Food and Beverage Sector Ideas

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World's 5th biggest economy now fully open to hemp/CBD products

Snippet:
California Gov. Gavin Newsom has signed a bill into law making hemp/CBD supplements and foods legal after an unsettled period in which the state health department was following a federal lead in ruling that CBD was not a legal dietary ingredient.

https://www.nutraingredients-usa.com/Article/2021/10/07/World-s-5th-biggest-economy-now-fully-open-to-hemp-CBD-products

[wow_happens28]

$MKC McCormick shares slump in face of inflation, supply chain challenges despite ‘remarkable’ sales growth.

More of this to come?

Snippet:
Spice maker McCormick & Co.’s shares fell 3.2% yesterday despite beating third-quarter profit estimates and posting a “remarkable” 8% sales increase in the period over strong results for the same time last year when pantry-stocking caused consumer demand to skyrocket.

https://www.foodnavigator-usa.com/Article/2021/10/01/McCormick-shares-slump-in-face-of-inflation-supply-chain-challenges-despite-remarkable-sales-growth

chart>>>
https://www.barchart.com/stocks/quotes/MKC/overview

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Private label losing ground to name brands, IRI says

https://www.fooddive.com/news/private-label-losing-ground-to-name-brands-iri-says/607397/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202021-09-30%20Food%20Dive%20Newsletter%20%5Bissue:37055%5D&utm_term=Food%20Dive

Dive Brief:
Private label brands have struggled to keep up with brand name offerings during the past year, according to data from IRI. The Chicago-based market research firm said during the 52 weeks ending Sept. 19, sales of brand names rose 3.6% to $536 billion, while private label increased 1.5% to $142 billion.
IRI found brand names had 79.1% of each food dollar spent in the 52 weeks ending Sept. 5, 2021, up 0.3 percentage points from a year ago, compared to 20.9% for private label. The data showed the increase in share for brand names at the expense of private label was especially prominent in pork, up 3.3 points; beef, up 2.9 points; and fresh bread and rolls, as well as bottled juice, both increasing 1.5 points.
Once dismissed by consumers as inferior, private label has now become a standard go-to item for many people when they shop — generating billions in additional revenue for the companies that manufacture these products.

Dive Insight:
As the pandemic unfolded, there was widespread optimism that private label brands would continue their upward climb. But last year, for the first time in a decade, sales growth of national brands outpaced the growth of private labels, according to NielsenIQ data.

Krishnakumar Davey, president of strategic analytics at IRI, told Food Dive that private label brands were hit harder than their brand name peers by supply chain issues in areas such as transportation. In some cases, he said, brand name manufacturers may have prioritized making their own higher-margin products instead of private label offerings.

Another factor hurting private label is the fact that many consumers haven't gone out as much or avoided expenses like commuting to work, buying a cup of coffee or traveling, and have been flush with extra cash, he said. The money, coupled with the ongoing move toward premiumization, makes brand names a more attractive option due to their higher-quality reputation and nationwide recognition.

"People are buying more premium products, even among low-income shoppers," he said.

Still, Davey said it may not be long before private label has regained at least some of its momentum.

Many consumers are no longer getting extra money from the government, hitting lower and middle income shoppers especially hard. Inflation also is battering much of the U.S. economy, and food and beverage makers of everything from meat and pizza to snacks and sports drinks are passing on a major portion of their increase in expenses to the consumer.

Coca-Cola, Unilever, Nestlé, Mondelez International and General Mills are just a few of the companies whose executives have announced price increases or telegraphed to Wall Street that hikes are coming to offset rising expenses.

"We're seeing that in some industries already that consumers are beginning to cut back, right on the more expensive side and on the poor substitution side," Davey said. "The consumer doesn't have an infinite wallet."

The last year created a perfect storm that in many ways made private label a less attractive option, and minimized the reasons people would have turned to it in the past. But with less money going around, higher prices and improvements in the supply chain, private label may once again regain its momentum.

There's also the growing e-commerce channel, where more consumers are buying their groceries. In April, Kara Sheesley, then-vice president of retail engagement at NielsenIQ, said e-commerce allows retailers to have more control over their online platforms that they can use to drive sales.

