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Flowers Foods launches major strategic review as bread sales slump
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Tuesday, 17 February, 2026, 15 : 00 PM [IST]
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New York, USA
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Flowers Foods, the parent company behind iconic bakery brands including Wonder Bread and Nature’s Own, has initiated a “comprehensive review” of its business amid ongoing weakness in its traditional bread segment. The assessment, expected to span several years, could lead to significant operational changes, executives said.
CEO Ryals McMullian told investors the review will encompass the company’s operations, supply chain and financial strategy as the company grapples with slowing demand in key categories. Flowers’ CFO, Diego Scaglione, described the effort as “in the early innings,” and said the company is exploring options to improve performance, which could include plant closures, divestment of select brands, and further investments in innovation and efficiency.
The move comes as the bread maker forecasts continued pressure in 2026, with projected net sales of approximately $5.2 billion to $5.3 billion — a figure that represents flat performance or a decline of up to 1.8 % compared to the prior year. McMullian also flagged ongoing category headwinds, particularly in the traditional loaf market, where consumer trends have shifted toward lower-priced branded items and alternative bread options.
While Flowers has found pockets of strength in its cakes and premium bakery offerings, executives say reversing the underperformance of its core bread portfolio remains a priority. The company plans to use technology — including artificial intelligence — to streamline operations and invigorate consumer demand for leading products.
Analysts have noted that the traditional white bread category has been challenged by broader shifts in consumer eating habits, with many buyers opting for artisanal and whole-grain alternatives that emphasise health and quality. This structural change has impacted once-dominant brands like Wonder Bread, which have struggled to maintain market share in an increasingly competitive environment.
As part of the review, Flowers Foods is expected to prioritise brands and segments with the greatest growth potential while rationalising less competitive areas of its portfolio, a strategy aimed at stabilising performance and enhancing long-term shareholder value.
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