Uber-Successful Foodstirs is Making an Impact Far Away from the Baking Aisle

 Max Goldberg  December 19, 2017

(From l. to r., the founders of Foodstirs — Galit Laibow, Sarah Michelle Gellar, Greg Fleishman)

Within the last 12 months, organic baking start-up Foodstirs has quickly and firmly established itself as one of the hottest brands in the industry today.

While it is undeniable that having a Hollywood celebrity as a co-founder has helped attract tremendous media attention and opened many doors, Foodstirs is leading the marketplace because it has delivered a top-notch product line to a category that was ripe for innovation. With proven entrepreneur Galit Laibow as CEO, long-time industry veteran and brand-building guru Greg Fleishman as COO, and marketing standout Sarah Michelle Gellar as Chief Creative Officer, the company’s intentions were clear from the very beginning.

“Foodstirs is about the power of baking, and we wanted to help create an experience that allows families to connect with each other in an easy and convenient way. Our product is empowering them to do this,” said Greg Fleishman.

With legacy brands owning about 80% of the baking space, many consumers were not participating in the category because the dominant companies were failing to offer products perceived to be “clean.” As such, when Foodstirs decided to enter the market, not only did the company insist that its ingredients be organic but that they had to be some of the best in the world, in both taste and social impact.

And when you’re talking the best in organic, that usually means sourcing Biodynamic® ingredients. Biodynamic is often referred to as “beyond organic” and utilizes regenerative practices that treat the farm as a living organism.

By partnering with organic sweetener vendor Wholesome, the company was able to secure a Biodynamic sugar so pure that it is able to use less of it in its products versus regular cane sugar. Furthermore, Foodstirs’ ability to purchase in significant quantities has been of real consequence.

“In a very quick period of time, Foodstirs has become one of the largest brands in the U.S., in terms of distribution outlets, to use Biodynamic ingredients. This has given Biodynamic invaluable exposure to consumers. Additionally, Foodstirs donated $10,000 to help educate farmers interested in transitioning their farms to Biodynamic. The company’s generosity and leadership have been truly amazing, ” said Elizabeth Candelario, Managing Director at Demeter U.S.A., the certification agency of Biodynamic.

When it came to selecting its cacao, the company could have done what many others do — purchase from a U.S.-based superfood distributor. However, Foodstirs opted for a different path, one that would have maximum impact.

Foodstirs sought out the most sustainable cacao available and ended up connecting with the biggest fair trade supplier in South America. By working directly with the farmers, the company helped them get SPP-certified, which means that they will get paid more on a per pound basis and that labor conditions and wages will be fair.

According to Galit Laibow, “We went direct to the source and are using certifications that are as elevated as possible. Aside from entering into long-term purchasing agreements with the farmers, which gives them economic stability and predictability in the years to come, we subsidized the purchase of solar light bulbs, hoes, and pickaxes. These are things that we may take for granted but are incredibly important to the workers’ livelihoods.”

Environmental concerns were a big factor when deciding to use identity preserve flour for the company’s products. While many brands use wheat flour from many different farms, which can lead to allergies and contamination, Foodstirs is using a soft, white winter flour that can be traced directly back to that one farm. This flour also uses 1/3rd of the water and is grown without tillage, which is better for soil health.

Having expanded from 450 retail outlets to over 8,000 within the last year is a monumental achievement for any organic food company. But with its meticulous sourcing of ingredients, an accessible price point of $5.99, and an easy-to-make product that takes 25 minutes, Foodstirs’ explosive growth is sheer validation that the company’s offering is resonating with consumers.

“From the start, we set out to do the opposite of what Big Food is doing. We wanted to breathe new life into the category and introduce alternative recipes, such as turning pancakes into turmeric bites. While we don’t take ourselves too seriously, we are also continually asking ourselves how our product can help people, farmers and the planet,” said Galit Laibow.

Without question, this intentional approach to building an organic baking business is clearly working.

And it’s also making a very meaningful difference in the world.

