Snacks & Candy

Spunky Combo

Otis Spunkmeyer acquires Chippery

SAN LEANDRO, Calif. -- Otis Spunkmeyer Inc. has acquired Van-Merkel Inc., a manufacturer and distributor of frozen cookie products doing business as "Chippery."

Founded in 1984 as a retail cookie chain, Chippery now manufacturers frozen cookie dough and thaw-and-serve cookies in a single 97,000-sq.-ft. facility in Austin, Texas. Chippery serves national and regional restaurant chains, hotel chains, stadium and sports arenas, schools and other large scale institutions. Chippery is one of the largest suppliers of frozen cookie dough to fundraising groups [image-nocss] including schools, civic organizations, clubs and churches.

John Schiavo, president and CEO of Otis Spunkmeyer, said, "Driven by the commitment of its founding partners and highly talented employees, Chippery has been a fast-growing and respected competitor of Otis Spunkmeyer for several years. Together, we will market high-quality branded and private-label products to our core foodservice and retail markets, and operate more efficiently through the integration of certain processes."

Combined, the companies generate revenues of approximately $425 million.

Schiavo added, ""This acquisition is consistent with Otis Spunkmeyer's strategy of being the unquestioned leader of the frozen sweet baked goods industry. It is an excellent opportunity to leverage our combined expertise to significantly expand our existing market presence."

Otis Spunkmeyer is a major North American manufacturer, marketer and distributor of frozen cookie dough, prebaked muffins and other handheld sweet baked goods to foodservice accounts and food retailers. Through broadline distribution and its own nationwide direct-store-delivery distribution system, Otis Spunkmeyer annually distributes more than 150 million pounds of frozen cookie dough and muffins to more than 120,000 customers across North America.

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