Business Bites: Supply chain emissions undermine food industry’s climate efforts

New research suggests that it isn’t enough to simply keep an eye on your own emissions anymore; you need to be aware of all the emissions throughout your entire supply chain and work with every supplier to ensure their climate goals align with yours. You might be wondering, when and how am I supposed to do that while running a business? The science is still out on that one.

Also, an energy drink brand is joining forces with a popular candy maker to create new caffeinated beverages that are definitely not marketed toward children, Kind announces a new CEO (for the third time in four years) and U.S. Department of Agriculture (USDA) funds meat processing improvements. All that and more in this week’s Business Bites.

Study finds supply chain emissions slow food sector’s climate change efforts

Ceres, a nonprofit dedicated to creating a more sustainable economy, has discovered that while North American food companies are making strides in reducing direct emissions, their efforts fall short in addressing supply chain emissions, hindering overall reduction goals.

Basically, CPG brands can’t just focus on reducing their direct emissions — i.e., the greenhouse gasses they produce through manufacturing and processing — then wash their hands of the entire situation. No, they must also consider the climate goals of the suppliers providing the ingredients they use, which seems like a big ask in a globally connected world.

This observation is part of a broader analysis by Ceres, examining data from 50 companies under its Food Emissions 50 initiative. The research also showed that companies with science-based emissions reduction targets tend to have greater success.

C4, Hershey partner on licensed flavors for energy drinks, protein powders

Nutrabolt, the makers of energy drinks named after explosives, is teaming up with Hershey to launch a new line of ready-to-drink (RTD) beverages and protein powders featuring flavors from Hershey's candy brands. Some of the new creations include Bubble Yum pre-workout powder and Jolly Rancher-flavored energy drinks in Blue Raspberry, Green Apple and Watermelon. In October, the range will expand to include C4 protein powders in Hershey’s Milk Chocolate and Reese’s Peanut Butter flavors.

The partnership aims to differentiate both brands in a competitive $19 billion energy drink market, leveraging Hershey's brand recognition and flavor profiles. That said, they’re caffeinating candy, so hopefully the packaging tells children to stay away.

Flavorchem’s orange oil replacers could ease global supply chain issues

The global orange juice supply chain is struggling amid crop shortages, poor fruit quality and general climate disruptions — you know, the same ol’ same ol’ for the terrifying circus we call the 2024 news cycle. And with the rise in demand for natural products across various sectors, orange oil prices are expected to continue to climb over the next few years.

Fortunately, Flavorchem has introduced Taste Mod Orange, a new line of orange oil replacers that can deliver a citrusy zest more affordably. Taste Mod Orange comes in extract, emulsion and spray dry applications and is available as a sustainable “natural flavor,” making it suitable for clean label products.

Kind appoints third new CEO in four years

Popular Mars’ brand Kind Snacks has appointed Daniel Calderoni as the new CEO of North American operations. Calderoni, who has more than 20 years of leadership experience in global consumer brands at Mars and Unilever, replaces Russell Stokes, who left Mars for another opportunity amidst the company’s ongoing efforts to finalize its $36 billion acquisition of Kellanova.

Calderoni's experience, which includes managing pet food products, may guide Kind Snacks toward nontraditional flavors, like breakfast bars containing real chicken liver. I kid; the real goal is to expand their offerings beyond traditional bars into products like chocolate, granola and frozen items, with an emphasis on healthier, plant-based options. Given the popularity of functional bars, this evolution must be a no-brainer.

Biden-Harris administration awards final grants for meat, poultry processing

USDA has announced a $35 million investment in 15 independent meat processors across 12 states to boost processing capacity, enhance market competition and create jobs in rural areas. As part of the Meat and Poultry Processing Expansion Program (MPPEP) backed by President Biden’s American Rescue Plan, this investment could strengthen the U.S. food supply chain and support a more resilient meat and poultry industry.

This award marks the completion of MPPEP's funding initiatives, which have already increased processing capacity for nearly 900 meat and poultry producers and created more than 1,200 jobs, according to USDA. This final round of grants will further enable the construction of new processing facilities, enhance business opportunities for local producers and broaden consumer choices in grocery stores.