• 🦊 Outfox Files for Bankruptcy, But Is Founder Back In the Frame?
• 🍪 Grupo Bimbo and Oobli Sweeten Bakery Set
• 🤑 Walmart’s Reports Strong Q1 Results
• 🧐 CVS Joins Private-Label Grocery Product Push
• 🐔 MrBeast Teams Up With Zaxby’s

The Indiana Convention Center transformed into a real-life Candyland during the past two days of the Sweets & Snacks Expo 2024. With over 16,000 attendees and 1,000 exhibitors, we saw everything from candy-themed video games to an abundance of giant, live mascots including Nerds, Sour Patch Kids, Pringles and more. But on the floor, discussions ranged from between combating rising cocoa prices to capitalizing on seasonal opportunities and injecting global flavors into savory snacks. 

Grappling With Cocoa Prices: By now, it’s no secret that cocoa prices have been on a wild ride over the past year, due to bad harvests in two top cocoa-growing countries. According to brands like Endangered Species Chocolate and Chocxo, the biggest variable at the moment is an unpredictable crop quality for the upcoming fall harvest season. 

A spokesperson for Chocxo – which showcased its new Cookies & Creme Cups at the show – said that the brand’s use of premium dark chocolate has meant price increases are hitting even harder. If needed, he said, the brand could shift focus away from bars and onto its Cups line – where only one-third of the product is chocolate. 

Elsewhere in Candyland, lollipop producer Tazzy Candy showcased its first foray into chocolate. The brand’s new Swiss Milk Chocolate Bark line – crafted with chocolate from Switzerland – comes in three varieties: Crispy Crunch, Cookie Crumble, and Pretzel Caramel. 

Seasonal Sells: According to the “Getting to Know Seasonal Chocolate and Candy Consumers” presentation given by Anne-Marie Roerink, president of 210 Analytics, more than 63% of all candy sales occur during the four major holidays: Valentine’s Day, Easter, Halloween and the winter holidays. However, a strong GenZ/Millennial “micro-season” engagement (March Madness, Super Bowl, National Candy Month) is creating additional seasonal confectionery opportunities.

And there was no shortage of seasonal innovation on the show floor such as Brach’s fall-themed Mallow Cremes, Welch’s Fruit ‘n Yogurt Snowballs and Halloween-inspired Fruit Snacks, Halloween-themed Nerds Gummy Clusters and Dunkin’ Filled Chocolate Eggs, among many others.  

The other side of the show (a.k.a. Snacks!) saw plenty of savory products showcasing global flavors, and it seemed to serve as a launchpad for new brands looking to enter the North American market.

Canadian brand Bites of Tang touts itself as the first brand to bring the Asian snack “Guo Ba” to the North American market. The brand’s rice crisps – available in Sour Cream & Onion and Sichuan Mala varieties – offer a new twist on the classic snack and are currently available in Canada for $3.50 per 3.25 oz. bag. 

Elsewhere, Cactus Foods showcased its Cactus Chips – offered in Sea Salt and Jalapeno flavors – that feature nopal cactus, an abundant source of antioxidants and vitamins, as a primary ingredient. According to founder Diana Gonzalez, the brand partners with a co-manufacturer who also works with brands like Siete. Both chip varieties will soon roll out on Amazon. 

Go Deeper: Read more about the cocoa price crisis on Nosh.

Even as the Foxtrot saga took a significant step towards long-term resolution with Outfox Hospitality’s filing of Chapter 7 bankruptcy on Tuesday, lingering questions over last week’s $2.2 million sale of store assets to Further Point Enterprises means the immediate future is still in flux.

• In its filing in Delaware bankruptcy court, Outfox – created after the merger of Foxtrot and Dom’s Kitchen & Market – listed both assets and liabilities of between $10 million and $50 million and over 5,000 creditors.

In contrast to Chapter 11 bankruptcy, Chapter 7 includes the sale of assets to repay creditors. 

