US INDUSTRY TODAY 63 B&G FOODS, INC. PROFILE ▼ PROFILE B&G FOODS, INC. ▼ W HEN YOU DON’T RELISH JUST BEING IN A PICKLE, the key to success is diversification: both in your prod- uct line and your product distribution channels. In 1889 Bloch & Guggenheimer started a pickle, pepper and rel- ish business in New York City. The taste of success barreled beyond the pickle-loving metropolitan New York market to extend the now-familiar red B&G label to the point at which today there are 70 varieties of pickles and more than 40 different pepper prod- ucts consumed nationwide. While most consumers recognize B&G as a leading brand, most are not aware that parent company B&G Foods, Inc. also markets baked beans, fruit jellies, hot sauces and canned meats, among other foodstuffs, under a variety of equally prominent brand names not otherwise associated with pickles. This is the underlying crux of the B&G marketing strategy: acquire leading brands, maintain their separate distinctive identi- ties but leverage sales through multiple local and national distri- bution channels. While B&G pickle products are at the core of the company’s product line, they are also part of a large extended, and growing, foods family, which includes such highly recogniza- ble brand names as Ac'cent, B&M, Brer Rabbit, Emeril's, Joan of Arc, Las Palmas, Maple Grove Farms of Vermont, Ortega, Polaner, Red Devil, Regina, San Del, Trappey's, Underwood, Up Country Organics, Vermont Maid and Wright's. Now headquartered in Parsippany, N.J., the pickle-maker reor- ganized in December 1996 as B&G Foods Holding Corporation. It began acquiring new brands in June 1997 and now with its most recent acquisition, Ortega in August 2003 from Nestlé, the com- pany has 16 different major brands. In October 2004, it became a publicly traded company and was renamed B&G Foods, Inc. At that time it announced a net increase in third quarter sales of 10.4 percent to $91.9 million compared to the previous year and an operating income increase of 12 percent to 16 million. “It was actually our intention to keep the company private,” Al Soricelli, executive vice president of marketing and acquisitions, says, “but as we explored new funding options this seemed the best way to maximize the return to our ownership and to build on our unique business platform.” He explains that what makes B&G Foods different is that it isn’t looking to reinvent the edible wheel. “We have no desire to create new brands, or develop new product categories,” says Soricelli. “What we are looking to do is acquire exist- ing products with strong brand identities and sales in niche mar- kets.” A common feature is that these products are all canned or packaged in some way to have long unspoiled shelf lives, as opposed to refrigerated or fresh foods with looming expiration dates that require quick turnover. It doesn’t matter what food cat- egory the product might be in – a sauce or a flavor- ing or a syrup, a bean or a 62 US INDUSTRY TODAY B&G FOODS, INC. AND ITS SUBSIDIARIES MANUFACTURE, SELL, AND DISTRIBUTE A DIVERSIFIED VARIETY OF HIGH-QUALITY, SHELF-STABLE FOODS DISTRIBUTED THROUGH MULTIPLE RETAIL GROCERY, FOOD SERVICE, SPECIALTY STORE, PRIVATE LABEL, CLUB AND MASS MERCHANDISE CHANNELS THROUGHOUT NORTH AMERICA AND PUERTO RICO. DAVID SOYKA LEARNS HOW THIS COMPANY SHOPS AROUND TO PRODUCE APPETIZING VALUES. B&G’s product line includes roasted peppers, pickles and olives.
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US INDUSTRY TODAY 63
B&G FOODS, INC. PROFILE
▼PROFILE B&G FOODS, INC.▼
W HEN YOU DON’T RELISH JUST BEING IN A PICKLE,the key to success is diversification: both in your prod-uct line and your product distribution channels.
In 1889 Bloch & Guggenheimer started a pickle, pepper and rel-ish business in New York City. The taste of success barreledbeyond the pickle-loving metropolitan New York market to extendthe now-familiar red B&G label to the point at which today thereare 70 varieties of pickles and more than 40 different pepper prod-ucts consumed nationwide. While most consumers recognize B&Gas a leading brand, most are not aware that parent company B&GFoods, Inc. also markets baked beans, fruit jellies, hot sauces andcanned meats, among other foodstuffs, under a variety of equallyprominent brand names not otherwise associated with pickles.