(CEO Galit Laibow with her daughter Shai)

(Sunday stacks pancake mix)

(S’mores cookie bars)

(Pumpkin spice latte pancake bites)

(Vegan butternut squash brownies)

—

Shoppers can expect more change in Chicago’s grocery stores in 2018

Doug Cygan, president of Jewel-Osco, has overseen remodeling of most the grocery chain’s stores, as it competes in an industry where it’s getting tougher to keep customers. (Stacey Wescott / Chicago Tribune)

Greg TrotterContact ReporterChicago Tribune

Walking the grocery aisles with Jewel-Osco President Doug Cygan offers a glimpse at how changing consumer tastes have altered grocery stores.

In the center aisles — where sales have stagnated or declined in recent years for many retailers — Jewel-Osco has overhauled its product assortment and bolstered natural and organic offerings, Cygan said. Square feet devoted to frozen food has diminished, while floor space for myriad beer, wine and liquor options has grown.

And water, as Cygan puts it, is on fire. What used to be 4 feet of shelf space now consumes most of an aisle of both sparkling and nonsparkling waters.

“And this stuff all sells,” Cygan said, staring down the Deerfield Jewel’s water aisle. “That’s what the people want. That’s what you give ’em.”

It’s change or die in the hypercompetitive grocery industry, as retailers try to keep up with customers who demand fresher food, a better in-store experience and delivery or pickup options. In the year ahead, industry experts expect those trends to continue, even as the pace of store openings slows. And much of the growth from large chains is likely to come from those that operate smaller discount stores like Aldi, which is planning six store openings in 2018 , including stores in Naperville, Elk Grove Village and Downers Grove.

By comparison, Jewel is planning on opening two stores in 2018, in the Woodlawn neighborhood on the South Side and in northwest suburban Huntley. Mariano’s, meanwhile, will open one in suburban Crystal Lake. Both companies say they’ll largely be focused on remodeling existing stores in the year ahead.

The problem for chains like Jewel and Mariano’s is that shoppers are increasingly buying their groceries from more than one store, said Dan Tausk, a principal at Oakbrook Terrace-based retail brokerage Mid-American Real Estate Group. That means grocery dollars are splintered among a wide variety of formats including upscale grocers, discounters, dollar stores and drugstores.

“If you are not able to fit into special niches and still trying to be all things to all people — to me, that’s the most vulnerable,” said Tausk, who writes a biannual report on Chicago’s grocery industry.

“To me, Jewel has done all the necessary things to survive as a middle market, one-stop-shop for consumers,” Tausk said.

The sushi bar inside the Park Ridge Mariano’s store. Mariano’s is known for its prepared food offerings, while rival Jewel is investing in grocery delivery. (Jillian Shkolnick / Handout)

In the past five years, the Albertsons-owned company has remodeled 140 of its 187 stores, expanded produce and deli offerings, and put more emphasis throughout the store on fresh food, Cygan said. In the year ahead, Jewel plans to remodel another 20 stores.

And last year, Albertsons rolled out delivery from Jewel-Osco stores and acquired Plated, a meal kit startup.

Mariano’s also continues to evolve since its parent company, Roundy’s, was acquired by Kroger for $800 million in 2015.

Since that acquisition, Kroger has largely left Mariano’s to make its own decisions, said Don Rosanova, Mariano’s president.

But Mariano’s — best known for its prepared food offerings on the perimeters of the store — has availed itself of some of Kroger’s infrastructure to grow the business. Last year, the 43-store chain opened its first Mariano’s-branded gas station outside the new Lombard store. Mariano’s shoppers can earn fuel discounts by racking up reward points buying groceries, Rosanova said.

Expect more of that in the years to come. The company is planning its second gas station outside the new Crystal Lake store opening later this year and will look to add fuel to existing suburban locations in 2018 and 2019, including Lake Zurich, Oak Lawn and possibly Frankfort.

Mariano’s is also phasing in some of Kroger’s store brands to replace existing Mariano’s store brands, Rosanova said. For example, most Roundy’s Simply Organic products have been replaced by Kroger’s Simple Truth brand. And in some locations, such as the new Bannockburn store, the chain is testing whether Starbucks performs better than Vero Coffee, Mariano’s original in-store coffee concept, he said.

Despite such changes, Rosanova said, Mariano’s remains committed to its distinct in-store experience and is placing even more focus on convenience throughout the store.

“I’m responsible for protecting the Mariano’s brand,” Rosanova said. “We’re not going to do anything to jeopardize what we’ve established for the last seven years.”

