Cal-Maine Foods diversifies portfolio with acquisition of Van’s Foods
This strategic acquisition marks a significant pivot for Cal-Maine Foods as it seeks to diversify its business model and expand its footprint within the high-growth, “better-for-you” frozen breakfast category.
USA – Cal-Maine Foods, Inc., the largest egg company in the United States and a leading player in the egg-based food industry, and Sara Lee Frozen Bakery, LLC, owned by Bimbo Bakeries USA, a subsidiary of Mexico’s Grupo Bimbo, have announced Cal-Maine Foods’ acquisition of certain assets of the Van’s Foods business of Sara Lee Frozen Bakery, LLC, a Kohlberg portfolio company.
The acquisition is aimed at supporting Cal-Maine Foods’ strategy to diversify its business model, grow its prepared-foods business-to-consumer retail, and deliver greater value across the supply chain.
Terms of the acquisition were not disclosed.
Van’s Foods is a manufacturer of frozen waffles and pancakes, including gluten-free, protein-enhanced, and whole-grain varieties.
Van’s holds the top market position in gluten-free frozen waffles and is a leader in the frozen breakfast segment, with products sold through grocery, e-commerce and other retail channels.
The addition of Van’s is expected to increase Cal-Maine Foods’ prepared foods annual sales by approximately 10% and volume by about 6% on a pro forma basis.
“We believe this acquisition will further our diversification strategy by expanding our reach in prepared foods consumer-facing retail,” said Sherman Miller, president and chief executive officer of Cal-Maine Foods.
“Our goal is to honor that legacy while bringing additional capabilities and resources to help the brand capture incremental share, supported by a pipeline of innovations expanding into new dayparts, formats and snacking occasions.”
Additionally, Cal-Maine said the acquisition is intended to support its existing prepared foods business, accelerate product development and respond to emerging consumer trends such as the growing demand for high-protein products.
Van’s will continue operating under its existing brand identity after the close of the transaction.
Sara Lee Frozen Bakery CEO Peter Laport said the sale was driven by a desire to focus on its remaining core brands.
“We are confident Van’s is going to the right home, with an attractive runway ahead, as Cal-Maine brings complementary capabilities to accelerate its growth, particularly around protein and better-for-you nutrition,” Laport said.
Van’s is also expected to enhance Cal-Maine Foods’ ability to serve evolving consumer preferences while strengthening its presence across grocery, e-commerce, and other direct-to-consumer channels.
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