January 17, 2025

Please see below for a listing of what the North Point Food & Beverage Team has been tracking this week. We hope that you find the content insightful and a nice way to summarize the most noteworthy Food & Beverage events of the week.

Have a nice weekend!

Glen Clarke

Head of Food & Beverage

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Sweetmore Bakeries (Shore Capital) acquires Azteca Bakeries.

• Sweetmore Bakeries is pleased to announce that it has completed an acquisition of Azteca Bakeries, a wholesale manufacturer of authentic Mexican pastries and baked goods. The acquisition of Azteca will add to the already expansive set of premium products offered by Sweetmore Bakeries across retail and foodservice channels.

Source: Mergermarket

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Pita Pit forms strategic partnership with Thor's Skyr.

• Pita Pit USA, a Mediterranean fast-casual brand specializing in made-to-order pita sandwiches, has announced a strategic partnership with Thor's Skyr, an American-made Icelandic yoghurt brand, according to a press release.

Source: Mergermarket

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Solina acquires U.S. based Advanced Food Systems.

• Solina, a prominent global player in the food industry specializing in savory food solutions, has acquired U.S. based Advanced Food Systems, Inc. (AFS), marking another milestone in its North American growth journey. The deal was finalized upon signing and AFS' leadership team and 40 employees will join Solina USA.

Source: PR Newswire

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Plant-based foods maker Misha's acquires dairy-free cheese producer.

• Plant-based foods company Misha's Inc. announced that it has acquired Vertage, an innovative dairy-free cheese company.

Source: Food Manufacturing

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Maple Donuts exploring sale, sources say.

• Maple Donuts, a family-owned producer of bakery products, is in the early stages of a sale process, according to two sources familiar with the situation.

Source: Mergermarket

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Slideshow: Latest in frozen food innovations.

• Rustica Foods introduced a Detroit-style pan pizza line with various flavors, offering an elevated pizza experience.
• Premier Protein expanded its frozen breakfast offerings with protein-packed waffles and mini pancakes, providing 13-15 grams of protein per serving.
• Green Giant launched three new frozen side dishes, including smashed potatoes, corn cob bites, and veggie ramen, offering convenient and flavorful options.

Source: Meat + Poultry

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Tropicana orange supplier Alico to exit citrus business.

• Alico Inc., one of the largest U.S. orange growers and a supplier to Tropicana, is exiting the citrus business due to a 73% drop in production from hurricanes and plant diseases.
• The company will stop investing in citrus operations after its 2025 harvest, with most of its production workforce laid off, and citrus acreage managed by third parties.
• Alico plans to diversify into other agricultural ventures, selling or leasing most of its land, with some portions earmarked for commercial and residential development.

Source: Food Dive

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Anheuser-Busch to launch energy drink through Dana White-backed partnership.

• Anheuser-Busch is partnering with 1st Phorm and Dana White to launch a new energy drink, set to debut this summer, aiming to enter the competitive energy drinks market.
• The energy drink collaboration is part of Anheuser-Busch’s strategy to expand beyond its core beer business, especially as beer sales face challenges.
• The new energy drink will compete with established brands like Monster, Red Bull, and Celsius, with Anheuser-Busch leveraging its distribution network to reach consumers.

Source: Food Dive

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Higher egg prices boost Cal-Maine earnings.

• Cal-Maine Foods, the U.S. largest egg producer, saw an 82% increase in quarterly net sales, driven by high demand and supply shortages due to bird flu outbreaks.
• Prices for eggs continue to break records, with large white shell eggs reaching up to $8.97 per dozen in California, leading some retailers to limit consumer purchases.
• In response to supply challenges, Cal-Maine expanded its production capacity through acquisitions, focusing on cage-free eggs and increasing its processing capacity for liquid and shelled eggs.

Source: Food Dive

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Keurig Dr Pepper creates energy drink exec role in leadership refresh.

• The creation of a new role to oversee the company's expanding energy drinks business, with Justin Whitmore taking charge. This follows Keurig Dr Pepper’s $1 billion purchase of energy drink brand Ghost.
• Eric Gorli was appointed president of its $9 billion U.S. refreshment beverage operations, which include soft drinks, tea, and energy drinks.
• The company also named Sean Cronican as chief customer officer and Drew Panayiotou as chief marketing officer.

Source: Food Dive

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USDA finalizes third rule under Packer and Stockyards Act.

• The rule provides transparency on payment rates and capital improvement requirements for chicken farmers, offering more stability in poultry growing contracts.
• It strengthens farmers' ability to hold companies accountable for adhering to the rules and prevents unfair practices.
• The changes, effective July 1, 2026, follow two previous regulatory reforms aimed at improving poultry grower contracting and market integrity.

Source: Meat + Poultry

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Hershey names new executives to oversee confection, salty snacks.

• Hershey appointed Andrew Archambault as president of U.S. confection and Veronica Villasenor as president of salty snacks, effective February 3, 2025.
• Archambault, formerly at Keurig Dr Pepper, will oversee Hershey’s confectionery brands, while Villasenor, a 22-year Hershey veteran, will lead its salty snacks division.
• These changes come amid industry challenges such as rising cocoa costs and shifts in consumer spending, as well as CEO Michele Buck’s planned retirement in 2026.

Source: Food Dive

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Hormel Foods CEO to retire after 36 years with the Spam maker.

• Hormel Foods CEO James Snee will retire at the end of fiscal year 2025 after nearly 40 years with the company, with a search committee formed to find his successor.
• Snee led the company through significant growth, including the $3.35 billion acquisition of Planters from Kraft Heinz, which expanded Hormel’s presence in the snacking category.
• His retirement comes as Hormel faces challenges like slowing consumer demand and difficulties in its turkey business, similar to broader trends in the food industry.

Source: Food Dive

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Maple Leaf expects ‘transformative’ year ahead.

• Maple Leaf Foods plans a transformative year in 2025, focusing on revenue growth, significant EBITDA improvements, and continued cost-saving initiatives, including the completion of its Fuel for Growth program and SG&A reductions.
• The company aims to capitalize on increasing consumer demand for sustainable proteins, boosting marketing investments, and expanding its U.S. market presence.
• Maple Leaf is also progressing with its pork spin-off, Canada Packers, expecting a second-half 2025 closure, with shareholder approval scheduled for June 2025.

Source: Meat + Poultry

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Industry outlook: Election implications.

• Speculation about President-elect Donald Trump’s policies, especially his stance on tariffs, has raised concerns among U.S. agricultural sectors, particularly meat and poultry processors, with potential retaliatory actions from foreign trading partners threatening export margins.
• The Trump administration's focus on immigration reform could impact the labor force in agriculture, with potential restrictions on temporary protected status programs and immigrant worker visas, critical to the food and ag sectors.
• The shift in Congressional control under a Republican administration is expected to prioritize tax reform, border security, and energy policies, with an emphasis on creating a pathway for legal immigration in the agriculture sector.

Source: Meat + Poultry

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JBS Prepared Foods highlights automation at new Italian meats plant.

• JBS Prepared Foods’ new $200 million Italian meats plant in Columbia, Missouri, combines traditional Old World techniques with advanced automation to produce premium cured meats like prosciutto, salami, and pepperoni.
• The facility, which began operations in 2023, has an initial capacity of 30 million pounds per year and is designed for future expansion, aiming for a capacity of up to 50 million pounds annually.
• Automation, including automated guided vehicles (AGVs) and precise environmental controls, ensures high efficiency with a small workforce of around 250 employees, supporting the growing demand for charcuterie-style products.

Source: Meat + Poultry

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Why drinking bottled water can be much worse for you than tap, according to new research.

• A recent scientific paper says that tap water in the U.S. is almost always a healthier choice than drinking bottled water - as tap water is generally safe, inexpensive, convenient, and eco-friendly. 
• Tap water is generally considered safer than bottled water as tap water is regulated by the Environmental Protection Agency. There are no similar standards for bottled water. 
• The study notes that bottled water is a better choice when tap water has been deemed unsafe - this may be in cases of natural disasters, water emergencies, contamination associated with water main breaks, identified contamination, or other lack of a clean water supply.

Source: Food & Wine

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USDA reports Boar’s Head plant with ‘inadequate sanitation practices’.

• The USDA’s Food Safety and Inspection Service (FSIS) reported inadequate sanitation practices at Boar’s Head’s Jarratt, Va., facility, following a multi-state Listeria outbreak in 2024 that resulted in 61 illnesses and 10 deaths.
• Inspectors identified multiple issues, including residue on equipment, condensation on exposed products, and structural problems that could harbor moisture, contributing to unsanitary conditions at the plant.
• Boar’s Head initiated a recall of over 7 million ready-to-eat products in July 2024 and closed the affected facility. The company also formed a Food Safety Council to improve its safety practices in response to the outbreak.

Source: Meat + Poultry

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FDA bans red dye No. 3 over link to cancer in rats.

• The FDA has banned Red No. 3, a synthetic coloring used in food products like candy, cereal, and cakes, after it was linked to cancer in rats. Food manufacturers must reformulate their products by January 15, 2027.
• Red No. 3, which has been used since 1907, is made from petroleum and has been found in thousands of food items. It was already banned in cosmetics and drugs in 1990, and now consumer groups have successfully pushed for its removal from food.
• The FDA’s decision follows increasing consumer demand for cleaner ingredients and actions by states, including California's 2023 ban on the dye, with many food companies already phasing it out.

Source: Food Dive

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The FDA wants to put warning labels on the front of food packages.

• FDA proposes front-of-package warning labels for foods high in salt, added sugar, and saturated fat to improve consumer health and combat chronic diseases.
• Labels would indicate whether products are high, medium, or low in these substances, and show the percentage of the daily recommended maximum.
• Food industry groups argue the labels may not change consumer behavior, while public health advocates support the move, citing success in other countries.

Source: The Wall Street Journal

JUST FOR FUN

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• 'Soup you can suck on': Progresso introduces new chicken noodle soup-flavored hard candy - USA Today

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