Category: Snacks & Confectionery

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.

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.

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Introduction: Mondelēz Backs Healthier Bakery Brand Urban Legend

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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.

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