Ridgeland, Mississippi-headquartered Cal-Maine Foods, the largest egg company in the United States and a leading player in the egg-based food industry, and Sara Lee Frozen Bakery, a leading manufacturer of premium frozen baked goods, have announced Cal-Maine Foods’ acquisition of certain assets of the Van Foods business of Sara Lee Frozen Bakery, a Kohlberg portfolio company. Terms of the deal were not disclosed.
Van’s holds the top position in gluten-free waffles and is a well known frozen pancake brand in North America, establishing itself as a category leader within the fast growing better-for-you frozen breakfast segment. This acquisition is aimed at supporting Cal-Maine Foods’ strategy to diversify its business model, grow in prepared foods business-to-consumer retail, and deliver greater value across the supply chain.
The addition of Van’s is expected to increase Cal-Maine Foods’ prepared foods annual sales by approximately 10% and volume by about 6% on a pro forma basis. Van’s will enhance Cal-Maine Foods’ ability to serve evolving consumer preferences while strengthening its presence across grocery, e-commerce, and other direct-to-consumer channels.
Van’s competes in the fast-growing better-for-you frozen breakfast segment by combining broad retail distribution with a strong value proposition of taste, convenience, and products tailored to a wide range of dietary needs and preferences.
“Van’s is an exciting and highly complementary addition to our portfolio,” said Sherman Miller, president and chief executive officer of Cal-Maine Foods. “We believe this acquisition will further our diversification strategy by expanding our reach in prepared foods consumer-facing retail. We see meaningful opportunities to drive growth, unlock efficiencies, and innovate in ways that better serve our customers and consumers.”
He added: “We have tremendous respect for the Van’s brand and the relationships it has established with its customers and consumers. Our goal is to honor that legacy while bringing additional capabilities and resources to help the brand capture incremental share, supported by a pipeline of innovations expanding into new dayparts, formats, and snacking occasions.”
“Van’s is a genuine category leader with a loyal consumer base, and it is important to us that it have an owner that is best positioned to ensure its continued success,” said Peter Laport, chief executive officer of Oakbrook Terrace, Illinois-based Sara Lee Frozen Bakery. “We made the decision to divest the brand to sharpen our focus on our strong portfolio of core brands where we’re investing for the long term. Making disciplined decisions about where we compete is part of how we build a better, more resilient business. We are confident Van’s is going to the right home, with an attractive runway ahead, as Cal-Maine brings complementary capabilities to accelerate its growth, particularly around protein and better-for-you nutrition.”
Van’s will continue to operate under its existing brand identity, supported by Cal-Maine’s integrated platform to scale operations, enhance innovation, and increase market access. This transaction further positions Cal-Maine Foods as a diversified, end-to-end food solutions provider, well-equipped to meet the needs of customers across channels and adapt to the evolving food landscape.
