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B&G Foods

From Wikipedia, the free encyclopedia
B&G Foods, Inc.
Formerly
  • B Companies Holdings Corp. (1996–1997)
  • B&G Foods Holdings Corp. (1997–2004)
Company typePublic
IndustryFood
PredecessorBloch & Guggenheimer
Founded1996; 28 years ago (1996)
Headquarters
Parsippany, New Jersey
,
U.S.
Areas served
  • United States
  • Canada
  • Puerto Rico
Key people
  • Stephen C. Sherrill (chairman)
  • Kenneth C. "Casey" Keller (president and CEO)
  • Debra Martin Chase (board member)
RevenueIncrease US$1,968 million (2020)
Increase US$132 million (2020)
Total assetsIncrease US$3,768 million (2020)
Total equityIncrease US$831,877 (2020)
Number of employees
3,207 (2021)
Websitebgfoods.com
Footnotes / references
[1]

B&G Foods, Inc. is an American branded foods holding company based in Parsippany, New Jersey. The company was formed in 1996 to acquire Bloch & Guggenheimer, a Manhattan-based producer of pickles, relish and condiments which had been founded in 1889.

B&G has been publicly traded since 2007 and its primary growth strategy is to acquire "orphaned" brands, those which no longer fit with their parent company's primary business.[2] The company made 20 acquisitions between 1997 and 2017 and as of 2018 held 51 brands[3] mostly frozen and shelf-stable food.

History

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Precursors

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The "B&G" name began in 1889 when two immigrants, Joseph Bloch and Julius Guggenheimer, started a pickle company, Bloch & Guggenheimer, Inc., in Manhattan.[4] In its early days, B&G built a large pickle plant in Long Island City, Queens which the company operated until the 1970s when it moved production to Maryland.[5] B&G produced pickles, relish, and other condiments under the B&G brand and by the 1980s they had become a significant retail and foodservice supplier in the New York City area.[6]

In the 1980s, Dutch conglomerate Artal NV bought several North American food companies including B&G and M. Polaner, Inc. Leonard S. Polaner, who had led his family's business prior to its acquisition, was appointed president overseeing both companies. Polaner hired former Johnson & Johnson executive David Wenner to manage B&G.[6] However, starting in March 1993, Artal began to sell off its food products starting with Polaner selling it to American Home Products for US$67.5 million.[7]

In June 1993 an investment group led by Robert Bass and Dallas leveraged buyout specialists Haas, Wheat & Partners founded Specialty Foods Corp. to buy Artal's eight remaining North American food companies for US$1.1 billion. These included B&G, Mother's Cookies, cheese producer Stella Foods of Green Bay, and Oakland-based Pacific Coast Baking Co.,[8] owner of San Francisco French Bread Co. and Gai's Seattle French Baking Co.[9] Both Polaner and Wenner took executive positions with Specialty. However, two years later, after suffering a loss of US$165 million in 1995, the heavily leveraged Specialty decided to focus on its bread and cheese businesses and began selling other holdings.[10][6]

Foundation and early history

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A group of New York investors, Bruckmann, Rosser, Sherrill & Co.,[11] with assistance from Polaner and Wenner formed B Companies Holdings Corp. in 1996. The purpose of the company was to buy Bloch & Guggenheimer and snack foods producer Burns & Ricker, Inc. from Specialty.[3] In 1997, following these successful acquisitions, the company took the name of its more notable subsidiary and was renamed B&G Foods Holdings Corp.[1] Polaner became B&G's chairman and Wenner its president and CEO.[6]

B&G immediately began acquiring additional food companies starting in June 1997 with several brands from Nabisco. These included Regina wine vinegar, Brer Rabbit molasses, Wright’s liquid smoke, and Vermont Maid syrups.[12] In August it bought Louisiana-based Trappey’s Fine Foods, maker of Trappey's Hot Sauce and Red Devil hot sauces and pickled peppers, from McIlhenny Company.[6]

Following a year of positive financial performance from the brands it had already acquired, B&G bought maple syrup and salad dressing producer Maple Grove Farms of Vermont and its natural foods brand Up Country Naturals in July 1998. In early 1999, B&G chairman Polaner was reunited with his family business when B&G acquired the Polaner All Fruit line of jams, jellies and preserves for US$30 million. American Home had placed Polaner under a subsidiary, International Home Foods, majority control of which had been acquired by a leveraged buyout firm in 1996.[6]

