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March 9, 2021

Stir Foods expands private-label presence with Lancaster Fine Foods

Investor-backed condiments maker Stir Foods in Chicago has expanded its private-label presence with another US deal.

By Simon Harvey

Stir Foods, an own-label and contract manufacturer of sauces, dressings and condiments owned by private-equity firm Wind Point Partners, has acquired fellow US business Lancaster Fine Foods.

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The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
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The deal comes a year after Chicago-based Stir Foods bought Canadian private-label and contract manufacturing business Celtrade. Financial terms for either of the transactions were not disclosed.

Like Sir Foods, Lancaster Fine Foods supplies retail and foodservice customers with sauces, dressings, and condiments from its 100,000 square-foot facility in Lancaster, Pennsylvania, with the company noting it has the ability to double that capacity. 

Milt Liu, the CEO of Stir Foods who joined with Wind Point in 2017 to acquire the business, said in a statement: "The cultures and culinary focus of our two companies are very similar, making this a natural partnership. Lancaster, combined with our Toronto facility, allows us to efficiently service the entire East Coast market. Our plan is to invest in Lancaster and leverage our combined capabilities and customer bases to grow the Lancaster facility into one of our 'flagship' locations." 

The statement noted Wind Point plans to further foster organic growth in Stir Foods through product innovation and "additional complementary acquisitions like Lancaster", which would add to deals for Van Law Food Products in 2019 and the salsa business of Sabra Dipping Co. the year before.

Mike Thompson, a co-founder of Lancaster Fine Foods in 2008 and its CEO, said: "Our team is excited to partner with Milt and the Stir team. There is a strong cultural fit, and together we believe we can unlock even stronger growth at Lancaster and Stir. Our operations are also highly complementary in terms of capabilities that we can bring to our combined customer bases, and with the financial backing of Wind Point, we plan to pursue continued investment in new capabilities to drive growth at the Lancaster facility."

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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