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Miami Herald
01-06-2025
- Business
- Miami Herald
Popular regional food brand files for Chapter 11 bankruptcy
Consumers face the risk of losing some of their favorite products whenever a food manufacturer files for bankruptcy. Commercial bakeries produce some of the most beloved products, and Hostess Brands is one of the most popular bakery brands, offering Wonder Bread, Twinkies, Ho Hos, Ding Dongs, and their fruit pies for decades. Don't miss the move: Subscribe to TheStreet's free daily newsletter Hostess broke a lot of hearts after it filed for bankruptcy in January 2012, shut down operations, and liquidated its products. Luckily for its fans, J.M. Smucker in September 2012 purchased the company for about $5.6 billion and restarted the business. Related: Another popular pizza dining chain files Chapter 11 bankruptcy Another food manufacturer, Hearthside Food Solutions, which made various snack and food products for distributors such as Mondelez Global, Kraft Heinz Foods, and Pepsico, on Nov. 22, 2024, filed for Chapter 11 bankruptcy protection with a restructuring support agreement to hand 100% ownership of the company to its first-lien lenders. Hearthside, known as H-Food Holdings, restructured its debt, reorganized, and emerged from bankruptcy on March 31, 2025, as a new company, Maker's Pride LLC. Through the restructuring process, H-Food eliminated about $2 billion in funded debt. The company emerged with about $600 million in liquidity, including $200 million in new money through an equity rights offering and another $190 million of additional capital from a new asset-backed loan facility, according to a Maker's Pride statement at the time. "The swift completion of our financial restructuring process marks a pivotal moment for our company and is a testament to the dedication of our valued team members and committed support of our customers and financial partners," Darlene Nicosia, chief executive officer of Maker's Pride, said in a statement. The Downers Grove, Ill., company manufactures and produces convenience foods, including baked, refrigerated, and frozen foods, sweet and salty snacks, and nutrition bars, as a full-service provider of food packaging services for many of the world's premier brands through a network of 27 facilities and is the largest private bakery in the industry. And now, another popular commercial bakery has declared bankruptcy, as the parent company of Phoenix-based artisan bakery Noble Bread has filed a Chapter 11 petition to reorganize its business. The bakery and restaurant owner's parent Noble Goodness LLC and three affiliates filed their Subchapter V petition in the U.S. Bankruptcy Court for the District of Arizona on May 29, listing $1 million to $10 million in assets and $1 million to $10 million in liabilities. Related: Major logistics and trucking company files Chapter 11 bankruptcy The debtor did not indicate a reason for filing for bankruptcy in its petition. Nobel Bread operates a bakery facility that produces 30 different types of bread, as well as a modern wood-fired deli restaurant, Noble Eats, located in the Biltmore District in Phoenix. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The bakery says that it uses old-world techniques, "only using organic GMO-free flours, water, sea salt, and organic levain starter, which is a culture of wild yeasts used slowly to leaven the bread," according to Noble Bread's website. The company claims that it takes 36 hours to make one loaf of bread. "Utilizing whole grains, and ancient grains makes the bread far more complex and biologically active than just plain white bread," Noble Breads said on its website. The artisan bakery's products are available at Noble Eats, 11 AJ's Fine Foods gourmet markets throughout Arizona, and at a dozen farmers' markets throughout the Grand Canyon State. Related: Another major internet company files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
01-05-2025
- Business
- Yahoo
Why are people snacking less? Sales of chips, munchies are dropping
Americans are grabbing for snacks less – and it appears to be for a variety of reasons, including worries about money, the desire to eat healthier and reduce artificial dyes as well as the increased use of prescription drugs that suppress the urge to munch in between meals. Executives for several large brand-name snack companies, including the makers of Doritos and DingDongs, have said their sales have been affected by shoppers buying fewer snack products. "We're seeing several forces converge that are reshaping consumer snacking behavior," said David Ortega, a food economist and professor at Michigan State University. "Price fatigue is setting in after several years of sharp increases, and there's growing uncertainty about future food costs, especially as new tariffs threaten to drive prices even higher," Ortega told USA TODAY. That combination is prompting shoppers to cut back, trade