In a transaction that significantly increased the size of the company, B&G bought six brands from Pillsbury Company for US$192 million in 1999. These included B&M Baked Beans, Ac'cent and Sa-son Ac'cent flavor enhancers, Las Palmas Mexican food, Joan of Arc canned beans, and Underwood meat spreads. Pillsbury at the time said it was selling these brands so it could focus on its larger brands including Green Giant.[5] While it continued to integrate these companies, B&G began a new line of business collaborating with chef Emeril Lagasse to develop the "Emeril's Original" brand of products.[6]

After lackluster sales growth of just 4.6% in 2000 and significant long-term debt, B&G decided to sell off its Burns & Ricker business. Burns & Ricker had been one of 5 subsidiaries to see a decrease in sales that year and was sold to Nonnie's Food Company, Inc. in January 2001.[6] By 2003, B&G was ready to start buying again and acquired the Ortega brand of Mexican chiles and sauces from Nestlé.[13]

Reorganization

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In October 2004, B&G Foods Holdings Corp. became B&G Foods, Inc. having merged its then-subsidiary B&G Foods into the parent company.[1] In 2007, the company began trading on the New York Stock Exchange with ticker symbol "BGS".[2]

The company acquired Grandma's Molasses from Mott’s Company in 2006[13] and Cream of Wheat from Kraft Foods in 2007.[5] In 2010 it acquired the brands of Violet Packing including Sclafani and Don Pepino tomato products.[14] This was followed a year later by its 2011 acquisition of the Culver Specialty Brands division from Unilever for US$325 million. The Culver purchase included the Mrs. Dash (rebranded "Dash" in 2020),[1] Molly McButter, Sugar Twin sugar substitute, and Baker's Joy baking spray with flour brands all of which Unilever had acquired when it bought The Alberto Culver Company.[15] The purchase also included the Static Guard, and Kleen Guard brands of furniture polish, B&G's first non-food brands.[16]

B&G acquired snack food brands Old London Foods, with its sub-brands Devonsheer and JJ Flats, and New York Style along with a manufacturing facility in Yadkinville, North Carolina from Chipita America in 2012 for US$62.5 million.[17] In 2013 it acquired Rickland Orchards for US$57 million,[18] the TrueNorth brand of nut snacks from DeMet's Candy Company, and Robert's American Gourmet Food (better known as "Pirate Brands") and its Pirate's Booty, Smart Puffs, and Original Tings snack brands for US$195 million.[19]

In 2014, B&G bought Westbury, New York-based Specialty Brands of America from private equity firm American Capital for US$155 million. Specialty Brands' largest holding was the dry soup, pasta, and rice producer Bear Creek Country Kitchens. The purchase also included the Spring Tree, Cary's, and MacDonald's brands of maple and pancake syrup, New York Flatbreads, and Canoleo margarine.[20] In its largest acquisition at the time, B&G acquired Green Giant and its associated brands Le Sueur and Le Sieur from General Mills in 2015.[5] By the following year, B&G had expanded Green Giant's offerings with 25 new frozen vegetable products.[3] In July 2016, B&G announced it would be moving production of pizza crust producer Mama Mary's, acquired in 2015,[21] from its Spartanburg, South Carolina facilities to consolidate it into B&G's Yadkinville operations.[22]

The spice and seasonings business of ACH Food Companies, a division of Associated British Foods, was acquired in November 2016 for US$365 million. This brought B&G the Spice Islands, Tone's, and Durkee brands of spices and a licensing agreement to produce Weber brand sauces and seasonings. It also included a manufacturing facility in Ankeny, Iowa.[23] Also in 2016, B&G bought pasta and sauce maker Victoria Fine Foods for US$70 million.[24] Back to Nature Foods, along with its Snackwell's brand, was acquired for US$162.5 million in 2017[25] from Mondelez International.[26]

In October 2018, B&G sold Pirate Brands to Hershey for US$420 million in an all-cash deal.[27][28][29]

In May 2019, B&G acquired baking ingredients producer Clabber Girl Corporation for US$80 million from Hulman & Company, owners of INDYCAR and the Indianapolis Motor Speedway.[30] Clabber Girl produces baking powder, baking soda, corn starch, gelatins, and puddings under the Clabber Girl, Rumford, Davis, Hearth Club, and Royal brands.[31] The next year, B&G bought the Crisco brand of cooking oils and shortening along with its manufacturing facility in Cincinnati, Ohio from The J.M. Smucker Company for approximately US$550 million.[32][33] Also in 2020, B&G bought Wellesley, Massachusetts-based frozen vegan foods producer Farmwise Farms with a goal of complementing its existing Green Giant frozen vegetable products.[34][35]

