Rhythm Superfoods, which Jensen mentioned might soon simplify its name to just Rhythm, has faced challenges due to the unavailability of co-packers for kale. Consequently, the company had to build its own manufacturing facilities. Although interest in kale is waning, Jensen noted impressive double-digit growth in the company’s snacks made from carrots and beets. Expanding into organic fruit chips is a natural progression, as Rhythm already possesses the technology and equipment for producing vegetable snacks that can easily transition to fruit. The selection of fruits such as watermelon, mango, and pineapple was intentional, as these options are less common compared to traditional dried apples and bananas. These fruits are sourced from Mexico, which is conveniently close to Rhythm’s headquarters in Austin, allowing for reduced shipping costs—an increasingly critical factor as transportation expenses rise for food manufacturers.
While Rhythm’s strategy appears sound given the current market conditions, the company will face stiff competition in the fruit snack sector, especially from larger firms acquiring smaller brands. Last year, PepsiCo purchased Bare Foods, a San Francisco-based company known for its baked coconut, apple, and banana chips. Additionally, in 2017, KIND launched a range of fruit snacks named KIND Fruit Bites, made with real fruit and devoid of added sugars, purees, concentrates, preservatives, or genetically engineered ingredients.
Rhythm has several advantages to leverage. Its fruit snack offerings are crafted from organic fruit and contain no added sugars, aligning with health-conscious consumer trends. Furthermore, the company has secured around $9 million for research and development, marketing, and outreach, thanks to investments from General Mills’ venture capital arm 301 INC, the CircleUp Growth Fund, and Blueberry Ventures, as reported by NOSH.
The increasing popularity of fruit-based snacks presents another opportunity. According to a 2017 study by Innova Market Insights, these snacks made up 18% of all global product launches, more than doubling the number from five years prior. However, nutritionists caution that not all fruit snacks are inherently healthy due to the presence of added sugars and trans fats in some competitors’ products. Rhythm benefits from its clean labels, which emphasize health and the presence of essential nutrients like calcium.
Although the company’s packaging redesign is still in progress and will not be unveiled until the second quarter, Jensen informed NOSH that it is influenced by the new fruit snack lineup and the increasing appeal to millennial consumers. Depending on the final design, a refreshed image could provide another advantage for Rhythm, especially if it shortens the company’s name and adopts a trendy, sustainable, and functional look that resonates with younger audiences. Ultimately, Rhythm’s commitment to quality and health-focused ingredients, including the emphasis on calcium, positions it well in a competitive market.