First Take: Premium Licorice

Premium Licorice

The appetite for premium licorice continues to be strong going into 2022, with its generally cleaner ingredients helping it stand apart from more standard licorice options. Category leaders have learned lessons from last year’s supply chain difficulties that have spilled into the new year and continue to juggle the demand for innovation with the need to ensure their retailer partners and the end consumers have the products they want, when they want them.

“Licorice remains a very strong segment and well ahead of the total non-chocolate category,” said Jason Clements, General Manager New Zealand and International for Darrell Lea. “Consumer trends will continue to evolve into snacking products with cleaner labels and that is where licorice continues to win.”

Jadi Anderson, Marketing Director for KLN Family Brands which includes Wiley Wallaby Licorice, explains what sets the premium licorice segment apart. “Premium licorice is softer and chewier than the standard licorice twists that consumers and retailers are familiar with,” she said. “The improved bite allows for better flavor and a more desirable chew. In terms of growth, we consistently see multiple premium licorice brands experiencing double digit growth across multiple channels; in comparison, standard licorice is showing single digit growth, if any.”

Understanding the appeal of premium licorice, Anderson said consumers have gravitated toward both traditional and more trendy flavors. “In 2022, much of our growth in the Wiley Wallaby brand will come through our current flavors — Classic Red and Black continue to be our best sellers, but flavors like Watermelon and Blasted Berry are showing the largest percentage growth overall. We will continue to promote brand awareness through social media and samplings throughout the country to support these items.”

Plus Wiley has something new for 2022. “Our low sugar, gluten-free Very Berry is the newest addition to the Wiley lineup,” she said. “Wiley knows that our consumers are continuing to focus more on their health and the low sugar, gluten-free offering is the perfect treat to satisfy their sweet tooth.”

The flavor innovation is surely a hit with retailers, but as 2021 showed, having a robust yet adjustable supply chain is of utmost importance in avoiding empty shelves and disgruntled customers. “We will continue to offer the same levels of support and fulfillment that our retailers experienced over the last year,” said Anderson. “With a fill rate of plus-99 percent, our retail partners can feel confident that we’ll help keep their shelves full.”

Clements said Darrell Lea is prioritizing its supply production in 2022 as well. “At this stage, getting the basics right is more important than ever,” he said. “While I am sure our retail partners are seeking innovation, they do not want it to come at the expense of out of stocks on other core lines. So for us, ensuring our service levels, promotional plans and overall communication remain best in market must be our core focus.”

That said, “We have in place a strong innovation pipeline and approach to how we market, but our most important goal is to ensure we maintain strong service to our current customer base with our existing SKU portfolio,” Clements said.

Because the supply challenges from 2021 didn’t magically resolve at yearend, “We go into 2022 very much aware that many of these challenges will remain but with certainty that consumers still want treats,” Clements said. “Being able to adapt quickly and move to Plan B, C and D will remain critical to ensuring we can keep product on shelf. Channel mix remains the key challenge and ensuring that we can meet the needs of all our retail partners. For us that means en-

“Premium licorice is softer and chewier than the standard licorice suring focus on fortwists that consumers and retailers are familiar with. The improved bite mat and price and allows for better flavor and a more desirable chew. In terms of growth, we quickly pivoting as consistently see multiple premium licorice brands experiencing double those trends evolve.” digit growth across multiple channels; in comparison, standard licorice is For 2022, that foshowing single digit growth, if any.” cus is putting pre—Jadi Anderson, Marketing Director for KLN Family Brands mium licorice in an entirely different realm than standard licorice. “Often, we compare premium licorice to standard licorice,” said Anderson for Wiley Wallaby. “While that’s not entirely incorrect, the products are different enough that they don’t always need to directly compete. We see premium licorice creating a space all its own, albeit alongside the standard SKUs.” Premium licorice draws in a different kind of consumer, said Clint Christiansen, Red Vines Product Manager for American Licorice Company. “The premium licorice consumer is not the everyday licorice consumer,” he said last year. “The reasons behind the purchase of premium licorice is much different than the purchase for traditional licorice. Premium licorice is often a betterfor-you type of licorice where shoppers are looking for the absence of certain artificial ingredients, sweeteners and GMOs. American Licorice Co. educates consumers through the messaging on packaging and promotes retail partners through shopper marketing tactics to build awareness and drive trial at the retail level. Our Red Vines Made Simple product line offers an alternative for the consumers looking for these types of products.” Red Vines may have been around a while, but they’re far from antiquated, Christiansen said. “Just because licorice has been around for more than 100 years, doesn’t mean it’s old and boring. Every year licorice manufacturers continue to innovate with new and exciting ingredients, flavors, product forms, pack types, etc. to enhance and expand the licorice category,” he said.

