Weekly Roundup – Week of 2.27.2023
March 3, 2023
This week’s roundup highlights notable food and beverage-related news curated by our team of strategists and food enthusiasts:
The Chicken Sandwich War Resulted In Big Wins On Menus
What once was a marketing stunt to debate and determine which quick-service chain offered the best-fried chicken sandwich in 2019, quickly shifted from being a menu trend to a full-fledged menu mainstay. Popeyes led the battle in August of that year, rapidly selling more than 10 times the number of sandwiches the chain had predicted within the first few days of the launch – leveraging social media to engage and garner support from consumers. By 2021, Popeyes’ average-unit volumes rose by $400,000. Soon, other quick-service and full-service competitors such as Chick-fil-A, Wingstop, KFC, Shake Shack, and others joined the debate, trying to steal share while realizing increased traffic and sales. Flavor profiles evolved, heating up sales even further with the insurgence of the Nashville Hot Chicken. Today, variations of fried chicken sandwiches are now menu staples across restaurants and non-commercial venues. Experts anticipate the popularity to remain strong in the foreseeable future. Read Article.
4 Alcohol Trends Expected to Refresh C-Store Beverage Sales
Scott Scanlon, executive vice president of beverage/alcohol at IRI Worldwide, told C-Store Dive, “Total liquor sales in c-stores is nearly equal to food stores — $28.5 billion versus $28.7 billion.” Ready-to-drink spirits and beer are the primary growth drivers, and industry experts reveal four trends they predict will refresh sales even further in 2023. Beer imports surged 11.4% over domestic brands, according to IRI, becoming the fastest-growing alcoholic beverage in c-stores. Stores that prioritize walk-in coolers and elevate consumer experiences inside their walk-ins could help increase import sales and beer sales in general even more. Less restrictive liquor laws are another trend expected to boost sales. More states are passing cocktails-to-go legislation, expanding licenses to be able to sell alcohol from 8 a.m. to midnight, and growing their e-commerce business to encourage consumers to think of c-stores as destinations for alcohol purchases. See All 4 Trends.
Instacart Opens Up Service to B2B Customers
Instacart launched Instacart Business this week, a new service allowing businesses to shop for and place online orders of more than 1.5 million products. The company is leveraging partnerships with bulk suppliers like Costco Business Center, Staples, Restaurant Depot, and Gordon Food Service in an effort to help small businesses save time, money, and resources. Benefits will include same-day delivery, discounted no-rush delivery, and long-distance delivery with re-ordering and auto-order capabilities and options to use business credits. Read More.
Are Vertical Farms Drying Up?
This week’s Fast Company article uncovers reasons the vertical farming industry is in danger, and gets to the root of profit losses and farm closures. While indoor farms help conserve energy, supplement the supply chain, and have a positive impact on climate change, they are also expensive to build and run – costing millions of dollars in upfront investments and requiring specialized, costly lighting to help crops grow. AppHarvest, an indoor farm running high-tech greenhouses, reported net losses of $83 million through the first nine months of 2022, causing outrage among investors. Fifth Season, an indoor farm that once grew tens of thousands of pounds of lettuce for salad kits, paying high salaries for engineers, abruptly shut its door last October, leaving dozens of employees out of work. The economics of vertical farming has shifted. Henry Gordon-Smith, founder of Agritecture, a firm that consults on urban farming projects, says “We don’t actually see a scenario where in the next 10 years vertical farming will compete with field-grown at scale in North America.” Learn More.
Sweet Treats
Iconic brands are invigorating the desserts and snacking categories with innovative flavors and formats.
- Hostess has debuted Kazbars, a new item featuring creamy, crunchy layers of chocolate caramel or triple chocolate with sweet, crunchy candy pieces. Kazbars borrows existing ingredients Hostess uses in its other popular snacks and repackages them into a new product offering.
- Baskin-Robbins is revitalizing the ice cream category with its launch of new Chick’n & Waffles Ice Cream as the March Flavor of the Month. Inspired by classic Chicken and Waffles, this new flavor features buttermilk waffle-flavored ice cream with crispy chick’n and waffle-flavored bites drizzled in a bourbon maple syrup-flavored swirl. The popular chain plans to host its first-ever Bottomless Brunch in New York City on Tuesday, March 7, 2023, and will serve free, unlimited scoops of the ice cream in a limited-edition ice cream cup.
- Finally, just in time for Easter, Brach’s will debut its first-ever Desserts of the World Jelly Beans inspired by global flavors: Chocolate Macaron, Strawberry Mochi, Churro, Apple Pie, and Lemon Sorbet. New jelly beans will be available at grocery stores, drug stores, and mass-market retailers nationwide throughout spring 2023.
