputo since 1998, has held various leadership positions within the company, demonstrating a strong commitment to its values and culture.
- The transition is part of Saputo’s plan for executive leadership succession, aiming to continue driving value creation and advancing the company's growth and innovation.
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Popular maker of sriracha sauce is temporarily halting production. Here's why. |
- Huy Fung Foods, the maker of popular sriracha sauce, is temporarily halting production due to a shortage of red jalapeño chili peppers, the main ingredient in their sauce.
- The company stated that the peppers are “too green,” affecting the color of the product, and production will resume after Labor Day when the next chili season starts.
- This is not the first time sriracha supplies have been threatened, with previous challenges related to crop failures. Some attribute the shortage to changing climate conditions affecting pepper production.
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Food prices prompting a ‘consumer revolution’ through intricate homemade dishes. |
- Food prices are prompting a “consumer revolution” towards homemade dishes, driven by inflation and higher costs at both grocery stores and restaurants.
- Consumers are turning to DIY recipes and purchasing trends influenced by social media to spice up their food offerings at home while cutting costs.
- Food companies have opportunities to capitalize on viral moments through social media, as seen with Kraft Heinz promoting new products inspired by social media trends.
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5 attention-grabbing products from the 2024 Sweets & Snacks Expo. |
- Neptune Snacks’ Sustainable Fish Jerky: Neptune Snacks offers fish jerky made from US wild-caught fish. High in protein and Omega-3 fatty acids, the jerky comes in various flavors and appeals to consumers seeking sustainable seafood options.
- Nomad Popcorn: Revitalizing the popcorn space, Nomad offers food-inspired flavors like ramen and chimichurri seasoning. With a focus on bold flavors and unique offerings, Nomad aims to break new ground in the popcorn category.
- Maax Brands’ Energy Gum: Providing an alternative to traditional energy drinks, Maax Brands offers gum with caffeine equivalent to one and a quarter cups of coffee per piece, targeting consumers seeking a convenient and flavorful energy boost.
- Brain Smack Sour Candy: Brain Smack stands out in the sour candy market with its innovative flavor profiles and unique branding.
- Pickle with Chamoy: Combining the popularity of pickles with the tangy flavor of chamoy, Kids Kan Sa De Cv offers a range of products including sauce, paste, and chili seasoning.
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Target to lower prices on 5K items. |
- Target plans to lower prices on 5,000 popular items across grocery, household, and health and beauty categories.
- The initiative responds to consumer demand for more affordable options amidst inflation and economic uncertainty.
- This move follows Target’s introduction of various initiatives, including Dealworthy and Target Circle 360 loyalty program, to attract and retain consumers.
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On Special: Chicken sales cook as prices fall. |
- Chicken sales are surging as price-sensitive shoppers seek affordable protein options amidst inflation.
- Prices for fresh and frozen chicken decreased by over 1% from March to April, with processed chicken seeing an even more significant reduction.
- Grocers are capitalizing on this trend by offering discounted chicken in prepared food sections, loyalty rewards for rotisserie chickens, and meal kit options featuring chicken entrees.
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Nestle introduces weight loss brand. |
- Nestle introduces Vital Pursuit, a new brand aimed at supporting GLP-1 weight loss medication users and consumers focused on weight management.
- Vital Pursuit meals will offer high protein, fiber, and essential nutrients, with portion-aligned servings and gluten-free options available.
- Nestle aims to address the needs of consumers in this emerging category by leveraging its understanding of nutritional science and consumer behaviors.
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Iowa governor signs law for requirements on lab-grown meat. |
- Iowa Governor Kim Reynolds signed a law prohibiting the misbranding of certain food products, including lab-grown meat, on May 15.
- The law requires plant-based and lab-grown products sold in Iowa to have labels clearly stating terms like “lab-grown,” “fake,” “meatless,” “imitation,” or “vegan” starting July 1.
- Food processors and restaurants could face civil penalties between $500 and $10,000 per offense for non-compliance with the new labeling requirements.
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Retailers are Innovating around Growth in Private Label | Target wants to be a ‘big snacking and food destination’ this summer. |
- Target is enhancing its grocery private brands, Favorite Day and Good & Gather, with over 125 new items to become a major snacking and food destination this summer.
- The retailer is leveraging its private brands to strategically address pricing gaps in its assortment, with recent launches like Dealworthy already showing positive results in driving customer engagement and sales.
- Target is focusing on value promotion and bolstering its loyalty program to adapt to changing consumer behaviors, including price reductions on thousands of items and enhancements to its Target Circle platform, which saw significant growth in membership and digital sales.
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Lidl to revamp meat and poultry department. |
- Lidl U.S. is planning to revamp its meat department and launch a new private label for packaged meats in time for Independence Day as part of its efforts to attract customers and improve its performance in the U.S. grocery market.
- The company plans to introduce a new private label for packaged meats alongside these changes, seeking to offer a more tailored assortment that resonates with American shoppers.
- These efforts coincide with Lidl's broader strategy to reinvigorate its approach to the U.S. grocery market, focusing on delivering a high-performing retail experience consistent with consumer demands.
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In Today’s Market, What Defines Value? |
- Inflation continues to impact consumers, with food price inflation rising 2.2% and food-away-from-home prices leaping 4.1%.
- Value in today’s market is not solely defined by price but also by factors like quality, convenience, and personalization.
- Retailers and grocers are adapting to consumer needs by focusing on personal connections, offering relevant deals, and understanding consumers’ motivations and preferences.
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- Scientists Explain Why Beer Tastes Better Cold — Food&Wine
- Airheads Underwater Vending Machines Take ‘Fun’ Instead of Cash — CandyUSA
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