Flowers Foods, Inc. (NYSE: FLO) has recently completed the acquisition of Simple Mills, a prominent brand offering premium better-for-you crackers, cookies, snack bars, and baking mixes. This acquisition is expected to enhance Flowers Foods' presence in the better-for-you and snacking segments, diversify its category exposure, and improve growth and margin prospects.
As of 2024, Flowers Foods reported net sales of $5.1 billion, solidifying its position as one of the largest producers of packaged bakery foods in the United States. The company operates bakeries across the country and boasts a portfolio of popular brands, including Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse, and Tastykake.
On the other hand, Simple Mills, founded in 2012, has established itself as a leading provider of better-for-you snacks and baking mixes made with simple and nutritious high-quality ingredients. The company has achieved significant success in disrupting center-aisle grocery categories and has secured distribution in over 30,000 stores nationwide.
The acquisition is expected to support Simple Mills' growth by expanding distribution, accelerating innovation, and amplifying brand awareness, aligning with Flowers Foods' mission to revolutionize the way food is made to nourish people and the planet.
This acquisition represents an important strategic move for Flowers Foods, positioning the company to capitalize on the growing demand for better-for-you and natural food products. It signifies an opportunity for Flowers Foods to further strengthen its market position and drive future growth in the competitive packaged bakery foods industry. Today the company's shares have moved 2.1% to a price of $19.48. For more information, read the company's full 8-K submission here.
