The food and beverage industry in the United States is both expansive and influential, driven by some of the world’s largest companies with established reputations for innovation, product diversity, and strong market presence. Here, we present an overview of the top 10 U.S. food and beverage companies based on revenue, brand strength, and market impact.
1. PepsiCo, Inc.
Headquarters: Purchase, New York
Revenue: Approximately $86 billion (2023)
Overview: PepsiCo is a global giant known for its diverse range of beverages and snacks, including iconic brands like Pepsi, Mountain Dew, Lay’s, and Tropicana. Its extensive portfolio across beverages, snacks, and cereals has enabled it to dominate both domestic and international markets. PepsiCo’s commitment to innovation and sustainability has kept it at the forefront of the industry, with a strong focus on healthier product lines and eco-friendly packaging.
2. The Coca-Cola Company
Headquarters: Atlanta, Georgia
Revenue: Approximately $44 billion (2023)
Overview: Coca-Cola is a leader in the beverage sector with a wide array of soft drinks, juices, teas, and waters, including brands like Coca-Cola, Fanta, Sprite, and Dasani. The company has been diversifying into health-conscious products with its acquisitions of brands like Smartwater and Honest Tea. Coca-Cola’s global brand recognition and extensive distribution network contribute significantly to its sustained success.
3. Nestlé USA
Headquarters: Arlington, Virginia
Revenue: Part of Nestlé Group, with over $100 billion in global revenue
Overview: As the U.S. branch of Swiss conglomerate Nestlé, this company offers a broad range of products, from beverages like Nescafé and coffee creamers to frozen foods and pet care items. Nestlé USA’s product innovation in plant-based and nutritional foods aligns with consumer trends toward health and sustainability. Key brands under Nestlé USA include DiGiorno, Stouffer’s, and Gerber.
4. Tyson Foods, Inc.
Headquarters: Springdale, Arkansas
Revenue: Approximately $54 billion (2023)
Overview: Tyson Foods is one of the largest processors of chicken, beef, and pork in the U.S. Known for its meat products, Tyson has expanded into plant-based foods with its Raised & Rooted line. The company is an important player in the American food supply chain and continues to evolve with a focus on sustainability and improving animal welfare standards.
5. Cargill, Incorporated
Headquarters: Minneapolis, Minnesota
Revenue: Approximately $165 billion (2023)
Overview: Cargill is a private American global food corporation involved in agriculture, food, and industrial products. Though not a direct consumer-facing brand, Cargill supplies essential products to various food industries, including oils, sweeteners, and protein products. Its vast agricultural network and investment in sustainable practices make it integral to the global food supply chain.
6. The Kraft Heinz Company
Headquarters: Chicago, Illinois, and Pittsburgh, Pennsylvania
Revenue: Approximately $26 billion (2023)
Overview: Formed from the merger of Kraft Foods and Heinz, this company boasts iconic brands like Kraft, Oscar Mayer, and Heinz. Kraft Heinz has been working to revitalize its brand image by introducing products with simpler ingredients and focusing on more sustainable practices, aiming to align with consumer preferences for transparency and health-conscious options.
7. Mondelez International, Inc.
Headquarters: Chicago, Illinois
Revenue: Approximately $31 billion (2023)
Overview: Mondelez is known for its snack products, including Oreo, Ritz, and Cadbury. The company has a strong global presence and consistently innovates within the snack sector. Mondelez has placed significant emphasis on expanding into the health and wellness segments of snacking, developing products with reduced sugar and healthier ingredients.
8. General Mills, Inc.
Headquarters: Minneapolis, Minnesota
Revenue: Approximately $20 billion (2023)
Overview: General Mills is a major player in packaged foods, with brands like Cheerios, Yoplait, and Haagen-Dazs. Known for its cereals, snacks, and yogurt, General Mills has diversified into pet foods and is investing heavily in eco-friendly practices and product innovation to meet the rising demand for sustainable and plant-based products.
9. Mars, Incorporated
Headquarters: McLean, Virginia
Revenue: Approximately $45 billion (2023)
Overview: While Mars is famous for its candy brands like M&M’s, Snickers, and Twix, the company has a diverse portfolio that includes pet care and beverages. Mars’ commitment to sustainability and responsible sourcing practices, especially in its cocoa supply chain, has been a cornerstone of its strategy, and it continues to expand its offerings to meet consumer demands for ethical products.
10. Conagra Brands, Inc.
Headquarters: Chicago, Illinois
Revenue: Approximately $12 billion (2023)
Overview: Conagra is known for frozen and packaged foods with brands like Healthy Choice, Slim Jim, and Marie Callender’s. The company has adapted to changing consumer preferences by introducing plant-based and healthier options across its product lines. Conagra’s commitment to product innovation and sustainability makes it a competitive force in the packaged foods sector.
Conclusion
The top food and beverage companies in the United States are industry powerhouses, with diverse product portfolios and strong commitments to innovation, health, and sustainability. Each company on this list has not only shaped consumer preferences in the U.S. but has also influenced global food trends. As consumer expectations shift towards health-conscious and eco-friendly products, these companies continue to evolve, investing in sustainable practices and transparent business models. The combined influence of these companies will likely play a significant role in shaping the future of the food and beverage industry.
The possibility of Robert F. Kennedy Jr. joining President Donald Trump’s administration has set the food industry abuzz. Known for his advocacy against processed foods and for public health reforms, Kennedy could bring significant policy changes to an industry dominated by large corporations. With Kennedy’s potential role, questions arise: Will processed foods face stricter regulations? Could new labeling laws change the way consumers interact with their favorite brands? This article explores the probable shifts in the processed food industry and what they could mean for consumers, manufacturers, and health advocates.
Understanding Robert F. Kennedy Jr.’s Stance on Processed Foods
Kennedy has been outspoken about the impact of processed foods on public health, frequently highlighting concerns about ultra-processed foods in the American diet. His focus is not merely on the health effects of these foods but also on what he views as systemic issues within the U.S. food regulatory framework. He believes that corporate interests have heavily influenced the USDA’s dietary guidelines, favoring processed food companies over consumer health.
In a recent statement outside the USDA, Kennedy said, “Corporate interests have hijacked the USDA dietary guidelines to make natural, unprocessed foods merely an afterthought.” He has pledged to reframe dietary guidelines to emphasize whole, unprocessed foods if given a policy role. This could set the stage for an overhaul of food regulations that might be aimed squarely at curbing the influence of large food corporations.
Possible Policy Changes Under Kennedy’s Influence
If Kennedy were to assume a significant policy role, his history of health advocacy suggests that he might pursue initiatives targeting the processed food industry. Here are several ways Kennedy’s influence could reshape this sector:
1. Revised Dietary Guidelines
One of the primary areas Kennedy could target is the USDA’s dietary guidelines, which have historically included allowances for processed foods. Kennedy has consistently advocated for guidelines that prioritize whole, minimally processed foods over heavily processed options. He might push for a dietary model that encourages consumers to focus on unprocessed sources of nutrition, shifting away from processed snacks, frozen meals, and sugary drinks.
2. Stricter Regulations on Food Additives
Kennedy has been vocal about the potential health risks posed by artificial additives in foods, including preservatives, artificial colors, and sweeteners. With a background in environmental and health advocacy, Kennedy may push for regulatory reviews or even bans on certain additives deemed harmful, forcing companies to either eliminate or replace them with safer, natural alternatives.
3. Transparency and Clearer Food Labeling
Another area Kennedy could target is transparency in food labeling. Consumers are increasingly demanding detailed information on the ingredients and processes behind their food, and Kennedy may advocate for policies that enforce clearer labeling standards. This could include mandatory disclosures on sourcing, ingredient origins, and specific processing methods, making it easier for consumers to understand what they’re purchasing.
4. Support for Local and Organic Farming
Kennedy’s background in environmental conservation and sustainable practices suggests he might advocate for policies that support local and organic farming. This could mean new subsidies or incentives for small farms focused on producing organic and non-GMO crops. Such policies would likely benefit local food economies but could challenge large-scale processors who rely on conventional agriculture and imported ingredients.
Make America Healthy Again
Industry Response: Processed Food Companies Face Potential Challenges
The processed food industry, which has enjoyed relatively lenient regulatory conditions over the years, could see considerable disruption. Large corporations and trade groups have already started to voice concerns about Kennedy’s potential appointment. The prospect of tighter regulations and an emphasis on unprocessed foods has created unease, as this could impact profitability, force product reformulations, and require significant changes in marketing strategies.
According to a recent report by Politico, trade groups representing farmers and food manufacturers have initiated discussions with the Trump administration to express their concerns over Kennedy’s rhetoric about American agriculture and food safety standards.
For many food manufacturers, adapting to stricter guidelines could entail costly overhauls to production methods, sourcing, and ingredient lists. In addition, increased scrutiny of food additives might mean an end to certain cost-effective synthetic ingredients that have been mainstays in processed foods for decades.
Potential Impact on Key Areas of the Processed Food Industry
1. Reformulation Costs and Consumer Shifts
To comply with new standards that might limit or ban artificial additives, many processed food companies could be forced to reformulate their products. Reformulation is not only costly but also time-consuming, involving extensive testing, research, and consumer trials. Additionally, replacing artificial ingredients with natural alternatives often increases production costs, potentially leading to higher prices for consumers.
2. Marketing and Branding Changes
If Kennedy pushes for more transparent labeling practices, processed food companies may need to rethink their marketing strategies. Labeling that reveals detailed ingredient sources and processing methods may shift consumer preferences, creating challenges for companies accustomed to using synthetic ingredients or non-local sourcing. Food brands may also face pressure to market themselves as “natural” or “organic,” further aligning with a trend toward transparency and health-conscious branding.
3. Supply Chain and Agricultural Shifts
Kennedy’s focus on sustainable and local farming practices could disrupt traditional supply chains that depend heavily on large-scale farming operations. With potential incentives for organic and local farming, processed food companies may face increased competition from local, farm-to-table suppliers. Additionally, they may need to reassess their sourcing models, especially if tariffs or other measures favor organic and non-GMO producers.
4. Potential Changes to FDA and USDA Roles
If Kennedy assumes a position of influence, he may push for a reevaluation of how the FDA and USDA regulate food production and marketing. This could mean additional oversight of ingredients and processing methods, greater transparency requirements, and increased emphasis on enforcing health-based guidelines rather than profit-oriented standards. Such changes would fundamentally alter the regulatory environment and increase compliance costs for processed food companies.
Public Health Implications: Advocates Cheer Potential Reforms
Health advocates have long called for stricter regulations on processed foods, and Kennedy’s potential role is being celebrated in these circles. From a public health perspective, Kennedy’s focus on healthier dietary guidelines and safer ingredients could lead to a decrease in diet-related diseases such as obesity, diabetes, and heart disease. A policy shift that encourages whole foods and restricts additives aligns with growing evidence linking processed foods to poor health outcomes.
In addition, Kennedy’s push for more transparent food labeling could empower consumers to make healthier choices. As awareness of food sources and ingredients grows, Americans might gradually shift their eating habits towards less processed options, favoring organic and whole foods.
The Future of the Processed Food Industry
Kennedy’s influence on food policy could be transformative for the processed food industry. While some companies may resist these changes, others could view this shift as an opportunity to innovate and appeal to an increasingly health-conscious consumer base. Companies that embrace reformulation, transparency, and local sourcing might find themselves better positioned in a market that values natural and wholesome options.
In the end, the real impact of Kennedy’s potential role will depend on his ability to navigate political and corporate resistance. Processed food companies wield considerable lobbying power, and any substantial policy changes are likely to be met with challenges. However, with growing consumer demand for healthier options and greater transparency, Kennedy’s influence could mark the beginning of a new era in food regulation.
Conclusion
If Robert F. Kennedy Jr. joins President Trump’s cabinet, his influence could usher in a wave of changes for the processed food industry. His stance on dietary reform, additive restrictions, and transparency has the potential to reshape not only industry practices but also consumer expectations. While companies in the processed food sector may face immediate challenges, adapting to these new standards could also open doors to innovation and align brands with shifting consumer preferences.
As the industry braces for possible regulatory changes, one thing is clear: Kennedy’s focus on public health could drive meaningful shifts toward a more transparent, health-conscious food landscape in America.
The American coffee market is hotter than ever—and it’s not just happening in big cities. Across the country, small towns have become the unexpected battleground for a fierce competition among coffee giants and regional newcomers, all vying for the attention of caffeine lovers. With traditional coffee spots being joined by new chains serving sugary, elaborate beverages, the landscape is evolving fast. This expansion is fueled by changing consumer tastes, the rise of iced and energy drinks, and a focus on convenience. Here’s a closer look at how America’s coffee culture is reshaping itself in unexpected places.
The Rise of Coffee Culture in Small Town America
For decades, big cities were the epicenter of coffee culture, but recent years have seen coffee chains and independent shops rapidly expanding into small towns and rural communities. Once known more for oil rigs and high school football than for cappuccinos, towns like Odessa, Texas, have experienced a coffee boom. A recent New York Times article highlighted that Odessa has gone from 17 coffee shops and tea spots six years ago to an impressive 55 today.
This is a trend seen across the United States. Small towns are attracting major coffee players, including Starbucks, Dutch Bros, and newer contenders like 7 Brew Coffee. Local leaders, like Odessa’s mayor Javier Joven, recognize the pattern, describing it as a surge in “the three C’s: Carwashes, Chicken places, and Coffee shops.”
Why Small Towns?
The appeal of small towns for coffee chains is multifaceted. For one, real estate costs are often lower than in urban centers, allowing coffee companies to establish multiple locations without prohibitive overhead. Additionally, with fewer dining and entertainment options, coffee shops in smaller towns often become social hubs, drawing in regular customers who use these spots as meeting points.
