Heinz ketchup rival files for Chapter 11 bankruptcy

Companies that produce certain natural, plant-based food products have struggled to generate adequate revenue and in some cases establish shelf space in mainstream grocery stores across the country since the Covid-19 pandemic.

Iconic retail food producer Atlantic Natural Foods LLC, which was established in 1890, sells its products in retail stores and markets its plant-based products on Amazon, including its Loma Linda brand Big Franks vegan hot dogs, plant-based canned Tuno fish and canned Chik’n, neat plant-based egg substitute, and caffeine-free coffee alternative Kaffree Roma.

Since 2019, the company’s plant-based food products have been found at various stores, such as Costco, Walmart, Target, and Aldi, according to the company. The company doesn't have store shelf space problem, as its products are available in over 25,000 stores in the U.S. and 30 other countries.

Atlantic Natural Foods filed for bankruptcy

Nashville, N.C.-based Atlantic Natural Foods, however, filed for Chapter 11 protection on April 7 to reorganize its business five months after terminating a pending merger agreement with Above Foods. The company did not state a specific reason for filing for bankruptcy.

The companies, which withdrew from a sale transaction on Nov. 1, 2024, blamed the global impact of the Covid-19 pandemic, supply chain disruptions, and rising food inflation as the key factors in their decision to cancel the deal.

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Those factors also likely impacted the Atlantic Natural Foods' revenues enough to force it to file for bankruptcy protection.

Another food company that uses natural sweeteners in its products was also forced into Chapter 11 bankruptcy, but ths company had difficulty maintaining shelf space in stores.

True Made Foods files for bankruptcy protection

Heinz ketchup rival True Made Foods Inc., the maker of naturally sweetened ketchup, barbecue sauce, and other condiments, filed for Chapter 11 bankruptcy after its products were dropped by major grocery retail chains like Kroger and Safeway post-Covid-19 pandemic.

The Alexandria, Va.-based manufacturer of sugar-free condiments filed its petition on Oct. 30 in the U.S. Bankruptcy Court for the Eastern District of Virginia, listing $500,000 to $1 million in assets and $1 million to $10 million in liabilities, RK Consultants reported.

True Made Foods, which was founded in 2015, manufactures and distributes condiments that are naturally sweetened with fruits and vegetables, including ketchup, mustards, barbecue sauces and rubs, and cayenne hot sauce.

True Made Foods products

• True Made Foods ketchup
• True Made Foods yellow mustard
• True Made Foods honey mustard
• True Made Foods Original barbecue sauce
• True Made Foods Carolina Red barbecue sauce
• True Made Foods Carolina Gold barbecue sauce
• True Made Foods rib rub
• True Made Foods pork rub
• True Made Foods all rub
• True Made Foods Cayenne hot sauce.

The debtor had raised over $6.9 million in funding to support the company's growth and reached its peak of distribution with placement in over 5,000 retailers, before the pandemic outbreak led to grocers, such as Kroger and Safeway, shifting shelf space to larger brands, according to RK Consultants.

Grocery stores featuring True Made Foods items

• Whole Foods
• Sprouts
• The Fresh Market

True Made Foods products are still available at retailers such as Whole Foods, Sprouts, and The Fresh Market, according to the company's website.

Among the debtor's largest creditors' claims is over $361,000 owed to Teton Promotion in Motion for an alleged breach of a distributor agreement.

Under the federal bankruptcy statute, all litigation is subject to an automatic stay while the bankruptcy case proceeds.

True Made Foods doesn't use granulated sugar

"We are revolutionizing America’s favorite condiments by using the sweetness of real fruits and vegetables instead of sugar," the company asserts on its website.

"The result is a naturally delicious flavor without compromise. By using True Made Foods, you are taking the first step in cutting out hidden sugar from your family’s dinner table," the company said.

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