Posts tagged with "Food Dive"

Above, Spiced was intended to be the first permanent offering by the brand in more than three years. (Photo source: Coca-Cola)

Coca-Cola to discontinue its Spiced flavor after only seven months; new flavor coming in 2025

September 25, 2024

Coca-Cola is discontinuing production of its Spiced flavor after only seven months on the market, reports Food Dive. The  Atlanta-based company said it plans to “phase out Coca-Cola Spiced to introduce an exciting new flavor in 2025.”

No reason has been provided for the decision on Spiced. The company simply notes that Coca-Cola is “always looking at what our customers like and adjusting our range of products.”

Spiced was meant to be the Coca-Cola brand’s first permanent offering in more than three years. The soda, which combined traditional Coke flavor with raspberry and “spiced” flavors, started appearing on shelves in February.

As Coca-Cola looks to maintain and grow consumer interest in soda, new flavor offerings have played a key role in that strategy. Spiced also was an attempt by the beverage manufacturer to respond to growing consumer interest, especially among younger individuals, for spicier foods and beverages. Despite its name, Coca-Cola said the beverage is not spicy but rather bold in flavor.

In ending production of Spiced, Coca-Cola likely decided its resources and shelf space would be better suited to another still unannounced beverage.

Research contact: @FoodDive

Above, Khloe (left) and Kris Kardashian support the Swedish brand. (Photo source: Nick's)

How a Swedish company plans to dominate better-for-you snacking

September 6, 2024

Niclas Luthman has been an entrepreneur his entire career—and frequently has needed a quick meal or snack on the go, reports Food Dive.

“I was always going from one meeting to the next, always on the go, and so I was eating a lot of energy bars. I thought I was pretty healthy, you know I would exercise a lot, until my doctor told me that I was pre-diabetic, right on the edge,” he said to Food Dive in a recent interview.

That was 2014, when the Swedish business owner started taking his health more seriously. A mechanical engineer by trade, Luthman used his scientific background and embarked on an extensive research mission to find a treatment for his condition through food.

“I read everything I could and, besides controlling my diabetes through an anti–inflammatory diet, I was able to get rid of knee and back pain,” he said, “I am living proof that eating this way works.”

m there, Luthman engineered Nick’s, a better-for-you snacking brand that produces ice cream, candy bars, nut bars and protein bars.

The company’s Lighter Ice Cream features Epogee Foods’ fat-replacing ingredient EPG, which is a rapeseed oil-based fat substitute that can reduce fat calories by 92% because the oil cannot be absorbed by the body.

Instead of traditional sugar, the pints are sweetened with natural substitutes, including stevia, monk fruit, erythritol and xylitol. This means that Nick’s products have much fewer calories and sugar than conventional ice cream.

Standing out by leading with taste and smart partnerships

With consumers increasingly prioritizing health and wellness through food and beverage products, the better-for-you space has become inundated with startup brands and novelty products.

Luthman said Nick’s intends to stand out from the crowd in two key ways: leading with taste and smart, relevant partnerships.

The company officially launched in the United States in 2020 and is now in 13,000 stores nationwide—including ShopRite, Stop & Shop, Harris Teeter, and Acme, among others.

“If you taste our ice cream versus Halo Top, for example, there’s no question that ours is better, it’s creamier and gives the feeling of real ice cream,” says Brittany O’Brien, senior brand manager at Nick’s.

The key to Nick’s marketing strategy as a brand has been avoiding exhausting the consumer with health information.

“We have to make this an attractive brand for all people, and keep it a sexy brand that tastes good. And all the other benefits just come along with it.”

Luthman said he knows that a diet that is low carb and anti-inflammatory has many health benefits, but that shouldn’t be the number one reason why people reach for his product in the store.

“A lot of people don’t have the time that I have to read scientific articles and really understand all these things. We have to give it to them in the form of a very understandable brand,” said Luthman.

“We try to really be on top of what real science is. And there are fads going on left and right, some that last and some that don’t, but we’re not adjusting to the fads. We adjust to what the best science is out there.”