An Aldi store opened in North Center in May. The chain plans to open more locations in Chicagoland. (Kristen Norman / Chicago Tribune)

Meanwhile, Aldi just keeps growing and changing. Beyond the six store openings, Aldi plans to remodel 30 stores, making them brighter, more contemporary and, in some cases, larger. It’s part of a broader initiative to remodel 130 of its 150 Chicago-area stores by 2020.

“We look forward to continuing to grow our Chicagoland presence in 2018 and the years ahead,” said Heather Moore, Aldi division vice president.

Some questions for Chicago’s grocery landscape remain unanswered for now. Whole Foods Market, acquired by Amazon last summer, declined to comment for this story. On the other end of the price spectrum, Dollar General, a fast-growing retailer that’s mostly flourished in rural settings, said it would open its 28th Chicago area store in the Roseland neighborhood early this year, but otherwise declined to comment on its plans.

“I do think we’re going to see more dollar stores in the Chicago area and they’ll be selling more food than ever before,” said Jon Hauptman, a senior director of retail for grocery consulting firm Willard Bishop.

And of course, nearly all retailers will be working to grow their delivery and pickup options for customers this year. Both Jewel and Mariano’s launched their respective e-commerce services last year.

Pickup could emerge as the better option for both shoppers and retailers, though, said Jared Koerten, lead analyst at Euromonitor International.

“It’s a lot easier. The last mile in terms of delivering perishables continues to be a big challenge for grocery stores,” Koerten said.

FoodNavigator-USA’s 10 food and beverage trends to watch in 2018

22-Dec-2017 By Elaine Watson

2017 has been a rollercoaster ride for the food industry, with Amazon coughing up a cool $13.7bn for Whole Foods, a flurry of M&A activity from Nestlé, Hershey, Campbell Soup and Kellogg, and an exodus from the industry’s biggest trade association, reflecting what one commentator described as a ‘breakdown in consensus.’ But what does 2018 have in store?

HTTPS://WWW.FOODNAVIGATOR-USA.COM/ARTICLE/2017/12/22/FOODNAVIGATOR-USA-S-10-FOOD-AND-BEVERAGE-TRENDS-TO-WATCH-IN-2018 

2017 grocery retail refresh: Why Kroger, Lidl, and Walmart will have a bigger impact than you think

December 18, 2017; 00:01 am by Bill Bishop

2017 was an action-packed year for changes in grocery retail.  Amazon got much of the air time, but three other events will likely have far more profound impacts on the future of food retailing: Lidl's entry energizes Aldi, Kroger’s embrace of data and science, and Walmart’s vision for “storeless” retailing. Don’t underestimate how these three changes will accelerate the challenges to old habits and paths to growth.  

The good news is that every retailer and consumer packaged goods company has the opportunity to “go to school” on these areas so they’ll have a solid foundation for visualizing what they want to be in the future.

Time to refresh and put the big 2017 changes into context

Here are the three big events and what's next.

1. Energizing discounter competition

Lidl’s entry into the US market

The opening of the first Lidl stores in the US generated mixed reaction, but their arrival has already triggered a major impact:  It prompted Aldi, the “original” German hard discounter, to make a five-billion-dollar commitment to open new stores and remodel existing ones. The next-round impact of the duel between Aldi and Lidl expands the appeal of the hard discounters to a broader range of shoppers and more than doubles their market share.

This hard-discounter super duo brings new merchandising and operating practices and proves that:

• It is possible to meet the needs of a growing number of households with stores that are considerably smaller than the typical supermarket and carry only a fraction of the products.
• Consumers are attracted to “next generation” private label products that, unlike the current generation, offer innovation and high quality in addition to cost savings.
• A distribution and operating model built for efficiency will significantly generate high sales per square foot and minimize labor costs.

WHAT’S NEXT? The growing presence of hard discounters in North American markets makes it difficult for traditional retailers and CPG brands to grow and will ultimately force business practice changes for traditional retailers and consumer brands.

2. Moving to the new era of smart retailing

Kroger embraces “Data and Science” to serve customers better

Kroger’s launch of its Restock plan – which is based on using data, analytics, and research to increase the return on assets – is the first time a major grocery retailer has boldly moved to drive business improvement on facts versus intuition and experience.

