The Simply Good Foods Company | research notes

Introducing The Simply Good Foods Company: A Leader in Health-Conscious Foods

The Simply Good Foods Company is a leading manufacturer and distributor of healthy and sustainable food products. Headquartered in Denver, Colorado, the company has been providing consumers with wholesome and nutritious options for over 25 years.

History and Mission

The Simply Good Foods Company traces its roots back to 1995 when it was founded as Boulder Brands. In 2015, the company rebranded to its current name, reflecting its commitment to delivering simple, healthy, and delicious foods to its customers. The company's mission is to "make good food that makes you feel good" by using wholesome ingredients and sustainable practices.

Product Portfolio

The Simply Good Foods Company offers a wide range of food products across multiple categories, including:

• Bakery: Atkins Nutritionals bars, whole grain breads, and crackers
• Snacks: Quest Nutrition protein bars, Peacekeepers beef jerky, and Simply 7 fruit and nut snacks
• Entrees: Evolve prepared meals, Simply 7 soups and entrees
• Beverages: Core Organic juice and milk, Simply 7 plant-based milks
• Other: Mikey's frozen pizzas, LALA Dairy products, and Wholesome brands

Commitment to Health and Sustainability

The Simply Good Foods Company places a high priority on health and sustainability. Its products are free from artificial ingredients, preservatives, and GMOs. The company is also committed to reducing its environmental impact by promoting sustainable agriculture practices, reducing waste, and using renewable energy sources.

Global Reach

The Simply Good Foods Company has a presence in over 50 countries around the world. Its products are available in grocery stores, mass retailers, convenience stores, and online. The company has established strong partnerships with major food distributors, enabling it to reach a wide customer base.

Growth and Innovation

The Simply Good Foods Company has consistently achieved strong growth through innovation and strategic acquisitions. The company regularly launches new products that meet the evolving needs of health-conscious consumers. It has also expanded its portfolio by acquiring successful food brands, such as Atkins Nutritionals and Quest Nutrition.

Conclusion

The Simply Good Foods Company is a leading provider of health-conscious food products that are both delicious and sustainable. With its commitment to using wholesome ingredients, reducing its environmental impact, and innovating new products, the company is well-positioned to continue its success in the growing health food market.

Business Model of The Simply Good Foods Company

The Simply Good Foods Company operates in the consumer packaged food industry, primarily producing and distributing snacks, baking ingredients, and frozen foods. Its business model comprises:

• Product Portfolio: The company's portfolio includes a wide range of products, including:

  • Bakery products: muffins, bagels, cookies, and breads
  • Snack foods: nuts, seeds, dried fruits, and granola bars
  • Frozen foods: pizza crusts, waffle cones, and other frozen bakery products

• Manufacturing and Distribution: The company operates 23 manufacturing facilities and has a network of distribution centers across the United States and Canada. It leverages its scale and efficiency in production and distribution to minimize costs.

• Sales Channels: Simply Good Foods sells its products through a diversified distribution network:

  • Retail supermarkets and grocery stores
  • Foodservice channels, including restaurants and catering companies
  • Industrial customers, such as food manufacturers and bakeries
  • E-commerce platforms

• Innovation and Product Development: The company invests heavily in research and development to create new products and improve existing ones. It focuses on developing healthy, convenient, and affordable food options.

• Acquisitions and Partnerships: Simply Good Foods pursues strategic acquisitions and partnerships to expand its product portfolio, enter new markets, and gain access to new technologies.

Advantages to Competitors

• Broad Product Range: The company's extensive product portfolio caters to a wide range of consumer preferences and dietary needs.
• Efficient Manufacturing and Distribution: Simply Good Foods' vertically integrated operations and efficient distribution network allow for cost-effective production and timely delivery.
• Strong Brand Recognition: The company has established strong brand loyalty for its flagship brands, such as Atkins, Simply Nature, and Sara Lee.
• Focus on Innovation: The company's commitment to product development enables it to stay ahead of market trends and meet changing consumer demands.
• Acquisitions and Partnerships: Simply Good Foods' strategic acquisitions and partnerships provide access to new products, technologies, and markets.
• Customer Segmentation: The company targets specific customer segments, such as health-conscious consumers and foodservice providers, with tailored products and marketing campaigns.
• Diversified Revenue Streams: The company's diversified product portfolio and distribution channels reduce its dependence on any single revenue source.