down to lower-cost products or become more aggressive in seeking out deals, he said. But there's also a broader shift toward healthier eating habits, which together with economic trends, is changing how and what people snack on, Ortega said. "Consumers aren't just snacking less ‒ they're becoming more selective, favoring snacks with stronger nutritional profiles," he said. "The adoption of GLP-1 medications like Ozempic and Wegovy is accelerating these changes, with appetite suppression leading to lower overall grocery spending and a sharper decline in purchases of highly processed and unhealthy snacks." Several food-company executives have referenced the slowdown in snacking in their recent earnings calls with analysts. General Mills CEO Jeff Harmening said in late March that sales were down for salty snacks, grain snacks and fruit snacks. "Our view is that a lot of that has to do with consumer confidence," he said. While GLP-1 use for drugs like Ozempic is increasing, Harmening said, the numbers didn't change much from quarter to quarter. But Harmening said General Mills was also seeing the same sales decline in its dog food brand. "To my knowledge, there is not GLP-1s for dog treats," he said during a call with analysts. "Our belief," he said, "is that consumers have become much more value conscious." Mark Smucker, CEO, president and board chairman of J.M. Smucker, said in February that the company's sales of Hostess snacks were down, in part, due to "consumers continuing to be selective in their spending, largely driven by inflationary pressures and diminished discretionary income." PepsiCo, the owner of snack brands such as Frito-Lay and Doritos, became the latest company to say consumers were buying fewer snacks. The company, in prepared remarks with its latest earnings report on April 25 , said its North America savory snack performance – primarily Frito-Lay – remained "subdued." "Consumers have remained value-conscious across brands and channels as the cumulative impacts of inflationary pressures have strained budgets and altered food shopping patterns," the company said in those remarks. Consumers are not only snacking less, they're snacking differently, said Rob Dongoski, global lead for food and agribusiness at Kearney, a strategy and management consulting firm. Many of the companies that are saying their sales are down are in the "ultra-processed category" of food "and that's where consumers are trending away from," Dongoski told USA TODAY. "Does that mean they're not picking up a bit of a small serve yogurt or some beef jerky or a handful of pistachios? It's a different kind of snacking," he said. There are three forces pressuring the food category now, said Dongoski: consumers wanting to eat healthier; the Make American Healthy Again Commission under President Donald Trump and Health Secretary Robert F. Kennedy Jr., which is initiating efforts to phase out petroleum-based synthetic dyes from food; and GLP-1 drugs which suppress appetite. "Snacking gets right in the crosshairs," Dongoski said. Study: Consumers worried about tariffs are pulling back on spending Dongoski said he believes consumers are mostly pulling away from snack foods to be healthier and it is not as economy driven, at least in the short term. He believes the U.S. is "really at the precipice of some pretty significant change in the food system," which has been building for some time but is starting to show up in slower sales of snacks by major companies. There are also generational influences at play, he said. Gen Xers are getting closer to retirement and are thinking about their health. Gen Zers and Millennials also have a very different attitude about food than their older peers at the same age and are looking for healthier options, Dongoski said. In the latest quarterly Consumer Stress Index by the Kearney Institute, which provides insights into how consumers are feeling, shoppers said they were wary of spending, due to the rising costs of goods overall and tariff worries. Consumers were moving from optimizing to sacrificing and taking on a "wait-and-see" stance about spending, said Katie Thomas who leads the think tank. As consumers are watching their finances and stressed about their budgets, the snack category is the easiest to drop, said Chris Costagli, vice president and food insights lead for NielsenIQ. Costagli has been running a study of about 1,000 consumers monthly since January to gauge their sentiments on a variety of food-buying issues. In a report to be released soon, Costagli said 43% of those surveyed in April said they were cutting back on buying snack foods and 38% were looking for deals more often. Thirty-seven percent of people also said their impulse purchases at the grocery store were down and 17% said they were buying fewer premium or indulgent snacks, such as a candy bar, he said. Those numbers continue to increase each month, Costagli told USA TODAY. Robin Wenzel, group head of the Wells Fargo Agri-Food Institute, agreed that more shoppers, concerned about both their health and their budgets, are dropping snacks off the shopping list. "While inflation and rising costs have made U.S. consumers more intentional with their food purchases, prioritizing essentials over discretionary items, preferences also seem to be shifting," she told USA TODAY, also pointing to GLP-1s and recent action to remove certain additives and dyes from the food system. " U.S. consumers are rethinking eating habits and seeking out nutrient-dense food options, including snacks, causing this rebalance." Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at blinfisher@ or follow her on X, Facebook, or Instagram @blinfisher and @ on Bluesky. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here. This article originally appeared on USA TODAY: Why are consumers snacking less? We explain. Sign in to access your portfolio
USA Today
30-04-2025
- Business
- USA Today
The Daily Money: A rush on Social Security claims
The Daily Money: A rush on Social Security claims Good morning! It's Daniel de Visé with your Daily Money, Social Security edition. At a recent internal meeting, a Social Security administrator projected some numbers on a screen to illustrate a remarkable trend: New benefit claims were up by more than 15% in March, compared with the same month a year ago. Leland Dudek, the acting Social Security commissioner, chimed in to ask the presenter if the chart showed what he thought it did: that Americans are rushing to claim Social Security now, because they're worried about the stability of the retirement trust fund in the future. Social Security card goes digital A new and digital alternative to the traditional Social Security card will be available by early summer, the Social Security Administration announced. The agency will introduce a feature that allows all Social Security account holders the ability to access and view their Social Security number online. The move comes weeks after Social Security walked back plans to reduce over-the-phone services and provided clarity about which account holders had to verify their identity in person. Americans are snacking less Americans are grabbing for snacks less, and it appears to be for a variety of reasons, including worries about money, the desire to eat healthier and reduce artificial dyes as well as the increased use of prescription drugs that suppress the urge to munch between meals. Executives for several large brand-name snack companies, including the makers of Doritos and DingDongs, have said their sales have been affected by shoppers buying fewer snack products. 📰 More stories you shouldn't miss 📰 About The Daily Money Each weekday, The Daily Money delivers the best consumer and financial news from USA TODAY, breaking down complex events, providing the TLDR version, and explaining how everything from Fed rate changes to bankruptcies impacts you. Daniel de Visé covers personal finance for USA Today.
USA Today
30-04-2025
- Business
- USA Today
Why are people snacking less? Sales of chips, munchies are dropping
Americans are grabbing for snacks less – and it appears to be for a variety of reasons, including worries about money, the desire to eat healthier and reduce artificial dyes as well as the increased use of prescription drugs that suppress the urge to munch in between meals. Executives for several large brand-name snack companies, including the makers of Doritos and DingDongs, have said their sales have been affected by shoppers buying fewer snack products. "We're seeing several forces converge that are reshaping consumer snacking behavior," said David Ortega, a food economist and professor at Michigan State University. "Price fatigue is setting in after several years of sharp increases, and there's growing uncertainty about future food costs, especially as new tariffs threaten to drive prices even higher," Ortega told USA TODAY. That combination is prompting shoppers to cut back, trade down to lower-cost products or become more aggressive in seeking out deals, he said. People are looking for healthier foods But there's also a broader shift toward healthier eating habits, which together with economic trends, is changing how and what people snack on, said Ortega. Need a break? Play the USA TODAY Daily Crossword Puzzle. "Consumers aren't just snacking less — they're becoming more selective, favoring snacks with stronger nutritional profiles," he said. "The adoption of GLP-1 medications like Ozempic and Wegovy is accelerating these changes, with appetite suppression leading to lower overall grocery spending and a sharper decline in purchases of highly processed and unhealthy snacks." Makers of popular snack brands say sales are down Several food-company executives have referenced the slowdown in snacking in their recent earnings calls with analysts. General Mills CEO Jeff Harmening said in late March that sales were down for salty snacks, grain snacks and