Plus, more food industry news and a fresh CPG Week episode͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
NoshFebruary 20, 2025
DAILY BRIEFING
Today's news & insights for the food industry.

In this issue of Daily Briefing

  • ⚠️ Walmart Warns of Slowdown
  • 🚀 New SKU Cohort Released
  • 🏭 Blow Pop Expands In Tennessee
  • 🌮 Milk Bar Tacos?
  • 👀 The RFK Jr. Effect On CPG

📰 Today's Top Story

👀 David Adds More Artificial Ingredients, But Will Consumers Care?

👀 David Adds More Artificial Ingredients, But Will Consumers Care?

Less than six months since its debut, the gold-wrapped, high-protein David bar is rolling out a new recipe featuring artificial sweeteners and flavors

The brand’s co-founders, Peter Rahal and Zach Ranen, claim the new formula improves the taste, texture and shelf life and cited studies showing the safety of ingredients now used in the bars.

What’s in: Maltitol, sucralose, acesulfame potassium and artificial flavors (which, according to the co-founders, are “chemically the exact same as a natural flavor”).

What’s out: Polydextrose, stevia and monk fruit.

What’s not changing is the macronutrient profile – David’s true differentiator. A bar still contains 28 grams of protein with 150 calories and 0 grams of sugar. 

Why are we watching this? Well, ultraprocessed foods are increasingly under fire. Also, artificial sweeteners and flavors are prohibited ingredients at Natural Products Expo West (i.e. a major event for the industry), and ace-K and sucralose are banned at Whole Foods Market (read: limiting David’s distribution options at an integral natural retailer). 

Still, that may not matter, according to some accounts. Does a premium protein bar brand need the natural channel to succeed? And will wellness-minded consumers embrace the new formulation? 

Sure, David is “highly processed… but it's ideal for building muscle and decreasing fat,” Ranen argued.

“Highly processed foods can be great for you, and that's what we're creating at David. We are for the consumers who can recognize this nuance – consumers who want the flexibility to consume processed foods intelligently because processed foods can be a great asset in allowing for strong nutrition in a portable way,” he explained to Nosh via email.

When the brand launched last fall, critics balked at some of its “unrecognizable” ingredients, while others championed its “unparalleled” protein-to-calorie ratio, illuminating a diametrical divide in consumer attitudes toward health and nutrition. With its latest moves, influencer Andrew Huberman-backed David is committing more firmly to its stance – that calories matter more than “clean” labels.

Chime in, Nosh readers! Is clean label still a priority for health-conscious consumers? Send your thoughts to mwatrous@nosh.com.

Go Deeper: Inside Peter Rahal’s Evolution: Why RXBAR And David Are ‘Literal Opposites’

 

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✨ What You Need to Know ✨

⚠️ Walmart Warns of Sales Slowdown

⚠️ Walmart Warns of Sales Slowdown

Grocery giant Walmart warned of a potential sales slowdown in fiscal 2026, setting full-year revenue and profit targets below analysts’ expectations in its Q4 2025 earnings report today. The announcement sent shares tumbling 6% in pre-market trading. Here are some key numbers:

  • Revenue rose 4.1% year-over-year to $180.6 billion in the quarter, ending January 31.
  • Global ecommerce sales grew 16%, led by store-fulfilled pickup and grocery delivery, two services that have helped Walmart take market share away from competitors
  • Walmart is forecasting a net sales increase of 3% to 4% in 2026.

💭 “Wallets are still stretched,” CFO John David Rainey said in an interview with The Wall Street Journal, though consumers are still behaving as they have for several quarters, “with cautious but steady spending.” 

Go Deeper: Uncertainty Plagues Food Makers In 2025

 

🚀 New SKU Cohort Released

CPG accelerator SKU named the latest group of emerging brands to its Spring '25 Track including: Fairly Nuts, good dirt, Kobi, Niramaya, PetPaxCo, pi00a, Rookie's and Saint Rocco's Treats.

  • The 12-week program boasts a successful roster of alumni such as wildwonder, Siete Foods and EPIC Provisions
  • Participating brands are mentored by CPG leaders, exited founders, subject matter experts and investors, selected to address their brand’s specific needs

Go Deeper: Read up on the recent success of a SKU alum

 

🏭 Blow Pop Maker Expands Tennessee Facility

Blow Pops maker Charms LLC is investing $97.7 million to expand operations at its manufacturing and distribution center in Covington, Tenn., Gov. Bill Lee announced last week. 

⏪ Charms (established in 1912) has been making candy in Covington since 1973. It was acquired by Tootsie Roll Industries in 1988 and today produces Blow Pops, Mini Pops and Sour Balls. 

🧑‍🏭 Sixty-two new jobs are expected to be created once the expansion is complete, bringing Charms’ total employee headcount to nearly 500 people in Tipton County, per the announcement.

 

🌮 Milk Bar Tacos?

🌮 Milk Bar Tacos?
[Source: Taco Bell Corp.]

Just kidding…kind of. Milk Bar has teamed up with Taco Bell to introduce limited-edition Birthday Cake churros, combining the bakery, ice cream shop and CPG brand’s iconic flavor with “with a Taco Bell twist.”

This is the second time the two have collaborated, first launching Strawberry Bell Truffles in 2022. The new churros are available nationwide while supplies last.  

 

🎙️ Now Streaming: CPG Week

👀 The RFK Jr. Effect On CPG

👀 The RFK Jr. Effect On CPG

Robert F. Kennedy Jr. is already making his mark on the food system just days after his confirmation as secretary of Health and Human Services. The CPG Week team discusses the big industry issues to watch during his tenure and some of the fallout already underway at the FDA.

🍫 Could buying in Bitcoin protect chocolate makers amid the cocoa pricing chaos? The team examines why one startup is dabbling in cryptocurrency to secure its supply.

🥛 What is the cost of eliminating ultraprocessed foods from American diets? Why has raw milk become so political? The group ponders the consequences of action items on RFK Jr.’s agenda.

Listen to this week’s episode to learn more. Also available on Spotify and Apple Podcasts.

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

 

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Have feedback or a tip to share? Let me know at adeluca@bevnet.com.

That's all for today's Daily Briefing. We'll be back in your inbox tomorrow.

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