Weekly Roundup – Week of 1.9.2023
January 13, 2023
Included in this week’s roundup is the latest food and beverage industry news curated by our team of strategists and food enthusiasts:
Plant-Based Product Growth Is Rooted In Innovation
According to an article published this week by The Food Institute, the pandemic period was an erratic time for the plant-based industry. However, consumer interest and trial of plant-based products bolstered the entry of new companies into the market space. This consumer curiosity surged in 2022 when “plant-based” was the most-searched term in food and beverage market research company Datassential’s ReportPro library. Despite the economic challenges we’re currently facing, Mike Kostyo, associate director & trendologist with Datassential told The Food Institute, “moving forward, innovation will be essential to make products that are both price competitive and taste better.” While we may see fewer plant-based products hit the market over the next couple of years, dedicated marketing efforts should re-energize consumer interest. Opportunities the article cites for growth include ingredient enhancements that help reduce processing and boost flavor, improvement in the availability and cost of proteins and other ingredients, and the increased focus on food security and sustainability initiatives. Learn More.
Could Improving Fulfilment Efficiency Increase Online Grocery Profitability?
More than three-quarters (77%) of surveyed digital grocers ranked “improving fulfillment efficiency” as the top priority for this year, noting that most digital operations were unprofitable for grocers in 2022, according to a new survey conducted by Incisiv and Wynshop’s Grocery Doppio industry research platform. Even though digital grocery sales reached $128B in 2022, the industry lost $298M in margins with their online business, the survey found. The research predicts that many grocers will streamline operations and right-size profit potential by shifting away from using third-party resources and start bringing e-commerce services in-house such as digital media, handling pickup orders, and deploying AI and robotic fulfillment. Read Article.
Consumers Will Continue To Fill Up On Snacks At C-Stores
Despite price increases saddling the food industry, Americans spent millions on snacks at c-stores. In fact, in 2022, snack sales in c-stores surged 12% to nearly $11.6 billion, according to IRI and 210 Analytics. Salty snacks, beef jerky, and other meat snacks drove sales, while consumers also supplemented their purchases with both healthy and indulgent snacks. Demand for on-the-go snacks has also led to an uptick in sales as more adults head back to offices – partially or full-time – and school activities and busy schedules have left consumers opting for more convenient, grab-and-go items. In 2023, experts predict we’ll see more sustainable, healthy options fill the shelves including plant-based, high-protein, and gluten-free products. Read More.
Union Pacific’s Delivery Delays Have Amplified Supply Chain Shortages
Foster Farms has filed two complaints against Union Pacific for delayed corn shipments. Union Pacific claims weather issues have disrupted delivery, but Foster Farms cited “systemic problems” as the cause and that “Union Pacific could do more to improve its allocation of crews and locomotives”. As stated by Foster Farms, delays in shipments have reduced its corn inventory leading to feed supply shortages for dairy farms and chickens. In a filing with the Surface Transportation Board (STB), the economic regulator overseeing the country’s freight railroads, Foster Farms said, “The point has again been reached where hundreds of thousands of dairy cattle are not being fed, and when millions of chickens will starve to death because of UP’s service failures.” The STB directed Union Pacific to deliver five trains by January 3, but only one arrived on schedule, according to Foster Farms. The company has pursued alternative sources for corn and transportation to combat shortages, but roughly 400 trucks are needed to ship the same amount as one Union Pacific train. STB, Union Pacific, and Foster Farms continue to work together to resolve these transportation issues. Find The Article Here.
More To Enjoy
In celebration of International Women’s Day on March 8, M&M’s has launched its first-ever all-female packs that feature brown, green, and purple female spokescandies. “As part of M&M’s ‘Flipping the Status Quo’ campaign, the brand is committed to supporting organizations who are uplifting and empowering women – to the tune of up to $800k.” Consumers can also nominate incredible women in their lives for a chance to be featured on M&M’s platforms in addition to receiving $10k grants. Oscar Mayer is also pursuing consumer participation by seeking drivers to steer their fleet of Wienermobiles across the country. The hot dog supplier is looking for twelve graduating college seniors with a BA or BS degree who are willing to visit 20 states and cover 200,000 miles within a year. Applications will be accepted through January 31. And lastly, PepsiCo has introduced a new lemon-lime soda called Starry to compete with Coca-Cola’s Sprite and as a potential replacement for its Sierra Mist offering. Starry targets Gen Z consumers, and PepsiCo refers to the new offering as a “purpose-driven brand built for Generation Z” with fun packaging and a formula that offers a “crisp, refreshing bite”. Time will tell if PepsiCo can steal market share from Coca-Cola.
Stop back every week for more of our favorite, trending news stories.
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