Moreover, as larger chains saturate urban markets, they’re turning to underserved areas to continue growing. Small-town America is proving to be fertile ground for this kind of expansion, driven in part by a cultural shift in these communities toward a more diverse food and drink scene.
From Espresso to Energy Drinks: How Consumer Preferences Are Driving Change
While a traditional cup of black coffee still has its dedicated fans, today’s coffee drinkers are showing a strong preference for more elaborate, Instagram-ready beverages. Millennials and Gen Z consumers, in particular, have helped fuel the popularity of iced and flavored drinks, often packed with whipped cream, syrups, and unconventional flavors. These drinks dominate social media feeds and generate buzz, making them marketing gold for brands.
The Power of Instagram and Social Media
Social media platforms like Instagram and TikTok have transformed coffee drinking into an experience that’s as visual as it is flavorful. Brightly colored frappés, caramel-drizzled macchiatos, and pumpkin spice lattes have become iconic on these platforms, making them aspirational products for younger consumers who share pictures of their drinks online. This visibility has encouraged coffee chains to invest heavily in new iced and specialty beverages, which, in turn, attract a broader audience beyond the traditional coffee crowd.
The Shift from Hot Coffee to Cold Beverages
Surprisingly, cold drinks are now outpacing hot coffee in popularity, even at brands long associated with classic brews. Starbucks, for instance, has seen iced beverages become its fastest-growing segment. With a wide range of options like the Pink Drink, iced cold brews, and seasonal offerings, the chain has shifted much of its focus to cater to these trends. Dunkin’ has also followed suit, with a strong emphasis on iced and frozen drinks that appeal to younger customers.
Notably, this shift in preferences is also leading to declining sales in traditional coffee formats. Starbucks, with 16,000 U.S. locations, has faced revenue declines in recent quarters, which some analysts attribute to its struggle to keep up with fast-evolving consumer tastes.
Drive-Thrus: The New Battlefield for Coffee Chains
In a post-pandemic world, convenience has become king. Drive-thru models are increasingly central to the strategy of major coffee chains, especially in regions where car culture is dominant. The convenience of drive-thru service not only attracts busy customers but also enables chains to maintain steady foot traffic without requiring customers to linger indoors.
The Importance of Real Estate in the Coffee War
Location has always been crucial in the restaurant industry, but it’s even more so for coffee chains. Drive-thru-friendly spots in high-traffic areas, such as the “end caps” of shopping centers, are in high demand. Dutch Bros and 7 Brew Coffee, in particular, are seizing these prime locations to compete head-to-head with fast food outlets. This strategic use of real estate is essential in towns where the drive-thru culture aligns with busy lifestyles and long commutes.
The model has proven effective: Dutch Bros has seen rapid growth by focusing on smaller towns and cities with its drive-thru-only model, offering both convenience and consistency. Meanwhile, Scooter’s Coffee, based in Nebraska, has also expanded significantly with almost 800 locations, many of which rely on drive-thru service to keep lines moving and cater to customers’ busy schedules.
Coffee Chain Growth: Who’s Winning?
While Starbucks remains the giant in the coffee industry, regional chains are growing rapidly, using focused strategies and local appeal to win market share. Newcomers like 7 Brew Coffee are rapidly expanding, with a strong focus on iced and blended beverages that cater to social media-savvy customers. Dutch Bros, based in Oregon, has also taken advantage of the drive-thru trend and focuses on a streamlined menu that resonates with customers looking for quick and easy options.
Regional Chains Are Thriving
Regional coffee chains are seizing opportunities in underserved areas, creating a stronghold in places previously untouched by larger brands. Ziggi’s Coffee, a Colorado-based chain, has grown to nearly 100 locations, and with its localized approach, it has successfully tapped into a new customer base. By staying close to their roots and emphasizing quality over quantity, these chains are carving out their own niches and gaining loyal customers.
The Future of the Coffee Market: Sustainability, Specialty, and Possible Over-Saturation
As the competition heats up, the coffee market is likely to see a few key trends emerge. First, sustainability has become an increasingly important factor. From recyclable cups to ethically sourced beans, brands that adopt eco-friendly practices may have a competitive edge, particularly with environmentally conscious customers.
The Specialty Coffee Niche
With so many chains competing on a national level, some coffee brands are finding success by catering to niche markets. Specialty coffee, often with a focus on artisan techniques and unique flavor profiles, is growing in popularity. Shops that focus on single-origin beans, hand-crafted brewing methods, or unique menu items offer a distinct alternative to the mass-market offerings of larger chains. This focus on quality over quantity may become a key differentiator for smaller, independent shops and niche chains.
Can the Market Support So Many Players?
With coffee shops popping up on every corner, the market may face a potential risk of over-saturation. While the demand for coffee is high, it’s unclear if smaller towns and suburban communities can sustain such intense competition in the long run. In highly competitive areas, some shops may struggle to maintain a customer base if newer or better-located options open nearby.
What’s Next in America’s Coffee Wars?
As the battle for coffee consumers continues, companies will likely ramp up their focus on customization, convenience, and experience. Technology, too, will play a role: mobile ordering and loyalty programs have already become standard offerings at most major coffee chains, and brands may look to expand on these features to increase customer loyalty. With so many players on the field, each coffee chain will need to refine its strategies to stand out.
Ultimately, America’s coffee obsession isn’t going away. As coffee shops become fixtures in small towns across the country, they are reshaping local economies, creating jobs, and redefining what “going for coffee” looks like in the heartland. Whether you’re in a bustling city or a quiet small town, the variety and accessibility of coffee choices have never been greater.
The coffee wars may be just beginning, and for the growing number of coffee lovers, it’s an exciting time to indulge in new flavors, formats, and experiences. As long as the demand for caffeine stays strong, the coffee market will continue to innovate and evolve, brewing up fresh battles in towns big and small.
The recent rejection by Lifeway Foods of Danone’s $283 million acquisition proposal has sparked interest in the food and beverage industry, highlighting Lifeway’s strategic intentions to maintain its independence while prioritizing shareholder value. This article delves into Lifeway’s decision, the implications for both companies, and the broader industry context that surrounds this refusal.
Danone’s Proposal and Lifeway’s Rejection
In September 2024, Danone, a significant player in the global food sector with substantial ownership in Lifeway, extended a $283 million acquisition offer, which equated to approximately $25 per share. This offer reflects Danone’s ongoing interest in Lifeway’s expertise in kefir, a fermented milk drink rich in probiotics, which has seen a surge in popularity due to rising consumer interest in health-focused foods.
However, Lifeway’s board dismissed the offer, deeming it an undervaluation of the company’s true potential. In a formal statement, Lifeway asserted that the bid “substantially undervalues” the company, and accepting the offer would not serve the best interests of shareholders or stakeholders. By rejecting the proposal, Lifeway underscores its confidence in its current business strategy and its commitment to long-term growth.
Shareholder Rights Plan: A Defensive Stance
Lifeway’s response included a limited-duration shareholder rights plan, commonly known as a “poison pill,” which is designed to protect against hostile takeovers. This strategic defense mechanism activates if any entity acquires 20% or more of Lifeway’s outstanding shares. Under the plan, current shareholders would be entitled to purchase preferred shares, making it financially challenging for potential acquirers to gain control of the company without board approval.
This measure demonstrates Lifeway’s commitment to preserving its autonomy and ensuring that shareholders have significant influence over any future ownership changes. With Danone already holding 23.4% of Lifeway’s shares, this plan establishes a buffer to prevent further accumulation of shares without the board’s oversight, reinforcing Lifeway’s stance on corporate independence.
Strategic Insights Behind the Rejection
The rejection of Danone’s offer reflects more than just financial valuation; it underscores Lifeway’s determination to expand strategically rather than become part of a larger conglomerate. Lifeway’s decision hints at its belief in a robust future growth trajectory, bolstered by recent financial achievements and consistent year-over-year growth.
The company’s focus on expanding its kefir market and diversifying into adjacent product categories appears to be a central tenet of its strategy. Lifeway’s CEO, Julie Smolyansky, emphasized the potential of kefir for digestive health, appealing especially to consumers with Crohn’s disease, IBS, and those interested in bone and heart health. As consumers increasingly prioritize wellness, Lifeway has positioned itself as a key player in the health food segment, leveraging its brand reputation and product efficacy.
The Competitive Landscape: Why Lifeway Stands Out
The functional foods and probiotics market is experiencing rapid growth, driven by consumer trends favoring health and wellness. According to industry reports, the global probiotics market alone is projected to grow significantly over the next decade, with fermented products like kefir attracting a dedicated consumer base. Lifeway, as a prominent kefir manufacturer in the United States, has carved out a niche in this growing sector, positioning itself as a trusted name in gut health.
Lifeway’s growth is also reflected in its financial performance, with record sales of $160 million in 2023, a 13% increase from the previous year. Additionally, the company has reported 19 consecutive quarters of year-over-year growth, showcasing its ability to capitalize on shifting consumer preferences and sustain steady revenue growth. This track record supports Lifeway’s assertion that it is worth more than Danone’s current offer, as the company anticipates further revenue and market share expansion.
Danone’s Perspective: A Missed Opportunity?
Danone’s interest in Lifeway aligns with its strategic focus on dairy and health-focused foods. With Lifeway’s product offerings in kefir and probiotic beverages, Danone likely viewed the acquisition as an opportunity to strengthen its portfolio in functional foods. As a French multinational, Danone is already well-positioned in the global dairy market, and Lifeway’s kefir products would complement Danone’s existing yogurt and dairy-based beverages.
While Danone’s lack of public response to Lifeway’s rejection indicates strategic discretion, the company’s 23.4% stake suggests a vested interest in Lifeway’s success and future trajectory. However, as the rejection highlights, there may be a limit to Danone’s influence unless the company can negotiate terms that align with Lifeway’s valuation and growth objectives.
The Future of Lifeway Foods: Strategic Goals and Market Expansion
With its independent stance secured, Lifeway is setting ambitious goals for the future. The company aims to increase its market penetration, introduce new products, and enhance brand visibility. CEO Smolyansky has reiterated Lifeway’s mission to “bring kefir to more households while expanding into adjacent categories.” This growth plan could encompass product innovations that appeal to diverse consumer demographics, particularly as the demand for probiotic and gut-health foods rises.
In the coming years, Lifeway could also explore strategic partnerships, co-branding opportunities, and marketing initiatives that reinforce its brand in the health food space. By focusing on its core competencies, Lifeway is likely to achieve sustained growth, especially as awareness of the health benefits associated with probiotics continues to expand globally.
Implications for Shareholders and the Industry
Lifeway’s refusal to sell underscores a broader trend within the food industry: the rise of niche, health-focused companies prioritizing autonomy over mergers or acquisitions with larger conglomerates. This independence can offer greater control over brand identity, product innovation, and consumer engagement, crucial factors for long-term growth.
For shareholders, Lifeway’s decision signals a commitment to maximizing share value through organic growth rather than short-term acquisition gains. While the rejection of a significant offer may be surprising to some, Lifeway’s steady growth and market potential indicate that patient investors could benefit as the company continues to capitalize on its current momentum.
Conclusion: Lifeway’s Path Forward
Lifeway Foods’ decision to reject Danone’s acquisition offer underscores a shift in the industry, where companies with strong niche products and a loyal customer base are choosing to pursue growth independently. By focusing on its strategic goals and leveraging its position as a leading kefir producer, Lifeway aims to redefine its role in the health food sector.
In an industry where mergers and acquisitions are common, Lifeway’s decision to uphold its independence is a notable exception, highlighting the company’s confidence in its strategic path and its potential for continued success. Whether this rejection will prompt Danone to reconsider its offer or encourage other investors to show interest remains to be seen. However, one thing is clear: Lifeway Foods is determined to chart its own course in the competitive and fast-evolving world of health-focused foods.
Legendary boxer and entrepreneur Mike Tyson has announced a significant investment in the plant-based quick-service restaurant (QSR) chain Mr. Charlie’s through his holding company, Carma HoldCo. Known as the “vegan McDonald’s,” Mr. Charlie’s is a rising star in the plant-based fast food world, delivering a menu filled with playful takes on traditional fast-food classics. This bold move by Tyson signifies more than a business transaction—it’s a powerful alignment with his long-held commitment to plant-based living and socially conscious ventures.
Mr. Charlie’s: More Than Just Vegan Fast Food
Founded by Taylor McKinnon and Aaron Haxton, Mr. Charlie’s has rapidly gained popularity with its imaginative, plant-based menu. The restaurant serves up favorites like the “Not a Cheeseburger” and “Not a Chicken Sandwich,” offering fast-food classics with a vegan twist. However, the brand’s mission extends well beyond offering plant-based options; it’s a pioneer in ethical business practices within the QSR sector.
Mr. Charlie’s emphasizes providing employment opportunities to those facing homelessness, collaborating with organizations like Dream Center and GLIDE to support people transitioning out of hardship. Tyson, an advocate for plant-based diets and social impact, expressed excitement for the brand’s mission: “Mr. Charlie’s mission to help and hire those from the homeless community is something that I am truly passionate about, and I look forward to helping many people and communities with the expansion of Mr. Charlie’s across the globe.”
Carma HoldCo and the Expansion Strategy
Carma HoldCo, Tyson’s holding company, will take a cautious, mission-aligned approach to Mr. Charlie’s expansion. The investment group’s CEO, Adam Wilks, brings a wealth of experience from working with well-known brands such as Pinkberry and Cold Stone Creamery. Wilks believes that Mr. Charlie’s blend of accessible pricing and community-focused branding can create a resilient foundation for growth in the highly competitive plant-based QSR market.
