B&G Foods, Inc. manufactures and distributes shelf-stable foods in the United States, Canada, and Puerto Rico. The company owns the Ortega, Cream of Wheat, Polaner, and other brands dating back to 1880. B&G Foods distributes its products through a network of independent brokers and distributors to supermarket chains, food service outlets, mass merchants, warehouse clubs, nonfood outlets, military commissaries, and specialty food distributors. The company has managed to insulate itself against price increases for 2011 and anticipates only 2.2% cost inflation in 2011, while the price of corn has risen 126% as of June 2011.
The company’s products include:
Although B&G has managed to hedge against most food price increases in 2011, the company still stands to lose as costs rise if it can’t pass on increased costs to consumers. B&G has already announced price increases for many products ranging from 1-8%, averaging 2.5% in the aggregate. Comparable companies are facing inflation at “high single digits.” Prices of corn and wheat are up 96% and 126% year-over-year as of June 2011.  Sustained increases in food prices would damage B&G’s bottom line.
With the launch of private label products by supermarkets and retailers, branded products have lost market share. Private label products often are sold at lesser price points, and in economic downturns consumers often substitute private label foods for branded products. Maintaining strong brand equity even in downturns is critical to B&G’s success.
B&G’s competitors include: