Category: Canned & Preserved Foods

Dive Brief:

• Egg prices are back on the rise as a devastating bird flu outbreak and swelling consumer demand eats into supply.

• Wholesale egg prices surpassed about $3 per dozen in August, according to the U.S. Department of Agriculture, up from the usual $1 to $2 range. Retail egg prices were up 19% in August compared to last year, according to the latest Consumer Price Index data, while the broader grocery category increased only 1%. 

• Marc Dresner, director of communications for the American Egg Board, said highly pathogenic avian influenza, or bird flu, has forced egg supplies to be “less robust than normal.” At the same time, U.S. sales have jumped to levels not seen since the pandemic.

Dive Insight:

Wild swings in egg prices have roiled the market over the past few years: After hitting a record at the end of 2022, prices crashed before climbing again at the end of last year.    

Despite the price fluctuations, consumers continue to buy eggs — and more of them, as of the last few months. August egg sales were up more than 5% compared to 2023, and producers sold 237 million eggs in the most recent four-week period, Dresner said, citing Nielsen data.

“We haven’t seen that number since the first year of COVID,” he said, when sales soared as consumers stocked up on staples including eggs and toilet paper. 

As domestic demand stays strong, other countries are also buying more U.S. eggs. According to the U.S. Egg Export Council, total exports for the first four months of the year increased by 22% to 63.5 million dozen eggs, though values were down 22%.

Demand is expected to rise further during the fall and winter months with the holiday baking season entering full swing. That could further pressure the commercial egg supply, especially as bird flu also spreads more easily in colder climates. 

Approximately 18.7 million egg laying hens and pullets across seven states have died as a result of the avian virus since the start of the year, according to the USDA. Cal-Maine Foods, the largest U.S. egg producer, temporarily halted production at one of its Texas plants after detecting bird flu. 

After two years of the current outbreak, producers have been able to better respond to the threat of bird flu and are “now recovering faster than ever when they are impacted,” Dresner said. Still, rebuilding flocks takes time.

“Farmers are doing everything they can to protect their flocks from disease and keep the eggs coming,” Dresner said. “We are definitely not letting our guard down when it comes to bird flu.”

Tasty Bite has a bold claim for the fast-growing Indian cuisine market. It’s a “springboard” for a growing wave of consumers turning to the trendy food for the first time.

The brand, which launched in the U.S. in 1995 with five entrees, has expanded to include dozens of products — including tikka masala packets, butter chicken sauce, lentils and rice bowls. More recently, Tasty Bite has added Biryani Rice Bowls in Smokey Paneer, Vegetable and Chickpea varieties. 

Art Semerdjian, the brand’s acting general manager, said sales data indicates Indian cuisine is growing by double-digits compared to other shelf-stable categories.

“Younger consumers are looking for bolder flavors, more authentic cuisines, something different. Even the mac and cheese aisle has global flavors,” Semerdjian said. “From a trend standpoint, we were probably way ahead of time, this ready-to-heat convenient solution.”

In 2017, CPG giant Mars Food acquired a majority stake in Tasty Bite’s parent company, Preferred Brands International. 

Indian cuisine, known for its array of spices and curries, is growing in popularity among consumers eager for the different flavors found in ethnic foods. Indian restaurants in the U.S. have generated $4.9 billion in revenue over the past five years. They are projected to grow at a compound annual growth rate of 1.4% in 2024 alone, according to IBIS World.

A big draw for Indian food among Gen Z consumers is spice. Shifting preferences toward ready-to-eat food products, driven by busy lifestyles, also are driving growth in this segment. 

Scott Wellard, the vice president of sales at Tasty Bite, said consumers are experiencing Indian flavors in an array of products at restaurants, even burritos.

“They want to engage more, but when they go to the grocery store, they’re overwhelmed with how to recreate something they’ve experienced at the restaurant,” Wellard said. “Tasty Bite makes it a nice entry point for that consumer to experience these bold flavors in an easy way.”

