Stouffer’s debuts first shelf-stable mac and cheese

STOUFFER’s is moving beyond the frozen aisle with a new boxed mac and cheese. STOUFFER’s Supreme Shells & Cheese offers 10% more cheese sauce than the leading shelf-stable shells and cheese product, to deliver a more cheese forward flavor profile, the company states. 

STOUFFER’s Supreme Shells & Cheese is made with dry pasta and a liquid cheese sauce and will be offered in two flavor varieties, Cheddar Cheese and Three Cheese, with additional innovations to rollout in 2025 and beyond.

  • Cheddar Cheese: A bold take on classic comfort, this high-quality, supremely creamy cheddar cheese variety will become your pantry’s new best friend.
  • Three Cheese: Enjoy the perfectly cheesy sauce trifecta of Wisconsin white cheddar, gouda and parmesan blended to create an elevated taste experience for cheese lovers.

“Americans love their mac and cheese, and so do we! We saw an opportunity to expand beyond our fan-favorite frozen options by introducing STOUFFER’s Supreme Shells & Cheese to provide a more cheese forward flavor experience than what’s currently available in the aisle,” said Megan McLaughlin, Senior Brand Manager for STOUFFER’S. “We can’t wait for shoppers to try this new product and taste the SUPREME difference.”

Look for STOUFFER’S Supreme Shells & Cheese on shelves in the brand’s classic red color with new gold accents on the box. The new mac and cheese will be available on Amazon, and at select national retailers beginning this month for an MSRP of $3.99 per 12 oz. box with continued rollout in 2025 (prices may vary by retailer).




Posted on Categories Dairy

Drought jeopardises Paraguay’s grain export flow

Most of Paraguay’s grain is exported via the Paraná Paraguay Hydroway. Photo: Cargill Paraguay

THE worsening drought in parts of South America, particularly Brazil, has resulted in record-low water levels in a number of the region’s major waterways, such as the Paraguay and Paraná rivers. This significant environmental issue is causing widespread disruptions to river navigation, crucial for the transportation of agricultural produce, with the impact affecting not only local industries but also the travel and tourism sectors.

The Paraguay River set a new record low on Monday of last week, with the water level dropping to 89cm below the “zero” benchmark on the meter at the main port in Asuncion, Paraguay’s capital. The National Meteorology and Hydrology Directorate confirmed that it was the lowest level recorded at the port in 120 years, breaking the previous record seasonal low, which occurred almost three years ago, in October 2021.

Originating in Brazil, the Paraguay-Paraná waterway system runs 3400km through Argentina, Bolivia, Brazil, Paraguay and Uruguay and into the Atlantic Ocean via the Rio de la Plata estuary. The system rises in the Brazilian highlands of Mato Grosso, Goiás and Minas Gerais and flows southward in two sections – the Paraguay and Paraná. The two rivers unite in the south of Brazil on the Argentina-Paraguay border to form the Paraná River proper.

Although landlocked, Paraguay’s location at the confluence of the Paraguay and Parana Rivers positions it quite strategically along several of the continent’s principal trade routes. Paraguay is one of the world’s leading exporters of agricultural commodities and relies on the system to move around 80 percent of its international trade. This includes grain exports such as corn and soybeans, the latter of which it is the world’s third biggest exporter.

River traffic slows

The reduced water levels are hampering the navigation of river barges and small ships, causing significant delays and logistics challenges for commercial trade. This disruption in the marine transport sector, vital for the local economy, could impact global supply chains and international trade. The Paraguayan Oilseed and Grain Crushing Chamber reported the disruption was affecting grain-export logistics, although the full impact has been somewhat mitigated as this season’s peak export period has now passed. According to Paraguay’s fishing union, the low river flows have also left 1600 fishermen unemployed, with boats left stranded on dry riverbanks.

