Yesterday at the Summer Fancy Food Show, consumer market research & strategy consultant David Lockwood took to the Big Idea Stage to share key findings from the SFA’s most recent State of the Specialty Food Industry report, which tracks sales from the last three calendar years across retail, foodservice and ecommerce. 

In 2022, specialty food sales hit $194 billion, growing 9.3% year-over-year. However, inflation in most categories outpaced growth and unit sales experienced an unprecedented annual decline of 2.8%. Here are three takeaways from the report:

• In the top ten categories, ranked by 2022 dollar sales, snacks topped the list for the first time. Chips, pretzels and snacks leapt from the third largest to the largest category over the last three years. Overall, popcorn, potato chips and snacks combined for more than $4 billion in 2022 sales.
• More shelf-stable categories hit the top ten fastest-growing categories (including energy and sports drinks, chocolate and confectionery, baby and toddler food, cookies and snack bars and soda) than in the past several years. Seven of the 10 categories are on the smaller side, with sales at or below $1 million.
• Seven of the top ten and 45 out of the 63 food and beverage categories experienced unit declines, with almost half of them above 5%. In 2022, dollar sales were up 8% while unit sales were down nearly 3%, a gap of 11 percentage points that demonstrates how much of a negative impact inflation and other supply chain factors had on sales growth. 

Despite “ugly inflation” and decreased unit sales that have persisted through the first half of 2023, the specialty food sector is expected to grow at a CAGR of 6% between 2023 and 2027 with improving profits and margins. (Stay tuned for more information about the report.)

In addition to checking out the content shared on stage (a nice rest from walking, let us tell you!), the NOSH team also was on the floor, keeping an eye out for news, product launches and more. Read on for some of what we spotted, including a tease of an upcoming collaboration. 

• Stay tuned (hint). Small batch granola brand Michelle’s has a new LTO hitting the market soon that was developed in collaboration with a major recording artist. 
• BBQ Rufus Teague’s is moving into snacking, showing off its newest innovation: BBQ inspired nut mixes. Available in single-size and multi serving packs, the product technically hit the market during Covid, but due to a slow down in retailer resets, executives told NOSH, it's just entering brick and mortar in 2023. 
• Dave’s Gourmet unveiled, what the brand says, is the first hot sauce developed by AI. The recipe was created by asking Chat GPT what the ideal hot sauce would taste like. 
• Curry Love has released a new biodynamic red thai curry, which comes premixed with coconut milk. Unlike many other curry products, Curry Love is canning the sauce instead of putting it into glass, a move the brand hopes will highlight the fact it's biodynamic and not just organic. 

Oregon-based snack brand and technology platform company BranchOut Food announced last week that it has closed an underwritten initial public offering of 1.19 million shares of common stock at a price of $6 per share, bringing in gross proceeds of $7.1 million.

• BranchOut produces a line of dehydrated fruit chips and powders produced using a proprietary process called GentleDry and its offerings include Avocado Chips, Banana Bites, Bell Pepper Crisps and Crispy Brussel Sprouts, as well as avocado, banana and blueberry powders.
• The company also announced several new distribution wins, including an expansion into roughly 2,250 Walmart stores nationwide and the Los Angeles region of Costco.
• The brand also partnered with the U.S. Army to create dehydrated foods for use in MREs.

Read the full story on NOSH

More and more companies are making sustainability commitments ranging from sourcing and supply chain improvements to adopting recyclable packs, but legacy pasta maker Barilla is adding a bit of it all to its bowl of green goals. 

• The Parma-based group has reformulated 500 products over the past decade, with the aim of reducing production impacts of carbon emissions and energy and water and said it will continue to do so with all new innovations
• It is working with 9,000 of its supplier farms to promote sustainable and regenerative agriculture projects for those farmers who grow its key ingredients – Durum wheat, common wheat, basil and tomatoes.
• The entirety of the brand's bread, biscuits and snack set are produced in factories using renewable energy. All of the company’s products are also now packaged in recyclable containers
• And lastly, the company announced an investment of €1 billion (half of which will be deployed in Italy) to support sustainable business.

Influencer-led lifestyle brand Chamberlain Coffee announced yesterday it has teamed up with caffeinated energy bar maker Verb to launch a Vanilla Latte Energy Bar.

• The co-branded product features Chamberlain Coffee’s Fluffy Lamb Vanilla Blend and each bar packs as much caffeine as an espresso.
• Chamberlain Coffee x Verb Vanilla Latte Energy Bar is available via the former’s website for $28.95 per 16-bar box.
• The news comes just several weeks after Chamberlain made its first foray into the beauty and wellness space with a co-branded Matcha Dry Shampoo product made in collaboration with hair care line IGK.

Forget Redfin. Looking for a new place and love plant-based? Apparently, CPG brands are now here to help. Plant-based meat brand Morningstar is looking to lend some Chik’n to “the wonderful vegan landlord” of two, one-bedroom apartment units in Brooklyn, and ease the transition for its future inhabitants. According to the rental listing posted last week, the owner of the units lives in the building and prefers to avoid any chance of “the smell of cooking meat drifting upstairs.” That's when Morningstar decided to step in, offering the new tenants one month's rent paid by the Kellogg-owned brand, in addition to a year’s supply of its soy-based products (in the form of 12 product coupons…).

The newly opened Cassidy Ranch Farm Club is a place where members of the Sonoma county community can pick vegetables, flowers, play Pickleball, take classes and participate in a variety of outdoor activities, and it just so happens to be run by Elizabeth Stein (formerly Giannuzzi), co-founder and CEO of Siren Snacks, and her husband Tucker. The leader of the keto snack brand will hold classes on the ranch focused on cooking, growing plants and other farm-inspired activities.