"Retailers own that space, and so they actually have more control over what your eye is taken to, which also means that it creates a great opportunity for retailers to support the growth of their own brands," she said.

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>>> Can Food Stock Newbie Sovos Brands Live Up to Its Energetic IPO?


Investors found the spaghetti and yogurt maker's stock worthy of a taste, but there may be some flies in the soup.


Motley Fool

by Rhian Hunt

Sep 28, 2021


https://www.fool.com/investing/2021/09/28/can-food-stock-sovos-brands-live-up-to-its-ipo/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


Key Points

Sovos went public at a lower offering price than originally planned, reducing its proceeds.

The company has a large amount of debt, much of which was taken on to pay an owners' dividend.

Its sales are growing, but margin is declining and earnings are not keeping pace with revenue growth.


Offering its shares on the public stock market for the first time on Sept. 23, food company Sovos Brands (NASDAQ:SOVO) ended up pricing its initial public offering (IPO) lower than originally planned. But investors appeared to think the launch suited their taste and the stock price jumped soon after, ending its first day's trading up over 20%.

Despite the relatively optimistic first day of trading, there are at least three reasons you might want to be cautious about buying this food industry upstart's shares.

1. Lower price ends up minimizing the proceeds Sovos was hoping for

Sovos offers a menu of brands that includes Italian cuisine, yogurt, and "better-for-you" pancake and waffle mixes. It's been around since 2017 and was founded by a food industry veteran who wanted to target stand-out products that could compete with category leaders if given the right backing and opportunities. Sovos management filed the IPO with the Securities and Exchange Commission in late August and eventually pegged the expected share price range at $14 to $16. On the actual launch day, pre-IPO interest dropped the actual IPO to just $12 per share. The stock opened at $14.75 per share and traders bid it up to almost $15 in the first hour, a price that actually fell about midway in the early price range.

With the gains winding up in the pockets of traders, Sovos ended up with an initial valuation of $1.17 billion. Had it sold the 23.3 million shares of common stock at the high end of the original range, it might have attained a $1.6 billion valuation instead. In terms of gross proceeds it could use to fund future efforts, the IPO gave the company $280 million, rather than roughly $325 million to $373 million.

2. Sovos is going public with a major chunk of debt

Sovos has a specific use in mind for the cash. The company says it intends "to use the net proceeds from this offering to repay borrowings outstanding under our Credit Facilities and for general corporate purposes." While Sovos provides no breakdown of how the proceeds will be divided between these uses, listing repayment of debt first suggests more cash will be allocated to this than "general corporate purposes."

Sovos' long-term debt increased 182% year over year from $276.5 million to $780 million halfway through 2021. Between the end of December 2020 and the end of June 2021, long-term debt surged roughly 125%. Sovos additionally says in its prospectus it borrowed $905 million in June from Credit Suisse and Owl Rock Capital Corp. It used $373.2 million to repay existing loans, but also "made a restricted payment for the purpose of paying a dividend in the amount of $400 million to the direct or indirect equity holders" of Sovos Brands Limited Partnership, the separate partnership which owns the Sovos Brands food company.

Sovos, in short, is not mainly using its IPO proceeds to fund business expansion. Instead, shortly before going public, it borrowed almost $1 billion and immediately paid nearly half that money to its owners as a "dividend." Then it launched its IPO and earmarked an unknown portion of the proceeds to pay down the debt incurred in paying this dividend.

Even though it's using some of the proceeds to reduce debt, Sovos has a lot of leverage on its balance sheet. Campbell Soup, another food products brand manager that has seen its COVID-19 performance declining and a return to sluggish growth as the economy reopens, has a debt-to-equity ratio of 160. Other processed food companies include Post Holdings with a 242 ratio, The J.M. Smucker Co. with debt to equity of 58, and Hostess Brands with an approximate ratio of 67. Sovos tops all of these companies with a whopping total debt-to-equity ratio of 371, making it one of the most indebted in the sector.

Boxes and containers from Sovos Brands, including spaghetti, lasagna, pasta sauce, yogurt, and pancake mix sit on a white table
IMAGE SOURCE: SOVOS BRANDS.

