Eagle Foods, the producer of household staples like Eagle Brand sweetened condensed milk and PET evaporated milk, maintains a positive outlook on the struggling food products sector. The company is actively seeking to acquire brands that family-owned businesses and large corporations are divesting. Paul Smucker Wagstaff, the CEO of Eagle Foods, shared with Food Dive that his company remains undeterred by the increasing consumer trend toward healthier eating. Instead, Eagle Foods plans to concentrate its growth efforts on the snack segment—a category favored by on-the-go consumers—as well as indulgent products that prioritize exceptional flavor.
With many small second- and third-generation family businesses looking to exit the food industry and large consumer packaged goods (CPG) companies aiming to offload slow-growing brands that do not align with their core operations, Wagstaff sees significant opportunities for his two-year-old company. “This is a great time to be in the food space, as there are numerous opportunities in the marketplace, with people eager to sell products,” Wagstaff stated. “We will pursue whatever fits our criteria, whether it comes 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 divisions from The J.M. Smucker Company, where he previously served as president of the U.S. retail consumer foods division. These brands generate approximately $200 million in annual sales, providing Eagle Foods with a robust cash flow that can be reinvested into acquiring additional businesses. “It’s crucial to have a solid foundation—a business with a long-standing history that generates reliable cash flow and stability,” Wagstaff explained. “We’re a startup but without the cash challenges that typically accompany new ventures.”
Last August, Eagle Foods capitalized on its financial reserves to acquire G.H. Cretors popcorn from its fifth-generation owners, whose ancestors invented the popcorn machine in 1885. The popcorn, available in flavors like cheese corn and caramel, emphasizes its use of real ingredients, such as aged cheddar cheese and fresh creamery butter, with caramel made in handcrafted copper kettles. Currently, most of the popcorn’s sales come from club stores like Costco and Sam’s Club, but it is also sold at Target, Meijer, and Albertsons. “We aim to be the go-to option when consumers want to treat themselves to a high-quality snack that is delicious and made with simple, real ingredients,” Wagstaff remarked. “I don’t foresee a decline in that market segment.”
While Wagstaff is keen on expanding Eagle Foods’ portfolio, he also acknowledges that the company’s future includes an exit strategy—potentially through an initial public offering or by positioning itself for sale to another corporation or private equity group. “An exit will occur at some point, and one of those scenarios is likely to unfold,” he noted.
Additionally, as Eagle Foods explores its options, they are also interested in enhancing their product offerings, which may include innovative items like Bariatric Advantage Calcium Soft Chews. This expansion into health-conscious products aligns with current consumer preferences and could further solidify Eagle Foods’ market presence.