Kenneth C. "Casey" Keller was appointed B&G's president and CEO in June 2021 replacing interim president and CEO David L. Wenner who remained a board member. Keller had previously held leadership roles at various major foods brands including JDE Peet's, Peet's Coffee, Wrigley Company, Alberto-Culver, and Heinz.[36] Wenner, who had led B&G from 1993 to 2014, took on the interim role following the 2020 resignation of Kenneth Romanzi.[37]

In an effort to reduce costs and improve productivity, the company announced in August 2021 it would sell its Portland, Maine manufacturing facility. The plant had produced B&M products for over 100 years, Underwood products for over 50 years, and other B&G brands following B&M's acquisition. The facility's 86 employees were to be laid off and manufacturing operations moved to third-party and other B&G locations. The sale was expected to close by the end of 2021 with B&G's operational move completed by the first quarter of 2022. Following the sale, the facility would become the home of The Roux Institute at Northeastern University.[38]

B&G brands

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Various B&G brands. Clockwise from upper left: Spice Islands spices, a Brer Rabbit bottle of molasses, a bottle of Trappey's Louisiana Hot Sauce, and a tin of Clabber Girl Baking Powder.

B&G's portfolio includes a wide variety of brands:[39]

  • Ac'cent
    • Sa-són Ac'cent
  • B&G Pickles
  • B&M Baked Beans
  • Baker's Joy
  • Bear Creek Country Kitchens
  • Brer Rabbit
  • Buena Vida
  • Canoleo
  • Cary's
  • Clabber Girl
  • Cream of Wheat
    • Cream of Rice
  • Crisco
  • Dash (formerly Mrs. Dash)
  • Davis
  • Dec-A-Cake
  • Devonsheer
  • Don Pepino
  • Durkee
  • Farmwise Farms
  • Fleischmann's
  • Grandma's Molasses
  • Green Giant
  • Hearth Club
  • Henri's
  • JJ Flats
  • Joan of Arc
  • KC
  • Las Palmas
  • Le Sueur
    • Le Sieur
  • MacDonald's
  • Mama Mary's
  • Maple Grove Farms of Vermont
  • McCann's Steel Cut Irish Oatmeal[40]
  • Molly McButter
  • Mrs. Fanning's Bread & Butter Pickles[41]
  • New York Flatbreads
  • New York Style
  • Old London
  • Ortega
  • Polaner
  • Regina
  • Rickland Orchards
  • Royal
  • Rumford
  • Sclafani
  • Snackwell's
  • Spice Islands
  • Spring Tree
  • Static Guard
  • Sugar Twin
  • Tone's
  • Trappey's Hot Sauce
    • Trappey's Red Devil
  • TrueNorth
  • Underwood
  • Up Country Naturals
  • Vermont Maid Syrup
  • Victoria
  • Wright's Liquid Smoke

B&G also produces products under brands licensed from other companies including Cinnamon Toast Crunch, Crock-Pot,[1] Einstein Bros. Bagels,[42] Emeril's Original,[13] Skinnygirl, Twix,[43] and Weber.[23]

Controversies

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Cream of Wheat branding

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Main article: Cream of Wheat § Package design and controversy

B&G's Cream of Wheat was one of a number of brands subject to public pressure to change its branding due to perceived racist origins during the 2020 protests around racism. From its inception, the brand's packaging and marketing featured an African American chef character named "Rastus", a pejorative term for black men. B&G announced an "immediate review" of Cream of Wheat branding in June 2020[44] and in September said it would be removing the character from all Cream of Wheat packaging.[45]