This is the underlying crux of the B&G marketing strategy:acquire leading brands, maintain their separate distinctive identi-ties but leverage sales through multiple local and national distri-bution channels. While B&G pickle products are at the core of thecompany’s product line, they are also part of a large extended,and growing, foods family, which includes such highly recogniza-ble brand names as Ac'cent, B&M, Brer Rabbit, Emeril's, Joan ofArc, Las Palmas, Maple Grove Farms of Vermont, Ortega, Polaner,Red Devil, Regina, San Del, Trappey's, Underwood, Up CountryOrganics, Vermont Maid and Wright's.
Now headquartered in Parsippany, N.J., the pickle-maker reor-ganized in December 1996 as B&G Foods Holding Corporation.It began acquiring new brands in June 1997 and now with its mostrecent acquisition, Ortega in August 2003 from Nestlé, the com-pany has 16 different major brands. In October 2004, it becamea publicly traded company and was renamed B&G Foods, Inc. Atthat time it announced a net increase in third quarter sales of 10.4percent to $91.9 million compared to the previous year and anoperating income increase of 12 percent to 16 million.
“It was actually our intention to keep the company private,” AlSoricelli, executive vice president of marketing and acquisitions,says, “but as we explored new funding options this seemed thebest way to maximize the return to our ownership and to build onour unique business platform.”
He explains that what makes B&G Foods different isthat it isn’t looking to reinvent the edible wheel.“We have no desire to create new brands,or develop new product categories,”says Soricelli. “What we arelooking to do isacquire exist-
ing products with strong brand identities and sales in niche mar-kets.” A common feature is that these products are all canned orpackaged in some way to have long unspoiled shelf lives, asopposed to refrigerated or fresh foods with looming expirationdates that require quick turnover. It doesn’t matter what food cat-egory the product might be in– a sauce or a flavor-ing or a syrup, abean or a
62 US INDUSTRY TODAY
B&G FOODS, INC. AND
ITS SUBSIDIARIES MANUFACTURE,
SELL, AND DISTRIBUTE A DIVERSIFIED VARIETY OF
HIGH-QUALITY, SHELF-STABLE FOODS DISTRIBUTED THROUGH
MULTIPLE RETAIL GROCERY, FOOD SERVICE, SPECIALTY STORE, PRIVATE LABEL, CLUB AND MASS
MERCHANDISE CHANNELS THROUGHOUT NORTH AMERICA AND PUERTO RICO. DAVID SOYKA
LEARNS HOW THIS COMPANY SHOPS AROUND TO PRODUCE APPETIZING VALUES.
B&G’s product line includes roasted peppers, pickles and olives.
DOING BUSINESS WHERE THE BUSINESS ISGeographical coverage is both national and regional. “For exam-ple, B&M baked beans is mostly an East Coast product, while ourLas Palmas line is more popular in the West Coast,” Soricellipoints out. “The key is to find a stable product, anticipate trendsfor demand, and then do business where the business is for it.”
He adds, “A product mix ranging from salad dressings to spicesto salsa and other specialty food products also protects us fromseasonal buying trends, which a number of products are suscep-tible to. Our overall sales aren’t subject to seasonal variationssimply because while one set of products may be in a downperiod, another set are in their high demand cycle.”
In addition, Soricelli points out, “Particularly in the market cat-egories in which we compete, consumers frequently change theirtaste preferences, dietary habits and product packaging prefer-ences. By anticipating these trends and developing and market-ing suitably responsive products, we have largely been able toavoid any sales dips due to these factors.”
Equally important is that if the business model doesn’t pan outfor a product, or turns out not to complement the rest of the prod-uct menu and sales channels, B&G Foods is quick to trim. “Theoriginal B&G pickle company had gotten into New York-stylebagel chips,” Soricelli explains, “but we found that the bagel chipbusiness didn’t fit our marketing approach, so we sold it off. We’re
constantlyevaluating potentialnew acquisitions; at thesame time, we’ll clear away a prod-uct that isn’t performing or no longer fitsinto our strategy.”
He adds, “Our management team has been in placesince 1990, and it has extensive experience in this industry.We have a demonstrated track record of successfully operatingin a leveraged environment to introduce new products, expandniche or specialty products into additional channels, and consol-idate and enhance acquired businesses. That’s what makes usdifferent from everyone else in this industry.”
