Plus, how Sauz is strategizing a next-gen category reinvention.͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
NoshJune 03, 2024
DAILY BRIEFING
Today's news & insights for the food industry.

In this issue of Daily Briefing

  • 🍅 The Sauz Is Simmering
  • 🏪 PLTFRM Broadens Its Base
  • 🏪 Why PLTFRM Is Broadening Its Base
  • 🔄 People Moves: Exec Change Ups At Post
  • ✈️ HelloFresh Takes Ranch To New Heights
  • 📝 Real Good Foods' NASDAQ Notice 

📰 Today's Top Story

🍫 Sugar High: INSA’s Head Chef On the Art of Canna-Chocolate

🍫 Sugar High: INSA’s Head Chef On the Art of Canna-Chocolate

To make great cannabis-infused chocolate, you need to master the delicate nuances of its hero ingredient and hone the time-honored craftsmanship required to work with the plant. 

We’re talking about cocoa, of course. Yes, you need to know something about weed, too (more on that later), but expertise in the art and science of chocolate making is where INSA’s Julian Rose feels he is doing his most important work. As Head Chef and Director of R&D at the Massachusetts-based, vertically-integrated cannabis company, Rose sees an opportunity to elevate the perception of long-established edible categories like chocolate through superior ingredients and quality – consumer demands that have become par for the course in the non-infused space. 

Part of that comes from his own background; growing up in Montreal as the son of bakers, Rose was raised in a food culture with a strong European influence that didn’t quite align to what he encountered with American tastes, particularly in high-end chocolate and confection (“What surprises me in the U.S. is people call chocolate bars candy bars, because a lot of them are candy,” he noted). As an independent consultant, he worked with major chocolate brands like Barry Callebaut, and eventually found himself in touch with the burgeoning cannabis industry in California.  

“During my consulting years… most cannabis companies on the West Coast, for example, were entering the market with very little knowledge [of chocolate],” he said. “There were a bunch of consultants going around from state to state; they were the same people. And they were saying just use compound chocolate, because they themselves don't know how to handle a real chocolate. So they suggest a cheap version, and most companies will do that. It's almost foolproof; you almost can't mess it up. And why would they try to make their lives difficult?”

Since taking on the job at INSA in 2020, Rose’s approach to product development looks similar to that of many specialty food makers: approachable, interesting and visually captivating. Yet at the same time, its strategy is also informed by consumer trends specifically within cannabis and sometimes incorporated into INSA’s broader campaigns. This spring’s “Mission 420” exclusive is Milk & Cereal, which is being released alongside a vape product of the same flavor after 12 months of R&D. For the Spring Collection line, there’s Churro

Once a decision has been made, the rest is up to Rose to create and tweak as he sees fit. Masking the grassy cannabis notes in the chocolate bars isn’t a huge challenge considering the distillate used, but stronger ingredients like full-spectrum oil can be tamed with a “counter-punch” like peppermint. INSA’s forthcoming summer seasonal chocolate bar, Blackberry Ice Cream, is an ideal canvas for Rose to showcase his deft touch: it starts with white chocolate, then a touch of cream concentrate, then freeze-dried blackberries, resulting in a deep purple hue. 

Yes, purple may be a bit weird for chocolate, Rose acknowledged, but “you’re going to be blown away.” With chocolate representing just around 7% of total cannabis edible sales (and facing more competition all the time), the “wow” factor can’t be overlooked in driving sales – particularly when shoppers can’t touch the products themselves. Brands like Kiva have helped set the bar for what consumers are expecting from modern cannabis chocolate, and subtle tweaks – see Tilray’s emphasis on Belgian chocolate in its Chowie Wowie line, or Binske recruiting Intelligentsia Coffee for its infused espresso bar – are tilting the category further towards premium. 

But for an experienced chocolatier and chef, that juxtaposition of old-school craft and next-gen products is a welcome change. 

“I'm bringing joy,” he said. “I'm bringing you a quality product that makes you feel good, and it's natural. I'm giving you top of the line. So that's the benefit that I get, even though nobody sees me.”

Go Deeper: THC Edibles Turn to Hemp

 

✨ What You Need to Know ✨

🍅 The Sauz Is Simmering

🍅 The Sauz Is Simmering

While Los Angeles might not be a hotspot for authentic Italian cuisine, it is known as a place for reinvention, and that's exactly what aptly named next-generation pasta sauce brand Sauz is aiming to do to the jarred tomato sauce category.

🛒 How it started: The duo was strolling through the grocery store and questioned why flavor innovation had seemingly reached all corners of the store, except for pasta sauce. Now they sell a 4-SKU line with flavors including Hot Honey Marinara, Summer Lemon Marinara, Calabrian Vodka and Wild Rosemary. 

