The buzz may have begun with the butter board trend, a rise of exotic flavors or simply premium $11 Les Pres Sales Sea Salt Camargue butter and refrigerated ghee sticks – it's tough to pinpoint. Either way, there’s been some excitement coming out of the solid cooking fats category, but calling butter, ghee, margarine and other plant-based spreads a hot space that’s ripe for disruption may be a bit of an overstep. While a handful of brands have been doing the hard work of bringing consumers to new form factors, they’ve done so amid an already difficult backdrop. Start with the complex and constrained U.S. dairy market as the base. Now, layer in rising wholesale prices, a strong private label presence and a handful of well-established category leaders. Those dynamics have pointed the startup butter business to increasingly lean into premiumization. What does that look like? Micheal Taschman, founder and CEO of flavored compound butter brand Churn, believes consumers are still seeking out culinary experiences at home, and thinks that his product can enable that. He’s worked to lock in distribution in natural and specialty stores where at-home cooks and “foodies” shop for items to experiment with, but at $9.99 per 6.5 oz butter tub, it can still be a hard sell. Adding to the price tag challenges, salted and unsalted remain the two leading flavors across all butter formats, and most consumers are fine with those options alone, emphasized Max Dichter, CEO of ghee brand 4th & Heart. The ghee brand has taken those two popular flavors and, after many years of R&D, built them into blocks. Its an innovation strategy that has helped the brand bring in more consumers to grow the ghee category. “The [sticks] have been on-shelf less than a year but have shown tremendous improvement in velocity,” Dichter said. “Velocity in the sticks has been growing without any degradation to velocity in the jar product… it's basically proving this thesis that we can bring new consumers into this category and grow [it] long term.” Read the full story for a deeper understanding of the category and the strategies of those working to disrupt it. |