News Briefs

Last month, the U.S. Department of Agriculture’s Food and Nutrition Service proposed changes to the Special Supplemental Nutrition Program for Women, Infants and Children, otherwise known as WIC. Following the USDA’s recommendation to reduce benefits for milk and dairy purchases and allow for non-dairy substitutes, one dairy group is voicing its concern.

The International Dairy Foods Association (IDFA) shared results of a new survey showing that 20% of WIC participants would not re-enroll in the program if USDA cuts milk and dairy benefits. More than four in five (76%) program members said they are concerned with the proposal and 35% reported that they will have to use non-WIC funds to buy milk and dairy. The poll was conducted by Morning Consult between Dec. 14-16.

“Reducing WIC benefits for milk and dairy will make life harder for millions of women, new mothers, infants, and children at a challenging time of high food costs and rising food insecurity,” said Michael Dykes, D.V.M., IDFA’s president and CEO. “Moreover, USDA’s own proposal flies in the face of the federal Dietary Guidelines for Americans, which says 90% of Americans are not consuming enough dairy to meet daily requirements. USDA must reverse course and find ways to improve program participation by encouraging the purchase of nutritious dairy products rather than penalizing low-income moms and families during tough economic conditions.”

IFDA’s research affirmed that most WIC participants use their benefits to buy items in this category, with 78% purchasing dairy products through the program. That compares to 75% of beneficiaries who buy fruits, 68% who buy vegetables, 67% who buy grains and 57% who buy protein.

Albertsons Cos. has revealed that on Dec. 19, the State of Washington Supreme Court set a date for the review of the temporary restraining order against the company’s previously announced $6.85-per-common-share special dividend. The Washington Supreme Court, sitting en banc, will review the appeal of the attorney general of the State of Washington on Feb. 9, 2023. The temporary restraining order will remain in effect until there is a further order issued by the Washington Supreme Court. Albertsons has filed a motion to further expedite the Washington Supreme Court’s en banc review.

The company also noted that on Dec. 20, the U.S. Circuit Court for the District of Columbia denied the motion filed by the California, Illinois and District of Columbia attorneys general for an injunction pending appeal and an administrative stay of the payment of the special dividend. On Nov. 8, the U.S. District Court for the District of Columbia denied the request by the California, Illinois and District of Columbia attorneys general for a temporary restraining order against the payment of the special dividend.

Albertsons Cos. continues to maintain that the claim brought by the attorney general of the State of Washington, as well as the similar lawsuit brought by the attorneys general of California, Illinois and the District of Columbia, is meritless and provides no legal basis for preventing the payment of the special dividend. Albertsons’ position has been supported by favorable rulings in both circuit and district courts in the District of Columbia, and a Washington state court.

Albertsons Cos.’ proposed merger with The Kroger Co. is continuing through required regulatory review, which includes obtaining clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Boise, Idaho-based Albertsons  is No. 9 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America. Cincinnati-based Kroger is No. 4 on the list.

Plant-based milk and dairy company Good Karma Foods has a new leader. The Boulder, Colo.-based producer announced the hiring of Mike Murray as its new CEO.

Murray brings more than 25 years of CPG experience to his latest role. He joins Good Karma from Teton Waters Ranch, where he helped that regeneratively-raised beef solutions become the fastest-growing natural dinner sausage brand. His background includes leadership positions at Free2b Foods, So Delicious Dairy Free, WhiteWave Foods Co. and Larabar.

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“I am looking forward to leveraging my experience and passion for galvanizing food system change to help the team bring Good Karma’s portfolio of delicious and sustainable plant-based solutions to more households,” said Murray. “Our team has a compelling opportunity to build upon the strong equity of Good Karma to deliver a variety of solutions that help people do good every single day with their consumption choices.” 

In addition to onboarding a new CEO, Good Karma announced that it is set to complete a fresh round of funding to accelerate growth. The company is backed by investors such as Valor Siren Ventures and Loft Growth Partners.

“Even in light of inflationary pressures, families continue to flock to plant-based categories and segments, and Good Karma’s unique value proposition – combining the best of plants to provide unparalleled nourishment like no other – continues to show exciting promise,” remarked Brian King, Good Karma’s chairman of the board. “As our investors renew their partnership with Good Karma, and Mike joins the team, we are all looking forward to the brand realizing its leadership position in a variety of growing plant-based categories.”

