Behind The Development Of Misfits Markets’ Upcycled Bread Line
Many things have the potential to keep retail product developers awake at night. One of those is a phone call saying a key supplier is ceasing operations and will be unable to fill existing purchase orders.
That scenario happened to Morgan Drummond, senior director of Private Label at Misfits Market, as she was traveling to Natural Products Expo West in 2024.
“It was so sudden and really left us in a lurch for bread for our private label assortment,” she said. “We have a curated assortment so every product we have plays a very specific and important role in our selection.”
But Drummond and the Misfits team made lemonade out of lemons and a meeting at Expo West just days later led to the creation of Misfit’s recently launched upcycled bread line for its Odds & Ends private label.
As previously reported by Store Brands, the new breads were created through a partnership with Misfits and Upcycled Foods (UP, Inc.) and are made from scratch and feature ReGrained SuperGrain, UP Inc.’s flagship upcycled ingredient that is blended with sourdough from bakery ingredient supplier Puratos.
The partnership came about following an initial conversation Drummond had with Dan Kurzrock, founder and CEO of UP, Inc., following a presentation at Expo West.
Recently, Store Brands caught up with Drummond to talk about the new bread assortment and how the product line fits with Misfits’ broader sustainability goals.
STORE BRANDS: How long was the product development process?
MORGAN DRUMMOND: It took us about eight months from start to finish.
SB: The new bread line sounds like it fits perfectly with the overall thought process at Misfits.
MD: Exactly. With our private label program, we want to find opportunities where we can offer unique attributes but in our own place. Not only are all of our private label products going to have clean ingredients, but where possible, such as in the instance of these breads, we are taking the initiative to find ways to support food waste reduction efforts, such as utilizing upcycled ingredients. We are putting ourselves out there as a resource to the CPG industry and telling manufacturers that we are nimble and flexible, and we are walking the walk instead of just talking the talk when it comes to our commitment to making high-quality food affordable and accessible.
SB: Is it more challenging to develop products when using upcycled ingredients?
MD: There is some nuance to it. To gain certification you do have to meet a certain threshold of the total formulation typically being 10% or more of upcycled ingredients. It’s a benchmark to pay attention to as we’re developing products. With the bread, we wanted to find a nice balance and not have the products be too hardy in flavor, which sometimes happens when using upcycled grains. We are committed to achieving certification for our products, but we also want to adhere to the typical taste preferences of the wider population.
SB: Are there subtle differences in taste or are the new breads close to what someone expects from a typical white bread or other well-known flavor profiles?
MD: The breads are pretty unique in their flavor, but they’re not as hardy or wheat-forward as a 100% whole wheat bread. There is some complexity from the upcycled ingredients and that helps with the texture as well. They have a really nice bread structure.
SB: For the Misfits Market core customers, is a product such as the new bread line something they’re looking for? Clearly, they want a product that tastes good, but do they also like the fact the product they’re purchasing is good for the environment?
MD: I think so. We have seen that as a success story. Not just with the breads, but with other items we carry as well. We have some interesting produce along with meat and seafood recipe stories, and those are indicators of the type of customer we are attracting. We see data that shows Gen Z is having a greater impact at retail. They vote with their dollars for what resonates with their personal values. They will support companies and brands that authenticate what they value themselves. Our marketing team also does a great job of telling our stories and giving people a peek behind the curtain at what makes our products special and unique.
SB: What impact do you think the new bread line will have on the broader conversation about using upcycled ingredients?
MD: No matter the retailer, there are ways for each to leverage their core values and their mission with their own brand products. They need to ask, ‘What would that look like for us?’ and ‘How can we act on that?’ Otherwise, it’s just a rat race that’s all about price and that’s not what private label is anymore. There are so many sides to sustainability and upcycling is just one aspect of it.
