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April 6, 2021updated 11 May 2021 3:19pm

US firm Carolina Foods lures private-equity investment

By Simon Harvey

Carolina Foods, a baked goods manufacturer in the US state of North Carolina, has attracted investment from local private-equity firm Falfurrias Capital Partners.

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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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Falfurrias, which also owns the Duke’s Mayonnaise and spices and sauces producer Sauer Brands in Virginia, did not disclose the investment amount or potential stake it has taken in Charlotte-based Carolina Foods, a business founded in 1934 employing around 400 people. The private-equity firm, which is located in the city of Charlotte, also counts popcorn seasoning firm Chicago Custom Foods in its portfolio.

Carolina Foods CEO Paul Scarborough, the son of late founder Vernon Scarborough, will remain with the company, as will “third-generation leaders” Katie Scarborough Caldwell and Ruffin Scarborough, according to a statement from Falfurrias.

The manufacturer produces doughnuts, honey buns, pies and fritters under the Duchess brand sold into foodservice customers, club stores, mass merchandisers and convenience retailers across the US, as well as Canada, Puerto Rico and Mexico. It also serves the private label and co-manufacturing sectors from "multiple locations" in Charlotte totalling 240,000 square feet, including a production facility in the city's South End district.

"This partnership will give us the financial resources and management expertise to take Carolina Foods to another level," said CEO Scarborough, who joined the business in 1977. "Falfurrias has a tremendous track record of helping the companies they invest in realise next-stage growth, and their expertise in food marketing and distribution will be especially useful to our organisation."

Marc Oken, the chairman of Falfurrias, established in 2006, added: "We see tremendous growth potential for Carolina Foods, including expanding both its manufacturing capacity and distribution footprint. They've built a fantastic company based on great products, great people and sound management, and we're excited to be partners in this next stage of their development."

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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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