News Roundup: Carrot Cracker Business Closes Down; Campbell’s Soup Sales Surge

Upcycled Cracker Brand, Seconds, Closes Up Shop

New York City-based upcycled snack brand Seconds is winding down operations due to the current market conditions and lack of working capital, according to a LinkedIn post from the brand’s founder Beth Kennedy.

“After much reflection and evaluation of the market and funding options, I’ve made the very difficult decision to wind down my upcycled cracker company, Seconds,” she said in the post. “Creating and building Seconds has been the most challenging, rewarding and daunting experience of my career (so far). The leap to being an entrepreneur has been a rollercoaster of a journey with some wonderful highs and crushing lows that have shaped me into an even more resilient, resourceful and ambitious leader.”

Launched in 2019, Seconds produces carrot-based crackers made from the pulp and peels discarded by juice and produce companies. Available in Original, Chipotle Ranch Crunch, and Everything, the snacks were distributed at NYC-area retailers including Juice Press, Murray’s Cheese, Pop Up Grocer, The Goods Mart, Sahadi’s as well as on a range of e-commerce platforms.

“Building something out of nothing is incredible and I am proud of what we achieved with Seconds,” said Kennedy in the post. “We saw repeat sales at influential retailers in New York City – one of the most challenging retail environments even in good times… Despite all of this and a fact based path to profitability, raising significant capital in this market became impossible.”

Kennedy has a diverse CPG background having previously worked in marketing roles at Tetra Pak and Del Monte Foods as well as a Target buyer. Prior to launching Seconds, Kennedy was the director of marketing and operations for sustainable fruit snack brand Peeled Snacks which also works with upcycled produce.

“The start-up food and beverage community is incredible and I feel so lucky to be a part of this village,” concluded Kennedy in the post.

Campbell’s Raises Full Year Guidance As Soup Sales Increase

Canned soup is having a moment, according to Campbell’s President and CEO, Mark Clouse, on the company’s Q1 2023 earnings call Wednesday. The company’s flagship segment saw sales increase 11% during Q1 2023, prompting an increase to its full year guidance. Campbell’s expects to now see a 7% to 9% increase in full-year net and organic net sales in FY23 despite “the volatile economic environment.”

Across the company’s portfolio, organic net sales were also up nearly 15%, which Campbell’s attributes to inflation-driven pricing, the brand awareness and continued efforts to strengthen its supply chain. While the company said it is also investing in marketing and innovation, it will remain focused on being capital efficient.

“Our strong first-quarter results reflect our continued success in driving the relevance of our brands and improving our execution across our supply chain,” said Clouse, in a press release. “Through a combination of inflation-driven pricing actions and productivity improvements, we have substantially mitigated significant inflationary pressure in the quarter while continuing to provide quality and value to consumers.”

The company’s stock price also gained momentum following the release of the results with shares up 30% versus the 16% drop for the S&P 500 over the same period.

Second Nature Brands Acquires Brownie Brittle

Better-for-you snack platform Second Nature Brands (SNB) announced Tuesday it has acquired Brownie Brittle from Encore Consumer Capital. The indulgent snack brand joins SNBs portfolio which includes Kar’s Nuts, Second Nature Snacks and Sanders Chocolates.

“We have ambitious plans to become a US leader in snacks and treats and the acquisition of Brownie Brittle is an exciting step on this journey, which expands our presence into baking and unlocks a new growth stream for us,” said Victor Mehren, CEO of Second Nature Brands, in a press release. “It also marks our first acquisition since being acquired by our majority investor CapVest, showing how with their support we intend to grow and develop Second Nature Brands through continued investment in the brand, channel & category expansion, as well as continued focus on product quality.”

Brownie Brittle boasts a wide range of flavors beyond its flagship chocolate snack as well as a variety of pack sizes and line extensions such as gluten-free and blondie varieties. The products are sold across numerous channels including club, grocery, mass, convenience stores, specialty retailers and airlines.

Vital Proteins Secures B-Corp Certification

Nestle Science-owned collagen platform brand Vital Proteins announced on Thursday it has secured B Corp certification. The company highlighted key stats that contributed to it earning the seal including its managerial workforce which is 59% women-led and that its lowest paid hourly wage worker earns 50% more than the federal minimum wage.

While over half of the brand’s energy use is already from low-impact renewable sources and nearly three-quarters of its products are packed in recyclable or biodegradable materials, the company said it aims to focus on environmental sustainability by launching new initiatives to support its B Corp status.

“Vital Proteins is proud to join a global community of businesses that are a force for good,” Tracey Warner Halama, CEO at Vital Proteins, in a statement. “We know that this is just the beginning for us and that we have more work to do. The beauty of becoming a B Corp is that it pushes us to stay accountable, continuously evaluate our performance and show our progress over time.”