April 2024 Grocery Insight

April 2024

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Special Report

Sweets and Snacks Expo Preview

Key Takeaways

• Exhibitors aim to showcase fan favorites, new products and strengthen partnerships through problem-solving and innovation discussions.

• Brands plan to unveil products, rebranding efforts and innovative collaborations.

Registration for this year’s Sweets & Snacks Expo began in late January and remains ongoing as organizers continue to build and fine-tune a program that is expected to draw more than 16,000 people working in and around the candy and snacking industries to Indianapolis, IN this May 14 through May 16. The event, sponsored by the National Confectioners Association (NCA), is expected to showcase the opportunities and resources of its host city all the while allowing participating companies to convene with thought leaders and industry experts to discover insights, build networks and unveil their latest innovations.

Kenny’s Candy & Confection is stocking its booth with fan favorites like Wiley Wallaby Classic Red and Sweet Chaos Peanut Butter Cup popcorn, said Jadi Anderson, Marketing Director for KLN Family Brands. Along with some new products, the candy maker this year is also focused on strengthening its partnerships. “Sometimes that means we put on our problem-solving hats to address specific issues our retailers are facing and other times it means developing new products that help to drive foot traffic and growth into their stores. This year, we’re looking to meet with new and existing partners to discuss how we can continue to help them achieve their goals.”

Dewey’s Bakery will be among the companies with something new to showcase. “Our main goal is to connect with key customers to introduce them our new product, Dewzies!” said Brand Director Kayla Hott. “Dewzies start with two of our iconic thin and crispy, flavorful cookies and are then layered with rich chocolate to create a delicious, crispy sandwich cookie with outstanding taste. We’re most excited to see the reactions of show-goers when they taste our new Dewzies. It’s always a blast sharing our special treats with

people for the first time.”

Las Olas has an exciting transformation to share this year, said Las Olas Confections and Snacks CEO Greg Power. “We’re bringing two of our award-winning brands, Anastasia and Coconut Island, together under one new, dynamic rebrand. It’s called Oh!asis. The new branding and packaging were built for retail success. First off, we’re keeping our proven, top-selling recipes. The packaging has a refreshed, energized look that retains the signature equity of our yellow boxes. We’re putting a strong sales-driven effort behind snack sized Coconut Patties and Kettle Krunch. The goal is to get people as excited about Oh!asis as we are.”

That’s what Nature’s Bakery is aiming for as well, with plans to sample its plant-based product lines including its Fig Bars and new Salted Caramel Brownies. “Our primary goal is to introduce attendees to our portfolio of consumer-loved snack bars,” said CMO Vilma Livas. “We’ll do this by inviting them to enjoy samples and discover our newest innovations. Beyond this, Sweets & Snacks is a fantastic opportunity for our sales team to meet with retail partners in person while making new contacts.”

On the savory side of snacks, Van Holten’s has an equally big interest in showcasing its latest pickle innovations and resources. “We’ll be prominently featuring our collaboration with Rick & Morty and putting the Pickle Rick in the new item form,” explained VP of Sales and Marketing Eric Girard. “We also hope to give key buyers and decision makers a preview of the licensing and innovation we have coming in 2025 and beyond.”

Venus Wafers will be using the occasion to introduce its full line of its new South Shore Puffs, said VP of Sales and Marketing Jim Anderko. “Baked with quinoa and topped [with] our customize flavorings—Barbecue, Chili Lime,

and vegan Nacho Cheese. [It is] a simple, flavorful, non-GMO, plant-based snack that embodies all the elements of our little Boston corner of the world for families, friends and snackers alike. The ultimate crossover of healthy and flavorful, this better-for-you puff snack with real finger-licking ability gives everyone a little taste of the south shore.”

Rudolph Foods, which encompasses assorted pork rinds brands including Southern Recipe Small Batch, also aims to make a splash in savory collagen-rich offerings. “[We want to] generate buzz around our Pop at Home Pellet Bag and Krutones. We want to share these great items with retailers,” said Director of Sales German Reyes. “Flavors are going to be a big topic of discussion among show attendees. Bold and fun flavors are still popular.”

Wilde Brands is bringing the protein snacks, including samples of its newest Protein Chips flavor Spicy Queso, which launched last fall, according to President Mike Senn.

“Protein, flavor and real/premium ingredients are all top-of-mind for consumers—WILDE delivers against all three at once. We’re the only craveable salty snack delivering protein from simple, nutrient-dense ingredients like chicken breast, egg whites and bone broth. Knowing that we have created something that meets key consumer and retailer needs—and that they love so much—is why we’re so excited to do what we do,” he said.

With just about a month left, anticipation continues to build for this year’s Sweets & Snacks Expo’s return to Indianapolis. Exhibitors are putting the finishing touches on their demonstrations for why they will be strong and reliable partners for retailers, with attention-grabbing brand collaborations and data-driven consumer trends driving product innovation.

Anastasia® and Coconut Island® are now Oh!asis, newly branded with new packaging for retail success. The same delicious everyday tropical indulgences shoppers seek are now delivered with greater attention-getting and sales-driven support from Las Olas Confections and Snacks.

Thought Leadership In

Onions

Key Takeaways

• Weather conditions, such as El Niño, have had a significant impact on onion crops globally, leading to shortages and tight market conditions and innovation.

• Suppliers and retailers are educating consumers about how different onion varieties can enhance specific recipes based on their flavor profiles and textures.

Homecooks are well aware that in the right amounts, onions can elevate the flavor appeal of any entrée, dip or salsa, taking a recipe from forgettable and flavorless to hearty and savory. Recently, onion suppliers and retailers have taught consumers that each unique onion variety and form can elevate specific recipes by delivering a sweet or savory punch of flavor or appease even the pickiest palates with the right texture, depending on the home chef’s skills at caramelizing, sautéing or grilling. And these are just a few options to prepare this versatile ingredient.

