View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
August 29, 2019

US baker Hometown Foods on acquisition trail amid backing from PE firm Keystone

Florida-based bakery business Hometown Foods USA has received an undisclosed amount of funding from a local private-equity firm.

By Leonie Barrie

Florida-based bakery business Hometown Foods USA has been backed by local private-equity firm Keystone Capital.

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.

It plans to use the investment as a platform from which to “actively seek acquisition opportunities in the bakery space,” Keystone said.

Financial details have not been disclosed and nor has the size of Keystone’s stake.

The baker’s product offering includes Mrs. W’s Wonderlicious bundt cakes, New York-style bagels, crème cakes, crumb bundt cakes and loaf cakes. The Miami business supplies in-store bakeries, club stores and the foodservice channel. 

Hometown, which can trace its roots back more than 100 years, is run by the fourth generation of the Schwartzberg family.

The deal sees Chicago-based Keystone reunited with Kevin McDonough, who will operate as executive chairman and strategic adviser to Hometown Foods. He most-recently served as the president of Weston Foods’ frozen and biscuit businesses and prior to that he was the president of Keystone Bakeries Holdings (KBH). Weston Foods acquired KBH, Keystone Capital’s bakery platform, in 2010.

Speaking about the Keystone deal, Hometown Foods president Troy Schwartzberg said: “Joining forces with Keystone will provide us with a greater level of resources and capabilities to serve our client partners and bring Mrs. W’s Wonderlicious bundt cakes and our other high-quality bakery products to an even wider audience – all while preserving our unique culture and unwavering commitment to baking quality and innovation.”

Chaoran Jin, managing director of Keystone, said: “We are excited to partner with the Schwartzberg family and continue the legacy they’ve built at Hometown Foods. We see a great opportunity to further enhance Hometown’s customer reach, product capabilities as well as channel expansion through organic growth and strategic acquisitions.”

Related Companies

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.

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food