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Flowers Foods Acquires Simple Mills in $795 Million Deal
Flowers Foods, known for its iconic Wonder bread, has announced the acquisition of better-for-you snacks maker Simple Mills for a whopping $795 million. This strategic move is set to enhance Flowers Foods’ growth prospects and diversify its product portfolio with the addition of crackers, cookies, snack bars, and baking mixes.
Key Points:
- Simple Mills, founded in 2012, is a premium producer of better-for-you snacks, with 2024 net sales reaching $240 million, representing a significant 14% growth from the previous year.
- Flowers Foods, based in Georgia, is expanding into trendy food segments and sees the acquisition of Simple Mills as a step towards catering to evolving consumer preferences.
Strategic Expansion into Better-for-You Snacking
As consumer demand for healthier snack options continues to rise, Flowers Foods’ acquisition of Simple Mills not only diversifies its product range but also strengthens its presence in the snacking category. While Flowers Foods’ current snacking portfolio features indulgent brands like Tastykake and Mrs. Freshley’s, Simple Mills offers a range of snacks made with healthier and recognizable ingredients.
Simple Mills’ products, such as their Chocolate Brownie Seed & Nut Flour Sweet Thins, are crafted with nutrient-dense ingredients like watermelon seed flour, cashew flour, sunflower seed flour, and flax, appealing to health-conscious consumers.
Flowers Foods sees the acquisition as an opportunity to tap into the growing demand for better-for-you snacks and expand its distribution, accelerate innovation, and explore new segments and categories for future growth.
Future Growth and Leadership
Following the acquisition, Simple Mills will operate as an independent subsidiary of Flowers Foods, with founder and CEO Katlin Smith continuing to lead the company. The decision to retain Simple Mills’ existing leadership team is aimed at preserving the brand’s innovative spirit and driving further growth in the better-for-you snacking space.
With Simple Mills’ strong market presence and potential for expansion, Flowers Foods is confident in the brand’s ability to resonate with mainstream consumers and drive future growth in the competitive snacking market.
Overall, the acquisition of Simple Mills marks a strategic move for Flowers Foods to capitalize on the growing demand for healthier snack options and strengthen its position in the evolving food industry landscape.