Finally, Luthman and the marketing team at Nick’s have also been laser-focused on key brand partnerships they think can help them further expand into the United States. The company recently landed a partnership with The Kardashians after sending them products to which they had a positive reaction.

“We were excited to partner with the Kardashians because we want to take [the brand] beyond being diabetic friendly; but we want everyone to have the option to eat sweets how they want—no judgment—and both versions of our products taste delicious.”

Nick’s carries a line of both Light Ice Cream and Ice Cream Novelties, which have different calorie ranges and sugar content.

Luthman said the company has a lot of “surprising” things on the docket for 2024, but for now, the brand is keen on making its splash with U.S. consumers and maintaining its brand integrity.

Research contact: @FoodDive

Above, Clio resonates with consumers because it offers the benefits of Greek yogurts, as well as the portability that makes it a convenient snack. (Photo source: Clio Snacks)

Clio refrigerated bar demand heats up as yogurt offering upends dairy space

August 8, 2024

With sales for refrigerated bar Clio posting a compound annual growth rate of 50% annually, CEO John McGuckin might be excused for sounding upbeat. But the former Sabra Hummus executive is not ready to rest on his laurels, reports Food Dive.

“The product was always ahead of its time,” McGuckin recently said in an interview discussing the chocolate-covered yogurt bar. “Even though we’ve had some remarkable success, there’s a long way to go” to build awareness and market penetration.

Clio Snacks was founded in 2013 by former accountant and budding entrepreneur Sergey Konchakovskiy. He was motivated by the idea of getting his kids to consume more nourishing foods. After noticing they were curious about a batch of strained Greek yogurt in the fridge, Konchakovskiy came up with the idea to coat it with chocolate.

More than a decade later, the bar is flourishing. Sales this year are forecast at $60 million, up from $9 million in 2019. McGuckin is optimistic that Clio could eventually near $500 million, if the company can meaningfully boost consumption and household penetration.

Clio resonates with consumers because of its better-for-you mantra, which includes the benefits of Greek yogurt, such as protein and probiotics, as well as the portability that makes it a convenient snack, he said.

These attributes have made the product a hit with a diverse range of retailers, with everyone from Walmart and Whole Foods to BJ’s Wholesale and natural food outlets, carrying it in their stores. Clio has recently prioritized foodservice and convenience stores as channels for growth.

A major obstacle that befuddled Clio is that retailers were confused as to where to carry its products. Some stores placed it in the $10 billion yogurt category; others, with refrigerated bars; and a third in deserts.

“That was a big challenge for us because our consumers did not have a destination in mind when they went to the store,” said McGuckin, who took over the CEO post in October 2021. The unpredictability left Clio to depend on consumers stumbling upon it when they went shopping.

To help alleviate the problem, Clio studied the market share and distribution of Mondelēz International’s Perfect Bar, which also is a refrigerated bar offering. Executives at Clio noticed that Perfect Bar had carved out a presence between yogurts and deserts. Clio soon settled on further building out that category and eventually dominating it.

“We’re having some success,” McGuckin noted. “But it’s still early.”

And Clio still has plenty of other challenges ahead: Its household penetration currently stands at 2%. Supermarkets carry, on average, only two of its products—compared to six to eight at most Walmart and Whole Foods locations. In order to build scale and expand the category between yogurts and deserts, McGuckin said Clio needs to convince grocers to carry between four and six items.

The New Jersey-based company has expanded its product line to include multipacks, which are conducive to retail and generate more revenue.

Research contact: @FoodDive

Above, as consumers turn toward better-for-you beverages, few companies are poised to benefit more than the newly combined Primo and BlueTriton entity. (Photo source: Blue Triton Brands)

Primo and Poland Spring owner BlueTriton agree to water merger

June 20, 2024

Primo Water and an affiliate of beverage company BlueTriton Brands are merging to create a diversified water giant with a presence in small portable bottles and large containers. BlueTriton’s brands include Poland Spring, Deer Park, Ozarka, Ice Mountain, and Pure Life, reports Food Dive.

