Deductions can be an overwhelming pain for growing CPG brands, often negatively impacting their cash flow. But not managing them properly can cost brands well beyond those lost dollars and margin points. Here’s a deeper look into how to take control and use deductions to improve your business. https://hubs.li/Q02n_8gS0

It’s earnings season folks. That means today on Nosh we are bringing you a rundown on the quarterly and full-year performance of two Big Snack players and, exclusively within this newsletter, an update on the possible meltdown of Unilever’s ice cream business. Let’s dive in: 

🥣 Kellanova saw net sales increase slightly in Q4 to $3.1 billion and recorded a 4% increase in full-year sales to $13.1 billion. “The Kellanova era is off to a good start,” said president and CEO Steve Cahillane on the Thursday morning earnings call. 

• The company expects a 14% operating profit margin in 2024 as it works to optimize production for both its North American frozen foods business and European cereal segment.
• The company is also prioritizing innovation in its snacks category, its largest segment in the U.S., as well as growth in emerging markets.

🍫 The Hershey Company expects ‘historic’ cocoa prices to limit FY 2024 growth. The company posted Q4 sales growth of $2.65 billion, a modest 0.2% y/y increase. 

• Its Salty Snacks segment – which has been instrumental in the diversification of Hershey’s product portfolio – saw sales drop 24.6% due to planned inventory declines. 
• The North America Confectionary division fared better, with sales up 2.1% to $2.2 billion.
• Hershey expects FY 2024 net sales growth of 2% to 3%, primarily driven by net price realization. Both reported and adjusted earnings per share are projected to be flat due to high sugar and cocoa prices and one-time expenses related to ERP. 

🍦 Unilever is launching a new growth action plan to win back market share. Despite full-year positive volume growth and margin improvements, CEO Hein Schumacher said the multinationals’ “competitiveness remains disappointing,” during its FY earnings report today.

• The company launched a $1.6 billion share buyback as it looks to improve its financial position; its full-year operating profit rose 2.6% but still missed analyst expectations. 
• The Ben & Jerry’s and Magnum bar maker saw its ice cream segment volumes drop 6% over the full-year while sales jumped 2.3% and prices rose 8.8%. 
• Unilever’s share price increased 4% following the earnings release.

Dive Deeper into the results from The Hershey Company and Kellanova on Nosh.

New year, new podcast. Today, BevNET and Nosh launched a new podcast called CPG Week where our editorial team will bring you a weekly quick hit of food and beverage news. 

What did we cover in our first show? The high volume of mergers and acquisitions that may signal a possibly fruitful 2024 for companies looking to transact. The team digs into all the latest: from a new investment vehicle taking over sustainable treat maker Alter Eco to Moosehead Brands betting on Beanfields and Caveman Foods. If nothing else, take a listen to hear the soothing voice of Nosh’s new managing editor Monica Watrous breakdown what a “ham(m) sandwich” actually translates to in at least one Kansas City bar.

Tune in here to this week’s episode and subscribe to get a fresh episode every week. 

Like what you hear? Please don’t hesitate to rate our show and leave a review on your podcast platform of choice.

Online grocer Misfits Market has launched a perishable fulfillment service, Fulfilled By Misfits, that allows brands to leverage the company’s national scale, infrastructure and logistics capabilities. 

📦 Existing options for perishable brands are expensive and inflexible for small and growing businesses. Misfits aims to provide “cost-effective, reliable and robust solutions” for storage, fulfillment and e-commerce.

⏭️ Core services include pallet receipt and storage, pick-and-pack order fulfillment, a comprehensive warehouse management system, and first-party and third-party logistics shipping. 

🍎 Brands currently using the service include Spot & Tango (fresh dog food), Cometeer (frozen coffee capsules) and Little Spoon (fresh baby and children’s food). 

Cocoa-free chocolate company WNWN wants to win the support of multinational food corporations by presenting its alt-chocolate product, made from barley and carob, as a solution for ESG commitments.

🍫 The London-based food tech company recently participated in Mondelēz CoLab Tech Accelerator and has 15 pilot partners utilizing its ingredient everywhere from high-end restaurants in France to pastry shops in the U.S.

🛍️ The company is also gearing up for a retail launch in the U.K., fueled by a $5.6 million Series A last year. 

💭 “This is a brand new category that we're co creating with a couple of others,” said co-founder and CTO Johnny Drain. “But [right now] if you go to someone in a supermarket or on the street and say ‘would you want to try some cocoa-free chocolate’ before they say ‘yes’ or ‘no,’ they'll probably say: ‘what the f— is cocoa-free chocolate?’”

Check out the full story on Nosh to hear how WNWN answers that question. 

Paris-based tech platform Jow announced today it has raised $13 million led by global investor Northzone. Jessica Schultz, a partner at Northzone and co-founder of HelloFresh will join Jow’s board. The new capital will be used to expand its personalized menu-creating-grocery-shopping app further into the U.S.; it has been partnered with Kroger since 2022. 

🍳 Consumers using Jow’s platform input basic information like household size, dietary restrictions, and cooking appliances they have access to and the app recommends a slate of recipes, then allowing the user to add necessary ingredients to their cart directly in the app

🧃 Users can also add on household items, beverages, and more. The groceries are then either delivered or packed for in-store pickup by the partner store. 

🗽 Jow currently boasts about 6 million users and works with eight of the leading grocery chains in France. The company recently established a team in New York to support its U.S. growth.