Retail food brands whose goods are sold in grocery stores face many challenges to achieve profitability and avoid financial distress and bankruptcy.
Companies need adequate marketing and advertising budgets to showcase their products to the public and obtain coveted shelf space in stores where shoppers can obtain their goods.
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An internet presence is also essential to the success of retail products, as more consumers today are searching Amazon or other online retailers for goods they want or going right to the retail company’s website to purchase products.
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One of the most significant retail companies to face financial distress and file for bankruptcy was Hostess Brands — the maker of Wonder Bread, Twinkies, Ho Hos, and Ding Dongs — which filed its petition in January 2012, liquidated its products, and caused these well-known treats to disappear from store shelves for months.
Hostess made its comeback after J.M. Smucker in September 2012 agreed to purchase the defunct company for about $5.6 billion.
Borden and Dean Foods filed for bankruptcy
Major dairy companies have also filed for bankruptcy in recent years as Borden Dairy filed bankruptcy in 2020 and 2022, and Dean Foods filed in 2019. Borden and Dean Foods both sold their businesses in bankruptcy in 2020.
The Borden’s label is still found on many products, and Dean Foods’ former products, such as Dairy Pure, Land O’Lakes, and Friendly’s, can also still be found in supermarkets.
Iconic retail food producer Atlantic Natural Foods LLC, which was established in 1890, markets its plant-based products on Amazon, including its Loma Linda brand Big Franks vegan hot dogs, plant-based canned Tuno fish and canned Chik’n, neat plant-based egg substitute, and caffeine-free coffee alternative Kaffree Roma.
Since 2019, the company’s plant-based food products could be found at various stores, such as Costco, Walmart, Target, and Aldi, according to company statements. The company has said its products are available in over 25,000 stores in the U.S. and 30 other countries.
Atlantic Natural Foods’ Kaffree Roma coffee substitute.
Image source: Atlantic Natural Foods
Atlantic Natural Foods files for bankruptcy
Atlantic Natural Foods LLCÂ filed for Chapter 11 protection on April 7 to reorganize its business five months after terminating a pending merger agreement with Above Foods. The company did not state a specific reason for filing for bankruptcy in its petition.
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Atlantic Natural Foods listed $10 million to $50 million in assets and $1 million to $10 million in liabilities in its petition filed in the U.S. Bankruptcy Court for the Eastern District of Louisiana.
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Nashville, N.C.-based Atlantic Natural Foods, which produces six plant-based retail food brands Loma Linda, Chik’n, Tuno, neat, Kaffree Roma, and Modern Menu, in a mutual agreement on Nov. 1, 2024, withdrew from a sale transaction that called for Above Foods to purchase Atlantic Natural Foods.
The companies blamed the global impact of the Covid-19 pandemic, supply chain disruptions, and rising food inflation as the key factors in their decision to cancel the deal.
The deal was estimated at about $30 million when it was first revealed in October 2021, according to Nosh.
The companies said in a mutual statement in November that the decision reflected a strategic realignment following a comprehensive evaluation of the evolving business landscape.
“Operating in the industry’s ever-changing landscape has not been without its challenges, but we remain steadfast in our commitment to resetting the standards for the years ahead,” Atlantic Natural Foods Chairman Doug Hines said in the statement. “We are drawing on tried-and-true food preparation and supply methods that have withstood the test of time to meet the needs of our global consumers.”
Atlantic Natural Foods and Above Foods will maintain collaborative ties. Atlantic Natural Foods will retain shares in Above Foods, which will in turn retain interest in Atlantic, the companies said in a statement.
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