MILWAUKIE, Ore. (KOIN) — Flower Foods, Inc. — the nation’s second largest baking company — announced its decision Wednesday to buy Dave’s Killer Bread for $275 million in cash.
NatureBake, founded in 1955, eventually became Dave’s Killer Bread. Dave’s Killer Bread became an instant hit once it was sold at the Portland Farmer’s Market beginning in 2005. Today, it’s known as the best-selling organic bread in the nation.
The acquisition, which is still pending approval, is expected to be completed by the end of the year.
“We are very excited about the pending acquisition of Dave’s Killer Bread,” Allen L. Shiver, Flowers’ president and chief executive officer, said in a press release. “This is a well-positioned, fast growing company with excellent brand equity and an on-trend organic portfolio that appeals to today’s consumers.”
Flower operates 47 bakeries around the country and its products are available to more than 80% of the U.S. population. Among their brands, Flowers has Wonder Bread, Nature’s Own, Sunbeam and Butternut.Expanding the “breadhead nation”
Dave’s Killer Bread CEO John Tucker told KOIN 6 News their “breadhead nation continues to grow,” and their top complaint has been, “Where do we find the bread?”
Dave’s Killer Bread had trouble meeting the distribution level to meet the demand for the product, he said.
“Flowers brings to us a tremendous amount of assets in terms of their distribution and their manufacturing and it’s really a great marriage,” Tucker said.
The new company is committed to what Dave’s Killer Bread stands for — including second chances for people.
They remain committed to “being a second chance employer and really bringing that message, not only here to Portland and Oregon, but across the country,” he said. “That’s really exciting stuff to us.”
Currently there are more than 300 employees at Dave’s Killer Bread. “We intend to continue to expand at this operation as well as build out in other areas throughout the country to be able to meet that demand. There is more opportunity here than ever before,” he said.
Tucker added they expect the workforce to grow.
“Thirty percent of our workforce was formerly incarcerated and we’re inspried by all those individuals and will continue to be because they are an intergral part of our organization. We truly believe in second chance.”
The company has expansion plans and “becoming more of a state-of-the-art operation.” Tucker said the advances will be both technical and personal, helping to elevate skill sets of the workers.What about Dave?
As for Dave Dahl – literally the face of the bread — he “has been a part of the board of directors,” Tucker said. “As we transition, the Dahl family will step away as they sell off their interest in the organization to Flowers.”
Dahl, who spoke with KOIN 6 News at his home Thursday after the announcement, said it’s a bittersweet moment.
The business was his baby, he said, and “now it’s kind of completely grown up and moving on, and it’s successful, you know, in ways I never dreamed of,” he said.
“It’s bittersweet because it’s not exactly what I had in mind. But it’s probably better.”
Dahl said the fun and creativity of making the bread is what he enjoyed the most. He said he sometimes misses that Mom-and-Pop feeling of Dave’s Killer Bread, and said the financial success is not necessarily what gives a person pride.
“It’s just the satisfaction of making something that people love,” he said.
He’s not concerned the quality of the product will be compromised now that the company is owned by a giant bakery.
“I think it actually gives us more opportunity to make it more consistent,” he said. “Having put more heads and more equipment and things together. This was something we had to do to keep it competitive.”
He understands the concern the 300 employees may have at this time. “They may be confused right now, but I think they’re going to see it works out for them. … The way that we’ve run our business and the way we’ve been concerned about our employees as well as the community is something that Flowers appreciates.”
The connection with Flowers, he thinks, will provide a bigger opportunity to showcase how second-chance employees are a risk worth taking. He said it will influence more companies to consider doing it.
Flowers approached Dave’s Killer Bread about 8 or 9 months ago, but Dahl was not involved with the negotiations.
“You know, after my own little issues, there was a lot of uncertainty in the company, you know. So I think it’s just amazing how things have turned out.”
Dahl said he’s feeling good, taking care of his mental health, but doesn’t play his guitar enough. He’s able to take a broad view of everything that happened over the years.
“I set out to make the world a better place one loaf of bread at a time. It was the good seed principal,” he told KOIN 6 News. “I was the bad seed. I was able to turn my life around and contribute to everything, the community. … I”m climbing out again. I’ve done it before so I know how to do it.”
Dahl, who owns 20.6% of the company, said he is proud of his work.
“I’m just happy and proud that my baby has made a difference in the world.”