With no immediate relief in sight and long-range weather forecasts suggesting minimal run-off rainfall over the next few months, industry officials anticipate significant financial losses that could run into the hundreds of millions of dollars due to slower or lost trade, higher freight rates and elevated import costs. Lower than average precipitation is expected in the last quarter of the year due to the developing La Nina weather phenomenon, which normally brings drier and cooler conditions in Paraguay and Argentina, although it usually signals wetter weather in the north of Brazil.

The drying of the Paraguay River underscores the broader global trend of more frequent and intense drought cycles, exacerbated by factors such as widespread deforestation for agricultural production and poor water management and governance practices.

Neighbouring countries affected

According to Paraguay’s main shipping association, river traffic disruptions have spread across neighbouring countries in the past 10 days, with over half the waterway’s shipping capacity halted or delayed. Limited cargo can be loaded on barges and ships to avoid the risk of grounding in shallow sections of the river. This has been costly for Brazil, which exports iron ore along the river, and Bolivia, which is now forced to reroute incoming fuel shipments overland. Paraguay also relies on the river for a significant proportion of its electricity supplies, with the probability of supply cuts increasing with every rainless day.

Brazil is currently enduring its worst drought since nationwide measurements began over seven decades ago.  Almost 60pc of the country is under moderate, extreme or severe moisture stress, an area of roughly five million square kilometres, or twice the size of Western Australia. It is reportedly the most intense and widespread drought in Brazil’s history, and for the first time ever, stretches from the northernmost reaches to the country’s far south-east. Wildfires are raging in the Amazon basin and the forests along Paraguay’s northern border. The Madeira River, one of the Amazon River’s main tributaries, also registered a new record low last week at the north-western city of Tabatinga, which lies on the triple border with Peru and Columbia.

Meanwhile, on the lower Paraná River around Rosario in Argentina, the low water flows are also creating havoc for loaded vessels departing the huge agricultural export hub. Sailing along the Paraná Waterway was halted for 12 hours on Saturday week ago between San Nicolás and Ramallo when the Croatian-flagged bulk carrier AP Revelin ran aground, hindering traffic in both directions. When its trip was cut short, the 180m-long vessel was sailing downriver with 32,000 tonnes of soybeans bound for Turkiye.  A navigation disaster was averted, with the stranded vessel eventually refloated just 12 hours later with tugboat assistance. However, the AP Revelin had sailed from its loadport with a draft of 9.54m, well above the 8.88m maximum set by the Argentinian Coast Guard due to the shallower shipping lane. At least half a dozen other vessels loaded with agricultural produce scheduled for departure early last week had sailing drafts exceeding 10m, rendering them powerless to navigate the waters to the Rio de la Plata until river flows improve.

Adding to the current navigation woes is a delay in the dredging activities along the Parana River downstream of Rosario. This essential to ensure efficient and uninterrupted, year-round flow of import and export traffic, especially when the water levels in the system are low. The company doing the work claims the Argentinian Government owes them millions of dollars for work already completed.




Posted on Categories Crops

President Biden proclaims National Farm Safety and Health Week

President Joe Biden has announced in an official statement the proclamation of National Farm Safety and Health Week from September 15 through September 21, 2024. 

Biden called upon America’s farmers, ranchers, and agriculture-related institutions, organizations, and businesses to reaffirm a dedication to farm safety and health. He also urged all Americans to express appreciation and gratitude to local farmers, farmworkers, and ranchers for their tireless service to the Nation.

The letter is presented below: 

America’s farmers, farmworkers, and ranchers work around the clock to nourish our Nation and power our economy, allowing us to feed our communities and compete in markets worldwide.  They also steward lands and provide meaningful jobs in our rural and Tribal communities.  During National Farm Safety and Health Week, we recognize the incredible contributions of everyone working on farms, and we recommit to improving their safety and well-being. 

Our Nation’s farms are a source of prosperity, but working on them can be exhausting and hazardous.  The agriculture sector is one of America’s most dangerous industries.  Climate change and intensifying extreme heat puts the lives of agricultural workers at risk and decrease productivity and profits.  Uncertainty in the industry heightens stress and takes a toll on our farmworkers’ mental health. Unfortunately, many rural communities lack accessible health care, as nearly 200 rural hospitals have closed in the past 20 years.