In an effort to improve food access, the New Jersey Economic Development Authority (NJEDA) has unveiled a $2.5 million pilot program that provides funding for food retailers in New Jersey to purchase self-contained, temperature-controlled lockers and install them for food deliveries in the state’s food desert communities.

Through the use of refrigerated lockers, the Food Retail Innovation in Delivery Grant (FRIDG) program will help to increase the availability of nutritious food in food desert communities while assisting food retailers to adapt to new business models that can help sustain their businesses.

[Read more: “Chicago Indie Grocer Wins $50K to Fight Food Deserts”]

According to the NJEDA website, refrigerated locker units must be placed within a designated food desert community, and may be installed near local organizations, such as food banks and community centers that are convenient for residents of the community and a place where residents facing food insecurity may already access services. This model will also give these residents the ability to order online and have groceries delivered to a convenient central location without having to travel long distances to reach food retailers, as many residents without a nearby grocer are currently forced to do.

Grants will cover between 30% and 50% of the total project cost (inclusive of locker purchase, delivery and installation), up to $250,000.

The program is open to food retailers authorized by the U.S. Department of Agriculture Food and Nutrition Service (USDA FNS) to accept Supplemental Nutrition Assistance Program (SNAP) benefits for online ordering.

Riteway Sales and Marketing, a Lakeland, Fla.-based food broker, has made changes to its leadership team. The company announced that Steve Critelli (pictured) has been promoted to president and longtime President Jim Hall is moving to the chairman and CEO position.

Critelli was elevated from his most recent role as EVP of sales and marketing. Hall, whose tenure at Riteway has spanned 40 years, will oversee an executive leadership team that also includes EVP Elisa Westlund and HR Director Deneice Jernigan.

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“As part of our succession plan of the company we are elevating Steve to oversee the expansion and continued growth of our organization.” Hall remarked.  “Steve has done a great job for us and has earned the new position.”

In other personnel news, Riteway shared that it has promoted Melissa Henderson to senior insights manager and Darlene McQueen to insights manager. Those moves reflect the expansion of the firm’s analytics and insights department, as Riteway reported that it has invested in the latest cloud-based tools to uncover brand trends and provide proprietary analysis to retailers and CPGs.

Ultrafast delivery service Getir shared its rear-view look at 2022, highlighting top trends among users. Befitting a business built and defined by technology, Getir used AI-generated data to uncover purchasing habits.

The Turkish company, which delivers to U.S. customers in Chicago and New York, reported that health and wellness continued to be a purchase driver in a year that opened with another COVID-19 surge. According to Getir’s data, non-alcoholic beverages and fresh fruits and vegetables were leading categories and specific top items included bananas, apples and bottled water.

Getir’s information also underlined the influence of seasonality on rapid delivery sales. Orders picked up in the winter, when consumers didn’t venture out as much and purchases of soup, broth and ramen peaked. Likewise, during a hot summer across much of the world, ice cream purchases spiked. In the U.S., the cookie dough variety was most in demand, while tastes varied between refreshing citrus flavors and indulgent dessert flavors in other parts of the world.

Major holiday events that spurred upticks in sales included Valentine’s Day and the recent FIFA World Cup, according to Getir. Soccer fans bought more than their fair share of beer, as that segment topped wine and spirits during the World Cup time frame.

“Getir, first and foremost, is a technology company. With over seven years in business, our deep inventory of data and AI is consistently learning and allowing us to understand our customers and anticipate their needs and desires,” said Elif Çar, Getir's chief U.S. transformation officer.

In addition to what users ordered, Getir shared findings of how they bought groceries for swift delivery. The most popular order days on a global basis were Saturday and Sundays, and the most common order times were between 7 p.m. and 9 p.m.

Getir will start 2023 with a bang, after acquiring German ultrafast delivery service Gorillas earlier this month in a deal estimated at $1.2 billion. The year 2022 proved to be a shakeout year for such platforms as Jokr ceased operations and Gopuff cut down on staff and warehouses.