Flowers Foods, Inc., a leading producer of packaged bakery foods, and owner of other popular gluten free brand Canyon Bakehouse, has announced a definitive agreement to acquire Simple Mills for $795 million in cash via PR Newswire.
This strategic acquisition aims to enhance Flowers Foods’ growth by adding a scaled, better-for-you snacking platform that appeals to mainstream consumers and offers significant potential for future expansion. It also shows they are investing into even more gluten free product offerings as the market for food products, snacks, and breakfast foods changes.
Founded in 2012 by Katlin Smith, Simple Mills is a market-leading natural brand offering premium better-for-you crackers, cookies, snack bars, and baking mixes that are all gluten free and made from almond flour. The brand’s focus on simple ingredients and gluten free flours has cultivated strong loyalty among consumers, especially those with Celiac Disease and other food intolerances/allergies. In 2024, Simple Mills generated estimated net sales of $240 million, representing a 14% increase compared to the prior year.
Upon completion of the transaction, Simple Mills will operate as an independent subsidiary of Flowers Foods, continuing to be led by founder and CEO Katlin Smith and her existing leadership team. The company will maintain its operations in Chicago and Mill Valley, California.
This acquisition is expected to diversify Flowers Foods’ category exposure by bolstering its presence in the better-for-you, allergy friendly, and snacking segments, which are currently outpacing traditional categories in growth.
The acquisition of Simple Mills by Flowers Foods, Inc. is a significant development for the gluten-free (GF) foods market. Flowers Foods, already a notable player in the GF category with brands like Canyon Bakehouse, is strategically expanding its footprint in the better-for-you and gluten-free space. This move indicates Flowers’ growing commitment to addressing consumer demand for clean-label, nutrient-dense, and allergen-friendly options.
What It Means for Simple Mills
- Maintaining Brand Integrity:
- Simple Mills, known for its focus on clean ingredients and nutrient-dense gluten-free snacks and baking mixes, will continue operating as an independent subsidiary. This structure ensures the brand’s identity, innovation, and loyal GF consumer base remain intact.
- Founder and CEO Katlin Smith will stay at the helm, ensuring the brand’s ethos aligns with its new parent company’s goals.
- Expansion Potential:
- With Flowers Foods’ extensive distribution network, Simple Mills will likely see an expansion into more mainstream grocery stores, big-box retailers, and potentially international markets.
- Increased funding and operational support could lead to the development of new GF product lines or improvements in existing ones.
Impact on Flowers Foods and the GF Market
- Portfolio Diversification:
- Flowers Foods’ acquisition of Simple Mills diversifies its portfolio further into the GF and allergen-free market, complementing Canyon Bakehouse, which specializes in gluten-free breads and baked goods.
- This addition reinforces Flowers’ position as a leader in the premium, health-conscious market segment.
- Catering to Growing GF Demand:
- The gluten-free market has been steadily growing, driven by consumers with celiac disease, gluten intolerance, and those pursuing a gluten-free lifestyle.
- Adding Simple Mills expands Flowers Foods’ product range beyond bread and baked goods into snacks, crackers, cookies, and baking mixes, addressing more touchpoints in the GF food journey.
- Competition with Other GF Players:
- Flowers Foods’ broadened portfolio could challenge other established GF brands like Udi’s, Enjoy Life, and smaller niche GF players.
- Simple Mills’ strong consumer trust and clean-label philosophy may set it apart from competitors that have less focus on ingredient transparency.
What It Means for the Gluten-Free Consumer
For consumers, the acquisition promises wider availability of Simple Mills products and possibly even lower price points due to improved economies of scale. Additionally, with Flowers Foods’ support, Simple Mills may continue innovating new GF snacks and mixes, keeping the brand competitive and exciting in the ever-evolving GF market.
My person thoughts? I hope it also leads to newer innovations, and better deals, because to be honest Simple Mills is one of the more expensive brands on the market! What do you think? Leave a comment below or chime in on social media.
Another great article to read more about this: https://www.nosh.com/news/2025/flowers-foods-to-acquire-simple-mills-for-795-million
