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Locavore Trend Drives Grocery Sales

By Lorrie Baumann

Coached by a generation of chefs with television shows, consumers have learned to ask for fresh, local and organic products. Grocers are now teaching them to look for those at the grocery store as well as the farmers market.

“I think people are buying local now more than ever,” said Pat Brown, CEO of the Natural Markets Food Group, which includes Mrs. Green’s Natural Market, Planet Organic Market and Richtree Natural Market restaurants in New York, the Mid-Atlantic, Chicago and Canada. Consumers are asking more questions now about where their food comes from, Brown said. “It forces the hand of the retailer to go out and get that product…. Organic sales are growing at a high rate as well, but the consumer is interested in buying food in their neighborhood from people who grow it in their neighborhood.”
According to the U.S. Department of Agriculture, total local food sales last year amounted to $6.1 billion, of which only $1.31 billion in sales occurred directly from farmers to consumers through farmers markets, u-pick farms and farm stands. Sales from farms that passed through the hands of intermediates – restaurants, distributors and retailers – grew from $2.7 billion in 2008 to $3.35 billion in 2012.

In the nationally representative 2011 U.S. Grocery Shopper Trends Survey conducted by the Food Marketing Institute, more than four out of five of the surveyed grocery store shoppers reported that they purchased local foods occasionally, while almost one out of 10 says they purchased local foods whenever possible. The Specialty Food Association reported in its “The State of the Specialty Food Industry 2015” report that, according to specialty food manufacturers, “Local and all-natural products continue to be the most interesting to consumers. More than half of the manufacturers cited ‘local’ as a claim that interests consumers most today, with almost half of them expecting growth in local products over the next three years. “

Those who buy local foods are doing it because they want food that’s fresher and tastes better, and they want to support their local economy rather than because they’re concerned for the environmental impacts of transporting food long distances. In a 2012 study, scientists found that grocery shoppers were more willing to pay extra for food labeled “local” than they were for foods labeled “certified organic,” “certified fair trade” or with a note about the food’s carbon footprint.

Some of those shoppers, particularly those who are white, upper to middle class and convinced that their buying habits can “make a difference,” are looking to farmers markets to supply their desires for fresh, local food – mainly produce – driving growth in the number of farmers markets across the country by 180 percent between 2006 and 2014. In 2014, the USDA counted 8,268 in the United States. State and local governments are encouraging the trend too. As of 2014, 26 states had state farmers’ market associations designed to provide the markets with technical assistance, and there were 65 state and regional or local Buy Fresh Buy Local chapters in 21 states organizing outreach events and local food guides to promote locally produced food and farmers.

Grocers Respond
Grocers have taken notice. Almost three quarters of the retailers surveyed by the Specialty Food Association said that “local” is of great interest to consumers today, with more than half of them saying that they expect growth in that segment over the next three years. “Over the past five to six years, the focus on local, natural and organic has really taken hold among food retailers,” said Jim Hertel, Managing Partner for food retail consultants Willard Bishop.

Natural Markets Food Group has begun contracting directly with local farmers to provide produce to its markets in the Northeastern U.S. “At the peak of the season in the Northeast, we will be 65 or 70 percent local produce. That farmer used to sell produce in farmers markets… It’s exactly why we’re growing, that we’re able to create relationships with local farmers and bring their product in,” Brown said. “Other markets are doing the same thing.”

The Rising Tide Floats All Boats
While not necessarily local, sales of organic products are following the consumer preference for fresh, trustworthy products. “That’s true both of natural foods retailers as well as more traditional mainstream food retailers, whether it’s Walmart, which has significantly ramped up emphasis on organics, especially value-priced organics,” said Hertel. “There’s been a recognition by retailers that consumers are interested and also that it’s an area where the margins are greater, so profits are greater.”

Sales of organic food in the United States totaled $35.9 billion in 2014, an 11 percent increase from the previous year, according to the latest data from the Organic Trade Association, which reported that total U.S. sales for organic products amounted to more than $39 billion in 2014, breaking previous industry records.

Sales research by the OTA shows sales trends for organic products growing at double digit rates for several years, compared to about a 1.5 percent projected growth rate for other foods. “The growth rates of traditional product lines are much smaller,” Hertel said. “The Millennial generation is very interested in healthy eating, and to them, that means natural and organic as well as less processed food.”

