Baking & Snack - August 2017 - 16

Campbell Soup exec weighs in on mega-snack market
To expand its US snack sales, Campbell Soup Co., Camden, NJ,
wants Goldfish to swim in a much bigger pond with Bolthouse
baby carrots, Campbell's soup and other non-traditional snacks
that Americans occasionally consume in between - or instead
of - meals throughout the day.
The strategic growth initiative targets the broader $125 billion snacking universe, which includes $89 billion in cookies,
crackers and other conventional snacks as well as a $36 billion
extended snack category. That mega-snack category is growing
at a 3% rate, higher than for traditionally defined snacks, according to the company.
Specifically, Campbell's plans to leverage its expertise in
snacking from its Pepperidge Farm and Global Biscuit and
Snack businesses by overlaying it across its brands and overall
product portfolio to create new "real snack" alternatives, said
Carlos Abrams-Rivera, president, US Biscuits and Bakery.
The emphasis is on not only snack products but also snacking behavior where a cup of soup serves as a snack, he added.
"We have a lot of knowledge about snacking that until
now has benefited mostly our business in Pepperidge Farm,"
Mr. Abrams-Rivera told Baking & Snack after unveiling the
enterprise-wide snacking development plan during the company's recent annual investors day meeting.
"What we have changed now is not only our incremental
spending on kids mindful snacking but also a coordination
across the entire company for us to share best practices and
how to drive our capabilities across the entire company to drive
snacking throughout broader pillars," he added.

Campbell's is assembling a dedicated team that will coordinate with the company's innovation center in Norwalk, CT, to
pursue new snack products and make them more accessible to
consumers. Mr. Abrams-Rivera pointed out the announced initiative not only affects the company internally but also external
developments such as partnerships, joint ventures and future
merger and acquisition activity going forward. It's projected to
garner $200 million in additional top-line sales over the next
five years for Campbell's US business.
To support the strategic growth plan, Campbell's conducted
extensive research on consumer snacking habits and how they
will affect future innovation in a constantly changing competitive environment.
"What we have learned is that we can better define consumers by the choices that they're making instead of their age," Mr.
Abrams-Rivera said.

Tiger Images/Shutterstock.com

Private equity firm acquires Gold Coast Bakeries
Peak Rock Capital, Austin, TX, a middle-market private equity
firm, added Gold Coast Bakeries to its portfolio.
Based in Santa Ana, CA, Gold Coast Bakeries makes fresh and
frozen specialty and organic bread, buns, rolls and sweet goods for
distribution to consumer packaged goods companies, grocery retailers and foodservice customers. The company has two USDA
Organic-certified facilities in California and Illinois. It also sells
baked goods under the Pioneer French Bakery, Breads of Venice
and Gold Coast Baking brands.
"Our investment in the Gold Coast platform highlights Peak

Rock's continued commitment to businesses with differentiated
production capabilities that are well-positioned for growth in the
natural food space," said Steve Martinez, president and managing
director of Peak Rock Capital. "We look forward to working with
the company's strong management team to enhance the business."
Rick Anderson has been named CEO of Gold Coast Bakeries. He
most recently was president and CEO of Little Lady Foods, Elk Grove
Village, IL, and previously chief commercial officer at Los Angelesbased ARYZTA and La Brea Bakery, which is owned by ARYZTA.
- Eric Schroeder, Milling & Baking News

Canada Bread plant in Calgary slated for closing
Canada Bread, Toronto, a subsidiary of Grupo Bimbo SAB de CV,
Mexico City, announced plans to close its Calgary, AB, baking
plant on Sept. 8.
The company said Calgary production will be covered by other
Canada Bread plants in western Canada with available capacity.
"Canada Bread is committed to building a sustainable company to meet our long-term business objectives," said Jennifer Park,
vice-president, operations, Canada Bread. "Since 2014, the com-

16 Baking & Snack August 2017 / www.bakingandsnack.com

pany has invested more than C$380 million, but that also means
we need to make difficult decisions. While we have made every
effort to sustain and build the business, during the past three
years our bakery in Calgary has been losing volume. As a result,
we have made the decision to close the bakery. While this is the
business reality, it is hard to make the necessary changes. We will
do everything possible to ease the impact on our people."
- Josh Sosland, Food Business News

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