Shrooms and New Executives

Welcome back Food Junglers. The fast food world has been shaking these past few days, while climate activism continues to weaken Big Food’s tightening grip on the food supply chain. Let’s dig in.

This week:

🐟️ Chilean farmers are unhappy with industrial salmon fishing.

☕️ Starbucks hires a new CEO in the US.

🥩 Cultivated meat is “kinda” back on the menu in Florida.

🛒 Shelf space is getting tighter in American supermarkets.

🍄 Mushrooms are being used to store carbon in Australia.

CLIMATE
CHILE’S FISHERMEN REVOLT

The Indigenous peoples in Chilean Patagonia have renewed their legal battles with politicians and the salmon farming industry, arguing that industrial salmon fishing is violating their land and water rights.

Indeed, the Chilean salmon industry has often been criticised for its heavy use of antimicrobials and accused of polluting waterways and contributing to record algal blooms in Chilean Patagonia.

Politicians involved in the matter are now debating whether to freeze or limit concessions on new farms in the southernmost waters to appease Indigenous Chileans in the region.

ZOOMING OUT: This is, of course, a tricky issue for the developing country. While more than 338 metric tons of harmful antibiotics were reportedly used in Chilean salmon farms in 2023, the industry generated $6.5 billion in revenue that same year. I feel a “Pros and Cons” list is due.

BUSINESS
A CHANGING OF THE GUARD

The big food news this week came as Starbucks executives ousted CEO, Laxman Narasimhan, replacing him with the chief executive of Chipotle, Brian Niccol.

The change was in part motivated by the coffee chain’s slowing sales for its lattes and Frappuccinos, a slumping stock, declining sales in China, and an inability to effectively deal with unionised Starbucks workers.

Starbucks’ stock price soared more than 21% in morning trading as soon as the announcement was made, showing investors’ confidence in the new CEO.

ZOOMING OUT: Although very successful and forward thinking, Niccol has a few challenges to face, namely competing in the Chinese market and navigating a Palestine-related PR storm. But, given the new exec’s track record, it looks like he knows what he’s doing.

POLICY
CULTIVATED MEAT STRIKES BACK

Cultivated meat producer - Upside Foods - and a non-profit public interest law firm - The Institute of Justice (“IJ”) - are challenging Florida’s ban on cultivated meat in federal court.

Florida Governor - Ron DeSantis - signed the legislation making the sale of cultivated meat (real animal protein grown from real animal cells) illegal in Florida on 1st May, 2024. The bill came into effect on 1st July.

The IJ and Upside Foods are primarily arguing that the ban violates the Supremacy Clause, which gives federal law priority over state law in certain instances, arguing that consumers themselves should decide what kind of meat they want to buy. 

ZOOMING OUT: Despite the pro-cultivated meat party’s efforts to protect consumer freedoms, Florida’s agricultural lobby is determined, as Florida Agriculture Commissioner Wilton Simpson states, “to protect [Florida’s] incredible farmers”. I’m definitely curious to see who wins this battle.

SUPPLY CHAIN
SHELF SPACE COMPETITION

As grocery stores - from Aldi to Walmart - offer their own lower-cost offerings, the contest for shelf space at these grocery stores is becoming increasingly heated.

In the wake of the Covid-19 pandemic and inflationary pressure on food prices, consumers are looking for ways to cut grocery bills. As a result, the cheaper grocery-label options have soared in popularity.

Indeed, between 2009 and 2023, square footage in super-centres and supermarkets decreased 5% and 3.3%, respectively, making it significantly harder for even the largest brands to compete with one another.

ZOOMING OUT: The unexpected winners are those that produce fresh foods, rather than the brands that focus on the frozen food aisle, where the competition isn’t as severe. Still, as companies try to offset costs of competition, we can expect to see further price increases for the time being.

THE BRIGHT SIDE
SHROOMS FOR THE PLANET

Continuing the agricultural theme, I came across a start-up that is trying to tap into the powers of tiny subterranean tendrils of fungus to pull carbon dioxide out of the air and store it in the soil.

An Australia-based company, Loam Bio has created a pulverised dust of fungal spores that latch onto the crops’ roots, taking carbon that is then absorbed by the plants and locking it away underground for much longer than the natural carbon cycle.

Magnificently, many Australian farmers are buying into the practice as it doesn’t demand too much from them and is relatively cheap compared to other sustainable farming methods.

Loam Bio’s fungus has been spread on 100,000 acres in Australia this year, with 250,000 acres expected to come online next year. Six farmers in the US are also experimenting with it, with field tests already being conducted in Canada and Brazil already.

Personally, I can’t wait to see if this becomes the next big thing. Food Jungle approved ✅ 

BEFORE YOU GO…

• China's central bank will provide $14 billion to banks to support rebuilding areas devastated by floods, after recent extreme weather damaged around 6 million acres of crops.

• Mars unveiled a nearly $30 billion deal for food maker - Kellanova - a sign that big food companies are willing to pay up to increase their snacking portfolios.

• Wendy's drive-thru A.I. will now let customers order in multiple languages.

• Perdue Foods recalled 167,000 pounds of chicken nuggets after consumers found metal wire in some packages.

• Grocery chain - 7-Eleven – confirmed that it has received a preliminary takeover offer from Canada's Alimentation Couche-Tard (ACT).

TAKE A BREAK

Hi there everyone! It’s our pleasure to introduce another newsletter in the food space - BETTER BIOECONOMY - from a food technology enthusiast, Eshan Samaranayake.  

Like the team at Food Jungle, Eshan is doing his absolute best to advertise those who are making food healthier, cleaner, more sustainable, more animal-friendly AND accessible to all.

So, if you are interested in reading more on food tech, go check it out! Food Jungle approved ✅