Dough

Supply chain disruptions forced dough suppliers to make tough decisions and realign priorities. However category leaders stayed the course and brainstormed alternatives for their ingredients and packaging and remaining a dependable ally for retailers. Facing obstacles that were out of their control required companies to plan ahead and make changes that didn’t negatively impact partners and consumers, such as locking their prices. This year, dough suppliers are experimenting with infusing vegetables into their recipes and drawing in shoppers who seek out organic choices and are eager to readjust their attention towards the innovative and creative side of the business.

For DeIorio’s, the new year calls for, “Ramping back innovation,” said Jim Viti, VP of Sales and Marketing for DeIorio’s. “Over the past several months we’ve had to reallocate our research and development with a focus on supply chain disruption to ensure we had sufficient alternatives for all ingredients and packaging. This hindered opportunities for producing innovation along our product line. We are planning to pivot back to many of the exciting developments in progress before the disruptions.”

“For us we will continue to be prepared in advance,” said Terry Thomsen, Founder of Feel Good Dough. “We are building our supply chain with more than a few suppliers. While we may not be saving on volume discounts we are locking in lower pricing as prices of supplies have gone up. This allows us to remain consistent in all areas of our business. We have not had to raise our prices to our distributors or lower the weight of our product to make up costs. We will continue this strategy through the rest of 2022.”

“This year in particular, we are coming into the new year with a recognition that nothing can be taken for granted and one needs to embrace the unknown,” said Doon Wintz, President of the Run-A-Ton Group, a family of brands, comprised of Wholly Wholesome, Wholly Gluten Free, Blissfully Better and Unique Belgique!

“If 2021, especially the last five months, taught us anything, it is that there are times where, no matter how much you plan, you can’t foresee everything and you need to be nimble in addressing the unexpected hurdles. Not only that, but you have to be mentally prepared for having new hurdles pop up after you’ve cleared the ones you thought were the only ones standing in your way.”

In 2022, dough suppliers are bringing a nutritional component to their dough recipes and making dough inclusive to consumers that prefer plant-based, vegan and organic choices. “We are looking at vegetable inclusions into some of our more popular dough items, single-serve attributes, and solutions that will help alleviate labor challenges at store level,” Viti said.

“Feel Good Dough is tackling the dough industry by expanding into more organic food service distributors,” Thomsen said. “We are seeing exciting things happen in food service. It has taken years for food service to catch up with the good-for-you foods. This is very exciting for us to see. Not just plant-based and vegan at restaurants but many new franchises are opening with a whole menu of organic, plantbased offerings.”

“We are excited about pursuing more components that our consumers can use to build a great meal or a dessert,” Wintz said. “Next up? An allergy-friendly cake solution.”

In the coming year, dough manufacturers are reflecting on how to improve their production process and further streamline operations to continue supporting partners who are counting on them. Beyond that, some companies are preparing to explore the plant-based foods sector to see how they can contribute to this ever-growing space that is gaining traction. “Our focus is on continuous improvement of processes of our current products to provide better solutions for the end users,” Viti said. “These include both supply chain fulfillment and labor innovations for our retail partners.”

“I see Feel Good Dough as a player in the plant-based category,” Thomsen said. “We have developed a dough that has clean grains and high protein. Specifically, this adds more nutrients and value to a plant-based consumer. We will be cross marketing with other plant-based companies to gain more customer loyalty within the category.”

