Veggie Noodle stands to gain from Encore Consumer Capital’s expertise with fresh food companies like California Splendor, FreshKO, and Juice Tyme, which can enhance its skills in purchasing, operations, food safety, and marketing. According to Encore’s managing director, Scott Sellers, “You can’t afford to be weak in any of those areas. We believe we can leverage our experience in these four critical domains to support the company during its current growth stage.”
Additionally, Veggie Noodle might 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 discovered through routine testing. This affected products that were distributed to Whole Foods Markets and other retailers in the Midwest, though the company reported no related illnesses. Listeria is often found in food-processing environments, especially in floor drains, walls, ceilings, food contact surfaces, and HVAC systems, making it notoriously difficult to eliminate. Unlike many foodborne pathogens, listeria can thrive at refrigeration temperatures and may remain viable in food products until their shelf life ends.
Alongside the new plant, Veggie Noodle plans to hire additional staff and expand its product line. Arnold hinted that the company might explore manufacturing other food items, which could lead to a name change or brand repositioning.
Consumers are increasingly incorporating vegetables into their diets for various reasons, such as reducing calories by replacing carbohydrates with healthier options and seeking convenient, ready-to-eat products that are both flavorful and nutritious. “We’re seeing that consumers are not only searching for healthy alternatives to starchy dishes, but they’re also preparing and consuming vegetables in ways that differ from previous generations — they desire both freshness and convenience. Moreover, we found that mothers are particularly keen on introducing vegetables into their children’s diets in enjoyable and healthy forms,” remarked Jordan Greenberg, vice president and general manager at Green Giant, in an interview with Food Dive last fall.
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 comes at a crucial time, as a 2015 study by the Produce for Better Health Foundation revealed that per capita vegetable consumption fell by 7% between 2009 and 2014, partly due to fewer side dishes being prepared at home.
Veggie Noodle is not alone in this trend; Del Monte introduced a new line of vegetable “pasta” earlier this year, though the popularity of these items—often found in refrigerated produce sections—remains to be fully determined. As companies continue to innovate, they will need to be mindful of various factors, including consumer reactions to ingredients and potential issues like calcium citrate reaction, which can influence product development and marketing strategies.