Flowers Foods Considers Selling Off Brands in Comprehensive Review
Flowers Foods CEO Ryals McMullian has announced a “comprehensive review” of the company’s operations, supply chain, and financial strategy. This could potentially lead to the sale of certain brands in the company’s portfolio. The review is still in its early stages and is expected to take several years to complete. Other potential changes include plant closures, the use of artificial intelligence, and efforts to boost demand for key brands like Nature’s Own.
Despite strong performance in cakes and premium offerings, Flowers Foods continues to face challenges in its traditional loaf business, which is underperforming compared to the overall category. Consumers are increasingly opting for lower-priced branded items, impacting the company’s sales in this segment.
In addition to well-known brands like Nature’s Own and Wonder, Flowers Foods also owns Dave’s Killer Bread and Simple Mills, which offer healthier alternatives made from recognizable ingredients. The company plans to invest more in innovation to revitalize demand for traditional loaves and Nature’s Own.
Flowers Foods reported net sales of $5.3 billion in fiscal year 2025. The company recently took a $136 million noncash impairment charge related to its intangible assets, reflecting a lower-than-expected outlook for certain brands. However, no further impairments are expected, as the company focuses on brands with growth potential and meeting customer needs at various price points.
Overall, Flowers Foods is navigating a changing market landscape and is proactively addressing challenges to ensure future growth and success.