THOMASVILLE, GA. — Flowers Foods, Inc. on Dec. 14 finalized its $205 million acquisition of Canyon Bakehouse L.L.C., a privately-held, gluten-free baking company based in Johnstown, Colo. Canyon Bakehouse will operate as an independent subsidiary of Flowers Foods.
“We welcome the Canyon Bakehouse team to Flowers and are excited to work with them to bring their innovative gluten-free bakery products to more consumers,” said Allen L. Shiver, president and chief executive officer of Flowers Foods. “This acquisition fits with Flowers’ strategy to grow in product adjacencies and gives us the opportunity to gain share in the growing gluten-free segment. The Canyon Bakehouse brand is the fastest-growing gluten-free bread loaf brand in the U.S., and we believe we can help accelerate that growth using our fresh distribution network and retail partnerships.”
Canyon Bakehouse offers 21 gluten-free bread, buns, bagels, English muffins and specialty items, primarily distributed frozen through natural, specialty, grocery and mass retailers nationwide. The Canyon Bakehouse brand is the top gluten-free loaf brand in the natural and specialty channel, the No. 2 brand in the overall gluten-free loaf category and the fastest-growing gluten-free bread loaf brand in the United States, according to sales data from SPINS and Information Resources, Inc.
The company was founded in 2009 by Josh and Christi Skow and Ed Miknevicius and has 206 employees at a 165,625-square-foot bakery with two production lines in Johnstown. Under terms of the transaction, Mr. Skow will continue to lead the business as president, and Ms. Skow, who has celiac disease, will serve as brand ambassador.
Canyon Bakehouse has generated a compound annual net sales growth rate of approximately 45% since 2014. The gluten-free packaged bread category has grown at a rate of 6.6% per year since 2015, outpacing the broader $14.5 billion U.S. retail baked foods market, according to SPINS and I.R.I. data. The company expects to generate approximately $70 million to $80 million in net sales in 2019.