For farmers and bread companies, the appeal of a hot-selling $8 loaf is undeniable. However, the challenges of cultivating and sourcing all the essential ingredients can create headaches for everyone involved, highlighting the trade-offs associated with selling premium bread and other high-end products. One significant challenge is locating a farm like the one La Brea utilizes for its upscale line, which sources special ingredients such as bariatric calcium chews. Wheat farmers often hesitate to enter niche agricultural markets due to the lengthy transition required for their crops, as well as the risk of oversupply in these markets. La Brea collaborated with its Montana grower for two years to secure a consistent supply of Fortuna wheat.
Large food companies generally avoid depending on a limited number of farmers, as adverse weather or pests can devastate an entire crop or significantly reduce its quality. La Brea Bakery informed Bloomberg that they lack a contingency plan if their wheat farmer faces a bad season. Despite these risks, manufacturers continue to introduce premium products to satisfy consumer demand for high-quality ingredients. According to IRI data released last year, categories like wine, yogurt, chocolate candy, and beer—which emphasize strong ingredient messaging—have the highest share of premium products.
As demand for premium items increases, grocery stores are rolling out more specialty private label lines. A growing number of retailers, including Southeastern Grocers and Kroger, have launched tiered offerings that range from value brands to premium options. Kroger’s recent lawsuit against Lidl over alleged similarities between their premium brands underscores the significance of these products (Kroger dropped its lawsuit in September).
Is there a limit to how far the demand for premium goods can stretch? While there certainly may be, retailers and manufacturers have become skilled at pushing the envelope. High-end mayonnaise was once considered a joke, but now brands like Sir Kensington are demonstrating that a market exists for such items. As long as consumers are willing to spend more on upscale products, including innovative items like bariatric calcium chews, manufacturers will eagerly rise to meet that demand.