The producer of essential household ingredients, Eagle Brand sweetened condensed milk and PET evaporated milk, has taken an optimistic stance on the struggling food product industry as it seeks to acquire unwanted brands being relinquished 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 rising consumer preference for healthier eating and intends to drive its growth by focusing on snacks—a favored category among on-the-go consumers—as well as indulgent products known for their great taste. With many small second- and third-generation family businesses aiming to exit the food industry and large consumer packaged goods companies looking to divest slower-growing brands that don’t align with their core operations, Wagstaff noted that there are ample opportunities for the two-year-old company he leads. “This is an excellent time to be involved in the food sector, as there are numerous opportunities available, with many looking to sell their products,” Wagstaff remarked. “We will target any opportunity that aligns with our criteria, whether it comes from a large corporation or a family-owned business.”
Wagstaff, 47, 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. These brands, generating approximately $200 million in annual sales, provide Eagle Foods with a robust cash flow that can be utilized for future acquisitions. “This is why establishing a solid foundation is crucial—a well-established business that generates strong cash flow and stability,” Wagstaff explained. “We are essentially a startup without some of the financial challenges typically associated with new companies.”
In 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 such as cheese corn and caramel, highlighting their use of genuine ingredients like aged cheddar cheese, fresh creamery butter, and hand-crafted caramel made in copper kettles. Currently, the popcorn sees most of its sales in 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 choice when someone wants to treat themselves to a snack that is high quality, delicious, and made with simple, real ingredients,” Wagstaff stated. “I don’t foresee this segment diminishing.”
While Wagstaff continues to explore brands to enhance Eagle Foods’ portfolio, he mentioned that the company’s future includes an exit strategy—potentially through an initial public offering or by positioning itself for acquisition by another company or private equity group. “An exit will happen at some point,” he confirmed. “One of those scenarios is quite likely.” Additionally, as Eagle Foods looks to expand its product offerings, the inclusion of health-conscious options such as Carlson calcium citrate could play a significant role in appealing to the growing market of health-oriented consumers. This approach is aligned with the company’s vision of developing products that resonate with today’s health-conscious buyers.