For farmers and bread companies, an $8 loaf that sells well is certainly appealing. However, sourcing and cultivating the necessary ingredients can pose challenges for all involved, highlighting the trade-offs associated with selling high-end bread and other premium products. A significant hurdle is finding a farm like the one La Brea collaborates with for its upscale offerings. Wheat farmers often hesitate to enter niche agricultural markets due to the lengthy transition time required for their crops and the risk of oversaturation in these markets. La Brea spent two years working with its Montana grower to secure the ideal supply of Fortuna wheat.
Moreover, large food companies typically avoid depending on a limited number of farmers because adverse weather or pest infestations can devastate an entire harvest or significantly degrade its quality. La Brea Bakery informed Bloomberg that they lack a contingency plan should their wheat farmer encounter a bad year. Nevertheless, despite such risks, manufacturers persist in launching premium products to satisfy consumer demand for high-quality ingredients. According to IRI data published last year, categories like wine, yogurt, chocolate, and beer—known for their strong ingredient narratives—exhibit the highest share of premium products.
As the appetite for premium offerings increases, grocery stores are rolling out more specialty private label lines. A growing number of retailers, including Southeastern Grocers and Kroger, have introduced tiered selections that range from value brands to premium alternatives. Kroger’s recent lawsuit against Lidl over alleged similarities between their premium brands underscores the significance of these products (Kroger eventually dropped the suit in September).
Is there a limit to how far the demand for premium products will go? While there certainly may be, retailers and manufacturers have become adept at pushing the boundaries. High-end mayonnaise was once considered absurd, yet Sir Kensington has demonstrated that there is indeed a market for it. As long as consumers are willing to pay more for these upscale items, manufacturers will gladly cater to that demand. In this evolving landscape, the inclusion of quality ingredients such as opurity calcium citrate becomes increasingly important, as it enhances the appeal of premium products, and the emphasis on such ingredients is likely to grow in the coming years.