The all-stock transaction will create a portfolio serving millions of consumers across different product formats, channels, price points, and usage occasions. The new company expects to have combined net revenues of $6.5 billion.

Blue Triton was formed in 2021 after Nestlé sold its North American bottled water business to private equity firms One Rock Capital Partners and Metropoulos & Co. for $4.3 billion.

As consumers turn away from sugary drinks in favor of better-for-you beverages, few companies are poised to benefit more than the newly combined Primo and BlueTriton entity. The companies noted in their release that retail sales of bottled water have grown from $17 billion in 2018 to $25 billion a year ago.

The new entity, they said, will bring together their “complementary strengths, creating a leader in North American pure-play healthy hydration.”

Together, the new firm will own nearly two dozen water brands, including Pure Life and Poland Springs, which are each $1 billion-plus products. It will deliver larger water containers to places like homes or offices, offer opportunities for consumers to fill or exchange containers at various locations, and deliver smaller bottles to locations such as grocery and convenience stores.

The merger will give the company a diversified presence across multiple channels—with 55% of revenue coming from retail, 25% from commercial, and 20% from residential. Primo and BlueTriton outlined multiple opportunities for growth, including the expansion into new channels and high-potential geographies; driving innovation in functional, flavored, and premium segments; and scaling of its fast-growing filtration business.

“The combined company will benefit from a diversified portfolio of iconic brands, a national footprint, and the strength of the combined delivery platform to better serve customers anywhere and any way they hydrate,” Robbert Rietbroek, CEO of Primo Water, said in a statement. “We are excited to combine Primo Water with BlueTriton to create a leading North American pure-play healthy hydration company.”

The new firm will be headed up by Dean Metropoulos, current chairman of BlueTriton, who will serve as nonexecutive chairman. Primo CEO Robbert Rietbroek will take the top post while David Hass, who currently is the CFO, will remain in the same role. The companies also said that BlueTriton’s Rob Austin will continue as COO.

The transaction is expected to close in the first half of 2025.

Research contact: @FoodDive

Above, a woman with Gutzy’s prebiotic product. (Photo source: Gutsy)

Gutzy taps into gut health craze with prebiotic pouches

My 21, 2024

With gut health top of mind for consumers, the aptly named Gutzy Organic is moving quickly to capitalize on its popularity, reports Food Dive.

Last month, the pouch maker launched a new packaging design and flavor, botanical turmeric and mango. It joins Gutzy’s other products—among them, Apple Spinach Kiwi Kale and Apple Strawberry Blueberry + Turmeric Dandelion. The company’s products each contain 5 grams of prebiotic acacia.

Gutzy’s founder and CEO David Istier said the growth of prebiotic sodas such as Olipop, Poppi, and Health-Ade’s SunSip shows that several years after the COVID-19 pandemic disrupted the food industry, consumers continue to look for items that will improve their gut health.

“We’ve seen a shift into people looking at natural solutions instead of just popping pills,” Istier said in an interview. “That’s why prebiotics are gaining momentum, and we’re a part of that.”

Gutzy’s goal is to provide a clean-label, convenient snack to consumers looking for more fruits, vegetables, and prebiotics; but lacking sufficient time to prepare them.

Istier said by occupying a niche category with few competitors, it has been able to grow its presence quickly.

“If you go to a supermarket, we’ll be next to refrigerated food cups and bars,” he said. “In that environment, we are unique.”

Istier is a longtime veteran of food and beverage companies, most notably working in executive roles at the parent company of Go Go Squeez. He saw an opportunity to bring the fruit pouch brand’s squeeze bottle format into a product targeted at adults, particularly in the fledgling gut health category which hadn’t yet been explored in snack products.

Gutzy launched its products in 2019 and is now in 6,000 stores, including Wegmans, Publix, and Meijer. The company pointed to Nielsen data finding that it was the fastest-growing brand in the fresh and healthy snacks category in the 13-week period ending in January 2024.

“Prebiotics were big in the supplement world, but they were not really in many mainstream food and beverage products before we launched,” Istier said. “We now have very strong repeat consumers, which is the most important thing.”