I believe health care should be a right, not a privilege.  To that end, my Administration is investing in rural healthcare services, training the next generation of rural healthcare providers, and expanding mental health resources in rural communities.  We established the Rural Emergency Hospital Designation to make it easier for struggling hospitals to stay open and help ensure that rural communities have access to emergency services.  With $500 million from my American Rescue Plan and $65 billion from my Bipartisan Infrastructure Law, we are making it easier for people in rural areas to access health care, including telehealth services and affordable mental health care.  We launched 988 — the Suicide and Crisis Lifeline — so that anyone dealing with a crisis can connect to trained counselors by phone, text, or chat.  We also finalized a rule that strengthens mental health parity by requiring health insurers to cover mental health care just as they do physical health care. We added more than 140 Certified Community Behavioral Health Clinics across the Nation, which provide mental health and crisis services to anyone in need, regardless of their ability to pay.

I have maintained my commitment to be the most pro-labor and pro-worker President in history by making sure our workers are safe and secure.  Under my leadership and the leadership of Vice President Kamala Harris, the Department of Labor proposed the Nation’s first-ever Federal safety standard for excessive heat in the workplace, which would require employers to implement rest breaks, provide access to shade and water, and develop a plan to respond to heat illness.  The Department of Labor also finalized a Farmworker Protection Rule to strengthen protections for temporary agricultural workers to ensure all farmworkers in the United States are treated fairly and have safe work environments.

My Administration is providing farms with the resources they need to grow and thrive.  Through the Farm Labor Stabilization and Protection Pilot Program, the Department of Agriculture awarded $50 million from my American Rescue Plan to agricultural employers, many of which were small and mid-sized farms, helping ensure they can hire and retain the workers they need to be competitive while improving labor standards for workers.  We are working to extend crop insurance coverage to give financial security to farmers who practice double cropping.  We have made $900 million available to boost fertilizer production for farms, and I signed an Executive Order to increase competition and make sure that family farms are on a level playing field with corporate farms. 

During National Farm Safety and Health Week, we honor farmers, farmworkers, and ranchers for putting food on our tables, powering our economy, and supporting our communities.  And we recommit to ensuring they have the resources they need to continue this work and live full, healthy lives. 

NOW, THEREFORE, I, JOSEPH R. BIDEN JR., President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim September 15 through September 21, 2024, as National Farm Safety and Health Week.  I call upon the people of the United States — including America’s farmers; ranchers; and agriculture-related institutions, organizations, and businesses — to reaffirm a dedication to farm safety and health.  I also urge all Americans to express appreciation and gratitude to our farmers, farmworkers, and ranchers for their tireless service to our Nation.

IN WITNESS WHEREOF, I have hereunto set my hand this thirteenth day of September, in the year of our Lord two thousand twenty-four, and of the Independence of the United States of America the two hundred and forty-ninth.

 




Posted on Categories Produce

Ambassador connects with Minnesota roots

Event sponsorships allow brands to gain consumer visibility and promote their mission while connecting with local communities. For hot dog brand Ambassador, engaging with the Minnesota community and staying connected to community roots has always been essential.

For 2024, the brand connected with its local community through the 50th anniversary of James J. Hill Days, a community tradition. Rich Carlson, Ambassador senior brand manager, said the brand wanted to connect with the community during grilling season, Ambassador’s peak time of year. “The goal was to collaborate with a distinctly Minnesotan event that unites people through local traditions, enhancing brand awareness and relevance among consumers,” Carlson said.

Sept. 6-8, 2024, was the 50th Annual James J. Hill Days, where Ambassador Hot Dogs served as the official hot dog sponsor. Courtesy of Ambassador Hot Dogs


The James J. Hill Days partnership was just one of three Minnesota-based partnerships for summer 2024 – the Ambassador brand served as the “official hot dog” for not only James J. Hill Days, but also the 12th Annual GrillFest in St. Paul, as well as the 90th LumberJack Days in Stillwater. All three of the summer events focused on community engagement and connection, which aligned with Ambassador’s event partnership goals.

