Hometown Food Company – Henk Hartong III (Brynwood Partners), (S3.EP.07)
Nov 29, 2023
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Henk Hartong III, Chairman and CEO of Brynwood Partners, discusses the creation and performance of Hometown Food Company, the impact of COVID-19, tuck-in acquisitions, expansion of the Funfetti brand, marketing shifts, digitalization, acquisition strategies in the food industry, navigating COVID-19 challenges, and decision-making during uncertain times.
Hometown Food Company, acquired by Brynwood Partners, successfully navigated the challenges of the COVID-19 pandemic and achieved significant growth.
Brinwood optimized Hometown Food Company's supply chain, expanded product offerings, and prioritized effective marketing strategies to solidify a strong market position.
Deep dives
Overview of Private Equity Deals Season 3
Season 3 of Private Equity Deals focuses on the middle market businesses, which make up a significant portion of the US private equity deal value. The podcast aims to offer insights into the middle market through a selection of deals and interviews. The show explores the combination of operational and investment skills employed by firms like Brinwood Partners to accelerate performance.
Hometown Food Company - A Carve-out Acquisition
Hank Hartong from Brinwood discusses the acquisition of Hometown Food Company from Smuckers. Hometown Food Company is a manufacturer and marketer of well-known American baking brands such as Pillsbury, Funfetti, and Hungry Jack. The acquisition involved a pure carve-out, requiring Brinwood to build a new management team, establish systems and supply chains, and manage the business through the challenges of the COVID-19 pandemic.
Integration, Supply Chain, and Innovation
Brinwood focused on integrating Hometown Food Company smoothly by negotiating a transition services agreement to ensure a seamless transition. They optimized the supply chain by consolidating warehouses, streamlining production, and investing in new equipment. The company's emphasis on innovation led to the introduction of new products, such as expanding the Funfetti brand and revitalizing the seasonal business. They also prioritized effective marketing strategies and improving relationships with retailers.
Challenges Faced and Future Outlook
The podcast episode discusses challenges faced by Brinwood, including navigating the impacts of COVID-19, managing inflationary pressures, and making pricing decisions. Despite these challenges, Hometown Food Company has achieved significant growth, doubled its sales, and solidified a strong market position. The episode concludes by noting that while Brinwood continues to build and grow businesses, there may come a time for an eventual exit from Hometown Food Company.
Henk Hartong III is the Chairman and CEO of Brynwood Partners, a middle-market private equity firm that invests in U.S. consumer-oriented businesses, primarily in the food, beverage, and personal care sectors. Henk’s father established Brynwood in 1984, and the firm boasts an impressive forty-year track record of driving results through its hands-on operating expertise.
Hometown Food Company is a manufacturer and marketer of an iconic portfolio of American baking brands that includes Pillsbury, Funfetti, Hungry Jack, Martha White, White Lily, Jim Dandy, Arrowhead Mills, Sunspire, De Wafelbakkers, and Birch Benders.
Our conversation covers the creation of Hometown in 2018 through a carve-out from Smuckers, buildout of a new management team, systems, and supply chain, management of the business through the COVID pandemic, tuck-in acquisitions, and the resulting performance of the company.