Retailers and consumer products companies will want to watch how Kroger applies advanced analytics to improve profitability by:

• Optimizing shelf space to make the assortment more closely match customer needs in a given market, and reducing the number of products that need to be subsidized to achieve category profitability. 
• Improving promotional effectiveness by pricing all promoted items with consideration for the way each affects the rest of the business, i.e. how much the promotion encourages – or discourages – the purchase of other products.
• Personalizing communications.  Kroger’s goal is to use analytics to optimize personal communications/promotion plans to reflect how each household uses different media – both traditional and online – so that the customer is getting the message the way they want to get it.

WHAT’S NEXT? Advanced analytics, especially artificial intelligence, will enable breakthrough applications that usher in a new era of smart retailing that improves profitability by better aligning the retailer’s offer with customer preferences. Long term, retailers will broaden their use of analytics to improve other dimensions of business performance.

3. Exploring “storeless retailing”

Walmart pushes the conversation to the next level

As households shift more of their grocery buying/spending online, retailers are looking ways to make for delivery more efficient, and consumers are looking for more secure and easier ways to take the hassle out of receiving an order.  This is not easy to do, but that could change.

The patent filed recently by Walmart lays out one vision of how this could be achieved: Products would be shipped to the consumer’s home ready to be “purchased” by that household when they want/need them.  Whether or not you like the execution Walmart proposes, the idea has big potential for streamlining the buying and delivery process. This conversation isn’t over by a long shot. In 2018 and beyond, look for:

• More innovative “work-arounds” that get deliveries into the home will be auditioned. Some will be made from the store and some from the workroom.
• Large companies like Walmart and Amazon will implement delivery fulfillment models. These big retailers will likely adopt something that resembles the patent, and be joined by food distributors who will see it as one of their shrinking number of growth options.

WHAT’S NEXT? The transition to “storeless retailing" will take time and ultimately won’t be for everyone since significant investment will be required to install the storage and transfer capabilities in each home. This will be especially important for higher income households who are constrained more by time and money.

Our 2018 Food Trends Forecast: Lavender Lattés, Mushroom Cocoa, Vegan Tuna and More

By Whole Story Editors, December 28, 2017 | More posts by Whole Story Editors

What will everyone be eating (and tweeting about) in 2018? Time will tell — but if you can’t wait, our annual trend forecast has the delicious scoop! We asked Whole Foods Market’s global buyers and experts and other trend-spotting industry leaders to predict the hottest trends that’ll sweep the nation next year.

…and they did not disappoint. Read on see the top picks that’ll take off in 2018, and find a store near you to try these daring trends yourself.

1. Floral Flavors

Floral inspiration is finally in full bloom. From adding whole flowers and petals into dishes to infusing botanical flavors into drinks and snacks, this top trend makes for a subtly sweet taste and fresh aromatics.

Try the Trend:

• 365 Everyday Value® Lavender Lemon Granola
• GoodPop Hibiscus Mint Frozen Pop
• 365 Everyday Value® Raspberry Geranium Fruit Bars
• Belvoir Fruit Farms Elderflower Lemonade
• Whole Foods MarketTM Dark Chocolate Violet Marshmallow

2. Super Powders

Because they’re so easy to incorporate, powders have found their way into lattés, smoothies, nutrition bars, soups and baked goods — including matcha, maca root, cacao and the age-old ground turmeric powder (the ever-popular spice used in Ayurvedic medicine).

Smoothie fans are also raising a glass to powders like spirulina, kale, herbs and roots for an oh-so-green vibrancy that needs no Instagram filter. Even protein powders have evolved beyond bodybuilders to pack in new nutrients like skin- and hair-enhancing collagen.

Try the Trend:

• Gaia Herbs Golden Milk with Turmeric, Dates and Herbs
• Amazing Grass Protein Superfood
• RX Bars (made with powdered egg-white protein)
• Whole Foods Market™ Spirulina Powder
• Vital Proteins Collagen Peptides
• MatchaBar Bottled Beverages

3. Functional Mushrooms

Shoppers are buzzing about functional mushrooms, which are traditionally used to support wellness as an ingredient in dietary supplements. Now, varieties like reishi, chaga, cordyceps and lion’s mane star in bottled drinks, coffees, smoothies and teas. The rich flavors also lend themselves to mushroom broths, while the earthy, creamy notes pair well with cocoa, chocolate or coffee flavors. Body care is hot on this mushroom trend, too!