“Ambassador entered this summer with a clear goal in mind – to partner with local events and traditions, thereby driving awareness and enhancing relevance for the brand among consumers,” Carlson said. “By aligning with these events, Ambassador not only reinforced trust in the community but also strengthened connections with consumers who value tradition and quality.”

Carlson noted that Ambassador’s ties to the Minnesota community date back to 1932, when the brand first began serving Scandinavian-style natural-casing hot dogs in the state. Now, 92 years later, Ambassador continues its commitment to serving quality hand-crafted products to its consumers. “The unwavering commitment to quality, craftsmanship, and community allows the brand to grow while maintaining its Minnesota roots,” Carlson said.

The Ambassador brand continues to prioritize its roots while raising consumer awareness through its newest product innovation: Skinless Franks. Though Ambassador knows the hot dog “snap” is part of the Ambassador eating experience, the brand wanted to cater to a larger variety of consumers, meeting demands for those who want a more tender hot dog. “They are also ‘bun-length,’ ensuring a more satisfying experience for consumers,” Carlson said.

Looking to the next grilling season, Ambassador plans to build upon its community-building initiatives and aims to further increase consumer awareness.




Posted on Categories Meat

Hiland Dairy to expand Texas facility

SPRINGFIELD, MO. — Hiland Dairy Foods Co. revealed it plans to expand its facility in Tyler, Texas, adding 90,000 square feet to the plant.

The company said the project calls for areas dedicated to state-of-the-art processing, filling, casing, palletizing, load-out and storage, as well as a new laboratory.

The farmer-owned dairy processor anticipates the project to be completed by the first quarter of 2026.

Hiland Dairy’s leadership described expanding as a response to growing demand in Texas for the company’s dairy products, but president Rick Beaman said the project also shows its commitment to the people who live and work in Tyler, Texas.

“We deeply appreciate the support we’ve received from the city, and we’re excited to continue providing good-paying, stable jobs for this community for years to come,” Rick Beaman said.

Barry Beaman, general manager of the plant, called the site the heart of the company’s regional operations.

“The project will provide numerous employment opportunities, contributing to the economic stability of Tyler and its surrounding areas,” Barry Beaman said.

The company shared that Big-D Construction, Salt Lake City, is serving as the general contractor for the project at the Tyler plant, which Hiland Dairy took over in 2017.

Hiland Dairy said it will have a groundbreaking ceremony for the expansion on Sept. 24.




Food and drink excluded from Commission’s competitiveness report

In the 328-page report, food is mentioned seven times and only as part of a wider section on Europe’s largest polluting manufacturing industries.

The report aims to counter Europe’s worry over “slowing growth since the start of the century” and acknowledges multiple strategies since 2000 had been raised to kickstart significant growth, but came to nothing.

“A wide gap in GDP has opened up between the EU and US, driven mainly by a more pronounced slowdown in productivity growth in Europe,” said the report.

“Europe’s households have paid the price in foregone living standards. On per capita basis, real disposable income has grown almost twice as much as in the US as in the EU since 2000.”

The three main areas of European growth

Three main areas for growth are targeted by the report, including closing the innovation gap between the US and China, focus on advanced technologies.

A second area targeted for capital growth is a joint European Union-wide plan for decarbonisation and competitiveness.

In a third area, the report highlights a need to increase security and reduce dependencies, specifically around critical raw materials and considering geopolitical instability.

Standing in the way of progress was a lack of Europe-wide focus, common resources wastage and poor coordination between member states.

However, despite food and beverage leading the way in areas such as ag-tech, AI use along with being the largest employer in the EU, opportunities to grow the sector were not outlined.

