Oat Gold (STKL)
In making oat milk, 100 pounds of oats becomes 70 pounds of liquid and 30 pounds of solids. The solids are 50% protein and 25% fiber. SunOpta is in the process of identifying how to dry and mill it into a super-high protein, high fiber oat flour. The oat flour could then be used for various products like cookies, crackers, cereals, etc. SunOpta has trademarked the name Oat Gold for the ingredient. Currently, the solids are generally disposed of. Finding a better use for the solids would add to revenue and please customers who drink oat milk for environmental reasons.
Hazard pay without the hazard (ACI)
Redwood City, California, passed an urgency ordinance on Monday to require large grocery stores and drugstores to pay their workers an additional $5 per hour in hazard pay. The mandate went into effect immediately and will expire on July 11. Stores impacted by the ordinance include Costco, CVS, Grocery Outlet, Safeway, Target, and Whole Foods Market. Other cities in San Mateo County with a hazard pay ordinance include Millbrae, South San Francisco, Daly City, and San Mateo. The city of Antioch directed its staff to draft an ordinance yesterday. The new ordinance passed even though every Californian over the age of 16 is eligible for a vaccine starting April 15. Labor leaders are hoping the movement can be extended to other workers besides grocery store workers. Coachella passed an ordinance giving hazard pay to workers at grocery stores, drugstores, restaurants, and farms in February. For the supermarkets, the mandated higher pay in California is not going away.
White Claw’s new launches (SAM)
Mark Anthony Brands is launching two White Claw extensions and one new variety pack. White Claw Surge is an 8% ABV version of the best-selling hard seltzer. White Claw’s third variety pack includes strawberry, pineapple, and blackberry. The pack also includes mango, the brand’s best-selling standalone flavor. White Claw variety pack #1 is the 11th best-selling beer category SKU in the off-premise channel, and variety pack #2 is the 14th best. Sales of variety pack #1 have declined 12.7% YTD. Variety pack #2 sales have increased 335% YTD through March 21. White Claw brand sales have increased 27.5% YTD through March 21 but decelerated to 6.8% in the latest four weeks, according to IRI. For the 13 week period ended March 27, hard seltzer dollar sales grew 56.8%, according to Nielsen. Truly’s sales have grown 117.6% YTD through March 21.
Truly has beaten White Claw to the punch this year on innovation, introducing its new products months ahead of White Claw, including a fruit punch flavor. Truly’s tea-flavored seltzer was launched two months earlier than White Claw’s. Truly’s sales growth has outperformed White Claw this year as a result. With the new launches, White Claw can now try to take back some of Truly’s momentum.
