Rich's Acquires f'real foods, Goglanian Bakeries
Establishes Twin Star Bakery joint venture
BUFFALO, N.Y. -- Rich Products Corp. has announced three important additions to its portfolio, acquiring two food companies--Goglanian Bakeries Inc. and f'real foods LLC--and entering into a joint venture called Twin Star Bakery, with business partner The Stolbun Group.
The addition of f'real foods, based in Orinda, Calif, provides Rich's with a new product line and greater penetration into the high-growth convenience store segment. Founded in 1995, f'real sells authentic milkshakes, smoothies and frozen coffee beverages, along with patented blending equipment, to more than 9,000 c-store and foodservice locations across the United States and Canada.
Based on f'real's business model and current growth trajectory, the company will be managed as a separate subsidiary business.
"The acquisition of f'real provides us with the opportunity to enter into a completely new product category, and also establish additional inroads into the high growth convenience-store segment within Rich's Foodservice Division. We will be working closely with the f'real leadership team to help them leverage our scale, best practices and certain capabilities. We also will look to create opportunities for f'real to take advantage of our sales channels and customer contacts on a global basis," said Richard Ferranti, executive vice president and COO.
The acquisition of family-owned Goglanian Bakeries will significantly expand Rich's current pizza business and provide the company with an exceptional line of par-baked pizza crusts, flatbreads and pitas, to complement its existing strength in frozen pizza dough within the foodservice channel. Goglanian also possesses a significant manufacturing network with operations in Santa Ana, Calif., Fountain Inn, S.C. and Rochester, N.Y., along with a new facility located outside of Chicago, which is expected to open in the first quarter of 2013.
"This acquisition strengthens our competitive position within the pizza category, one of our highest growth priorities for our U.S.-Canada Region. We are confident that the Goglanian business has the capacity to grow exponentially as it transitions into our organization to leverage our scale, management depth and customer access in the U..S, Canada and other regions across the world," Ferranti said.
Twin Star Bakery is a new joint venture partnership between Rich's and The Stolbun Group, led by Sam Stolbun, who previously owned Camelot Desserts. Twin Star recently opened a desserts manufacturing operation near Houston that produces fully-finished cakes and baked and iced cookies. The Stolbun Group will manage Twin Star's research and development and production, while Rich's will oversee product marketing and sales, primarily through its In-Store Bakery Division.
"This joint venture is a wonderful example of collaboration between Rich's expansive customer and distribution access and The Stolbun Group's unique manufacturing and product development expertise. The entrepreneurial nature of this business will enable greater manufacturing and product development flexibility," said Ferranti.
"I have always admired the people and culture at Rich's, and we're very happy that they have chosen to partner with us to expand their portfolio of great products. We look forward to working with Rich's to develop cake and cookie solutions in support of our customers," said Sam Stolbun, president of Twin Star.
"The acquisitions of Goglanian Bakeries and f'real foods, and establishment of our Twin Star joint venture, are consistent with our ongoing commitment to shape and reshape our diverse portfolio to keep Rich's focused on a path of long term growth," said Bill Gisel, Rich's president and CEO. "As we enter our 68th year in business, these acquisitions provide terrific growth and add to the momentum we have as a family-owned business that stretches across the world. We're thrilled to welcome an exceptional range of new products to our portfolio and a wide array of talented new associates to our organization."
A founder of the nondairy segment of the frozen-food industry, Rich Products is a leading supplier and solutions provider to the foodservice, in-store bakery and retail marketplaces. Rich's is a leader in nondairy toppings, icings and other emulsions. Other key product categories include cakes and desserts; pizza; bakery products; breads and rolls; shrimp and seafood; appetizers and snacks; Bar-B-Q; meatballs and pasta; gluten-free and all-natural items; cooking creams; and soaks and syrups.