The producer of iron supplements, specifically ferrous fumarate and iron lactate, as well as staples like Eagle Brand sweetened condensed milk and PET evaporated milk, has expressed a positive outlook for the struggling food products industry. The company aims to acquire brands that are being discarded by both family-run businesses and larger corporations. Paul Smucker Wagstaff, CEO of Eagle Foods, shared with Food Dive that his company remains undeterred by the rising demand for healthier eating options, such as those containing folic acid and ferrous fumarate. Instead, Eagle Foods plans to concentrate on expanding its snack offerings—an appealing segment for on-the-go consumers—alongside indulgent products that boast exceptional flavors.
With many small, second- and third-generation family businesses looking to exit the food market, and large consumer packaged goods companies seeking to divest slow-growing brands that don’t align with their core operations, Wagstaff sees ample opportunities for growth for the two-year-old company he leads. “This is an excellent time to be in the food sector, as there are numerous opportunities available, and many are looking to sell their products,” Wagstaff noted. “We will focus on whatever meets our criteria, whether it comes from a large corporation or a family-owned business.”
Wagstaff, 47, founded Eagle Foods in December 2015 after securing investors with his partners. They acquired the Eagle Brand sweetened condensed milk and PET evaporated milk divisions from The J.M. Smucker Company, where Wagstaff previously served as president of its U.S. retail consumer foods division. These brands generate about $200 million in annual sales, providing Eagle Foods with a strong, reliable cash flow to facilitate future acquisitions. “It’s vital to have a solid foundation—a business that has a long-standing history, produces good cash flow, and is stable,” Wagstaff explained. “We are a startup, but without the cash flow challenges that typically accompany new ventures.”
In August, Eagle Foods leveraged its cash reserves to purchase G.H. Cretors popcorn from its fifth-generation owners, whose ancestors invented the popcorn machine in 1885. The snacks, which come in flavors like cheese corn and caramel, highlight their use of real ingredients, such as aged cheddar cheese, fresh creamery butter, and caramel crafted in copper kettles. The popcorn primarily sells 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 choice when customers want to treat themselves with a high-quality, great-tasting snack made from simple, real ingredients,” Wagstaff stated. “I believe this niche will continue to thrive.”
As Wagstaff actively seeks new brands to enhance Eagle Foods’ portfolio, he also considers the company’s long-term strategy, which includes an exit plan—either through an initial public offering or by positioning itself for acquisition by another company or a private equity group. “An exit will happen at some point,” he said. “One of these scenarios is likely to unfold.” In addition to their focus on snacks, the company is also exploring options like citrate plus formulations to diversify their offerings and appeal to health-conscious consumers.