The majority of American households in all regions of the country now make organic products a part of their supermarket and retail purchases, according to the new research from the Organic Trade Association.

Retailers report that the demand for organic produce that prompted entry into the market by Walmart and Kroger is causing stress on the supply chain and making it harder for smaller retailers who have less buying power to compete for supplies that are limited by the amount of acreage that farmers have dedicated to certified organic growing methods and the length of time it takes to obtain organic certification on new fields. “The supply chain for organic product has become difficult at best because the bigger chains are getting into the market. The demand is causing outages and shortages occasionally,” said Brown. “Bigger growers are pleased because it’s easier and cost-effective to contract out an entire crop to a large buyer. The buying power of a big company like that impacts those who’ve been selling product for a long time.”

Imports of organic produce from Mexico are helping to ease the shortages and meet the demands of American consumers who’ve been long trained to expect their grocers to supply whatever food they want whenever they want it. “There’s a lot more organic farming in Mexico now than even five years ago,” Brown said. “There are gaps in some products, but generally, you can get organic produce year-round now because there’s so much organic production in Mexico now.”

Expert Says Genetically Engineered Foods Pose No Danger

By Lorrie Baumann

Genetically engineered crops pose no current danger to the American Food Supply, according to Gregory Jaffe, Director of the Project on Biotechnology for the Center for Science in the Public Interest. That’s not to say that genetic engineering poses no threat for the future, so CSPI is urging the federal Food and Drug Administration to require pre-approval before new genetically engineered crops are allowed to enter the nation’s food supply.

CSPI, often called “The Food Police,” is the non-profit consumer group that’s been very vocal over the past several years in campaigns urging less super-sizing of fast food menu items, less consumption of sugar-sweetened beverages and more labeling of trans fat content in foods. The organization receives no money from the food industry, Jaffe said.

Genetically engineered foods are currently regulated under Food and Drug Administration rules for substances “Generally Recognized As Safe.” Under those rules, food manufacturers are not required to obtain prior approval from the FDA before including them in food products. According to the FDA, “any substance that is intentionally added to food is a food additive, that is subject to premarket review and approval by FDA, unless the substance is generally recognized, among qualified experts, as having been adequately shown to be safe under the conditions of its intended use, or unless the use of the substance is otherwise excluded from the definition of a food additive.” CSPI and other organizations are asking the FDA to exercise tighter control over GRAS designations and to require a safety assessment for any food ingredient produced with new science or technology before it is placed on the market.
There are only eight crops for which genetically engineered varieties are currently grown commercially: corn, soybeans, cotton, sugar beets, canola, alfalfa, papaya and squash, according to Jaffe. These genetically engineered crops are currently grown in 28 countries around the world by more than 18 million farmers. Japan and China each have more than 7 million farmers growing genetically engineered crops, he said. More than 90 percent of the corn, cotton, sugar beets and soybeans currently grown in the United States has been genetically engineered.

Although wheat is widely rumored to have been genetically modified, and that’s frequently proffered as an explanation for growing rates of celiac disease and gluten intolerance, that’s a myth. While wheat has been genetically engineered and field tested, the modified seed was never been sold to farmers for commercial crops, simply because farmers weren’t interested in growing it, so it was abandoned in 2004. There is currently no genetically modified wheat approved for release anywhere in the world. “There is no commercial variety of genetically engineered wheat,” Jaffe said. “There is no genetically engineered wheat on the market…. Gluten comes from wheat, so the information out there that gluten-intolerance is related to genetic engineering is not true.”

Genetic engineering works by moving beneficial traits from one organism to another in a very precise way. For instance, Bacillus thuringiensis, commonly known as Bt, is a naturally occurring bacterium that lives in soil and that’s routinely used by organic farmers as a natural insecticide. It works by infecting and killing particular insects, such as European corn borers, Colorado potato beetles and cotton bollworms. Each strain of the bacterium acts on specific insects but is harmless to other insects and to humans, other mammals, birds and fish.

Scientists have figured out how to extract from the bacterium’s DNA the gene that produces the protein that kills insects infected by Bt and insert that gene into plants. When those plants make seeds, the seeds carry the Bt gene, inheriting that in the same way they inherit other traits of their parent plants. Both corn and cotton have now been engineered to produce the Bt protein, which means that farmers who grow that seed don’t have to spray their fields with Bt to kill the targeted insects because the plants are able to produce the insect killing protein themselves. “It’s almost like vaccinating the crop,” Jaffe said.
When people eat those genetically engineered plants, the plants’ altered DNA doesn’t become part of the human bodies that ate it, just as humans who eat a salad don’t incorporate that DNA into their genes and turn into lettuces. “There is no harm from foods made from those crops. There’s international consensus that there is no harm,” Jaffe said. “We don’t know about future crops because we have to look at that on a case by case basis, but for now, there is no harm.”

Jeni’s Ice Cream Still Recovering from Listeria Contamination

By Richard Thompson

Jeni’s Ice Cream reopened with fanfare after a voluntary recall and temporary closure of its shops following the discovery of Listeria in a couple of pints of its ice cream. Then the company shut down again on June 12 after finding Listeria in its plant through routine monitoring. This time, the company is confident that the new contamination did not affect any of its ice cream. There is at this time no date for a resumption of production, and if you visited the Jeni’s Ice Cream booth during the Summer Fancy Food Show, you noticed that there wasn’t any ice cream there anywhere.

Jeni’s reopened in late May after a month of reorganizing after the federal Food and Drug Administration determined a pint of ice cream for sale in Lincoln, Nebraska was contaminated with Listeria, prompting further investigation into the company’s practices. Listeria monocytogenes is a bacterium usually found in soil or water, but can be found in unpasteurized milk and other dairy products, causing serious and sometimes fatal infections in young children, the elderly and those with weakened immune systems. Healthy adults can experience symptoms such as fever, stiff neck, confusion, abdominal pain and diarrhea.

Jeni’s immediately voluntarily recalled over half a million pounds of ice cream – about $2.5 million dollars worth – and shuttered its 20 shops while the company cooperated with the FDA and outside experts. “After the finding of Listeria, the FDA and our team took a fresh look at everything we were doing,” said John Lowe, CEO of Jeni’s Ice Cream.

The FDA told Jeni’s that between April 20 and April 30, the agency observed protocol issues, sanitary violations and a lack of contamination prevention oversight by the company. The closure gave Jeni’s staff and outside experts time to reevaluate its practices and locate the source of the Listeria outbreak. Jeni’s broad testing found a second pint to be contaminated, and the company isolated the source to a single piece of equipment. “When we found the ‘smoking gun’ we were than able to institute a plan based on recommendations from outside experts,” Lowe said.

The company spent $200,000 to overhaul its facilities and modify everyday procedures. “We installed new walls, new operating procedures, and we introduced new testing protocols,” said Lowe, “We want to put ourselves in the best position possible to never have this happen again.”

Jeni’s now requires that all equipment must be cleaned overnight by a third party operator. “Every morning now, we protein test all of the equipment before putting it back together. If it comes back all green, it’s all good. If it comes up red, then the equipment needs to be cleaned again,” Lowe said.
The processing of fruits and vegetables was also modified. Prior to the inspection, fruits and vegetables were processed in the same kitchen as the ice cream. “We won’t bring in fresh fruit directly into the facility anymore. Now there is an intermediate step. Fruits will be cleaned and processed before being brought into the facility,” Lowe said.

From the voluntary recall through the reopening on May 22, Jeni’s used its website and social media to communicate with customers in an effort to maintain consumer confidence. “We have always been an open company. We want to be transparent with customers and consumers. We sought to keep the public informed about what we knew,” said Lowe.

Jeni’s says that the time during the closure was its darkest hour and that community support and the welcome reception made its comeback particularly special. The company attributes its renewed success from its transparency during the closure. “We feel the love from the people that stood with us. We are in communication with all retailers and don’t believe we’ll have lost a single shelf slot,” Lowe said.

Gluten Free Mixes and Blends Offer Unexpected Options

By Micah Cheek

With gluten free diets making headlines, food companies are putting more focus than ever on their wheat free alternative products. Irene Gottesman, Director of Marketing and Sales at Blends by Orly, credits the shift to the new availability of gluten allergy testing, which has led to children being tested earlier in life. She adds, “When one child is gluten free, often the whole family becomes gluten free.” Parents will start consuming gluten free products make sure their child doesn’t have to eat a different meal than the rest of the family. An added benefit to this is a greater ease in meal planning. This increased consumption has placed gluten free breads, cookies and pastas side by side with their wheat filled counterparts in grocery aisles.

