• 📉 Plenty Files For Ch. 11 
• 🧑‍⚖️ C&S Sues Kroger
• 💪 Brevel Adds $5M 
• 📰 Reading List
• 🔀 Monday Moves

Several dozen food brands are outpacing category growth and trampling incumbents. 

As the industry remains challenged by languishing volumes, heightened awareness of ultraprocessed foods and the rise of GLP-1 weight loss drugs, these companies continue to thrive. Who are they, and how are they doing it?

Bain & Company’s annual review of insurgent brands lists the high-growth consumer products players that have: 

• Generated more than $25 million in annual revenue in tracked channels
• Grown more than 10 times their category’s average growth rate over the past five years
• Maintained positive growth over the past two years as an independent company or having been acquired only within the past two years

​​All of this year’s 120 insurgent brands, combined, drove 39% of incremental category growth while holding less than 2% of total market share in their respective categories. For comparison, last year’s insurgent brands class drove just 17% of incremental growth in 2023.

In food, insurgent brands were responsible for more than 27% of the growth and accounted for less than 1% of market share. 

New insurgents in the food category include ALOHA, Goodles, Graza, Mike’s Hot Honey and Sow Good, among others. These brands are establishing strong retailer partnerships, executing innovative collaborations with other on-trend brands, and expanding into high-impact segments; Sow Good’s timely pivot into freeze-dried candy and Goodles’ Deluxe extension, for example, created opportunities to reach new consumers. 

Among existing insurgents are Impossible Foods, Kevin’s Natural Foods, Catalina Crunch, Chomps and VanLeewen. Chobani and Rao’s Homemade achieved “scale insurgents” status, achieving more than $1 billion in sales while continuing to meet insurgent criteria in at least one category.

Emerging insurgents – those with $10 million to $25 million in annual revenue in tracked channels – include Cleveland Kitchen, Solely and Belgian Boys. Like many others on the list of new and existing insurgent brands, these brands are founder-led and embed an entrepreneurial mindset throughout the organizations. 

According to Bain, winning insurgent brands are applying a playbook focused on sustainable, volume-led growth, deep consumer engagement and strategic portfolio expansion. You know, all the qualities investors are seeking nowadays. 

Bottom line: Expect to see a surge in acquisition and investment activity within this space as strategics seek new paths to growth.

Go Deeper: Food Funding Forecast Clouded By Uncertainty

Vertical agriculture company Plenty filed for Chapter 11 protections this week in the Southern District of Texas Bankruptcy Court. 

🤝 The company has struggled to find gradual growth despite significant support from recognizable investors like Walmart, SoftBank and Jeff Bezos. 

🍓 It closed its Compton, Calif., strawberry farm in December. The company will continue to operate its Richmond, Va., strawberry farm and Laramie, Wyo., plant science research and development (R&D) facility throughout the restructuring process.

💲 Plenty has received a commitment for debtor-in-possession (DIP) financing of $20.7 million which is expected to provide the business with enough liquidity to support the restructuring process.

🧑‍🌾 Plenty is not the first indoor agriculture business to struggle with scaling in the capital-intensive sector. Virginia-based Aerofarms and mushroom farmers Smallhold have emerged from Ch. 11 bankruptcy, while other well-capitalized companies like Upward Farms, Bowery and AppHarvest have failed to remain solvent.

Catch Up: Upward Farms Closes “Infinitely Complex” Vertical Farming Operation

Kroger has found itself entangled in yet another lawsuit over its failed $24.6 billion merger with Albertsons. C&S Wholesale Grocers sued the grocery giant for allegedly refusing to pay a $125 million termination fee after the deal fell apart, The Wall Street Journal reported.

⏪ Last year, C&S agreed to acquire up to 579 Kroger and Albertsons stores in a deal valued at approximately $2.9 billion. 

💭 “Kroger failed to identify any reason for its refusal to pay the termination fee it owed C&S – because there is none,” C&S said in the suit, according to WSJ’s report. Meanwhile, a Kroger spokesperson said C&S forfeited its rights to the fee. 

👀 The news comes just weeks after Kroger CEO and chairman Rodney McMullen resigned following a board investigation that deemed his personal conduct “inconsistent” with the company’s policy on business ethics. 

Go Deeper: Kroger, Albertsons Terminate Megamerger Agreement

Microalgae is gaining momentum in food and beverage as Brevel upped its seed round with an extra $5 million, pushing the total round to $25 million. Microalgae has also recently gained ground as an alternative oil. 

• The climate-tech startup will accelerate its go-to-market strategy and continue commercializing its neutral-flavored microalgae protein isolate powder for food and beverage use. 
• The functional protein ingredient has emulsifying, gelling, and foaming properties. Its nutritional profile includes fiber, antioxidants and all essential amino acids. 
• NevaTeam Partners, Siddhi Capital, European Union's EIC Fund, Good Protein Fund, The Food Tech Lab and PVS Investments contributed to the round, among others.
• The company also recently locked in a commercialization agreement with Israel-based beverage business The Central Bottling Company and completed the buildout of its first factory. 

Here’s a taste of the headlines our editorial team has been watching over the weekend…

🥨 Axios muses over what could have caused the “slowdown in snacking” observed by leading CPG conglomerates including General Mills, Campbell’s and Smucker’s over the past quarter. The slowdown has also been tracked among lower-income shoppers by way of discount retailers like Dollar General.

📣 Walmart and Target are “bickering” behind-the-scenes with suppliers over proposed tariff-driven price hikes, per a recent Reuters report. The retailers claim they can’t raise prices without losing market share and alienating shoppers, but with another wave of tariffs set to go into effect by mid-April, what could happen next?

🥼 Ultraprocessed foods have become a hot topic for industry discussion over the past year. But with little industry authority or regulatory clarity on the matter, the Associated Press dives into key concerns for this food category with insight from a handful of nutrition scientists. 

Here’s a taste of the people and products moving around the industry to start off your week. 

👔 Hormel made two promotions within its Retail business segment: Scott Weisenback and Joe O’Connor have been moved into the roles of VP of Marketing and VP of Emerging Brands, respectively. 

🥗 Yo Mama’s Foods landed its premium dressings line, including Dairy-Free Ranch, Dairy-Free Caesar, Asian Sesame, Sugar-Free Greek and Honey Balsamic, at 2,150 Kroger stores nationwide. 

🥛 Organic Valley appointed Shawna Nelson as its fourth CEO, replacing outgoing Jeff Frank (more below). Nelson joined the co-op business as an intern in 2005 and has worked her away through the ranks in a variety of roles.

🤝 Outgoing Organic Valley CEO Jeff Frank has been appointed CEO of food manufacturer Monogram Foods, effective April 28. Karl Schledwitz, co-founder and outgoing CEO of Monogram, will continue to serve as chairman of the board of directors. 

🍝 Lupini bean products producer Brami has secured nationwide distribution at Whole Foods Market for its two-ingredient pastas. 

🍕 PORTA’s frozen pizzas in Pepperoni, Margherita and Sausage & Caramelized Onion varieties are now available at Harris Teeter for $11.99 each. The products are crafted in Italy with 100% Italian flour, vine-ripened tomatoes and extra virgin olive oil.