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February 6, 2004

USA: Interstate Bakeries ends Pepperidge Farm alliance

US wholesale baker Interstate Bakeries (IBC) has said it has decided to end its two-year-old alliance with Pepperidge Farm, a unit of Campbell Soup Company.

US wholesale baker Interstate Bakeries (IBC) has said it has decided to end its two-year-old alliance with Pepperidge Farm, a unit of Campbell Soup Company.  

The Pepperidge Farm/Interstate alliance produced and distributed a limited line of variety breads under the “Pepperidge Farm” brand in the Arizona, Utah, Idaho, and Montana markets as well as parts of North Dakota and Wyoming.

IBC said production of Pepperidge Farm fresh bakery products currently being serviced by Interstate in these markets will be discontinued effective 14 February, but added that the decision would not affect the distribution of Pepperidge Farm cookies, crackers, stuffing or croutons or IBC bread and cake products.  

IBC’s chairman and CEO, Jim Elsesser, said the alliance had been profitable but that IBC needs to have a stronger presence in the super premium bread segment and that it needs to take an independent course.

“We are committed to introducing our own super premium bread line, with our own unique product offerings, before the end of our current fiscal year,” Elsesser said.

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