“We foresee plant-based items and allergen-friendly items continuing to be an segment of growth and interest for consumers,” Wintz said. “Interest in the environment is driving the plant-based trend and people are increasingly coming to the realization that food allergies are more and more a part of their family’s lives and finding good tasting and clean label foods that the entire family can enjoy is a priority.”

Suppliers would like for retailers to notice their efforts to reconcile two seemingly polar attributes: foods that are comforting and indulgent and foods that lend themselves to a healthy diet. “There is a dichotomy that has been in place between comfort food indulgences and a balanced, healthy lifestyle,” Viti said. “These categories (product attributes) are quickly fusing, creat(ing) a host of product innovation(s) that the retailer must get in front of for the new generation of savvy consumers. The back panel is becoming as important (as) the front panel on product packaging. This is important for the retailer to know, to maintain or gain the consumers trust in their brand.”

“Retailers see the need for dough now as a grab-and-go item,” Thomsen said. “Where a person can come in and get a dough on Friday night and make a pizza when they get home. What retailers need to know is that dough brings in an additional dollar per purchase, on an average of $12 per ball. It’s a win-win. In addition, offering an organic dough next to the traditional dough brings even more customers. Customers appreciate that the stores realize the need for better-for-you dough.”

“Consumers are excited about being able to find smart short cuts to cooking for themselves,” Wintz said. “Using clean label and great tasting dough is one of the best solutions to minimizing the muss and fuss of meal preparation, yet allowing the consumer to say ‘I made this myself’.”

Sweet Potatoes

The residual impacts of the pandemic have reverberated through the sweet potatoes category but leaders are confident sweet potato growers will bounce back. The added emphasis on one’s health is leading people towards sweet potatoes, a source chock-full of good for you attributes. In the last two years consumers prepared their own meals and sweet potatoes became an ingredient on heavy rotation throughout meal planning.

“Currently, I would say the biggest challenge of our industry would be the overall lingering impacts of Covid-19, including the loss of food service sales (hotels, restaurants, convention centers—even schools to some extent), and bottlenecks in the supply chain,” said North Carolina Sweet Potato Commission Executive Director Michelle Grainger. “While we do not have a crystal ball, further challenges are yet to be determined. What we do know is that everyone needs to eat and since Covid, consumers are more interested in where their food comes from more than ever, in addition to making healthier choices; and that interest can only help serve our producers. Additionally, there is always the challenge of consistent labor, both in the fields and packing houses.”

During the last two years, “Category effects were mostly felt at the food service level with lack of sales, however, the good news is that at retail, we have seen increases,” Grainger said. “Not enough to compensate for the loss of food service, but it appears that with more and more Americans dining at home, health and experimentation of food preparation has been the focus and with the healthy mindset, and the versatility of sweetpotatoes, our superfood has become top of mind and on the plate for many.”

At a time when consumers and growers alike felt disconnected, bodies like the North Carolina Sweet Potato Commission have continued to advocate for and connect those who are involved in the sweet potato industry. “We at the North Carolina SweetPotato Commission advocate for our members, who represent all those who produce, pack, and ship sweetpotatoes in NC,” Grainger said. “Our advocacy is top of mind in all we do with an overall goal of increasing the consumption and sales of sweetpotatoes. This is done through various marketing programs as well as consumer education.”

The category is home to unique opportunities for producers, packers and shippers. “Consumer awareness of not only the health benefits of sweetpotatoes, but the versatility is always an opportunity for us to better improve upon,” Grainger said. “The sheer fact that NC Sweetpotatoes are available 12 months out of the year and not just the traditional fall/winter holiday months is often a surprise to many—not to mention how one may even consider enjoying sweetpotatoes in the warmer months! Another area of consumer education pertains to the incredible uses of sweetpotatoes when baking—from sweetpotato flour to substitutions for sweeteners and all alternatives in between.”

The new year represents a fresh start and the opportunity for sweet potato growers to find a rhythm in a category they characterize as ever changing. “Things in the sweetpotato industry are constantly evolving,” said Jeff Thomas, Director of Marketing for Scott Farms. “We expect to see much of the same in 2022 as in 2021, which is change. Consumers are continuing to be more savvy in the way they shop and the products they choose. We expect to see continued growth in this area with online and delivery services playing a big role in their everyday lives.”