“The QSR space is ripe for innovation,” Wilks stated, highlighting that while there are challenges, Mr. Charlie’s focus on mission-driven expansion could enable it to navigate potential pitfalls. Tyson’s investment comes at a time when plant-based restaurants face pressures from rising food costs and increased wage requirements, particularly in California.
Challenges Facing California’s Plant-Based QSRs
California’s recent minimum wage increase for fast-food workers, which now stands at $20 per hour, has posed significant challenges for the food service sector. Plant-based restaurants, which often operate on slim margins due to higher ingredient costs, feel the impact acutely. Kevin Hart’s Hart House, another plant-based fast-food venture, was recently forced to shutter its Los Angeles locations, underscoring the economic difficulties that many plant-based chains face. Like Hart House, Mr. Charlie’s has made affordability and ethical practices central to its brand identity. However, Wilks and the Carma HoldCo team remain optimistic, contending that a thoughtful expansion strategy can help Mr. Charlie’s navigate these hurdles.
The Carma HoldCo team has emphasized their intention to focus on franchise partners who are aligned with Mr. Charlie’s mission, aiming to create a sustainable business model rather than a rapid expansion that might lead to financial instability. This careful approach could prove essential in a market where fast expansion can often lead to operational issues and financial strain.
Balancing Profitability and Social Responsibility
The unique mission-driven approach that Mr. Charlie’s champions is both its biggest asset and its greatest challenge. On one hand, the brand’s emphasis on hiring from underserved communities and creating a welcoming environment has earned it a loyal following and strong brand identity. However, social responsibility and profitability don’t always coexist easily in the fast-food industry, especially with California’s high operating costs.
Wilks remains hopeful, though, that Mr. Charlie’s combination of affordable vegan options and impactful hiring practices will enable it to stand out in the market. “We want Mr. Charlie’s to be a brand that not only delivers delicious plant-based fast food but also makes a genuine difference in the community,” he noted. By carefully managing labor costs, working with partners who understand the mission, and maintaining competitive pricing, Tyson’s team believes that Mr. Charlie’s can build a sustainable path forward.
Plant-Based QSRs: An Industry at a Crossroads
Mr. Charlie’s is not the only plant-based QSR striving to carve out a niche in an industry fraught with challenges. Rising interest in vegan and vegetarian diets, along with a growing desire for ethical consumerism, have propelled plant-based restaurants into the mainstream. However, the high cost of plant-based ingredients, coupled with increased labor expenses, creates financial pressure that many establishments struggle to withstand.
Mr. Charlie’s approach, however, is notably distinct in that it prioritizes values-driven branding and community impact. In today’s landscape, where consumers increasingly expect brands to reflect their personal values, Mr. Charlie’s has positioned itself as a trailblazer. The brand’s partnerships with nonprofit organizations exemplify how ethical practices can be integrated into a business model—an approach that could serve as a blueprint for other mission-driven QSRs.
Tyson’s Role: From Plant-Based Advocate to Industry Pioneer
Tyson’s decision to invest in Mr. Charlie’s is a natural progression of his advocacy for plant-based eating. Over the years, Tyson has been vocal about his own plant-based journey, often crediting it for improving his physical and mental well-being. His venture into the plant-based QSR industry is a testament to his commitment to the lifestyle and a desire to make plant-based options more accessible. Tyson’s involvement also adds a unique narrative to Mr. Charlie’s story, likely drawing additional media attention and consumer interest.
With Tyson on board, Mr. Charlie’s could gain the visibility needed to thrive in a highly competitive market. His celebrity endorsement, combined with Wilks’ industry expertise, may help the brand reach a broader audience and achieve the market penetration necessary for long-term success. Tyson’s support also underscores a broader shift towards plant-based dining within the mainstream, as more high-profile investors and celebrities enter the space.
The Future of Mr. Charlie’s in an Evolving Industry
While Mr. Charlie’s faces the same economic hurdles that challenge other plant-based QSRs, its commitment to ethical hiring and community involvement sets it apart. By focusing on deliberate, mission-aligned growth, Tyson and his team at Carma HoldCo aim to scale Mr. Charlie’s operations without sacrificing the core values that define the brand. With a seasoned team led by Wilks, Mr. Charlie’s is betting on its ability to balance profitability with purpose.
Mr. Charlie’s expansion plans also reflect broader trends in the fast-food industry. In recent years, consumers have shown a growing preference for brands that prioritize ethical and sustainable practices. This shift presents an opportunity for Mr. Charlie’s to establish itself as a leader in the values-driven QSR space. The success of this mission-first approach, however, will ultimately depend on the brand’s ability to manage costs effectively in California’s high-wage, high-cost environment.
Tyson’s Vision for Mr. Charlie’s: A Plant-Based Brand with a Global Impact
Tyson’s investment in Mr. Charlie’s represents a new chapter in his journey as a plant-based advocate and social entrepreneur. With plans to expand the chain globally, Tyson hopes to leverage Mr. Charlie’s unique blend of community-focused initiatives and affordable vegan food to make a difference in cities around the world. His vision is not just for a successful QSR brand but for a movement that helps marginalized communities and promotes healthier eating habits.
In a recent statement, Tyson highlighted his enthusiasm for Mr. Charlie’s humanitarian efforts, saying, “Mr. Charlie’s mission to help and hire those from the homeless community is something that I am truly passionate about, and I look forward to helping many people and communities with the expansion of Mr. Charlie’s across the globe.”
Conclusion: A Values-Driven Model for the Future
Mr. Charlie’s, backed by Tyson’s investment and the expertise of Wilks, is positioned to redefine what a mission-driven QSR can achieve. By blending ethical hiring practices with affordable plant-based options, the brand is pioneering a model that appeals to a modern consumer base increasingly attuned to values-driven choices. If successful, Mr. Charlie’s could become a beacon for other plant-based ventures striving to create positive social impact while navigating the financial complexities of the fast-food industry.
With Tyson’s support and a strategic expansion plan, Mr. Charlie’s is set to make waves in the plant-based fast food industry, proving that profitability and purpose can coexist in a values-driven world. Whether Mr. Charlie’s can sustain this growth in California’s high-cost landscape will be a test of its resilience, but with a mission that resonates and a team dedicated to thoughtful expansion, the future looks promising for this “vegan McDonald’s.”
Coca-Cola, a brand synonymous with the traditional cola taste, decided to experiment with a new flavor in 2024—a raspberry-infused “Spiced” soda. However, the venture was short-lived, and Coca-Cola quickly announced its discontinuation. Industry analysts like Matthew Herbert, co-CEO of the Tracksuit platform, suggest that Coca-Cola’s strength lies not in innovation but in consumer trust and nostalgia. This article delves into the reasons behind the failure of “Spiced,” Coca-Cola’s challenge with innovation, and strategies traditional brands can adopt to stay relevant in a market dominated by health-focused newcomers.
Coca-Cola’s “Spiced” Experiment and Its Swift End
The new Coca-Cola “Spiced” flavor was developed in just seven weeks—a rapid turnaround even for an established brand. Released with the hope of attracting adventurous consumers, the flavor failed to capture the same enthusiasm as Coca-Cola’s classic offerings. According to Herbert, Coca-Cola’s downfall was a mismatch between consumer expectations and brand promise. Customers, familiar with the reliability and traditional taste of Coca-Cola, found the flavor unfamiliar and confusing. Within months, Coca-Cola made the call to discontinue “Spiced,” promising a new flavor for 2025, hinting at the brand’s ongoing desire to diversify its product lineup despite past missteps.
The Dangers of Innovation Without Consumer Alignment
For Coca-Cola, branching into new flavors comes with risk, as the brand’s appeal lies largely in its consistency and nostalgia. As Herbert noted in an interview with The Food Institute, Coca-Cola is recognized for its reliability, not for cutting-edge innovations. Unlike brands like Olipop that actively target younger, health-conscious audiences with unique, functional flavors, Coca-Cola’s customer base consists of individuals who seek familiar, classic soda flavors.
Innovation is indeed crucial in a competitive market, but it must resonate with the brand’s core values and consumer expectations. Herbert points out that Coca-Cola’s “Spiced” soda may have represented a break from what consumers associate with the brand—reliable, classic refreshment. By ignoring these associations, Coca-Cola may have inadvertently distanced its customers, who had a strong preference for the familiar Coca-Cola flavors they’ve trusted for decades.
Learning from Dr Pepper: A Study in Brand Reinvention
While Coca-Cola struggled with “Spiced,” other legacy brands, such as Dr Pepper, have managed to innovate without losing their core identity. Dr Pepper, founded only a year before Coca-Cola, recently surpassed Pepsi to become the second-most popular soda in the U.S. Dr Pepper achieved this feat by preserving its unique taste and leveraging its long-standing brand identity through new media channels like TikTok, which appeal to younger consumers.
The success of Dr Pepper demonstrates the power of knowing a brand’s unique selling points and remaining relevant to new generations. Unlike Coca-Cola’s abrupt shift with “Spiced,” Dr Pepper has leaned into its brand’s distinctive qualities while exploring new marketing channels and formats that reach diverse audiences.
Media Consumption Shifts Among Soda Drinkers
Data from Tracksuit shows that media consumption among soda consumers is increasingly digital, highlighting the importance of platform-specific marketing strategies. From April to October 2024, popular media channels among soft drink consumers included:
Facebook: 65%
YouTube: 63%
Paid streaming services: 59%
TV: 57%
Instagram: 45%
Radio: 38%
TikTok: 32%
For consumers aged 18 to 24, YouTube, Instagram, and TikTok were especially prominent, underscoring the importance of social media platforms for engaging younger demographics.
How Traditional Brands Can Stay Relevant
To maintain relevance, Coca-Cola and other established brands must walk the line between tradition and innovation. While Coca-Cola has a history of iconic flavors, younger consumers are looking for novelty and unique ingredients, often gravitating toward brands that embrace health-focused and functional beverages like Olipop. Herbert suggests that Coca-Cola can remain competitive by emphasizing the brand’s rich history while subtly integrating marketing strategies that appeal to younger audiences, especially on platforms like TikTok and Instagram.
Key Strategies for Traditional Brands to Appeal to Modern Consumers
Authenticity and Transparency: Today’s consumers, particularly Millennials and Gen Z, value transparency and honesty. Brands that openly communicate their history and values while connecting these with their products resonate more with younger audiences.
Leveraging Nostalgia: Coca-Cola’s brand value lies heavily in nostalgia, a powerful marketing tool that can be wielded effectively. Limited-edition packaging, retro-themed advertising, and collaborations that emphasize the brand’s historical appeal could allow Coca-Cola to remind consumers why they love the brand while subtly introducing them to new products.
Focused Innovation: Instead of entirely new flavors that disrupt customer expectations, Coca-Cola could consider offering slight twists on its classics or “throwback” flavors that have previously been discontinued. This approach allows consumers to experience something new without sacrificing the brand’s core identity.
Platform-Specific Advertising: Marketing strategies need to align with where consumers spend their time. Younger audiences are now more engaged on YouTube, Instagram, and TikTok than on traditional media channels. This shift requires brands to create content that appeals to shorter attention spans and focuses on visual storytelling, possibly through influencers or user-generated content.
Coca-Cola’s Future: Can Classic Brands Innovate Successfully?
Coca-Cola’s loyal consumer base has sustained its market dominance for over a century, yet the market is evolving quickly. Health-conscious brands like Olipop have tapped into the demand for functional and low-sugar alternatives, presenting a direct challenge to traditional sodas. Despite the failure of “Spiced,” Coca-Cola is committed to innovation, as evidenced by its promise to unveil a new flavor in 2025.
To succeed, Coca-Cola will need to understand the lessons from its “Spiced” experience: innovation must align with brand identity, and consumer expectations are rooted in the brand’s legacy of reliability and nostalgia. While trying new flavors could attract fresh audiences, it’s essential for Coca-Cola to retain its distinctive image as a “trusted classic” rather than an experimental newcomer.
Conclusion: Balancing Tradition and Innovation
Coca-Cola’s attempt with “Spiced” was a misstep, but the company’s willingness to explore new possibilities remains essential for its survival. As consumer preferences lean towards health-conscious options and unique flavors, Coca-Cola must innovate thoughtfully, without alienating its core audience. Embracing its historical identity, leveraging nostalgia, and embracing authenticity in its storytelling could help Coca-Cola continue to dominate while adapting to shifting trends.
In recent years, personalised nutrition has gained immense popularity among health-conscious consumers, providing tailored dietary solutions to enhance overall well-being. The global market for personalised nutrition, which Statista valued at $8.2 billion in 2020, is expected to nearly double by 2025. Consumers are increasingly seeking individualized dietary plans that consider genetics, lifestyle, and gut health to optimize their nutrition and prevent disease.
Now, researchers at Yale University’s Microbial Sciences Institute have made a significant breakthrough that could revolutionize the field, potentially transforming the way we approach food and nutrition. This research marks a critical step toward understanding how our gut bacteria respond to different foods, offering more precise insights into how we can tailor our diets to meet our unique health needs.
Understanding the Breakthrough: Gut Bacteria and Dietary Molecules
At the heart of the personalised nutrition revolution is the gut microbiome, a complex ecosystem of trillions of bacteria that live in our digestive tract. These microbes play a critical role in how we metabolize food, regulate our immune system, and maintain overall health. The recent findings from Yale University provide a new understanding of how individual gut bacteria interact with various dietary molecules, which could enable even more precise dietary recommendations in the future.
The Yale research team has created the first systematic map showing how gut bacteria metabolize food compounds differently between individuals. This is groundbreaking because, while we know that macronutrients like fiber significantly affect the gut, very little has been understood about how smaller molecular components in food impact gut health.
