Plus, CPG Week’s Expo West Extravaganza; Harken Sweets expands lineup͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
NoshMarch 12, 2024
DAILY BRIEFING
Today's news & insights for the food industry.

In this issue of Daily Briefing

  • 🎉 CPG Week: Expo West Extravaganza!
  • 📈 Bain Recognizes 2024 Insurgent Brands
  • 🍫 Harken Sweets Expands "Functional Candy" Line
  • 🥓 Umaro Raises $3.8M For Meat Free Bacon
  • 💪 Erewhon Puts Mikuna Muscle Into Smoothie

📰 Today's Top Story

🍫 Sprinkles CPG Debuts With Cupcake Inspired Chocolates

🍫 Sprinkles CPG Debuts With Cupcake Inspired Chocolates

The CPG baked goods business is getting bigger…kind of. 

Cupcake bakery chain Sprinkles (Booth #4902) officially debuted Sprinkles CPG, a new branch of the brick and mortar bakeries, franchise network and “cupcake ATM” business, aimed at creating all types of sweet treats.

“[Think] the ice cream category, the cookie category, the baking set – really any bakery, chocolatey, decadent item we feel like we could be,” said Ashley Rogers, president and CEO of Sprinkles CPG.

The new venture debuted with a four SKU line of chocolate bars – each flavored to replicate one of the brand’s best selling cupcakes – in addition to two small, “snackable” chocolates. The full sized bars come in Red Velvet, Salted Caramel, Sprinkle White Chocolate and Milk Chocolate and the minis are sold in Red Velvet and Salted Caramel. 

“Sprinkles cupcakes has built this amazing brand over the last 20 years with bakeries across the country,” said Rogers. “We thought it was a next natural step to create a product that could also be distributed in retailers nationwide underneath the Sprinkles name. The chocolate piece of it was just a natural, indulgent step for us.”

Utilizing its 24 store brick-and-mortar cupcake shop footprint, the line will first roll out on home turf before heading into one of “the largest national retailers,” next month, according to Rogers. The team is also working out a plan to get the chocolates into Sprinkles’ 50 cupcake ATMs (think: fancy vending machines). Talk about a diverse channel strategy.

And that's not all. Over the next year the products will roll out to retailers spanning mass, conventional, natural, drug and club. Those partnerships are also being targeted on a national scale, Sprinkles CMO Michelle Wong emphasized. 

So as we head into Expo West – what will the presence of baked goods be like this year?

Right around Expo West 2023, Sprinkles’ East Coast competitor Magnolia Bakery dipped its toes into the consumer packaged goods space with the launch of a cookie line inspired by (you guessed it) the bakery’s most iconic product: Banana Pudding. The line launched into stores like The Fresh Market and Harris Teeter with Classic Vanilla, Confetti and Chocolate Chunk flavors.

While cookies might be closer to Magnolia’s core offerings, Rogers and Wong believe the Sprinkles brand is flexible enough to make a longer leap into shelf-stable confections. 

“What has helped us is that we’ve really built a lifestyle brand [with Sprinkles] and our consumer sees us that way,” said Wong, 

Read the full story for more details about Sprinkles CPG’s expansion plans on Nosh. 

 

🎙️ Now Streaming: CPG Week

🎉 Expo West Extravaganza!

🎉 Expo West Extravaganza!

On this episode of CPG Week, Nosh managing editor Monica Watrous chats with with BevNET Editor-In-Chief Jeff Klineman and senior reporters Brad Avery and Lukas Southard about their plans for Natural Products Expo West. Tune in to find out…

🎒 ... what’s in Lukas’ backpack

👀 ... Jeff’s tips for exhibitors

😡 ... Monica’s Expo pet peeves

🤩 ... Brad’s most memorable celebrity interviews at the show

Listen now on Nosh.com and subscribe to get a fresh episode every week.

Like what you are listening to? Please don’t hesitate to rate our show and leave a review on your podcast platform of choice.

 

✨ What You Need to Know ✨

📈 Bain Recognizes 2024 Insurgent Brands

Consulting firm Bain & Company has published its eighth annual Insurgent Brands list, featuring 97 high-growth U.S. consumer products companies. 

🔥 Insurgent brands are defined as those that generate more than $25 million of annual revenue in tracked channels, have growth more than 10 times the category’s average growth rate over the past five years, and have maintained at least 10% growth over the past two years.

🚀 While accounting for less than 2% of market share in their respective categories, insurgents captured nearly 20% of incremental category growth in 2023 (compared with 6% in 2022) through volume expansion and price increases. 

🧇 Five of the insurgents achieved $500 million or more in sales. Three food brands – Chobani, Kodiak and Rao’s – have remained on the list since it launched in 2016.

📊 Bain expects insurgent brands “to capture an even greater share of category growth” as innovation by large companies remains limited and consumers seek meaningful value propositions.

 

🍫 ‘Functional Candy Bar’ Harken Sweets Expands Lineup

🍫 ‘Functional Candy Bar’ Harken Sweets Expands Lineup

New York-based startup Harken Sweets is set to showcase the latest addition to its line of date-caramel candy bars this week at Natural Products Expo West

👍 Billed as “the first functional candy bar,” the products contain prebiotic fiber and no added sugar, featuring a milk chocolate-style coating made with oats. 

🛒 Harken Sweets debuted online last summer and began rolling out to retail shelves at the end of the year. The products are available at ShopRite, Fairway, Gourmet Garage and Pop Up Grocer. 

🍕 Prior to creating the recipes, founder and CEO Katie Lefkowitz led operations at Caulipower for four years, growing the frozen food brand “from early days to over $100 million” in sales and catapulting a white-hot cauliflower craze. 

Read about how she is leveraging her operational experience to build the Caulipower of candy bars.

 

🥓 Umaro Raises $3.8M For Meat Free Bacon

Seaweed-based bacon maker Umaro Foods announced today it has raised $3.8 million in an equity round led by AgFunder, and via grant funding, to scale up production beyond alt-bacon batches, to continuous output.

🤝 The round also saw participation from Alexandria Ventures Investments, Climate Capital Bio, Ponderosa Ventures, and NBA all-star Chris Paul

🏭 With the larger production capacity, Umaro plans to expand into retail products including bacon, breakfast sandwiches and bacon bits.
 

💪 Erewhon Puts Mikuna Muscle Into Smoothie

The famous Erewhon Tonic Bar just got a little stronger with the announcement that plant-based protein maker Mikuna will be the exclusive protein powder of choice. 

🏋️ Chocho, the active ingredient in Mikuna, is a Incan variety of the superfood lupin that packs 20 gram of protein per serving and is a naturally regenerative crop.

🛒 The product has been the best selling protein powder at the Los Angeles-based specialty grocery chain and aligns with Erewhon’s mission supporting sustainable farming practices.

⬆️ California-based Mikuna raised $5.6 million in April 2022 as it worked to bring its Ecuadorian chocho powder into the U.S. market.

🌱 The company’s products are non-isolate, lectin-free, vegan, gluten-free, keto, paleo and non-GMO and available in three varieties:  Pure Chocho, Vanilla, and Cacao.

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