Dive Brief:
- Cal-Maine Foods said Tuesday it would purchase Van's Foods waffles and other assets from Sara Lee Frozen Bakery for an undisclosed amount, expanding its reach beyond eggs. Sara Lee Frozen is owned by private-equity firm Kohlberg.
- Cal-Maine, the largest egg company in the U.S., said the purchase is aimed at helping diversify its business and grow in prepared foods sold at retail.
- The addition of Van’s is expected to increase Cal-Maine’s prepared foods annual sales by approximately 10% and volume by about 6%. Cal-Maine posted net sales of $4.3 billion in its 2025 fiscal year.
Dive Insight:
Cal-Maine is expanding its breakfast menu with the purchase of Van’s, a maker of gluten-free waffles.
Egg prices have come down significantly since the spread of bird flu, which has killed more than 150 million birds since 2022. Lower prices have led to steep declines in Cal-Maine's profits, with conventional egg sales down close to 60% in its most recent quarter.
As a result, Cal-Maine no longer wants to put all its eggs in one basket by depending solely on the commodity that has been the foundation for much of its nearly 70-year history.
“We believe this acquisition will further our diversification strategy by expanding our reach in prepared foods consumer-facing retail,” Sherman Miller, Cal-Maine’s CEO, said in a statement. “We see meaningful opportunities to drive growth, unlock efficiencies, and innovate in ways that better serve our customers and consumers.”
Van’s competes in the fast-growing, better-for-you frozen breakfast segment by combining broad retail distribution with a strong value proposition of taste, convenience and products tailored to a wide range of dietary needs and preferences, according to Cal-Maine. Miller added that the company sees an opportunity to grow Van’s market share by innovating into new parts of the day, formats and snacking occasions.
The purchase adds to Cal-Maine's ambitions in breakfast food, with the company buying waffle and pancake maker Echo Lake Foods for $258 million last year. The company also entered a joint venture with egg wrap maker Crepini, which also offers protein pancakes.
Cal-Maine is not the first commodity company to make the move into retail. Meat and chicken processor Tyson Foods has assembled an enviable roster of retail brands, including Jimmy Dean, Hillshire Farm and Ball Park, through a 2014 acquisition.
McCormick & Co., best known for its spices and flavorings, has purchased Frank’s Red Hot, French’s mustard and Cholula hot sauces. And recently, it entered into a $45 billion agreement to combine with Unilever's food business, including Hellman’s mayonnaise and Knorr sauces.