According to the study’s lead author, Elizabeth Culp, the variability in how gut bacteria respond to specific dietary compounds could explain why some people benefit from certain foods while others do not. For instance, one individual’s gut bacteria might flourish after consuming a particular food compound, while the same food has little to no impact on another person. This level of detail was previously unknown, and it opens the door for truly personalised dietary plans based on an individual’s gut microbiome composition.
Visualization of gut bacteria interacting with different food molecules, showing how the microbiome processes dietary compounds in personalized nutrition.
The Implications for Personalised Nutrition
The findings from Yale’s research provide a critical foundation for understanding the vast differences in metabolic reactions between people. By pinpointing specific microbial genes responsible for how an individual’s gut microbiome responds to food, we can begin to make correlations to health outcomes such as cancer, diabetes, and gastrointestinal diseases. This paves the way for personalised nutrition strategies that go far beyond generic dietary advice.
Tailored Dietary Plans As researchers continue to map out how different gut bacteria metabolize dietary compounds, personalised nutrition could become even more precise. In the future, we might see personalized meal plans that cater not just to a person’s genetic makeup but also to their unique gut microbial composition. This approach would allow for better-targeted interventions for preventing chronic diseases and optimizing overall health.
Preventive Health Care With consumer interest in gut health surging, there is a cultural shift toward preventive health care rather than simply focusing on treatment. As consumers become more aware of the link between gut health and overall well-being, the demand for personalised nutrition is expected to increase. Brands will likely continue innovating to meet this demand, incorporating technology such as artificial intelligence to provide hyper-personalized recommendations.
Consumer Understanding of Gut Health and Its Connection to Nutrition
The term “gut health” has become more mainstream in recent years, thanks in part to a growing body of research highlighting the importance of the gut microbiome. Consumers are increasingly aware that a healthy gut is linked to not just digestion but also mental health, immune function, and even skin health. The gut-brain axis, which refers to the communication between the gut and the brain, has become a focal point of scientific study and is now entering consumer conversations.
Reshma Patel, marketing manager at Yakult UK, explains the rise in consumer interest: “While probiotics have been recognized globally for some time, it’s only recently that scientific advancements have highlighted the profound impact of gut health on overall wellbeing. It extends way beyond digestion, with growing evidence revealing the interconnection of the body’s major organs, with the gut at the center of this intricate system.”
This increased consumer understanding is driving the demand for products and services that support gut health, including probiotics, prebiotics, and personalised nutrition.
What is Personalised Nutrition?
Personalised nutrition, also referred to as precision nutrition, provides individualized dietary advice based on factors such as genetics, lifestyle, environment, and gut microbiome. Instead of offering general dietary guidelines, personalised nutrition takes a more targeted approach by considering an individual’s unique biological makeup. This allows for tailored recommendations aimed at promoting health, preventing disease, and addressing specific health concerns like diabetes or digestive disorders.
The Future of Personalised Nutrition: What’s Next?
The potential applications of personalised nutrition are vast. With Yale’s research laying the groundwork for deeper insights into how our bodies process food, we are poised to see significant advancements in how dietary recommendations are made. Here’s what we can expect in the future:
Custom Dietary Recommendations In the near future, we could see highly customized nutrition plans based on individual microbiomes. These plans would not only help in managing weight and improving health but also serve as preventive measures against diseases such as cancer, diabetes, and cardiovascular issues.
Technological Innovations With artificial intelligence and machine learning gaining traction in the healthcare and wellness industries, we can expect these technologies to play a crucial role in delivering personalised nutrition at scale. AI algorithms could analyze data from wearable devices, genetic tests, and microbiome profiles to create real-time dietary recommendations that adapt to a person’s changing health needs.
Enhanced Consumer Products The food and beverage industry is expected to continue innovating to cater to this growing market. We may soon see more functional foods and beverages specifically formulated to support gut health and tailored to individual needs, from prebiotic snacks to probiotic-infused drinks designed for specific gut profiles.
Glossary of Gut Health Terms
Gut Microbiome: The collection of trillions of bacteria and other microorganisms living in our intestines, which play a crucial role in digestion, immunity, and overall health.
Prebiotics: Non-digestible fibers found in foods like bananas and whole grains, which nourish beneficial bacteria in the gut.
Probiotics: Live microorganisms, often referred to as “good” bacteria, found in foods like yogurt, that help maintain a healthy gut balance.
Postbiotics: Byproducts produced when the body digests prebiotics and probiotics. These compounds include vitamins and peptides that support immune function and gut health.
Conclusion: The Road Ahead for Personalised Nutrition
The personalised nutrition industry is on the brink of a revolution, driven by scientific breakthroughs such as the recent research from Yale. As we learn more about the complex relationship between diet, the gut microbiome, and health, personalised nutrition is poised to become a mainstream approach to wellness. Companies that embrace this shift and invest in new technologies will likely lead the charge in offering consumers tailored solutions that address their unique health needs.
By continuing to innovate and meet growing consumer demand for personalized dietary advice, the food and beverage industry will play a pivotal role in shaping the future of health and wellness.
Yale University Microbial Sciences Institute – Gut Microbiome Research Source on the Yale University research breakthroughs related to gut microbiome and personalized nutrition. URL: https://medicine.yale.edu/research/microbial-sciences/
Mintel – Personalized Nutrition and Market Trends Insights from industry experts on how personalized nutrition and AI are shaping the food and beverage industry. URL: https://www.mintel.com/blog/personalized-nutrition
Microbial Transformation of Dietary Xenobiotics – Research Study (2024) Source for the detailed scientific study on microbial transformation and its implications for nutrition. URL: https://doi.org/10.1016/j.cell.2024.08.038
U.S. Congress Takes Aim at Pepsi, Coke, and General Mills
The rising tide of inflation has impacted countless industries, and corporations have had to find creative ways to maintain profitability without raising prices outright. One increasingly common strategy is “shrinkflation,” where product sizes are reduced while the price remains unchanged. This tactic has come under scrutiny from various quarters, but recently, it has attracted the attention of U.S. lawmakers, particularly Democrats, who are targeting major corporations like PepsiCo, Coca-Cola, and General Mills. The pushback could have significant implications for both consumers and the broader food and beverage industry.
What is Shrinkflation?
Shrinkflation is a form of inflation where companies reduce the size or quantity of a product while maintaining the same price. It is often viewed as a subtle way for companies to increase profits without the customer noticing the impact as starkly as they would with a price hike. Shrinkflation impacts a variety of products, from snacks to beverages to cereals, and has become more pronounced as companies grapple with rising raw material costs, supply chain disruptions, and other inflationary pressures.
For companies, shrinkflation represents a method to safeguard profit margins while attempting to remain competitive. From a consumer standpoint, however, it can feel like a sneaky maneuver, eroding trust in brands over time.
U.S. Congress Focuses on Shrinkflation
In 2023, U.S. lawmakers began focusing on the prevalence of shrinkflation, particularly in widely consumed products from major brands like PepsiCo, Coca-Cola, and General Mills. High-profile figures such as Senator Elizabeth Warren and Representative Madeleine Dean have been vocal in criticizing this practice. They argue that shrinkflation exacerbates economic inequality, as consumers—particularly lower-income individuals—are left paying the same amount for less product without any alternative.
The scrutiny from Congress has intensified as more companies adopt the shrinkflation model to cope with inflation. Democratic lawmakers have been particularly critical of how these practices affect American families, especially in a time when wages are not rising as quickly as prices. Consumers are being hit with higher costs for groceries and household staples, which has led to increased frustration and demands for corporate accountability.
Impact on PepsiCo, Coca-Cola, and General Mills
PepsiCo PepsiCo, one of the largest beverage and snack manufacturers globally, has faced rising costs in raw materials, labor, and transportation. In response, the company has reduced the sizes of popular products like Gatorade, Fritos, and Lay’s chips. The move has allowed PepsiCo to maintain stable pricing in the face of inflation, but it has drawn the ire of consumers and lawmakers alike.
As the company navigates legislative scrutiny, it faces the possibility of regulations requiring more transparent labeling about changes in product size. PepsiCo will also likely need to balance these consumer trust concerns with maintaining profitability in a volatile economic climate.
Coca-Cola Coca-Cola has been similarly affected by rising production costs and has responded with shrinkflation across several of its beverage lines. Coke cans and bottles have seen subtle reductions in volume, leading to criticisms that the company is profiting at the expense of consumer trust.
The congressional focus on shrinkflation puts Coca-Cola in a challenging position. The brand is already facing competition from private labels and alternative beverage options, and any hit to its brand reputation could open the door for competitors to gain market share. Additionally, Coca-Cola may be required to adjust its pricing strategies or improve transparency to avoid further backlash.
General Mills General Mills, known for its breakfast cereals, snack foods, and baking products, has also employed shrinkflation as a response to rising costs. Consumers have noticed smaller boxes of cereal and reduced portions in snack products like Nature Valley granola bars. The company’s shrinkflation tactics have caught the attention of lawmakers, especially given its focus on products that are staples in many American households.
The potential fallout for General Mills could be significant, as cereals and snacks are core products for the company. If consumers start losing trust in the brand, they may shift their loyalty to competitors who are more transparent about pricing and packaging changes.
Comparison of a larger Coca-Cola can and a smaller Pepsi can, both priced the same, illustrating shrinkflation.
Potential Legislative Responses
The scrutiny from Democrats in Congress could lead to a number of potential outcomes for companies like PepsiCo, Coca-Cola, and General Mills. Some lawmakers have proposed measures that would require companies to be more upfront about product size reductions. For example, they might mandate clearer labeling that highlights when a product has been downsized, preventing companies from making changes in a way that consumers could miss.
There are also talks about introducing penalties for companies that engage in deceptive practices related to shrinkflation. While it’s unclear what form these penalties would take, they could range from fines to mandatory restitution for consumers who have been affected.
Furthermore, companies might be pressured to roll back shrinkflation practices or to offer alternative, larger-sized options to give consumers more choices.
The Broader Impact on the Food and Beverage Industry
If Congress moves forward with regulations around shrinkflation, the broader food and beverage industry could see ripple effects. Smaller players in the industry might struggle to adapt to new labeling or packaging requirements, as they often operate with thinner margins than giants like PepsiCo and Coca-Cola. This could lead to consolidation, as larger corporations absorb smaller brands that cannot keep up with regulatory changes.
In addition, any legislation aimed at curbing shrinkflation could lead to higher costs for manufacturers, who may be forced to absorb these costs rather than pass them along to consumers. This could reduce profitability across the board and lead to industry-wide changes in pricing strategies.
On the other hand, companies that proactively address shrinkflation by offering transparent labeling or alternative packaging options may find that they gain consumer loyalty, especially among those who feel alienated by current industry practices.
The food and beverage sector might also witness a shift toward premiumization, where brands offer larger, more expensive product options that emphasize quality and value over quantity. This could create opportunities for new market entrants that are willing to differentiate themselves by providing full-value products rather than engaging in shrinkflation tactics.
Conclusion
The focus on shrinkflation by Democrats in Congress has brought to light an issue that has been affecting consumers for years. As inflationary pressures persist, companies like PepsiCo, Coca-Cola, and General Mills will need to balance the need for profitability with the growing demand for corporate transparency and fairness.
The potential for legislative action may force the industry to adapt in ways that could reshape pricing, packaging, and marketing strategies. At the same time, companies that choose to embrace transparency and consumer-friendly practices may emerge stronger in the long run, with enhanced loyalty and trust from their customer base. For now, the future of shrinkflation remains uncertain, but its impact on the industry is undeniable.
Nestlé, the world’s largest food manufacturer, has faced significant challenges in maintaining its organic growth. The company’s new CEO, Laurent Freixe, recently revised the projected growth figure for 2024 to approximately 2%, down from the previous estimate of “at least 3%” set by his predecessor, Mark Schneider, in July. This marks a significant drop from the initial expectation of around 4%, a target set earlier in the fiscal year. Such low growth levels haven’t been seen at Nestlé since 2017 when the company reported an organic growth of 2.4%. Should Nestlé’s performance drop further, analysts and investors may need to look back to the early 2000s for similarly low growth figures.
This reduction in growth underscores the tough landscape Freixe, a nearly 40-year Nestlé veteran, is now navigating as the company’s new leader. Having taken over as CEO on September 1, 2024, Freixe faces a complex set of challenges, many of which stem from external economic conditions rather than internal mismanagement.
A Legacy of Growth, Now in Decline
For years, Nestlé has maintained a reputation for consistent and strong growth. In 2010, the company reported an organic growth rate of 6.2%, and the average growth over the previous decade stood at 6.3%. These figures are a stark contrast to the much lower growth rates Nestlé has seen in recent years. Since 2017, when the company’s organic growth fell to 2.4%, the food giant has struggled to regain momentum amid shifting global market dynamics.
Freixe’s predecessor, Mark Schneider, took over the reins of the company in 2017 and was able to stabilize growth in a challenging environment. His leadership saw Nestlé achieve respectable figures despite various headwinds, such as increased competition and changing consumer preferences. However, the difficulties faced by both Freixe and Schneider are not entirely of their own making.
The Challenges: Inflation, Pricing, and Consumer Demand
A major factor contributing to Nestlé’s current slowdown is the softening consumer demand, which has been exacerbated by inflationary pressures over the past two years. Global cost inflation has affected all food manufacturers, and Nestlé is no exception. Rising input costs, particularly for raw materials and logistics, have forced the company to increase prices. However, despite these price increases, Nestlé’s organic growth has been relatively modest.
In the first nine months of the 2024 fiscal year, Nestlé implemented a 1.6% price increase. This increase followed what Freixe described as “unprecedented” price hikes over the previous two years. While these measures helped to offset some of the cost pressures, they have not been enough to stimulate significant growth, particularly in a global economy characterized by weakened consumer purchasing power.