According to Semerdjian, Tasty Bite’s products are not manufactured in a commercial factory, but prepared from scratch by chefs who saute ingredients, such as onions, rather than add powders.

“We pick the cashmere leaves by hand, and sort them like you’d do in your own kitchen,” Semerdjian said. “Indian isn’t Mexican yet, it’s not reached that kind of pull where we have Taco Tuesdays, but who knows, maybe there will be Tikki Masala Thursdays?”

The growing interest in global flavors playing off of one another will continue to influence how the brand goes about innovating, he said.

“There’s dumplings that are Chinese-Indian fusion dumplings, that’s the future. I think that’s part of where we’re going,” Semerdjian said.

As consumers and CPG companies continue grappling with rising inflation, the Mars-owned brand believes it will benefit as people look to make less expensive meals at home instead of venturing out to restaurants.

“Tasty Bite is so nutrient-dense and that really plays into the value proposition. It is truly a meal where you feel full, and it delivers on flavor,” Wellard said. “Very few commodities in the grocery aisle deliver that type of nutrition.”

Tyson Foods named a new chief financial officer on Thursday, replacing heir John R. Tyson, who was suspended earlier this summer after he was arrested for driving while intoxicated.

The meat giant on Thursday appointed Interim CFO Curt Calaway to take over the position permanently. Tyson remains with the company but is currently on health-related leave, according to a release.

Tyson, a great-grandson of the company’s founder, had the executive role for nearly two years. He was suspended in June after he was arrested in what was the second alcohol-related incident in his tenure as CFO.

In July, Tyson pleaded not guilty to multiple charges including DWI and careless driving, the Arkansas Democrat-Gazette newspaper reported.

Calaway has been with Tyson Foods since 2006, holding various financial leadership roles throughout his career. He was CFO for Tyson’s prepared foods business, where he oversaw M&A and corporate development efforts.

“Curt is a proven leader with deep industry knowledge and a wealth of experience in financial strategy and reporting,” Donnie King, Tyson president and CEO, said in a statement. “I am confident Curt will continue to help drive our operational excellence and shareholder value.”

The Springdale, Arkansas-based company posted strong profits in its latest quarter, following “a remarkable turnaround” in its chicken and pork businesses driven by operational efficiencies and lower feed costs, King said in an August investor call.

Adjusted operating income totaled $491 million in the third quarter, up 174% over last year, after the company shuttered nine processing plants. According to its earnings report, Tyson is bullish on profits for the rest of the year.

Grains such as quinoa, farro and buckwheat have long been touted by nutrition experts for their high fiber, protein content and abundant omega-3 fatty acids. They are also a darling of the regenerative agriculture space, growing in harsh conditions with minimal water and fertilizer inputs. 

Now, these grains are increasingly being incorporated into indulgent products such as ice cream to enhance the product’s nutritional profile. 

According to a recent Spins webinar, they will be even more important as they move from standalone ingredients into products made by CPG companies. 

Sustainable grains are a $41 million market, according to SPINS data. The sector is poised for additional growth because it aligns with consumer interest in better-for-you food products and environmental sustainability, Zoe Colon, senior insights analyst at SPINS, said in the webinar. 

“It does not mean they are on the decline, or they are leaving the shelf,” Gina Roberts, client insights senior analyst at Spins, said during the webinar. “It really is showing as we dive deeper into the data that these sustainable grains have a significant future growth as a supporting ingredient, so they came into the market as a single product, and now have this new future.” 

Concerns over climate change and protecting the planet have propelled sustainable grains to the forefront of product formulations, she said. 

Quinoa, for example, has been added to nut and seed butters, rice cakes and wellness bars.

“The future of the ingredient will be in the ready-to-eat, plant-based and even in the beverage space when paired with functional ingredients,” said Roberts.  

Nuike Foods, an Israeli food-tech startup, created a non-dairy milk product out of quinoa, in hopes of attracting consumers with its high protein content and sustainable ingredient profile.

Farro, originally from the Middle East, is being used as a supporting ingredient in baking mixes, crackers, crisp breads and pasta. And the growing popularity of the Mediterranean Diet is partially responsible for the grain’s entry to the market, Roberts said.

