Category: food

ORLANDO, FLA. — The Hershey Co. partnered with Vitakey, a company specializing in precision nutrient delivery technology, to enhance food and beverages by increasing the nutrient stability and density of products. 

“I am very excited to announce a partnership that we have with Vitakey, leveraging their technology to create a suite of health and wellness products,” said Michele Buck, chairman and chief executive officer of Hershey. “We are responding to the fact that health and wellness has distinct consumer needs, and we are standing up pillars to meet various of those needs. You can see that with our portfolio, with areas that have protein, areas that are zero sugar, etc. We also are investing in R&D and new technology to enhance macros and the consumer experience, including our focus on sugar free and on protein snacking.”

Buck didn’t specify what kinds of products Hershey and Vitakey would be developing together or identify a timeline for when those product might be available to consumers.

The announcement was made at the annual CAGNY Conference in Orlando, where analysts, investors and corporate executives gather to discuss consumer goods — many of those executives representing food and beverage companies.

Hershey recently announced its 2024 fourth-quarter results. The company’s full-year 2024 results included $11.2 billion in net sales — an increase of 0.3% from fiscal 2023 — while net income was $2.22 billion, equal to $10.92 per share on the common stock, an increase of 21% compared with last year. Adjusted earnings per share were $9.37, a decrease of 2.3% versus 2023.

IRVINE, CALIF. — On Feb. 20, Nutraland USA Inc., a provider of plant- and science-based ingredients, announced it has joined the National Animal Supplement Council (NASC) as a Preferred Supplier. According to Nutraland, this designation recognizes its dedication to ingredient quality, safety and efficacy for the animal nutrition industry.

The NASC is a nonprofit organization that promotes the responsible manufacturing and marketing of animal supplements, including those for dogs and cats. Its Preferred Supplier program pre-qualifies vendors that meet stringent standards in safety and efficacy, serving as a resource for member companies to find suppliers for their supplement products. 

As an NASC Preferred Supplier, Nutraland has undergone rigorous scrutiny to ensure compliance with Good Manufacturing Practices (cGMPs). This included assessments of the company’s manufacturing processes, quality control procedures and sourcing. 

“We are thrilled to join the NASC as a Preferred Supplier,” said Sanying Xu, president of Nutraland USA. “This recognition reaffirms our dedication to providing science-backed, all-natural ingredients that support the health and wellbeing of both pets and people worldwide. As a leader in plant-based nutrition, we take pride in delivering safe, effective and high-quality solutions trusted in both human and animal formulations.”

Bill Bookout, president of the NASC, added, “We are pleased to welcome Nutraland USA, Inc. as a Preferred Supplier Member of NASC. Their commitment to innovation, quality and transparency aligns well with the NASC mission and their decision to join NASC reinforces their dedication to supporting animal health and wellness with high-quality ingredients that meet rigorous compliance standards. We look forward to a strong partnership with Nutraland USA that benefits both NASC members and the broader pet supplement industry.”

Read more news from pet food and treat industry suppliers.

WASHINGTON — The Pet Food Institute (PFI) recently issued a statement expressing its concern surrounding highly pathogenic avian influenza (HPAI) following numerous reports of cats becoming ill or dying due to consumption of ingredients with detections of HPAI or H5N1. According to PFI, amid these major outbreaks of HPAI, pet food makers remain committed to ensuring safe pet food for the pets of the United States. 

“Pet food makers love animals, and the safety of pet food is their highest priority,” said Dana Brooks, president and chief executive officer of PFI. “They recognize the risks to pets that are associated with HPAI and they have strict processes in place to mitigate those risks. In response to the HPAI outbreak, US pet food makers are revisiting the food safety plans that are already being closely followed throughout the production of pet food, ensuring that they are continuing to carefully monitor for foodborne pathogens in cat and dog food.”

According to PFI, US pet food producers are complying with all regulatory requirements, including a recent update from the FDA that requires manufacturers to reanalyze their food safety plans to include HPAI as a potential hazard. Further explaining, PFI states that pet food makers adhere to the highest standards regarding quality and safety, and the ingredients used in pet food always undergo rigorous testing and quality assurance processes.

