• 🎙️ Now Streaming: CPG Week
  
• 🌊 Maine Crisp Co. Weathers Flood Waters
• 🍟 Actual Veggies Expands Into Frozen Fry Segment
• 🤝 Sambazon Acquires Açaí Business From SunOpta
• 📍 Aldi Plots Major U.S. Expansion

The strength of the U.S. economy rests in the hands (or wallets) of consumers, according to the March edition of the National Retail Federation’s Monthly Economic Review.

All eyes are on “how consumers will respond the next few months to the Federal Reserve’s ongoing efforts to tame inflation,” the report states. “While inflation is down from its peak, it has slowed less than expected and is still an important problem that remains to be solved.”

The federal Consumer Price Index (CPI) clocked the January inflation rate at 3.1% year-over-year, down from 3.4% and about a third of the 9.1% peak in June 2022; yet still far from the Fed’s 2% target.

On the bright side, the CPI calculated that commodity-based prices (including retail goods) were up only 0.1% YoY in January; whereas, prices for services were up 4.9% over the same period.

That’s not to say consumers are still not feeling the pinch at checkout – a pinch that has even caused President Biden to rail against “shrinkflation” during last night’s State of the Union speech. 

Some states even have attempted to provide relief by rewriting tax laws, cutting grocery fees and garnering mixed reactions along the way. Last week, Oklahoma’s State Senate passed a bill (HB 1955) to eliminate the state's 4.5% grocery tax. Illinois’ Governor J.B. Pritzker also signaled an appetite for eradicating the state’s grocery tax. While Tennessee state leaders are keen on the idea, they’ve taken a much more fractional approach.

The Volunteer State is weighing a proposal to give control over grocery taxes to counties and municipalities. This would allow local leaders to decide on tax reductions while weighing how they might impact community services and infrastructure projects.

In the grand scheme of grocery tax cuts, Tennessee's approach may be the most common sense. A group of Illinois mayors and state representatives have expressed concern with Illinois Gov. Pritzker’s plan, saying it is “unacceptable” and will cost local governments millions of dollars.

“This is not a tax cut. It’s a political shell game,” said state rep Martin McLaughlin (R- Ill.) during a press conference. 

On this week’s episode of CPG Week, Nosh managing editor Monica Watrous and senior reporters Brad Avery and Lukas Southard dig into recent food and beverage quarterly earnings reports. Lukas kicks the conversation with an explanation on how WK Kellogg Co.’s CEO placed the company, and its sister business Kellanova, in hot water when a “cereal for dinner” marketing push went awry.

👹 Brad discusses Celsius’ recent announcement (spoiler: it has surpassed $1 billion in sales) and how it is continues to keep Monster on its toes.

🌱 Monica goes over the lackluster numbers coming out of Beyond Meat and Oatly.

🛒 The team sifts through news that Whole Foods is making a push for small footprint stores.

Listen now on Nosh.com and subscribe to get a fresh episode every week.

Like what you are listening to? Please don’t hesitate to rate our show and leave a review on your podcast platform of choice.

It was supposed to be a rough, but not catastrophic, December storm in Central Maine. But it ended up flooding Maine Crisp’s one-year-old production facility and destroying nearly all of the cracker company’s product. 

🧹 The company spent the next month cleaning up and was back to baking by the end of January – a massive feat as it prepared for next week’s Expo West and new national distribution partnerships rolling out in the first half of the year.

🤝 Maine Crisp is preparing to go nationwide in Whole Foods in April with its Better Than Buckwheat crackers, is readying for a new partnership with Thrive Market and will also be nationally distributed with National Co-Op Grocers. 

☹️ The company estimates it lost around $250,000 of finished product, ingredients, packaging material and office supplies during the flood.

Read more about the harrowing tale on Nosh.com

Plant-based burger maker Actual Veggies has launched Super Fries, a line of frozen fries made with potatoes plus chickpeas, cauliflower, pea protein, chia seeds and avocado oil. 

🍠 Developed in partnership with online grocer Hungryroot, varieties include Classic Potato, Purple Sweet Potato and Sweet Potato. The products will roll out to Sprouts Farmers Market stores nationwide in April. 

💭 “We’re really looking at Super Fries almost like what Poppi did to soda or Banza did to pasta or Oatly did to milk. Nobody’s really reinvented the fry,” said co-founder and co-CEO Jason Rosenbaum.

Read more about the brand’s recent extension on Nosh.

Frozen açaí category leader Sambazon announced today it has acquired SunOpta’s frozen açaí and smoothie bowl business, effectively doubling the Brazil-based company’s manufacturing capabilities and expanding operations further in the U.S. 

🍍The acquisition will also allow Sambazon to innovate with new dry toppings, savory toppings and organic fruit inclusions in addition to expanding its bases to include more tropical fruits, purees and seed bowls, as it eyes an additional expansion into quick-serve restaurants. 

💭 “This strategic acquisition signifies a major advancement in Sambazon’s ability to distribute nutritious, sustainably sourced superfoods more broadly, building a strong and diversified bowl business to deliver exceptional value and impact in the health food sector,” said Ricardo Perdigao, Sambazon Global CFO and COO.

Discount grocery retailer Aldi announced this week that it plans to open 800 new stores by 2028 following its acquisition of Southeastern Grocers (SEG). The expansion will include both organic growth (i.e. totally new stores) as well as SEG store conversions. 

🛒 SEG operates grocery stores under the Winn-Dixie and Harveys Supermarket banners; Aldi plans to convert about 50 of those stores to its flagship discount banner.

🆕 The German grocer also plans to add about 330 stores across the Northeast and Midwest while strengthening its presence on the West Coast with new stores in Southern California, Phoenix and an expansion into Las Vegas. 

🌎 The international grocer chain currently operates more than 2,000 stores in the U.S. and over 12,000 stores spanning 18 countries around the world; the retailer also owns U.S. based discount grocer Trader Joe’s. 

How can a brand stand out among thousands of others exhibiting at the show? Adam Spriggs, founding member of The Angel Group, shared his thoughts for Nosh’s Unofficial Guide to Expo West. Spoiler alert: It’s not another tote bag or t-shirt.