Legacy CPG companies are a goalpost for food industry entrepreneurs – they acquire, help to accelerate or on occasion, partner up with emerging concepts. 

The backing of Big Food can be a mark of success, while providing startups both the infrastructure and financial security needed to scale. And for conglomerates, tapping into the entrepreneurial ecosystem is an exercise for growing against trends and mining value through innovation – either via M&A or corporate venturing. 

But that dynamic may be shifting as large corporations struggle to succeed under their own weight and keep pace with rapidly changing demands and external pressures. 

In the post-COVID era, these companies have been forced to look inward, shifting strategies from acquisitions to divestments, winding down venturing arms and, in more than a few cases, executing large-scale restructurings. 

“The reality for big food conglomerates is that they are squeezed,” Peter McDonald, a former leader at General Mills and founding partner of consultancy firm McDonald Strategy Partners, told me. 

“In contrast, you have this cohort of innovators who have a very robust ecosystem of opportunity to start and scale meaningful CPG food businesses… [Emerging brands] are uncovering and serving need gaps in the marketplace that, for whatever reason, big companies either aren't uncovering or they're choosing not to serve.”

💡 We break down the state of the market, what conglomerates are really after, what contributed to Primal Kitchen’s standout success and ponder where AI comes into play in the full feature on Nosh. 

Read it now for exclusive insight from McDonald and Primal Kitchen co-founder Morgan Buehler Zanotti.

Allergen-friendly brand Absurd Snacks is expanding its reach nationwide with availability in all TJX Companies banners, a total of roughly 3,500 new doors.

Absurd’s Maple Cinnamon and Rosemary Sea Salt snack mixes will be sold in the retailers’ gourmet snack aisle, beginning with a rollout in HomeGoods this month.

TJX requires brands to sell at lower price points, but companies can save on distribution thanks to the retailer’s direct pickup and delivery model from co-packers.

The launch will be supported by a new co-man partner, capable of making up to 20,000 bags per shift compared to the brand’s previous production rate of 1,000 bags per day out of a commercial kitchen.

Read the complete update on Nosh.

ALDI unveiled a massive rebrand of its private label portfolio that includes the launch of the discount grocer’s first-ever namesake brand. 

• Several of its store brands will be replaced with the ALDI name, while others will bear new “an ALDI Original” labeling.
• The changes come as grocery retailers are investing more in private label programs, according to a new report from The Food Industry Association (FMI).

Go Deeper: Retailers Plan to Invest More In Private Label

Ingredient provider Upcycled Foods, Inc. has been awarded the BEAM Circular Research Grant from the Almond Board of California to explore how to create high-value ingredients from the almond hull byproduct.

• The 12-month project will explore product prototypes, processing viability of almond hulls into ingredients and market testing to determine commercial viability.
• While Upcycled Foods, Inc. dipped its toe into branded products, the company has spent the last few years as an ingredient supplier to food companies seeking to use byproducts.

“Almond hull-based ingredients meet real demand from food manufacturers and unlock profit potential for the growers and processors who power California’s almond industry,” said Upcycled Foods, Inc. president and co-founder Dalton Allen. 

Catch Up: Upcycled Foods, Inc. Shifts From CPG To Focus On Ingredients

It’s Hump Day! Here’s a taste of the new drops and activations from the first half of the week.

🥣 Good Culture collaborated with streetwear brand StayCoolNYC to release limited-edition sweatpants and a hooded sweatshirt featuring a hidden pocket perfectly sized for a spoon. 

🏈 Kevin’s Natural Foods is partnering with the “Bussin’ with the Boys” podcast during football season to promote its limited-time Buffalo-Style Chicken as a healthier alternative to traditional game-day grub.

🍿 Graza and BjornQorn have teamed up to launch a limited-edition Extra Virgin Olive Oil & Sea Salt Popcorn, made with yellow butterfly corn kernels sun-popped in Graza’s Sizzle Extra Virgin Olive Oil.

🧁 Iconic cupcake bakery Sprinkles has partnered with The Jel Sert Company to develop a collection of pudding mixes including Salted Caramel Chocolate Berry Trifle, Red Velvet Hot Chocolate, Red Velvet Brownie Cookies, Lemon Blueberry Yellow Cake, and Pudding Pops.

Check out more of the latest marketing moves on Nosh.

After Flow Water’s recent foreclosure left many co-packing customers scrambling, the need for smart co-manufacturing risk management has never been clearer. Brad Woodgate, founder of Joyburst, The No Sugar Company, and Wellnx Life Sciences, joins Brandon Hernandez, co-founder of Whole Brain Consulting, to share how founders can protect their brands from co-manufacturing disasters. 

• Learn to spot warning signs, build redundancy, evaluate packaging risks, and safeguard raw materials and equipment during shutdowns. 
• The conversation also covers the contract clauses that matter most, how to vet facilities, why geography and capacity strategy affect growth, and how scorecards and pre-launch planning keep operations on track.

Tune into the episode now. Also available on Spotify and Apple Podcasts.