“Thanks to ideal weather conditions, the Vidalia crop looks very promising at this point, and we are eagerly looking forward to the 2024 season,” said John Shuman of Shuman Farms. “On the heels of Shuman Farms’ acquisition of Generation Farms, we have 2,800 acres of Vidalias in the ground and have solidified ourselves as one of the largest grower/shippers in the industry. This expansion not only enhances our capacity but also underscores our commitment to meeting the rising demand for sweet onions. We are well positioned to deliver a high level of service to meet our customers’ needs.”

“First quarter 2024 was a mix of stressful and successful,” said Teri Gibson for Peri & Sons Farms. “Sales were strong, exceeding projections. Nationally, adverse weather had an impact on crops, including our own, causing tight market conditions and making it difficult to service all customers the way we’d like. But we’re feeling good about our early spring onions, all varieties, which are getting close to harvest at our California farm location.”

She continued, “Peri & Sons Farms will continue growing at a studied and sustainable pace as we always have. We continuously generate and review a

lot of data to inform our decision-making process. We don’t sway with every year’s market predictions. We grow to meet customer demand and we focus on customers who want a consistent supply of top-quality products and appreciate our company’s dedication to certifiable food safety and sustainability, to USA-grown product, fair labor and good old-fashion honesty and ethics.”

“There was an overall shortage of onions, El Niño weather in Peru and Mexico was a primary factor. The most important thing to us is that our customers have what they need,” said Jeff Rhoden for Bland Farms.

“We have our boots on the ground in Mexico and Peru, so we do everything we can to ensure our customers have the product they need. We were very fortunate to keep all our customers supplied with quality Premium Sweet Onions during a challenging time. We are coming off a very high- quality Mexican Sweet Onion program and are about to start the Vidalia Sweet Onion program which continues to grow every year,” said Bland Farms' Sloan Lott.

“We are blessed to move the company forward each year incrementally. We attribute that to our focus on customer service and supporting our retailers with promotional campaigns that help them boost sales. In addition, we educate consumers about the nutritional quality of sweet onions as well as share innovative recipes on our website and social media platforms,” added Rhoden.

One element of being a strategic and enduring leader within the onion space is to form alliances with like-minded companies that can leverage a company’s goals and industry footprint. Shuman Farms demonstrated this with the acquisition of Generation Farms, a leading grower of Vidalia onions along with watermelons, aptly located

in Vidalia, GA. The acquisition means Shuman Farms has assumed full operational control over Generation’s land and facilities, and the additional assets have provided Shuman Farms with 30 percent more acreage to its Vidalia onion program. “We are excited to share that Shuman Farms, in partnership with a leading investor in the agriculture sector, has successfully completed the acquisition of Generation Farms,” Shuman said. “Thanks to the success of Shuman’s Vidalia and Peruvian sweet onion programs, they have been able to take on this project—the largest to date for the organization. The additional assets have allowed us to add 30 percent more acreage to our Vidalia onion program. With more packing capability in the new site, plus capital improvements to our existing facilities, we have increased our storage capacity by nearly 25 percent allowing us to continue distributing Vidalia onions through Labor Day. On top of expanding our operations, Shuman Farms is focusing our efforts this season on the importance of edutainment—educating consumers and buyers on Vidalia onions with entertaining and engaging content.”

Gibson said Peri & Sons Farms’ leadership team possesses honesty, ethics, ingenuity along with “good old fashioned hard work,” and this combination of attributes has been instrumental in the company’s ongoing success. “These attributes come from the top down,” Gibson explained. “These qualitie"

Despite extreme global weather conditions affecting crops, suppliers remain devoted to keeping produce bins stocked fresh and flavorful onions. At the store level, retailers are educating consumers about the variety of flavors and textures that onions bring to an otherwise bland dish, thus promoting category exploration.

At Shuman Farms, integrity and humility shape our mission to serve, sustain, innovate & give back.

Thought Leadership In

Tomatoes

Key Takeaways

• Producers are continuously innovating and diversifying their product offerings to meet consumer demands for unique and high-quality options.

• Producers are developing convenient packaging options, such as pre-packaged snacking tomatoes, to meet the needs of busy consumers seeking on-the-go options.

Leading tomato producers dedicate their time to growing the best quality tomatoes for consumers while educating them on several health benefits tomatoes provide. These advantages are particularly noticeable when horticultural methods that affect fruit quality are applied. Along with the many benefits of this fruit, tomatoes have diverse flavor profiles, textures and sizes. The tomato category has expanded into several other areas of the grocery industry such as snacking, as consumers continue to look at healthier options for easy and quick meals.

The first quarter of 2024 has been about growth for NatureSweet. “We celebrated the opening of another greenhouse production facility in Bonita, AZ, where we will continue to grow delicious produce, such as D’Vines, cherry tomatoes that are sold on the vine for maximum freshness. They are about as close as you can get to homegrown tomatoes! D’Vines are flavorful, nutritious and are incredible; served fresh as a snack, complementing a salad, side dish or cooked,” said Jennifer Halpin, Sr. Corporate External Communications Manager with NatureSweet. “We also moved the tomato category forward with the debut of our award-winning tomato, Adora, an heirloom tomato like no other. Its sweet and subtle notes of savory and smokiness are unique and elevate dishes. Its shape is also exquisite with beautiful green and brown grooves that indicate the optimum ripening point. Adora is rich in antioxidants, vitamins A and C, and has a high-water content so it is hydrating and refreshing. It is also rich in fructose for a gradual release of energy in the body.”

