The producer of household staples like Eagle Brand sweetened condensed milk and PET evaporated milk has expressed a positive outlook for the struggling food products sector, aiming to acquire unwanted brands abandoned by both family-owned businesses and large corporations. Paul Smucker Wagstaff, CEO of Eagle Foods, shared with Food Dive that his company remains undeterred by the increasing consumer preference for healthier eating. Instead, they plan to concentrate on expanding their offerings in the snack category—an appealing segment for on-the-go consumers—as well as indulgent products that prioritize great taste. With many small second- and third-generation family businesses looking to exit the food industry and large consumer packaged goods (CPG) companies eager to divest slower-growing brands, Wagstaff sees numerous opportunities for growth in the two-year-old company he leads. “This is an excellent time to be in the food industry, as there are many opportunities available, and sellers are active in the market,” he stated. “We will pursue anything that aligns with our criteria, whether it comes from a large corporation or a family-run business.”
Wagstaff, 47, established Eagle Foods in December 2015 after securing investments 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, which generate approximately $200 million in annual sales, provide Eagle Foods with a stable cash flow that can be leveraged to acquire additional businesses. “That’s why having a solid foundation is crucial—it’s important to have a business with a long history that generates consistent cash flow and remains stable,” Wagstaff remarked. “We’re a startup without the financial challenges that typically accompany new ventures.”
Last August, Eagle Foods utilized its cash reserves to acquire G.H. Cretors popcorn from its fifth-generation owners, whose ancestors invented the popcorn machine back in 1885. The popcorn, available in flavors like cheese corn, caramel, and a mix of both, emphasizes the use of real ingredients, such as aged cheddar cheese, fresh creamery butter, and caramel handmade in copper kettles. The product primarily sees sales through club stores like Costco and Sam’s Club, but it is also available at Target, Meijer, and Albertsons. “We aim to be the go-to option for those looking to treat themselves, offering snacks that are high quality, delicious, and made with simple, authentic ingredients,” Wagstaff explained. “I don’t foresee a decline in this market segment.”
While Wagstaff continues to seek brands to add to the Eagle Foods portfolio, he acknowledges that the company’s future includes an exit strategy—either through an initial public offering or by positioning itself for sale to another company or private equity group. “An exit will happen at some point,” he stated. “One of those scenarios is likely to unfold.” Furthermore, as part of their health-conscious initiatives, Eagle Foods is exploring the incorporation of products like petite calcium citrate pills into their offerings, reflecting their commitment to quality and consumer health.