The team at Sacramento, Calif.-based Mary Ann’s Baking Co. has diversified and expanded its customer base since the company went all-in on the wholesale side of its business. Thanks to its frozen inventory, the bakery can serve the entire country. John and George Demas, brothers and co-owners of Mary Ann’s Baking, exited the DSD business to focus solely on production. Today the company uses third-party logistics for distribution or arranges customer pickup. 

Mary Ann’s Baking left its retail origins behind a long time ago, but today its products can be found in retail in-store bakeries, convenience stores, club stores and foodservice/hospitality establishments. The team also does co-manufacturing and no-label products for other customers. 

“We’re constantly exploring new markets,” explained Andy Demas, chief operating officer and third generation. “Last year, we entered big box stores. Every year or two we ask ourselves, ‘Where else can we expand?’ We’ve seen significant growth in convenience stores, followed by similar success in retail service bakery. We’ve supplied products everywhere and co-packed for numerous businesses. Our consistent focus on diversifying our platform has been our strength. It’s created many opportunities while our product quality and service have driven our success.”

Kuhn estimated that at this point 29% of the business is branded, 24% is co-manufactured, 22% is no label and 25% is private label. 

While the channels and customers Mary Ann’s Baking serves have expanded, the product portfolio has been streamlined: Danish, muffins and cake donuts. Don’t be misled about Mary Ann’s Baking’s capabilities, however. With this level of focus, the company has built a robust seasonal program and continues to make investments to be as flexible as possible within those product categories. If a customer wants something custom, the Demas family wants to deliver. 

“We love to collaborate and create new partnerships. Our strength in innovation and unique twist on bakery foods has fueled our growth in club stores,” Andy Demas noted. “It’s opened doors that we continue to push.” 

He also noted the shifts in product strength over the past 10 years. The company’s classic strip Danish used to be the product that would get Mary Ann’s Baking in the door with customers. Right before the pandemic, muffins’ growth in the hospitality and lodging sector showed the most promise. Post-pandemic, it’s all about donuts. Club stores, previously, didn’t have much in the way of donut offerings, but with that category’s growth during the pandemic and after, the channel has brought in new business. 

This diversification of channels and focused product portfolio has allowed Mary Ann’s Baking to become nimble enough to offer custom and limited-

time products. The company’s leadership has been strategic in the moves it has made, which has resulted in 275% growth from 2014 to 2024. Kuhn projected 10% annual growth over the next five years. 

“We adopted a more focused strategic approach,” said Mark Deushane, senior vice president of sales and marketing. “We conducted numerous offsite meetings to discuss growth strategies, focusing first on building our pipeline and performing white space gap analysis. We expanded our business with existing customers, then developed a pipeline by approaching new segments and customers, which evolved from 

there.”

Carl Kuhn, vice president of business development, and son-in-law to John Demas, pointed out that the company is also reaping the rewards of the strategy meetings and new product innovation he and Deushane implemented when they joined the team more than 10 years ago.

“Those first few years we were both always on the road traveling to introduce ourselves and our capabilities,” he said. “We weren’t necessarily expecting immediate sales but wanted the vendor community to be educated on what we could offer. Through persistent and consistent efforts, opportunities quickly began to materialize.”

Achieving that growth and continuing it, however, required an investment or two.

This article is an excerpt from the April 2025 issue of Baking & Snack. To read the entire feature on Mary Ann's Baking Co., click here.