3. Sovos' performance is a bright spot, but it has caveats
Sovos' financial performance includes an impressive-looking 34% increase in revenue year over year for the first six months of 2021, up to $351.2 million. However, cost of sales increased 37% over the same period. Its earnings before interest, taxes, depreciation, and amortization, or EBITDA, margin declined from 15.7% to 13.1%. Its net income rose 14% from $9.1 million to $10.4 million, while adjusted earnings per share increased from $0.12 to $0.13.

The company is growing and making sales, but its declining margins, rapidly increasing expenses, and low EPS growth counterbalance these positives to some extent. It also recently acquired one of its four brands, Birch Benders, which may be affecting its apparent performance. Birch Benders, which Sovos bought in October 2020, generated $32.5 million in revenue during 2021's first 26 weeks.

Removing the effects of Birch Benders from the equation reduces revenue growth to 24% -- still substantial, but also indicating net income and EPS might have been lower, too, possibly even declining year over year without Birch Benders' contribution.

Sovos has pluses, but investors should be careful

While the stock market apparently found Sovos' IPO toothsome, at least initially, there seem ample reasons to be cautious about the company. Its growth is positive, but many other companies have higher margins, turning revenue into earnings more efficiently. Its IPO proceeds, rather than being funneled to kick-starting continued growth or expansion, are paying down large debts taken on voluntarily right before going public in order to pay a $400 million dividend to Sovos' owners (along with paying down earlier debt).

While its products sell and appear to be good quality food, it seemingly has little to set it apart from other food stocks. With its average product lineup and high debt, Sovos may not be among the most appetizing dishes on the IPO table right now, and investors should be cautious.

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>>> J&J Snack Foods Celebrates 50 Years


Yahoo Finance

September 27, 2021


https://finance.yahoo.com/news/j-j-snack-foods-celebrates-143100778.html


Iconic snack company to kick off year-long anniversary celebration with employee and consumer events


PENNSAUKEN, N.J., Sept. 27, 2021 /PRNewswire/ -- What happens when one of America's most beloved snack companies reaches a significant milestone? There's a celebration, of course! What else would you expect from a company whose motto is "Fun Served Here?"

J&J Snack Foods Corp., (NASDAQ: JJSF) a leader and innovator in beverages and snack foods is recognizing its 50-year anniversary with a year-long commemoration that celebrates both its employees and valued customers.

J&J Snack Foods will kick off the celebration this month and will continue to rollout activities throughout the year to honor its valued employees and loyal brand fans, recognizing the company's impressive growth and success over the past 50 years.

Founded in 1971 by Gerald "Gerry" B. Shreiber, J&J Snack Foods began with the $72,100 purchase of an ailing pretzel company of eight employees at a court auction. Fast-forward 50 years, and the company has evolved into a billion-dollar publicly traded company and industry leader in snack foods with over 4,200 employees, 16 manufacturing locations across the country, and products throughout foodservice and retail channels nationwide. J&J Snack Foods' iconic brands, including SUPERPRETZEL, ICEE and LUIGI'S Real Italian Ice, have been there for millions of moments of fun and togetherness. From family gatherings and birthdays to baseball games, cinemas and amusement parks, J&J Snack Foods brands have served up smiles, joy, and fun across the country for five decades.

"Consumers have enjoyed J&J Snack Food's iconic snacks, beverages, and frozen novelties for 50 years. A staple in great moments inside and outside of the home, our fun and innovative core brands like SUPERPRETZEL and ICEE have captured the hearts of millions," said Dan Fachner, President and Chief Executive Officer of J&J Snack Foods. "I am honored to be part of a legacy that has positively impacted so many people. We celebrate this 50-year milestone in honor of our fans, customers, and dedicated employees. We are excited to commemorate this golden anniversary with a year of celebratory events and look forward to serving up fun for another 50 years!"

J&J Snack Foods will host a celebratory gala recognizing founder Gerry Shreiber's legacy and will launch a series of employee appreciation events across the country, including visits from the company's branded 'snack mobile.' The company will also participate in the NASDAQ closing bell ceremony in New York early next year, followed by a media tour. Consumers and employees alike can expect more fun throughout the year and are encouraged to visit @jjsnackfoods on Instagram for exciting updates.