“Pet food makers are implementing supply chain controls and are actively engaging with suppliers of eggs and poultry products that are used in making nutritious pet food to both ensure that ingredients are not coming from HPAI-infected animals, and to identify ways to further alleviate risk,” Brooks added.

The FDA recently released some guidance for safe pet feeding practices, stating that, “H5N1 can be deadly to cats, as well as dogs, so we encourage consumers to carefully consider the risk of this emerging pathogen before feeding their pets uncooked meat or an uncooked pet food product.” 

It isn’t just the FDA warning against raw diets, both the US Centers for Disease Control and Prevention (CDC) and the American Veterinary Medical Association (AVMA) discourage the feeding of uncooked meat diets to companion animals due to the potential presence of pathogens, including HPAI.

Dry and heat-treated pet food is still deemed safe, as the Global Alliance of Pet Food Associations (GAPFA) has reaffirmed the safe trade of extruded dry pet food and heat-treated poultry based on the World Organization for Animal Health’s (WOAH) Terrestrial animal Health Code. 

As HPAI poses serious risk to pets, especially to cats, PFI recommends that pet owners keep their cats and dogs indoors as much as possible to prevent exposure to birds and other wildlife. PFI also urges pet owners to adhere to their own food safety guidelines at home, including washing hands and cleaning surfaces thoroughly after handling pet food or poultry.

Read more about pet food safety on our Operations page.

ORLANDO, FLA. — PepsiCo, Inc. plans to evolve its portfolio to add more value, manufacture healthier options, and create more availability for consumers to purchase its products throughout the day in a strategy outlined by the company at this year’s CAGNY Conference.

“We’re a great sales company, but we’re trying to also refresh our iconic offerings and working hard at sodium reduction, fat reduction,” said Ramon Laguarta, chief executive officer and chairman of the board, PepsiCo. “We’re working hard at the removal of artificials so that we give consumers the same great experience, now better. Just an example, I don’t know if you saw our Super Bowl commercial with Lays. We’re trying to anchor Lays in what it is: real potatoes that are grown and consumers can have simple pleasures in a very authentic way. Now those Lays have 20% less sodium than they had two years ago, and consumers are accepting that very well.”

The company also is incorporating alternative cooking methods like baking and popping for potato products to reduce oil usage. Laguarta also mentioned Frito Lay’s Simply line of snacks is relaunching this year, which takes core brands like Doritos and Cheetos, and adds functional and natural ingredients like whole grains for additional fiber, uses cheese, and eliminates artificial colors and flavors.

“Refreshing our iconics with great taste and better-for-you ingredients is core to our strategy,” he said. “We continue to evolve not only our core offerings, but we continue to offer consumers new offerings that keep consumers in the category, increase the frequency of consumption of our categories.”

Convenience and customization

He said one way to keep consumers coming back to PepsiCo products is through price pack architecture for cost value and convenience, which is another area the company is focused on in 2025.

“The multipack business in the US is already a $4.5 billion dollar business,” Laguarta said. “Five years ago, it was less than a billion dollars. We see consumers adopting multipacks and small portions as the go-to solution to have our categories throughout the day. At the same time, we’re providing consumers with different alternatives like mini-canisters and mini-beverages that also help consumers with convenience and portion control. This will be a driver for us long term from the price point, from the combination, and from enabling the consumer to create their own multipacks through direct-to-consumer options.”

Laguarta added that direct-to-consumer customization is “a big strategic lever for us, and we now have the capability to automate multipacks to have endless combinations of multipacks, and that will be a solution for the future. The same with small canisters and large canisters.”

Also on the topic of customization is the company’s Gatorade and Propel brands, which Laguarta said are well positioned for growth in the functional hydration category.

“We have invested in an infrastructure for powders and mixing that allows us to create much more complex solutions in sachets and tablets, and we’re going to invest massively behind that business,” he said. “It is now a billion-dollar business in the US, our Gatorade and Propel powders, and this will be a driver of growth for us. We can provide much more functionality in every sachet.”

