R.I.P. Rickland Orchards

by Keith Nunes
Share This:
Search for similar articles by keyword: [B and G Foods], [Snack]

Rickland Orchards
B&G Foods, Inc. has discontinued Rickland Orchards, a manufacturer of Greek yogurt-coated granola bars and bites.

PARSIPPANY, N.J. — B&G Foods, Inc. has discontinued Rickland Orchards, the business it acquired in October 2013 for $57.4 million. Originally launched in 2012, Rickland Orchards was a manufacturer of Greek yogurt-coated granola bars and bites.

Tom Crimmins, B&G Foods
Tom Crimmins, c.f.o. for B&G Foods

“ … We discontinued the Rickland Orchards brand as a result of continued insufficient demand,” said Tom Crimmins, chief financial officer for B&G Foods, during a conference call on July 29 to discuss the company’s second-quarter financial results. “Accordingly, we wrote off the related intangible assets and recorded non-cash impairment charges to amortizable trademarks and customer relationship intangibles of $4.5 million and $0.9 million. We also recorded a charge to cost of goods sold of approximately $0.8 million in connection with the write-off of raw material and finished goods inventory for the brand.”

Robert Cantwell, president and chief executive officer, added that the discontinuation of the Rickland business will allow B&G Foods to divert more resources to the execution of the company’s strategy around its New York Style snack brand, which has been challenged recently.

Under B&G Foods, Rickland Orchards was never able to gain traction in the marketplace. Under B&G Foods’ ownership, Rickland Orchards went from approximately $50 million in sales at the time it was acquired to a little over $15 million in the first half of 2014. Challenges facing the brand were numerous, including the fact it was not a well-known retail brand with a lot of shelf space. Rickland Orchards initially established its business in the warehouse/club channel. Additionally, competitors were able to copy the businesses’ line of products and undercut its price in warehouse and club stores.

In October 2014, a year after acquiring the brand, B&G Foods took an impairment charge of $22.2 million during the third quarter of fiscal 2014. The charge was primarily associated with the continued decline of the Rickland business. By the third quarter, Rickland Orchards was only generating $4.5 million in sales, and B&G Foods’ management said it did not expect sales for the brand to grow beyond that for the foreseeable future.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.

 

 


The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.