Krusteaz focuses on core baking mixes to drive growth
The US baking mix maker is focusing on its main product lines while using licensing deals to expand into new categories and channels.
USA – Krusteaz Co. is focusing on its core baking and breakfast mixes as it looks to sustain growth while expanding into new product categories through licensing partnerships.
Founded in 1932 as a maker of just-add-water pie crusts, Krusteaz has built a portfolio that includes pancake, waffle, baking and gluten-free mixes. The company operated as Continental Mills Inc. until September 2022.
Chief executive officer Andy Heily said the company continues to focus on categories where consumers take an active role in preparing food at home.
“The single most important thing, if I had to prioritize, is making sure that we’re continuing to invest in our core categories: big mix and breakfast mix,” Heily said in an interview with Food Business News.
Those two categories now account for about 90% of Krusteaz’s business. The company has recorded an average annual growth rate of about 7% since 2018. Heily attributed part of the growth to the company leaving some less strategic businesses and the rise in home cooking during the COVID-19 period.
Heily also pointed to Krusteaz’s family ownership as an advantage in making long-term business decisions.
“I feel blessed to be running a privately held family-owned business because we are able to think in generations, not quarterly analyst reports,” he said.
Krusteaz has also used licensing agreements to expand beyond its main mix categories. Its long-running partnership with Ghirardelli Chocolate Co. helped the company enter chocolate-based baking products, including brownie and cookie mixes. The partnership has since expanded into refrigerated cookie dough.
The company has followed a similar model with Red Lobster Seafood Co. The partnership has produced Red Lobster Cheddar Bay Biscuit mixes for more than a decade and later moved into frozen ready-to-bake biscuits.
“We really want to meet consumers wherever they are,” Heily said. “They’ve got a pantry, a freezer and a refrigerator, and we want to participate in every relevant spot in their life.”
Krusteaz has also expanded its presence in snacks through WildRoots trail mix, which started nearly 17 years ago as a limited product in Canadian Costco stores. The brand now sells across Costco stores in North America and Sam’s Club.
Heily said the company sees room to take WildRoots beyond club stores into grocery, convenience, vending and foodservice. He also expects the brand to move beyond trail mix into products such as clusters, bars and granola.
“We think that brand could play in clusters and bars, granola for sure, anything that stands for better-for-you snacking,” he said.
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