DIVERSITY IS THE KEYUnderpinning the business strategy is the diversity of sales chan-nels. Says Soricelli, “Diversity is our keystrength. It gives us stability byspreading growth opportuni-ties across a range ofoptions, providing usthe flexibility to
64 US INDUSTRY TODAY
pickle. “Whatmatters is the potential
to grow the product throughcost-efficient distribution and cre-
ative, sales and marketing” Soricelli adds,“and thereby achieve a margin structuretypically above the industry average.”
B&G Foods distributes to a variety ofregional and national sales outlets, includ-ing a range of mass merchandisers, clubs,supermarket warehouses, retail grocery,food services, and specialty stores, as wellas some export. There is a separate salesorganization dedicated to each channel.
B&G FOODS, INC. PROFILE
▼PROFILE B&G FOODS, INC.▼
Congratulations B&G FoodsGreat Lakes Kraut Co. LLC is proud
to be your Sauerkraut supplier.
America’s Finest Kraut
US INDUSTRY TODAY 65
B&G food markets 16 different popular food brandsand distributes its wide range of products toregional and national sales outlets.
Retail • Food Service • IndustrialPrivate Label • Co-Packing • Kosher Certified
101 Central Avenue • PO Box 709 • E. Farmingdale, New York 11735631.845.1717 • Fax: 631.420.7309 • www.paesana.com • [email protected]
L&S Packing Co., Inc.“Packing Perfection...From Sauce to Nuts”
66 US INDUSTRY TODAY
PROFILE B&G FOODS, INC.▼
quickly capitalize on new consumer shopping trends by movingproduct through sales channels that, while new for that particular product, are already an established part of our dis-tribution network. And it lets us just as easily step back andreposition the product as necessary.”
While B&G Foods is a marketing and sales power-house, it is also a manufacturer that has to purchase arange of agricultural products, including meat andpoultry, as well as raw materials from other com-modity processors, food and packaging compa-nies. And, like any manufacturer, it has to deal withfluctuations in the cost of raw materials. “In thepast six to 12 months we have seen increasingprices in certain of these commodities,” Soricellisays, “particularly in packaging materials, porkand chicken. We manage this risk by enteringinto short-term supply contracts and advancecommodities purchase agreements from timeto time, and if necessary, by raising prices.”
He adds, “As the retail grocery trade contin-ues to consolidate and our retail customers growlarger and become more sophisticated, our retailcustomers may demand lower pricing andincreased promotional programs. These cus-tomers are also reducing their inventories andincreasing their emphasis on private label prod-ucts. To date we have been able to offset thesetrends by using our management expertise, uniqueproducts and category leadership to maintain andincrease volume and profits overall for the company.”
B&G Foods operates a number of manufactur-ing facilities throughout the nation. Locationsinclude Hurlock, Md. (B&G Pickles), Roseland,N.J. (Polaner), New Iberia, La. (Trappey’s),St. Johnsbury, Vt. (Maple Grove Farms),Portland, Me. (B&M and Ac'cent) andStoughton, Wis. (Ortega).
Soricelli believes the company’sappetite for growth and new prod-uct acquisition should continueunhampered. “Because of howwe’re uniquely positioned inthe market, our diverse cus-tomer base, and the experi-ence and expertise of ourmanagement team, we’relooking to add more toour plate. Our family ofproducts is a growingfamily.”
B&G FOODS, INC. PROFILE
▼
Anchor Glass Container Corporation is the third largest manufacturer of glass containers in the United States. It has eight strategically located facilities where it produces a diverse line of flint (clear), amber, green andother colored glass containers for the beer, beverage, food, liquor and flavored alcoholic beverage markets.
Anchor Glass Container Corporation4343 Anchor Plaza Pkwy • Tampa, Fl 33634 • 813-884-0000
WHO IS EMPLOYMENT STAFFING?
We are a full service employment staffing firm. Ourteam of professionals provides alternative staffingservices and solutions to a wide variety of clients.We are dedicated…realizing that helping your company succeed enables us to be successful.
Phone: 704-982-6004Fax: 704-986-0449
P.O. Box 1819160 North First StreetAlbemarle, NC 28002
CONTACT: RON F. MOONEYHAMSr. Vice President
Employment Staffing/Employment Control is Excitedto be a Part of the B & G Success Story.
A line of Emerilsauces and graviesis among the mostpopular in thecompany’s productoffering.
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