Buckwheat has been added more often to the breakfast and snacking categories. The ingredient may see growth in the beverage space as well, specifically in kombucha, SPINS found.

Social media influencers are also driving the growth of sustainable grains, said Roberts, by adding it to indulgences and creating videos on how to prepare them.

Ice cream maker Van Leeuwen has incorporated sustainable grains into their products. The company’s Cookie Crumble Strawberry Jam ice cream uses buckwheat flour for the cookie crumble. This adds a sustainable and nutritious aspect to the ice cream. 

“It will be really unique to see how other companies use sustainable grains in frozen desserts in the future,” said Roberts.

Companies like Seven Sundays and Purely Elizabeth are taking cereal and granola, which can be an indulgence, and adding in ingredients like quinoa, buckwheat and millet to boost the nutritional profile. 

Cascadian Farms, a General Mills brand, sells a Climate Smart Cereal with kernza — a whole grain that comes from intermediate wheatgrass — as the main ingredient. 

“A key way General Mills was able to innovate here was not only adding the ingredient to their product but also labeling it as ‘climate smart,’” said Roberts. “It really stands out on shelves.” 

Brown-Forman Corp., the Kentucky-based manufacturer of alcohol brands including Jack Daniel’s, announced on Aug. 21 that it will end several diversity, equity and inclusion programs in response to a shifting “legal and external landscape,” a company spokesperson confirmed in an email to HR Dive. The employer made the announcement in a company-wide email. 

Per a copy of the letter shared to X by anti-DEI activist Robby Starbuck, Brown-Forman said it would tie executive incentives and employee goals to business performance rather than DEI outcomes.

The company said it would sunset “quantitative workforce and supplier diversity ambitions,” stop participating in the Human Rights Campaign’s Corporate Equality Index survey and review its remaining programs to align “with an evolved strategy.”

Grappling with the current environment

A Brown-Forman spokesperson told HR Dive that it launched its diversity and inclusion strategy in 2019 but that a variety of changes, especially in the U.S., led leadership to reconsider that strategy.

“With these new dynamics at play, Brown-Forman adjusted its work to ensure it continues to drive our business results while appropriately recognizing the current environment in which we find ourselves,” the spokesperson said.

The Jack Daniel’s maker joins a growing list of firms cutting back on DEI initiatives in recent weeks.

Only two days prior to Brown-Forman’s announcement, motorcycle manufacturer Harley-Davidson confirmed on X that it ended its DEI function in April and no longer had plans to diversify its supply chain. Last month, retailer Tractor Supply announced a similar shift.

DEI professionals have sounded alarms for several months about challenges to the industry, from both internal and external stakeholders. Such pressures have been acknowledged by organizations like the Society for Human Resource Management, which revised its own DEI platform by dropping the “E” that stands for equity last month.

Bracing for backlash

In the 2023 edition of the HRC’s equality index, Brown-Forman earned a perfect score. The LGBTQ advocacy group awarded the distiller top marks for its inclusive benefits and culture, and internal training initiatives.

HRC issued a statement Aug. 22 criticizing Brown-Forman’s decision, stating that the company “bowed to a fringe-right activist with zero business experience” in what it called a “shortsighted” decision.

“Hastily abandoning efforts that ensure fair, safe, and inclusive work environments for LGBTQ+ people based on manufactured outrage from MAGA bullies is bad business and leaves their employees and millions of LGBTQ+ allied customers behind,” Eric Bloem, VP of programs and corporate advocacy at the Human Rights Campaign Foundation, said in the statement.

Starbuck, in his post sharing the internal Brown-Forman memo, said his group is “forcing multi-billion dollar organizations” to revoke their policies “just from fear they have of being the next company that we expose.”

Decisions to cut back on DEI initiatives may appeal to organizations facing criticism from anti-DEI activists, but they also may create new problems. Shortly after Tractor Supply announced its cuts, the retailer faced backlash from the National Black Farmers Association and its consumer base, Retail Dive reported.

