Ashley Thompson started Mush, a ready-to-eat overnight oats company, a decade ago. With a focus on wholesome ingredients and no unnecessary fillers, Mush quickly gained popularity, selling over 200 million cups. Its success caught Whole Foods’ eye, leading to requests for new products, including protein bars.
Thompson believes the food and beverage industry is undergoing a significant transformation. More people are opting for healthier options and shifting away from traditional brands. This trend is benefiting smaller companies like Mush and Farmer’s Fridge, which focuses on fresh meals.
In September, Kraft Heinz announced plans to split into two companies. This decision comes amid declining interest in processed foods, marking a dramatic change for a brand formed after the merger of Kraft and Heinz a decade ago.
Experts highlight that consumers are becoming more health-conscious, leading to demand for cleaner, less processed foods. Ernest Baskin, a food policy professor, notes that this shift has even influenced major companies to adapt. Brands like Starbucks are adding protein-rich items to their menus in response.
Recently, new weight loss medications such as GLP-1 have caused a surge in consumer awareness about diet and nutrition. Luke Saunders, founder of Farmer’s Fridge, mentioned that grocery stores selling fresh items are seeing substantial growth compared to those focusing on packaged products.
The trend toward healthier eating has led to initiatives like the White House’s “Make America Healthy Again,” aiming to reduce reliance on processed foods. However, large companies like Kraft Heinz face challenges in changing public perception. A recent CDC report revealed that ultra-processed foods make up about 55% of daily caloric intake, with the percentage rising to 61.9% in youth aged 1 to 18.
Agility is a key advantage for independent brands. Mush can quickly bring new products to market, while larger companies often struggle with bureaucracy. Thompson stated, “We can make quicker decisions,” allowing for a swift response to changing consumer preferences.
In an effort to become more flexible, Kraft Heinz launched an AI-powered platform, TasteMaker, which speeds up marketing content creation. CEO Carlos Abrams-Rivera mentioned that this innovation has dramatically reduced time for content development.
Brands like Simple Mills are also thriving by offering recognizable ingredients without additives. They’ve seen steady growth since their start in 2012, with a 14% increase in sales recently.
With growing consumer interest in local and health-conscious brands, companies are now more willing to collaborate with startups. Food manufacturing is booming in Chicago, and partnerships between big corporations and smaller brands are becoming common. For example, Nestlé acquired Vital Proteins in 2022, reflecting the trend of larger companies picking up innovative brands.
As Thompson notes, the shift toward whole foods is not new but is finally gaining momentum. Consumers increasingly seek authentic brands, and social media helps smaller companies share their stories and values. The landscape of the food industry is changing rapidly, and those who adapt will thrive.
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