Consumers have become more price-sensitive, and many are opting for lower-cost alternatives or reducing their overall spending on premium products. This shift in consumer behavior, coupled with cost pressures, has made it difficult for Nestlé to achieve the high growth rates it once enjoyed. Even though the company has worked hard to maintain its market position, these external factors continue to pose a significant challenge.
Freixe’s Vision: Stability Amid Turbulence
Laurent Freixe is no stranger to Nestlé or the complexities of the global food industry. Having spent nearly 40 years at the company, he has held various leadership positions across different regions, most recently as the CEO of Nestlé’s Zone Americas. His deep understanding of the company’s operations and the broader industry equips him well for his current role. However, he is inheriting a company facing unprecedented challenges.
Freixe has expressed optimism about Nestlé’s ability to weather these challenges. In his prepared remarks, he noted that despite the difficult environment, the company has delivered steady organic sales growth, with positive internal growth metrics. He emphasized that while consumer demand has softened, Nestlé remains committed to innovation, sustainability, and providing value to its consumers.
One area where Nestlé has shown resilience is in its ability to adapt to changing consumer preferences. The company has made significant investments in plant-based products, health and wellness offerings, and digital transformation. These initiatives are designed to align with emerging consumer trends and position Nestlé for future growth.
Future Outlook: Cautious Optimism
Looking ahead, the road to recovery for Nestlé may be slow and uneven. The global economic landscape remains uncertain, with inflationary pressures still present, albeit to a lesser degree than in the previous two years. Freixe’s leadership will likely focus on navigating these external challenges while leveraging Nestlé’s core strengths to maintain stability.
Key to Nestlé’s future success will be its ability to balance price increases with consumer demand. If inflation continues to ease, there may be room for Nestlé to moderate its pricing strategy, which could help boost sales volumes. Additionally, the company’s investments in innovation and digital transformation will play a crucial role in differentiating its product offerings and maintaining its competitive edge.
Freixe’s track record suggests that he is well-equipped to lead Nestlé through this turbulent period. His experience in managing Nestlé’s operations in diverse markets gives him valuable insight into the challenges and opportunities that lie ahead. While the 2% growth target for 2024 may seem modest, it reflects a realistic assessment of the current market conditions and the hurdles that the company must overcome.
Conclusion
Nestlé’s reduced growth projections for 2024 mark a challenging start for CEO Laurent Freixe. However, the company remains a global leader in the food industry, with a strong brand and a history of innovation. As inflationary pressures begin to subside and consumer demand stabilizes, Nestlé is well-positioned to return to higher growth levels in the future.
Freixe’s leadership will be critical in navigating the complex economic landscape and steering Nestlé toward a more prosperous future. While the challenges are significant, Nestlé’s commitment to delivering value to its consumers, combined with its adaptability and resilience, provides reason for cautious optimism.
Regenerative agriculture is more than just a trend; it’s a revolution in how food is produced, focusing on restoring the environment, enhancing biodiversity, and improving soil health. In an era where consumers are increasingly demanding sustainable food products, the bakery and snack industries are leading the charge, utilizing regenerative agricultural practices to secure a greener future. Companies like Wildfarmed, Quinn Snacks, and Puratos are at the forefront, proving that regenerative agriculture is not just a solution for the environment but also a pathway to building resilient supply chains.
What is Regenerative Agriculture?
Regenerative agriculture is a holistic farming practice that seeks to reverse environmental degradation by improving the health of ecosystems. It utilizes techniques like crop rotation, reduced tillage, and cover cropping to restore soil health, increase biodiversity, and sequester carbon from the atmosphere. Unlike conventional farming, which often depletes soil nutrients and contributes to carbon emissions, regenerative agriculture actively restores the environment.
The bakery and snack industries are particularly well-suited for this transformation, as many of the crops used in these sectors, such as wheat, corn, and almonds, can be grown using regenerative methods. In addition to environmental benefits, regenerative agriculture reduces the need for synthetic inputs like fertilizers and pesticides, making it a more cost-effective solution in the long term.
Why Regenerative Agriculture Matters
As concerns about climate change and environmental sustainability continue to grow, regenerative agriculture is emerging as a crucial solution to these challenges. It does more than minimize harm—it actively improves ecosystems by rebuilding soil fertility, enhancing water retention, and promoting biodiversity. According to a report from Puratos, 64% of global consumers are now seeking products that are produced sustainably, and regenerative agriculture is playing a pivotal role in meeting these expectations.
One of the critical insights from Nestlé Professional’s recent report—Unlocking the Community Benefits of Regenerative Agriculture from Field to Fork—is that farms adopting regenerative principles are seeing substantial financial benefits. These farms have reported income increases of up to 49%, thanks to reduced input costs and stronger community connections. This highlights that regenerative agriculture isn’t just beneficial for the environment—it also makes economic sense for farmers.
Katya Simmons, Managing Director of Nestlé Professional UK&I, emphasizes the broader impact: “By strengthening local ecosystems, improving livelihoods, and fostering community resilience, regenerative practices can make a real, lasting impact.” This underscores the transformative potential of regenerative agriculture not only for the food system but also for the communities that depend on it.
Bakery and Snack Sectors: Leading the Charge
Several companies in the bakery and snack sectors are pioneering the adoption of regenerative agriculture, recognizing that sourcing ingredients from regenerative farms aligns with consumer preferences for environmentally friendly products. This shift is essential for staying competitive in a marketplace increasingly defined by eco-consciousness.
Wildfarmed: Pioneering Regenerative Flour
Wildfarmed is one of the most prominent names in regenerative agriculture within the bakery industry. Founded in 2019, the UK-based initiative works with over 100 farmers across the UK and France to grow wheat without the use of pesticides or herbicides. This approach promotes biodiversity and enhances soil health, ensuring that the flour produced is not only of high quality but also environmentally sustainable.
Today, Wildfarmed’s flour is used by over 500 brands, including well-known names like ASK Italian, Franco Manca, and Waitrose. From sourdough bread to pizza bases, Wildfarmed’s regenerative flour is helping to reshape the bakery sector, proving that sustainability and quality can go hand in hand.
Puratos: Partnering for Sustainability
Puratos UK has made significant strides in integrating regenerative agriculture into its supply chain. By launching sourdough products made from regeneratively farmed flour, Puratos has set a new standard for sustainability in the bakery industry. The company has partnered with UK farmers to grow crops like rye and spelt using regenerative methods.
As Francesca Angiulli, Puratos’ sustainability director, explains, the company has teamed up with cooperatives like Cultivae and Farm for Good to support farmers transitioning to regenerative practices. These collaborations not only ensure a sustainable supply chain but also provide farmers with fair compensation, making it easier for them to invest in regenerative techniques.
Quinn Snacks: Innovating in the Snack Sector
In the snack sector, Quinn Snacks is a leader in the regenerative agriculture movement. Known for its pretzels and popcorn, the Boulder, Colorado-based company has partnered with farmers like Steve Tucker, who grows sorghum using regenerative methods. “Regenerative agriculture not only improves crop health but also creates more resilient supply chains,” says Kristy Lewis, founder of Quinn Snacks.
The company is also part of the Soil Carbon Initiative, which encourages farmers to adopt regenerative practices that improve soil health and climate resilience. By focusing on crops like sorghum, Quinn is proving that regenerative agriculture can be applied across different types of farming, creating a more diverse and sustainable food system.
Regenerative Agriculture’s Broader Impact
The benefits of regenerative agriculture extend beyond the farm. By sourcing ingredients from regenerative farms, bakery and snack producers can reduce their environmental footprint, improve product quality, and build stronger relationships with consumers who prioritize sustainability.
Bertie Matthews of Matthews Cotswold Flour notes, “One of the benefits of a regenerative system is that the production costs for the farmers should be lower.” This reduction in costs comes from the decreased need for synthetic inputs like fertilizers and pesticides, making regenerative agriculture a more cost-effective and sustainable practice.
Moreover, regenerative agriculture improves the long-term viability of soil, ensuring a stable supply of high-quality ingredients for years to come. Bob Gladstone of Silvery Tweed Cereals adds, “Regenerative farming results in a broader mix of grains being grown and improves soil health,” further highlighting the resilience this farming method offers in the face of climate change and environmental degradation.
The Time for Action is Now
The bakery and snack sectors have a unique opportunity to drive positive environmental and social change by investing in regenerative agriculture. Not only does this practice offer a way to produce more sustainable and resilient food systems, but it also aligns with the growing consumer demand for products that are both eco-friendly and ethically sourced.
As Katya Simmons of Nestlé Professional UK&I aptly states, “Regenerative agriculture has the power to transform not only our food systems but also the communities they support.” The time for businesses to take action is now, and the rewards—both for the planet and for the industry—are clear.
Conclusion: A Sustainable Future for Food Production
Regenerative agriculture represents a fundamental shift in how food is grown, moving beyond sustainability to actively improve the environment. For the bakery and snack industries, adopting these practices offers not only environmental and economic benefits but also a way to meet the growing demand for sustainability from consumers. As companies like Wildfarmed, Quinn Snacks, and Puratos lead the way, it’s evident that regenerative agriculture is the future of food production—and it’s one that benefits everyone involved, from farmers to consumers to the planet.
The European Court of Justice has ruled that EU member states cannot ban the use of ‘meaty’ terminology for plant-based foods. This decision allows vegetarian products to use terms like steak and burger, provided no specific legal name exists.
In a significant ruling on October 4, 2023, the European Court of Justice (ECJ) declared that EU member states cannot prohibit food manufacturers from labeling vegetarian products with ‘meaty’ terms such as steak, sausage, escalope, and burger. This decision affirms that as long as a country has not established a specific legal name for vegetable protein-based foods, manufacturers are free to use these descriptors.
Background of the Case
The ruling follows France’s attempts to ban the use of meat-related terminology for plant-based foods. In February, the French government sought to implement restrictions on domestic manufacturers, continuing efforts from a similar decree proposed in 2022. The move sparked a legal challenge from several organizations, including Protéines France, the European Vegetarian Union (EVU), the Vegetarian Association of France (AVF), and the prominent meat-alternative company Beyond Meat.
These groups argued that the French government’s restrictions infringed upon existing EU laws that already provide adequate consumer protection. The case was subsequently brought before the ECJ for a definitive ruling.
ECJ Findings
The ECJ’s decision emphasizes that while EU member states retain the authority to establish legal names for food products—allowing them to assign specific terms to various food items, including plant-based alternatives—they cannot impose bans on the use of general descriptive terms if no such legal name exists. The court’s ruling reinforces the principle that the existing EU legislation sufficiently protects consumers, negating the need for additional national regulations that would limit the labeling of vegetable protein products.
According to the EVU, this ruling not only supports the rights of manufacturers in the plant-based sector but also encourages a diverse marketplace where consumers can easily identify and choose plant-based options.
Implications for the Plant-Based Market
This decision marks a pivotal moment for the growing plant-based industry within the EU. By allowing manufacturers to use familiar terms that resonate with consumers, the ruling can help bridge the gap between traditional meat products and plant-based alternatives. This is particularly important as the demand for vegetarian and vegan options continues to rise among consumers seeking healthier and more sustainable food choices.
Moreover, the ruling may also have broader implications for food labeling and marketing practices across Europe. As the market for plant-based products expands, the clarity and accessibility of labels could play a crucial role in shaping consumer preferences and purchasing behavior.
Conclusion
The ECJ’s ruling stands as a landmark decision in the ongoing evolution of food labeling laws within the European Union. By affirming that vegetarian products can utilize ‘meaty’ terminology, the court has paved the way for a more inclusive and transparent food market. As consumers increasingly seek out plant-based alternatives, this ruling will likely contribute to the continued growth and acceptance of these products across Europe.
For businesses and consumers alike, the implications of this ruling signal an exciting shift in the food landscape, promoting greater choice and innovation in the plant-based sector.
Lamb Weston plans to close its Connell facility, cut 428 jobs, and restructure its operations to address soft demand and increase cost efficiency. Discover more here.
Introduction: Lamb Weston Announces Major Restructuring Efforts
Lamb Weston, a leading supplier of frozen potato products to restaurants and retailers, has announced the closure of its older, higher-cost processing facility in Connell, Washington. In addition, the company plans to temporarily curtail certain production lines and schedules across its North American network. The restructuring will result in the elimination of 4% of its workforce, or approximately 428 jobs, as well as the removal of unfilled positions. This move is aimed at addressing the current supply-demand imbalance and improving operational efficiency as consumer demand remains weak.
The Impact of Soft Demand on Food Producers
The decision to close the Connell facility and reduce its workforce comes amid ongoing economic challenges, with soft demand for food products weighing heavily on producers. According to Tom Werner, CEO of Lamb Weston, the demand for the company’s frozen potato products is expected to remain soft through the remainder of fiscal 2025.
With consumers eating out less frequently and tightening their spending due to economic uncertainties, companies like Lamb Weston are under pressure to maintain profitability and manage costs. The economic landscape has prompted food producers across the industry to take decisive actions to align output with reduced demand.
Strategic Restructuring: A Focus on Cost Efficiency
Lamb Weston’s restructuring plan is designed to drive operational efficiency, reduce costs, and improve cash flow. The closure of the Connell facility and the reduction of jobs will help the company manage its factory utilization rates more effectively, while also addressing the supply-demand imbalance in North America.
The restructuring is expected to generate approximately $55 million in pre-tax cost savings and a reduction in working capital over fiscal 2025. According to Werner, these actions will better position the company to navigate the current economic environment and maintain competitiveness.
“We expect these actions will help us better manage our factory utilization rates and ease some of the current supply-demand imbalance in North America,” Werner said.