A June report by executive search firm Bridge Partners found that only 4% of C-suite and HR leaders surveyed planned to cut back or eliminate DEI programs in the next two years, while 72% said they planned to increase their DEI commitments.

In the memo, Brown-Forman said it would “continue to foster an inclusive work environment where everyone is welcomed, respected, and able to bring their best self to work.” The company also said it would continue to offer employee resource groups.

Campbell Soup sold its Pop Secret popcorn brand to an independent food company for an undisclosed amount as the CPG giant looks to focus its snacking portfolio.

The brand was purchased by Our Home, which makes offerings such as Popchips, RW Garcia and Sonoma Creamery. Both Our Home and Campbell Soup are headquartered in New Jersey.

Pop Secret generated net sales of approximately $120 million in fiscal 2024, according to Campbell Soup. 

“This marks another step in our journey to strategically focus our Snacks portfolio,” Chris Foley, president of Campbell’s Snacks, said in a statement. “The sale of Pop Secret will drive greater focus and accelerated growth across our Snacks division and portfolio of leading brands.”

Similar to other food companies, Campbell Soup has been adding and subtracting from its portfolio in recent years to prioritize growth and increase its presence in categories such as snacking and premium items. In March, it closed on its $2.7 billion purchase of Rao’s pasta sauce parent Sovos Brands. And in 2023, it sold its Emerald nuts business to private-label food manufacturer Flagstone Foods.

Emerald and Pop Secret were added to Campbell after it purchased Snyder’s-Lance in 2018.

Aaron Greenwald, founder and CEO of Our Home, said Pop Secret’s widespread consumption and recognition, “combined with our extensive manufacturing capabilities, create a unique platform for growth and innovation in the market.”

As part of its Sovos acquisition, Campbell Soup also added Noosa yogurt to its portfolio. The soup and snacks maker said when the deal closed that it planned to evaluate strategic alternatives for the dairy brand. 

Dive Short:

• The quick surge of expert system is actually driving some farming firms to openly divulge the prospective difficulties of applying the innovation right into their procedures and also products.

• Archer-Daniels-Midland Co. highlighted in its own latest annual report just how the rate of artificial intelligence adopting and also progression among an intricate governing background opens the business to technological, lawful and also opportunistic-related dangers.

• Seth Goldstein, equity professional for Morningstar, said to Horticulture Jump that he does not view any sort of unavoidable AI danger for ADM and also various other agrarian firms, however there are actually instances that could possibly generate bad end results.

Plunge Idea:

Generative artificial intelligence is actually swiftly enhancing sectors and also requiring firms to emulate its own benefits and also dangers.

Depending on to a current poll coming from technology platform Arize, around 1 in 5 Luck five hundred firms point out generative AI or even huge foreign language versions in their yearly monetary documents, along with around 70% pointing out the specialist’s ability to become a surveillance or even reasonable danger to your business.

The 3 sectors very most anxious regarding generative AI are actually media and also home entertainment, software program and also innovation and also telecom, depending on to the poll, however various other fields like retail, production and also customer packaged items have actually additionally released threat acknowledgments to entrepreneurs.

In ADM’s yearly record, the business kept in mind that artificial intelligence could possibly open it approximately records personal privacy and also safety dangers, missed out on technology chances, sly or even destructive interactions and also prospective reasonable downsides. Having said that, depending on to Arize, lots of firms are actually noting only the dangers, which might certainly not properly mirror their big picture on the innovation.

In farming and also meals, ADM and also its own competitions are actually utilizing generative bodies to increase and also aid along with trial and error of brand-new tastes and also active ingredients, which might be actually substantial to create or even carry out, Goldstein claimed.

Goldstein additionally kept in mind that wise foreign language bodies could possibly manage a few of ADM’s grain-trading obligations.

” They could possibly possess an entire investing workdesk substituted,” he claimed. “Yet once more, I do not view everything unavoidable that could possibly create prospective dangers.”