“While the report proposes many valid recipes for success, it has in short-sight left out the main ingredient – Europe’s largest manufacturing industry, the food and drink sector,” said a FoodDrinkEurope spokesperson.

“If Europe’s largest manufacturing industry is only mentioned in passing as part of a wider chapter on energy-intensive industries, how reflective is this report of Europe’s industrial reality?

The outsized role of European food and drink

“We hope the outsized role of the food and drink industry will be considered in future work relating to European industrial competitiveness, especially as it pertains to feeding society, food security, and driving sustainable growth.”

FoodNavigator approached the European Commission for comment and is awaiting a response.

This follows a UK report that claimed food and drink manufacturers there were reluctant to invest in and explore digitalisation and AI as a result of squeezed margins​.

Meanwhile, the EC’s plan to implement the European Union Deforestation Regulation came under fresh scrutiny as industry leaders again called for a delay and phased rollout​.

Critics levelled-up warnings of disaster should the EC continue to go ahead with EUDR, citing a lack of preparedness, a poor understanding and clarity of expectations and underwhelming communication between policy makers and industry.




8 Leading Organizations Form Collaboration To Tackle Food Industry’s FSMA Rule 204 Challenges


Unified Approach Aims To Improve Food Safety and Meet Traceability Rule Requirements

Ewing, NJ – Eight prominent food industry organizations have united to form the “ Food Industry FSMA 204 Collaboration” to enhance industry-wide awareness of the U.S. Food and Drug Administration’s (U.S. FDA’s) Food Traceability Rule, which implements Section 204(d) of the U.S. FDA Food Safety Modernization Act (FSMA). Participating organizations include: Association of Food and Drug Officials (AFDO), FMI – The Food Industry Association (FMI), GS1 US, Institute of Food Technologists (IFT), International Foodservice Distributors Association (IFDA), International Foodservice Manufacturers Association (IFMA), International Fresh Produce Association (IFPA) and National Association of State Departments of Agriculture (NASDA).

The Collaboration will share clear, concise messaging and resources that enable industry to take action in preparing for FSMA Rule 204, which was published in November 2022. FSMA Rule 204 mandates a comprehensive tracking and tracing system for certain high-risk foods listed on the U.S. FDA’s Food Traceability List (FTL), including fresh produce and leafy greens, deli salads, certain types of seafood and more. The Collaboration will provide a forum where business and government officials can come together to educate industry and potentially help ease the burden of compliance. 

Recognizing the imperative for a collective response, the Collaboration is founded on core principles, including operational effectiveness through collaboration, traceability for enhanced food safety, standardized data collection, and widespread training and education initiatives. The Collaboration prioritizes the enhancement of awareness and understanding of emerging traceability technologies to help ensure the safety and integrity of the food supply chain. Through united efforts, the Collaboration promotes acceleration of industry-wide compliance with FSMA Rule 204. 

For more information about the Food Industry FSMA 204 Collaboration and to access combined resources and future educational opportunities from all participating organizations, visit Food Industry FSMA 204 Collaboration

Food Industry Leaders Demonstrate Support 

“As state and local agencies, AFDO members are often on the front lines, receiving critical information during foodborne illness outbreaks,” said Steven Mandernach, Executive Director, AFDO. “We are committed to collaborating with all partners, including industry, to successfully implement FSMA Rule 204 traceability requirements. By working together, we can enhance food safety, ensure efficient traceability and protect public health across the entire supply chain.” 

“Food safety is the single most important issue that food retailers, wholesalers and suppliers focus on every day,” said Leslie G. Sarasin, President and CEO, FMI – The Food Industry Association. “FDA’s FSMA Rule 204 is the most significant regulation the food industry has ever faced and will demand tremendous investments for recordkeeping, data management and systems changes. This Collaboration demonstrates our collective commitment to sharing information and working together to ensure the food supply chain has the resources and clarity it needs for compliance.”  