For more information, visit jjsnack.com.

About J&J Snack Foods Corp.

J&J Snack Foods Corp. (NASDAQ: JJSF) is a leader and innovator in the snack food industry, providing innovative, niche and affordable branded snack foods and beverages to foodservice and retail supermarket outlets. Manufactured and distributed nationwide, our principal products include SUPERPRETZEL, the #1 soft pretzel brand in the world, as well as internationally known ICEE and SLUSH PUPPIE frozen beverages, LUIGI'S Real Italian Ice, MINUTE MAID frozen ices, WHOLE FRUIT sorbet and frozen fruit bars, SOUR PATCH KIDS Flavored Ice Pops, Tio Pepe's & CALIFORNIA CHURROS, and THE FUNNEL CAKE FACTORY funnel cakes and several bakery brands within DADDY RAY'S, COUNTRY HOME BAKERS and HILL & VALLEY. With nearly twenty manufacturing facilities, and more than $1 billion in annual revenue, J&J Snack Foods Corp. has continued to see steady growth as a company, reaching record sales for 48 consecutive years. The company consistently seeks out opportunities to expand its unique niche market product offering while bringing smiles to families worldwide. For more information, please visit http://www.jjsnack.com.

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Sovos Brands' CEO finds success in embracing 'one-of-a-kind' disruptive products

https://www.fooddive.com/news/sovos-brands-ceo-finds-success-in-embracing-one-of-a-kind-disruptive-pro/607119/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202021-09-29%20Food%20Dive%20Newsletter%20%5Bissue:37016%5D&utm_term=Food%20Dive

The owner of offerings like Rao's and Noosa, which went public last week, has rapidly grown by touting high quality, clean-label ingredients.

In his nearly three decades in the CPG space, Todd Lachman saw firsthand as larger brands ceded sales and market share to smaller, on-trend products that prioritized being all natural and contained a shorter list of recognizable, better-for-you ingredients.

Sensing a lucrative business opportunity, the former Mars, Kraft Heinz and Del Monte executive founded Sovos Brands in 2017 to acquire and build "one-of-a-kind" disruptive brands specializing in premium offerings.

Now just four years later, that hunch is paying off. Sovos' portfolio of pasta sauce, pancake mix, yogurt and frozen Italian meals has turned the upstart into the fastest-growing food company of scale in the U.S. and given it confidence to launch its IPO last week in a deal valuing the young firm at more than $1.3 billion.

Sovos "is not your ... grandparents' roll up of dusty, rusty old assets that's beholden" to the past, Lachman said in an interview on Sept. 23, the day of the company's IPO. "We're really nimble, and we're going to be agile and entering the right categories that we can continue to deliver outsized growth in."

The Colorado company, which takes its name from the Latin word for "one of a kind," started out by acquiring two high-end Italian food brands: premium sauce brand Rao's Homemade and Michael Angelo's Gourmet Foods in 2017. Yogurt brand Noosa became a part of Sovos in 2018 and Birch Benders was added to the fold last year, with revenue rising 15% since the acquisition.

Lachman said Sovos, which priced its IPO at $12, decided now was the right time to go public in order to acquire talent, open up access to new forms of capital and add cash to its balance sheet for acquisitions.

"It's really the right time for a company like ours, which is pioneering a new approach to packaged food, to enter that arena," he said.

The company turned a profit in the fiscal year ending Dec. 26, 2020, with net income of $10.8 million on net sales of $560 million compared to a loss of $27.1 million on $388 million in sales during the prior year. Sovos benefited along with other CPGs from the upswing across the food space as consumers stockpiled ingredients to prepare meals at home during the COVID-19 pandemic, in many cases trading up to premium products.

So far, Sovos has thrived at finding and buying disruptor brands with opportunities to rehabilitate, grow and expand the parts of the grocery store where their products can be found. Despite making inroads, Sovos' four brands each have household penetration under 10%, giving the company an opportunity to increase awareness and tout its product attributes to consumers in an effort to grab market share.