ADM dropped an ask for review. The Coca-Cola Firm, though a significant supporter of artificial intelligence, has showed some problems regarding expert system in its own monetary documents, primarily regarding third-party specialist that might certainly not observe its own administration structure on the innovation.

Some of the most significant problems to meals and also farming firms when it pertains to artificial intelligence is actually records personal privacy and also safety. Depending on to a study through Retail Business economics, 46.9% of meals stores determined lawful and also governing problems as a significant barricade to purchasing artificial intelligence.

Despite facing higher food prices, consumers are still looking towards more premium products with more nutrients and less added sodium and sugar, said Jeff Turnas, senior vice president of culinary at Whole Foods Markets.

“There are always fads with grocery shopping that come and go, but what we try to do is stick to our quality standard because good quality food will never be out,” Turnas said.

As inflation persisted in 2024, food prices experienced continued hikes and consumers suffered. 

July, though, showed some signs of relief as food-at-home prices rose at a 1.1% annual rate while inflation increased 2.9% — its lowest level on an annual basis since March 2021, according to Consumer Price Index data released last week by the U.S. Bureau of Labor Statistics. 

Even as grocery inflation has slowed, though, consumers are still concerned over food costs. This week, Vice President Kamala Harris promised a federal ban on food price-gouging as part of proposed economic policies which she said would help the food industry become more competitive.

Consumers seek value and quality in their purchases.

Keto and paleo, for example, were trending for some time, according to Turnas, but now consumers seem to be more focused on well-rounded whole foods.

Many consumers have also been turning to supplements for added nutrients, or are more focused on how specific spices and supplements have a positive effect on health and wellbeing, said Turnas.

The specialty food ingredient market size, which includes dietary vitamins and supplements, was $112.4 million in 2022 and is expected to reach $168.6 million by 2031, growing at a compound annual growth rate of 5.2%.

The sweetener market, for example, is going through a period of massive innovation, with companies using ingredients like the honey truffle and other sweet proteins to achieve a taste similar to that of sugar.

One way that Turnas said Whole Foods looks to stay ahead of trends like these is to take shopping behaviors of consumers and turn them into products.

With the supplement surge, Turnas noticed an uptick in turmeric. The spice is rich in phytonutrients and has properties that can reduce inflammation and improve gut health.

Couple that with how sourdough bread has been trending on social media, and Turnas saw an opportunity.

The grocer will be coming out with a pumpkin turmeric sourdough bread in the fall. 

Developments in research and development have also allowed the grocer to predict shopping behaviors and act accordingly.

“We used to make products based on what we thought people would want, now we can actually test those theories and see them pay off in practice,” he said

Dive Brief:

• Vice President Kamala Harris promised a federal ban on food price-gouging as part of proposed economic policies she revealed in a Friday speech for her presidential campaign.
• Harris said her “first-ever” federal ban would include “new penalties for opportunistic companies that exploit crises and break the rules.” She did not provide further details. 
• FMI – The Food Industry Association took aim at price-gouging claims while the National Grocers Association called for stronger enforcement of the Robinson-Patman Act, an antitrust law that prohibits price discrimination in commerce.

Dive Insight:

Harris said that a grocery price-gouging ban would help the food industry become more competitive, adding that, if elected president, her administration would support smaller food businesses “that are trying to play by the rules and get ahead.”

“We all know that prices went up during the pandemic when the supply chains shut down and failed, but our supply chains have now improved and prices are still too high. … Many of the big food companies are seeing their highest profits in two decades, and while many grocery chains pass along these savings, others still aren’t,” Harris said.

In July, food-at-home prices rose at a 1.1% annual rate while inflation increased 2.9% — its lowest level on an annual basis since March 2021, according to Consumer Price Index data released Wednesday by the U.S. Bureau of Labor Statistics. Even as grocery inflation has slowed in recent months, consumers have continued to worry about food costs. 

Harris pointed to her previous experience as California’s attorney general prosecuting companies for illegal price hikes: “So believe me, as president, I will go after the bad actors.” The grocery price-gouging ban is one of several economic policies, including increased construction of new housing, expanded child tax credits and lowered drug costs, Harris is proposing. 