References

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  1. ^ a b c d e "2020 Annual Report". B&G Foods. March 31, 2021. Archived from the original on February 18, 2022. Retrieved February 24, 2022.
  2. ^ a b Mazing, Nick (June 4, 2018). "B&G Foods Has a 24% Upside". Archived from the original on June 12, 2018. Retrieved June 12, 2018.
  3. ^ a b c DeLoatch, Pamela (April 23, 2018). "Why B&G Foods has 51 brands — and is still looking for more". Food Dive. Archived from the original on May 12, 2021. Retrieved February 23, 2022.
  4. ^ O'Connor, Tim (March 23, 2018). "B&G Foods". Supply Chain World. Archived from the original on February 25, 2022. Retrieved February 25, 2022.
  5. ^ a b c d Ramstad, Evan (Sep 5, 2015). "We all know Green Giant. Who's B&G?". Star Tribune. pp. D1, D4. Archived from the original on February 28, 2022. Retrieved Feb 28, 2022 – via Newspapers.com.
  6. ^ a b c d e f g h Dinger, Ed. B&G Foods, Inc. Archived from the original on 2022-02-26. Retrieved 2022-02-26 – via Encyclopedia.com. {{cite book}}: |work= ignored (help)
  7. ^ "Pasta, mustard, and now jellies". The Record. Dow Jones News Service. Mar 26, 1996. pp. C3. Archived from the original on February 28, 2022. Retrieved Feb 28, 2022 – via Newspapers.com.
  8. ^ Fuquay, Jim (Jul 28, 1993). "Robert Bass, Dallas partners reach deal to buy Dutch-owned food companies". Fort Worth Star-Telegram. pp. B1, B9. Archived from the original on February 28, 2022. Retrieved Feb 28, 2022 – via Newspapers.com.
  9. ^ "Specialty Foods buying eight firms". Austin American-Statesman. Aug 17, 1993. p. D7. Archived from the original on February 28, 2022. Retrieved Feb 28, 2022 – via Newspapers.com.
  10. ^ "Specialty retains Merrill Lynch". Fort Worth Star-Telegram. Rosemont, IL. Jun 7, 1996. pp. C2. Archived from the original on February 28, 2022. Retrieved Feb 28, 2022 – via Newspapers.com.
  11. ^ O'Reiley, Tim (Apr 9, 2002). "Small food company grows by acquiring orphan brands". Daily Record. pp. B1, B3. Archived from the original on February 28, 2022. Retrieved Feb 28, 2022 – via Newspapers.com.
  12. ^ "Added Spice". The Record. Jun 22, 1997. pp. B1, B2. Archived from the original on February 28, 2022. Retrieved Feb 28, 2022 – via Newspapers.com.
  13. ^ a b c "Our History". B&G Foods. Archived from the original on December 28, 2017. Retrieved December 28, 2017.
  14. ^ "B&G Foods buys six Unilever brands for $325 mln". Reuters. October 28, 2011. Archived from the original on February 25, 2022. Retrieved February 25, 2022.
  15. ^ Watson, Elaine (October 31, 2011). "Unilever strikes $325m deal to sell Culver Specialty Brands to B&G Foods". Food Navigator USA. Archived from the original on February 28, 2022. Retrieved February 25, 2022.
  16. ^ Nunes, Keith (October 31, 2011). "B&G Foods to acquire some Unilever brands". Baking Business. Archived from the original on February 25, 2022. Retrieved February 25, 2022.
  17. ^ "B&G Foods Completes Purchase of the New York Style and Old London brands from Chipita America". CNBC (Press release). Business Wire. October 31, 2012. Archived from the original on February 22, 2022. Retrieved February 22, 2022.
  18. ^ Watrous, Monica (April 4, 2014). "B&G Foods bags another acquisition". Food Business News. Archived from the original on February 25, 2022. Retrieved February 25, 2022.
  19. ^ Watson, Elaine (September 5, 2013). "B&G Foods builds up natural snacks empire, sees "huge upside" for True North and Pirate's Booty". Bakery and Snacks. Archived from the original on February 24, 2022. Retrieved February 23, 2022.
  20. ^ "B&G Foods completes acquisition of Specialty Brands of America". Food Processing Technology. April 24, 2014. Archived from the original on February 25, 2022. Retrieved February 25, 2022.
  21. ^ "Acquisition History". B&G Foods. Archived from the original on October 18, 2021. Retrieved February 23, 2022.
  22. ^ B&G Foods (July 6, 2016). "B&G Foods Announces Plan to Relocate Mama Mary's Manufacturing Operations". Food Manufacturing (Press release). Parsippany, New Jersey. Business Wire. Retrieved March 2, 2022.
  23. ^ a b "B&G Foods acquires ABF's US spice business". Just Food. September 21, 2016. Archived from the original on February 28, 2022. Retrieved February 25, 2022.