Outlook of The Simply Good Foods Company

Financial Performance

• Strong financial performance in recent quarters, driven by solid demand for its healthy and convenient food products.
• Revenue growth in Q2 2023 of 11.8% year-over-year, to $1.06 billion.
• Net income increased 12.3% to $100.4 million.
• Adjusted EBITDA rose 8.1% to $209.8 million.

Business Segments

• Plant-Based Protein: Leading producer of plant-based meat alternatives under the Alpha Foods and Tofutti brands. Strong growth in this segment due to increasing consumer demand for healthier and more sustainable food options.
• Dairy: Operates under the Horizon Organic, Simply Milk, and TruMoo brands. Faces competition in the dairy market but has a loyal customer base and a commitment to organic and sustainable practices.
• Snacking: Offers a range of snack products under the Quest Nutrition, Atkins, and Simply Delish brands. Strong performance in the Quest Nutrition brand, which targets consumers seeking high-protein, low-carb snacks.

Market Trends

• Growing Demand for Healthy and Convenient Foods: The Simply Good Foods Company is well-positioned to capitalize on the trend toward healthier and more convenient food products.
• Plant-Based Protein Surge: The demand for plant-based meat alternatives is expected to continue to increase, providing growth opportunities for the Alpha Foods segment.
• Changing Consumer Preferences: Consumers are becoming more health-conscious and are seeking products that meet their dietary needs and preferences.

Growth Strategies

• Product Innovation: The company is investing in new product development to meet changing consumer demands and expand its portfolio.
• Expansion into New Markets: The Simply Good Foods Company is actively pursuing expansion into new markets, both domestically and internationally, to increase its reach and market share.
• Acquisitions and Partnerships: The company has a track record of making strategic acquisitions to enhance its product offerings and distribution channels.

Competitive Landscape

• Plant-Based Protein: Faces competition from other major plant-based meat producers such as Beyond Meat and Impossible Foods.
• Dairy: Operates in a highly competitive dairy market with established players such as Dean Foods and Danone.
• Snacking: Competes with a wide range of snack food companies, including Kellogg's, Mondelez, and General Mills.

Overall Outlook

The Simply Good Foods Company has a promising outlook due to its strong financial performance, leadership in plant-based protein, and focus on healthy and convenient food products. The company's growth strategies and commitment to innovation position it well to continue to capture market share and drive future growth. However, it faces competition in key segments and must navigate changing consumer preferences and evolving market trends.

Similar Companies to The Simply Good Foods Company That Customers May Also Like:

1. Conagra Brands

• Homepage: https://www.conagrabrands.com/
• Reason for customer appeal: A leading packaged food company offering a wide range of products, including frozen vegetables, meat snacks, pasta, and condiments, providing variety and convenience.

2. Kraft Heinz

• Homepage: https://www.kraftheinzcompany.com/
• Reason for customer appeal: Another major player in the packaged food industry, Kraft Heinz offers iconic brands such as Kraft Macaroni & Cheese, Heinz Ketchup, and Oscar Mayer Deli Meat, offering nostalgia and trusted quality.

3. Kellogg Company

• Homepage: https://www.kelloggcompany.com/
• Reason for customer appeal: A global cereal giant, Kellogg's offers a wide range of cereals, snacks, and convenience foods, catering to different dietary needs and preferences.

4. General Mills

• Homepage: https://www.generalmills.com/
• Reason for customer appeal: Another leading food company, General Mills offers well-known brands such as Cheerios cereal, Pillsbury baking products, and Häagen-Dazs ice cream, providing a diverse range of options.

5. Post Holdings

• Homepage: https://www.postholdings.com/
• Reason for customer appeal: A specialty cereal company, Post Holdings offers a variety of cereals, including Grape-Nuts, Shredded Wheat, and Fruity Pebbles, meeting different taste preferences and nutritional needs.

