• 🍎 Jeni’s Fiber-Packed Second Act
• 🥩 Meaty Monday Acquisitions
• 🤝 The Vitamin Shoppe Bought By PE
• 🔀 Monday Moves
• 🧑‍🍳 Funding Favors the Few. Chefs Favor the Simple.

Sick of tariff talk?! Buckle up – it's going to be a while before we can quit this one. 

We’ve spoken to a selection of small businesses to understand how Trump’s tariffs are impacting the performance and future of CPG brands, but today it's time to zoom out, take a temperature check on consumer perception and assess what categories can be expected to see the biggest squeeze. 

Setting The Scene: Eighty percent of shoppers want brands to be transparent if tariffs cause them to raise prices, per a recent report from NielsenIQ. But, consumers still lack a significant understanding of where their groceries come from. Thirty-four percent are entirely unsure while just 25% understand that less than half of their groceries come from the U.S.

“Tariffs have the potential to significantly reshape consumer behavior. Younger and higher-income shoppers are at the forefront of demanding price transparency and clear labeling,” said Chris Costagli, VP of food insights at NIQ. “These dynamics present both challenges and opportunities for manufacturers to innovate and meet diverse consumer expectations as tariffs change the pricing environment.”

Nielsen also accessed the most at-risk categories based on regular price elasticity (RPE). 

• Those calculations spell bad news for the people over at Pop-Tarts – toaster pastries took the top spot for “most at-risk” followed by Oil, Butter & Margarine, Rolls & Buns, Bread and Cookies & Crackers. 
• On the beverage side, Sports Drinks, Coconut Water and Energy Beverages take the top three most-at-risk slots.

Although global, reciprocal tariffs have been paused until early July, the universal 10% levy – as well as the impact of industry specific fees such as on aluminium or lumber – will have broad-reaching implications on food supply chains. 

Let’s zoom in on Canada and Mexico (which are still subject to a 25% tariff) because, per NIQ, the implications at the grocery store could be enormous. The U.S. imports $15.2 billion worth of food from Canada (think: candy, gum, mints, processed oats, etc) and $6.7 billion from Mexico (i.e. tomatoes, avocados and plenty of other perishables). But the inputs are just a fraction of the equation. 

Most packaging used for food is imported from China – which is subject to a levy ranging up to a 245%, per the current mandate – and other components, down to the wood used for pallets that transport product to stores – will become more expensive due to duties. All of these added costs will eventually be reflected in the cost at checkout as well. 

"There are many nuances to tariffs and how they affect CPG companies,” said Steve Zurek, NIQ VP of analytics. “Importing finished goods is only one component, but CPG companies will also be affected by cost changes to ingredients, packaging and challenges to established supply chains."

Let us know how your company is handling the evolving trade war. Send thoughts to adeluca@bevnet.com.

Go Deeper: Beyond Good Finds ‘Skeptical Optimism’ In Facing 47% Tariff

Jeni’s Splendid Ice Creams founder Jeni Britton mounted her second entrepreneurial act this year with the launch of gut health brand Floura.

🍉 Snack bars make up the brand’s initial offering, crafted with watermelon rinds, apple cores and other overlooked plant parts, plus white chia, pumpkin seeds and puffed quinoa.

💬 “Floura exists to tackle two major challenges: America’s fiber deficiency and commercial food waste,” Britton said. 

Insiders can access the full interview for more about the new venture and go-to-market plans.

🚚 Northeast-based food distributor Baldor Specialty Foods acquired meat company Golden Packing. The deal allows Baldor to vertically integrate its meat processing capabilities and consolidate its meat offerings with an in-house brand. Golden Packing’s founders and staff of 35 butchers and drivers will be integrated into Baldor’s structure.

🍖 Meat supplier Young American Food Brands (or Miami Beef) has acquired 87-year-old smoked and cooked meat brand Best Provision Co. This is the fourth acquisition for Young American Food Brands since 2022, adding northeastern hot dog maker Hofmann Sausage Co. in February 2024 as well as Brooklyn Burger and Devault Foods in 2023.

The Vitamin Shoppe has been acquired by Kingswood Capital Management and Performance Investment Partners (PIP). The retailer will be purchased from Franchise Group in a deal that is expected to close later in the second quarter. Terms were not disclosed.

🏪 The Vitamin Shoppe operates over 675 stores in the U.S. It has become a destination for emerging brands in the nutritional supplement space as brands blur into conventional food and beverage categories.

🏋️ Last month, the retail chain said it would launch a new branded line of powdered supplements to meet elevated demand for GLP-1 companion products.

💭 The new owners intend to make “significant investments in the company’s third-party brand relationships, research and development across its owned proprietary brand portfolio,” while “upgrading stores and improving its digital platform,” said Kingswood partner Michael Niegsch and PIP partner Mark Genender in a press release statement.

Catch Up: Vitamin Shoppe Owner Files for Chapter 11

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

🍅 The Campbell’s Company made two senior management promotions: Elizabeth Duggan, current SVP and general manager of Campbell’s Canada, is now president of Snacks, and Janda Lukin, SVP and CMO of Snacks, has been named chief growth officer. 

🍔 Veggie-forward frozen food maker Dr. Praeger’s named James D’Agosta chief customer officer. He most recently served as CEO of Rite Stuff Foods. 

🛒 The Kroger Co. appointed several new individuals to retail leadership roles including Joe Kelley as SVP of retail divisions, Chris Albi as president of the King Soppers & City Markets division and Kendra Doyel as president of Food 4 Less.

🍟 Frozen seed oil-free fry slingers Jesse & Ben’s landed its line up in Sprouts Farmers Market stores nationwide, per a LinkedIn post by co-founder Jesse Konig.

😎 Sunday Supper is rolling out its plant-based Mozzarella Sticks (aka Mozza Fritto) to GIANT stores across Pennsylvania, Maryland and Virginia, its first step into a major conventional grocery chain. 

Get more people moves news in this recent roundup on Nosh.

In a year clouded by economic uncertainty, you’d think investors would be clinging to their cash. But by the looks of things, maybe not? This episode also features an interview with acclaimed Boston-based chefs Jamie Bissonnette and Kenta Katagai as they take us behind the scenes of an unforgettable culinary collaboration.

Listen to the episode now. Also available on Spotify and Apple Podcasts.