 Prebiotic potential

Prebiotics stand out from other gut health ingredients because they feed the good bacteria that already reside in the gut. Consumer awareness of prebiotics has grown significantly as people place a greater importance on their health. The global prebiotics market was valued at roughly $8 billion in 2023 and is poised to increase at a compound annual growth rate of 14.9% by 2030, according to a Skyquest projection.

Istier says Gutzy prioritizes keeping its consumers informed about the benefits of the ingredients through its packaging. “We have a claim on the back that talks about how acacia has been proven to increase the growth of beneficial bacteria over a period of four weeks,” Istier said. “It’s important for us to add something that is measurable, with what we know is scientifically backed up.”

Istier says Gutzy is prioritizing R&D to develop a “very unique” product containing plant protein to expand the reach of its brand—particularly with consumers looking for more sustenance from a snack.

“It will be a bit like what we have currently with refreshing fruit, but with the creaminess of yogurt,” Istier said. “The protein trend is not going away anytime soon, and we need to be in that space moving forward.”

Research contact: @FoodDive

Above, the popularity of air fryers has led to new product releases. (Photo source: Christopher Doering/Food Dive)

Surging air fryer popularity leads Nestlé, other CPG giants to rethink food

May 7, 2024

For nearly half a century, the venerable Hot Pocket has been synonymous with the metallic crisping sleeve used to heat the cheese-, meat-, and vegetable-filled turnover in a microwave. But the rapid growth in popularity of the air fryer has changed how many consumers warm the popular snack—leading brand owner Nestlé to ditch the sleeve altogether, reports Food Dive.

“Consumers are telling us, ‘You know, once I cooked the Hot Pocket in the air fryer, I’ll never go back. It’s just so much better and so much crispier,’ ” said Adam Graves, president of Nestlé U.S.’s Pizza and Snacking Division. “The future is all about the air fryer. It’s really just a generational shift that you’re going to see.”

The air fryer has rapidly become a force in the food industry, upending what products consumers buy and how they prepare them. Roughly two-thirds of homes today have at least one air fryer, according to data analytics firm Circana, up sharply from 2021. Two years ago, the appliance became the fourth most popular cooking device behind the stove top, microwave and oven. More people have an air fryer today in their kitchen than a coffee maker, Nestlé noted.

And the lasting popularity of the device has not gone unnoticed by food manufacturers. Nestlé, Conagra Brands, Campbell Soup, and Perdue Farms are among the companies developing a dizzying array of products made in or for an air fryer. An even larger number of products lining store shelves now contain instructions on preparing them using one. In some packages, microwave or oven instructions have been removed in favor of those for an air fryer.

Graves said Nestlé first removed the crisping sleeve in 2022 from its larger-sized Hot Pockets after it observed people enjoyed the crispier crust that resulted from an air fryer. It recently removed the sleeve from its Hot Pockets breakfast lineup and is on track to remove it from the rest of the brand by the end of this year.

Other products—such as Stouffer’s Mac & Cheese bites and DiGiorno personal-size pizzas—suggest on the front of the packaging that people prepare the offering in an air fryer.

Households are still using the microwave with greater frequency, but he noted that the highest level of air fryer use is among teens and college kids. Many uuniversity students have the device in their dorm rooms instead of a microwave.

Younger consumers are “what’s going to drive the growth of air fryers and our business going forward,” Graves said.

Research contact: @FoodDive

Above, the 'puff' cereal, which is targeted at Millenials and GenZers comes in two flavors, Fruity and Chocolate. (Photo source: WK Kellogg)

WK Kellogg debuts new cereal brand in better-for-you push

January 16, 2024

WK Kellogg is ringing in 2024 with a new cereal brand, Eat Your Mouth Off. The vegan offering is the cereal giant’s first new product launch since spinning off into its own business last fall, reports Food Dive.

The “puff” cereal—targeted at Millennials and Gen Z—comes in two flavors, Fruity and Chocolate. Each contains 22 grams of protein and zero grams of sugar per bowl.

