There aren’t many brands out there that can make healthy snacks taste just as good, if not better than carb-, sugar-, and fat-filled versions.
However, those that do tend to add tons of hard-to-pronounce, chemical-filled, ingredients and additives that counteract the original purpose of making the snack healthy in the first place.
Simple Mills, a better-for-you company that produces crackers, cookies, bars, baking mixes, and other snacks with premium, natural, and simple ingredients, is one of the few health food brands that has managed to give fan-favorite snacks a healthy twist without sacrificing ingredient quality or flavor.
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Founded in 2012, Simple Mills has resonated with consumers, reaching more than 30,000 natural and conventional stores nationwide. The brand has become incredibly successful, reporting 14% year-over-year growth and generating net sales of $240 million in 2024.
Workers prepare a Whole Foods Market Daily Shop ahead of opening in the Upper East Side neighborhood of New York.
Flowers Foods announces the acquisition of Simple Mills
Flowers Foods (FLO) announced it’s set to acquire Simple Mills for $795 million in cash. Simple Mills is owned by founder Katlin Smith, Vestar Capital Partners (the company’s largest shareholder), and a group of initial angel investors.
Flowers Foods is the second-largest producer and marketer of packaged bakery foods in the U.S., owning popular American pantry staple brands, including Wonder, Nature’s Own, Dave’s Killer Bread, Tastykake, Sunbeam, and more.
According to the terms of the deal, Simple Mills will operate as an independent subsidiary of Flowers Foods. Simple Mills’ founder, Katlin Smith, and her leadership team will continue to lead the company, and the operational headquarters will remain the same.
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This acquisition would allow the health foods company to better meet its customers’ increasing consumer demand and aid in its future growth by expanding its distribution, accelerating innovation, increasing efficiency, and gaining access to new segments and categories it has yet to cover.
“With Flowers’ resources, we will be well positioned to broaden distribution, accelerate innovation, and amplify brand awareness while advancing our mission. Flowers has a strong track record of fostering growth in its acquired companies while stewarding and protecting their brand promise. I cannot imagine a better partner for Simple Mills and the team, and I look forward to working alongside Flowers to build upon our strong history of growth,” said Simple Mills Founder and CEO Katlin Smith.
If the transaction is approved successfully, this acquisition will be finalized in the first quarter of 2025.
Health food enthusiasts react to the shocking changes in ownership
Although Flowers Foods’ latest acquisition deal aims to help Simple Mills grow, some health food enthusiasts are not as happy about the news since Flowers Foods is known for owning brands with very different products. Most of Flowers Foods’ products contain a huge list of ingredients and additives, including high fructose corn syrup and artificial flavors.
A user took to X to express their disapproval of the acquisition, commenting, “First Siete, now Simple Mills, I worry about the future of my fave gf snacks.”
Another X user expressed her concerns about the company’s future by commenting, “Great for the industry. Awful for public health.”
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However, Flowers Foods CEO Ryals McMullian assured Simple Food’s loyal customers that they will continue fostering and encouraging the preservation of the brand’s authenticity.
“Simple Mills perfectly fits our strategy of adding compelling brands in better-for-you segments that complement and diversify our existing portfolio. Equally important, the brand’s mission aligns with Flowers’ values centered on honesty and integrity, respect and inclusion, and sustainability,” said McMullian. “We look forward to collaborating with them to generate continued growth while preserving the brand’s integrity and staying true to its unmatched quality and taste,” he added.
After the news was announced on Wednesday, Flowers Foods’ shares fell. As of Friday’s market open, they continue to decline, decreasing by around 1.4%.
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