She added, “Another highlight of Q1 is the expansion of our Constellation brand. Consumers recognize Constellation as a blended mix of our red, yel-

low and orange cherry tomatoes. We expanded the Constellation name to another category, seedless mini sweet peppers, which will truly revolutionize the category. Not only are they light-tasting, crunchy and delicious, but our new Constellation medley of seedless mini sweet peppers has been a big hit because there is no mess to clean! Thanks to strong demand from retailers, we’ll be making them available in more stores this year.”

This season, Windset Farms expanded its tomato offerings by introducing Yum Yums Cherry Tomatoes. “These tomatoes, with their super sweet, high brix content, provide a burst of candy flavor in every bite. By continuously innovating and diversifying our tomato products, we're not only meeting consumer demands for unique and high-quality options but also driving incremental growth within the category,” said Randi Church, Marketing Manager with Windset Farms.

“The beginning of 2024 has started off fantastic for Pure Flavor in a few different manners,” said Matt Mastronardi, evp of Pure Flavor. “With our purchase of the MightVine greenhouse located in Illinois in late 2023, we began our first harvest as owners in January from this strategically located greenhouse in the Midwest. With MightVine being a well-recognized brand for several years now, it was not surprise to us the tremendous support and demand we immediately saw in January as the crop began production, and we look forward to the success and growth that this greenhouse will bring to Pure Flavors portfolio of tomatoes. 2024 also marked another year that we have been able to bring a new award-winning tomato to our customers across North America, and this time with our OMG snacking tomatoes. The color, crunch and taste is

something that we find hard to match in the industry currently, and in our opinion, the reason why OMG was awarded the Superior Taste award from ITI in Brussels. As a company, we continued to focus on new taste profiles that we can add to our tomato lineup as well as increasing our local tomato presence in the US marketplace.”

Consumers looking for healthier food options have increased awareness of tomatoes as a healthy snacking solution. “The emphasis on healthier options has underscored the importance of merchandising and product transparency,” said Church. “Consumers are not only interested in tomato flavor and cooking applications but also in sustainable growing practices. Windset Farms' partnership with the Equitable Food Initiative (EFI) exemplifies our dedication to meeting high standards of work safety, fair wages and sustainable practices. By aligning with these values, we're able to strengthen consumer trust and loyalty while driving sales growth in the betterfor-you segment of the category.”

NatureSweet is attuned to consumers choosing healthy snacking, but also craving convenience. “Our Cherubs To Go product is a great example of how we took a time-consuming task like cleaning produce, found the perfect packaging and made it convenient for consumers. A handful of our deliciously sweet snacking tomatoes are washed and placed into palm-sized containers that fit easily into a lunchbox, gym bag or backpack,” said Halpin.

As healthier snacking continues to be a focal point for consumers, leading tomato producers are promoting on the go snacking solutions that tote delicious tomato variations. The diverse product offerings and high-quality products continue to be an integral part of these companies’ successes.

Agricultural Workers in North America Transforming the Lives of

Thought Leadership In

Sweet Potatoes

Key Takeaways

• Suppliers are implementing new technologies, such as camera systems for grading, to improve product quality and sizing.

• Initiatives and partnerships with nutrition and wellness organizations help raise awareness of the benefits of sweet potatoes and showcase their versatility in everyday cooking.

Popular for its density of nutrients, versatility and sweet yet mild taste, sweet potatoes continue to branch out from its box of being only a holiday side dish. Sweet potato farmers educate consumers on their health benefits of and the various ways to enjoy the vegetable as the main course, an addition to a salad or part of a roasted vegetable medley. As consumers have continued to become innovators of their own and are cooking more in-house, sweet potatoes have also made great additions to things like pancakes or replacements for potato chips or fries.

Nash Produce has put leadership practices and efforts into place to help the company provide a 365-day yield of sweet potato crops to its retail partners and consumers. The company has been able to expand its production and create quality vegetables that consumers can enjoy any time of the year.

Looking at the beginning of 2024, the company mentioned that Q1 has been productive and gave praise to retailers. “Q1 has gone well so far,” said Thomas Joyner, President of Nash Produce. “We've got a few days remaining in it, but from all sides, volume movement is up, which tells us that the retailers are doing a really good job of marketing sweet potatoes and helping us move them. Commercially, we're trying to put good quality sweet potatoes in the retailers. From an innovation and incremental growth standpoint, we've added cameras to our grading system that hopefully will enable us to do a little bit better job sizing. Ultimately, we want to get what we are optically sorting, but we're not quite there yet. The camera system should allow us to do a better job of sizing and sending better quality products to the retailers.”

Nash Produce realizes that consumers are looking for healthier meal solutions, and this motivation has pushed

the category forward. “I believe that's one of the reasons that the volume is up: the movement is up,” said Joyner. “We are also affiliated with the North Carolina Sweet Potato Commission, whose program is to increase consumption and promote the value of sweet potatoes and promote that they're good for you. I believe that they have really stepped it up a notch. They've hired some people and some consultants to help them. I believe they're doing a really good job of it, and we are trying to coattail on that as much as possible, and that's what we'll continue to do.”

Key player, Bako Sweet, a sweet potato producer based in California since 1944, has been a main factor in educating consumers about the many benefits sweet potatoes provide. In February 2024, Bako Sweet announced it was celebrating National Sweet Potato Month and National Heart Month through the launch of several initiatives. These initiatives include its partnership with Camelback Nutrition & Wellness to help raise awareness of the various ways consumers can incorporate sweet potatoes into their everyday lives. "It is really important to us that our partners have a way to engage shoppers throughout the year to showcase the versatility and everyday use of sweet potatoes," said Susan Noritake, Director of Sales at Bako Sweet. “We’re kicking off with our heart-healthy themed shippers and will continue to offer display bins for Easter, summer grilling, back to school and holidays.”