The pre-made foods being produced are a great help to people with gluten sensitivities or allergies, but they still suffer some significant shortfalls. The shelf life of unfrozen gluten free baked goods is generally shorter than baked goods with wheat. This causes many baked goods to come out of their package already stale. Some companies have to resort to using more preservatives to maintain shelf stability. Flavor and texture issues have also cast a bad light on the gluten free market, and discriminating consumers are now driving demand for products that match or exceed the palatability of wheat based baked goods.

Rivaling wheat products is where baking mixes most stand out from other gluten free products. Janine Somers, Director of Marketing at Stonewall Kitchen, says, “Using high quality ingredients and never sacrificing on taste, we develop our gluten free products with the same standards we use for every other Stonewall Kitchen product. Quality and flavor are never compromised.” Due to the popularity of these mixes, gluten free recipes from pizza crust to doughnuts are now being offered. The homemade aspect of these products offers a greater sense of quality and freshness. “Since everything at Stonewall Kitchen starts and ends with quality, we believe the rise in this category for us in particular is due to the fact that our gluten free products are just as tasty and satisfying as our traditional mixes,” Somers says.

The ability to replicate the texture and flavor of wheat based products is determined by the careful mixing of different flours. As the market for gluten free flour blends and baking mixes grows, producers are trying new combinations of grains and starches in an effort to more accurately replicate wheat’s behaviors. Somers says, “While most mixes use potato, rice and tapioca flours, developers are looking at oats which also offer a nutritional quality. Another trend in mix development is the use of bean flours and other grains such as sorghum, chia and millet, which are being used in a combination with other gluten free flours.” Blends by Orly has a collection of flour blends which are designed as one to one wheat flour substitutes in any recipe, rather than a single product mix. “The reason we’re able to say it rivals wheat products,” says Gottesman, “Is because we tested them against wheat recipes.” Blends by Orly baked classic recipes with their flours, taste testing them on people who regularly ate gluten. This helped to eventually match the familiar qualities of the original product.

The emotional motivator for making gluten-free products at home comes from how customers feel they are perceived personally. Buying gluten free products can make consumers feel like their eating habits or restrictions are on display. Gluten free packaging is often distinct from other packages, and is marketed primarily for health rather than flavor. Gottesman says, “When you’re buying something for a dietary issue, you don’t want to feel like you’re in a pharmacy all the time.”

All-American Mustard Girl Cutting the Mustard

By Lorrie Baumann

The Real Mustard GirlJennifer Connor isn’t one of those little girls who grew up always knowing exactly what she wanted to do for the rest of her life, and whatever her passing dreams were, they didn’t include becoming the Founder, President and Chief Mustard Officer of Mustard Girl All-American Mustards. “I never thought I would ever get into mustard. Nevertheless, when I was little, I always loved the color yellow. I also always loved cooking and loved mustard, growing up and so the seeds were planted,” she says. “I knew there was something out there for me. I always knew that if you follow your heart and believe in it, you’ll end up somewhere.”

Then she tasted Mr. Rendall’s mustard while she was a freshman at the University of Wisconsin-Madison. It’s not too much to say she fell in love with it. At the time, she was an art history major thinking about pursuing a career in advertising. She graduated from college, and she did that for a while, but then she heard that Rendall was planning to retire, taking his recipes with him.

Connor tracked him down and begged him to sell her his recipes as she couldn’t imagine the world without them. “I asked him if I could help him grow his company. He said no, you’re just an art history major. They’ll eat you alive out there; it’s too competitive,” she says. She asked him for a week to gather her resources and figure out how to run a mustard company before he made his final decision. Then she drove up to her family’s cabin in northern Wisconsin to think. “I was looking for a sign, if this was the right thing to do- so asked my higher power for a rainbow or a shooting star,” she says. “But to my dismay, It rained all weekend.”