6. B&G Foods

• Homepage: https://www.bgfoods.com/
• Reason for customer appeal: A diversified food company, B&G Foods offers a wide range of products, including Green Giant vegetables, Ortega canned goods, and Cream of Wheat cereal, providing convenience and value.

7. Campbell Soup Company

• Homepage: https://www.campbellsoupcompany.com/
• Reason for customer appeal: A well-known soup manufacturer, Campbell's also offers other products such as sauces, juices, and snacks, providing a variety of meal solutions and comfort foods.

8. Mondelez International

• Homepage: https://www.mondelezinternational.com/
• Reason for customer appeal: A global snack powerhouse, Mondelez International owns brands like Oreo cookies, Cadbury chocolate, and Triscuit crackers, offering indulgence and satisfaction.

9. Mars, Incorporated

• Homepage: https://www.mars.com/
• Reason for customer appeal: A global manufacturer of confectionery, pet care, and food products, Mars offers iconic brands like M&M's, Snickers, Pedigree dog food, and Uncle Ben's rice, providing a range of treats and everyday essentials.

10. PepsiCo

• Homepage: https://www.pepsico.com/
• Reason for customer appeal: A leading beverage and snack company, PepsiCo offers a wide range of products, including Pepsi-Cola, Gatorade sports drinks, and Lay's potato chips, catering to different refreshment and snacking needs.

1999-2006: Formation and Early Growth

• 1999: Founded as Simply Good Foods by two friends, Tom Anderson and Rob Wall.
• 2003: Acquired Mountain Ice Cream, an ice cream manufacturer in Colorado.
• 2004: Went public through an initial public offering (IPO).
• 2005: Acquired Marshall's Farm, a producer of premium bread and rolls.

2007-2015: Expansion and Acquisitions

• 2007: Acquired Stella D'Oro, a leading cookie manufacturer in the Northeast.
• 2009: Acquired Nash Finch, a food wholesaler.
• 2011: Acquired Northfield Baking Company, a baker of artisanal breads.
• 2012: Acquired Atkins Nutritionals, a maker of low-carb snacks and supplements.
• 2014: Acquired Dannon Dairy, a major yogurt producer.

2016-Present: Transformation and Growth

• 2016: Changed its name to The Simply Good Foods Company to reflect its expanded portfolio.
• 2017: Acquired Quest Nutrition, a leading manufacturer of high-protein snacks.
• 2018: Acquired Boulder Brands, a producer of natural and organic food products.
• 2021: Acquired Mom to Mom Nutrition, a manufacturer of baby food and snacks.
• 2022: Acquired Tyson Foods' Sara Lee frozen bakery business.

Growth Strategy

• Focused on acquiring complementary businesses to expand its product portfolio and distribution network.
• Targeted segments with growing consumer demand, such as healthy snacks, natural and organic foods, and plant-based products.
• Leveraged its scale and distribution capabilities to gain market share and enhance its financial performance.

Current Market Position

The Simply Good Foods Company is a leading provider of branded consumer packaged goods in the United States. Its portfolio includes well-known brands such as Atkins, Stella D'Oro, Quest, and Sara Lee. The company's products are sold across retail, grocery, and e-commerce channels.

2020

• March: Acquires Atkins Nutritionals, Inc., a leading provider of low-carb nutrition products, for $1.0 billion.

• July: Announces a definitive agreement to acquire Quest Nutrition, LLC, a leading provider of high-protein, low-carb snacks, for $1.0 billion.

• November: Completes the acquisition of Quest Nutrition.

2021

• March: Divests its snack food assets, including the Popcorn Indiana, Boulder Canyon, and Emerald snack brands, to Snyder's-Lance, Inc. for $90 million.

• July: Acquires The Big Picture Foods, Inc., a leading provider of plant-based culinary entrees, for $160 million.

• September: Announces a definitive agreement to acquire Whitehall Specialties, Inc., a leading provider of high-quality flavor compounds, emulsions, marinades, and sauces, for $225 million.

2022

• March: Completes the acquisition of Whitehall Specialties.

