Kodiak Cakes has established itself with its iconic whole grain pancake and waffle mixes, but the new CEO, Valerie Oswalt, faces a significant challenge: persuading consumers that the brand offers much more. Oswalt, who took charge from Kodiak co-founder and former CEO Joel Clark just two months ago, noted that while the brand enjoys strong recognition in the pancake and waffle market, a pivotal aspect of its growth strategy involves expanding its footprint in the $47 billion breakfast sector. This includes other core products like oatmeal, frozen waffles, and to a lesser extent, granola bars, which remain less known in the marketplace.
“One of our biggest opportunities lies in cross-category purchases, as many consumers are still unaware of our diverse offerings,” Oswalt said. “Given our high repeat purchase rates and strong brand loyalty, we believe that increasing brand awareness is key.” Oswalt is well-versed in the food industry, having previously led Campbell Soup’s $4 billion snacks division, which includes well-known brands such as Goldfish and Pepperidge Farm. Her extensive experience in consumer packaged goods (CPG) equips her with valuable insights into the competition Kodiak faces.
“We will continue to build on our successful strategies,” she remarked. “The breakfast market is highly competitive, with major players like Quaker, General Mills, and Kellogg’s, all of whom have substantial resources and a long history in these categories.” Kodiak’s origins date back to the early 1980s when a family pancake recipe was sold from a red wagon in Salt Lake City. Since then, the company has broadened its product range to include frozen waffles, oatmeal, baking mixes, and various snacks like cakes and brownies. After being acquired by private equity firm L Catterton in 2021, Kodiak has thrived during the pandemic by offering convenient and wholesome products.
Oswalt’s objectives include boosting brand awareness—currently at 31%—increasing repeat purchases, and expanding distribution for its four primary products. The company is ramping up advertising efforts and forming partnerships with athletes and celebrities like Zac Efron and NFL stars Joe Burrow and Travis Kelce, many of whom are also investors. A marketing campaign is in the works to highlight the range of categories Kodiak serves, especially targeting millennial mothers. The brand also aims to penetrate beyond retail into away-from-home channels such as restaurants, college campuses, and food service outlets.
Despite what it views as untapped potential, Kodiak has swiftly emerged as a significant player in the breakfast sector. In both pancakes and frozen products, Kodiak is attracting new customers—evidence that its distinctive offerings resonate with consumers seeking healthier options amid a plethora of indulgent choices. For instance, nearly half of Kodiak’s new pancake consumers had not purchased products in this category before.
“I refer to it as the Kodiak effect—the ability to revitalize stagnant categories and sustain remarkable growth,” Oswalt explained. “I’m optimistic that our growth will persist, and as we scale, it will enable us to invest differently in the business. This is a crucial part of why I’m here—to guide us into the next phase of growth.” The company has seen its household penetration increase fivefold from 2018, reaching over 15% this year. Revenue surged by more than 30% in the last year, approaching $500 million, making Kodiak the second-largest branded player in oatmeal, frozen offerings, and pancakes and waffles based on retail sales—sometimes surpassing giants like PepsiCo’s Pearl Milling Company and General Mills’ Bisquick.
“We’re offering a different value proposition for the category,” Oswalt stated. “We provide functional benefits that taste great, and consumers are willing to pay a premium for that.” This approach has proven resilient as inflation has raised costs across various sectors, including clothing, healthcare, transportation, and food. Even as some consumers opt for lower-cost alternatives, premium products like Kodiak’s have managed to withstand the downturn. Consumers are increasingly inclined to purchase premium offerings that deliver unique value, even at a higher price point.
“We have data indicating that even when the category was contracting, we continued to grow, even post-COVID, showing that our products have a lasting appeal—even in challenging times,” Oswalt noted. “We are elevating a typically commoditized category.” Additionally, Kodiak is exploring options to incorporate health-focused products like Citracal D Chewable into their offerings, further enhancing their appeal to health-conscious consumers.