On Sunday morning, she attended the little countryside church nearby still looking for a final sign. “I thought to myself if the father says yellow during the sermon, than that would be my sign. If not, then maybe this mustard journey was not meant to be.” The father didn’t mention the color yellow; however, he did say that we all have times of doubt in our lives, and when we doubt, we just have to remember the parable about the faith of the mustard seed. “I almost fell off my pew,” Connor says. “I’d never heard the parable. There was a nice lady in church who held my hand and told me the story of the mustard seed. I cried and hugged her, and everyone left the church, and I thanked my Higher Power for the best sign I could ever get, and at that moment made a promise to spread ‘mustard sunshine’ across America and inspire and help others along the way too.”

Connor called Rendall immediately and told him the story. “He said that, ‘I don’t want to be struck by lightning,’ but he was just waiting for someone who’d have enough love to stick with it, and I did. He told me that I’d probably lose my shirt three times, which I did, but I never gave up,” she says. “It changed my whole life. It’s all about believing in yourself. I wanted the whole world to have the opportunity to have that goodness.”

Rendell agreed to spend five days with Connor teaching her everything he could about the business in that length of time. The two met in a Starbucks coffee shop from 7 a.m. to 7 p.m. each day, and finally, Rendell turned over the yellow pieces of paper that contained his mustard recipes and his sales records for the customers who’d been buying from him. “He gave me the building blocks to help me get started to where I am today,” she says.

That was in 2006, and Connor spent the next two years trying to practice everything Rendell had taught her while she improved the recipes and found a co-packer who could attend to production while she made the sales. When she moved production to the co-packer in 2008, just in time for the American economy to take a nosedive, she decided to change the name of her company to Mustard Girl. “I decided that since I had evolved the recipes and made them my own, we could have a real-life mascot who could be a role model for girls,” she says. “People were calling me Mustard Girl, so I had someone draw a picture of me for the labels and decided to call the mustard, Mustard Girl.”

She put every dime she had into the business, and in the absence of anyone else to advise her about the mustard business, she thought back to what Rendell had told her about how competitive the business was. There were weeks when she didn’t eat much besides rice, beans and mustard. She called on family and friends to help out, a humbling experience that she says has brought her closer to them too. “Going into this, I was very naive. I didn’t know how hard it was going to be and how fierce it was going to be. I got into this at a time when people weren’t spending money on new products, banks weren’t lending and little did I know I was competing in one of the toughest food categories. I was chewed up a lot, but I always knew that my destiny in life was to have faith in the mustard seed. I really needed to believe that. I’m a big fan of Vince Lombardi, and I’ve always remembered what he said about what it takes to be Number 1. I am going to go until I can’t possibly go any more but not never up,” she says. “I also didn’t have the billions of dollars that the other big companies have. I did a lot of guerrilla marketing, a lot of festivals and food shows and demonstrations in grocery stores. I just worked really hard and had a lot of sleepless nights, but never gave up on the faith of the mustard seed or Mustard Girl.”

Mustard Girl assorted bottles hi resToday, Mustard Girl All-American Mustards are still made from ingredients sourced in the Midwest. Mustard seeds come from Wisconsin and from Canada. All the other spices and ingredients come from the Midwest. The honey that’s in some of the mustards is also from Wisconsin. Mustard Girl All-American Mustards are sold in all Super Targets across the U.S., Publix stores in the South, Whole Foods in the Midwest region, expanding to other territories in the next year. Mustard Girl is the official mustard for the burger bars on Norwegian Cruise Lines. Mustard Girl mustards are also being adopted by leading chefs, including the Lettuce Entertain You Restaurants and Tom & Eddie’s. “Kids love the Sweet ‘N’ Fancy Yellow. Men love the Zesty Horseradish. Women love the American Dijon, and children love the Mustard Girl Sweet N Fancy Yellow. Everyone loves the Mustard Girl Sweet n Spicy Honey Mustard and Mustard Girl Stoneground Deli too- a range of flavors for the whole family that taste like a beautiful symphony upon your taste-buds.” Connor says. “I was asked to participate in Aspen Food & Wine Show this June which was a great honor. This is my first Aspen show, which I’m really looking forward to, and did the NRA Show last year, which was a huge success.” The mustards are also medal winners in the World Wide Mustard competition. These mustards are packed with mustard seed, turmeric and spices; they are all natural, gluten free and kosher, with no fat and no preservatives. She’s currently developing new mustards and also some salad dressings that she hopes to bring to the market in 2016 along with a cookbook. “I’m still looking for my ketchup boy too,” she says. “I’ve just been too busy cutting the mustard.”

In addition to running the company, Connor has a busy schedule of community involvement, including a number of projects aimed at improving life for women and children. She works with the Women’s Health Foundation in Madison and with the Ivory Coast Women’s and Children’s Clinic started by a friend of hers. She has volunteered with Common Threads organization started by Chef Art Smith, owner of TABLE Fifty-Two and other restaurants. The organization helps inner-city kids learn to cook and teach them about nutrition in hopes of preventing obesity, and take better care of themselves so they can longer, healthier lives. Make a Wish Foundation of Wisconsin gets donations from her. Madison Children’s Museum too. “I also like going to schools to help inspire children. I go to any class that would like to have me,” she says. “I come in dressed up as Mustard Girl and tell them my story, and we talk about what everybody wants to be when they grow up and make some yummy mustard inspired recipes. The children are our future mustard seeds of tomorrow…. Spreading the sunshine the best you can, inspiring others to believe in their own mustard seeds, and to not give up out there no matter how hard it is, makes life worth it in the end, what a better way to do this than through mustard!”

 

IDFA Applauds Bipartisan Senate Passage of Trade Promotion Authority

The International Dairy Foods Association (IDFA) today commended the Senate for passing “The Bipartisan Congressional Trade Priorities and Accountability Act of 2015,” the TPA-2015 bill.

“We commend the Senate for its bipartisan collaboration in passing the TPA-2015 bill,” said Connie Tipton, President and CEO of IDFA. “We thank all the senators and representatives who supported TPA and look forward to the president signing this important legislation into law as soon as possible.

“The U.S. dairy industry will continue to grow and prosper with increased trade opportunities, and TPA is critical to ensuring that U.S. dairy companies receive the best deal in future trade agreements,” Tipton said.

IDFA is seeking comprehensive and significant market access for U.S. dairy exports from the two trade agreements currently under negotiation – the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership.

Ahold and Delhaize to Merge

Ahold and Delhaize have ended months of speculation with an announcement that the two companies will merge. The merger, valued at $29 billion by the Wall Street Journal, will create one of the largest grocery operators in the U.S., with more than 6,500 stores worldwide. In the U.S., Ahold owns Peapod as well as the Stop & Shop and Giant chains, while Delhaize owns the Food Lion and Hannaford banners.

Mats Jansson, Chairman of Delhaize Group, will become Chairman of Ahold Delhaize. Jan Hommen, Chairman of Royal Ahold, and Jacques de Vaucleroy, Delhaize Group Director, will become Vice Chairmen of Ahold Delhaize. Dick Boer, Chief Executive Officer of Royal Ahold, will become Chief Executive Officer. Frans Muller, Chief Executive Officer of Delhaize Group, will become Deputy Chief Executive Officer and Chief Integration Officer.

The transaction is expected to be completed mid-2016, following regulatory clearances, associated consultation procedures and shareholder approval.

 

John Kelly Chocolates to Unveil New Chocolate Bar Line at SFFS

John Kelly Chocolates, known for its award-winning truffle fudge, walnut caramel clusters and other handcrafted chocolate delights, has substantially expanded its product offering by introducing a line of solid chocolate bars, in six different flavors, at the Summer Fancy Food Show. The line serves as a complement to John Kelly’s existing products, and will appeal to customers who enjoy solid chocolate in addition to its signature creamy, unique gourmet chocolate fudge.

John Kelly Solid Choc Bars 3inThe line of solid chocolate bars features four flavors in dark chocolate (73 percent cacao) and two flavors in milk chocolate (41 percent cacao), some with nuts, many with exotic salts.

Each flavor is a proprietary recipe developed by the company in-house. The bars will be offered for sale at John Kelly stores and online, as well as offered as a wholesale item for its extensive list of customers nationwide.

The bars are packaged individually in a highly designed premium box, sealed in gold foil. Each bar is also custom molded with an intricately branded design in the chocolate, marking the bar as undeniably a John Kelly creation. For wholesale customers, the bars will ship 12 to a case, in a self-contained point of purchase box ready to be placed on-shelf.