Try the Trend:

• Om Reishi Mushroom Powder
• Kettle & Fire Mushroom Chicken Bone Broth
• Rebbl Reishi Beverages (in flavors like chocolate and cold brew)
• Alaffia Coconut Reishi Chai Shower Gel and haircare

4. Feast from the Middle East

Middle Eastern culinary influences have made their way west for years, and 2018 will bring these tasty traditions into the mainstream. Flavors of harissa, cardamom and za’atar are hitting more menus, as well as dishes like shakshuka, grilled halloumi and lamb. Other trending Middle Eastern ingredients include pomegranate, eggplant, cucumber, parsley, mint, tahini, tomato jam and dried fruits.

Try the Trend: 

• Saffron Road Falafel Crunchy Chickpeas
• Seed + Mill Tahini and Halva (Whole Foods Market Bryant Park)
• Aphrodite Halloumi
• 365 Everyday Value® Organic Tahini

5. Transparency 2.0

People want to know the real story behind their food, and how that item made its way from the source to the store. GMO transparency is top-of-mind, but shoppers seek out other details, too, such as Fair Trade certification, responsible production and animal welfare standards.

At Whole Foods Market, this plays out in several ways, starting with these three happening in 2018: 1) In January 2018, all canned tuna in our stores will come from sustainable one-by-one catch methods; 2) In September 2018, labels will provide GMO transparency for all food items in our stores; and 3) Dishes from Whole Foods Market food bars and venues are now labeled with calorie information.

Try the Trend: 

• Pole & Line Canned Albacore Tuna
• 5-Step® Animal Welfare Rated Fresh Meat and Poultry
• Non-GMO Project Verified Products (or go for organic, which also means non-GMO)
• Fair Food Certified Tomatoes and Strawberries
• 365 Everyday Value® Cage-Free Plus Eggs
• Labels on all seafood in Whole Foods Market seafood department indicate sustainably wild-caught or Responsibly Farmed

6. High-Tech Goes Plant-Forward

Using science to advance recipes and manipulate plant-based ingredients and proteins, foodmakers have created mind-bending alternatives like “bleeding” vegan burgers, sushi-grade “not-tuna” made from tomatoes, new varieties of nut milks and yogurts, and dairy-free indulgences like vegan frosting, brownies and crème brûlée.

Try the Trend: 

• Beyond Meat Burger
• Ocean Hugger Foods Ahimi Vegan Tuna (select Whole Foods Market stores in New York and Los Angeles)
• Ripple Pea Milks
• Kite Hill Dairy-Free Cheeses and Yogurts

7. Puffed & Popped Snacks

Everybody loves a crunchy snack, but new extrusion methods (ways of processing and combining ingredients), have paved the way for popped cassava chips, puffed pasta bow ties, seaweed fava chips and puffed rice clusters. And good-old-fashioned chips also get an upgrade as part of the trend, with better-for-you bites like jicama, parsnip or Brussels sprout crisps.

Try the Trend:

• Dang Sticky Rice Chips
• JicaChips (in six flavors)
• 365 Everyday Value® Organic Pea Crisps
• Unreal Dark Chocolate Crispy Quinoa Gems

8. Tacos Come Out of Their Shell

This street-food star is no longer limited to a tortilla, or to savory recipes: Tacos are showing up for breakfast, and trendy restaurants across the country have dessert variations. Most of all, tacos are shedding their shell for new kinds of wrappers and fillings – think seaweed wrappers with poke filling.

Classic tacos aren’t going anywhere, but greater attention to ingredients is upping their game. One end of the spectrum is hyper-authentic cooking with things like heirloom corn tortillas or classic barbacoa. And thanks to brands like Siete, there are grain-free options for paleo fans too. Taco ‘bout options!

