September 12, 2024
Weekly Newsletter:
Stallers and Shot Callers
With the onset of fall less than two weeks away (no, we’re not psyched about it either), leaders seem to be buckling down to some heavy work at hand.
- Industry groups push hard for action on the farm bill.
- Media sources find some stewardship positives in food production.
- CEOs and leaders discuss growth strategies.
“Everyone deserves dignified access to nutritious food to thrive.”
Casey Marsh, Chief Development Officer, Feeding America (Feedstuffs)
Farm Bill Comes Due
As Congress returned from its August recess, the food and agriculture industries collectively pushed for progress on the farm bill. Two reports that the USDA published last week, showing higher food insecurity and lower farm income, have only increased the urgency.
- On September 9, a coalition of 300 agricultural groups signed a letter urging Congress to pass a farm bill before the year ends. Signatories represented a wide array of farm products, from the most vocal groups — corn, soy, meat, dairy — to more niche organizations — barley, peanuts, peas and lentils.
- Nutrition Insight highlighted how the USDA food insecurity report has mobilized nutrition and anti-hunger groups to strengthen the Supplemental Nutrition Assistance Program (SNAP, aka food stamps) portion of the bill.
- Before the August recess, Food Research & Action Center gathered signatures from 1,400 organizations that support expansion of SNAP.
- Senate Agriculture Committee Chairwoman Debbie Stabenow (D-Mich.) commented, “This has always been the foundation of the Farm Bill, pairing the farm and family coalitions together and working toward a common goal — not pitting one against the other.”
- Rep. Jim Baird (R-Ind.), a member of the House Agriculture Committee, tweeted: “@HouseAgGOP passed our bipartisan Farm Bill over 100 days ago, but Senate Democrats still refuse to act.”
Our Takeaway: We’ve been covering negotiations for the 20232024 Farm Bill for the past year and half … and that might push into a second year. Just about every interest group is getting impatient.
Part of the Solution
From greenhouse gas emissions to water use, the sustainability of food and beverage production often comes under scrutiny. This week, several outlets flipped the approach and highlighted ways that food can be a part of plans to fight climate change:
- Climate Solutions Week | NPR
- EPA releases proposed updates to recommendations to help buyers find sustainable products | EPA
- These plants are made of metal, and they might be the fix the clean energy transition needs | Triple Pundit
- Maximizing climate potential: Reducing food waste with federal funds | Natural Resources Defense Council
- Why are US agricultural emissions dropping? | Civil Eats
- Sustainability could impact business structures for dairy | AgFunder News
- EU officials pledge to develop more water-saving technologies in farming as droughts worsen | The Associated Press
- Scientists outline measures to cut greenhouse gas emissions in US beef supply chain by 30% | Food Ingredients First
- Sushi restaurants all over America are leaning into sustainability — here’s how | Food & Wine
Calling the Shots
After polarized earnings announcements a few weeks ago, top brass at many brands and restaurants have introduced their growth strategies. The Barclays Global Consumer Staples Conference in Boston proved to be a trove of CEOs calling their strategic shots for the rest of 2024 and beyond.
- Focusing on innovative products like Jif Peanut Butter & Chocolate spread, ready-to-drink Cafe Bustelo refrigerated drinks, and Hostess Meltamors has allowed J.M. Smucker to project 2.5%-3.5% net sales growth in 2025. Yes, that’s huge. Baking Business captured comments by CEO Mark Smucker at the Barclays conference.
- Food Dive’s Chris Casey attended the conference and summarized WK Kellogg CEO Gary Pilnick’s comments that the cereal spinoff was paying off: “Nine of WK Kellogg’s eleven biggest brands are growing faster than the cereal category as a whole.”
- Also at Barclays, Keurig Dr. Pepper CEO Tim Cofer predicted three focus areas key for the brand’s success: better distribution, pushing Dr. Pepper Zero Sugar and more product introductions (Food Business News).
- Supermarket Perimeter paraphrased Mondelez CEO Dirk Van de Put, who emphasized growth in in-store bakery: “Recent acquisitions in the baked snacks arena offer a springboard for expansion into soft baked treats like cakes and pastries.”
- In a letter to employees, recently crowned Starbucks CEO Brian Niccol said the company’s first order of business is to streamline online orders and make stores less “transactional” and more welcoming (The Wall Street Journal).
- At a September 10 investor event, Campbell Soup Company outlined progress in three key areas: a transformed product portfolio, a rebuilt foundation and delivering on commitments. Shortly afterward, BBC reported that the company would drop the word “Soup” from the 155-year-old company name. Makes sense. We don’t want Rao’s marinara to be soupy.
Our Takeaway: Confidence sells. In this temperamental market, food brands and restaurants must sell stakeholders, shareholders and bagholders (aka consumers) on a winning strategy.
Last week, Forbes published a compelling profile of Louie Gentine, CEO of Wisconsin-based Sargento. The article details how his family-owned company navigates the challenges of the slim-margin cheese business through innovation, marketing and a long-term focus. Sargento products consistently serve the grocery channel through elevated everyday cheese-eating experiences. Although paywalled, it’s a fascinating ten minute read.
Worth Reading
Flavorful Fungi
By turning food previously categorized as waste into new colors, textures and flavors for food, the fungus Neurospora intermedia is working its way into the culinary mainstream. Food & Wine examined how researchers are using it to support the fermentation of fruit, vegetable pulp and other byproducts and create new food products. This analysis positions the fungus as a solution that addresses food sustainability issues and provides economic value. Hey, fungus people, free tagline: “Less waste, more taste.” You’re welcome.
Hunger Relief
US Foods expanded its partnership with Feeding America to the tune of $750,000 for the group’s Direct to Neighbor locker program, which offers a “more convenient and dignified hunger-relief support for community members.” Participants can order food online to be picked up at a designated locker at an affiliated food bank or agency partner, making the participant experience similar to traditional online grocery stores. More than 44 million Americans, including 13 million children face food insecurity in the U.S.
‘Summerween’ Is Here
Although there are still a few weeks of summer left, you may feel it slipping away sooner than usual. Why? Summerween is upon us. Supermarket Perimeter highlighted Yelp’s recent findings that consumers are preparing early for Halloween festivities. From the pumpkin spice latte’s earliest debut ever to Spirit Halloween searches up 83%, summerween has taken off in popularity thanks to TikTok and Instagram.
Can La-La Land Revive its Restaurant ‘Scene’?
Inflation, a sluggish return to office, and lingering impact from Hollywood strikes have resulted in more than 75 L.A. area restaurant closures in 2024, but area chefs are not ready to roll credits on the food scene. In a piece for the Los Angeles Times, Laurie Ochoa shared her optimism for the future: “Chefs and restaurateurs continue to open ambitious, personal and creatively challenging places.” L.A. Chef Brian Dunsmoor hopes that chefs will deliver “high-quality, lower-price-point” eateries that provide the ‘bang-for-your-buck’ experience diners are craving.
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