Industry-Wide Adjustments: A Common Response to Economic Pressure
Lamb Weston is not the only food company making adjustments to its production network in response to slow consumer demand. Several other major food manufacturers have recently announced closures and workforce reductions in an effort to cut costs and boost operational efficiency.
In July, Wonder maker Flowers Foods announced plans to close a bun-making plant in Louisiana. Similarly, Bimbo Bakeries USA, which oversees popular brands such as Entenmann’s and Sara Lee, is shuttering two facilities in New York and another in Texas. The Dr Pepper brand has also announced closures in Virginia and Vermont, while increasing investments in its South Carolina coffee roasting and manufacturing facility.
Even major players like Campbell Soup have been impacted. In May, the company announced the closure of one facility and the downsizing of another. At the same time, Campbell Soup committed to investing $230 million through fiscal 2026 to build newer, more efficient plants aimed at improving the competitiveness of its supply chain.
Driving Growth Through Operational Efficiency
As food producers face continued economic pressures, many are shifting their focus toward improving factory utilization rates and cutting operational costs. By optimizing production processes and eliminating underperforming facilities, companies aim to boost their profit margins while managing slower demand for consumer goods.
Lamb Weston’s restructuring efforts align with this industry trend, positioning the company to weather the economic storm and prepare for future growth. The closure of the Connell facility, along with the reduction of its workforce, is part of a broader strategy to ensure that the company can respond more effectively to changes in demand while maintaining operational efficiency.
Looking Ahead: What’s Next for Lamb Weston?
With the decision to close its Connell facility and streamline operations across North America, Lamb Weston is taking proactive steps to adapt to the changing market landscape. The company’s focus on cost efficiency and supply-demand alignment will allow it to remain competitive in the frozen potato product industry despite the challenges posed by softer demand.
Looking ahead, Lamb Weston will continue to monitor market conditions closely while seeking out opportunities to enhance its production capabilities. The company’s efforts to improve its supply chain efficiency are expected to yield long-term benefits, even as the near-term outlook remains uncertain.
Conclusion: Navigating Economic Challenges with Strategic Restructuring
Lamb Weston’s decision to close its Connell, Washington facility and reduce its workforce is a strategic move aimed at improving operational efficiency in response to a challenging economic environment. As consumer demand for food products remains soft, the company is aligning its production capabilities with market realities, generating significant cost savings and positioning itself for future growth.
This restructuring effort mirrors actions taken by other food producers, such as Flowers Foods, Bimbo Bakeries USA, and Dr Pepper, as companies across the sector look to increase profitability and better manage their operations in an uncertain economy. By focusing on driving cost efficiency, Lamb Weston is preparing to navigate the current landscape and ensure long-term success in the competitive food industry.
Mondelēz acquires a minority stake in Urban Legend, a UK-based bakery known for healthier doughnuts and pastries. Learn how this partnership supports the better-for-you trend.
Global confectionery and snacking giant Mondelēz has acquired a minority stake in Urban Legend, a UK-based bakery brand known for its healthier take on doughnuts and pastries. This investment comes as part of Mondelēz’s broader strategy to expand into the growing better-for-you bakery market, focusing on reduced sugar and calorie options. Urban Legend’s innovative approach to healthier indulgences aligns perfectly with consumer demand for mindful, yet delicious, treats.
Urban Legend’s Mission: Healthier Indulgence Without Compromise
Founded in 2021 by Anthony Fletcher, former CEO of the healthy snack brand Graze, Urban Legend was born out of the desire to create indulgent bakery products that offer significantly reduced sugar, fat, and calories. Through extensive recipe development and novel technology, the brand has achieved reductions of 30% to 75% in high fat, sugar, and salt (HFSS) content, while slashing calorie counts by up to 200 per pastry.
Urban Legend’s current product portfolio includes 12 varieties of doughnuts and pastries, which are already available in 200 stores across the UK, housed in standalone bakery cabinets.
“Our combination of novel technology and extensive recipe development enabled us to be the first ones to deliver iconic doughnuts and pastries with less sugar, fat, and calories,” Fletcher explained.
Mondelēz’s Investment in the ‘Better-for-You’ Fresh Bakery Category
The decision by Mondelēz to invest in Urban Legend through its SnackFutures Ventures reflects a growing focus on the better-for-you trend in the bakery and pastry sector. Richie Gray, global head of SnackFutures Ventures, emphasized the company’s goal to expand into this adjacent market as consumers become more health-conscious.
“Urban Legend is well positioned to disrupt the UK’s fresh bakery category,” Gray stated. “We’re excited about the brand’s growth potential, focus on ‘mindful indulgence’ and the opportunity to help Mondelēz build capability in the fast-growing ‘better-for-you’ fresh bakery space.”
This minority stake follows Mondelēz’s recent acquisition of Chinese frozen cakes and pastries brand Evirth, demonstrating its intent to diversify and expand its presence in the bakery sector on a global scale.
Scaling Up: Urban Legend’s Expansion Plans
The partnership with Mondelēz is expected to provide Urban Legend with the resources and expertise needed to scale the business across the UK, Europe, and potentially worldwide. Fletcher noted that the investment would allow Urban Legend to further its mission of delivering healthier baked goods to a broader market, particularly as the demand for better-for-you products continues to grow.
Urban Legend has raised £13 million since its 2021 launch, including a £3 million investment round earlier this year, led by Samworth Brothers’ investment arm, Perfect Redd. The brand also boasts high-profile investors, including former England football captain Harry Kane and Welsh rugby coach Warren Gatland.
The Growing Consumer Demand for Healthier Pastries
The increasing popularity of healthier alternatives in the food industry is driving brands like Urban Legend into the spotlight. As consumers seek indulgent treats that don’t compromise on taste but are lower in sugar, fat, and calories, companies are racing to meet this demand. This is particularly true in the bakery and pastry sector, which traditionally has been associated with indulgence and high-calorie products.
Richie Gray pointed out that pastries are “adjacent to chocolate” in terms of indulgence, making them a natural area of expansion for Mondelēz as it seeks to align with the better-for-you movement. This strategy comes at a time when consumers are more focused on health-conscious choices, looking for guilt-free indulgence that doesn’t sacrifice taste.
How SnackFutures Invests in Innovation
Mondelēz’s investment in Urban Legend is part of its broader SnackFutures Ventures initiative, which focuses on identifying and growing emerging brands in the snacking and confectionery industries. SnackFutures typically looks for companies that are either profitable or on a clear path to profitability, as noted in discussions with Richie Gray.
The venture arm has placed a strong emphasis on innovation, particularly in categories that have proven difficult to disrupt. Fletcher’s background as a scientist and advocate for well-being uniquely positions Urban Legend to succeed in this space. The company’s ability to balance indulgence with healthfulness sets it apart from competitors in the bakery industry.
“As a scientist and advocate for well-being, I saw a need and opportunity to tackle innovation in one of the toughest categories,” Fletcher explained, referring to the challenges of developing healthier bakery products.
The Future of the ‘Better-for-You’ Bakery Market
As the demand for healthier snacks and pastries continues to grow, companies like Urban Legend are well-positioned to lead the charge in the better-for-you segment. Mondelēz’s investment signals a growing commitment to this market, as the snacking giant seeks to meet consumer preferences for mindful indulgence while maintaining the flavors and experiences that make bakery products so popular.
Urban Legend’s ability to deliver on this promise with lower HFSS and reduced calories places it at the forefront of the movement toward health-conscious eating, without compromising on the indulgence factor that consumers crave.
Conclusion: A Strategic Partnership for Future Growth
The acquisition of a minority stake in Urban Legend by Mondelēz represents a strategic move to expand into the better-for-you bakery sector, a category that is experiencing significant growth due to rising consumer demand for healthier options. By partnering with Urban Legend, Mondelēz is poised to capitalize on the brand’s innovative approach to healthier indulgence, while offering Urban Legend the resources and support needed to scale its business globally.
As the bakery industry evolves to meet health-conscious trends, brands like Urban Legend are not only leading the way but also shaping the future of indulgent, yet mindful, eating. This partnership marks a pivotal moment for both companies as they work together to redefine the fresh bakery market.
The EU delays its deforestation law, giving companies more time to comply. Discover how this decision impacts global trade and environmental efforts.
Introduction: EU Deforestation Law Delayed
In response to mounting pressure from agri-food organizations and international partners, the European Commission (EC) has decided to delay the implementation of its highly anticipated EU Deforestation Regulation (EUDR). Originally set to take effect by the end of 2024, the EUDR aims to combat deforestation, reduce greenhouse gas emissions, and protect biodiversity. The new timeline provides large companies with an additional 12 months to comply, with small and micro-enterprises receiving an extension until 2026.
This article examines the reasons behind the delay, the reactions from various industries and environmental groups, and the potential impact on global trade and environmental policy.
What is the EU Deforestation Regulation?
The EU Deforestation Regulation (EUDR) is a landmark initiative aimed at ensuring that products imported and sold in the European Union do not contribute to deforestation. The law targets high-risk commodities such as cocoa, coffee, palm oil, soy, and timber. Companies trading in these goods will need to provide documentation proving that their supply chains are deforestation-free.
Initially announced in late 2021, the regulation was developed as part of the EU’s commitment to reducing its environmental footprint and addressing global climate change. However, as the 2024 deadline approached, stakeholders raised concerns about the law’s practicality and feasibility, leading to the recent delay.
The Push for a Delay: Industry and Government Concerns
Powerful agricultural and trade bodies, including Copa-Cogeca and the European Livestock and Meat Trading Union (UECBV), were among the first to raise alarms about the timeline for implementing the EUDR. In a co-signed letter, these organizations, along with other sectors like packaging and timber, argued that the timeframe for compliance was unrealistic.
International governments, particularly those in South-East Asia, also voiced their concerns. These countries, heavily reliant on exports of palm oil and timber, questioned how quickly they could align their national industries with the new regulations.
Additionally, the United States Department of Agriculture (USDA) and the U.S. Trade Representative expressed apprehension about how the law might impact U.S. producers who already practice sustainable production. The pressure from various global stakeholders was ultimately enough for the European Commission to announce a one-year extension, acknowledging that more time was needed to implement the complex law.
EU’s Decision to Delay: What Does it Mean?
On 2 October 2024, the European Commission announced the extension, giving large companies until 30 December 2025 and small enterprises until 30 June 2026 to fully comply. The EC stressed that this additional “phasing-in time” would allow businesses and governments to better prepare for the transition without compromising the core goals of the law.
The extension is accompanied by updated guidance documents to help industries understand the requirements more clearly. The EC also emphasized the importance of international cooperation in ensuring the successful adoption of the law across member states and third-party countries.
Despite the delay, the substance and objectives of the law remain unchanged. The goal is still to combat deforestation, but the extra time allows for smoother implementation, especially for smaller players in the global supply chain.
The Reaction: Mixed Responses from Industry and NGOs
The news of the delay was met with mixed reactions. On one hand, industry groups expressed relief. In their view, the delay provides much-needed breathing room to make the required adjustments to their supply chains without facing heavy penalties or business disruptions.
However, environmental NGOs were quick to criticize the postponement. Giulia Bondi, senior EU forests campaigner at Global Witness, stated that the delay undermines the urgency of protecting endangered forests and indigenous communities. She stressed that businesses opposing the law are mainly concerned with maintaining their profit margins at the expense of the environment.
Similarly, Nicole Polsterer, a sustainable consumption campaigner at Fern, argued that the delay threatens the integrity of the regulation. She noted that while many businesses need time to adjust, others are using this delay as a way to push back against the regulation altogether.
Impact on Global Trade
The EU’s decision to delay the EUDR implementation could have significant ripple effects on global trade. Here are some key areas to consider:
1. Agricultural Exports from Emerging Markets
Countries like Indonesia, Malaysia, and Brazil, which are major exporters of palm oil, soy, and timber, now have additional time to align their industries with the new regulations. However, the delay may also create uncertainty, as these countries could face challenges meeting the stricter EU standards.
2. Supply Chain Adjustments
The one-year delay gives companies time to reassess and reconfigure their supply chains. For businesses in food, beverage, and retail, this means ensuring that their products are ethically sourced and compliant with EU regulations. Failure to do so could lead to import bans or heavy penalties.
3. Impact on U.S. Producers
American exporters of agricultural products have expressed concerns about how the law will affect their trade with the EU. While the USDA has welcomed the delay, it remains to be seen how quickly U.S. producers can adjust to the new requirements without incurring additional costs or losing market access.
The Future of Environmental Policy in the EU
The EUDR delay also highlights the complexity of implementing global environmental policies. While the EU is pushing for stricter controls on deforestation, the reality is that such measures are difficult to enforce without strong international cooperation. Countries with vested economic interests in deforestation may continue to resist or push for further delays.
Moreover, as the EU strives to become a leader in sustainable trade practices, it faces the challenge of balancing environmental concerns with economic growth. The delay provides an opportunity to fine-tune the regulation but also risks giving businesses more time to lobby against its full enforcement.
Conclusion: A Step Back or a Step Forward?
The delay in implementing the EU Deforestation Regulation reflects the challenges of achieving global sustainability goals. While industries now have more time to prepare, environmentalists fear that this delay could weaken the law’s impact and hinder efforts to combat deforestation. The next 12 months will be crucial for businesses, policymakers, and environmental advocates to collaborate and ensure that the law is implemented smoothly, without further setbacks.
The EU must navigate this period carefully, balancing the need for environmental protection with the practical realities of global trade. The ultimate success of the EUDR will depend on the ability of all stakeholders to come together and make deforestation-free supply chains a reality.
Explore how the hard candy market is evolving in 2024, with rising consumer demand for value, innovation, and better-for-you options despite inflationary pressures.