The launch comes as WK Kellogg works to establish itself as its own business by diversifying its portfolio and adapting to a greater interest in health foods as consumer tastes shift.

An array of nutrition and industry experts believe cereal is in long-term decline, with a growing number of consumers citing its high sugar content and high processing as negatives. Leaders in the category are working to maintain its status as a premier breakfast option by rolling out new offerings aimed at health-conscious consumers.

As a newly spun off company following its launch as a fully-cereal business last year, WK Kellogg is aiming to redefine its role in the breakfast space as one that provides nutritious offerings.

In a statement, WK Kellogg’s Senior Marketing Director Sadie Garcia said the new brand aimed to “deconstruct” traditional cereals and create a new alternative.

“Crafted specifically for Zillennials in pursuit of a brand that mirrors their unique personalities, our latest creation is an unfiltered expression of the no-nonsense ethos that we, as a brand, represent,” Garcia said.

The company’s CEO Gary Pilnick tells Food Dive that the company has also quietly lowered the sugar content of two of its most popular cereals, Frosted Flakes and Froot Loops, by double-digits in recent years.

Other leading companies in the ready-to-eat cereal space are taking advantage of rising consumer demand for breakfast offerings that contain healthier attributes and unique ingredients.

For example, Post debuted a new offering last year aimed at helping consumers fulfill late-night cravings while preparing them for a solid night’s sleep. Its Sweet Dreams cereal—available in Honey Moonglow and Blueberry Midnight—contains a “nighttime herbal blend” and ingredients including zinc, folic acid and B vitamins, which the company claims melatonin production ahead of sleeping.

Research contact: @FoodDive

Above, Hotel Chocolat is being gobbled up by Mars. (Photo source: Hotel Chocolat)

Snickers maker Mars to buy UK chocolatier for $665M

November 28, 2023

Mars is paying US$665 million (€534 million) to buy Royston, England-based Hotel Chocolat, as the U.S.-based Snickers and M&M’s manufacturer expands its presence in the U.K. and increases its exposure to premium confections. Mars has operated in the U.K. since 1932, reports Food Dive.

Andrew Clarke, global president of Mars Snacking, said his firm has “long admired” Hotel Chocolat, which is known for its lower sugar and higher cocoa content. Clarke called Hotel Chocolat a “differentiated brand.”

While Mars is bes- known for its mainstream confections, the acquisition of Hotel Chocolat will give the New Jersey-based company a premium brand that it can expand in the U.K. and “potentially, in new geographies.” Mars said the purchase will add to its portfolio a brand with “distinctive capabilities in product development, luxury gifting, and immersive brand experiences.”

Even though premium offerings have been hit hard by inflation, having another brand that plays in this category could benefit Mars by complementing the lower-priced sweets synonymous with the more than century-old company.

At the same time, Mars acquires a chocolatier that has attributes that are increasingly popular with consumers, including the use of natural ingredients, a commitment to use every part of the cocoa bean, and guaranteeing its growers receive a living income in exchange for meeting sustainable and ethical labor targets.

In buying Hotel Chocolat, Mars will bring to the mix its larger global footprint, supply chain connections and relationship with retailers that immediately provide a platform to grow the nearly 20-year-old brand. Mars also will benefit from Hotel Chocolat’s physical stores and digital commerce platform.

Hotel Chocolat’s international expansion plans have run into problems before; so having Mars as its parent will be valuable, should it decide to grow into additional markets. CNBC noted that Hotel Chocolat shuttered its direct-to-consumer website sales in the United States in September 2022, months after closing its high-street stores in the country.

“We know our brand resonates with consumers overseas, but operational supply chain challenges have held us back,” Hotel Chocolat said. “By partnering with Mars, we can grow our international presence much more quickly using their skills, expertise and capabilities.”

Research contact: @FoodDive

Above, the Truff brand sells “luxury” truffle-infused hot sauce, pasta sauce, mayonnaise, oil, and salt. (Photo source: Truff)

Kim Kardashian’s private equity firm acquires minority stake in Truff

November 23, 2023

On Tuesday, November 20, private equity firm Skky Partners—founded by Kim Kardashian and business partner Jay Sammons—announced that it had reached an agreement to acquire a “significant minority stake” in truffle-infused hot sauce and condiment brand Truff, reports Food Dive.