As a third-generation family operated farm, Vick Family Farms has become another key player in the category that has been a driving force of education and production for sweet potatoes overall. The farm started out with 25 acres and was founded by Jerome and Diane Vick in 1975; it now has more than 9,000 acres. According to the company, sweet

potatoes was ranked the No. 1 vegetable in North Carolina, and this award has been given due to its high nutritional content. The company promotes the North Carolina Sweet Potatoes Commission, which supplies ample resources and education surrounding the crop.

Scott Farms boasts the benefits of sweet potatoes and their versatility. The vegetable has come a significantly long way from being a well-known sweet and tasty side dish to now becoming considered one of the most nourishing vegetables one can consume. “Sweet potatoes: it’s one of the healthiest vegetables that you can eat, it’s very nutritionally dense and that is no longer a secret,” said Jeff Thomas, Director of Marketing with Scott Farms. “Sweet potatoes continue to grow in consumption and in use too; it’s no longer a holiday type item because you can go into any retailer or restaurant throughout the year and find some dish that can be made with sweet potatoes. As far as the trend with those, you are still seeing many things being done with them, especially on the retailer side from your fresh cut categories, to value-added products, the preparation of them and being incorporated in with other items. So, it is no longer a stand-alone side dish or dessert, it is being incorporated into being a complementary item into many proteins such as pork, chicken and really anything you would like to pair it with. So, that is one of the things we are trying to do: encourage the usage of sweet potatoes as complementary items. A sweet potato can be very flavorful, and its name 'sweet' is just that—it’s a sweet potato.”

Sweet potatoes have excellent health benefits and nutrients, coupled with an appealing taste and texture that can be easily added to dishes and meals. Producers continue to educate consumers on the value these vegetables have through initiatives and programs.

Thought Leadership In

Fitness Beverages

Key Takeaways

• Strategic alliances, such as the partnership between CELSIUS and PepsiCo, are instrumental in expanding market presence and increasing sales.

• By upholding stringent standards and offering products with tangible benefits, these companies aim to build consumer trust and loyalty while driving consistent growth in the category.

The advice to drink eight glasses of water a day ensures people stay hydrated and are drinking fewer soft drinks or flavored coffees. However, in recent years, the well-meaning adage is becoming trite, the punchline of sarcastic internet memes and for some consumers, simply unrealistic. Companies leading and influencing the fitness beverages category understand their consumers. Regardless of if the person is dedicated to clean eating and a workout regime or someone who spends most of their time sitting behind a desk or in front of their TV, fitness beverages deliver with refreshing flavors and nutrients in addition to functional benefits around enhanced focus and energy. Furthermore, fitness beverages incentivize consumers to hydrate with fizzy or flat options, depending on one’s preference, and appealing flavors and benefits.

At CELSIUS, working in tandem across departments has been the driving force behind the company’s strong performance in Q1. Chief Commercial Officer Tony Guilfoyle attributes strong alliances within the company and with partnering brands as the impetus pushing brand awareness and the fitness beverages category forward. “We executed our plan; we worked collaboratively between marketing and sales and our executive management to really figure out how we are going to go to market from a commercial standpoint,” Guilfoyle said. “We executed the plan with our partner, PepsiCo, very well. If you look at the results, our inventory on display, our number of displays were all 4 to 5 times more than what they were in the beginning of the year; we’re talking about being on par with Red Bull and Monster [Energy] on those metrics.”

“Additionally, we’re catching the customer at that point of purchase through our incredible inventory on display numbers,” he continued. “Right now,

we’re No. 3 in grocery with the current share of the last 12 weeks of 15.12. A big part of that in our success in Q4 and everything all last year was our variety packs; they fueled so much of our growth. We’re seeing consumers really look for that variety and it was a big win for us.”

In the coming months, CELSIUS is rolling out a fizz-free blue raspberry lemonade. “It tastes refreshing and has a really nice flavor profile,” Guilfoyle said. “You can also look forward to a raspberry peach in our Core line, a really nice flavor profile. The team is doing an incredible job innovating, really stepping it up and making my job a lot easier in front of customers.”

“Q1 has been great for LIFEAID in attaining profitable growth,” said President and Co-Founder Aaron Hinde. “I emphasize the word ‘profitable’ because there have been many companies in the fitness space in CPG and beyond that have not been able to turn the corner on profitability. With the appetite for funding unprofitable companies evaporating in 2023, many have been forced to close their doors or been caught in a fire sale for pennies on the dollar.”

LIFEAID is influencing other players within the fitness beverages category by holding themselves and challenging others to high safety and ingredient standards. “FITAID continues to lead the way being the only player in functional / performance energy servicing the natural consumer that stays clear of artificial sweeteners like sucralose, aspartame and AceK,” Hinde said. “Additionally, we do the little things like use the methyl form of B12 whereas all other companies in the space use the cyanide version of B12; we use natural caffeine from green tea in lieu of synthetic caffeine that comes from gigafactories overseas, and we are the first to

use Glambia Nutritionals’ new Creabev encapsulated creatine in our FITAID RX Creatine line. This has made us one of the top brands at natural retailers like Sprouts and high end fitness clubs like Lifetime Fitness.”

"The fitness beverages category is trending towards products that work effectively and fast," said Jake Sloan, Sr. Marketing Director at Electrolit US. "Even more, the quality of ingredients and flavor of our products are not sacrificed for that fast and reliable efficacy. Simply said, consumers want their products to work fast, taste great and be better for them."

CELSIUS invests in understanding its retail partners and consumers, such as their goals, expectations of how fitness beverages should taste and the added benefits they should provide in terms of hydration and recovery down to how they shop in-store. This awareness, coupled with mindful and intentional actions at the store level cast the dye for the desired results within the aisles. “Top down we think about our customers first and then we think about who their customers are; what kind of products they’re looking for, what are the trends?” Guilfoyle said. “It’s not so much pushing our narrative out into our customer base all the time. It’s really a collaborative relationship with them—a lot of discovery meetings, understanding who their consumers are, what works for them and then creating the right innovation that will hit the sweet spot."

Regardless of one's fitness goals, suppliers are ensuring consumers of all types stay hydrated throughout the day. Companies are earning consumers' loyalty with fitness beverages that enhance their nutrition while offering delicious flavor profiles. Consumers are incentivized to stay hydrated with better for you beverages packed with nutrients.

Thought Leadership In

Better For You Candy

Key Takeaways

• The category is focusing on inclusion and permissibility, rather than elimination.

• Vendors are leading the way in transparency and education regarding what better for you entails.

The better-for-you candy space has evolved from sugar-free options and consumers having to settle for chemical flavors that left an unappealing after taste. Today, the space is inclusive, accessible and allows consumers to indulge in a broad assortment of mouth-watering candies. In previous generations, parents were hyper vigilant about keeping their children away from allergens that people absent-mindedly included in classroom snacks, birthday goodie bags or were traces on a peer’s fingers. Manufacturers are providing parents with peace of mind and allowing their kids to balance being responsible for what they eat with the right to enjoy a care-free childhood.

At YumEarth, better for you is about clean ingredients, caring for people with allergens and making the candy space accessible and inclusive. “We take common platforms the consumer understands and make them clean and taste great!” said Jeff Grossman, VP of Sales and Brand Development for YumEarth. “Clean to us is beyond the organic and non-GMO certifications we carry on our products; it includes free from the top 9 food allergies as well as only natural flavors and colors.”

During a recent tradeshow, YumEarth engaged in an ongoing dialogue about the permissibility and the inclusion the better for you space provides consumers. “When you think about better for you and especially the allergen space, most of the solutions 10 years ago were about not having anything,” he explained. “That was the solution. Now it’s about inclusion, permissibility and everyone is entitled to a treat that not only tastes great but is safe in any kind of environment. The hard part about better for you is the definition of it because it almost is a very individualized definition from a consumer perspective. It’s permissibility, it’s inclusion, it’s no longer the kid at the peanut-free table and that’s so critically important, espe-

cially for the parents. We are trusted. We have a very strong following because once they try it, they know that it’s safe and kids love the taste—they’re a loyalist forever.”

Mindful snacking solution, Frooze Balls has been experiencing a similar strong performance so far this year. “We have an incredible team in New Zealand responsible for our innovation,” said Froozeballs Founder Cherie Jackson. “It is impossible to keep their ideas from flowing, and of course I encourage their creativity! Now that supply chain issues appear to be almost fully resolved, not having this distraction means we can focus on continuing to grow our segment of snacking. Balls/bites are a very well-developed segment of snacking in other countries, with consumers appreciating the ability for a smaller portion size. Our goal is to attract that same success in the USA in grocery and beyond.” Transparency and continual education about what better for you entails and how families can return to candies they once believed were forbidden is a big part of how YumEarth leads the space. “We continue to share category information and clarity on what better for you means to the consumer and how to create sections focusing on different subcategories for better for you,” Grossman said. “We offer portion control sizes, great tasting, free from product portfolio for everyday and seasonal, and we continue to lean in with digital to drive awareness and velocities in store. We offer single/sharing sizes as well as pantry solutions for both candy and the lunchbox section with our fruit snacks.”

“Retail, which is what we have to get through to get to the consumer, we’ve worked really hard creating the best in class example of how to do it, how to execute it, how to message it. YIt’s about making a special space and a destination so the consumer knows where to find it. Believe it or not, it’s not for every channel. One thing is where is that con-

sumer, where is that consumer looking for that solution? It's about making our product accessible wherever, whenever and however shoppes want to buy it."

Manufacturers foresee better for you as an opportunities space to continue innovating in. “We envision continued dynamic growth throughout the year and with leading indicators like our seasonal business for early 2025, that should continue through next year as well,” Grossman said.

And they’re not wrong. The National Confectioners Association recently published the 2024 State of Treating report, which showed more than 98 percent of American consumers purchased chocolate, candy, gum and mints in 2023. Further, US confectionery sales hit $48 billion in 2023. “And we project that confectionery sales will reach $61 billion by 2028,” said Carly Schildhaus, Director of Communications and Public Affairs. “Innovation is at the heart of the confectionery industry—and offering products that appeal to a range of tastes and dietary considerations is a key piece of what that means to our member companies. Chocolate and candy manufacturers continue to meet consumers where they want to be met with the products they are offering, which includes products that fall into the ‘better for you’ category. The Most Innovative New Product Awards is one example of how exhibitors can have their products evaluated by the largest and most prominent retailers in the world, and we’re so proud of the fact that MINPA has become a launchpad for a lot of today’s most innovative brands.”

While the definition of "better for you" varies, category leaders agree the better for you candy space is about inclusion, appealing flavors and keeping consumers safe. Manufacturers have enhanced the category to not only make offerings appealing and diverse, but they have also alerted consumers these options exist and are accessible.

no artificial dyes

• non gmo

Delicious allergy friendly treats, free from the top 9 allergens - perfect for classroom sharing, lunchbox snacks and seasonal treats!

• organic ingredients

Innovation in

Bakery Merchandising

Key Takeaways

• Suppliers are committed to maintaining the quality and quantity of their products while ensuring affordability for consumers.

Leaders within the category provide a wide range of products that meet overarching trends such as better-foryou options and clean ingredient labels without sacrificing flavor, quality and quantity in a market that has been hit by shrinkflation. When looking at the deeper, core values, these manufacturers are determined to offer consumers more solutions that accommodate their individual preferences or needs such as allergies or dietary restrictions. Alongside this, there are consumers out there who struggle with adding food options to their list of safe foods that meet their preferences such as texture, taste and smell. This specifically has been seen more recently in children. These companies ensure that consumers have the ability to find quality and decadent bakery options year-round.