Overview of the Hard Candy Market in 2024
Hard candy remains a beloved treat, and despite rising inflation and increasing costs, consumers continue to indulge in the category. However, recent market trends indicate a shift in consumer behavior, with many seeking value and healthier options. Perfetti Van Melle USA’s non-chocolate candy category director, Chris Borges, highlights this shift, particularly in the lollipop segment, where consumers are increasingly looking for more affordable ways to enjoy their favorite sweets.
Borges notes that consumers are purchasing both larger and smaller pack sizes, depending on their budget. “Shoppers are either picking up larger pack sizes to get a better price per ounce or smaller pack sizes for lower absolute price points,” Borges explains. “Consumers still want lollipops, and candy in general, but they are seeking good value where they can.”
Market Performance and Key Data
The hard candy market experienced moderate growth over the past year. According to Circana’s multi-outlet data, the category grew by 5.2%, generating $1.1 billion in sales for the 52-week period ending June 16, 2024. However, unit sales fell by 4.9% to 498.5 million, while the average price per unit rose by 10.7%, reaching $2.25.
Three major players dominated the category, all experiencing growth:
Hershey Company: Sales increased by 5.7%, totaling $171.2 million.
Bazooka Candy Brands: Sales surged by 29.2%, reaching $127.1 million.
Storck: Sales grew by 3.1%, totaling $125.4 million.
Consumer Preferences: Value and Health-Conscious Choices
In addition to seeking value, consumers are increasingly interested in innovative and better-for-you products in the hard candy category. Heidi Dorosin, co-CEO of SmartSweets, observes that many consumers are opting for lower-sugar options that still evoke the flavors of their childhood favorites. “They’re seeking out products with less sugar and are shying away from those with artificial sweeteners,” Dorosin notes.
SmartSweets offers a nostalgic twist on lollipops, providing products without artificial sweeteners, added sugar, or sugar alcohols. The brand’s lollipops come in flavors such as Blue Raspberry and Watermelon, and contain just 1 gram of sugar per two lollipops.
Similarly, Zolli Candy, founded by Alina Morse, has introduced innovative products catering to the health-conscious market. Despite rising costs, Zolli Candy continues to see demand for its zero-sugar offerings. One of its latest products, Zolli Gum Popz, is a sugar-free gum lollipop that features a strawberry-flavored gum surrounded by strawberry hard candy. “Zolli Gum Popz are dye-free, allergen-friendly, natural, vegan, keto, and gluten-free,” Morse explains, emphasizing their wide appeal.
Flavor Trends and Product Innovation
Although traditional flavors like fruit and mint remain popular in the hard candy category, some brands are pushing the envelope with more unique flavor profiles. Liz Smiley, brand manager for Brach’s, points out that while fruit and mint flavors such as lemon, peppermint, and cinnamon continue to dominate, there is an opportunity to introduce more diverse and globally inspired flavors.
Perfetti Van Melle has embraced this opportunity with the launch of two new products: XXL Trio and Melody Pops. The XXL Trio is a multi-layered lollipop featuring bubblegum inside and two different flavor layers. It comes in four flavor combinations, including Cola Lemon, Strawberry Kiwi, Mango Orange, and Tutti Frutti Pineapple. Borges highlights the growing consumer demand for multi-flavor, multi-sensory experiences, stating that these features are driving growth in the non-chocolate candy category.
Melody Pops, another new addition from Perfetti Van Melle, combines candy with entertainment. This lollipop doubles as a whistle, allowing consumers to play different notes while enjoying the candy. It is available in Strawberry, Blue Raspberry, and Watermelon flavors.
Seasonal Products and Nostalgia
Seasonal sales continue to play a significant role in the hard candy market. Smiley notes that consumers still crave everyday options, but seasonal products, such as Brach’s Candy Canes and Cinnamon Imperials, drive ongoing growth. Brach’s, in particular, has found success with holiday-themed products. Last year, the company collaborated with the classic film Elf to release a series of whimsical holiday candies, including Swirly Twirly Gum Drops and Candy Cane Forest Mellowcreme Candy.
Smiley adds that the partnership with Elf was a fun way to put a new twist on Brach’s classic candy canes. Inspired by the film, the candy cane flavors included Buddy the Elf Maple Syrup, World’s Best Cup of Peppermint Hot Cocoa, and Cotton Candy Headed Ninny Muggins.
Sour Candy: A Growing Trend
Sour flavors are on the rise in the non-chocolate candy category. Borges notes that sour is the second biggest flavor in candy, with 130 new sour items introduced in 2023, generating over $140 million in sales. “We see sour lollipops growing at double the rate of regular lollipops,” Borges says.
In response to this trend, Perfetti Van Melle will be launching Chupa Chups Sour Lollipops later this year. These lollipops offer a perfect balance of sweet and sour throughout the eating experience. Unlike some sour candies that lose their punch after a few seconds, Chupa Chups Sour Lollipops maintain their sourness from start to finish. The product will be available in a mixed bag with Sour Strawberry, Sour Lemon, and Sour Green Apple flavors.
Looking Ahead: New Channels and Innovations
As the hard candy market continues to evolve, brands are finding new ways to connect with consumers. SmartSweets plans to launch its first hard candy offering on QVC in the fall of 2024. This move will allow the company to showcase its products through a new retail channel, expanding beyond traditional in-store experiences.
Borges remains optimistic about the future of the non-chocolate candy category. Despite rising costs and inflation, he believes consumers will continue to seek out innovative products that offer exciting flavors, better-for-you attributes, or a sense of nostalgia. “Regardless of the economic impact, the hard candy category is still about indulgence and fun,” Borges says.
Conclusion: The Hard Candy Market in 2024
The hard candy market has shown resilience in the face of inflation, with consumers continuing to purchase their favorite treats, albeit with a greater focus on value and health-conscious options. Brands like Perfetti Van Melle, SmartSweets, Zolli Candy, and Brach’s are leading the way by offering innovative products that cater to shifting consumer preferences, including sour flavors, nostalgic treats, and better-for-you options.
As the category continues to grow, manufacturers are finding new ways to meet consumer demands, whether through seasonal products, new flavor combinations, or alternative retail channels like QVC. Despite the challenges posed by rising costs, the hard candy market is poised for continued innovation and success, as brands tap into the evolving tastes and desires of today’s consumers.
This audio is auto-generated. Please let us know if you have feedback.
Hershey is debuting Shaq-A-Licious XL Gummies as part of its partnership with basketball star Shaquille O’Neal.
Shaq-A-Licious XL Gummies come in Original and Sour varieties. The Original features peach, berry punch and orange flavors shaped like the legendary player’s head. The sour version includes gummies shaped like Shaq’s legendary nicknames, Diesel, The Big Cactus and the Big Shamrock. They come in pineapple, mixed berry and watermelon flavors.
The extra-large size is a nod to the 15-time all-star’s self-proclamation of being the “biggest kid in the candy store.” Shaq-A-Licious XL Gummies are rolling out to major retailers this month.
“We’re thrilled to partner with Shaq, a candy lover and cultural icon, to bring more fun to our gummy products,” Vivek Mehrotra, Hershey’s brand manager for sweets, said in a comment provided to Food Dive. “The gummy market is booming, growing nearly twice as fast as chocolate, offering us a dynamic space for innovation and creativity.”
Hershey first touted the Shaqgummies in February at the Consumer Analyst Group of New York gathering in Florida.
At the time, CEO Michele Buck said the offering provided an opportunity to tap into the basketball great’s “connectivity with consumers, especially young diverse consumers, who are our key target on the gummy segment.”
Demand for gummies spiked during COVID-19 as consumers snacked more at home. Since then, the popularity hasn’t let up. The gummy candy market is forecast to reach $750 million in 2032 from $495 million this year, a compound annual growth rate of 6.4%, according to data from Market Growth Report.
Hershey has spent millions of dollars to shore up its gummies production capacity, which is expected to surge 50% in 2024. As a result, the food manufacturer now has additional flexibility to boost innovation, invest more in promotions and get additional SKUs carried at retail.
Along with the Shaq gummies, Hershey’s Jolly Rancher brand earlier this year debuted Awesome Reds, a sour gummy mix with flavors like cherry, pomegranate, watermelon and fruit punch. This month, it is launching Jolly Rancher Ropes in two flavors – Green Apple & Watermelon and Blue Raspberry & Cherry.
Gummies have proven to be a popular platform for innovation among the major confection companies, including Hershey, Mars Wrigley and Ferrara. They have attributes such as being shareable and viewed by consumers as a more permissible indulgence.
The candy also allows companies to leverage the reputation of well-known and easily recognizable brands. For example, Jolly Rancher is known for its fruit-flavored hard candy, and companies can extend this brand into new categories such as gummies.
NutriFusion®, creator of concentrated micronutrient and phytonutrient-rich food ingredient blends sourced from fruits and vegetables, announced that it has been selected as a supplier of choice by Drink Todo, a full meal replacement drink that features the ultimate pairing of taste and essential nutrition and designed to support a healthy, faced-paced lifestyle.
A breakfast smoothie created to replace breakfast, Todo provides prebiotics, adaptogens and antioxidants, is filled with fiber, and offers a milk base of 25g of complete protein, fully devoid of artificial sweeteners or added sugar. The drink’s fiber comes from various fruits and vegetables, including spinach, broccoli, kale, pumpkin, chlorella, sweet potato, cranberries, shiitake and maitake mushrooms and sunflower seeds.
In addition to its notable amount of fiber and protein, todo provides 57% of a recommended daily intake of calcium and 21% of your recommended daily intake of iron, not to mention that it’s an active source of support in efforts around weight loss, muscle building and recovery and gut health.
KANSAS CITY — For the food industry, the expression “sequential improvement” has emerged as a candidate for catchphrase of the year, or at least the first half of 2024. Used by executives and investment analysts to demonstrate improving financial trends, the term has been intented to show optimism about prospective results for the balance of the year.
To date this year, the expression has appeared in BakingBusiness.com news articles, in quotes and otherwise, at a rate 260% greater than the average of the previous 15 years. Its popularity reflects that while sales volume figures have been persistently bad for the last several quarters, decreases at many companies had grown steadily smaller in the final quarter of 2023 and the first quarter of 2024.
Leaning into the sequential improvement trend, executives hypothesized the effects of ending emergency food assistance payments would be lapped in the later parts of 2024, and consumers would show signs of acclimating to higher prices for food products.
Optimism in the grain-based foods sector was fueled by US Department of Agriculture data showing flour production in April-June 1.9% higher than the same quarter in 2023. While up from the year before, production of 104.9 million cwts was below 2022 production and was just slightly above the average of 104.1 million cwts milled in the second quarter in the years between 2015 and 2020.
For some food and beverage sectors, second-quarter sales in several segments, particularly grain-based foods, suggest that reality is not playing out as the industry hoped. It turns out the adage “past performance is no guarantee of future results” also applies to the continuation of sequential improvement. At some point, the sequences stop improving.
Of the top 25 food and beverage categories tracked by Circana, 12 experienced sales unit volume decreases in the 13 weeks ended June 30, versus the same quarter in 2023. Another five enjoyed growth of less than 1%.
The widest decreases were sustained in chocolate candy, down 11.9%, and non-chocolate candy, down 7.9%. Among grain-based food categories, bread and rolls were down 1.5%; cookies, down 0.1%; ready-to-eat cereal, down 1.8%; crackers, down 1.8%; snack bars/granola bars and clusters, down 3.6%; and salty snacks, down 0.7%. Also losing ground during the period were numerous beverage categories, including beer, down 1.8%; wine, down 5.1%; and ready-to-drink tea and coffee, down 6%.
The quarter was not without winners. Taking volume at the expense of grain-based foods were several dairy categories, including natural cheese, up 2.2%; dairy milk (now a smaller category than natural cheese), up 0.1%; yogurt, up 5.1%; and ice cream, up 1.6%.
Consistent with these trends, the food category has widely underperformed the overall stock market so far this year. The Grain-Based Foods Index through the end of July was down 3%, versus a 17% gain for the S&P 500. Performance on a company-by-company basis was more erratic, as exemplified by ADM, down 12%; Bunge, up 11%; Flowers Foods, down 1%; General Mills, up 1.3%; Kraft Heinz, down 9%; Mondelez International, down 8%; and Grupo Bimbo, down 21%.
Halfway through the third quarter, flour milling sources have indicated flour demand is flat at best, suggesting the food industry continues to await a recovery in consumer demand.
Even as they spoke hopefully about prospects for later in the year, many companies left guidance unchanged and offered words of caution. For example, Grupo Bimbo said it was hesitant to raise guidance “mainly because the overall consumer environment in North America continues to be challenging.”
Flowers Foods’ leadership said it was comfortable with the middle of its financial guidance but also recognized the risk from “the potential impact of an uncertain economy on the consumer and promotional environment, and the transition of our California distribution.”
It is now four years since what had been generally predictable patterns in consumer consumption were disrupted. When it is that demand trends will regain the consistency that had been the norm in the past remains to be seen.
Ursula von der Leyen, President of the European Commission, at a press conference on the publication of the final report of the Strategic Dialogue on the Future of EU Agriculture, 4 September 2024. Image credit: European Commission
Consumer health and the financial stability of farmers are at the heart of a new EU policy framework, which stretches across the entire food chain, from agriculture to consumers, on the path to a more sustainable future for the planet.
Conceived by European Commission President Ursula von der Leyen in September 2023, the Strategic Dialogue on the Future of EU Agriculture has finally put forward its recommendations – 14 in total addressed in a 110-page document entitled ‘A shared prospect for farming and food in Europe.’
The aim is to unite farmers, manufacturers and grocers in the EU’s 27 member states toward achieving a comprehensive set of objectives laid down by the Commission (EC). Those agriculture and food industry players currently tend to have disparate agendas, creating a roadblock to a common policy and strategy.