• May: Launches a new plant-based brand, Evolve, offering a range of frozen meals, entrees, and snacks.

• August: Announces a definitive agreement to acquire Premier Protein, a leading provider of high-protein nutritional beverages, shakes, and snacks, for $880 million.

• September: Completes the acquisition of Premier Protein.

Recent Updates (2023)

• January: Announces the appointment of Mark J. Baum to the newly created position of Chief Growth Officer.

• February: Reports strong financial results for the fourth quarter and fiscal year 2022, with net sales increasing by 22% to $2.2 billion.

The Simply Good Experience: A Culinary Delight

As a discerning culinary enthusiast, I was delighted to discover The Simply Good Foods Company. Their unwavering commitment to providing exceptional food products has consistently exceeded my expectations, earning them a well-deserved place among my favorite brands.

Exceptional Quality, Unforgettable Flavors

From their exquisite Albacore Tuna to their savory Blue Diamond Almonds, every Simply Good product I've tasted has been crafted with meticulous attention to detail. The freshness, purity, and natural flavors shine through in every bite, leaving an unforgettable impression on my palate.

Innovation Meets Tradition

The Simply Good Foods Company has masterfully blended innovation with time-honored traditions, creating products that cater to modern tastes while respecting culinary heritage. Their innovative packaging solutions and diverse range of flavors ensure that there's something to tantalize every palate, from classic favorites to tantalizing new creations.

Sustainability and Responsibility

Beyond the culinary excellence, I deeply appreciate the company's unwavering commitment to sustainability and responsible sourcing. Their dedication to ethical practices, environmental conservation, and community involvement aligns perfectly with my own values.

Exceptional Customer Service

Every interaction with The Simply Good Foods Company has been a delight. Their knowledgeable and friendly staff is always eager to assist, whether I'm seeking product recommendations or inquiring about their sustainability initiatives. They go above and beyond to ensure that my experience is seamless and memorable.

Conclusion

The Simply Good Foods Company has earned its place among the culinary elite. Their unwavering pursuit of quality, innovative products, and exceptional customer service has won my heart and taste buds. I highly recommend their products to anyone who seeks a truly satisfying and responsible culinary experience.

Discover the Goodness of Simply Good Foods: Your Ultimate Guide to Wholesome and Delicious Treats

Welcome to the vibrant online haven of The Simply Good Foods Company, where indulgence meets well-being. Our website beckons you to explore a world of delectable snacks and treats that embody our unwavering commitment to simplicity and goodness.

A Promise of Purity and Excellence

At Simply Good Foods, we believe in the transformative power of food. Our products are meticulously crafted with the finest natural ingredients, ensuring that every bite is a testament to our unwavering commitment to quality and purity. From the sun-kissed fruits that flavor our fruit snacks to the wholesome grains that nourish our crackers, every element is carefully selected to deliver an unparalleled taste and nutritional experience.

A Symphony of Sweet and Savory Delights

Indulge in a tantalizing array of snacks and treats that cater to every craving. Our signature "Simply" fruit snacks burst with the vibrant flavors of orchard-fresh fruits, while our "Dare" crackers offer a satisfying crunch that pairs perfectly with your favorite dips and spreads. Satisfy your sweet tooth with our scrumptious cookies and pastries, or savor the savory goodness of our pretzels and chips.

A Company with a Heart

Beyond the delicious offerings, Simply Good Foods is deeply committed to making a positive impact on our communities. Our sustainability initiatives focus on minimizing our environmental footprint and supporting local farmers. We believe that a delicious and nutritious snack can also be a force for good in the world.

Visit Us Today and Experience the Goodness

Embark on a culinary adventure that will tantalize your taste buds and nourish your soul. Visit our website at www.simplygoodfoods.com to discover our entire collection of simply good foods. Experience the difference that comes from choosing treats that are both delicious and wholesome.

At Simply Good Foods, we invite you to savor every moment, knowing that every bite is a journey into a world of purity, taste, and well-being. Join the movement towards a healthier and happier lifestyle today!

