Hummus craze spreads across America
The popularity of the high-protein, low-fat food means increased demand for domestically grown chickpeas.
The boom is on and some U.S. farmers are falling all over themselves to plant this ancient legume that just happens to be a main ingredient in one of the country's fastest growing food crazes.
The legume? The lowly chickpea. The food craze? Hummus -- that creamy, low-fat, Middle Eastern-inspired spread that is quickly replacing French onion dip on the tables of health-conscious Americans everywhere.
Now, according to The Wall Street Journal, the largest U.S. hummus maker is trying to get farmers in the heart of Virginia's tobacco country to grow chickpeas as a secondary source of supplies in case of a crop failure in the Pacific Northwest, where most domestic chickpeas are grown today.
Sabra Dipping Co., jointly owned by PepsiCo Inc. (PEP) and Israel's Strauss Group Ltd., wants to develop a product source close to its hummus plant near Richmond, as well as be geographically near enough to help in the identification of new chickpea varieties for its dips and spreads.
"We need to establish the supply chain to meet our growing demand," Sabra's chief technology officer, Tulin Tuzel told The Wall Street Journal. "We want to reduce the risk of bad weather or concentration in one region. If possible, we also want to expand the growing seasons."
Hummus, long a staple of Middle Eastern cuisine, is low in fat and high in protein. Because of that, hummus sales have dominated the "refrigerated flavored spreads" segment of the food industry to the tune of $530 million last year. This represents an 11% bump from 2011 and a 25% jump over 2010, according to market-research firm Information Resources Inc.
With those kinds of sales figures, PepsiCo isn't the only big food company showing an interest in chickpeas and hummus. Kraft Foods (KRFT) now owns Athenos, another big hummus brand.
IRI data show Sabra's hummus sales in 2012 were up roughly 18% at about $315 million. However, some retailers, such as Costco Wholesale (COST), don't provide information to IRI, so the figures understate Sabra's retail sales.
As demand for hummus grows, so grows demand for chickpeas. Last year chickpea farmers received an average price of 35 cents a pound for their crop, representing a 10-cent increase over the mid-2000s, according to the U.S. Department of Agriculture.
Chickpeas are a tiny crop compared to corn or wheat. Last year's U.S. harvest, however, totaled a record 332 million pounds, up 51% from the previous year.
The USDA expects U.S. farmers to plant a record 214,300 acres of chickpeas this year, up 3% from last year and a fivefold increase over a decade ago.
As of this writing, Jim Probasco had no position in any mentioned securities.
More from Benzinga
I thought we could raise plenty of soybeans here, many other beans and alfalfa sprouts
Chick peas and hummus my azz.....
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Growth came in below expectations, but that's just evidence of how far the economy has come.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.