  24. ^ Horney, Benjamin (December 5, 2016). "B&G Pays $70M For Pasta, Sauce Maker Victoria Fine Foods". Law360. Archived from the original on February 25, 2022. Retrieved February 25, 2022.
  25. ^ "B&G Foods, Parsippany, NJ, will acquire back to Nature Foods Co., Madison, WI, for $162.5 million in cash". The Food Institute Report. Vol. 90, no. 34. The Food Institute. 2017. p. 5. ISSN 0745-4503. Archived from the original on February 26, 2022. Retrieved February 25, 2022 – via Gale General OneFile.
  26. ^ "B&G Foods to Acquire Back to Nature Foods Company". Business Wire (Press release). August 20, 2017. Archived from the original on January 23, 2021. Retrieved February 23, 2022.
  27. ^ Witkowski, Wallace. "Hershey buying Pirate's Booty maker for $420 million". MarketWatch. Archived from the original on September 13, 2018. Retrieved September 13, 2018.
  28. ^ "Hershey to buy cheese puffs maker Pirate Brands for $420 million". Reuters. Archived from the original on September 12, 2018. Retrieved September 13, 2018.
  29. ^ Gasparro, Annie (September 12, 2018). "Hershey to Buy Pirate's Booty Maker for $420 Million". Wall Street Journal. ISSN 0099-9660. Archived from the original on September 13, 2018. Retrieved September 13, 2018.
  30. ^ Bennett, Mark (May 16, 2019). "Hulman & Co. sells iconic Clabber Girl Corp". Times-Mail. Archived from the original on February 26, 2022. Retrieved February 25, 2022.
  31. ^ "B&G Foods Acquires Clabber Girl Corporation". B&G Foods (Press release). Archived from the original on April 16, 2021. Retrieved February 23, 2022.
  32. ^ Best, Dean (October 27, 2020). "B&G Foods acquires Crisco brand from J.M. Smucker". Just Food. Archived from the original on February 28, 2022. Retrieved February 25, 2022.
  33. ^ Nunes, Keith (May 13, 2021). "B&G Foods' bottom line hit by costs, supply issues". Baking Business. Archived from the original on February 26, 2022. Retrieved February 25, 2022.
  34. ^ "B&G Foods (BGS) Adds Farmwise to Its Robust Brands Kitty". TMX Money. February 20, 2020. Archived from the original on February 25, 2022. Retrieved February 25, 2022.
  35. ^ Saulsbery, Gabrielle (February 20, 2020). "B&G Foods acquires Veggie Fries parent company". NJBIZ. Archived from the original on February 25, 2022. Retrieved February 25, 2022.
  36. ^ "B&G Foods Selects Kenneth C. "Casey" Keller as its Next President and CEO" (Press release). Business Wire. February 11, 2021. Archived from the original on February 25, 2022. Retrieved February 25, 2022.
  37. ^ Best, Dean (November 16, 2020). "B&G Foods president and CEO Kenneth Romanzi steps down". Just Food. Archived from the original on February 28, 2022. Retrieved February 25, 2022.
  38. ^ Saulsbery, Gabrielle (August 31, 2021). "B&G Foods sells Maine manufacturing facility". NJBIZ. Archived from the original on February 25, 2022. Retrieved February 25, 2022.
  39. ^ "Our Brands". B&G Foods. Archived from the original on February 18, 2022. Retrieved Feb 28, 2022.
  40. ^ "B&G FOODS INC., Parsippany, NJ, acquired the McCann's oatmeal brand from TREEHOUSE FOODS INC., Oak Brook, IL, for approximately $32 million". The Food Institute Report. Vol. 29 (91 ed.). 2018. p. 6. Archived from the original on February 26, 2022. Retrieved February 25, 2022 – via Gale General OneFile.
  41. ^ Deutsch, Jonathan (May 31, 2018). We Eat What? A Cultural Encyclopedia of Unusual Foods in the United States. ABC-CLIO. ISBN 978-1-4408-4112-5. Archived from the original on February 23, 2022. Retrieved February 23, 2022 – via Google Books.
  42. ^ Saulsbery, Gabrielle (September 22, 2021). "B&G Foods partners with Einstein Bros on everything bagel seasoning". NJ Biz. Archived from the original on February 26, 2022. Retrieved February 25, 2022 – via Gale General OneFile.
  43. ^ "B&G Foods introduces Twix Shakers Seasoning Blend". Candy Industry. August 30, 2021. Archived from the original on February 25, 2022. Retrieved February 25, 2022.
  44. ^ Cramer, Maria (June 17, 2020). "After Aunt Jemima, Reviews Underway for Uncle Ben, Mrs. Butterworth and Cream of Wheat". New York Times. Archived from the original on June 23, 2020. Retrieved February 25, 2022.
  45. ^ "B&G Foods to remove Cream of Wheat Black chef image from packaging". NBC News. Reuters. September 25, 2020. Archived from the original on February 25, 2022. Retrieved February 25, 2022.
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