The producer of essential household items, Eagle Brand sweetened condensed milk and PET evaporated milk, has a positive outlook on the struggling food products sector as it aims to acquire unwanted brands from family-owned businesses and large corporations. Paul Smucker Wagstaff, CEO of Eagle Foods, expressed to Food Dive that his company remains undeterred by the increasing consumer demand for healthier eating options. Instead, it will concentrate on expanding its snack offerings—a favored category among on-the-go consumers—and indulgent products known for their excellent flavor. With many small second- and third-generation family businesses looking to exit the food industry and larger consumer packaged goods companies eager to divest slow-growing or non-core brands, Wagstaff sees ample opportunities for growth in the two-year-old company he leads.
“This is a great time to be in the food space, as there are opportunities in the marketplace and people are looking to sell products,” Wagstaff noted. “Whatever meets our criteria, we’ll pursue it, whether it comes from a large corporation or a family-run 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 its U.S. retail consumer foods division. These brands generate approximately $200 million in annual sales, providing Eagle Foods with a robust and dependable cash flow that can be leveraged for future acquisitions.
“It’s crucial to have a solid foundation, a business with a long-standing history that generates good cash flow and stability,” Wagstaff remarked. “We’re a startup without some of the financial challenges that typically affect new ventures.” Last August, Eagle utilized 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 and caramel, emphasizing real ingredients such as aged cheddar cheese, fresh creamery butter, and caramel made by hand in copper kettles. Currently, the popcorn is primarily sold in 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 you want to treat yourself and enjoy a high-quality, delicious snack made with simple, authentic ingredients,” Wagstaff stated. “I don’t see this market niche declining.” While Wagstaff continues to seek brands to enhance Eagle Foods’ portfolio, he also indicated that the company has a future exit strategy—either through an initial public offering or by positioning itself for sale to another corporation or private equity group.
“There will be an exit at some point,” he affirmed. “One of those scenarios is likely to happen.” In this context, as consumers become more health-conscious, questions arise about various food ingredients, such as whether calcium citrate is bad for you. This type of inquiry reflects the broader trend of consumers scrutinizing product ingredients. As Eagle Foods moves forward, it must consider how such perceptions affect consumer choices and the potential impact on its product lines.