“While 2021 brought us a great crop of NC sweetpotatoes, we are looking forward to the growth 2022 provides!” said Rebecca Scott, Grower Accounting and Marketing Director for Nash Produce. “Our sweetpotato harvest went very well with no extreme weather conditions than typically can impact volume and quality. The 2021 crop is safely ‘tucked in’ at our controlled-temperature storage facilities and will be shipped out to customers and consumers both internationally and domestically over the next year. Nash Produce has been fortunate to work with some amazing vendors this past year and look forward to continuing to grow those relationships in the upcoming year and beyond!”

In 2022, Scott Farms will continue listening to consumers’ demands and observe how innovation launched during 2021 is received by retailers and shoppers. “We are continuing to grow as a company and in the offerings we have in the fresh sweetpotato category,” Thomas said. “In 2021 we launched a fivepound bag and saw growth in the other added value areas like the steam in bag. However, not revolutionary in nature, they are geared to what shoppers want. We intend to continue to listen to our customers and their customers to best fit what the market wants and needs.”

“In the coming year will see all the things of the past couple of years being normalized,” Thomas said. “Online and delivery is normal for a big portion of consumers. The grocery and food service industries have really hit the mark with this and I believe it will continue to grow. Online shopping is no longer the fringe. It is mainstream and as the option for delivery moves more into the rural areas, it will continue to grow. We will look to reach as many of those consumers as possible by offering options for new and different ways to prepare and enjoy sweetpotatoes.”

“As we approach the new year, many consumers find themselves ready to clean up their eating habits and lose a few post-holiday pounds that may have been picked up from the previous year,” Scott said. “Sweetpotatoes are an integral part of many diets, both old and new, as an excellent source of filling nutrients.”

Sweet potato growers are informing retailers that sweet potatoes are no longer limited to a holiday staple. Instead, the category is an ingredient staple that is relevant and sought after year-round. “Sweet potatoes are an everyday item now,” Thomas said. “Once thought of a Thanksgiving or Easter item, they have become a staple item for many consumers. Speaking with some people last week, I asked a similar question in terms of how has the at home meal changed in the last 18 months.”

Cheese Crisps

Whether it’s a quick, easy-tograb snack or a topper for a delicious salad, the cheese crisps category has taken off for its tasty, satisfying crunch that is a perfect addition to many meals. Leaders within the category have remained steadfast in listening to consumers’ demands for better-for-you snacking options while not sacrificing flavor profiles.

According to Joanne Bolanda with Joyfull Bakery, the company has new product launches for the new year.

“Following our production facility fire in October 2020, and one year in a temporary facility, we are thrilled to be in our fully rebuilt facility, with SQF and GFCO certifications, and at full product capacity,” said Bolanda said. “We are kicking off the year launching a new reduced-plastic clamshell on a shelf in January. In Q2, we are launching Joyfull Bakery Jalapeno Parmesan Crisps with all the flavors of real jalapeno pepper and just a bit of a spicy kick.”

“The cheese crisps category has grown significantly in recent years, and we expect it to continue to do so,” said Bolanda. “We hope to drive that growth with crisps that are more artisanal and handcrafted in their making. We slow bake our products in ovens, not microwaves to create crispy delicate cheese crisps that are of the highest quality and cleanest ingredient line.”

That’s How We Roll has been a leader in better-for-you snacking, giving the company a leg up in the category to create a ‘guilt-free’ cheese crisp.

“As an emerging category, Cheese Crisps still has a relatively low percentage of households buying, particularly in comparison to other snacking categories as consumers become increasingly aware and willing to try this new form of snacking innovation,” said Tracy Garbowski with That’s How We Roll. “So, as we move forward into 2022, we are keenly focused on driving awareness and trial for ParmCrisps, and as such, the overall Cheese Crisps category among US households. As we drive against these brand objectives, we are excited to launch our first-ever national media plan with our new ‘Unsinfully Good’ advertising campaign in January 2022. Unlike traditional carb-filled snacks that leave you feeling guilty, ParmCrisps are a delicious, and healthier snack choice that will leave you feeling good about yourself.”