Rao's — which has expanded under Sovos' ownership from sauces into dry pasta, frozen entrees and soups — is the No. 3 pasta and pizza sauce brand by dollar sales, according to the company, compared to No. 7 when it was acquired four years ago. The brand, which currently represents 55% of Sovos' sales, is planning to expand into pizza and salad dressings next year.

Noosa and Birch Benders also are among the fastest-growing brands in the yogurt and pancake and waffle mix categories. Similar to the strategy Sovos has employed with Rao's, it is considering moving Noosa into other products such as frozen novelties and ice cream. Birch Benders is entering baking mixes and frostings, with ready-to-eat baked goods, refrigerated baking and even spoonable yogurt other potential avenues for future expansion.

Acquisitions remain a key piece of Sovos' growth strategy, with Lachman predicting the company could "potentially average one a year going forward." He declined to outline what types of brands Sovos is looking to purchase, but said any deals would contain disruptive opportunities and likely be adjacent to categories it is already in.

"We're really looking for brands and entering categories that we believe can almost create a category in and of itself," he said, pointing to the success Sovos has had with Rao's with ingredients like fresh basil, onions, whole Italian tomatoes and olive oil; Noosa in indulgent yogurt; or Birch Benders in keto and paleo. "We know what we do well."

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Good point about food and inflatiion. Droughts can last for years and the current one in the West and North could affect food prices as well. Look at the map, them look at oates. Oates are grown heavily in norther west Miinesota and eastern Northe Dakota.

https://droughtmonitor.unl.edu/Maps/CompareTwoWeeks.aspx

https://finviz.com/futures_charts.ashx?t=ZO&p=m1

I hope RIBT is hedging their Oats, they own an Oat and barley Mill in that area. They have rice interests in California, but they weathered the bigger drought in 2014/5/6. RIBT got caught not hedging rice during the COVID quarenteen in June and July, 2020, when stores were running out of rice.. They had to not buy some rice as it would have been costly on ther contracts to sell their products. It cost the CEO his job. They did say they will be hedging. Keep an eye on RIBT daily in November. I hear "things", sometimes not right though, lol.

https://finviz.com/futures_charts.ashx?t=ZR&p=w1

My spell check is not working at iHub, sorry for my mistakes.

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One problem with the food stocks right now is the uptrend in inflation and its negative effect on earnings. I figure some of that could recede as the world economies slow, and the various supply chain disruptions ease, etc.

I always liked the defensive nature of the food sector, and the broader consumer staples in general. Stocks like Pepsico and Procter & Gamble you won't have to worry too much about. Also the flavor/fragrance area with stocks like McCormick.

Fwiw I got a little carried away with all these I-Hub boards, but here are the two broadest ones, covering all the main sectors. Haven't been updated in a while though -


https://investorshub.advfn.com/Best-Long-Term-Stock-Ideas-25585/


https://investorshub.advfn.com/Elite-Stocks-38031/

[wow_happens28]

I am sure I told you the following--- The big internet bear market from March 2000 to October 2002, fueled by massive speculation with internet stocks, the Nasdaq fell 66% and the S&P 500 lost 50%. I did a check on medium and large food stocks an in those same months, they rose like 2% plus dikvidends. I can't get a chart with CVGW going back that far, but JJSF did super. It did lose 1/3 of it's value the first few months, but ended up a double. I don't think I used JJSF in my sample, however. I think I would have remeerd a 2x in those years.

My point, food does offer some safety. CVGW might be a good buy here, even in the face of a majoe bear.

In the 1973 to 1974 bear, I remember the only NY exchange stock up was a fertilizer company, First Mississippi. I remeber that because the town I lived in then had a plant there. Anther disclaimer, I did not check out stocks for safety in the COVID crash.

https://finance.yahoo.com/quote/JJSF/chart?p=JJSF#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-

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>> CVGW <<


I had them on my long term buy/hold list for a long time, and it was a great stock. I'm not sure what happened, but it completely fell apart over the past several years. I should probably do a 'deep dive' on the company and find out exactly what happened.