In recent years, Anthony & Sons Bakery developed a line of avocado bread which has resonated favorably with households internationally.

“That [line] has significantly taken off with the only manufacturer to be producing bread with fresh avocado in it— whether it be in Europe or in America. We launched it at IDDBA last year and we got it out in the system,” said Ben Rizzitello, VP of Sales and Marketing at Anthony & Sons Bakery.

“We're in about 5,000 units across the country currently including Hawaii, Turks and Caicos and Puerto Rico. We initially started with a sliced 24-oz loaf for sandwich making, and we recently expanded the line. We have two new ones coming out, which I'm not going to say what they are; we're going to launch that at NRA, but we expanded the line from the slice to a dinner roll to a take and bake 10-oz Italian bread.”

DecoPac, a leading cake decorations supplier for professional decorators and in-store bakeries, has been tapping

into the opportunities that online and digital ordering present to suppliers and in-store bakeries. The company has taken the traditional in-store cake book used by previous generations and is offering a straightforward, user-friendly and efficient cake ordering experience for consumers.

“DecoPac is continuing to lead the industry in online cake ordering,” said John Gardner, VP of Global Marketing at DecoPac. “Our technology platform, CelebrationIQ, continues to provide bakery customers with a state of the art, digitally powered order management system for cakes and beyond. And for the consumer that’s using the technology to order a cake, it’s an experience in ultimate personalization—from cake format to fillings, colors to borders, and text to photos, this technology gives the shopper exactly what they want in a celebration cake. And, as it relates to bakery merchandising, DecoPac supplies all in-store merchandising to help consumers easily access this online ordering quickly and conveniently. Whether the merchandising complements the instore cake book or is featured on counter signage or menu boards, shoppers can find the cake they need quickly and efficiently even when labor in the bakery may not be present or focused on other tasks beyond taking orders.”

5th Generation Bakery, producer of well-known Jenny Lee Swirl Bread, has been focused on providing consumers with affordable prices without changing the quality and quantity of its products.

“Q1 has been really good for us. We're up over 30 percent so far year to date. We ended last year up over 35 percent,” said Scott Baker, Owner of 5th Generation Bakery. “So just continuing that growth for us. A lot of our growth stems from diversifying our lines. We've really had a signature cinnamon swirl bread

for the last 14 years and we started to introduce new flavors, and particularly we're able to tap into new markets via QVC. It's been a great partner for us to get our brand into millions of USA homes around the country.”

“It was necessary to raise prices the past few years,” Baker said. “ But when we were able to start to realize those savings, it was very important to us to share that with our customers and our retail partners. Frankly, I have not seen too many other responses similar to ours in the marketplace. So, I do think that we're leading the charge and maintaining a fair and equitable margin.”

“One of the things that has happened is that the ingredients that we use, their prices have stabilized, and in fact have reversed in a lot of cases. And as of the first of the year, we had what we built as an inflation fighter campaign and we reduced our prices, which is starting to show a favorable return for it,” said Steve Percifield, Vice President of Sales at 5th Generation Bakery. “What Scott has done with 5th Generation Bakers is we've occupied, initially, ground that no one else was in. While everybody else was making over emulsified white bread and variations of it, Scott took the opposite approach and introduced a product which was a true artisan bread, only he used high volume production techniques to make it while retaining its all-natural aspect and no one else was doing that. And that, that gave us a solution. That nobody could knock us out easily. And we're continuing it now with the introduction of our products aimed at the grab and go category in scores, and thus far it's been very well received.”

At Anthony & Sons Bakery the leadership team ensures its associates are all focused on what's new and up and com-

• Vendors are balancing new flavors and product lines, leveraging high-volume production techniques, and incorporating artisanal methods to create unique and wholesome products. r Cont'd on Pg. 18

Innovation in: Bakery Merchandising

OneINNOVATION IN PIES

key subcategory of the bakery merchandising segment is pie, which has been steadily gaining traction due to appealing flavor pairings and suppliers understanding the demands and expectations of the consumer demographic they are trying to connect with.

“Q1 of 2024 saw Gardner closing in on completion of our plant / capabilities expansion project. This has allowed us to ramp up our category differentiation with our core values—quality, variety, innovation—by reintroducing unique flavors, Prebaked Gourmet Pies and smaller format pies,” said Tom Cavanaugh, Vice President Sales and Marketing with Gardner Pie Company. “Variety and innovation are key to growth in the pie category. Our goal is to expand the definition of pie and to attract a younger customer demographic. Unique flavor combinations and a continued focus on great taste are attributes we will promote. Finally, as we expand the definition of pie, we continue to look at new, fun ways to serve pie! Pairings and utilization of complements will allow the retailer to promote more broadly and will give the foodservice segment license to be more creative.”

Gardner Pie Company solidified its position as a leader by keeping “investment in people and capabilities front and center, also [by having] a passionate approach to innovation,” said Cavanaugh. “We are third generation family owned that thrives on teamwork; and when combined with our core values of quality, variety and innovation, we are positioned well to partner with the discerning customer. We combine transparency and nimbleness to create a ‘value proposition’ that combines a fair price point for a quality product that resonates with consumers looking for craveable pies.”

