What's Happening?
Seven Sundays, a Minneapolis-based company, has acquired its long-term manufacturing partner, Birch Packaging, located in St. Peters, Minnesota. This acquisition follows Seven Sundays' expansion into approximately 10,000 new retail locations, including major chains such as Target, Walmart, and Kroger. The acquisition includes the facility and the underlying company previously owned by Mike Steele. Seven Sundays has been collaborating with Birch Packaging, formerly known as Chippewa Packaging, for over a decade. The acquisition allows Seven Sundays to manage blend, pack, and kitting operations in-house, providing vertical integration that facilitates faster innovation, flexibility across formats and channels, and ensures high product quality and transparency.
Why It's Important?
The acquisition of Birch Packaging by Seven Sundays is significant as it represents a strategic move towards vertical integration, which can lead to increased efficiency and innovation in product development. By bringing manufacturing operations in-house, Seven Sundays can better control production processes, reduce costs, and respond more swiftly to market demands. This move is likely to enhance the company's ability to expand its product lines, such as Protein Oats, and introduce new formats that cater to consumer preferences for snackable, on-the-go options. The acquisition also underscores the importance of maintaining strong partnerships with co-manufacturers to support continued growth.
What's Next?
Following the acquisition, Seven Sundays plans to expand its innovation efforts, particularly in its Protein Oats line, and explore new price-pack varieties and snackable formats. The company aims to maintain and grow partnerships with outsourced co-manufacturers to support its growth trajectory. As Seven Sundays continues to expand its retail presence, it may seek additional acquisitions or partnerships to further enhance its manufacturing capabilities and product offerings.
Beyond the Headlines
The acquisition highlights a broader trend in the food manufacturing industry towards vertical integration, where companies seek to control more aspects of their supply chain to improve efficiency and product quality. This move may also reflect a growing consumer demand for transparency and quality in food products, pushing companies to adopt more integrated and sustainable practices.