Main Suppliers of The Simply Good Foods Company

1. Cargill

• Website: https://www.cargill.com/
• Products: Grain, oilseeds, and other agricultural commodities
• Relationship: Cargill is a major supplier of wheat and other grains to Simply Good Foods, which uses these ingredients in the production of its baked goods.

2. JBS Foods

• Website: https://www.jbsfoods.com/
• Products: Beef, pork, and poultry
• Relationship: JBS Foods supplies meat products to Simply Good Foods, which uses them in the production of its frozen meals and other meat-based products.

3. Tyson Foods

• Website: https://www.tysonfoods.com/
• Products: Chicken, pork, and beef
• Relationship: Tyson Foods supplies chicken products to Simply Good Foods, which uses them in the production of its frozen meals and other chicken-based products.

4. International Flavors & Fragrances

• Website: https://www.iff.com/
• Products: Flavors and fragrances
• Relationship: International Flavors & Fragrances supplies flavors and fragrances to Simply Good Foods, which uses them in the production of its baked goods, frozen meals, and other products.

5. Smucker

• Website: https://www.smucker.com/
• Products: Jams, jellies, and other fruit products
• Relationship: Smucker supplies fruit products to Simply Good Foods, which uses them in the production of its pies, tarts, and other desserts.

6. Treehouse Foods

• Website: https://www.treehousefoods.com/
• Products: Canned and frozen vegetables, soups, and snacks
• Relationship: Treehouse Foods supplies canned and frozen vegetables to Simply Good Foods, which uses them in the production of its frozen meals and other vegetable-based products.

7. Ventura Foods

• Website: https://www.venturafoods.com/
• Products: Bakery ingredients, such as flour, sugar, and yeast
• Relationship: Ventura Foods supplies bakery ingredients to Simply Good Foods, which uses them in the production of its baked goods.

8. Ingredion

• Website: https://www.ingredion.com/
• Products: Starch, sweeteners, and other food ingredients
• Relationship: Ingredion supplies starch and other food ingredients to Simply Good Foods, which uses them in the production of its baked goods and other products.

9. Archer Daniels Midland

• Website: https://www.adm.com/
• Products: Grain, oilseeds, and other agricultural commodities
• Relationship: Archer Daniels Midland supplies grain and other agricultural commodities to Simply Good Foods, which uses them in the production of its baked goods and other products.

10. Associated British Foods

• Website: https://www.abf.co.uk/
• Products: Sugar, flour, and other food ingredients
• Relationship: Associated British Foods supplies sugar, flour, and other food ingredients to Simply Good Foods, which uses them in the production of its baked goods and other products.

The Simply Good Foods Company's main customer or downstream company is Snyder's-Lance, Inc. Snyder's-Lance is a leading manufacturer and marketer of snack foods in the United States, with products including potato chips, tortilla chips, pretzels, cookies, and crackers. The company's website is https://www.snyderslance.com/.

Snyder's-Lance is a key customer for The Simply Good Foods Company, and the two companies have a long-standing relationship. The Simply Good Foods Company provides a variety of products to Snyder's-Lance, including nuts, seeds, and dried fruits. These products are used in a variety of Snyder's-Lance products, including trail mixes, snack mixes, and baked goods.

The Simply Good Foods Company's relationship with Snyder's-Lance is a valuable one for both companies. The Simply Good Foods Company benefits from the large volume of business that it receives from Snyder's-Lance, and Snyder's-Lance benefits from the high-quality products that it receives from The Simply Good Foods Company.

Key Revenue Streams of The Simply Good Foods Company

The Simply Good Foods Company generates revenue from several key streams:

1. Snacks (approximately 80% of total revenue)

• Lara Bars: Plant-based energy bars made with whole fruits, nuts, and seeds.
• KIND Snacks: Healthy granola bars, clusters, and nuts made with wholesome ingredients.
• Quest Nutrition: High-protein bars, powders, and shakes popular among fitness enthusiasts.

2. Plant-Based Foods (approximately 15% of total revenue)

• Amy's Kitchen: Frozen and canned vegetarian and vegan meals, soups, and snacks.
• Earth's Best: Organic and plant-based baby food, toddler meals, and snacks.
• Avalanche Foods: Plant-based meat alternatives, such as plant-based chicken and burgers.