“We are constantly planning and anticipating ‘what’s next’ for cheese crisps through monitoring of consumer and customer trends, which then translate into future product innovation, unique program activations, packaging design, in order to uniquely deliver against consumer needs,” Garbowski said.

Lesley Stowe Fine Foods has a variety of cheese crisp flavor and has remained committed to improving its products and ingredient lists every year.

“The new year means new opportunities,” said Steve Lorenz with Lesley Stowe Fine Foods. “Consumers continue to find healthier ways of eating or snacking. At Lesley Stowe Fine Foods, we are always looking to bring more to our consumers by carrying a robust portfolio of non-GMO verified Raincoast Crisps while continuing to innovate with new ingredients and flavors that are on-trend for consumers. Our current line-up includes our core crisps with the addition of new wild blueberry and almond and made with super seeds like chia and pumpkin, as well as our wheat-free oat crisps and our delicious cheese crisps. In 2022, we are working on new additions to the product line that can continue to incorporate new flavors or new formats that consumers are looking for to improve their eating and snacking habits.”

“We launched with two wonderful Raincoast Cheese Crisps varieties: aged cheddar and harissa and parmesan and chive,” said Lorenz. “These continue to be listed in only a handful of select retailers. As a leader in premium crispbread crackers in the deli, we want to provide more of what consumers want,

and consumers are saying the stronger the cheese flavor, the better. We are currently discussing a new cheese variety for the future that could stand out a bit from the first two. We also continue to find ways, wheth“For the Whisps team, the new year always ushers in an er through recipe and incredibly energizing quarter. The new year is a key season for Whisps, pairing ideas to drive which are high protein, low carb and beloved by many keto and low carb sales growth each year. consumers.” — Katie Nahoum, Whisps We are committed to finding opportunities for improvements to flavors or ingredients. Currently, the ingredients in all of our products, except the cheese crisps, are non-GMO verified and all crisps are Kosher dairy.” Katie Nahoum with Whisps mentioned the company’s ready to tackle the new year with new products and flavors. “For the Whisps team, the new year always ushers in an incredibly energizing quarter,” said Nahoum. “The new year is a key season for Whisps, which are high protein, low carb and beloved by many keto and low carb consumers. To add to the excitement, this year we are rolling out two innovations: Whisps Cheese crumbs, a cheesy alternative to breadcrumbs, and Whisps Cheese Crisps and Nuts, a savory snack mix blending artisanal cheese crisps with satiating nuts.” “While cheese crisps is a relatively young category, it is reaching the point where we can expect to start seeing more breakthrough innovations beyond pack sizes and flavors,” Nahoum said. “Consumer listening is very important to us and learning how our community uses Whisps has informed our current innovations. We often heard how consumers would snack on a few nuts alongside their crisps, which inspired Cheese Crisps and Nuts - a perfectly blended and spiced protein mix for easy snacking or entertaining. Whisps Cheese Crumbs is a never-seen-before product that you can use as a 1-1 swap for breadcrumbs to bake, mix or sprinkle in your favorite recipes. What started as a category celebrating clean labels and single ingredients has the opportunity to expand into creative innovations and new ways to incorporate Whisps into various dishes and recipes.”

Maple Syrup

Through awareness and education, the maple syrup category has surged in consumer demand. Suppliers have done their due diligence to inform the market about the colors and consistency of this versatile ingredient and sparked culinary inspiration when suppliers influenced households to drizzle maple syrup on vegetables and meats.

“Last year we saw maple syrup became a staple on the breakfast table as families and individuals stayed home and had time to sit down for more than just one meal together each day,” Emma Marvin with Butternut Mountain Farm said in a 2021 interview with Grocery Insight. “Now that offices and schools are re-opening, and people are returning to normalcy, we’re working on initiatives that keep maple syrup as part of everyone’s day. We’re continuing to develop original recipes as well as educating consumers on how maple syrup can be substituted in baking and cooking recipes, so maple syrup continues to be consumed beyond breakfast and on-the-go.”

