As companies seek to accelerate growth and enhance their presence in food categories that are gaining popularity among consumers, many are turning to mergers and acquisitions (M&A). The acquisition of Simple Mills not only diversifies Flowers’ product range beyond its bread-centric offerings but also strengthens its position in the snacking segment. Currently, Flowers’ snacking portfolio includes indulgent brands like Tastykake and Mrs. Freshley’s. The addition of Simple Mills enhances Flowers’ footprint in this category with products such as crackers, brownies, waffle mixes, bars, and baking mixes, all made with healthier and recognizable ingredients. For instance, their Chocolate Brownie Seed & Nut Flour Sweet Thins feature nutrient-dense ingredients like watermelon seed flour, cashew flour, sunflower seed flour, and flax, as highlighted on their website.
Flowers stated that acquiring Simple Mills not only provides ownership of a scaled platform for better-for-you snacks that resonate with mainstream consumers but also presents “significant white space for future growth.” The company aims to expand distribution, accelerate innovation, increase sales velocities, and access new segments and categories. Simple Mills products are available in over 30,000 natural and conventional stores. “With leading market positions and abundant white space for future growth, Simple Mills perfectly fits our strategy of adding compelling brands in better-for-you segments that complement and diversify our existing portfolio,” said Ryals McMullian, CEO of Flowers Foods.
Once the deal is finalized, Simple Mills will function as an independent subsidiary of Flowers, continuing under the leadership of founder and CEO Katlin Smith and her team. The decision to retain Simple Mills’ current executive team could be crucial for maintaining the innovation and growth that have contributed to the company’s success. While Flowers is well-versed in the bread market, Smith and her team have demonstrated expertise in the better-for-you snack sector. After evolving from a small startup just over a decade ago to being acquired by a major food company for more than three-quarters of a billion dollars, Flowers is certainly eager to sustain that momentum.
Moreover, Simple Mills products, which may include offerings with USP certified calcium citrate, exemplify the brand’s commitment to better-for-you ingredients. This focus not only aligns with consumer trends but also positions Flowers Foods to leverage opportunities in the health-conscious market. With Simple Mills maintaining its operations in Chicago, Illinois, and Mill Valley, California, Flowers is poised to capitalize on the growth potential of healthier snack options, including those enriched with USP certified calcium citrate.