Food companies are approaching the seed oil debate cautiously

The debate around seed oils is a new phenomenon. Google searches for “why are seed oils bad?” were practically nonexistent before 2021. They have steadily increased in the years since then, peaking at a 99% popularity rate in mid-November, the week after the U.S. presidential election. Some companies, like Sweetgreen, have been leaning heavily into the trend; the salad chain recently rolled out a seed oil-free menu. But emerging food brands are trying to find ways to broach the subject by catering to their anti-seed-oil customers in a nonpartisan way.

The most prominent strategy among brands is to launch a new product that’s free of any seed oils while keeping the core line as is and waiting to see how these new items perform. Meanwhile, brands that have long avoided seed oils are seeing more traction from retailers who aren’t necessarily looking for seed oil-free items but instead want to highlight premium ingredients, like olive oil and avocado oil.

At Expo West early this month, Cedar’s Foods, which is known for its hummus, unveiled its latest line, Cedar’s Reserve, which rolls out nationwide this week. The seed oil-free line of hummus is topped with Mediterranean restaurant-inspired flavors, like za’atar and pine nuts. The company’s core hummus line uses a blend of sunflower oil and organic extra virgin olive oil.

Grace Mulleavey, trade marketing and digital media manager at Cedar’s, was onsite to preview the Reserve line. When asked about the positioning, Mulleavey said the company isn’t leading the launch’s marketing language with an “anti-seed-oil” rhetoric. 

But it’s one way to appease the growing customer base whose ingredient preferences are shifting. “Consumers are increasingly prioritizing transparency and high-quality ingredients, and we’ve seen growing demand for products made with premium oils like olive and avocado,” she said, hence the introduction of the Reserve line. But the company’s emphasis will be less on the lack of seed oils and more so on the premium new ingredients.

The use of seed oil seems to be a big topic of conversation in the growing hummus category, in particular. And more brands are taking notice. At Expo West, Ithaca Hummus debuted a new collaboration, which consists of hummus made using Graza’s Olive Oil.

“This new Olive Oil & Sea Salt flavor is our answer to the controversial seed oil debate,” said Ithaca Hummus founder and CEO Chris Kirby. 

Ithaca Hummus’ other products, which use high oleic expeller pressed sunflower, will remain the same.

According to the company, the brand gets a fair share of customers inquiring about its oil use. Now the company can point to the Graza SKU for those wanting a seed oil-free product without overhauling a portfolio the company has built since 2013. The general idea is to cater to both preferences, as Ithaca Hummus is a national big brand that wants to be in every household’s fridge.  

“With the health trend we’re seeing with olive oil right now, we wanted it to be the star of the show,” Kirby continued. From the name to the bright green packaging to the taste, everything about the Graza collaboration “had to scream” olive oil, Kirby said.

Kirby previously addressed the debate around various oils on social media. In a LinkedIn post Kirby wrote, “There is nothing inherently wrong with seed oils as a category whatsoever,” but the way any oil is extracted from its source can be problematic, he said. “I’m tired of people exploiting viral misinformation, especially around topics that potentially impact our agricultural communities and overall human health,” he added.

Sophia Maroon, founder and CEO of Dress it Up, said the seed oil conversation is part of a bigger move toward better-for-you food that has taken off in the past decade. Dress It Up, which sells a line of olive oil-based dressing, was founded in 2012. At the time, Maroon said, the big hurdle was educating the customer on why her dressings cost $10 per bottle. “Most shoppers are used to paying about $3 for dressing,” she said.

At Expo West, Maroon was previewing some of her brand’s newest flavors, like green goddess and peach vinaigrette, which are rolling out at Whole Foods this month.

While some shoppers are still turned off by Dress it Up’s high price point, Maroon said the brand’s current retention rate is about 80%. She said the growing conversation around seed oils has, at the very least, brought on more support from retail buyers. 

“People are going to be turning away from seed oils more and more, and I think Whole Foods recognized that, which is why they expanded our line,” Maroon said. While retailers have been noting the shift for a few years, Maroon said the brand’s olive oil-focused products are gaining more traction. “The Whole Foods buyer specifically said that what she likes about the brand is that we don’t use seed oils,” Maroon said. 

Maroon said that, with the widespread interest in clean ingredients, emerging brands are expected to offer these premium products at accessible prices. “The one thing we have going for us is that older, more established companies have forgotten about innovation.” And while the seed oil conversation has been somewhat politicized, Maroon said, “Good health is nonpartisan.”