“Better-for-you is where we live and is a sustainable position as today’s consumer wants to feel good about what they are buying and eating. While we know pies are a treat, we strive to be the best option for those who want to indulge and feel good about it. Desserts are an indulgence; give me a reason to choose Gardner and our ‘homemade’ approach provides this reason,” Cavanaugh said. “The retail space experienced a hiccup with Covid and is now looking for ways to sustain growth while maximizing returns in an inflationary period. Most of our partners are reaching out to have conversations with the goal of developing initiatives to tackle labor availability; ISB skill challenges; inventory management; social media and margin targets in an inflationary environment. Quality is always in fashion as great taste generates repeat customers. Product development is focused on easing the labor concerns with prebaked options that taste great and maintain ‘better for you’ recipes. Variety is also crucial as we look to talk with a younger consumer who tends to have a broader taste profile and different values. Finally, we are looking at smaller portions to create more affordable trial. And are looking to take this messaging to the market via social media—LinkedIn, Facebook and Instagram.”

However, despite suppliers’ ability to remain nimble and adjust to changes within the in-store bakery landscape, the segment is in flux as the bakery space regains its footing, Cavanaugh said. “The consumer is being more cautious with their spending and will continue through 2024,” he explained “We expect retailers to be cautious as well, as they look to merchandise the ‘right’ products. Space in the bakery is at a premium and products need to generate an acceptable return for this space. We expect to see continued questioning of everything while retailers search for the optimum mix of product and profitability. The bakery category has always been a place for quality staples and indulgent treats.”

r From Pg. 16

ing, Ben Rizzitello, VP of Sales and Marketing at Anthony & Sons Bakery said.

“At the same time, we keep to our core values, which are we still do a lot of hands on, and that's something that our company takes pride in doing, and the reason for that is because when our product is out in the industry, we want

it to look like our customers are making it at store level or at the restaurant level,” he explained. “So, we do a lot of hand scoring, which we take pride in doing. So, it's more traditional type products. We also have unique recipes that have been handed down from generation to generation. When you look at our product, it's not a traditional cookie cutter manufactured product; it's more whole-

some, more hands on, more artisan style.”

Catering to individual inclinations within a diverse consumer base, bakery leaders strive to provide a product for everyone that can meet and satisfy their needs. These leaders have been focused on balancing new flavors and product lines to create distinctive bakery items.

Innovation in

Frozen Fruit

Key Takeaways

• Manufacturers are emphasizing simple, minimal ingredient products that give peace of mind.

• Leaders are focusing on meeting consumers' demands for convenient, healthy and tasty options.

Leaders within the frozen fruit category have merged several ideas and goals together to push the frozen fruit category forward and meet consumers where they are at with options that cater to their individual flavor preferences and healthier, cleaner eating habits. These goals include combining convenience, health, affordability and taste to create easy, at home solutions to everyday meals. Frozen fruit has the versatility and convenience factor to make things like breakfast, lunch and snacks like protein shakes or smoothies easier for the busy individual or household.

Seal the Seasons’ retail partners have recently reported strong sales within the frozen fruit category. The demand for local frozen fruit combined with trial and exploration of smoothie kits are believed to be the driving force behind its strong performance in Q1. “[We have seen] strong velocities of local frozen fruit; current customers Wegman’s, Harris Teeter, and Whole Foods demonstrated best sales weeks ever,” said Patrick Mateer CEO of Seal the Seasons. “[We’re also seeing] Top of smoothie kit subcategory dollar velocities for our smoothie kit innovation items. In total US data, our three smoothie kit items all ranked in the top 8 dollars per store, per week items! [Our] New smoothie kit innovation is also going well. We had several retail partners commit to purchasing our new Blue Spirulina Smoothie Kit item launching in July.”

Seal the Seasons supports its grocery partners by striking a balance between offering a broad assortment of flavors and knowing when to whittle that assortment down to consumers’ favorites. The variety of options allows for retailers to provide consumers with an in-store destination and promotes category exploration while simultaneously curating the selection by store to ensure consumers have access to the flavors they prefer. “We have taken the guesswork out of assortment decisions

by rationalizing down under-performing SKUs so we are only offering our retail partners high performing items for their categories,” said Mateer. “We have stayed on the forefront of innovation by building out our smoothie kit supply chain and offering innovative flavors like Blue Spirulina. We attribute success to our team’s persistence and culture of perseverance and grit.”

It’s not enough to offer frozen fruits and smoothie kits in store with eye-catching merchandising displays or attractive packaging. Retailers must go a step further and practice superior customer service and execute strategic marketing plans that raise product awareness, Mateer said. “Customer service levels and promotional support is crucial,” he said. “We are seeing brands with poor service levels or poor promotional support being discontinued. We are seeing grocers interested in more locally grown foods, especially unique offerings like antioxidant blends. We are also seeing category managers expand merchandising space for frozen fruit to open up room for the smoothie kit subcategory.”

Wawona Frozen Foods has continued to be a driving force in the foodservices category and has been expanding into retail as the company enters into the second quarter of 2024. According to Bill Smittcmap, President of Wawona Frozen Foods, the company has several product launches coming up this year, and as sustainability and reduction of food waste continue to be a hot topic, the company has been able to problem solve by finding uses for unused frozen fruits in the school industry. “We are celebrating our 60th anniversary of being in the frozen food business,” said Smittcamp. “Everything we are doing is trying to raise awareness of frozen—and frozen fruit in particular—and products in California, so those are peaches and strawberries as well as everything else we make. The

new products we are coming out with are a new Chamango ice pop. It’s peach, mango and pineapple with a little spice in it. We are selling it to kids as a half a cup of fruit, and we have two retailers that want us to launch it in Q2 of 2024. [We also have] a strawberry pear pop, and we have been making these pops for the USDA school lunch program for at least a decade. We have been trying to get them in with retailers and they just don’t fly, but we think that the new Chamango and combination of different fruits coming together is where we are trying to excel. For the holidays, in a limited, regional area, we make a product called a Peach Jewel. It’s a small, decadent, little cookie, which is filled with a peach filling. It is divine. We can’t sell baked goods because the crust is so fragile, so it is [made so consumers can] take it home, put it in their ovens, bake it and it’s like a little peach pie.”

