Plus, Bob’s Red Mill founder dead at 94; Highkey sells to Creation Foods͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
NoshFebruary 12, 2024
DAILY BRIEFING
Today's news & insights for the food industry.

In this issue of Daily Briefing

  • 🕊️ Bob’s Red Mill Founder Bob Moore, Dead at 94
  • 🍪 Highkey Sells To Creations Foods
  • 📈 Brick Meets Click: Jan e-Grocery Sales Up 1.8%
  • 🍿 Still Snacking: Biden’s Super Bowl Sunday Shrinkflation Plea; Kim K and Feastables?

📰 Today's Top Story

🍗 From The Butcher Counter To Bioreactors: Cultivated Meat Faces The Harsh Realities Of Business Economics

🍗 From The Butcher Counter To Bioreactors: Cultivated Meat Faces The Harsh Realities Of Business Economics

Despite spending over 15 years in the food industry, working in fine dining kitchens and “whole animal” butcher shops, it wasn’t until graduate school that I was introduced to food technology and the growing investment in lab-grown (now called “cell-cultured” or “cultivated”) meat, dairy or seafood.

My interest was piqued: I had spent years behind a butcher counter wrapping up boneless, skinless chicken breasts and engaging in endless conversations about the environmental sustainability of pasture-raised meat and comparisons between wild-versus-farmed seafood.

After reporting on food tech and the cultured meat industry for years, I still return to the same question: Is this really the solution to our unhealthy addiction to cheap and environmentally unsustainable food?

Early in my exploration of this nascent industry, conversations about cell-cultured food always seemed to circle back to the idea of if people will actually buy and/or eat food made in test tubes (or more accurately bioreactors). But before consumers can even get to the question of adoption there is the even bigger hurdle of scalability: Whether you could make enough to justify the cost to make even a little. 

Personally, I want to believe there is a technological solution that might save the planet from our stomachs’ desire for environmentally destructive food. Yet, with nearly $3 billion flowing into cell-cultured food tech over the years and over 150 total companies working on making “slaughter-free meat” a reality (with many now-defunct startups already six feet underground), I’m starting to have doubts. 

So are the well-sourced industry watchers and journalists that have followed the industry much longer than me.

And as we debate if people will eat the stuff or if it is replicable en masse, there is already a well-funded campaign of rejection. States like Arizona, Texas and Florida and countries like Italy, France and Austria have begun the process of banning or even criminalizing the production and sale of a food that, in large part, does not really exist in retail yet.

Why the uproar? As with most things in business, much of it comes down to the moo-lah (forgive the tired bovine pun). Even the threat of encroaching on an established and highly consolidated industry like meat production means the loss of capital.

Want a more tangible example? See what has been playing out for years in the plant-based meat replacement sector. Be they nut milks or meat alternatives, a culture of outrage mirroring the current political climate has evolved, all in the service of maintaining “the way things have always been.”

In the resulting communications war, the meat industry calls cultured proteins dangerous and the impending killer of the meat and dairy industry. Never you mind the fact that independent ranchers and small family-run farms have been slowly bled to death by these same multinational companies for years.

For the most part, alt meat and dairy companies are happy to throw mud themselves, espousing a holier than thou approach all the while taking in exorbitant amounts of capital with often few reproducible products to show their investors.

But the cash considerations aside, the circle repeats: is food tech really the climate-saving solution to our unsustainable addiction to cheap meat, or are we searching for answers on the wrong pastures?

Do you believe the food tech industry’s suppositions that it can solve climate change? Let me know your thoughts on how tech might or might help create a more sustainable food system, email me Lukas Southard at lsouthard@bevnet.com.

 

✨ What You Need to Know ✨

🕊️ Bob’s Red Mill Founder Bob Moore, Dead at 94

Bob Moore, the founder of whole grain food company Bob’s Red Mill, passed away on Saturday, the company announced in an Instagram post. He was 94.

⏪ Moore and his wife Charlie founded the Milwaukie, Oregon-based company in 1978 with a focus on selling natural foods. He turned the business over via an employee stock ownership program in 2010 and it is now fully-owned by its more than 700 employees.

🌏 The global corporation now sells more than 200 products – such as flours, cereals and beans – in over 70 countries, from Egypt to China to Australia. 

💭 “Bob’s passion, ingenuity and respect for others will forever inspire the employee owners of Bob’s Red Mill, and we will carry on his legacy by bringing wholesome foods to people all around the world. We will truly miss his energy and larger-than-life personality,” the post reads.

 

🍪 Highkey Sells To Creations Foods

Keto cookie company Highkey has been acquired by Washington-based Creations Foods, joining a portfolio that includes fellow low-carb snack company Moon Cheese.

⏩ The deal comes four months after Highkey CEO Joe Ens departed the company to lead Fontaine Sante Foods. Ens is credited with building the snack company’ “digital incubation” innovation strategy. 

🧀 Creations, a snack co-manufacturer and private label producer, purchased Moon Cheese in March 2023; the company also owns snack cookie brand Toatzy and produces Myna Snacks

💰 Elsewhere in the deal space – keep an eye on private equity. According to a recent report from PE Hub, Blue Road Capital is expected to put Diamond Foods on the market in the next two months. 

🥐 Additionally, Hometown Food Company (the producer of Pillsbury, Hungry Jack, Arrowhead Mills and Funfetti) has taken first round bids for the business while Union Capital Associates’ Pervine Foods (maker of Fit Crunch bars) is also allegedly exploring a sale.

 

📈 Brick Meets Click: Jan e-Grocery Sales Up 1.8%

The online grocery market notched a 1.8% y/y increase to $8.5 billion in total sales in January, according to the latest Brick Meets Click/Mercatus Grocery Shopping Survey. But the increase, driven by a jump in total active users, was overshadowed by a downward trend in frequency and a composite average order volume (AOV) flat compared to last year.

🏠 Ship-to-home was the only segment to grow YOY as sales climbed to $1.5 billion in January, up 7.8%. Higher order volume, driven by a surge in monthly active users, helped the segment end the month with 17.4% of total eGrocery sales.

📦 January’s delivery sales slipped slightly, down 0.5% to $3 billion. The 3% growth in online AOV failed to offset larger order volume declines. As a result, delivery accounted for 35.3% of eGrocery sales last month.

🛍️ Online sales across all formats made up 13.4% of weekly grocery spending during the last week of January, increasing 120bps since last year. 

 

🍿 Still Snacking: Biden’s Super Bowl Sunday Shrinkflation Plea; Kim K and Feastables?

Ahead of the Super Bowl, President Biden posted a video to X (a.k.a. Old Twitter) on Sunday morning calling out the makers of Gatorade, Oreos, Doritos and Breyers ice cream for keeping their prices high while shrinking the size of products.

❌ While the president made a direct call to action to these companies, he has been criticized for not offering any solutions or policies to combat shrinkflation. He concluded the video by stating: “Let's make sure businesses do the right thing now.

🍫 And during the game itself, many CPG companies (including many of those named above by Biden) showed off star-studded ad spots that are still generating plenty of buzz. But, this behind-the-bowl photo op of Mr.Beast and Kim Kardashian had us wondering – could TRUFF soon have a portfolio pal over at SKYY Partners?

🍿 Still Snacking: Biden’s Super Bowl Sunday Shrinkflation Plea; Kim K and Feastables?

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