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Could growing demand for healthy food combined with new, fresh egg-friendly dietary guidelines push the category even higher?

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During the 12 weeks ended June 14, total fresh egg sales shot up 40.4% (versus the same period a year ago) to $1.76 billion, reports Chicago-based market research firm IRI (iriworldwide.com). Among the top 10 brands, both Cal Maine Sunups and Dutch Farms registered triple-digit gains while Sauder’s Eggs, Happy Egg Co., and Vital Farms all came close. (Austin, Texas-based Vital Farms, the second-largest U.S. egg brand by retail dollar sales and the leading pasture-raised egg brand, fi led for an initial public offering with the SEC on July 9. To learn more, check out the story on our website: https://frbuyer.com/2020/07/vital-farms-is-going-public/.)

Eggland’s Best introduces a trio of frozen omelets made with its “nutritionally superior” specialty eggs.

“As consumers become accustomed to this new normal at home, they’re trying to find new ways to eat and stay healthy,” says Dan Arnsperger, CEO of Rogers, Ark.-based Happy Egg Co. (happyegg.com). “Eggs are a healthy item that we’ve seen consumers really lean on – so much so that they’ve become a weekday staple in many households during these times.”

Last month’s release of the U.S. Dietary Guidelines Advisory Committee’s Scientific Report is expected to give the category an added boost. In a historic first, the committee recommended eggs as an important first food for infants and toddlers (to help reduce the risk of developing egg allergies), as well as for pregnant and lactating women, children and adolescents. The report also highlighted the importance of choline, a nutrient plentiful in eggs but under-consumed by most Americans.

Between the new guidelines and a continued surge in COVID-19 cases, industry observers don’t see egg sales declining anytime soon. “Volume sales of eggs at retail remain about 11.4% higher than usual, and we expect this trend to continue for the foreseeable future as long as COVID-19 conditions persist and people are preparing most or all of their meals at home and baking more,” says Marc Dresner, director of marketing and communications for the American Egg Board (aeb.org), Chicago.

ETHICALLY RAISED EGG SALES SOAR

Thanks to growing interest in animal welfare, Americans are buying more ethically raised, cage-free eggs. So although conventional fresh eggs represented 87% of category volume for the week ending June 13, according to syndicated data supplied by AEB, sales of non-conventional varieties are growing much faster.

The pasture-raised Utopihen collection includes Original, Organic and Soy-Free varieties as well as high-protein Duck Eggs.

For the 52 weeks ended June 14, reports IRI, total egg sales were up 4.2%, but sales of eggs labeled pasture-raised soared 39.8%; free range, 16.7%; organic, 7.9%; and cage-free, 5.6%. Industry observers say organic growth was likely constrained by limited supply while modest gains in the cage-free segment suggest growing awareness on the part of consumers that cage-free isn’t what they thought it was.

But according to Matthew Sherman, chief marketing officer at Franklin, N.Y.-based Handsome Brook Farms (handsomebrookfarms.com), there’s still plenty of confusion over the various types of specialty eggs. “Once consumers opt into the category, they have a hard time understanding and differentiating between the various standards –– cage-free, free range, pasture-raised, non- GMO, organic, etc. The result is that they often believe they are purchasing a product that is wildly different from the one they actually bought.”

To help educate consumers on the differences, Handsome Brook Farms is running its first major ad campaign across its main trading area. Dubbed “The Obvious Choice,” the campaign reminds consumers that “only the combination of both organic and pasture-raised eggs gives them both the welfare and sustainability that they are looking for,” Sherman says.

He adds that he believes increased demand for organic and pasture-raised eggs will likely be one of the longer-lasting effects of the pandemic. “Consumers will continue prioritizing their values around animal welfare over price, even in times of uncertainty,” he explains.

Happy Egg’s Arns-berger agrees, citing a sharp increase in sales of the company’s Free Range Organic Eggs. In fact, he adds, after noticing a gap in the market for a super-premium option, the supplier recently launched Blue + Brown Heritage Breed Free Range eggs. “We found that once consumers were aware there was a higher-end, more ethical choice, they were more than willing to trade up for eggs that not only tasted great and elevated their favorite dishes but aligned with their core values,” he explains.

Beyond the USDA certified organic seal, many ethical egg producers are pursuing additional third-party certifications. For example, New Holland, Pa.-based Utopihen Farms (utopihenfarms.com) recently debuted a line of certified-humane, 100% pasture-raised eggs produced by small family farms that own their own flocks – an important distinction among consumers that also support local farmers. The range includes original, organic and soy-free pasture- raised eggs as well as pasture-raised duck eggs with extra protein, reports marketing and brand specialist George Weaver IV.

Although a pandemic isn’t necessarily a great time to roll out a new line, because of supply issues and out of stocks on some products, “COVID introduced new consumers to the [pasture-raised] category… and an expanded consumer base to our brand,” says Weaver.

Another company jumping on the ethical eggs-plus bandwagon, La Farge, Wis.-based Organic Valley (organicvalley.coop), just relaunched its Omega-3 line of shell eggs under the new “Smart Eggs” brand, which began shipping nationwide earlier this month. “New packaging provides a cleaner look and feel versus other brands on shelves,” says brand manager Dan Kubiak. “It also communicates the role of Omega-3 and DHA in supporting brain health.” Smart Eggs contain three times the Omega- 3 and DHA as conventional eggs, he notes.

EGGS MADE EASY

In addition to fresh eggs, consumers are seeking more value-added egg products. While most leading suppliers now offer hard boiled eggs in one form or another, including grab-and-go snack size items, this year’s hot seller seems to be egg bites similar to those popularized by Starbucks. Monroe, N.H.-based Pete & Gerry’s (peteandgerrys.com) recently rolled out the industry’s “first and only” certified-humane sous vide egg bites under its Nellie’s brand (in Uncured Ham & Swiss, Broccoli & Cheddar and Uncured Bacon & Pepper Jack flavors). Meanwhile, Organic Valley is starting to distribute its organic egg bites (also billed as a category first) this month.

“Current trends really speak to the desire for more portability and convenience that is also healthy, high in protein and lower in sugar,” says Kubiak of the rationale behind the launch. Made with eggs from organic, free-range chickens, Organic Valley Egg Bites come in three varieties: Uncured Ham & Swiss, Sausage & Pepper Jack, and vegetarian Feta & Chives.

But egg bites aren’t the only convenient new egg-based product to hit stores. In the frozen aisle, Cedar Knolls, N.J.-based Eggland’s Best (egglandsbest.com) just debuted a line of frozen omelets, including Three Cheese, Ham & Cheese, and Sausage & Cheese varieties, all made with Eggland’s Best cage-free eggs.

“With many of the options in the frozen breakfast category being defined by the type of bread or meat featured, we saw an opportunity to provide consumers with an egg-forward option,” says Bill Curtis, managing director of special projects. “An omelet is the perfect dish to showcase EB’s nutritionally superior eggs, and providing a frozen omelet option allows people to conveniently enjoy a hot, great tasting breakfast.”

FRESH EGGS

Sales in supermarkets, drugstores, mass merchants, military commissaries and select club and dollar stores combined for the 12 weeks ended June 14, according to Chicago-based market research firm IRI (iriworldwide.com). Percent change is versus the same period a year ago.

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