Cookie and Cracker Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 311 cookie and cracker manufacturers in the US produce crackers and biscuits, cookies, wafers, and ice cream cones. The industry is comprised of independent manufacturers that produce and sell their own brands, and contract manufacturers that produce and package products for customers under the customer’s brand(s).

Changing Consumer Diets

Demand for cookies and crackers can change with consumer diets and fads.

Food Safety Regulations

Like other food production operations, cookie and cracker manufacturers are subject to regulations regarding food handling, storage, contamination, allergens and package labeling.

Industry size & Structure

A typical cookie and cracker manufacturer operates out of a single location, employs fewer than 20 workers, and generates about $36 million annually.

    • The cookie and cracker manufacturing industry consists of about 311 companies which employ about 27,500 workers and generate about $11 billion annually.
    • About 87% of firms have just one production facility. About 46 firms are large, employing 100 or more workers each.
    • The industry is highly concentrated with the 8 largest firms representing 69% of revenue.
    • Customer industries include food distributors, grocery stores, mass merchandisers, drug and discount stores, restaurants, caterers and snack shops.
    • Large companies include Mondelez International (Oreo, Ritz, Nabisco), Kellogg’s (Town House), Campbell’s (Pepperidge Farms, Snyder’s Lance, Archway) and Nestle (Toll House). Some large manufacturers are highly diversified and produce a wide variety of foods and beverages in addition to cookies and crackers.
    • Contract manufacturers include Hearthside Foods, Western Baking Corporation, Oakhouse Bakery, and Richmond Baking.
                                    Industry Forecast
                                    Cookie and Cracker Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Nov 15, 2022 - Merger Would Reshape US Supermarket Industry
                                    • The merger of Kroger and rival Albertsons – two of the US’s largest grocery chains – would reshape the supermarket landscape by creating a supermarket giant with nearly 5,000 stores, 66 distribution centers, and annual revenue of about $200 billion. As such, the merger expected to draw heavy scrutiny from the federal regulators and lawmakers. The companies say their merger would put them on better competitive footing against Walmart and Amazon. The US Senate plans to hold a hearing in November to examine competitive and consumer concerns arising from the $20-billion deal. Lawmakers are questioning how the proposed deal could affect food prices, grocery workers jobs, and the ability of smaller supermarkets to compete.
                                    • Bobo’s, a maker of oat bars and other baked goods, has opened a new wind-powered production facility in Loveland, Colorado, SF&WB reported in November 2022. The new 123,000 square-foot production facility more than triples Bobo’s production capacity while reducing its carbon footprint, and will help the company achieve carbon neutrality by December 2022. The company also plans to purchase carbon offsets. The new facility is powered entirely by wind and consolidates three previous facilities into a single operation that has the capacity to produce 1 million bars, bites, or toaster pastries a day, according to the company. The new facility has also achieved more than 95% diversion of its solid waste from the landfill through a comprehensive waste management program.
                                    • Free samples – a grocery store perk that all but vanished during the pandemic – are returning to grocery stores, The Wall Street Journal reported in August. That’s good news for the makers of crackers on which samples are often served. Many food and beverage companies, especially those launching new products, rely on in-store sampling to boost sales. Some shoppers say they’re noticing fewer samples along with new rules or social cues about consuming them, according to WSJ. The pandemic has left its mark with some free samples now given out in little bags by workers behind plastic barriers. Retailers that have recently resumed offering free samples include Whole Foods Market and Costco Wholesale.
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