Despite reported growing pains this year showing a faux burger giant losing steam, the record-setting $7.4 billion U.S. plant-based food market that includes North Bay companies is not dead.
Instead, one Petaluma vegan food producer that launched its line of alternative salami a few years ago has chosen to collaborate by teaming up with gift basket giant Harry & David of Medford, Oregon.
Renegade Foods’ salami and chorizo top off baskets offered as the “vegetarian charcuterie and cheese collection” ($105) and the “premium alternative meat charcuterie” ($75). This is a first for vegan meat in the gift baskets.
And the two companies plan to expand their collaboration, which may involve other alternative meats currently in trials, Renegade Foods CEO Iona Campbell said.
While the gift baskets are considered year-round offerings, Campbell believes more customers will tap into the unique collection for the holidays, as the total revenue in the last quarter of the calendar year makes up more than half of Harry & David’s business.
“Vegans around the holidays always face challenging times,” she said. The end-of-year holidays are often capped off with a feast that centers around a meat dish.
Last year, the chef by trade accumulated at least 25 wholesale accounts to sell her unique brand of plant-based meat alternatives, including the Good Earth Natural Foods in Marin County and Rainbow Grocery in San Francisco.
Campbell mentioned sales have been brisk, but Campbell declined to provide financial details for the privately held company.
She started the European-style vegan salami company in June 2019. Since then and despite COVID-19-related challenges that many companies have faced, she managed to eke out $300,000 in direct-to-consumer sales by mid-2021 and increased her staff from five employees to eight.
Campbell said she sees much growth potential in lining up with a 112-year-old company known nationwide for its unique gourmet food presentations.
“This is huge, not just for Renegade, but for the vegan movement in general,” Campbell said.
Harry & David management concurs.
“The demand for alternatives meat offerings has surged. We have been in the market for a vegan charcuterie vendor, and at the same time, Renegade made an inquiry with our brand, so it was a perfect match,” said Harry & David Senior Director of Merchandising Sierra Castellano.
Castellano expressed interest in furthering business arrangements with the Sonoma County vegan food company, which also has offices in Berkeley.
“We are going to be adding more plant-based and vegan products in order to provide our health-conscious shoppers with even more options,” Castellano said.
The senior executive mentioned it would also like to fulfill a hole in its baskets with a vegan cheese offering.
That declaration may represent the hallmark of new opportunity for Miyoko’s Creamery, another Petaluma plant-based food producer that reaped the benefits of a banner year in 2021 with a $52 million infusion of venture capital.
The company also made news by winning a First Amendment-inspired lawsuit that allows founder and CEO Miyoko Schinner to use the term “vegan butter” and cow images in its advertising.
To Schinner, the plant-based food industry has reached a critical plateau. But she is not discouraged by the recent struggles of one of the sector’s best known national brands.
Beyond Meat’s stock price has dropped 80% in the past year. Further, McDonalds, according to the New York Times, has flipped on including the vegan burger option on its menus.
To Schinner, the fallout is an example of a short-sightedness on how to market these products.
“It’s the industry’s and investors’ lack of understanding (about the market). They think ‘just go big,’ and that’s not it. I think that’s a big mistake,” she said.
Schinner insists the best returns will be gained from “targeting people” to buy the plant-based products.
“I don’t think it’s the average American going to burger joints,” she said.
Vegans and vegetarians represent a limited market. “Flexitarians” is the buzzword for consumers who are omnivores that lean toward healthy food options produced in an eco-friendly environment. Many plant-based food marketers are looking to them for expansion of their customer base.
That leaves the industry with much room to expand.