In an effort to focus on core products and channels, US food group Lancaster Colony has ceased production of its Flatout and Angelic Bakehouse bakery brands, resulting in the closure of the production facilities and affecting 80 employees.
CEO David Ciesinski announced the decision to discontinue the Flatout and Angelic Bakehouse brands in March, citing their lack of significant contribution to the company’s financial results and operational challenges due to distribution limitations.
Lancaster Colony will now shift its focus to its core retail brands like New York Brand Bakery, Sister Schubert’s, and Marzetti, along with its retail licensing program and foodservice business.
The company acquired Flatout for around $92m in 2015 and Angelic Bakehouse in 2016. Despite the closures, Lancaster Colony reported a 1.4% increase in sales in the third quarter and a 15% rise in net income.
Looking ahead, Ciesinski anticipates retail sales to benefit from the licensing program and projects volume growth in the foodservice segment, although deflationary pricing may pose challenges.
Lancaster Colony’s strategic move signals a shift towards enhancing its key brands and optimizing its business for sustainable growth in the dynamic food and beverage industry.