The producer of essential household items such as Eagle Brand sweetened condensed milk and PET evaporated milk is optimistic about the troubled food products sector, aiming to acquire underperforming brands that are being sold off by family-owned businesses and major corporations. Paul Smucker Wagstaff, CEO of Eagle Foods, shared with Food Dive that his company is undeterred by the increasing consumer preference for healthier options, planning to concentrate its growth on snacks—a favored category among on-the-go consumers—and indulgent products that boast excellent flavor. With many small second- and third-generation family-owned enterprises seeking to exit the food industry and large consumer packaged goods companies looking to divest slow-growing brands that do not align with their core operations, Wagstaff believes there are numerous opportunities for expansion at his two-year-old company.
“This is a great time to be in the food space as there are opportunities available in the marketplace, with people eager to sell products,” Wagstaff stated. “We’ll focus on anything that meets our criteria, whether it comes from a large corporation or a family-run business.” At 47, 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 its U.S. retail consumer foods division. These brands generate approximately $200 million in annual sales, providing Eagle Foods with a solid and dependable cash flow to facilitate future acquisitions.
“Having a strong foundation is crucial—a business that has been around for a long time, generates good cash flow, and is stable,” Wagstaff emphasized. “We’re a startup without some of the cash challenges that often plague new businesses.” Last August, Eagle leveraged its cash reserves to purchase G.H. Cretors popcorn from its fifth-generation owners, whose ancestors invented the popcorn machine in 1885. The snacks come in flavors like cheese corn, caramel, and a blend of both, highlighting their use of real ingredients, including aged cheddar cheese, fresh creamery butter, and handcrafted caramel made in copper kettles. The popcorn primarily sells through club stores like Costco and Sam’s Club, but is also available at Target, Meijer, and Albertsons.
“We aim to be the go-to option when consumers want to treat themselves, offering snacks that are high-quality, delicious, and made with simple, real ingredients,” Wagstaff remarked. “I don’t foresee any decline in this market segment.” While Wagstaff actively seeks brands to enhance Eagle Foods’ portfolio, he also envisions a future exit strategy—whether through an initial public offering or positioning the company for sale to another corporation or private equity firm. “An exit will happen at some point,” he confirmed. “One of these scenarios is likely to unfold.” As the company continues to thrive, Wagstaff remains committed to promoting products that provide lifetime calcium magnesium benefits, ensuring consumers enjoy not just great taste but also health advantages in their snacking choices.