Try the Trend: 

• Whole Foods Market’s New Taquería (featuring jackfruit al pastor, and a paleo chicken burrito)
• Siete Paleo Tortillas and Chips
• Frontera Tortilla Chips and Fresh Tortillas (featuring Masienda heirloom corn)
• 365 Everyday Value® Korean Style Gochujang Hot Sauce

9. Root-to-Stem

Between nose-to-tail butchery and reducing food waste, a few forces are combining to inspire root-to-stem cooking, which makes use of the entire fruit or vegetable, including the stems or leaves that are less commonly eaten.

Try the Trend: 

• Root-to-Stem Salad Bar Items (featuring Brussels sprouts, broccoli and other seasonal varieties)
• Melon Seed Agua Fresca
• Bagged Broccoli Slaw
• Produce butcher at Whole Foods Market Bryant Park

10. Say Cheers to the Other Bubbly

LaCroix may have paved the way, but now there’s an entire booming category of sparkling beverages vying for consumer attention. Flavored sparkling waters like plant-derived options from Sap! (made with maple and birch) and sparkling cold brew from Stumptown are shaking up a fizzy fix.

Shoppers are also toasting mocktail must-haves like Topo Chico and Whole Foods MarketTM Lime Mint Elderflower Italian Sparkling Mineral Water.

Try the Trend: 

• Waterloo Sparkling Water
• Sap! Maple and Birch Sparkling Waters and Seltzers
• Stumptown Sparkling Cold Brew (Original, Honey Lemon and Ginger Citrus)
• Whole Foods Market™ Italian Sparkling Mineral Waters (Citrus Blend, Lemon, Strawberry, Lime, Lemon Raspberry, Grapefruit and Lime Mint Elderflower flavors)
• 365 Everyday Value® Canned Sparkling Water (Pure, Lime, Lemon, Orange and Grapefruit flavors)

FDA Takes Too Long To Recall Tainted Food, Federal Investigators Say

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December 28, 20174:00 AM ET

DOREEN MCCALLISTER

Dr. Scott Gottlieb is head of the Food and Drug Administration. Federal investigators reviewed 30 of 1,557 food recalls between 2012 and 2015. They found that the FDA did not always evaluate food-borne hazards fast enough or ensure that companies initiated recalls promptly.

J. Scott Applewhite/AP

Contaminated food is taking too long to be removed from store shelves, according to a report issued by the inspector general of the Department of Health and Human Services.

The report says the Food and Drug Administration "did not always have an efficient and effective food-recall process that ensured the safety of the nation's food supply."

Federal investigators reviewed 30 of 1,557 food recalls between 2012 and 2015.

The investigation shows food companies took an average of 57 days to recall items after the FDA was informed of the potential danger.

George Nedder, an assistant regional inspector general at Health and Human Services, was the lead author of the report.

"Our review found that FDA does not have adequate policies and procedures to ensure that firms take prompt and effective action in initiating voluntary food recalls. This means that dangerous food products may have remained in our nation's food supply for weeks after FDA was aware of the contamination.

"In one case, a baby died, and nine others became ill, all from consuming cheese that contained listeria — 81 days passed from when FDA learned of the adulterated product, to when the firm initiated the recall."

Every year about 130,000 people in the U.S. are hospitalized with a food-borne illness, and 3,000 people die.

FDA Commissioner Scott Gottlieb agreed that the investigation raised some significant concerns:

"I take these obligations very seriously. Making sure the FDA has effective recall practices in place, and that we take immediate action to address unsafe foods, are high priorities of mine. Our recall authorities – and how we deploy them – are a cornerstone of our vital, consumer protection mission."

The FDA has jurisdiction over most of the U.S. food supply. Meat and poultry are handled by the Department of Agriculture.

NPR's Allison Aubrey reported in September on another report critical of the FDA:

"A new report from the Department of Health and Human Services' Office of Inspector General raises some red flags about the inspections program.

"We found a number of weaknesses in the way that FDA is protecting the food supply," Meridith Seife, the deputy regional inspector general, told us.

"For instance, FDA often relies on facilities to voluntarily correct violations, which can be ineffective."

In 2011, President Barack Obama signed into law the Food Safety Modernization Act, which gave the agency the authority to issue a mandatory recall when a company fails to voluntarily recall unsafe food after being asked to do so.

The inspector general's office said the review was conducted "to determine whether FDA is fulfilling its responsibility in safeguarding the nation's food supply now that it has mandatory recall authority."

The reports show the FDA has used its recall authority twice.