“Compliance with FSMA Rule 204 presents a significant challenge for U.S. and foreign agri-food interests, as it imposes unprecedented recordkeeping requirements and necessitates the adoption of advanced traceability technologies,” said Angela Fernandez, Senior Vice President of Market Development, GS1 US. “By convening food safety, supply chain logistics and data management experts across many food segments, the new Collaboration aims to share best practices for meeting Food Traceability Rule requirements.” 

“IFT’s Global Food Traceability Center has played a critical role in food traceability for many years and now, with the window to FSMA Rule 204 compliance quickly closing, organizations need our guidance more than ever,” said Blake Harris, Technical Director, IFT’s Global Food Traceability Center. “Since the FSMA Rule 204 announcement, we have created a series of educational resources that will be essential to food organizations on their complicated compliance journey to help boost organizational traceability awareness.” 

“It is critically important for manufacturing companies serving the food-away-from-home marketplace to meet FSMA Rule 204 compliance requirements,” said Phil Kafarakis, President & CEO, IFMA. “The continued strength of consumer spending for food-away-from-home mandates that manufacturers exceed consumer expectations for safe, flavorful and portable meals that go beyond FSMA Rule 204 compliance.” 

“Foodservice distributors are deeply committed to providing safe food products to their customers and are highly skilled in tracking and tracing the volume and variety of food they distribute,” said Mark S. Allen, President & CEO, IFDA. “Collaborating with supply chain partners is key to enhancing food safety and advancing goals set forth under FSMA Rule 204.” 

“Implementation of FSMA Rule 204 requirements is a cross-industry challenge,” said Ed Treacy, Vice President of Supply Chain, IFPA. “This collaboration will ensure that the resources created and education offered to our collective members are coordinated and aligned.” 

“FSMA Rule 204 underscores the significance of understanding how the broader supply chain interacts with farmers, extending beyond just fresh fruits and vegetables,” said Ted McKinney, CEO, NASDA. “While the value of traceability is widely recognized, its effectiveness in enhancing food safety and public health will hinge on its practical application. Therefore, effective education, particularly in the early stages of this initiative, is crucial.” 

About the Food Industry FSMA 204 Collaboration Organizations 

About Association of Food & Drug Officials
The Association of Food and Drug Officials (AFDO) is a well-recognized national organization that represents state, territorial, and local food protection regulatory agencies including all the agencies that regulate produce, manufactured foods, and retail foods. The Association’s principal purpose is to act as the leader and a resource to state, territorial, and local regulatory agencies in developing strategies to resolve and promote public health and consumer protection related to the regulation of food, medical products, and cosmetics. 

About FMI – The Food Industry Association
As the food industry association, FMI works with and on behalf of the entire industry to advance a safer, healthier and more efficient consumer food supply chain. FMI brings together a wide range of members across the value chain — from retailers that sell to consumers, to producers that supply food and other products, as well as the wide variety of companies providing critical services — to amplify the collective work of the industry. 

About GS1 US  
GS1 US® helps enable companies to power their supply chains to deliver safe, consistent, authentic, and trusted experiences. Best known as a source for UPC barcodes, GS1 is a not-for-profit, global data standards organization that creates a common language for companies to identify, capture, and share trusted data that links their physical and digital supply chains. Millions of businesses around the world power commerce with GS1 Standards. Learn more at www.gs1us.org. 

About Institute of Food Technologists
The Institute of Food Technologists (IFT) is a global organization of over 11,000 individual members from more than 100 countries committed to advancing the science of food. Since 1939, IFT has brought together the brightest minds in food science, technology and related professions from academia, government, and industry to solve the world’s greatest food challenges. IFT’s Global Food Traceability Center conducts applied research; develops resources, tools, and training; and offers customizable services to help industry, regulators, and non-governmental organizations (NGOs) implement end-to-end, event-based, interoperable traceability to solve challenges and create opportunities across the supply chain. For more information, go to www.ift.org/gftc 

About International Foodservice Distributors Association
The International Foodservice Distributors Association (IFDA) is the premier trade association representing foodservice distributors throughout the United States and globally. IFDA members play a crucial role in the foodservice supply chain, delivering 33 million cases of food and related products to more than one million professional kitchens daily, including restaurants, K-12 schools, colleges and universities, U.S. military and government facilities, hospitals and care facilities, hotels and resorts, and other foodservice operations that make meals away from home possible. This vital industry generates $382 billion in sales, employs 431,000 people, and operates 17,100 distribution centers in all 50 states and the District of Columbia.

