The Kroger Co. (Kroger), the American largest grocery store chain, plans to launch new edible items for the vegan consumers as the demand for meat substitute products has significantly increased. Several other food processing companies have started their operations in veggie-based products business due to the growing trend of consumers’ demand.
Kroger’s New Meatless Food Items
As the company officials said Wednesday, January 8, 2020, “Kroger is launching a new private-label vegan ground beef and burger patties as it seeks to capitalize on growing consumer demand for plant-based meatless substitutes.” In addition to Kroger, several other companies including meat producers such as Smithfield and Hormel, and giant food-producing companies such as Kellogg have started its operations on the production of veggie-food items. The companies including Beyond Meat and Impossible Foods have already carved their presence in the veggie-food items business.
The grocery chain has proceeded to create its own version of veggie items which has a taste of real meat flavor. Joe Grieshaber, Kroger’s senior vice president of merchandising, said in a statement, “Kroger anticipates interest in plant-based products to continue to grow in 2020, with the category being one of the key drivers of our natural and organic sales.” Kroger’s Wednesday plan was a part of its announcement made in September 2019 to launch plant-based products under its Simple Truth brand.
Kroger’s Brand; Simple Truth launched
Kroger launched its new brand, Simple Truth to facilitate the production of natural and organic foods. The brand will provide organic products in categories including grocery, meat, produce, deli, bakery, baby, household items, and personal care. For the initial products, Kroger’s Simple Truth included vegan cookie dough, oat milk, and meatless deli slices. In addition to these products, the company plans to expand an additional 50 plant-based items in 2020.
As revealed by Reuters, “The new meat-free ground beef and burger patties made with pea protein will be a part of Simple Truth Emerge, a plant-based meat extension of its organic Simple Truth line, which grossed more than $2.3 billion in sales in 2019.” As shown in the company’s website, Kroger owns nearly 2,800 grocery stores in 35 states in the US in which these stores comprise more than 24 chains including Ralphs, Dillons, Smith’s, King Soopers, City Market, Fry’s, QFC, and Harris Teeter. The introduction of meatless products could be a crucial factor for the expansion of Kroger’s business nationwide.
With the growing demand for meatless products, UBS Group, a US investment banking company, estimated, “U.S. grocery stores will sell $7.2 billion of meat substitutes by 2025, up from $750 million in 2018, as consumers eat less meat due to health or environmental concerns.” Kroger’s competitor, Beyond Meat usually received about half of its revenue from grocery store sales and the rival company, Impossible Foods started its operation in the selling of grocery stores in September 2019. Kroger’s new plan of introducing the veggie products aims to compete in the emerging meatless business.
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