fruit snacks. "Our view is that a lot of that has to do with consumer confidence," he said. While GLP-1 use for drugs like Ozempic are increasing, Harmening said, the numbers didn't change much from quarter to quarter. But Harmening said General Mills was also seeing the same sales decline in its dog-food brand. "To my knowledge, there is not GLP-1s for dog treats," he said during a call with analysts. "Our belief," he said, "is that consumers have become much more value conscious." Mark Smucker, CEO, president and board chairman of J.M. Smucker, said in February that the company's sales of Hostess snacks were down, in part due to "consumers continuing to be selective in their spending, largely driven by inflationary pressures and diminished discretionary income." PepsiCo, the owner of snack brands such as Frito-Lay and Doritos, became the latest company to say consumers were buying fewer snacks. The company, in prepared remarks with its latest earnings report on April 25 , said its North America savory snack performance – primarily Frito-Lay – remained "subdued." "Consumers have remained value-conscious across brands and channels as the cumulative impacts of inflationary pressures have strained budgets and altered food shopping patterns," the company said in those remarks. Consumers are snacking differently Consumers are not only snacking less, they're snacking differently, said Rob Dongoski, global lead for food and agribusiness at Kearney, a strategy and management consulting firm. Many of the companies that are saying their sales are down are in the "ultra-processed category" of food "and that's where consumers are trending away from," Dongoski told USA TODAY. "Does that mean they're not picking up a bit of a small serve yogurt or some beef jerky or a hand full of pistachios? It's a different kind of snacking," he said. There are three forces pressuring the food category now, said Dongoski: consumers wanting to eat healthier; the Make American Healthy Again Commission under President Donald Trump and Health Secretary Robert F. Kennedy, Jr. which is initiating efforts to phase out petroleum-based synthetic dyes from food; and GLP-1 drugs which suppress appetite. "Snacking gets right in the crosshairs," said Dongoski. Dongoski said he believes consumers are mostly pulling away from snack foods to be healthier and it is not as economy driven, at least in the short term. He believes the U.S. is "really at the precipice of some pretty significant change in the food system," which has been building for some time but is starting to show up in slower sales of snacks by major companies. There are also generational influences at play, he said. Gen Xers are getting closer to retirement and are thinking about their health. Gen Zers and Millennials also have a very different attitude about food than their older peers at the same age and are looking for healthier options, Dongoski said. Tariffs are weighing on treats In the latest quarterly Consumer Stress Index by the Kearney Institute, which provides insights into how consumers are feeling, shoppers said they were wary of spending, due to the rising costs of goods overall and tariff worries. Consumers were moving from optimizing to sacrificing and taking on a "wait-and-see" stance about spending, said Katie Thomas who leads the think tank. Snacks are easiest to take off a shopping list As consumers are watching their finances and stressed about their budgets, the snack category is the easiest to drop, said Chris Costagli, vice president and food insights lead for NielsenIQ (NIQ). Costagli has been running a study of about 1,000 consumers monthly since January to gauge their sentiments on a variety of food-buying issues. In a report to be released soon, Costagli said 43% of those surveyed in April said they were cutting back on buying snack foods and 38% were looking for deals more often. Thirty-seven percent of people also said their impulse purchases at the grocery store were down and 17% said they were buying fewer premium or indulgent snacks, such as a candy bar, he said. Those numbers continue to increase each month Costagli told USA TODAY. Robin Wenzel, group head of the Wells Fargo Agri-Food Institute, agreed that more shoppers, concerned about both their health and their budgets, are dropping snacks off the shopping list. "While inflation and rising costs have made U.S. consumers more intentional with their food purchases, prioritizing essentials over discretionary items, preferences also seem to be shifting," she told USA TODAY, also pointing to GLP-1s and recent action to remove certain additives and dyes from the food system. " U.S. consumers are rethinking eating habits and seeking out nutrient dense food options, including snacks, causing this rebalance." Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at blinfisher@ or follow her on X, Facebook or Instagram @blinfisher and @ on Bluesky. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here.