Away-from-home concepts

Laguarta said the company also is evolving its culinary and away-from-home options that incorporate PepsiCo products, opening additional occasions for consumers to interact and eat those foods outside of snack occasions.

“We’ve talked a few times how we’re thinking about our brands participating in meals throughout the day, and we’ve been inspiring consumers around the world to use our products in meal locations,” he said.

Some examples Laguarta mentioned were Lays chips being added to rice bowls in Asia; potato omelets in southern Europe that incorporate Lays at the company’s La Tortilleria locations; Tostitos Tostianguis carts in Mexico, where consumers can build their own Tostitos-based meals; Doritos Loaded food trucks at US universities; and the new Drips, which is a mobile, walk-up beverage concept where Pepsi products can be mixed with other ingredients for customized drinks.  

“You can see how we’re evolving and participating in meals, but also giving consumers the opportunity to buy more elevated experiences of our products throughout the day,” Laguarta said.

PepsiCo’s operating profit declined in all three North American business units — FLNA (Frito Lay North America), Quaker Foods North America and PepsiCo Beverages North America — in the year ended Dec. 28, 2024. The company’s net income of $9.58 billion, equal to $6.95 per share on the common stock, was up 6% from $9.07 billion, or $6.56 per share, in the previous fiscal year.

ORLANDO — Executives of Kraft Heinz Co. continue to lean into innovation as the most promising avenue for success at the company, even as sales of existing core product lines remain weak and as overall sales are projected to give ground again in 2025.

Updating investment analysts on wide ranging innovation initiatives was the focus of a presentation Feb. 18 by Carlos Abrams-Rivera, president and chief executive officer of Kraft Heinz. The weakness in sales volume, particularly in North America, that was the primary drag on the company’s financial results in 2024, was absent from Abrams-Rivera’s remarks.

The company’s base for growth is a powerful one, Abrams-Rivera said during CAGNY Conference 2025.

“Within the US, we have household penetration of 96%, with eight brands representing approximately 60% of our business globally,” he said.

While the company enjoys “universally high awareness,” its global penetration is only 19%, lagging the 30% threshold Abrams-Rivera called the benchmark for “similar iconic brands.”

Updating the analysts on the company’s Accelerate platforms, categories Kraft Heinz views as especially promising, Abrams-Rivera offered examples of innovation in each of three platforms — taste elevation, easy-ready meals and substantial snacking.

Calling Heinz Pickle Ketchup introduced in 2023 a “huge success” for its taste elevation platform with 50% incrementality to the category, Abrams-Rivera said the product is now being rolled out across four continents.

In easy-ready meals, he said the company is “expanding the use of occasion flavors” with Kraft Mac & Cheese. He also highlighted a partnership with Nintendo and the introduction of Super Mario shapes, in connection with the Super Mario Brothers Movie.

The company also is looking for ways to meet the needs of consumers watching their budgets, Abrams-Rivera said.

“We are redefining convenience and value by delivering solutions in the right sizes and formats, making it easier for consumers to feed their families,” he said. “For example, our value-sized Kraft Mac & Cheese provide a lower price per ounce and 50% more cheesy goodness than the standard-sized blue box.”

Lunchables Spicy Nachos were cited by Abrams-Rivera as an example of Kraft Heinz’s efforts to bring excitement and heat to consumers through its substantial snacking category, with products meant to be enjoyed between meals or instead of a meal.

“We are improving our product performance by renovating an Oscar Mayer Bites with elevated graphics highlighting 15 grams of protein and adding a new premium cracker,” he said.

Details of new Oscar Mayer packaging first previewed last year also were shared by Abrams-Rivera. The packaging, which he said improves “sealability” and reduces plastic by 30% is rolling out now and will launch nationally in April, he said. The product uses 50% less plastic than competitive products, he added.

“We have achieved a major win for both our consumers and the environment by innovating our packaging without passing any additional cost to our consumers,” Abrams-Rivera said.

