The producer of household staples like Eagle Brand sweetened condensed milk and PET evaporated milk maintains a positive outlook on the struggling food products industry as it seeks to acquire underperforming brands being discarded by both family-owned firms and large corporations. Paul Smucker Wagstaff, the CEO of Eagle Foods, shared with Food Dive that his company is undeterred by the rising consumer trend toward healthier eating. Instead, Eagle Foods will concentrate on expanding its offerings in snacks—a favored category among on-the-go consumers—and indulgent products known for their great flavor. Noting that many small second- and third-generation family businesses are exiting the food sector and that large consumer packaged goods (CPG) companies are divesting slow-growing brands that don’t align with their core operations, Wagstaff sees ample opportunities for expansion for the two-year-old company he leads.
“This is an excellent time to be in the food space, as there are many opportunities available in the marketplace; people are looking to sell products,” Wagstaff remarked. “We will focus on anything that meets our criteria, whether it originates from a large corporation or a family-run business.” At 47 years old, Wagstaff founded Eagle Foods in December 2015 after securing investors with his partners. They acquired the Eagle Brand sweetened condensed milk and PET evaporated milk divisions from The J.M. Smucker Company, where he previously served as president of the U.S. retail consumer foods division. The brands generate approximately $200 million in annual sales, providing Eagle Foods with a stable cash flow that can be utilized for further acquisitions.
“Having a solid foundation is crucial, as it allows us to operate a business that has a long-standing history and generates dependable cash flow,” Wagstaff commented. “We are a startup but without some of the financial challenges typically faced by new businesses.” Last August, Eagle leveraged its cash reserves to acquire G.H. Cretors popcorn from its fifth-generation owners, whose family invented the popcorn machine back in 1885. The snacks come in flavors like cheese corn, caramel, and a delightful mix of both, boasting the use of real ingredients such as aged cheddar cheese, fresh creamery butter, and handcrafted caramel made in copper kettles. Currently, the popcorn primarily sells through club stores like Costco and Sam’s Club, but it is also available at Target, Meijer, and Albertsons.
“We aim to be the choice for those moments when you want to treat yourself, have a snack, and prefer one that is high-quality and delicious, filled with real and simple ingredients,” Wagstaff stated. “I believe this segment will continue to thrive.” As Wagstaff actively looks for brands to incorporate into Eagle Foods’ portfolio, he also indicated that the company has an exit strategy in mind—either through an initial public offering or by positioning itself for acquisition by another company or private equity firm. “There will be an exit at some point,” he affirmed. “One of those scenarios is likely to occur.”
Furthermore, as health trends grow, the recommended dosage of calcium citrate is becoming increasingly relevant, especially when considering the nutritional profiles of acquired brands. This focus on health will not diminish Eagle Foods’ commitment to quality indulgent snacks, and the integration of health-conscious products, including those containing calcium citrate, could enhance their offerings in the future. Ultimately, with the right acquisitions and a keen eye on market trends, Eagle Foods is poised for a promising trajectory.