Apart from packaging and presentation, the bars themselves are in keeping with John Kelly’s driving mission to create the most delicious-tasting chocolate that adheres to the highest quality standards. Each flavor has been carefully balanced with notes that complement each other and the underlying chocolate. And each bar is gluten free, soy free, non-GMO and all natural. The bars also contain fair trade ingredients.

The product line is the result of years of tinkering, and should satisfy pent-up demand. As co-owner John Kelson states, “Many of our customers have been asking us to create a solid chocolate bar line, but we wanted to do it our way and ensure it would be simply the best on the market. That’s what our customers expect, and that’s what we feel we have achieved.”

 

Wholly Guacamole Brand Introduces New 45-Calorie Mini Cups

The makers of Wholly Guacamole® brand have added Avocado Verde 45 cal Minis to their line of products. The new minis pack all the flavor of tomatillos, hand-scooped avocados, jalapeno peppers, and cilantro of the brand’s popular Avocado Verde dip in 2-ounce containers. The Avocado Verde 45 Cal Minis are the seventh flavor in Wholly Guacamole brand’s lineup of fan-favorite mini cups.

“Consumers are continuing to explore the variety of Mexican flavors and recognize the health benefits of avocados, so we asked ‘What’s the next thing they need?’” said Terrill Bacon, Senior Brand Manager of Wholly Guacamole brand. “Our fans love our Avocado Verde dip, so creating a mini cup was the perfect solution to help them continue exploring the culinary landscape at home and on the go.”

The new minis will appear on grocery shelves in the coming months and can be purchased in 4- or 6-pack product sizes. The 4-count suggested retail price is $3.99-$4.99 and the 6-count is $5.29-$5.99, depending on the retailer. Like all Wholly Guacamole products, the Minis are all natural, gluten free, dairy free and kosher certified.

McCormick Enters Agreement to Acquire Stubb’s

McCormick & Company, Incorporated has signed an agreement to acquire 100 percent of the shares of One World Foods, Inc., seller of Stubb’s barbecue sauces, a privately held company located in Austin, Texas.

  • Stubb’s is the leading premium barbecue sauce brand in the U.S.  In addition to sauces, Stubb’s products include marinades, rubs and skillet sauces.  Annual sales of the business are projected to be $30 million in 2015 and are expected to grow at a double-digit rate annually for the next several years.
  • Stubb’s products complement McCormick’s range of grilling items with the addition of authentic, craft barbecue sauces.  McCormick plans to drive sales of the Stubb’s brand through expanded distribution, increased household penetration and innovative flavors.
  • McCormick has agreed to acquire the business for approximately $100 million in cash.
  • Acquisitions are an important avenue of growth for McCormick.  Stubb’s is McCormick’s third acquisition agreement announced in 2015.

Alan Wilson, Chairman & CEO of McCormick stated, “We are pleased to announce this agreement to acquire Stubb’s.  Based in Texas, Stubb’s is an authentic, craft brand with an enthusiastic and loyal consumer base.  Through marketing and innovation, we intend to build this base, increase household penetration and expand retail distribution in the U.S. and internationally.  The Stubb’s products round out the range of grilling products currently marketed by McCormick under the Grill Mates, Lawry’s and McCormick brands.  We look forward to working with the Stubb’s employees to drive increased sales and profit for this business.”

After opening his first Stubb’s Legendary Bar-B-Q restaurant in 1968, C.B. Stubblefield began selling his popular sauces to retail grocers in 1992.  These products feature bold flavors made of high quality ingredients.  McCormick intends to maintain the headquarters of this business in Texas.  With newly expanded distribution and product offerings, annual sales growth exceeded 20 percent in both 2013 and 2014.  Annual sales of the business are projected to reach $30 million in 2015.

The acquisition should be completed by the end of July 2015, subject to regulatory approval.  The purchase price for Stubb’s is approximately $100 million subject to certain closing adjustments.  Due to the estimated impact of transaction, integration and financing costs, McCormick expects no earnings per share impact in 2015 from this acquisition.  However, with plans to achieve strong growth and significant cost synergies McCormick expects incremental EBITDA (earnings before interest, tax, depreciation and amortization) of at least $10 million by 2017.

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