Plus, UNFI sued over chargebacks; live from the Winter Fancy Food Show͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
NoshJanuary 22, 2024
DAILY BRIEFING
Today's news & insights for the food industry.

In this issue of Daily Briefing

  • 🤝 Saco Foods Has A New Owner
  • 🧑‍🔬Forsea Foods Unveils Cultured Eel Prototype

📰 Today's Top Story

🌿 ‘Cannabis’ or ‘Weed’? Just Put Some Respect On the Name

🌿 ‘Cannabis’ or ‘Weed’? Just Put Some Respect On the Name

When I started working at BevNET as a reporter in 2016 (I was 30), nobody used the word “cannabis.” Back in those innocent days, before we all became fixated on the source or the configuration of molecules of our precious THC, it was still just “weed.” 

But “cannabis” sounds a lot more respectable, and, seemingly against all odds, that’s exactly what it has become, specifically in the context of CPG. 

For the most part, what I’ve witnessed over my time at the company (I was previously a music journalist) has been hugely encouraging. The call to move beyond typical ‘stoner’ stereotypes -- a major topic of discussion during our first Cannabis Forum event in 2018 -- has been emphatically answered by thoughtful, authentic innovation in low-dose drinks from brands like Klaus, Cann, Keef and countless others. What we’re witnessing now in states like Minnesota is a real-time stress test of how this category, with regulatory oversight, can compete directly with other drinks outside of the dispensary channel, and the response so far has been encouraging.

At the same time, high-dose products like Uncle Arnie’s aimed squarely at experienced cannabis users (I am one) have emerged as top performers in markets like California and Washington, suggesting plenty of runway to evolve with each region’s unique needs. 

Now as BevNET’s managing editor, my interest in the space goes beyond personal affinity; what happens in cannabis will have an impact on other CPG categories as well, not to mention the economy at large. Just look at how infused beverages have inserted themselves into the conversation around Dry January (try ‘High January’) and the soaring demand for non-alcoholic alternatives. The number of independent craft brewers who have recognized a growth opportunity in THC tells a story in itself, while the expanding field of cannabinoid research is leading to a better understanding of their interplay. These ingredients beckon years worth of innovation. 

And if you think cannabis is still a dangerous third-rail for a major strategic like Anheuser Busch – or a hit-making operation like Congo Brands – just wait until the U.S. Drug Enforcement Administration (DEA) accepts the Health and Human Services Department recommendation to reclassify marijuana from a Schedule 1 to a Schedule 3 controlled substance, a move that would put it on equal footing to many over-the-counter medications. 

But amidst the potential economic bonanza, the cultural significance of that shift shouldn’t be underplayed. Thousands of Americans have been and remain incarcerated, or are carrying the burden of a criminal record, on marijuana-related charges, and an industry that doesn’t reckon with the past failures of our treatment of this plant and its stewards isn’t one that will last. 

Basically what I meant to say was it’s a party now, but it wasn’t always. As we travel that road to respectability, from ‘weed’ to ‘cannabis,’ let’s make sure we remember what it took to get here. 

Martín Caballero (mcaballero@bevnet.com) is the managing editor for BevNET.

 

✨ What You Need to Know ✨

👨🏼‍⚖️ Omaha Industries Sues UNFI Over Chargebacks

Chargebacks can be a major point of contention when working with large distribution partners and Omaha Industries has had enough. 

🏛️ The ingredient supplier filed a lawsuit against United Natural Foods Inc. (UNFI) in a Rhode Island District Court early this month contending that UNFI had charged back over $260,000 of pet food products intended for grocery retail chain Giant Food.

❌ The suit alleges that UNFI has neither returned or provided Omaha Industries a proper accounting of the unacceptable pet food product.

😡 The charges account for nearly 82% of the value of the product that was intended to be sold to GIANT, according to a spokesperson for Omaha Industries.

Dig Deeper with Community Call: Avoid Deduction Surprises with Tips from Greg Esslinger and Jenna Gelgand

 

🤝 Saco Foods Has A New Owner

Fengate Private Equity announced today it has acquired Saco Foods Holdings from Benford Capital Partners. Terms of the deal were not disclosed. Benford has held a controlling stake in the company since 2016.

✅ The existing management team, including CEO Tom Walzer, will retain a significant equity interest in Saco.

📈 Fengate partnered with Weathervane Investment “to support continued growth” of Saco Foods and is managing the investment on behalf of LiUNA Pension Fund of Central and Eastern Canada.

🍫 Saco’s portfolio includes confectionery chocolate coatings maker Dolci Frutta; sun-dried tomato producer California Sun Dry; and instant dry milk products and complementary baking ingredient brand Saco Pantry.

 

🍽️ Winter Fancy Food Show Spotlights Foodservice Focused Brands

The Winter Fancy Food Show kicked off at the Las Vegas Convention Center on Sunday. Nosh managing editor Monica Watrous and reporter Adrianne DeLuca are busy placing bets on who will find the fanciest of all food… while sampling plenty of chocolate, cheeses, sauces and snacks along the way.

📝 Notably, this year the show introduced a new booth icon, allowing exhibitors to quickly indicate that they supply foodservice accounts. Other badges include Diversity Equity Inclusion (DEI), First Time Exhibitor and New Product. 

👋 Don’t hesitate to say hello and drop us a note with your booth number at mwatrous@bevnet.com and adeluca@bevnet.com. We will happily swing by!

Stay tuned for more coverage from the show throughout the week!

 

🧑‍🔬Forsea Foods Unveils Cultured Eel Prototype

Forsea Foods, a cell-culture seafood startup, has unveiled its first prototype of cell-cultured freshwater eel. The company was founded in 2021 and aims to create alternative fish products to help support the revival of seafood populations. 

🧪 The startup uses organoid technology that allows for the crafting of 3D microtissues composed of fat and muscle. And the process is well-suited for scale as the cell lines  self-organize into tissue structures without the need for scaffold support, which has been a major challenge to commercializing other cell-cultured proteins like beef and chicken. 

⏩ Forsea expects that its inaugural product – a replication of Japanese unagi eel – will be ready for commercial launch in Japan and throughout Asia in 2025.

BevNET.com, Inc. 65 Chapel Street, Newton, MA 02458
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