About International Foodservice Manufacturers Association
The International Foodservice Manufacturers Association (IFMA) is a trade association founded in 1952. IFMA empowers, nurtures, and connects an inclusive and diverse $1.3 trillion food-away-from-home ecosystem of manufacturers, distributors, operators, and others. By sharing insights, fostering best practices, and developing networking and educational opportunities through events, IFMA informs and instructs its members, and motivates change to improve both individual organizations and the foodservice industry at large. 

About International Fresh Produce Association
The International Fresh Produce Association (IFPA) is the largest and most diverse international association serving the entire fresh produce and floral supply chain and the only to seamlessly integrate world-facing advocacy and industry-facing support. We exist to bring the industry together to create a vibrant future for all. We grow our member’s prosperity by conducting advocacy; connecting people and ideas; and offering guidance that allows us all to take action with purpose and confidence. 

About National Association of State Departments of Agriculture
NASDA is a nonpartisan, nonprofit association which represents the elected and appointed commissioners, secretaries and directors of the departments of agriculture in all 50 states and four U.S. territories. NASDA grows and enhances American food and agricultural communities through policy, partnerships and public engagement. To learn more about NASDA, please visit www.nasda.org.

About FMI

As the food industry association, FMI works with and on behalf of the entire industry to advance a safer, healthier and more efficient consumer food supply chain. FMI brings together a wide range of members across the value chain — from retailers that sell to consumers, to producers that supply food and other products, as well as the wide variety of companies providing critical services — to amplify the collective work of the industry. www.FMI.org




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Posted on Categories Poultry

Driven by delivery, online grocery sales increase for third consecutive month

Dive Brief:

  • Online grocery sales hit $9.9 billion in August, an increase of 7% compared to the same time last year as all three fulfillment methods posted year-over-year sales growth, Brick Meets Click and Mercatus reported Monday. 
  • Delivery sales increased 10% last month compared to the year prior, while ship-to-home rose 9% and pickup saw a nearly 4% uptick.   
  • Promotional efforts for subscription and membership programs, specifically in the delivery segment, led to the third consecutive month of high-single-digit sales gains for online grocery in 2024, the report found.

Dive Insight:

Delivery had a strong growth spurt in August thanks in part to numerous promotional incentives, Brick Meets Click and Mercatus reported.

Compared to the 6% year-over-year gain in monthly active users (MAUs) for the overall e-commerce channel, delivery’s MAU base expanded by nearly 16% — almost three times faster than pickup’s and nearly double Walmart’s MAU base growth. 

Since May, special offers and promotions from grocers and other food retail players have increasingly focused on delivery and helped boost e-grocery sales.  For example, Instacart in May started offering 80% off its annual membership and Walmart promoted half off its membership program.

Between June and August, total online grocery sales gained 7.9% year-over-year compared to the 1.4% growth seen between March and May. Accounting for the effect of seasonality, the estimated incremental impact between the three-month periods is a 2.2% lift, Brick Meets Click and Mercatus noted. 

Delivery’s shift is “even more dramatic,” the report stated, with sales between June and August growing by 16% compared to the 0.6% growth recorded between March and May. This increase was primarily due to the expansion of delivery’s MAU base and “skyrocketing” order frequency.

Meanwhile, Walmart is continuing to pose a threat to supermarkets. The share of U.S. households that primarily shop for groceries at Walmart, either in-store or online, rose to approximately 30% between June and August, the report noted.