🚚 How it's going: Sauz is focused on garnering strong velocities in its core California and Texas regions (in addition to growing its retail door count from 300 to about 3,000 doors). The team noted that its products currently garner velocities about two to three times greater than the category average and in some retailers, up to five times stronger. 

🔊“We figured there was a huge opportunity to take this two-pronged approach and build a cheeky and fun, dynamic, exciting brand – the way we’d seen done in beverage – but also pair that brand identity with really innovative, flavor-forward SKUs,” said co-founder and CEO Troy Bonde.

Check out the full story on Nosh for more insight on how this viral sauce company is scaling up.

 

🏪 PLTFRM Broadens Its Base

Sales management services business PLTFRM has focused on helping brands grow and succeed in a marketplace that has been radically transformed by the era of online marketing and ecommerce. But PLTFRM itself is quickly expanding.

📶 Founded in 2005 by Noah Bremen – also the founder of Walmart broker Team Direct and skin care brand Noah’s Naturals – PLTFRM is now looking to add natural channel services to its existing focuses on mass, club and online.

👻 The business is also extending into venture capital, via PLTFRM Ventures, which has invested in brands like Ghost, Cirkul and Bloom.

💬 “We are just getting started, where we feel like most ‘brokers’ are selling to private equity or are just being ingested by a large conglomerate – a Titanic ship model,” said chief growth officer Sagaar Mehta. “We feel like we're one of the only players that is privately owned, and brand first. By growing quality versus quantity, we're incentivized by doing a great job.”

For more on PLTFRM, read the full story on Nosh.

 

BevNET & Nosh Community Calls This June: Succeed on Amazon and Boost Your Food Business with DSD

BevNET & Nosh Community Calls This June: Succeed on Amazon and Boost Your Food Business with DSD
This month during Community Call, discover how to boost sales and brand awareness on Amazon, and find out how to grow your food or beverage business with DSD for optimal product placement and cash flow.

Tomorrow, Tuesday, June 4 at 1:30 PM ET, we'll chat with A. Aimee Tsakirellis of Cedar's Hummus about DSD as a key tool that helped grow their food business. 

Registration is free!
 

🔄 People Moves: Low and Slow Appoints VP of Sales and More

🥣 CPG giant Post Holdings today announced a handful of leadership changes to its Weetabix and Refrigerated Retail businesses. Colm O’Dwyer, currently the commercial director for Weetabix, will succeed Sally Abbott as managing director, effective Oct. 1. At Post Refrigerated Retail, current EVP and CFO Mike McCoy will succeed Mark Delahanty as CEO, also effective Oct. 1. 

🔥 Smoked BBQ chip maker Low and Slow Snacks has brought on Randy Kruse, a former Dot’s Pretzels exec, as its VP of Sales. In his new role, Kruse will oversee all sales and distribution efforts for the Texas-based company. 

🍎 Better-for-you fruit bar producer That’s it. promoted Katie Eshuys to president five years after she joined as VP of international; She most recently held the chief commercial strategy and sales officer position. 

💻 Interact Brands’ creative director and partner Fred Hart announced today he has departed the agency after a nine-year tenure and will begin consulting  for CPG brands.

 

✈️ HelloFresh Takes Ranch Trend To New Heights

Meal delivery company HelloFresh is offering a limited-release Ranch Flight (no subscription required) that pairs a range of ranch-based dips and snacks. 

🥗 Ranch varieties include GoGoGochujang Ranch (Gochujang), All Bay Long Ranch (Old Bay seasoning), Frankenranch (Frank’s RedHot powder), and Goucho Rancho (Southwest seasoning).

🥣 Featured snacks include Miss Vickie’s Kettle Cooked Chips, Cheez-It Original, Stacy’s Pita Chips, Garden Veggie Straws and others. The kit, available for $34.99 at HelloFreshRanchFlight.com, also includes a flight board, serving bowls, and a flask “for enjoying ranch dressing on-the-go.” No, really.

 

📝 Real Good Foods Gets NASDAQ Notice Over Filing Requirements

Real Good Foods on Friday announced it had received a notification from NASDAQ stating the company no longer meets listing requirements due to its failure to upload its quarterly report on time. 

⏩ The frozen and refrigerated foods producer now has until June 18 to submit a plan to regain compliance. If the plan is accepted, NASDAQ can grant an exception of up to 180 calendar days from the date the report was due. 

👀 According to Real Good Foods, the notification has no immediate impact on the listing of its securities on NASDAQ.

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