Summer Fancy Food Review

This June, the Specialty Food Association (SFA) Summer Fancy Food Show returned in-person to New York City for the first time since 2019. While more limited in its scope, energy and total attendees than mega-shows like Natural Products Expo West, the event represents an important showcase for CPG brands looking to grow in the specialty food market, which is expected to rise to $185 billion in 2022, according to the SFA State of the Industry report.

Overall, there were plenty of new food and beverage brands showcasing packaging updates, bringing a wide range of global flavors to the U.S. market and reaffirming the momentum behind the alt-cocktail movement.

For Joe Tea, being flexible during times of crisis allowed the brand to lower prices and expand the business. Moving its flagship iced tea line to 18 oz. plastic bottles from 20 oz. glass came out of necessity during last year’s supply chain disruptions but has benefited the business’s growth.

“It was that or nothing,” founder and president Steven Prato cracked. “And our customers like it better than nothing.”

Since the switch, the New Jersey-based brand has grown from “one and a half” production facilities to five manufacturing sites across the U.S. and Canada, including a Houston, Texas location which opened last year. Plastic has also allowed Joe Tea to sell at a lower price point, around $2 per bottle compared to $3 in glass. The company can also fit about 1,000 extra cases on each truck thanks to the simpler packaging, Prato said.

Also on the floor, several startup beverage makers debuted rebrands as they aim to build momentum and re-establish themselves in retail after a difficult past two years.

Vermont-based Shrubbly introduced a new look for its cans ahead of a West Coast expansion in Erewhon stores. Shrubbly is an organic “Bubbly Superdrink” made with shrubs, apple cider vinegar and sparkling water and available in Lemon + Ginger + Aronia Berry and Pomegranate + Aronia Berry flavors. Each 12 oz. can retails for $2.99 and the brand plans to launch two more flavors this year. Shrubbly founder Matt Sayre said the rebrand will help establish Shrubbly as a “category defining brand for sparkling shrubs” by clarifying its healthy ingredients and benefits.

Massachusetts-based tea Waku also showcased new branding and a reformulated product line. Now positioned as a prebiotic herbal tea, co-founder and CEO Juan Giraldo said the brand has removed sugar from its recipe and moved to natural sweeteners stevia and monk fruit. The company also added 6 grams of prebiotic fiber to better position Waku as a functional gut health product.

On the food side, one of the most notable shifts in post-pandemic consumer behavior has been the transition to more convenient meal making, without sacrificing unique and exciting flavors. That shift was evident on the show floor with all arrows pointing toward the proliferation of Asian-inspired flavors, primarily in the form of spice packs, sauces and meal kits.

Convenient product formats offer consumers a low risk, easy access solution for mealtime and, in some cases, even more use occasions, as is the goal with Indian-inspired spice pack brand SugarRoti. According to co-founder Bina Motiram, the packs can be used to easily test out unfamiliar herbs and spice blends with dinner, blend into a beverage, like with its Golden Milk Nu Spice
product, or add to a baked good for additional depth of flavor.

But use occasions aren’t the primary purpose behind the brand. Motiram founded the company on the ethos of sustainability, explaining she was frustrated by the inefficiencies of dried spice bottles that often went bad before they could be used during their optimal period of freshness. Motiram saw an opportunity in a convenient, pre-packed format; SugarRoti spices are available in fifteen different “Nu Spice” varieties in fully compostable packages.

Homiah Foods, a brand that’s positioned itself as a Southeast Asian pantry, also sells flavor packs – available in Singaporean Laksa, Indonesian Rendang and Malaysian Red Curry varieties – but with a broader regional focus. Launched in late 2021, the company is on the cusp of larger growth, according to founder and CEO Michelle Tew.

Tew looked to solve a similar pain point as SugarRoti, but noted that many of the spices she wished to incorporate in her sauce pouches were not even accessible in the U.S. This led her to spend multiple months in Malaysia, setting up her own flavor supply chain, which then took an additional few months to make it stateside, due to global shipping constraints.

Also on the floor, the momentum behind mocktails was notably accelerating. With alcohol alternatives on the rise, canned mocktail makers are staying focused on growing distribution and introducing new options for consumers seeking out non-alcoholic solutions.

Laura Taylor, CEO of Mingle Mocktails, said the company is preparing to enter two major retailers – one liquor chain and one grocery chain – and has expanded its footprint to about 5,000 stores nationwide, including Whole Foods and Wegmans. Taylor said she hopes to also grow foodservice and hospitality accounts in the next two years as more bars and restaurants expand non-alcoholic beverage menus.

In retail, Mingle’s single-serve cans have outpaced sales of its multiserve bottles, she noted, and the company has expanded its
sales, marketing, supply chain and operations teams to support its growth. Taylor has also advocated for retailers to establish sets in order to support the category and drive growth, and has worked with buyers such as Town & Country’s Dwight Richmond in creating alcohol alternative shelves.

“Something that I will be working on as I engage with retailers and buyers and distributors is ‘What does the data say?’” Taylor said. “Dwight proved out that when you create a non-all set people will purchase more because they know where to find it and they see all that’s available. Whereas retailers who put a non-alc beer in one place and a non-alc cocktail in the mixer set, they’re not going to enjoy the turns because people don’t know where to find it.”

Washington, D.C.-based startup Mocktail Club also showcased its portfolio of original non-alc creations that have the complexity of an adult beverage. Varieties include Manhattan Berry (blackberries, pear shrub, ginger), Havana Twist (lime, cucumber, mint, cardamom), Capri Spritz (pomegranate, cranberry shrub, lemongrass and hints of bitter) and Bombay Fire (pomegranate, chili, agave and infused tea). Each 12 oz. can retails for $3.99 to $4.50.

According to founder and CEO Pauline Idogho, Mocktail Club is available in Erewhon and Whole Foods and will be launching with Town & Country in the near future.