Atlantic Baking Strives for Private Label Cookie Lead
Number-two U.S. cereal maker, Kellogg Co., agreed to sell its Bake-Line Products business, acquired as part of its purchase of Keebler Foods Co. last year, to Atlantic Baking Group Inc., reports Reuters.
David Shanholtz, president and chief executive of Atlantic Baking said with this purchase, ” ABG will become the number-one supplier in the private label cookie category and number two overall in the private label biscuit industry.”
“Private label is a growing part of the market,” Mr. Shanholtz says. “There has been a lot of consolidation among retail supermarkets over the years and private labels are a way for them to differentiate themselves… it gives the consumer a reason to shop in a specific store.”
Atlantic Baking has indicated that it expects to make further acquisitions
as part of its growth strategy.
Moderator Comment: What retailers are doing the best
job of using private label to differentiate from the competition?
This is big news in private label land. Atlantic Baking
moves to the head of the class with the purchase of Bake-Line Products. It will
be interesting to see if the new ABG is in a better position to help retailers
grow share of store-brands in the cookies and crackers category. [George
Anderson – Moderator]