The parent company for Canadian grocery and retail giant Loblaw is taking a major step out of the baked goods business.
George Weston Ltd. announced Oct. 26 it would sell its Weston Foods fresh and frozen bakery businesses to an arm of Toronto-based bakery firm FGF Brands for $1.2 billion.
The company expects to close the deal before the end of its first quarter of 2022, pending regulatory approvals.
Fresh and frozen bakery goods by themselves made up about 75 per cent of Weston Foods’ 2020 net sales, the parent firm said, noting it’s still “actively engaged” in selling off that company’s remaining “ambient business,” which includes cookies, cones, crackers and wafers.
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Just weeks after announcing a total of $25 million in upgrades for bakery plants in Calgary, New Hampshire and Wisconsin, George Weston said in March it planned to sell the bakery segment and focus instead on its retail and real estate businesses, which operate under the Loblaw and Choice Properties banners respectively.
Weston Foods produces private-label packaged breads, rolls, cakes, donuts, pies, tortillas and cones at plants in eight provinces and 11 states, along with brands such as Country Harvest, Wonder, ACE Bakery, D’Italiano, Casa Mendosa, Dave’s Killer Bread, La Baguetterie, Rubschlager, All But Gluten, and Gadoua.
George Weston had previously sold off its U.S. bread and baked goods business — which included brands such as Arnold, Brownberry and Stroehmann — to Mexican baking giant Grupo Bimbo in 2009, and its Neilson Dairy business to Saputo in 2008.
“The Weston Foods business has been the foundation for the Weston Group in Canada since its establishment in 1882 and the decision to sell it was a difficult one,” CEO Galen Weston said in a release.
FGF, he said, is “another long-standing family business with a strong presence in bakery and a significant footprint in Canada.”
FGF, which has facilities in both Canada and the U.S., bills itself as “a tech company that bakes,” making baked goods for the retail and foodservice sectors.
The company’s own brands include Stonefire flatbreads, Santosh vegetarian and vegan naan breads and Simple Joys cakes and muffins.
FGF co-founder Tejus Ajmera, in Weston’s release, said the company plans to invest in “people, facilities and innovation across our entire operations, in collaboration with Weston Foods president Luc Mongeau and his team.” — Glacier FarmMedia Network