Both Abrams-Rivera and Andre Maciel, executive vice president and chief financial officer, emphasized cost cutting steps the company has taken and the way these actions are helping boost gross margins at Kraft Heinz.

“In 2024, we generated gross savings equal to 4.4% of COGS (cost of goods sold), which is best in class,” Abrams-Rivera said. “We expanded gross profit margin by 1 percentage point as we protected profitability and generated a 4 percentage point increase in free cash flow conversion, and we reinvested in marketing and innovation.”

Maciel projected that, excluding the effects of cost inflation, prices in North America are expected to be lower in 2025 than 2024.

“Keep in mind that gross margin expansion from unlocking efficiencies is expected to more than offset inflation and the incremental investments in price, resulting in a flat to slightly positive year-over-year adjusted gross profit margin,” he said.

He cautioned that gross margin is expected to be tighter in the first half of the year than the second.

WASHINGTON — The Pet Food Institute (PFI) announced the addition of Allyson Baros-Kabler as its new coordinator of communications and membership. In her new role, Baros-Kabler will coordinate and execute communications strategies and also work with the institute’s members and partners to amplify the industry’s work and advocate for processor challenges.

“We are excited to add Allyson Baros-Kabler to our team, and I am eager to see how she contributes to PFI’s work to support our members and the wellbeing of the pets we love,” said Dana Brooks, president and chief executive officer of PFI.

Baros-Kabler brings three years of experience on Capitol Hill, having worked in the offices of several US Congress representatives. She has a passion for policies relating to animals and agriculture. Baros-Kabler has a master’s degree in political management from George Washington University and a bachelor’s degree in political science from Florida State University. 

Read more about personnel changes throughout the industry.

MORTON GROVE, ILL. — Fermented dairy manufacturer Lifeway Foods, Inc. extended the distribution reach for its premium cultured soft cheese.

The company shared that Lifeway Farmer Cheese now may be purchased in an additional 1,400 Albertsons retail locations, calling the distribution growth a “significant” step forward as it aims to introduce the product to new consumers.

Lifeway said it produces its Farmer Cheese in small batches, using an artisanal recipe. The company described the cheese’s flavor and texture as similar to blended cottage cheese, adding that it spreads like cream cheese. Plus, Lifeway makes Farmer Cheese with 12 live and active probiotics, and the product contains 15 grams of protein per serving. The company said it is “up to 99% lactose-free,” as well as gluten-free, and it contains no added salt.

Julie Smolyansky, president and chief executive officer at Lifeway, said demand for high protein and probiotic foods is “soaring,” and the company was thrilled to expand distribution for its Farmer Cheese through Albertsons.

“Farmer Cheese is one of our cult favorite products that we’ve offered since Lifeway’s inception, and it only continues to grow in popularity thanks to its delicious flavor and incredible benefits,” Smolyansky said. “We’ve seen increased interest thanks to popular social posts from amazing farmer cheese advocates like Bethenny Frankel and viral recipes using blended cottage cheese. Farmer cheese saves a step for everyone seeking an elevated cottage cheese upgrade with a smooth consistency, bioavailable protein and probiotic benefits.”

CHICAGO — International snack and food manufacturer Mars, Incorporated, partnered with its longtime dairy supplier Fonterra to launch a sustainability-focused program designed to help dairy farmers reduce emissions.

Mars announced it pledged $27 million for its Farmer Forward Program, a five-year investment the company said it will utilize to cut greenhouse gas (GHG) emissions through climate-smart agriculture practices.

The program calls for roughly half of the investment going toward on-farm tools and technology for approximately 2,000 Fonterra dairy farmers. Mars also shared that the rest of the funds will be used as cash incentives, going directly to “about 165 farmers each year who make the most progress against sustainability goals, in amounts of up to [$15,000], on average, per farmer annually.”

Mars identified dairy as its fourth-largest carbon footprint contributor and said it can only reach its sustainability objectives with the help of dairy farmers. It called the program a crucial component of its goals to cut GHG emissions by 50% by 2030 (against a 2015 baseline) and achieve Net Zero by 2050.

