Flower Foods

Flower Foods

Strengths

-Market Leaders due to popular & quality brand names.-Their top of the market wheat bread “HomePride”.

-Aqcuired from Hostess: Wonderbread (leading white bread), Natures Pride, twinkies, hoho's, ding-dongs, as well as other breads, rolls, croutons, stuffing and donuts.

-Strong distribution-Flower foods is known for its roughly 3500 independent distributors who'm

have franchise rights to sell even the brand named products.

-Aqcuired from Hostess: 700 bakery outlets, 39 bakeries, and 600 more

distribution centers. 600 delivery routes.

Weakness

-Rely's on large retail companies

- Walmart, Sam's club, other big retail companies make up for roughly 48% (2010) of Flower Foods sales.

- Rely's on US consumers only

-Flower Foods sales come from just about 100% US consumers

-Competitor company “Grupo Bimbo” has market sales of up to 46% just from Mexico

Opportunity

–Expand market outside of the US

-The Private Label Market is expanding

-The Private Label Manufacturer's Association had announc'ed a vast increase in private labels by 34% which equaled roughly 50,000 million from (2005-2010).

-explains why we see aldi's and kroger growing rapidly.

Threats

-Biggest threat would be Competition

-to name a few: McKee Foods, Cambell Soup Company, Grupo Bimbo, Sara Lee. Depending on their companies moves could result in reduced profit/sales for Flower Foods.

-Like almost any other company, Inflation

- inflation would cost Flower Foods not only sales because not everyone needs a twinkie but also

operating costs.

-Russia (3rd largest wheat supplier) had a drought in 2009 as well as kazakhstan and parts of the European union having a massive flood that year resulted in the highest prices for wheat in america that following year (2010), being $7 a bushel.