Fwiw, I've been following Dr. Steve Gundry's recommendations ('Plant Paradox'), and eating one avocado/day for several years, so that may have jinxed the stock lol.

J+J Snack Food (JJSF) is another food stock that had been a stellar performer for many years, but got slammed due to Covid. I bought some last year and got some of the rebound. Seems like a solid long term holding, and junk food snacks will always be popular, for better or worse -


>>> J & J Snack Foods Corp. (JJSF) manufactures, markets, and distributes various nutritional snack foods and beverages to the food service and retail supermarket industries in the United States, Mexico, and Canada. It operates in three segments: Food Service, Retail Supermarkets, and Frozen Beverages. The company offers soft pretzels under the SUPERPRETZEL, PRETZEL FILLERS, PRETZELFILS, GOURMET TWISTS, MR. TWISTER, SOFT PRETZEL BITES, SOFTSTIX, SOFT PRETZEL BUNS, TEXAS TWIST, BAVARIAN BAKERY, SUPERPRETZEL BAVARIAN, NEW YORK PRETZEL, KIM & SCOTT'S GOURMET PRETZELS, SERIOUSLY TWISTED!, BRAUHAUS, AUNTIE ANNE'S, and LABRIOLA, as well as under the private labels. It also provides frozen juice treats and desserts under the LUIGI'S, WHOLE FRUIT, PHILLY SWIRL, SOUR PATCH, ICEE, and MINUTE MAID brands; churros under the TIO PEPE'S and CALIFORNIA CHURROS brands; and dough enrobed handheld products under the SUPREME STUFFERS and SWEET STUFFERS brands. In addition, the company offers bakery products, including biscuits, fig and fruit bars, cookies, breads, rolls, crumb, muffins, and donuts under the MRS. GOODCOOKIE, READI-BAKE, COUNTRY HOME, MARY B'S, DADDY RAY'S, and HILL & VALLEY brands, as well as under private labels; and frozen beverages under the ICEE, SLUSH PUPPIE, and PARROT ICE brands. J & J Snack Foods Corp. sells its products through a network of food brokers, independent sales distributors, and direct sales force. The company was founded in 1971 and is headquartered in Pennsauken, New Jersey. <<<

[wow_happens28]

I have not looked a CVGW since maybe 2009, looks like I missed a nice bull run. Nice article, worth a watch list. TY

https://finance.yahoo.com/quote/CVGW/chart?p=CVGW#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-

[gfp927z]

Calavo - >>> The Cautious Bridge to Investing, and Watching Calavo Growers

You can't live your life in fear as an investor, but you can take steps to protect yourself against the unforeseen.


By JONATHAN HELLER

Sep 14, 2021


https://realmoney.thestreet.com/investing/the-cautious-bridge-to-investing-and-watching-calavo-growers-15767620?puc=yahoo&cm_ven=YAHOO


Its good to be back in the saddle, after a week off for our eldest daughter's wedding. If there's one thing I learned this past weekend, it's that you have to expect the unexpected. Just hours before the wedding, the bridge to the island where it was held was shutdown due to a "suspicious package". That meant no one on or off until it was resolved, which could have made for a reception without any food, or many guests stuck on the other side of the bridge. Thankfully, it was resolved quickly, and all went as planned. Something like that happening was the furthest thing from my mind. I just wanted a great day of celebration, and to make it down the aisle without crying or stumbling.

That got me thinking about investing, and our propensity as investors, myself included, to not consider the worst case, the "black swan" event as it were. You can't live your life in fear as an investor, but you can take steps to protect yourself against the unforeseen. When it comes to company specific risk, position-sizing is huge. I've seen individuals, and managers, that have loaded up on a single name - one where they see so much upside that they become blind to what could go wrong. If and when the hammer drops it's too late. Too much portfolio concentration can make you rich, if you are right, but it can also bankrupt you if you are not. The pain of loss here is a lot greater than the euphoria of scoring big. You never know when the bridge to your island will be shut down.

Elsewhere, while catching up on the past week, I noticed what's been going on with avocado name Calavo Growers (CVGW) . Calavo is somewhat familiar due to its association with citrus name Limoneira (LMNR) . Calavo still packages and distributes LMNR's lemons, oranges and avocados, and owns a stake in the company. Until 2019, LMNR also had a stake in CVGW.