• In a snap foreclosure auction held via Microsoft Teams last week, Further Point was the only bidder for an unspecified set of assets belonging to Foxtrot, listed as “inventory, intellectual property, accounts, chattel paper, documents, furniture, fixtures & equipment, general intangibles and goods.”

Yet according to real estate pub The Real Deal, multiple Chicago landlords have already been in discussions with Further Point Enterprises about reopening shuttered store locations, with Foxtrot founder Mike LaVitola rumored to be working alongside the company’s new owners. That may raise an eyebrow for brands that got burned by Foxtrot’s sudden closure – to say nothing of the terminated employees that are taking the company to court. Needless to say, we’ll be following.

Go Deeper: Foxtrot Fallout: Brands, Distributors React As Retailer Shuts Down

Sweet protein and better-for-you alternative sugar brand Oobli announced a new partnership today with baked good giant Grupo Bimbo. The partnership will see Grupo Bimbo test Oobli’s proteins as a sweetener in a wide range of its baked goods. 

• The proteins are derived from specific fruits and berries, and Oobli claims they are “5,000 times sweeter than sugar and can replace 70-90% of sugar in most food and beverage products.”

What they said: "Grupo Bimbo and Oobli are committed to bringing the innovation of sweet proteins to Grupo Bimbo's industry-leading baked goods without impacting existing flavor profiles. This strategic partnership is a major step forward in globalizing sweet proteins as the leading sweetness alternative.” – Ali Wing, CEO of Oobli. 

Naturally New England is hosting its first annual Pitch Slam at BevNET HQ! The event will celebrate up-and-coming brands with a community gathering and countless opportunities to connect, showcase, and grow.

Here are the details:

Date: May 21, 2024
Time: 5-8p
Location: BevNET HQ in Newton, MA

Join us!

Days after Walmart laid off hundreds of corporate employees, relocated others and ended its remote work policy, the Bentonville, Ark.-based retailer released a strong Q1 earnings report. Here are the highlights:

• Consolidated revenue was $161.5 billion, up 6% from a year ago
• Consolidated operating income was $6.8 billion, up 9.6%
• Global ecommerce sales grew 21%, led by pickup, delivery and Walmart Marketplace
• Reported EPS grew 200% to $0.63; adjusted EPS was up 22.4% to $0.60 from $0.49

🛒 Walmart said share gains in the U.S. were driven by upper-income households (which makes sense since its newest store brand skews a bit premium, yet still affordable amid inflation). More on that below…

Major retailers are going all in on private-label food: Target has been growing Good & Gather, Walmart recently launched bettergoods, and, now, CVS has Well Market. Launched today, Well Market is a new store brand of snack, beverage and grocery products.

🍪 The line currently has 40 items spanning flavored nuts, spicy trail mix and plantain chips as well as cookies, popcorn, oatmeal, granola and powdered drink mixes, among others.

♻️ Many of the items will be priced between $2.99 to $8.99 and will eventually be aligned with the company's sustainability goals of 100% reusable, recyclable and compostable packaging by 2030.

💳 The strategy coincides with consumers' increasing reliance and preference for private-label products as inflation continues to push shoppers to trade down and save on food costs.

YouTuber MrBeast (a.k.a. Jimmy Donaldson) has partnered with quick-service chicken chain Zaxby’s on a new menu item that marks the beginning of a year-long partnership that will include videos, social media content and more.

🍟 The MrBeast Box meal includes chicken fingers, crinkle fries, cheddar bites, Texas toast and MrBeast’s new Feastables Milk Chocolate Bar.

🍔 And this isn’t Donaldson’s first foray into fast food. Last year he shuttered ghost kitchen concept MrBeast Burger and sued its operator Virtual Dining Concepts, claiming the company was too focused on expansion at the expense of quality. (Read: The burger brand received terrible reviews).

🍫 The box prominently features Feastables branding, bringing the newly formulated chocolate bar business and its founder back into the foodservice space, this time without “uncooked” burgers in the mix.