Nature’s Touch Frozen Foods puts emphasis on the company’s simple, minimal ingredient products that give consumers peace of mind as they know exactly what they are purchasing and consuming. “Nature's Touch has just unveiled ‘Nature's Touch Chocofruit Strawberry,’ where healthiness seamlessly blends with indulgence. This delightful treat is ideal for any occasion, whether you're snacking or entertaining guests; it's certain to bring joy. Crafted with just two simple ingredients, it offers unparalleled convenience,” said John Tentomas, Owner of Nature’s Touch Frozen Foods.

With the added focus on limited and clean ingredient labels, category leaders have been encouraging consumers to include fruit in their everyday lives through the convenience of frozen fruit. Partnering with retailers, these companies have been able to promote and encourage consumers to try their products through raising awareness of the variety of fruit and assortment of options.

Innovation in

Pot Pies

Key Takeaways

• Brand recognition plays a significant role in consumer purchasing decisions within the category

• When purchasing pot pies, consumers prioritize quality, better-for-you ingredients and convenience.

While pot pies in grocery retail used to be synonymous with the frozen variety which, more often than not, still came out of the oven with the filling disappointingly cold and a nutrition label screaming high sodium content, today’s category leaders know that quality, better-for-you ingredients and convenience are top drivers for pot pie sales plus repeat customers. To help meet an increasingly food-savvy consumer where they are, companies are also bringing innovations in storage and packaging to their retail customers to support their ability to provide tasty, convenient and portion-appropriate pies for a wide range of households.

Both Centerville Pie Company and Blount’s Family Kitchen experienced a positive first quarter of 2024, thanks in part also to their well-earned reputation and brand recognition. Centerville Pie Co. was famously lauded by Oprah Winfrey after its founding in 2009, who named its scratch-made chicken pie one of her favorite things; and Blount’s Family Kitchen is a branch brand off Blount Fine Foods, known for its signature seafood soups and as a soup supplier for Panera Bread. “Centerville Pie Company is always looking ahead to stay relevant with today’s trends,” said Founder Kristen Broadley. “Providing a destination of multiple branded high-quality products proves to increase customer draws to purchase over single item displays, which generates higher basket rings. Marketing through digital platforms and clipless coupons are also key elements in today’s success.”

In the last quarter of 2023, Centerville launched four new items to retail with a favorable outcome, she said. “Centerville savory pies continued to increase in unit sales while competitors showed a decrease this past year. The data also revealed that today’s consumer is willing to pay more for a premium product and an enjoyable eating experience.

While many brands have struggled moving out of the ‘Covid years,’ Centerville proved to hold staying power in Q1 2024, and we are encouraged the same will hold true through 2024.”

Blount’s Family Kitchen, however, would not be one of the struggling companies. Though the company has only been in the category for the last 14-15 months, the company has seen great success, according to EVP of Sales and Marketing Bob Sewall. Sewall’s assessment of the general category, however, matches Broadley’s. “I’d just tell you pot pies sales, in general, have been down. I believe it’s really due to lack of quality in the segment, so our products have given new life into the category,” he said. Brand recognition helped Blount’s initial entry into the category, too. “We’re working with the Blount name and Panera products so they’re familiar with the brands, and I believe they trust it. We’re bringing new customers to the deli—that’s good news. That’s been a phenomenal start for us.”

Broadley emphasizes that Centerville similarly resists suggestions to cut costs at the expense of quality. “We stay true to our brand. When the market experienced a significant [cost] increase in raw materials, and some retail partners suggested we change the formulation of our pies to reduce the overall cost/retail on shelf, Centerville respectfully declined and stayed true to our business model,” she said. “We even took less profit margin to be able to hold pricing until the market took a positive turn. Centerville knows our customer and will never sacrifice a winning recipe or change quality for price.”

Centerville’s leadership extends into keeping an open line of communication and heeding its retail partners’ requests and suggestions. “Their knowledge of their store demographics, along with customer feedback, influences our future development of new items added

to our retail line,” said Broadley.

Blount’s grocery deli offerings have the intent of helping its partners save time and money, which they can then pass along to consumers.

“Because our product comes frozen, the supermarket can put it on the shelf and it has a 14-day shelf life; that’s a two-week shelf life compared to the other meals that have maybe three to five days at best. It eliminates any shrink on the shelf, so that’s important for the customer too. The other nice thing about our pot pie is that if you cook it up in the store and you sell it hot, to-go with say, a rotisserie chicken, it has a four-hour hold time. A lot of our customers are selling it in the deli case fresh but also cooking them up and selling them hot, to-go.”

Wholesome and accessible are also consumer priorities that ConAgra Foods has zeroed in on. The packaged food company acquired the all-natural brand Blake’s in 2015, which was among the brands that ConAgra highlighted at this year’s Natural Products Expo West 2024.

ConAgra Foods’ CEO Sean Connolly said at the time of the acquisition, “Blake’s is a great addition to our existing frozen meals business and provides more choices to a growing group of people buying natural and organic foods. ConAgra Foods will help Blake’s grow and offer its wholesome food to more people across the country.”

Companies continue to strive to bring quality ingredients to consumers while also keeping the price tag affordable. The mode and manner in which busy consumers plan and execute a weeknight meal has additionally led pot pie category leaders to adopt flexible means to support their grocer partners with everything from promotional tools to innovating items that can be prepared and displayed in either a deli display or a hot foods case.

With deep New England culinary roots, the Blount family puts quality and comfort first. This pot pie, with white meat chicken and a buttery crust, is sure to taste like home. For more information call Blount Fine Foods at 774-888-1300 or visit BlountsFamilyKitchen.com

Today’s most craveable flavors, all in one place.