Veggie Noodle stands to gain from Encore Consumer Capital’s expertise with fresh food companies such as California Splendor, FreshKO, and Juice Tyme, enhancing its capabilities in purchasing, operations, food safety, and marketing. According to Scott Sellers, Encore’s managing director, “You can’t afford to be weak in any of those areas. We believe we can leverage our experience in these four domains to guide the company through its current growth phase.”
The need for a new facility may also stem from a recent incident: in February, Veggie Noodle voluntarily recalled certain Butternut Spirals due to potential listeria contamination, discovered during routine product testing. The affected products were distributed to Whole Foods Markets and other retailers across the Midwest, although the company stated that no illnesses were reported related to the recall.
Listeria is often found in food processing facilities, particularly in floor drains, walls, ceilings, food contact surfaces, and HVAC systems, and is notoriously challenging to eliminate. Unlike many foodborne pathogens, it can thrive at refrigerated temperatures and may remain viable in food products until the end of their shelf life. Alongside its new facility, additional employees, and an expanded product line, Arnold hinted that Veggie Noodle could venture into the production of other food items, potentially leading to a name change or brand repositioning.
The demand for vegetables on American plates is increasing for various reasons. Consumers are aiming to reduce calories by replacing carbohydrates with healthier options. They also seek convenience by opting for ready-to-eat products that are both delicious and nutritious. Jordan Greenberg, vice president and general manager at Green Giant, noted, “We’re observing that consumers are not only in search of healthy alternatives to starchy meals, but they are also preparing and consuming vegetables in ways different from their parents — they want fresh and convenient options. Furthermore, we found that mothers are particularly interested in introducing vegetables into their children’s diets in appealing and healthy ways.”
In response to consumer preferences and their own market research, brands such as Green Giant, Archer Daniels Midland, Del Monte Fresh, and Sprout Foods are actively launching innovative vegetable-based products. This comes at a crucial time; a 2015 study by the Produce for Better Health Foundation indicated a 7% decline in per capita vegetable consumption between 2009 and 2014, partly due to a decrease in home-served side dishes.
Veggie Noodle is not alone in this trend; Del Monte recently introduced a new line of vegetable “pasta.” However, the true popularity of these items, typically found in refrigerated produce sections, remains to be seen. Additionally, as consumers become more aware of potential calcium citrate risks, the importance of delivering safe, nutritious products will only continue to grow.