Flowers Foods Expands Healthy Snacking With Simple Mills Acquisition

Flowers Foods, Inc. FLO has concluded its acquisition of Simple Mills, a leading brand in the better-for-you snacking industry. With this acquisition, Flowers Foods strengthens its commitment to meeting the growing demand for healthier snack alternatives.Deeper Look at Flowers Foods’ Recent AcquisitionFounded in 2012, Simple Mills has rapidly grown into a leading provider of premium crackers, cookies, snack bars and baking mixes. The brand is known for its commitment to clean ingredients, nutrient-dense products and exceptional taste. With distribution in more than 30,000 stores nationwide, Simple Mills has established itself as a dominant player in the natural food space.By acquiring Simple Mills, Flowers Foods not only reinforces its foothold in the better-for-you and snacking segments but also diversifies category exposure. The company is expected to broaden distribution, accelerate innovation and enhance brand awareness to drive further growth and profitability.Flowers Foods actively pursues acquisitions to broaden its brand portfolio, extend geographic reach and diversify product offerings. By identifying businesses that align with its strategic objectives, the company reinforces presence in core categories while capitalizing on emerging market opportunities. Significant past acquisitions contributing to Flowers Foods’ expansion include Papa Pita Bakery in 2023, Dave’s Killer Bread and Alpine Valley Bread Company in 2015 and Canyon Bakehouse in 2018.What More Should Investors Know About FLO?Flowers Foods continues to shift toward premium and better-for-you products, expanding beyond traditional bakery goods. Investments in innovative products, such as gluten-free, organic and keto-friendly options, are driving consumer interest and reinforcing the company’s commitment to meeting evolving dietary trends.Flowers Foods is implementing pricing and cost-saving initiatives while enhancing overall business efficiency. The company is focused on executing its portfolio strategy by phasing out low-margin businesses and replacing them with higher-margin opportunities. Moreover, Flowers Foods is investing in its brands to drive volume and market share, improving product mix and leveraging technology to enhance data visibility and inform strategic decision-making. Further, investments in talent development and operational execution are key priorities to ensure sustainable long-term growth.While these strategies aim to strengthen Flowers Foods' position, the company still faces challenges in sustaining growth, amid competitive pressures and an inflationary environment. Weakness in certain product categories, coupled with higher promotional activity impacted the company’s overall fourth-quarter 2024 performance. The company's ability to maintain market share and drive revenue growth will depend on effectively managing these challenges through strategic pricing, cost efficiencies and continued brand investment.FLO Stock’s PerformanceShares of this Zacks Rank #5 (Strong Sell) company have lost 14.7% in the past three months compared with the industry’s decline of 4.5%. The S&P 500 has returned  0.9% in same period.FLO Stock Past Three Month PerformanceImage Source: Zacks Investment ResearchFinal Thoughts: Can FLO Regain Momentum?Flowers Foods’ acquisition of Simple Mills is poised to drive growth. The integration of Simple Mills will likely expand Flowers Foods’ product offerings and enhance its ability to serve customers with better-for-you snacking options. With Flowers Foods’ ongoing focus on innovation, distribution expansion and operational efficiencies, it is well-positioned to capitalize on the growing health-conscious consumer trend and strengthen competitive edge in both physical and digital retail spaces.Stocks to ConsiderFreshpet Inc. FRPT manufactures, distributes and markets natural fresh meals and treats for dogs and cats. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings indicates growth of 23% and 105.2%, respectively, from the prior-year reported levels. FRPT delivered a trailing four-quarter earnings surprise of 78.8%, on average.Post Holdings, Inc. POST operates as a consumer-packaged goods holding company in the United States and internationally. It currently carries a Zacks Rank #2 (Buy). POST delivered a trailing four-quarter earnings surprise of 22.3%, on average.The Zacks Consensus Estimate for Post Holdings’ current fiscal-year sales and earnings indicates growth of 0.3% and 2.2%, respectively, from the prior-year reported levels.Lancaster Colony Corporation LANC engages in the manufacturing and marketing of specialty food products for the retail and foodservice channels in the United States. It currently has a Zacks Rank #2. LANC delivered a trailing four-quarter earnings surprise of 1.7%, on average.The consensus estimate for Lancaster Colony’s current financial-year sales and earnings implies growth of 3.1% and 6.1%, respectively, from the year-ago period’s reported figure.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Freshpet, Inc. (FRPT): Free Stock Analysis Report Flowers Foods, Inc. (FLO): Free Stock Analysis Report Post Holdings, Inc. (POST): Free Stock Analysis Report Lancaster Colony Corporation (LANC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks