Talks resume at cereal strike (K)
Negotiations resumed yesterday between Kellogg’s and the Bakery, Confectionery, Tobacco Workers, and Grain Millers International Union. Talks between the two sides in early November failed to reach an agreement and further discussions were paused until Monday. The union had rejected a proposal from Kellogg’s on November 4 saying the company’s “last, best, and final offer does not achieve what our members are asking for; a predictable pathway to fully bested, fully benefitted employment for all employees with no concessions.” The company has continued operations at the four plants with hourly and salaried employees and third-party resources. The union representing 1,400 cereal plant workers has been on strike since October 5. A four-week strike at John Deere ended last week after workers agreed to an $8,500 signing bonus and a 20% increase in wages over the term of the contract.
Avocado’s environmental footprint (AVO)
For the four-week period ending October 3, total U.S. avocado sales increased 2.2% to $175.7M according to the Hass Avocado Board. Total produce sales grew 4% over the same period. The average avocado price per unit was up 16.4% to $1.19 per unit. Compared to 2020 avocado volumes are down 12.2%. Mission Produce had modeled pricing to be flat sequentially in the quarter ended October with prices peaking in September and coming down in October.
Some chefs and food influencers have a campaign to encourage people to try alternatives to avocados. They cite the fruit’s environmental footprint including an avocado requires 60 gallons of water to grow, two small avocados sold at a grocery store have twice the carbon footprint as two pounds of bananas, and they have to be shipped long distances and stored in temperature-controlled containers. Concerns about the avocado’s environmental impact are not new. It also depends on which food is compared to the avocado. Given the avocado’s popularity and perceived healthiness, the campaign has an upward climb.
Daily Harvest capital raise (APRN)
Daily Harvest announced last week that it raised $77M in a Series D round valuing the company at $1.1B. Daily Harvest's mission is to make organic and regenerative fruits and vegetables more accessible. The company specializes in frozen-food products, ready-to-blend smoothies, and harvest veggie bowls as a prepared meal delivery service. Daily Harvest combines convenience with quality, vegan superfoods. The company delivers weekly or monthly boxes of preassembled meals that require minimal preparation and cooking. Plant-based is seeing more capital flows in public and private markets while also seeing more of a focus from the large food manufacturers.