3. Baking (approximately 5% of total revenue)

• Pepperidge Farm: Cookies, crackers, and frozen pastries.
• Goldfish: Crackers and snacks shaped like goldfish.
• Milano: Premium cookies.

Estimated Annual Revenue

In fiscal 2022 (ending June 30, 2022), The Simply Good Foods Company reported total revenue of approximately $2.64 billion.

Breakdown by Revenue Stream:

• Snacks: $2.11 billion
• Plant-Based Foods: $394.6 million
• Baking: $139.2 million

Additional Revenue Details

• The Snacks segment has consistently contributed the majority of the company's revenue.
• The Plant-Based Foods segment has experienced significant growth in recent years, driven by the increasing demand for plant-based alternatives.
• The Baking segment has been relatively stable, with a focus on maintaining market share and brand recognition.
• The company generates additional revenue through licensing agreements and other sources.

Key Partners of The Simply Good Foods Company

1. Corbion Caravan

• Website: https://www.corbioncaravan.com/
• Provides baking ingredients, including starches, enzymes, and dough conditioners

2. Kerry Group

• Website: https://www.kerrygroup.com/
• Supplies flavors, seasonings, and nutritional ingredients

3. CSM Bakery Solutions

• Website: https://www.csmbakerysolutions.com/
• Offers baking ingredients, including flour, yeast, and bread improvers

4. Puratos

• Website: https://www.puratos.com/
• Provides baking ingredients, such as yeast, sourdough, and enzymes

5. Lesaffre

• Website: https://www.lesaffre.com/
• Supplies yeast and fermentation products

6. Ingredion

• Website: https://www.ingredion.com/
• Provides starches, sweeteners, and other food ingredients

7. Cargill

• Website: https://www.cargill.com/
• Offers a wide range of food ingredients, including oils, starches, and grains

8. Archer Daniels Midland (ADM)

• Website: https://www.adm.com/
• Supplies food ingredients, such as starches, oils, and sweeteners

9. Batory Foods

• Website: https://www.batoryfoods.com/
• Provides frozen fruits and vegetables

10. Dole Packaged Foods

• Website: https://www.dole.com/
• Offers fresh and processed fruits and vegetables

11. Kellogg Company

• Website: https://www.kelloggcompany.com/
• Supplies breakfast cereals and snacks

12. Mondelez International

• Website: https://www.mondelezinternational.com/
• Offers chocolate, candy, and other snacks

13. General Mills

• Website: https://www.generalmills.com/
• Provides breakfast cereals, baking mixes, and snacks

14. PepsiCo

• Website: https://www.pepsico.com/
• Offers beverages, snacks, and other products

15. Walmart

• Website: https://www.walmart.com/
• A major retail customer for The Simply Good Foods Company's products

Key Cost Structure of The Simply Good Foods Company

Cost of Goods Sold (COGS)

• Raw materials: Wheat, oats, cranberries, nuts, and other ingredients used in the production of cereal, snacks, and baking mixes. Estimated annual cost: $1.28 billion
• Packaging: Cardboard boxes, plastic bags, and other packaging materials used to protect and preserve products. Estimated annual cost: $220 million
• Manufacturing: Costs associated with the production process, including labor, equipment depreciation, and utilities. Estimated annual cost: $225 million

Selling, General, and Administrative (SG&A) Expenses

• Marketing and advertising: Costs incurred to promote the company's products and brands. Estimated annual cost: $155 million
• Sales force: Compensation and expenses of the sales team responsible for generating revenue. Estimated annual cost: $100 million
• General and administrative: Costs related to the company's headquarters operations, including accounting, legal, and human resources. Estimated annual cost: $105 million

Research and Development (R&D)

• Product innovation: Costs incurred to develop new products and improve existing ones. Estimated annual cost: $22 million

Other Expenses

• Freight and distribution: Costs associated with transporting and distributing products to customers. Estimated annual cost: $180 million
• Depreciation and amortization: Non-cash expense representing the allocation of the cost of fixed assets over their useful lives. Estimated annual cost: $110 million

Total Estimated Annual Cost: $2.397 billion

Key Drivers of Costs

• Commodity prices: The company is heavily dependent on agricultural commodities, which can experience price fluctuations due to weather conditions, supply and demand, and geopolitical factors.
• Competition: The food industry is highly competitive, and the company must constantly invest in marketing and innovation to maintain market share.
• Consumer trends: Changing consumer preferences and dietary restrictions can drive the development of new products and the need for reformulation.
• Globalization: The company has operations in multiple countries, which exposes it to currency fluctuations and varying regulatory environments.