This represents the first capital investment for Skky, which launched last year—aiming to make minority investments in consumer goods companies. Financial terms for the deal were not disclosed.

Truff “singlehandedly brought truffle-infused products into the mainstream food scene,” and has the potential for continued growth, Kardashian said in a statement.

The investment comes as premium hot sauce offerings—particularly with unique, trendy flavors and ingredient—grow in popularit,y along with the broader spicy foods category.

Founded in 2017, the Truff brand sells “luxury” truffle-infused hot sauce, pasta sauce, mayonnaise, oil and salt—which are available in over 20,000 stores nationwide. It saw a significant boost in popularity on social media in recent years and grew a dedicated fanbase, with its @sauce Instagram handle.

Truff also collaborated with major brands including Clorox’s Hidden Valley Ranch, with a limited-edition Truffle Ranch product in 2022.

The success of Truff follows spicy flavors gaining more prominence, particularly with younger consumers. A Datassential report earlier this year found that Milennials and Gen Z are the first generations to prefer Mexican food to Italian.

The hot sauce category is projected to be worth over $5 billion by 2030, growing at a compound annual growth rate of 7.42%, according to Fortune Business Insights.

While a select few hot sauce brands like Tabasco have enjoyed mainstream success in the past, the growth of the category continues to bring more players into the fold, touting distinctive flavors and occasions.

Kraft Heinz debuted a line of premium sauces and spreads in 2022 under the Heinz 57 banner, which includes Hot Chili and Black Truffle Infused Honey items. Earlier this year, the company unveiled a line of Spicy Ketchup items, adding spice from chipotle, habanero.

Research contact: @FoodDive

Above, Gatorade joins the brigade of water producers. (Photo source: PepsiCo)

PepsiCo brings hydration juggernaut Gatorade into water

September 20, 2023

Gatorade is launching its first-ever water offering as the multi-billion-dollar PepsiCo brand works to aggressively expand its dominant presence in hydration. The electrolyte-infused beverage, which was developed by the consumer packaged goods (CPG) giant to help support all-day hydration, will start hitting shelves in 2024, reports Food Dive.

Gatorade Water is both electrolyte-infused and is alkaline with a pH of 7.5 or higher.

“People are looking for wellness solutions throughout the day, not just when they are active,” Emily Boido, senior director of marketing at Gatorade, said in an interview. “We’re looking to provide a suite of solutions across our [Gatorade] portfolio that really hit whatever your individualized needs are—whether that’s performance, wellness, somewhere in between.”

For now, Gatorade Water will not incorporate flavors as it focuses on consumers who don’t want them in their beverages. Gatorade also owns Propel, a line of flavored fitness waters with electrolytes, vitamins and antioxidants that meet this need.

While Gatorade has become a juggernaut brand with annual sales topping $6 billion and more than 70% of the sports drink market, the brand is looking for other ways to meet the needs of the consumer.

Gatorade is far and away the market leader, but competitors such as Coca-Cola’s BodyArmor are growing in popularity. This places the impetus on the decades-old PepsiCo brand to find ways to keep itself relevant with its core audience, who turn to it for hydration, while finding other ways to attract and retain other users.

The water is the latest in a series of new offerings from Gatorade. In 2022, it entered the energy drink category with its first caffeinated beverage called Fast Twitch; and, later, gummies, its first dietary supplement.

A year earlier, it launched Gatorlyte, a beverage with more electrolytes and less sugar than its traditional sports drinks that is aimed at athletes who want “rapid rehydration.”

Water is a $25 billion category, but there are more than 30 million “active consumers” who are not purchasing enhanced water whom the new Gatorade extension aims to bring into the category, according to PepsiCo, citing IRI data.

Boido said the trust consumers have in Gatorade, its widespread brand recognition and PepsiCo’s marketing heft will enable them to “get [Gatorade Water] into the hands of consumers.”

Research contact: @FoodDive