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There is no linear path to incremental growth, but sometimes unforeseen challenges can become new opportunities.

Dehydrated fruit and veggie maker BranchOut Food was not planning to operate its own 50,000 sq. ft. production facility in Peru just a few years ago. Now, as its four production lines use its proprietary GentleDry technology to pump out private label and branded products, as well as ingredients, it seems vertical integration has put the business on its best path forward.

After the company went public in the first half of 2023, it was soon notified that the manufacturing equipment it had installed in a partner’s facility would not be available – that the co-man had shuttered, leaving the plant (and its contents) to creditors.

The unforeseen hurdle pushed BranchOut to vertically integrate much sooner than it had ever intended, said founder and CEO Eric Healy. “We [knew] that we have to build our own facility or we are done.”

With the help of a new public offering, an investment from Healy and a $3.4 million convertible note from Kaufman Kapital, the company moved operations to a former asparagus processing plant in Peru.

Once the dust settled, the production expansion has allowed the dehydrated produce maker to build beyond retail partnerships in Costco and Walmart and the newfound manufacturing also has opened it up to the ingredients business.

Insiders can get the full roadmap on BranchOut’s path forward after adversity.

Netflix-inspired cookies. Coffee-flavored marshmallows. This week’s new product roundup is pretty sweet. Here’s a sneak peek at what’s inside: 

🍪 Chips Ahoy! is promoting Season Five of Netflix’s hit series “Stranger Things” with a limited-edition cookie inspired by “The Upside Down” featuring a chocolatey base, fudge chips and strawberry-flavored filling. 

☕ XO Marshmallow teamed up with Seattle’s Best to create its first ever coffee-inspired variety pack of marshmallows. The collection includes four flavors: Light Roast, Medium Roast, Dark Roast and S’mores. 

🍗 Frozen snack maker FarmRich unveiled three new products: Buffalo Style Chicken Rollups (crafted with Frank’s RedHot sauce), Italian Sausage Mozzarella Cheese Sticks and Chocolate Brownie Bites. 

🆓 Check out the full gallery on Nosh. 

The legal knives are out for Premier Protein and Dymatize parent company BellRing Brands as several law firms have announced investigations into the business following allegations it violated securities laws in its last earnings report.

• Several press releases seeking to file shareholder lawsuits claimed the company misled investors in its Q2 report on May 6 when the company said some of its retail partners were planning to “optimize” inventory and reduce supply on hand.
• BellRing’s stock price dropped 19% immediately after the call and has continued to decline, now down 28% over the last six months as of July 23.

🔮 Some analysts aren’t fretting about the business’s future prospects though. A report from investment bank Jefferies took an optimistic view on BellRing’s upcoming quarterly earnings, noting that consumption “remains solid” for the brand.

Insiders can read the full story on Nosh.

Suzy Monford has stepped down as chairperson and CEO of Apollo Global Management-owned Hispanic retail conglomerate Heritage Grocers. 

• Industry veteran and board member David Hirz has stepped in as chairman of the board and has begun assembling an office of the CEO, composed of senior leaders, as it begins the search for its next CEO.
• Hirz most recently served as president and CEO of grocery warehouse chain Smart & Final and has also held top roles at Food 4 Less and Ralphs.

Heritage operates over 100 stores across California, Texas, Nevada, Arizona, Kansas and Illinois with banners including Cardenas Markets, El Rancho Supermercado, Tony’s Fresh Market and Los Altos Ranch Market. 

Check out more recent news from the growing Hispanic grocery segment.

Here’s a selection of this week’s leading headlines on Nosh.

🇲🇽 Tia Lupita Acquisition Will Bring It ‘To The Motherland’

Vilore Foods’ acquisition of Tia Lupita signals a bold new chapter for both companies – and the future of better-for-you Hispanic food.

🥯 Hero Steps Into the Bagel Void – And Enters Pasta Category

The meltdown of beleaguered bagel slinger BetterBrand provided an opportunity for Hero Labs to replace its reduced-carb rival on shelves nationwide at Whole Foods Market this past spring, just ahead of its foray into the noodles segment this month.

🤝 GoodPop, LesserEvil, Interact Intro Good Food Collective

Frozen treat maker GoodPop is banding with like-minded brands to promote transparency and higher standards in the food industry during what it dubbed a “pivotal decade” in U.S. food policy.

🥨 What’s Shifting Salty Snack Sales?

The snacking category’s biggest players are adapting to the Make America Healthy Again movement while sales of conventional potato chips face declines. 

Get caught up on the week’s leading headlines from around the food industry on Nosh.

How did GNGR Labs’ organic, cold-pressed wellness shots become a staple in New York City bodegas and land nationwide distribution at Wegmans? Founder Namik Soltan shares a story powered by purpose, product and unrelenting persistence. The hosts also unpack PepsiCo’s unexpected – and gutsy – announcement and explore how excellence fueled Tia Lupita’s acquisition.

Tune into the episode here. Also available on Spotify and Apple Podcasts.