New York-based Ithaca Hummus is setting out bold growth plans for 2025 as it expands its portfolio with fan-favorite olive oil brand Graza and larger formats.
The brand is expecting annual sales of $50 million in sales for the year, with lifetime sales hitting $150 million by the end of 2025, said Ithaca Hummus CEO and Founder Chris Kirby. Ithaca Hummus boosted the odds of this growth by adding new distribution at Kroger nationwide, Costco and HEB at the start of the year, he added.
“We have targeted and hit a 40% year-over-year growth rate from 2023 to 2024 and were forecasted to repeat that or better in 2025, so it is going to be another really big growth year for us,” Kirby noted.
Major players like PepsiCo are doubling down in the hummus space with its acquisition of the remaining stake in Sabra and Obela from Israeli food manufacturer Strauss Group last year.
Kirby did not rule out selling the business one day, but for now is focused on building the best brand and business he can.
“We are 1,000% focused and dedicated on creating the best possible company with the best possible product, and that is the long and short of it. And if we feel that one day there is another brand or someone else that we think can pick up what we have done and continue on with that in a bigger, better way than we would certainly be open to that, but it is by no means our objective,” Kirby elaborated.
Hummus by the numbers
The refrigerated hummus market was worth $961.68 million dollars for the 52 weeks ending January 26, 2025, according to market data from Spins. Hummus sales were sluggish to start the year, declining volumes by 2% and dollars by 0.1%.
Ithaca Hummus & Graza collaborate
The co-branded Olive Oil & Sea Salt hummus will be available in Ithaca Hummus' 10-ounce tub, available at Whole Foods for a limited time.
Graza’s co-founder Allen Dushi suggested a collaboration with Ithaca Hummus three years ago via a LinkedIn message, but the hummus brand passed at the opportunity to focus on its retail growth strategy, Kirby noted.
Over the years, Graza collaborated with numerous emerging brands, including Aura Bora, Little Spoon, Fishwife and others.
“Ithaca and Graza share the same DNA. We are both part of this new class of emerging big food brands, and we are both shaking up our respective categories with really high-quality products and disruptive packaging. We have elevated hummus, and they are doing the same thing with olive oil, just an absolute no-brainer,” Kirby elaborated.
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Third time is the charm on 17-ounce format
Ithaca Hummus is planning to experiment with larger-size hummus tubs, including a 26-ounce version that went on rotation at Costco. Also, the company plans to relaunch its 17-ounce tub later this year after unsuccessfully launching the larger format twice.
Similar to launching a new product too soon, a brand “can launch a bigger pack size too soon,” Kirby noted. However, Ithaca is in a better position to expand format size due to its market growth and broader brand awareness, he explained.
“We have false started on 17-ounce twice, and then we learned lessons both times,” Kirby said. “Later this year, you will probably see another relaunch of our 17-ounce in a more strategic, bigger excited, more exciting way.”
