Upsides of foodservice channel
emailing coupon codes?, the worst time to procure cashews is now, organic produce gets sprayed on the wet rack, regenerative Cheez-Its coming soon
3-min read
The case against discount code email marketing
It’s like LMNT knows what I’m thinking. The trick to food+bev marketing is to get in the minds of your people. Spending a minute in this article further ingrains the brand in my psyche. Notice there’s no discount code or call-to-action (CTA) purchase prompt. Just info. Good job LMNT.
Selling into foodservice (think commissaries, hotels, hospitals, restaurants…) is trending with CPG brands
Neutral Foods explained their rationale to me below (they recently landed their milk into Shake Shack). I also think this is a smart move for Neutral because fewer young people nowadays say climate is a purchase driver (McKinsey), which I think speaks to the “climate fatigue” people are feeling (excellent article on this in the WSJ).
One of the primary upsides of the Foodservice channel is that it can be activated relatively quickly vs Retail. With Retail, brands normally have a specific window to present an idea to a buyer. Then they find out months later if their product was approved. Then after that there is still a long delay before the product can actually make it to the shelf during the retailers reset window. For example, many retailers hold their fluid milk reviews in June or July for resets that happen the following January. So even if you have an amazing product that the buyer likes in June, it’s still another 6 months before it can even be placed on shelf. Of course there can be exceptions and early cut-ins, but the normal process is very long.
As an alternative example, we went from our first meeting with Shake Shack’s team to getting their first order placed in about 6 weeks instead of 6 months. Of course they don’t always move that quickly, but the ability to execute on an idea in Foodservice is often much faster than in Retail.
There are economic considerations of course, but those can often be pretty variable based on the circumstance,… [a] huge part of that is related to the distribution channels and how much control and financial leverage a very small number of distributors hold.
Worst cashew market for buyers in >25 years
Cashews are nearly impossible to get your hands on lately and prices are sky high. If you are not contracted, you’re in a bad spot market. Like with cocoa, El Niño caused yield problems. Compounding the problem is a stark lack of visibility into the cashew harvest, but I have it from a source it’s up to 35% short.
Also, oat prices will rise
Ambrook Research → Oat production is down again which means prices will rise. On top of yield problems, oats are not a permanent crop so farmers not seeing returns won’t plant again, therefore swings will continue, despite efforts like the USDA Small Grains Crop Provision which now includes revenue protection for spring oats.
I’ve been waiting for this
The regeneratively-grown wheat will be milled with conventional wheat in what I guess will be a mass balance mixture. Regenerative Cheez-Its will be sold at Ahold Delhaize USA brands starting in 2025. Source
What is and is not alcoholic is becoming confusing
Picture kids on summer break reaching for some SunnyD. Some industry groups think it’s a problem too and are joining together to issue a commitment to responsibly market and merchandise crossover alcohol products – i.e. alcoholic versions of traditionally non-alc beverage brands.
I’m with a client on a project that could bring meaningful added value in food, soil, and fuel streams in the nut industry. It’s a long-tail project. This is an area I don’t know a lot about, so stuff like this makes me stop in my tracks. Presented by decarbonization proponent Nat Bullard —
Yes, grocery stores do spray chemicals on produce. Organic too.
If we are serious about food waste, we are going to have to be OK with this. Bacterial growth is a major factor in the spoilage of fruits and vegetables, and our gov’t made this roadmap announcement last week to reduce the amount of edible food that ends up in landfills.
I just learned about the spraying when an alarmed friend DM’d this post
So, I called in a trusted produce buyer and he confirmed use.
Save mart and sprouts definitely do. I imagine most retailers do with a wet rack. It’s completely harmless. I had meetings with ChemStar/produce maxx when I was at save mart. I don’t remember it being bleach. It was similar to chlorine in a pool. It’s all about the ppm. Believe me….the solution cost money so retailers aren’t over using it.
A pool is a good analogy. Chlorine is a deadly chemical, but in trace amounts it’s harmless and keeps pools clean of bacteria.
By reducing the microbial load, ProduceMaxx helps extend the shelf life of fresh produce. And it’s approved for USDA organic, which allows for electrolyzed water (hypochlorous acid) under the Safe Drinking Water Act which you can read here.
I went in for $9 raw milk — new item at Cost Less, a Kroger discount grocer in CA. Bird flu seems to have spared CA dairies, so I feel OK about it.
I’ll be at IFT this year. LMK if you’ll be there too!
All my best,
Jennifer
I'm surprised that a brand like Cheez-It is incorporating regenerative this early. Very exciting!
Such good information. However, the future of food looks terrifying.