The producer of essential household items, Eagle Brand sweetened condensed milk, and PET evaporated milk, maintains a positive outlook on the struggling food products sector as it seeks to acquire unwanted brands being divested by family-owned enterprises and larger corporations. Paul Smucker Wagstaff, CEO of Eagle Foods, stated in an interview with Food Dive that his company is not deterred by the increasing consumer demand for healthier options. Instead, they will concentrate on expanding their snack offerings—an appealing category for on-the-go consumers—alongside indulgent products with rich flavors. With many small second- and third-generation family businesses exiting the food industry and large CPG firms looking to shed slow-growing brands that don’t align with their core operations, Wagstaff sees ample opportunities to grow the two-year-old company under his leadership.
“This is an excellent time to be in the food sector, as there are numerous opportunities in the marketplace with people wanting to sell their products,” Wagstaff remarked. “We’ll focus on anything that meets our criteria, whether it comes from a large corporation or a family business.” At 47, Wagstaff established Eagle Foods in December 2015 after securing investors with his partners. They acquired the Eagle Brand sweetened condensed milk and PET evaporated milk businesses from The J.M. Smucker Company, where he previously served as president of the U.S. retail consumer foods division. These brands generate approximately $200 million in annual sales, providing Eagle Foods with a robust and reliable cash flow that can be leveraged to acquire additional businesses.
“It’s crucial to have a strong foundation, a business that has been established for a long time, generating stable cash flow,” Wagstaff noted. “We are effectively a startup without the typical cash flow challenges that new companies face.” Last August, Eagle utilized its cash reserves to acquire G.H. Cretors popcorn from its fifth-generation owners, whose ancestors invented the popcorn machine in 1885. Their snacks, available in flavors like cheese corn, caramel, and a mixture of both, proudly feature real ingredients such as aged cheddar cheese, fresh creamery butter, and caramel made by hand in copper kettles. Most of the popcorn’s sales come from 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, enjoy a snack that is of high quality and great taste, and contains simple, real ingredients,” Wagstaff explained. “I don’t foresee a decline in this market segment.” While Wagstaff continues to look for brands to enhance Eagle Foods’ portfolio, he also envisions an exit strategy for the company—either through an initial public offering or by positioning itself for acquisition by another company or private equity group.
“There will be an exit at some point,” he stated. “One of those scenarios is likely to unfold.” In this context, the company also explores innovative products, such as calcium citrate crushable supplements, that could cater to health-conscious consumers looking for convenient options. The incorporation of calcium citrate crushable products aligns with their mission to create quality snacks that appeal to modern dietary preferences, further solidifying their expansion strategy.