Baking&Snack - October 2012 - 22

news
Flowers eyes new markets for growth
Flowers Foods, Inc., Thomasville, GA, has only begun to tap the potential to build its presence in the new geographic markets it entered in recent years, said George E. Deese, chairman and CEO. Mr. Deese spoke early last month at the Barclays Back-to-School Conference in Boston, MA. His presentation, offered together with Steve Kinsey, executive vicepresident and CFO, focused on Flowers Foods’ growth strategy. Today, Flowers’ geographical footprint reaches 70% of the US population compared with only 38% in 2005, Mr. Deese said. The company’s most recent acquisition of Lepage Bakeries, Auburn, ME, earlier this year gives Flowers coverage throughout the Eastern Seaboard, “from Key West in Florida to the northern tip of Maine,” Mr. Deese said. Flowers currently holds a 10% market share of brands in the US and 2.5% of store brands, Mr. Deese said. Mr. Deese used the 25% market share in the South as a “bar” or target toward which to aspire in other markets. “We have significant room to grow our share by leveraging the power of our brands and the effectiveness of our distribution system,” he said. Market share in many of the geographies Flowers entered in recent years is modest, but Mr. Deese expressed confidence growth would come. “We’ve proven we can do that as we leverage the power of our brands and operating strategies,” he said. Elements in those strategies include acquisitions and new products. Flowers’ Nature’s Own also has been an engine for growth at the company. The brand has grown by double digits with great consistency since it was introduced in the late 1970s, Mr. Deese said. “Nature’s Own is approaching the $1 billion mark at retail value, and the growth continues,” he said. “Our strategy has been to acquire independent bakers as we grow. Typically these bakers have a strong regional white bread brand, and we’ll layer on top of that Nature’s Own to the acquired distribution system.” Mr. Deese expressed great enthusiasm for recently acquired Lepage Bakeries. In addition to generating $170 million in annual sales, bringing an additional 18 million consumers into the Flowers market and operating three “very efficient bakeries,” Mr. Deese said the business has “a strong heritage in baking and operating strategies.” “They have the latest in technologies,” he continued. “They offer fine-quality products, and they have an experienced team. Their operating margin is among the highest in the industry. In other words, Lepage is best-in-class in the baking industry, and we’re proud they’re with us. And we’re excited about that the growth that we will continue to have in New England and as we stretch from our Tasty Baking home base of Philadelphia through the Northeast.” — Joshua Sosland, editor, Milling & Baking News

Compostable packaging debuts at baseball game

ToolBox sponsors BMW tour at iba

BASF Corp., Florham Park, NJ, partnered with the Seattle Mariners to debut the prototype of its biopolymer technology in the form of a bag of peanuts. The flexible packaging, made with biopolymers, is 100% compostable. The first 10,000 fans to arrive at the Seattle Mariners’ Safeco Stadium for a Sept. 5 game against the Boston Red Sox received a free bag of peanuts in the compostable snack bag.
BASF

ToolBox Bakery Solutions, St. Paul, MN, sponsored a memorable evening at the BMW World facility during the iba trade fair in Munich, Germany. ToolBox, in cooperation with ABA and BEMA, hosted a VIP tour of the carmaker’s architecturally advanced showplace, BMW exhibition and auto delivery area. The structure itself has won numerous awards for its “whirlwind” design and suspended walking bridge, which depicts BMW’s journey from past to present and future. Besides getting up close to the latest and greatest of BMW’s autos, guests from the US, the Caribbean, Europe and the Middle East got to view the delivery area where up to 120 cars are ceremoniously presented to their new owners every day. “The ToolBox event at BMW World was a world-class event and one of the highlights during my time at iba,” said Ed Fay, BEMA chairman. “The evening brought together bakers and suppliers at a world-class facility for exceptional networking and dining.”
ToolBox Bakery Solutions

/ Baking & Snack / October 2012

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Baking&Snack - October 2012

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