• 🛑 Bite SPAC to Delist Following Failed Merger With Above Food Corp.
• 🛒 CAGNY: Inside Conagra Brands’ Innovation Spree
• 👔 Former Health-Ade Exec Joins South 40 Snacks as Head of Sales
• 🌽 Climate Change, Political Crises and Record Low Corn Prices

The pushback against Kroger and Albertsons’ proposed $24.6 billion merger continues to mount. 

A new report from Bloomberg claims that the Federal Trade Commission (FTC) is planning to file a lawsuit to block the deal as early as next week. A deadline is set for Feb. 28 by the agency and the grocery giants to delay the deal; it is anticipated the FTC will file ahead of that date.

In addition to the regulatory agency, multiple state attorneys general are expected to tack their names and claims onto the suit as well. At this time, it remains unknown how many will join and where the suit will be filed.

The Bloomberg report, citing anonymous sources, also claims that Kroger and Albertsons are attempting to meet with FTC commissioners to prevent the suit.

If a lawsuit is filed, the deadline to close could be extended farther into the future than it already has, adding expense and confusion to the process. 

​​The FTC was originally expected to make a decision on the anti-competitiveness of the merger between the country’s two largest grocery chains by Jan. 17. Kroger and Albertsons too had previously said they would close the deal in “early 2024.” 

That deadline was pushed out to Aug. 17 last month – right around the time Washington state AG Bob Ferguson filed a suit to block the deal. On Valentine’s Day, Ferguson’s suit secured a companion when Colorado state’s AG also filed a separate complaint to block the merger. 

Could a complaint from federal regulators be the final blow? Kroger executives have affirmed they will fight for the deal in court, if necessary. So if the rumors are true and the FTC suit is filed, that means the timeline could be extended well beyond Summer 2024.

Read the full story for more details on what’s to come and stay tuned to Nosh for additional updates.

Blank check company Bite Acquisition Corp. is set to be delisted after the special-purpose acquisition company (SPAC) failed to complete its merger with vertically-integrated ingredient supplier Above Food Corp. within the specified time frame. 

⏪ In May, Above Food Corp. – the parent company of Loma Linda, Tuno and Neat Egg – announced its plans to go public via a SPAC deal with Bite. The transaction was expected to put Above Food’s post-transaction valuation at $319 million. 

✉️ Bite received a letter on Tuesday from the NYSE stating it will begin delisting the company’s common stock, units and warrants because Bite failed to close the deal with Above Food within 36 months of the initial IPO registration statement. 

⏸️ Bite said in a press release it will exercising its right to request a review the delisting determination with a written request submitted by February 27. At this time, the securities have not been suspended and will continue to trade. 

Previous Coverage: Are SPACs Back? Above Foods To Go Public.

Guess who’s coming to dinner. Dolly Parton and Chef Boyardee. Dinner represents “a huge opportunity” for Conagra, said president and CEO Sean Connolly, noting “it’s the largest meal occasion but one in which we are underdeveloped.” 

🧑‍🍳 The company is expanding its suppertime offerings and bringing its brands to new shelves in the grocery store. Example: A modern twist on Chef Boyardee recasts the nearly century-old canned pasta brand as a premium family meal in the frozen aisle.

🥒 The Chicago-based company previewed a slew of product launches at the Consumer Analyst Group of New York annual meeting this week in Boca Raton, Fla. Other highlights included Angie’s Boomchickapop frozen novelties and Vlasic pickle-flavored puffed snacks.

🎤 Additionally, Conagra is extending its licensing partnership with singer and philanthropist Dolly Parton beyond the baking aisle and into the freezer case with Southern-style desserts and meals.

🌶️ The company also is capitalizing on trends including extreme heat and menu-inspired fare, as well as the air fryer boom.

We recently published our 2024 Supplier & Services Guide, as part of the January/February issue of BevNET Magazine, in print and online. Discover over 100 companies ready to help you take your beverage brand to the next level. View the full guide.

South 40 Snacks has tapped Jimmy Freudenberg, former SVP of sales at Health-Ade, as its new head of sales. He said in a LinkedIn post that he is excited to help “bring high quality, ethically sourced, simple ingredient snacks to the masses.” 

⏪ Created in 2018 by Sahale Snacks co-founder John Schroeter, Seattle-based South 40 produces a portfolio of “giant-sized” sunflower seeds and crunchy nut bars. 

🥭 Earlier this month, the company announced a new line extension of fruit bars available in Mango, Pineapple Mango Lime and Pineapple Passion Fruit varieties. 

💭 “Personally, I’ve been on a journey to transition my diet to more whole foods and when eating packaged foods, consuming ones with natural and limited ingredients. I couldn’t be more aligned with South 40,” Freudenberg wrote in the post.

Record corn harvests in the U.S. and Brazil this year have reversed the impact of global weather patterns and geopolitical disruptions, which sent corn prices soaring in 2021 and 2022, according to Reuters. 

💸 That has led to record low corn prices and a sizable excess of the world's most traded commodity crop. This has pummeled farmers’ profit margins and sent prices for other crops, like soybeans, into a downward spiral as well. 

🧺 Corn futures prices have dropped to $4.10 a bushel from a high of $6.30 in June. A “breakeven” price for farmers last year sat around $5.27 a bushel.

🧑‍🌾 Now, many farmers are stuck with massive stores of the grain as most had hoped to hold out for prices to go back up after the Fall harvest. As of December, U.S. corn farmers held 7.83 billion bushels of corn in storage, up 16% since 2022. 

📉 One farmer said he is storing about 40% of his 2023 harvest. Another is still sitting on his entire harvest as prices never met the targets he set for sales last year, even after he lowered said price tag goals. The American Farm Bureau Federation projects that net farm incomes will see the largest year-to-year dollar decrease in history this year.