Suppliers felt the impact of market fluctuation too. “Price changes and changes in delivery times—probably not much different than other industries, everything is going up in cost and to top it off, it was a smaller than normal maple syrup crop this year,” Steven Anderson with Anderson’s Maple Syrup said in a 2021 Grocery Insight interview.

One fundamental point regarding the maple syrup category that more consumers should know about is, “Maple syrup is a pure ingredient,” Marvin said. “The only thing that comes between our trees and your table is a lot of effort and an evaporator. With thoughtful and careful year-round stewardship of our woodlands, and the woodlands of our friends and neighbors in Vermont, we are able to bring pure maple syrup to shelves every year. Sugar makers work year-round to make sure the small timeframe of sugaring season is successful. There’s a lot of thought and time that goes into producing pure maple syrup—including the cooperation of the weather!”

Something which Anderson would prefer more consumers were made aware of is their process. “Anderson’s Maple Syrup takes extra steps with our quality, we re-boil every batch of syrup we bottle,” Anderson said. “Most do not because it takes time and energy to do this, but we find it give us a better flavor and more consistent quality. Most just bring their syrup to the minimum 180 to 190 degrees, but it is the extra boiling we do that really helps the flavor and consistency.”

“As an industry we find that many new consumers don’t understand that they need to ‘refrigerate after opening.’ these are consumers that come from the imitation syrup world and are just used to the product being so pumped full of preservative that refrigeration is not needed,” he continued. “That is not the case with pure maple syrup. It is just like any other canned product; it must be refrigerated after opening. Even though we have changed our labels to reflect this statement more vividly we still get consumers complaining they did not see it. Education on this point would go a long way I believe.”

Outside of traditional marketing initiatives, companies in the maple syrup market are exploring alternative channels for educational outreach and to stay connected to their consumers. “Our marketing department is working on building and sustaining partnerships this year,” Marvin said. “Maple syrup pairs well with more than just pancakes, and by partnering with various companies in the food and beverage space, we’re showcasing its dimensional versatility. We’re beginning the process of collaborative in-store promotion with other brands as well as engaging digital content. We’re keeping up with social media trends that entertain and education on platforms like Instagram, TikTok, Pinterest and Facebook.”

“We are launching a package that focuses on how environmentally friendly pure maple syrup is and how good it is for the environment and earth,” Anderson said. “Our trees produce way more good things into the environment that processes for making and packaging syrup introduce with emissions.”

Anderson’s Maple Syrup’s offering is building momentum to the maple syrup category through “Innovations such as the above-mentioned new packaging as well as smaller single serve options,” Anderson said.

Around the same time last year, maple syrup suppliers welcomed the fresh start that comes with the beginning of a new year. Despite experiencing hardships, these companies had a positive mindset and forward-looking approach to the new year. “Going into a new year we’re always excited to see what the new crop will hold,” Marvin told Grocery Insight in 2021. “Maple season is in the spring, so we eagerly are awaiting its start. Coming out of 2020 we’ve seen a resurgence of the traditional family breakfast. We are hopeful that 2021 will bring a return to more normalcy, but we’re curious how quickly we’ll all go back to our old breakfast habits. The routine and ritual that has been re-established because of the pandemic will hopefully be with us for some time.”

“There’s been really strong sales during Covid-19 and the challenge moving forward is to keep the maple syrup category and our products front of mind so that those strong sales continue. As we hopefully emerge from this Covid-19, people have hopefully learned something about maple syrup and how they can use them in more ways at home than they have been in the past,” Anderson told Grocery Insight in 2021. “That was a push already prior to this but Covid-19 is going to push our segment a little bit over the top in that respect and help us.”

While experiencing hardships, these companies have dwelled on the lesson that challenges are teaching them, rather than fixate on circumstances and events that are out of their control. “2020 has taught us a lot about resiliency and the systems that support rapid growth and change,” Marvin said. “We’re fortunate to have a phenomenal team here at Butternut Mountain Farm. They’ve been able to rise to the occasion and meet the needs of our customers. We’ve learned a lot about our abilities and the depth we have on our team. We know that we’re a resilient organization and we know a bit more about where our resiliency comes from.”