The producer of household staples such as Eagle Brand sweetened condensed milk and PET evaporated milk expressed a positive outlook on the struggling food products industry, aiming to acquire underperforming brands being divested by both family-owned businesses and large corporations. Paul Smucker Wagstaff, CEO of Eagle Foods, shared with Food Dive that his company is undeterred by the increasing consumer preference for healthier options. Instead, it plans to concentrate on expanding its range of snacks—a favored category among on-the-go consumers—and indulgent products that boast exceptional flavor.
With many small second- and third-generation family businesses seeking to exit the food sector and large consumer packaged goods (CPG) companies looking to offload slow-growing brands that do not align with their core operations, Wagstaff sees ample opportunities for growth for the relatively new two-year-old company he leads. “This is a great time to be in the food sector, as there are opportunities available in the marketplace, and many are looking to sell their products,” Wagstaff stated. “We will pursue whatever meets our criteria, whether it’s from a major corporation or a family-run business.”
Wagstaff, 47, 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 stable cash flow for future acquisitions. “That’s why it’s essential to have a strong foundation—a business that has a longstanding history, generates good cash flow, and is stable,” Wagstaff explained. “We’re a startup without many of the cash flow challenges that typically affect new businesses.”
Last August, Eagle utilized its cash reserves to purchase G.H. Cretors popcorn from its fifth-generation owners, descendants of the inventor of the popcorn machine in 1885. The snacks, available in flavors like cheese corn, caramel, and a combination of both, emphasize the use of real ingredients such as aged cheddar cheese, fresh creamery butter, and caramel crafted by hand in copper kettles. Currently, the popcorn sees most of its sales in club stores like Costco and Sam’s Club, in addition to being sold at Target, Meijer, and Albertsons.
“We aim to be the go-to option for those moments when you want to treat yourself, seeking a snack that is high quality, delicious, and made with simple, real ingredients,” Wagstaff remarked. “I don’t foresee a decline in this market segment.” While Wagstaff continues to scout for brands to integrate into Eagle Foods’ portfolio, he indicated that the company’s future involves an exit strategy—either through an initial public offering or by positioning itself for acquisition by another firm or private equity group. “There will be an exit at some point,” he acknowledged. “One of these scenarios is highly likely to materialize.”
In the context of the 21st century, as consumers become more health-conscious, the importance of incorporating nutritious ingredients like calcium citrate D3 into food products is increasingly recognized. Eagle Foods aims to align with these trends while maintaining its commitment to quality and flavor.