US-headquartered Real Good Foods Company has announced the appointment of a new CEO as well as plans to close a production facility in California.
Tim Zimmer has been chosen to lead the frozen meats and seafood company and entered the role earlier this month.
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Zimmer is replacing Gerard Law, who had been working as the group’s CEO since 2020.
Just Food has asked the company for more information on the reasons behind Law’s departure.
Zimmer arrives at Real Good Foods from local pork processing major Smithfield Foods, where he had been chief marketing officer.
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He has spent more than 30 years in the food industry, including at frozen baked goods maker Sara Lee Foods, Kraft Foods, Pinnacle Foods and Nestlé
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By GlobalDataIn a statement, Bryan Freeman, executive chairman of Real Good Foods, said that Zimmer’s background “aligns with the slate of strategic actions we announced today”.
He added: “These are aimed at significantly accelerating the path to profitability and are a testament to our commitment to fellow shareholders.”
Commenting on his appointment, Zimmer said: “In assuming the role of CEO, I am fully committed to leading the company through the transformative journey that lies ahead.
“The brand continues to perform well and has a strong, rapidly growing consumer base. I see a clear opportunity to unlock significant value by streamlining the supply chain, improving manufacturing efficiencies and instilling a culture of operational excellence.
“Together, we plan to earn back our right to grow by proving that we can operate with excellence and generate cash flow.”
Alongside the appointment of a new CEO, Real Good Foods also announced its intentions to close a manufacturing plant in the City of Industry (COI), California.
The site is expected to close at the end of June, the company said.
A “significant portion” of production at the Californian site is expected to migrate to the Real Good Foods factory in Bolingbrook, Illinois.
The move will “improve capacity utilisation, reduced fixed overhead costs, enhance margins, and streamline the supply chain”, the company said.
While an assessment of the “overall impact” of the closure is still “underway”, it is unclear how many jobs the shutting of the COI plant could affect.
Mark Dientz has been appointed senior vice president of operations at Real Good Foods to lead the upcoming changes to its supply chain.
Speaking further on the company’s growth, Freeman said it “remains strong, with total consumption of our branded products increasing 53% year-over-year in the two months ended February 29, 2024.
“On the liquidity front, after taking into account our latest refinancing, the Company has significantly reduced its cash debt service. Ultimately, we expect these changes will enable us to generate free cash flow and self-fund our future growth.”
Set up in 2016, Real Good Foods produces frozen breaded chicken and fish products, as well as frozen quesadillas, burritos and quesadillas, among other products.
The group markets to more than 15,000 stores across the US, including Costco, Walmart, Kroger and Publix.