What caught my attention, is the fact that CVGW has been absolutely slammed this year. Shares hit $85 back in March, and closed Monday at $35.39, a seven-year low. Last Thursday shares endured a 17% hit following the release of third quarter earnings. It was likely not the quarterly results per se that caused the damage - revenue of $285 million beat consensus estimates by $6 million, while the 17-cent per share loss was a penny ahead - but rather what the company had to say about guidance. In fact, management is not providing near-term guidance due to "inflationary pressures" on raw materials. That was certainly not what the market wanted to hear, but it is the current reality, and you'll likely be hearing a lot more about inflation.

Ever the dumpster-diver, always on the lookout for situations where it appears that the market has over-punished a name, I am keeping an eye on CVGW, but am not yet convinced there's enough meat on the bone to take a stab at these levels. Shares trade at just under 23x next year's consensus estimates of $1.56/share. Just seven days ago, the consensus was at $2.46 and three months ago it was $2.81.

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[wow_happens28]

Natural and organic sales approaching $300 billion

https://www.foodbusinessnews.net/articles/19684-natural-and-organic-sales-approaching-300-billion

The natural products industry has the size, scale and influence to create positive impact for people and the planet, said Carlotta Mast, senior vice president at New Hope Network.

Sales of natural and organic products, including food and beverage, supplements, household and personal care categories, are on track to surpass $300 billion by 2023 and $400 billion by 2030, Ms. Mast said, citing Nutrition Business Journal estimates, during a presentation at Natural Products Expo East on Sept. 23 in Philadelphia.

Demand has eased from the spike that occurred in 2020, when consumers stockpiled groceries during the early pandemic period. Still, growth remains robust as consumer habits over the past year changed in favor of the natural products industry. Sales growth driven by the pandemic is expected to continue over the next three years as new consumers discover and buy more natural and organic brands, Ms. Mast said.

“People tried those new brands, and in many cases, they stuck with them, especially across the food and beverage categories,” she said. “In addition, health and wellness and supporting our immune health became top priorities for us during the pandemic, and this continues to also persist and help grow our industry in 2021.”

The dramatic shift to home cooking elevated demand for organic produce, dairy and packaged foods as more consumers began paying attention to how food is grown and produced, Ms. Mast said.

Sales of natural and organic foods grew three times faster than sales of conventional foods, said Kathryn Peters, executive vice president of business development at SPINS, a data technology company. The pandemic pushed consumers to seek foods with functional ingredients previously found only in the supplement aisle, Ms. Peters said, highlighting products containing apple cider vinegar, elderberry, moringa, collagen, super mushrooms and ashwagandha.

“It’s so exciting to see people realizing that your food can do more for you than just sustenance and really act as medicine,” she said.

Plant-based products continue a strong trajectory, with 12.8% growth over the past year while all of food and beverage grew 4.2%, Ms. Peters said.

“(Plant-based) is still on fire because people are increasingly understanding, ‘it’s good for my body, it’s good for the world,’” she said.

Ms. Mast and Ms. Peters, along with Nicolas McCoy, managing director and co-founder of Whipstitch Capital, discussed how the industry may harness the momentum to address social and environmental issues.

Mr. McCoy suggested broadening the definition of vital infrastructure to include education, health care, arable land and ocean. Investing in these key areas can accelerate progress in reducing poverty and incarceration, promoting income equality and protecting natural resources, he said.

“One paradigm that is important to change if we want to accelerate things is to stop looking at tax increases and charity to fund impact,” Mr. McCoy said.

Brands may take action to tackle climate change by partnering more closely with economically vulnerable farms and supporting conversion to more sustainable practices, Mr. McCoy said. Localizing production as much as possible will help reduce logistical costs and reduce carbon footprint.

Ms. Mast pointed to a lack of diversity in industry leadership that does not reflect the general population.

