Baking & Snack - December 2018 - 14

Flowers Foods to acquire
Canyon Bakehouse

Pan Pepin celebrates $25
million expansion
Pan Pepin has doubled production capabilities in its facilities in
Bayamón, Puerto Rico. The bakery invested $25 million into a
bread line that can run up to 150 loaves per minute.
Housed in a new 40,000-sq-ft building, the line produces highvolume items such as Pan Pepin's Club Sandwich breads in White,
Whole Grain White and Whole Wheat varieties.
New equipment from AMF Bakery Systems, Shaffer, Shick
Esteve, Stewart Systems, Burford and Bettendorf-Stanford will
help automate critical production processes and minimize food
safety risks, said Mario Somoza, president and CEO, Pan Pepin.
The bakery installed an AMF Automated Fermentation Room
and an automated tray washing system to provide efficiency and
consistency to the operation. A quality control/R&D lab was also
added to facilitate the testing of raw materials and accelerate new
product development. With the new line, Pan Pepin will add 38
new jobs. The company already employs more than 500 people.
According to Mr. Somoza, the expansion is the cornerstone of a
2010 master plan developed to manage the company's growth and
streamline operations. "In addition to the new bread line, over the
last few years, we have also built a new employee parking facility, a
new distribution depot on the east of the island, installed a brand
new tortilla line and built a new water treatment facility," he said.
The expansion comes a year after devastating losses suffered
during hurricanes Irma and Maria in 2017. When Hurricane Irma
struck Pan Pepin on Sept. 6, 2017, it was without power for more
than a week and running on backup generators. Fourteen days
later, Hurricane Maria shattered everything in its path, leaving the
entire island without power and little access to running water. The
new expansion will further the company's disaster recovery efforts
and business opportunities.
Above: [From left] The Pan Pepin mascot helps Mario Somoza, president and CEO, and Jose
Teixidor, chairman of the board, celebrate the opening of the new plant along with Kerwin
Brown, president and CEO, BEMA, and Robb MacKie, president and CEO, ABA.

14 Baking & Snack December 2018 / www.bakingandsnack.com

Flowers Foods, Thomasville, GA, reached a definitive agreement
to acquire Canyon Bakehouse, Johnstown, CO, a privately held
gluten-free baking company, for $205 million.
Canyon Bakehouse was founded in 2009 by Josh and Christi
Skow and Ed Miknevicius and has 206 employees at a 165,625-sqft bakery with two production lines in Johnstown. Under terms
of the transaction, Mr. Skow will continue leading the business as
president, and Ms. Skow will serve as brand ambassador.
"Canyon Bakehouse is an innovative leader in a growing segment of the bakery category, which closely aligns this acquisition
with our strategic goals," said Allen Shiver, president and CEO of
Flowers Foods. "We see opportunities to leverage Flowers Foods'
distribution network and retail partnerships to drive growth by
bringing Canyon Bakehouse products to more consumers across
the country."
Canyon Bakehouse offers 21 gluten-free bread, buns, bagels,
English muffins and specialty items, primarily distributed frozen
through natural, specialty, grocery and mass retailers nationwide.
Canyon Bakehouse is the top gluten-free loaf brand in the natural
and specialty channel, the No. 2 brand in the overall gluten-free
loaf category and the fastest-growing gluten-free bread loaf brand
in the US, according to sales data from SPINS and IRI.
"Since the beginning, the mission of Canyon Bakehouse has
been to help those who have given up gluten to 'love bread again,' "
Mr. Skow said. "We are tremendously pleased with the brand, the
products and the teams that we have developed and grown over
the past nine years, and we are thankful for the many partners
who have helped us along the way. We are now very excited about
the opportunities for our company alongside Flowers Foods. With
Flowers' national reach, we will be able to bring our gluten-free
products to many more consumers. Flowers shares our passion
for baking, and they understand what makes our company and
our products unique."
- Monica Watrous, Food Business News

http://www.bakingandsnack.com

Baking & Snack - December 2018

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