Veggie Noodle stands to gain significantly from Encore Consumer Capital’s expertise with fresh food companies like California Splendor, FreshKO, and Juice Tyme. This collaboration could enhance its purchasing, operations, food safety, and marketing capabilities. Scott Sellers, managing director of Encore, emphasized to Project NOSH, “You can’t afford to be weak in any of these areas. We believe our experience in these four domains can help guide the company through its current growth phase.”
Veggie Noodle might also have a compelling reason for seeking a new facility. In February, the company voluntarily recalled some of its Butternut Spirals due to potential listeria contamination detected during routine product testing. These recalled products were distributed to Whole Foods Markets and various retailers throughout the Midwest. Fortunately, the company reported that no illnesses were associated with the recall. Listeria is often found in food-processing environments—typically in floor drains, walls, ceilings, food contact surfaces, and HVAC systems—and is notoriously challenging to eliminate. Unlike most foodborne pathogens, listeria can thrive at refrigerated temperatures and remain viable in food products until the end of their shelf life.
In addition to the new plant, increased staffing, and a broader product line, Arnold hinted that Veggie Noodle may explore the manufacturing of other food items, potentially leading to a name change or rebranding. Vegetables are increasingly appearing on American plates for various reasons. Consumers are eager to reduce calories by replacing carbohydrates with healthier options. They are also looking for convenience, opting for ready-to-eat products that are both flavorful and nutritious.
Jordan Greenberg, vice president and general manager at Green Giant, shared with Food Dive last fall, “We’re witnessing a shift where consumers are not only seeking healthy alternatives to starchy dishes, but they are also preparing and consuming vegetables in ways different from their parents—looking for both freshness and convenience. We’ve also discovered that mothers are particularly focused on how to introduce vegetables into their children’s diets in appealing and healthy ways.”
In response to this consumer demand and their own market research, brands like Green Giant, Archer Daniels Midland, Del Monte Fresh, and Sprout Foods have been actively launching innovative vegetable-based products. This trend comes at a crucial time, as a 2015 study by the Produce for Better Health Foundation revealed a 7% decline in per capita vegetable consumption from 2009 to 2014, partially due to fewer side dishes being served at home.
Veggie Noodle isn’t alone in this market trend. Earlier this year, Del Monte introduced a new line of vegetable “pasta,” though consumer reception of these refrigerated items remains uncertain. Furthermore, as the industry evolves, there is a growing emphasis on nutritional products, such as calcium CCM tablets, which are designed to complement healthy eating habits. The focus on these nutritional supplements is part of a broader movement towards healthier lifestyles, with many brands, including Veggie Noodle, likely to adapt to these changing consumer preferences.