Discussions toward achieving common and fair goals, though not yet set in stone, began in January and brought together 29 “major stakeholders from the European agri-food sectors, civil society, rural communities and academia”.
What does the framework entail?
In a rather large nutshell, some of the key aims include: fostering healthy diets through plant-based foods; the reformulation of foodstuffs by manufacturers to make them healthier; more transparent planet-friendly and animal-welfare labels; protecting children from unhealthy food marketing; and making food affordable for low-income consumers to promote health.
It all starts with farmers, with the Dialogue recommendations seeking to ensure their survival in the transition away from, or at least a reduction in, animal meat consumption through aid programmes and support. The framework also aims to help in achieving targets to cut greenhouse gas emissions (GHG) from livestock.
Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Company Profile – free
sample
Your download email will arrive shortly
We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form
By GlobalData
Professor Peter Strohschneider, who chaired the panel, said an agreement has been reached “on a shared conceptual consensus for the future of farming and food in Europe, through a new culture of mutual understanding and communication”.
Or as von der Leyen framed it, a “move beyond a polarised debate and create trust among very diverse stakeholders”.
Strohschneider, who once chaired Germany’s Commission for the Future of Agriculture, added: “These joint perspectives, agreed by a diverse and representative group of stakeholders in this sector, form a holistic and societal approach to addressing the EU’s environmental, climate, economic and socio-political goals.”
Key parameters
“Making healthy and sustainable choices [the consumer]; governance change and new culture of cooperations; reducing GHG emissions in agriculture; [and] creating pathways for sustainable animal farming in the EU” are four key parameters for food among the 14 recommendations.
It was recommended within the guidelines that the EC should, by 2026, form a so-called ‘EU Action Plan for Plant-based Foods’ with an aim “to strengthen the plant-based agri-food chains from farmers all the way to consumers.”
Also, within the healthy choice framework, and given the “significant scientific advancements on nutrition”, EU member states should, when they haven’t already done so, adopt “food-based dietary guidelines (FBDGs) with a view to integrating sustainability and develop strategies to foster” healthy eating.
In terms of finance, an Agri-food Just Transition Fund (AJTF) should be formed, the Dialogue forum suggested, in order to “finance a successful transition of the European agri-food sector”.
Funding projects for the EU agriculture sector would include moves to sustainable farming, and financing “innovative technology projects” for environmental initiatives such as cutting GHG emissions, pollution, water consumption and fostering biodiversity.
To encourage collaboration among the players in the agri-food chain, or a “new culture of cooperation” – one of the other 14 pillars – the Dialogue committee has recommended all those participants, as well as civil society organisations and scientists, form a joint European Board on Agri-food (EBAF).
It should be tasked with identifying “strategies necessary to the implementation and further development of the Strategic Dialogue’s conceptual consensus in order to make agri-food systems more sustainable and resilient”.
Background context
We are all being told one way or another that we are overweight, or even obese, perhaps consuming too many unhealthy foods such as ultra-processed stuff, and sugar- and salt-laden foods. Diets contain not enough fruit and veg and too much meat some would say, with environmental consequences for the latter. As a consequence, there are concerns about the burden on health services from conditions such as diabetes, high blood pressure and cholesterol, and heart disease, culminating in early deaths.
Food manufacturers, although not in generalised terms, have been accused of putting sales and profits before health, and are increasingly being urged to reformulate recipes along health and nutrient-intake guidelines.
Taxes have even been implemented or proposed to encourage them to do that. And consumers, too, are targeted with the removal, in some cases, of multiple-buy offers from stores and sweets and other goodies removed from checkouts.
Some food labelling systems have been criticised for lacking transparency or even for being misleading, with Nutri-Score in Europe getting increasing flak – Danone has recently backed away.
Farmers’ plight
On the environmental front, endeavours to lower greenhouse gas emissions and ultimately meet various net-zero targets – for governments, food manufacturers, grocers and farmers – were emphasised.
Farmers in the EU have long claimed they are and have been squeezed on price from food retailers, with some quitting or going out of business as profit margins evaporated. And, as the world grapples with climate change, they have recently been hit with floods, drought and wildfires.
The Ukraine war has hurt too, with fuel and fertiliser prices going up.
Earlier this year, protests by farmers erupted across the EU in demonstration of their plight, with a key thrust of their anger vented at the bloc’s so-called Green Deal, creating an added financial burden without funding to meet the objectives.
Meanwhile, the EU’s Common Agricultural Policy (CAP) tends to favour large-scale farmers over small counterparts in terms of the size of the subsidies proffered to keep meat and other goods competitive with overseas imports.
The Dialogue’s mandate, when talks began, was to find solutions to some of these grievances, including providing farmers with a “fair standard of living” and ways “to support agriculture within the boundaries of our planet and its ecosystem”.
Professor Strohschneider said in the Dialogue presentation: “We all want a thriving food and farming sector across our continent, that rewards our farmers, citizens and precious natural heritage. With this report, we have a very solid foundation for the development of a new vision for food and farming in Europe.
“All too often, agricultural production and its natural preconditions have become entangled in a lose-lose constellation.
von der Leyen and Peter Strohschneider, chairman of the Strategic Dialogue on the Future of EU Agriculture, present the final report, 4 September 2024. Credit: Dati Bendo / European Commission
“With a view to the equal necessity of food and natural resources, it is clear, however, that this lose-lose situation cannot be resolved in either direction alone – neither through the promotion of environmentally incompatible food production, nor through environmental protection that ignores the socio-economic conditions of farming, nor through a mere postponement of one or the other.”
The Dialogue report’s executive summary concluded: “The transition must be designed in such a way that it leads to agri-food systems that are more resilient, sustainable, competitive, profitable, and just.”
What about food?
Under the ‘making the healthy and sustainable choice the easy one’ directive, the aim is to improve access to healthy diets, making them “affordable and attractive” for consumers in the EU.
Noting a trend in the bloc toward plant-based options over animal-based products, the trend should be encouraged and supported with the adoption of an EU Action Plan for Plant-based Foods.
Non-profit organisation ProVeg international said the plan would represent a “seismic shift” toward what it called “climate-friendly food” and such a plan would likely drive development of the category and take-up by consumers.
“The EU is listening to the science and is aware of the significant impact of climate change and how food can impact greenhouse gas emissions, biodiversity, water usage, and human health,” Jasmijn de Boo, the global CEO of ProVeg, said.
“It is heartening to know that a serious recommendation has been made to promote climate-friendly, plant-based foods that will give nature a fighting chance to recover.”
Some countries within the EU are already taking strides to foster growth and development in plant-based foods.
The German government allocated €38m ($41.9m) this year to foster growth in plant-based, precision fermentation and lab-grown meat proteins.
The European Commission has also committed €50m to an accelerator to develop food made using precision fermentation and algae, adding to a sector investment of more than €100m through Horizon Europe, according to GFI.
In 2023, Denmark’s government launched its Action Plan for Plant-Based Foods, building on a sector investment of around $168m in 2021. Meanwhile, in Spain, officials in Catalonia have invested a total of €19m since last year, including in R&D for alternative proteins and a dedicated research hub, GFI said.
It has been advocated that funding from governments, as well as public and private partnerships, is vital if plant-based food and proteins are to have any chance of competing on a level playing field with animal meat, let alone enabling the category to become more mainstream or even mass market.
Animal meat subsidies in the EU agriculture sector are a key stumbling block. The Strategic Dialogue forum has recognised that and is proposing funding for farmers to support them in the transition, noting average consumption of meat in the EU currently exceeds dietary recommendations.
“It is important to use the Agri-food Just Transition Fund (AJTF) to support those affected. While also reinforcing the positive externalities that the sector already provides, this support should facilitate a smooth adaptation process, helping farmers, producers, and workers,” the Dialogue text reads.
“As this transition will impact the income and economic viability of livestock farmers and producers, policy interventions, therefore, should address not only consumers but also food providers, producers, manufacturers, and retailers.”
Consumer associations, NGOs, health organisations and educational establishments should work with EU member states to encourage sustainable and healthy diets to reduce environmental impacts, the recommendations urged. To get there, an awareness campaign should be launched across the bloc.
It’s great to see the report recognise that food innovation can coexist alongside our culinary traditions.
Seth Roberts, The Good Food Institute
Seth Roberts, a senior policy manager at the European division of non-profit organisation the Good Food Institute, welcomed the directive for public-private funding partnerships in plant-based foods, which he suggested would help foster growth and innovation.
“It’s great to see the report recognise that food innovation can coexist alongside our culinary traditions, as well as acknowledge the importance of boosting research investment,” Roberts said.
“The Strategic Dialogue points to what EU food policy needs – more progress and less polarisation – and we hope that policymakers will now get to work to build a secure, healthy and sustainable future food system for Europe.”
EU food labelling legislation should also be reviewed, the report recommended, to provide consumers with science-based and transparent information pertaining to sustainability and animal welfare.
To shield children from foods high in fat, sugars and salt, it was suggested the EC should look into the effectiveness of preventive measures on marketing campaigns with a view to issuing feedback by 2026 followed by legislation, if necessary.
Similarly, food manufacturers should “step up efforts and be better incentivised to implement policies and collaborative initiatives where feasible, to improve the nutritional composition and environmental impact of food”.
What happens next?
Subsidies for the EU agriculture sector under the CAP should also be reviewed in what the Dialogue proposals suggested was to come up with a policy that is “fit for purpose” and to encourage a transition to sustainable food consumption.
The report recommended: “The current policy needs to be changed to meet current and future challenges and to accelerate the ongoing transition of agri-food systems towards more sustainable, competitive, profitable, and diverse futures.”
Funding for farmers is an essential that runs through the policy recommendations document and also includes backing for GHG goals.
Policies should entail: “The promotion of integrated resource management practices, including water and nutrients; support in the form of grants covering costs for installing new renewable energy systems on farms, reducing emissions and enhancing energy independence; investment in methane-reducing technologies, including to research and develop such technologies in livestock farming.”
The recommendations set out are intended to “guide the work” of the EC under a second five-year term for President von der Leyen, starting in 2024, in “shaping its Vision for Agriculture and Food”.
In conclusion, the report said: “It will be important for the EC in its various portfolios, the European Parliament, the Member States of the Union, and the organised interest groups of the agri-food system to adopt the shared considerations and recommendations.
“They must develop and concretise them further and translate them into bold and swift decisions for the benefit of the EU farming community, food system, and rural areas, and ultimately for the benefit of the European society.”
Sign up for our daily news round-up!
Give your business an edge with our leading industry insights.
September 11 Webinar Highlights New Channels for Supplier Engagement
WASHINGTON – Equitable Food Initiative, the workforce development and certification organization that partners with growers, farmworkers, retailers and consumer groups, announces the launch of a supplier program within the Learn, Assess, and Benchmark (LAB) platform of the Ethical Charter Implementation Program (ECIP), which is available to suppliers beginning this week.
Until now, the learn, assess, and benchmark channels have been available exclusively to growers. Starting on September 3, suppliers will gain access to Supplier LAB, which includes a host of resources to support their grower partners to align with the Ethical Charter. Suppliers will be guided through carefully designed assessment questions and will be able to benchmark and prioritize areas for improvement. Most importantly, Supplier LAB will enable suppliers to demonstrate their alignment with the Ethical Charter to their retail and food service customers.
Diona Monroe, Data Manager for EFI, emphasizes the significance of this expansion. “Currently, there is no standardized platform for major produce buyers to assess the extent or impact of social responsibility efforts within their supply chain. This new component of ECIP gives suppliers the ability to demonstrate their leadership and receive recognition for their hard work to promote responsible labor practices. Retailers also get a comprehensive view of labor management systems in their supply chains, moving beyond traditional audits to build capacity and assess labor practices.”
Participating buyers will benefit from aggregated data and industry-wide reports that can help them identify trends and develop targeted resources to support their suppliers. In addition, retailers will begin to see supplier engagement scores calculated through the use of the new Supplier LAB in early November.
“We are excited about the impact this next phase of ECIP is expected to deliver by engaging our suppliers in new actionable ways,” said Jim Hancock, Vice President of Produce & Floral at Sam’s Club. “As suppliers begin to self-assess their own management systems, it will allow us to better support them and their growers with additional tools and resources, and to ultimately recognize the suppliers who are most engaged in developing responsible labor practices.”
To introduce the new ECIP supplier program, EFI will host a webinar on Wednesday, September 11, at 11:00 a.m. PDT. The webinar will include a demonstration of each of the learn, assess, and benchmark channels, guest speakers and a live Q&A. More information and the link to register can be found at equitablefood.org/webinars.
Piloted in 2021, and fully launched in 2023, ECIP LAB is an online platform that provides tools and resources to suppliers and growers to strengthen labor management systems and align with the industry’s Ethical Charter on Responsible Labor. ECIP is designed to connect buyers, suppliers, and growers in a uniform commitment to improving labor management systems and highlighting best practices across the fresh produce supply chain.
Equitable Food Initiative is a capacity-building and certification nonprofit that works to improve the lives of farmworkers and drive business performance by integrating worker voice and engagement throughout the supply chain. As a multistakeholder organization, EFI brings together growers, farmworkers, retailers and consumers to create assessment, training and organizational development programs that support continuous improvement and address the industry’s most pressing problems. For more information about Equitable Food Initiative, visit equitablefood.org.
About ECIP
The Ethical Charter Implementation Program is a collaboration among retailers, grower-shippers and nonprofit organizations to create greater transparency regarding labor practices in the fresh produce industry, using capacity-building rather than audits. ECIP helps the industry capture, measure and enhance efforts to fulfill the principles of the Ethical Charter on Responsible Labor Practices.
