Food made out of other food, brand positioning you should consider, pea protein tariffs, and big brands aren't innovating
3-min read
The US will impose import tariffs on pea protein from China
PURIS Proteins LLC won antidumping and countervailing duty petitions against pea protein imports from China. China constitutes 29.2% of all pea protein imports, which China’s government subsidizes, at below fair value prices.
The FDA has messed up so badly on food safety we are likely going to get ANOTHER new agency —
Which maybe is good because they recently added this page to their website saying microplastics found in food are not a risk to human health despite this study.
Big brands aren’t innovating
Says a study by Mintel.
…between 2016 and 2020, only 25% of the growth of CPG was driven by leading brands, with small and medium-sized brands capturing 45% of growth and private label, 30%.
And you can tell by looking at easy meals
I’m jazzed about Heyday Canning and Proper Good, two brands disrupting Campbell’s and Stouffer’s. They are both heat and eat and boast super clean ingredient decks. I’m bullish on these brands, especially since Proper Good just cut their price to $4.99 at Walmart.
You can get Heyday Soups at Whole Foods and Sprouts, and Proper Good pouches at Walmart.
About Proper good cutting costs and lowering price — from their co-founder —
“We worked with the supply chain and removed packaging components that were adding a lot of costs, … [w]e’re now big enough to meet the minimums for printed films, so we can get rid of the box that covered the package,” he said. The increase in printed film orders helped save 30% on packaging costs. And moving from a six-pack to a 10-pack case orders saved another 5% to 10% per unit.
Data from Walmart showed that shaving off $1 per item increases conversion. —Modern Retail
If you are considering a redesign PLEASE take the time to understand this positioning principle
Excellently explained by Fred Hart —
Should traditional commodities be replaced in your new formulations?
I bought Voyage Hazelnut-free Spread and Peanut-free Spread expecting to have to spit them out. No way is something made from sunflower seeds and chickpea going to taste like Nutella or Peter Pan. But I was surprised.
These nut-and-cocoa-free spreads retail for ~$5 at Walmart.
Voyage Foods is addressing supply chain volatility in things like cocoa and coffee by reimagining their formulations. Because, as The New York Times reminds us, ag productivity for many global crops is in peril.
Voyage raised $52m, has patented technology, and is partnering with Cargill to distribute their alt cocoa. They’re going after foodservice with a coffee alternative that is 40% of the cost of commodity coffee, made from chickpea and rice hulls which are much more abundant and sustainable than coffee.
They’re also going after allergens. Here’s nut-free Voyage with Rudi’s Sandos —
I’ve reached out to co-founder Adam Maxwell to find out more about how Voyage will impact food+ag.
VP of Finance position now open at Hero Bread - apply here
All my best,
Jennifer