“Households that chose Walmart as their primary grocery retailer were already more likely to buy groceries online, and now the difference between Walmart and Supermarkets has widened even further on that metric,” according to the report. 

The findings reflect a survey of 1,829 shoppers Brick Meets Click fielded August 30-31




Nestlé‘s Stouffer’s launches first shelf-stable offering with macaroni and cheese

Nestlé’s Stouffer’s line has carved out a dominant presence in frozen comfort foods with meals such as lasagna, chicken enchiladas and beef pot roast. Now, the company is hoping to bring that success to shelf-stable products.

The brand is making its first foray into the space this month with Stouffer’s Supreme Shells & Cheese in two flavors: Cheddar Cheese and Three Cheese. Additional innovations are expected to reach the market starting in 2025.

“We want to shake up the aisle, literally, in terms of what we’re bringing to the consumer,” Tom Moe, president of Nestlé’s meal division, said in an interview. “And when you think about that aisle, it’s been a while since you’ve had a significant brand enter [macaroni & cheese] with a prominent proposition, and now’s the opportunity.”

The shelf-stable macaroni and cheese market is a massive category representing a $2.9 billion market. The segment also is ripe for growth, with a near-term opportunity topping $100 million, Nestlé found.

Optional Caption

Courtesy of Nestlé 

 

Stouffer’s is no stranger to macaroni and cheese, producing 13 different frozen variations of the product. But while consumers eat macaroni and cheese 22 times a year, 15 of those occasions involve dried pasta, according to the packaged food company.

“We want to bring that same experience [from frozen] into where the majority of the purchases are,” Moe said. 

Nestlé’s noted that 67% of shoppers who purchase Stouffer’s frozen macaroni and cheese also bought shelf-stable options. The figure was more than double the roughly third of consumers who purchased both a frozen and shelf-stable product, an indication that a new macaroni and cheese launch would especially resonate with Stouffer’s’ existing user base.

The Switzerland-based company said 70% of current shelf-stable macaroni and cheese users expressed interest in purchasing the Stouffer’s offering alongside the brands they already buy.


“We want to shake up the aisle, literally, in terms of what we’re bringing to the consumer. And when you think about that aisle, it’s been a while since you’ve had a significant brand enter [macaroni & cheese] with a prominent proposition, and now’s the opportunity.”

Tom Moe

President, Nestlé’s meal division


Nestlé is using a dominant red, horizontal packaging for the shelf-stable macaroni and cheese that resembles the box it has in frozen. This allows the company to tap into the brand equity of Stouffer’s that people recognize while allowing the new product to stand out on shelves against its competitors, Moe said.

Nestlé said its Stouffer’s Supreme Shells & Cheese has 10% more cheese sauce than the leading shelf-stable shells and a more cheese-forward flavor profile that will help it resonate with consumers. Both blinded and branded taste tests between Stouffer’s and the leading shelf-stable brand showed Nestlé’s was preferred, Moe said.

Stouffer’s traces its history to the 1920s when the restaurant Stouffer Lunch opened in Cleveland. The brand entered frozen meals in 1954, and Nestlé acquired the brand nearly two decades later.

During the pandemic, companies such as Nestlé cut back on innovation to focus on keeping shelves stocked with their most popular items. While the impact of COVID-19 is less prominent, the food environment is dealing with inflation that has prompted cash-strapped consumers to cut back on what and how much they buy.

Moe said the new macaroni and cheese is competitively priced with other frozen and shelf-stable products on the market. It also “provides a different dimension” by giving consumers the ability to be more involved in the cooking process — a factor that doesn’t exist when a frozen meal is heated in the microwave or oven.

“There is a very distinct consumer differential there that we want to make sure that we addressed,” he added.

The shelf-stable macaroni and cheese is the latest major offering Nestlé announced in 2024. In May, the company announced it was rolling out its first major U.S. brand in nearly three decades to meet the needs of consumers taking GLP-1 medications and other individuals focusing on weight management. The line, called Vital Pursuit, is expected to reach store shelves this month.




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