Flowers Foods Specialty Division
Bakery products manufacturer producing specialty breads and baked goods.
PE-OWNED
Acquired by Sentinel Capital Partners2021-05-18
What Made It Great
Regional bakery network with strong local brand presence
What PE Will Likely Do
Cheaper ingredients used in Flowers Foods' specialty breads and baked goods, such as replacing higher quality wheat flour with cheaper all-purpose flour or using lower-quality oils and fats
Reduction in package sizes for Flowers Foods' specialty products while maintaining or increasing retail prices (shrinkflation)
Consolidation of Flowers Foods' manufacturing facilities, leading to the closure of some regional bakeries and disruption to local supply chains
Alteration of Flowers Foods' product recipes to reduce costs, potentially impacting taste, texture, and nutritional value
Expected Timeline
“0 to 6 months months”
Minimal visible changes as the ownership transition takes place
“6 to 12 months months”
Behind-the-scenes changes to suppliers and product formulas begin
“12 to 24 months months”
Consumers start noticing quality differences in Flowers Foods' specialty products, such as changes in taste, texture, and freshness; brand reputation may begin to suffer, and customer complaints increase
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Be on the lookout for changes in the quality, taste, and freshness of Flowers Foods' specialty products
Compare the current products to past versions to identify any changes in package sizes, ingredients, or recipe formulations
Consider switching to alternative local or regional bakery brands that may maintain higher-quality standards
Alternatives
Look for family-owned or employee-owned businesses