Chattanooga BakeryFamous for its MoonPie snack, Chattanooga Bakery continues to focus on what it does best while dipping into other business ventures.”The Chattanooga Bakery is a very strong niche player,” said John Riddell, who heads the Center for Entrepreneurial Growth for the Chattanooga Area Chamber of Commerce. “They have a very strong brand name in a very, very narrow niche of snack cookies — and that’s their area that they stay focused on.”Sales also are making gains in the company’s newest venture, an acquisition of Alabama-based company Betsy’s Cheese Straws, according to Chattanooga Bakery President Sam Campbell. This is the first time the company has been in the gourmet food business.The family-owned company distributes its products mostly in the South, and it has about 150 employees.In the past five years, several new items have been added, including a peanut butter MoonPie and mint-flavored MoonPie.”(Chattanooga Bakery) has pretty much stuck to what they do, and trying to get better at what they do,” Mr. Riddell said.– Compiled by Brittany CoferAbout MayfieldCelebrating 100 years in the dairy industry, Athens, Tenn.- based Mayfield Dairy Farms attributes its success to innovation.Company officials say they try to stay ahead of the curve with technology that removes unwanted flavors from milk and yellow jugs that block out harmful light.Brian Baker, Mayfield spokesman, noted the family-owned dairy serves nine Southeastern states, including Tennessee, Georgia and Alabama, and is continuing to expand.An operation that began with 45 Jersey cows has grown to one that offers a full line of milk and ice cream products. More than 1,800 employees across the region work for the company, which sells close to 70 million gallons of milk and nearly 30 million gallons of ice cream each year.”I think the key to any company staying in business is staying tuned into your marketplace,” said John Riddell, who heads the Center for Entrepreneurial Growth for the Chattanooga Area Chamber of Commerce.– Compiled by Brittany CoferWith: File photos of Mayfield, Chattanooga Bakery and McKee FoodsABOUT MAYFIELDCelebrating 100 years in the dairy industry, Athens, Tenn.- based Mayfield Dairy Farms attributes its success to innovation.Leading the industry in using a machine that removes unwanted flavors from milk and fashioning its recognizable yellow jug that blocks out and reflects harmful light, company officials say they try to stay head of the curve.Brian Baker, Mayfield spokesman, noted the family-owned dairy serves nine Southeastern states, including Tennessee, Georgia and Alabama, and is continuing to expand.An operation that began with 45 Jersey cows has grown to one that now offers a full line of milk and ice cream products. More than 1,800 employees across the region work for the company, which sells close to 70 million gallons of milk and nearly 30 million gallons of ice cream each year.”I think the key to any company staying in business is staying tuned into your marketplace,” said John Riddell, who heads the Center for Entrepreneurial Growth for the Chattanooga Area Chamber of Commerce.Compiled by Brittany CoferABOUT CHATTANOOGA BAKERYFamous for its MoonPie snack, Chattanooga Bakery continues to focus on what it does best while dipping into other business ventures.”The Chattanooga Bakery is a very strong niche player,” said John Riddell, who heads the Center for Entrepreneurial Growth for the Chattanooga Area Chamber of Commerce. “They have a very strong brand name in a very, very narrow niche of snack cookies — and that’s their area that they stay focused on.”Sales are also making gains in the company’s newest venture, an acquisition of Alabama-based company Betsy’s Cheese Straws, according to Chattanooga Bakery President Sam Campbell. This is the first time the company has been in the gourmet food business.The family-owned company distributes its products mostly in the South, and it has about 150 employees.In the past five years, several new items have been added, including a peanut butter MoonPie and mint-flavored MoonPie.”(Chattanooga Bakery) has pretty much stuck to what they do, and trying to get better at what they do,” Mr. Riddell said.Compiled by Brittany Cofer
For 50 years, McKee Foods Corp. has kept its focus on a brand name that has made it a powerhouse in the snack foods industry.
Little Debbie, named after co-founder O.D. McKee’s granddaughter, began in 1960 with the Oatmeal Cream Pie and has since grown into a brand with more than 75 varieties of snacks.
But other than an increase in the types of snacks the brand offers, the company’s executive vice president for marketing and sales said not much else has changed.
“We’ve gone from primarily being the multi-pack, which is a box with several packages, to offering single-serve products,” said Chris McKee, who has worked in the family-owned business since he was 16 years old. “That’s primarily how we’ve changed. We still offer a great value to the customer, and the quality has not changed.”
In fact, the company’s ability to keep the brand the same is its greatest asset, he said. The same four Little Debbie products — the Swiss Roll, Oatmeal Cream Pie, Nutty Bar and Honey Bun — have consistently been the company’s top sellers.
“McKee Foods is an industry leader,” said John Riddell, who heads the Center for Entrepreneurial Growth for the Chattanooga Area Chamber of Commerce.
“They are generally regarded as one of the low-cost, if not the low-cost producer, in the baking industry.”
Annual sales are typically about $1 billion, Mr. McKee said, and even through the economic downturn there have been positives.
Super centers, such as Walmart, and value retailers such as Dollar General, have become big sellers of Little Debbie products, as many people dine in and turn to low-cost options, he said.
Staying in business for many years requires skill in adapting and staying in tune with the marketplace, Mr. Riddell said.
“If you look at the history of McKee Foods, it’s been one of constant adaptation to changing customer tastes, and being able to respond to those,” he said.
It’s also about organizing the company balance sheet in a way that even when there are financial uncertainties, such as an unexpected economic downturn, the company can continue to prosper, Mr. Riddell said.
“If you don’t have a lot of debt and you do have a lot of cash, then you have a tremendous amount of flexibility to be able to handle what the marketplace throws at you,” Mr. Riddell said. “If you have a lot of debt and not a lot of cash … and something happens that throws out your revenue side, something happens and you can’t cover those debts, now you’re in trouble.”
Though Mr. McKee said the company does not discuss future plans, he said there are two things that will never change about McKee Foods and the Little Debbie brand.
“We’re still extremely committed to value and to quality,” he said.