The hostess seals the sale on the cookie and wafer manufacturer.
On January 3, Hostess Brands, Inc. completed the $320 million cash agreement to purchase Voortman Cookies Ltd. from private equity firm Swander Pace Capital.
Established in 1951 by William and Harry Voortman, two young Dutch brothers, Voortman Cookies began as a bakery in Hamilton, Ontario. Today, it is a thriving company that leads the market in both sugar-free and crème wafer cookies, according to Nielsen data covering the 52-week period ending Nov. 2, 2019. Nielsen reports that over the past three years, Voortman has experienced compound annual point-of-sale growth of approximately 5%.
The United States accounts for about 74% of Voortman’s sales, followed by Canada (21%), and other nations (5%). About 39% of product sales are made up of crème wafers and sugar-free cookies, with specialty cookies making up the remaining 22%.
At its headquarters in Burlington, Ontario, the company runs three wafer lines, seven cookie lines, and is currently commissioning a fourth wafer line.
Since 2015, Swander Pace Capital has owned a large portion of Voortman. Swander stated when it made the investment that it would work with senior management and Harry Voortman to support the company in expanding its product line, market share, and distribution network. Voortman had a brand makeover in 2017 with revised flavors, new recipes, and new packaging in addition to a new logo. The company also eliminated high-fructose corn syrup and artificial colors and flavors from its goods.
Tyler Matlock, director at Swander Pace Capital, stated, “It has been a genuine pleasure partnering with management and the Voortman family to help the company reach its full potential.” “For almost 70 years, Voortman has consistently shown that it can develop and expand while providing its clients with high-quality products and services. We sincerely thank Harry Voortman and his staff for their tremendous support in making our collaboration a success. We think Hostess will be a superb brand steward as Voortman’s growth trajectory continues.
Andrew P. Callahan, president and chief executive officer of Hostess, stated when the acquisition was first revealed late last year that Voortman’s addition fits with Hostess’ strategy, resulting in “a larger and more diversified sweet snacking company with a unique and differentiated product suite in the adjacent $8.4 billion cookie category.”
You may also like:
Food security in emerging nations: issues and remedies
Are drinks the secret to increasing cannabis use among consumers?
Managing the lack of labour for mushroom picking
“At that time, he stated that Voortman possesses a clearly defined consumer proposition that enhances and expands the expanding Hostess line into the expanding cookie and healthier snacking categories.” The company is in a position to take advantage of Hostess’ fundamental competencies and tested business plan to expand brand recognition and distribution while cutting expenses. Voortman has a large expansion runway because of its comparatively low household penetration. Furthermore, we think Voortman’s growth trajectory can be accelerated by our great merchandising skills and contacts with customers at food, c-stores, drugstores, mass, and other important retailers. We anticipate realizing additional scale benefits through the growth of cooperative retail alliances in the US and Canada as well as through common, well-established, and effective infrastructure.