“We don’t have much representation of Black, Indigenous, Latinx and other people of color on our industry boards or within our industry leadership circles, and that’s increasingly going to be a challenge for our industry because how can we stay relevant to and serve an increasingly diverse consumer base if our leadership doesn’t reflect the needs and the behaviors and the desires of those consumers?” she said. “Our innovation will just not keep pace if we don’t actively work to nurture more diverse leadership in our industry, if we’re not really supporting those BIPOC-owned and -led brands in our industry.”

Businesses must invest in providing living wages, education and training and creating an inclusive culture, and retailers should ensure their aisles reflect all customers, she said.

“The ethnic and international aisle just doesn’t cut it anymore for where we’re heading as a country,” Ms. Mast said.

Investors should embrace and create space for new board talent and invest in diverse entrepreneurs, she added.

“We have to make sure that our practices and the way we’re investing in these companies really is fair and equitable and can, again, bring that diverse leadership we need for tomorrow,” she said.

[wow_happens28]

UN Food Systems Summit: Calls to fix broken food production

https://www.foodingredientsfirst.com/news/un-food-systems-summit-calls-to-fix-broken-food-production.html

aking place today is the UN Food Systems Summit in New York, US, focused on scaling food systems to ensure that everyone worldwide has access to sufficient nutrition.

The Summit is convening major influencers and stakeholders across the world to kick start bold new actions to progress the UN SDGs. The summit will seek to identify solutions and leaders, issuing a call for action at all levels of the food system.

“We need food systems transformation for a livable future. Current food production and consumption are jeopardizing our futures when they could be the very basis of nourishment, justice and sustainability,” stresses Lana Weidgenant, deputy director of This is Zero Hour, Action Track 2 Youth Vice-chair, and youth leader at Act4Food Act4Change.

Decoupling protein production from agriculture
Ahead of the summit, David Henstrom, CEO, Unibio, the sustainable protein company that uses microbial fermentation to convert natural gas, including bio-gas, into high quality and sustainable protein for fish and animal feed, shares his views on the importance of innovative solutions able to effectively tackle the ever-increasing issue of global protein scarcity.

“Global population is projected to reach ten billion by 2050, with a growing middle class turbocharging demand for protein,” he stresses. “Global production of protein will need to increase by 70% of today’s availability to feed the population.”


Unibio uses a natural microbial fermentation process to produce protein from natural gas or biogas.
“However, this growing global demand, in particular for meat, is heavily challenged by ecological and climate constraints,” he continues. “Global biodiversity is currently under threat from overfishing and deforestation associated with more traditional processes of protein production for animal feed.”

“The current pressure on vital ecosystems is unsustainable. The requirement for alternative and sustainable forms of protein is therefore significant.”

Protein from natural gas and biogas
Unibio has developed a proprietary continuous-flow fermentation process that decouples protein production from agriculture and fishing to produce a sustainable protein product – Uniprotein - for use in fish and animal feed. It uses a natural microbial fermentation process to produce this ingredient from natural gas or biogas.

“We believe that innovative solutions and products will be essential if the world is to meet the challenge of sustainably feeding global populations and meet the targets of the UN Sustainable Development Goals,” says Henstrom.

Non-animal-based ingredient launches have recently expanded to include the world’s first milk made from sprouted millets, functional mung-bean protein, mycoprotein-based chicken and fish, and a fat ingredient made from oleaginous yeast for use in alt-dairy.

Notably, plant-based sales are soaring, especially in Asia, the US and Europe, with increasing investment in more sophisticated meat alternatives – such as plant-based fillet mignon – as a growing number of companies try to obtain a share of this fast-paced market.

World Food Forum
Shortly after the UN Food Systems Summit, the youth led World Food Forum (WFF) will host its first flagship event in Rome, Italy, on October 1 to 5, bringing together people from diverse sectors around the world to galvanize global action following up to the Summit.

The Forum features many youth leaders from the agricultural sector. They will be joined by influencers, celebrities, business and civil society leaders.

Participants from the private sector include Ramon Laguarta, CEO of PepsiCo, Kimbal Musk, Co-Founder and Chairman of Big Green, The Kitchen Restaurant Group and Square Roots, and Frank Giustra, Co-Chair of the International Crisis Group.

By Benjamin Ferrer