B&G Foods pulls Rickland Orchards snack brand
Rickland Orchards had been under pressure for number of quarters
B&G Foods, the US group, has stopped selling products under the Rickland Orchards snacks brand it acquired three years ago.
The company revealed it had discontinued the brand alongside the publication of the group's second-quarter results on Thursday (28 July).
CFO Tom Crimmins pointed to "continued insufficient demand" for Rickland Orchards, which B&G Foods snapped up in October 2013 for US$57.7m.
The Rickland Orchards brand had only been in the US market a year when B&G Foods moved for the business. At the time, then B&G Foods president and CEO David Wenner said Rickland Orchards had achieved annualised net sales of more than US$50m, "with a strong presence across the club, retail, mass and convenience channels".
However, B&G Foods has indicated problems with the brand over the last two years. In October 2014, B&G Foods recorded a $4m loss for the third quarter of that year as it booked impairment charges on Rickland Orchards. Wenner said the brand had seen "disappointing results ... primarily in the warehouse club channel".
Speaking to analysts on Thursday to discuss B&G Foods second-quarter numbers, current president and CEO Bob Cantwell said: "The decision to discontinue the brand will allow our internal resources to better focus on the execution of our overall snack strategy and the execution of our strategy for the New York Style brand, which has had some challenges."
The use of jams, jellies, and preserves is increasing in salads, cookies, pizzas, sandwiches, and smoothies as customers are willing to expand their taste pallet....
About the Foodservice Market in the US. Foodservice refers to the sale of food and beverages that have been prepared out-of-home for immediate consumption, either on the premises from where they are ...
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