Data shared by Mars detailed how the Farmer Forward Program covers 26,000 hectares of farmland, and the dairy production involved could theoretically produce enough milk to make 20 billion Snickers bars every year.

The partnership with Fonterra aims to cut a projected 150,000 metric tons of Mars’ scope 3 emissions from dairy by 2030, compared to a 2015 baseline.

Mars Snacking chief R&D, procurement and sustainability officer Amanda Davies said dairy farmers are on the front line of advancing climate-smart agriculture.

“Through this initiative, we’re investing roughly $27 million in Fonterra farming families over the next five years to deliver critical financial support and significant emissions reductions,” Davies said. “It’s a true win-win, because we know making dairy more sustainable takes real effort and real investment.”

Per Mars, 200,000-plus dairy cows produce the milk used in the company’s confectionery brands, such as M&M’s and Snickers. The company said raw ingredients account for 65% of total GHG emissions from its snacking portfolio.

Fonterra director of sustainability Charlotte Rutherford said the dairy manufacturer shares with Mars a commitment to protecting the environment.

“Fonterra and Mars have been working together for decades, with sustainability really taking a front seat in recent years,” Rutherford said. “Fonterra has clear ambitions when it comes to climate, and it’s through partnerships like this with Mars that we can support our farmer owners with achieving our targets.”

WASHINGTON — Representatives Tracey Mann (R-Kan.) and Steve Womack (R-Ark.) rolled out new legislation that, if passed, would prevent the US Department of Agriculture (USDA) from carrying out its proposed Salmonella rule.

The agency developed its Salmonella framework in July, which was intended to reduce the pathogen’s presence in raw poultry products. Through the new rule, protocols would be instilled to keep the final product’s Salmonella levels below 10 colony-forming units, and any detectable Salmonella serotype of public health significance would be prohibited from entering commerce.

Critics of the framework have noted that data from USDA shows Salmonella outbreaks have decreased 60% since 2020 and that more than 97% of whole chicken have tested negative for Salmonella as recently as 2022.

Womack, chairman of the Congressional Chicken Caucus, and Mann, chairman of the House Agriculture Committee’s Subcommittee on Livestock, Dairy and Poultry, introduced their legislation as a protection for poultry producers, whom the congressmen believe could be put out of business as a result of the rule.

“My bill blocks USDA from using taxpayer dollars to implement arbitrary science to burden American families, and it protects America’s livestock producers who work day in and day out to feed a hungry world,” Mann said. 

Another protection intended through the bill is against rising costs that may face consumers as the USDA framework is implemented.

“The Biden administration’s proposed Salmonella framework places burdensome, unnecessary testing requirements on our nation’s poultry producers,” Womack said. “This leads to higher costs at the grocery store for consumers.”

The National Chicken Council (NCC) voiced support for the bill. NCC has been one of the several groups to have requested extensions on the comment period for the proposed Salmonella rule.

For more regulatory news affecting the pet food market, visit our Regulatory page.

MORTON GROVE, ILL. — Lifeway Foods, Inc., a manufacturer of fermented dairy products, said it expects to realize approximately $5 million in net profit following the recent sale of Simple Mills to Flowers Foods, Inc.

Lifeway, which was an early investor in Simple Mills in 2015, said it previously realized a $1.5 million gain on the investment back in 2019. With the most recent sale, Lifeway said it expects total net proceeds from its investment in Simple Mills of approximately $6.5 million.

“We extend our congratulations to Simple Mills and its CEO Katlin Smith for its successful exit based on the impending $795 million acquisition by Flowers Foods,” said Julie Smolyansky, chief executive officer of Lifeway. “When we first invested in Simple Mills, we saw the potential growth of the company and we are delighted that Lifeway’s shareholders will benefit from our early investment.”

The acquisition of Simple Mills is subject to regulatory approval and is projected to close during the first quarter of 2025. The transaction was first announced in early January.