- B&G Foods reported second quarter earnings Thursday, including a 58.2% leap in quarterly net sales to $306.4 million.
- That sales growth came primarily from B&G’s 2015 acquisitions, Green Giant and Mama Mary’s. Base business net sales declined 1.3% for the quarter.
- Gross profit soared 76.9% to $109.7 million for the quarter. This too was primarily driven by the Green Giant acquisition, which saw a profit boost from lower than expected trade-in expenses and input costs.
Between new product innovations and increased marketing spend, B&G Foods has worked to “awaken the Green Giant,” as the company describes the effort internally. This has also awakened sales and profits for B&G Foods as a whole, which otherwise would have seen sales declines without its acquisitive growth.
Part of Green Giant’s portfolio is based in frozen vegetables, a subcategory in a larger frozen foods segment that has seen sales tumble in recent years.
But with a renewed focus on pushing the brand forward, Green Giant has a chance to win back the market share it lost to brands like Pinnacle’s Birds Eye. By doing so, Green Giant could also make B&G Foods a larger competitor in the processed foods industry.
If B&G continues to “awaken the Green Giant,” the company may more proactively pursue its growth, and revitalize its own business in the process. Cantwell already said late last year that the company would be open to more acquisitions, and other companies, such as ConAgra, may be looking to shed underperforming brands in the near future.