Granny Goose Pressured By Industry Giants.
Parent company G.F. Industries, Inc. first announced its intent to sell Granny Goose on January 5, 1995. CS First Boston Corporation was engaged to help find a buyer, but efforts to sell the company have been unsuccessful to date.
"We are continuing our discussions with prospective buyers," said Harry Walsh, President of Granny Goose. "Despite our reputation as the best known regional snack food company in Oregon, our quality brands, capable workforce, and strong marketshare, a purchase offer has not yet been received."
"Over the past couple of years, many snack food companies across the country have been sold as it became more difficult to compete against consumer product giants, Frito Lay, owned by PepsiCo, and Eagle Snacks, owned by Anheuser Busch," comments Walsh.
Most recently, Borden, Inc., who up until last year was the number two player in the industry, was forced to sell off its entire North American Snack Food Division.
"Despite the high quality of our products, our number two position in the marketplace, and a 14% overall share, Granny Goose has a tough time competing against multinational corporations," said Rich Dwinell, Vice President of Sales and Marketing at Granny Goose. "We have taken every possible action to turn Granny around," said the company's Senior Vice President, Wesley Felton. "We put resources behind our brands. We even purchased our long-term competitor, Laura Scudder's, and brought 100 jobs back to California in the process. We are holding the line on costs as best we can, and we never compromise our quality. Nevertheless, we continue to face intense competition from Pepsi and Budweiser."
G.F. Industries' two other regional snack companies, Blue Bell Snack Foods, Inc. in Portland, Oregon and Bell Brand Snack Foods, Inc. in Southern California were also offered for sale in January. Employees of these companies will also receive similar announcements. Granny Goose Foods manufactures the Granny Goose and Laura Scudder's snack food brands in its Oakland plant.
CONTACT: Kamer-Singer & Associates
Sam Singer, Marti DiSario, 415/512-6800
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|Date:||Apr 12, 1995|
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