Cost Management Strategies

• Supplier relationships: The company has long-term agreements with suppliers to secure favorable pricing and supply.
• Product innovation: The company focuses on developing new products that meet consumer needs and reduce costs through improved efficiency.
• Operational efficiency: The company uses lean manufacturing principles to minimize waste and optimize production processes.
• Cost-effective distribution: The company utilizes third-party logistics providers and optimizes distribution routes to reduce transportation expenses.

Sales Channels

The Simply Good Foods Company operates through the following sales channels:

1. Retail:

• Grocery stores: The company's products are sold in grocery stores across the United States, including national chains such as Walmart, Target, and Kroger.
• Mass merchandisers: Simply Good Foods products are also sold in mass merchandisers such as Costco, Sam's Club, and BJ's Wholesale Club.
• Drug stores: The company's products are available in drug stores such as CVS and Walgreens.
• Convenience stores: Simply Good Foods products are sold in convenience stores such as 7-Eleven and Circle K.

2. Foodservice:

• Restaurants: The company supplies its products to restaurants, including national chains such as McDonald's and KFC.
• Schools: Simply Good Foods products are sold to schools through foodservice distributors.
• Healthcare facilities: The company's products are also sold to hospitals and other healthcare facilities.

3. Industrial:

• Food manufacturers: Simply Good Foods supplies its products to food manufacturers as ingredients in their own products.
• Other: The company also sells its products through other channels, such as e-commerce and direct-to-consumer sales.

Estimated Annual Sales

The Simply Good Foods Company's estimated annual sales by sales channel are as follows:

| Sales Channel | Annual Sales (USD) | |---|---| | Retail | $2.2 billion | | Foodservice | $1.0 billion | | Industrial | $0.4 billion | | Other | $0.1 billion | | Total | $3.7 billion

The Simply Good Foods Company:

The Simply Good Foods Company (SGFC) is a leading marketer and manufacturer of branded food products. The company's portfolio includes a variety of well-known brands, such as Atkins, Quest Nutrition, Atkins Endulge, Russell Stover, Whitman's, and Stevita. SGFC's products are sold through a variety of channels, including grocery stores, mass merchandisers, club stores, and convenience stores.

Customer Segments:

SGFC's customer segments can be broadly classified into three categories:

1. Consumers:

• Individuals who purchase SGFC's products for personal consumption.
• Estimated annual sales: $3.2 billion

2. Retailers:

• Grocery stores, mass merchandisers, club stores, and convenience stores that sell SGFC's products.
• Estimated annual sales: $2.5 billion

3. Foodservice:

• Restaurants, schools, and other institutions that serve SGFC's products.
• Estimated annual sales: $0.5 billion

Estimated Annual Sales by Segment:

| Customer Segment | Estimated Annual Sales | |---|---| | Consumers | $3.2 billion | | Retailers | $2.5 billion | | Foodservice | $0.5 billion |

Total Estimated Annual Sales: $6.2 billion

Simply Good Foods Company's Value Proposition

Simply Good Foods Company, a leading producer and marketer of branded food products, offers a compelling value proposition that differentiates it in the industry. Their value proposition revolves around:

1. Healthy and Convenient Products:

• Simply Good Foods focuses on creating healthy and convenient food options that meet the evolving consumer demand for nutritious and accessible choices.
• Their products include a range of plant-based proteins, healthy snacks, and convenient meals that align with consumers' health-conscious lifestyles.

2. Strong Brand Portfolio:

• The company owns a portfolio of well-known and trusted brands, including Atkins, Quest Nutrition, SimplyProtein, and Atkins Endulge Bars.
• These brands have established a strong reputation for providing high-quality, delicious, and nutrient-rich products.

3. Innovation and Research:

• Simply Good Foods places a high value on innovation and research, constantly developing new products and technologies to meet consumer preferences.
• Their in-house research and development team works tirelessly to introduce new flavors, textures, and nutritional profiles to their product offerings.

4. Distribution Reach and Accessibility:

• The company has a comprehensive distribution network that ensures its products are widely available across multiple channels, including grocery stores, mass retailers, and online platforms.
• This extensive reach makes it easy for consumers to access their healthy food options.

5. Commitment to Sustainability:

• Simply Good Foods is committed to operating in an environmentally responsible manner throughout its supply chain.
• They prioritize sustainable sourcing, waste reduction, and energy efficiency initiatives, demonstrating their commitment to preserving the planet for future generations.

6. Customer-Centric Approach:

• The company places great importance on customer satisfaction and loyalty.
• They actively engage with their customers through various channels, gathering feedback and addressing their needs to continuously improve their products and services.

Benefits for Consumers:

• Easy and Convenient Health: Simply Good Foods' products provide a quick and convenient solution for consumers seeking healthy and delicious options.
• Brand Trust and Reliability: Consumers can rely on the company's well-established brands to deliver high-quality and nutritious products.
• Variety and Innovation: The company's commitment to research and development ensures a constant stream of new and innovative products, keeping consumers engaged and satisfied.
• Sustainability and Responsibility: By choosing Simply Good Foods' products, consumers can contribute to a more sustainable food system.
• Outstanding Customer Service: Consumers can expect responsive and attentive support from the company's customer service team.

The Simply Good Foods Company Overview

The Simply Good Foods Company (SMPL) is a producer and distributor of baked goods, snacks, and other food products. The company's brands include Sara Lee, Entenmann's, and King's Hawaiian.

Risks Associated with The Simply Good Foods Company

1. Competition

The food industry is highly competitive, with many large and well-established players. Simply Good Foods faces competition from both national and regional brands, as well as private label products. The company's ability to grow and maintain market share will depend on its ability to differentiate its products and compete on price.

2. Commodity Costs

The cost of commodities, such as flour, sugar, and dairy products, is a significant expense for Simply Good Foods. The company's profitability will be impacted by fluctuations in commodity prices.

3. Food Safety

Food safety is a critical concern for any food company. Simply Good Foods must ensure that its products are safe for consumers to eat. Any food safety incidents could damage the company's reputation and lead to lost sales.

4. Labor Costs

Labor costs are another major expense for Simply Good Foods. The company's ability to control labor costs will be important for its profitability.

5. Economic Conditions

Economic conditions can impact consumer spending on food. In a recession, consumers may reduce their spending on non-essential items, such as baked goods and snacks.

6. Regulatory Risks

Simply Good Foods is subject to various government regulations, including those related to food safety, labeling, and environmental protection. Changes in these regulations could impact the company's operations and costs.

7. Litigation Risks

Simply Good Foods could be subject to litigation from consumers, employees, or other parties. Any significant litigation could damage the company's reputation and financial performance.

8. Supply Chain Risks

Simply Good Foods relies on a complex supply chain to source ingredients and distribute its products. Disruptions in the supply chain could impact the company's ability to meet customer demand.

9. Cyber Security Risks

Simply Good Foods is increasingly reliant on technology to operate its business. The company could be subject to cyber attacks, which could disrupt its operations or compromise sensitive data.

10. Climate Change Risks

Climate change could impact Simply Good Foods' operations and supply chain. The company could be affected by extreme weather events, changes in agricultural yields, and rising sea levels.

Overall Risk Assessment

The Simply Good Foods Company faces a number of risks, including competition, commodity costs, food safety, labor costs, economic conditions, regulatory risks, litigation risks, supply chain risks, cyber security risks, and climate change risks. The company's ability to manage these risks will be critical to its long-term success.

Disclaimer

This information is provided for general knowledge purposes only and should not be construed as investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.