The NGA, which has led a crusade against what the group says are “unfair and discriminatory tactics” by large food retailers and suppliers that hurt independent grocers, criticized Harris’ proposal. 

“The proposal calling for a ban on grocery price gouging is a solution in search of a problem,” NGA President and CEO Greg Ferrara said in a statement.

The NGA said that instead of proposing new legislation, the government should more strictly enforce the Robinson-Patman Act, lower swipe fees and “rein in excessive and burdensome regulations.”

Amid numerous news reports last week that Harris would share a proposed grocery price-gouging ban Friday, FMI released a statement Thursday saying there are misconceptions about food price inflation and industry practices.

“It is both inaccurate and irresponsible to conflate an illegal activity like price gouging — a defined legal term in which specific violations of trade practices law occur — with inflation, which is a broad, macroeconomic measure of increases in consumer prices over time,” FMI President and CEO Leslie G. Sarasin said in the statement.  

FMI said that food retailers’ profit margins are tight — 1.6% last year — and that the industry has worked to keep prices “as low as possible” while grappling with increased labor costs, volatile energy prices, more severe weather events, more regulations and supply chain issues. 

Earlier this year, the Federal Trade Commission released a report claiming that revenues have outpaced costs for food and beverage retailers in recent years, suggesting the grocery industry is using inflation to increase profits at the expense of consumers. The FTC also said that large grocery retailers took steps to shield their market power in the face of supply chain disruptions during the COVID-19 pandemic that put smaller retailers at a competitive disadvantage. 

The report used publicly available data and responses the agency ordered in late 2021 from nine grocery companies, including Kroger, Walmart, Amazon and C&S Wholesale Grocers.

A White House analysis published at the start of the year found that grocers have maintained the higher profit margins they saw during the pandemic while other types of retailers, like apparel stores, have seen margins slump. 

Struggling plant-based company Beyond Meat is having trouble paying its bills, with a third of its 2024 payments overdue to vendors by 91 days or more, according to data from Creditsafe.

Thirty six percent of the company’s bills for 2024 were 91 days or more late. In July alone, 32.8% of its bills were between 1 to 30 days late and and 13.2% were 31 to 60 days late. 

“When a company has an erratic pattern of paying bills on time, it’s usually an indication of larger financial issues at play,” Ragini Bhalla, head of brand and spokesperson at Creditsafe, said in an email to Food Dive. 

Beyond Meat did not respond to a request for comment. 

“What really stood out was how unstable the company’s payment behaviors have been over the last 12 months,” Bhalla added.

The maker of Beyond Burger and Sausage products also struggled with a similar issue during the last three months of 2023. Late payments 91 days or more overdue rose from 9.7% in October to 42.3% in November and 69.7% in December of last year.

Late payments can have a domino effect on the cash flow of companies that supply products to Beyond, according to Bhalla. 

While the company is facing its own financial troubles and falling behind on payments, its suppliers are placed in a position of trying to keep businesses afloat and maintaining good relations with their customers, she said.

Beyond Meat has been struggling for several years, as the plant-based meat category has faced declining sales.

The company reported its ninth straight quarter of year-over-year revenue declines for the second period ending June 29. Beyond Meat also recently engaged with a group of bondholders to initiate discussions about a balance-sheet restructuring.

CEO Ethan Brown assured investors on its Aug. 7 conference call that the company was making progress on streamlining its manufacturing and holding down costs. Beyond plans to cut at least $70 million from its operating budget in 2024. It also discontinued its jerky line, launched in 2022 in collaboration with PepsiCo, due to declining popularity of the product in the U.S. region.

Brown said earlier this month that consumers and retailers are reacting positively to the company’s new product formulations that have an emphasis on health and wellbeing.

“The health and wellness marketing sounds dubious to us given that most consumers cite taste as the leading barrier to adopting the category rather than health,” TD Cowen analysts said in a research note.

Bhalla said close attention will need to be paid to whether Beyond’s suppliers put orders on hold if the issues persist for the remainder of 2024.