Tasty Baking Company Poised for Growth, Ripe With Innovation
On May 24, 2011, Flowers Foods, Inc. (NYSE: FLO) and Tasty Baking Company completed Flowers' all cash merger with Tasty Baking Company for a total purchase price of approximately $175 million, including the payoff of Tasty's indebtedness and transaction expenses.
With the completion of the merger, Tasty Baking's common stock ceased trading on Nasdaq Global Market (NasdaqGM: TSTY) at the close of market on May 24, 2011 and is no longer listed on the NasdaqGM. Tasty is now a wholly owned subsidiary of Flowers and is part of Flowers' direct-store-delivery segment.
Tastykake employees take tremendous pride in Tasty Baking Company's rich heritage and bright future. Unquestionably, our products represent the industry benchmark for consistent taste, quality, and freshness. The idea of small cakes, pre-wrapped fresh at the bakery and conveniently available at the local grocer, was uniquely appealing to Americans.
Back in 1914, a Pittsburgh baker, Philip J. Baur and a Boston egg salesman, Herbert T. Morris went into business in Philadelphia to produce baked goods using only the finest ingredients delivered fresh daily to the bakery. They insisted on farm fresh eggs, Grade A creamery butter, real milk, cocoa, spices, and natural flavorings from the far ends of the earth.
The products were so good that Morris' wife, after trying some of the samples, said they were "tasty," so they eventually named the business Tasty Baking Company and came up with the catchy name, Tastykake.
At ten cents a cake, Morris sold $28 worth the first day, $222 the first week. The work paid off. By the end of 1914, gross sales were $300,000.
Machinery was built, employees were hired, and routes were expanded. Chocolate Juniors were the first new product developed, then they put in electric ovens for cupcakes. By 1918, sales reached $1 million. By 1930, with the introduction of Butterscotch Krimpets and the expansion to five buildings, Tastykake was selling $6 million worth of these new snack cakes. Krimpets and cupcakes were the two best sellers at two packs for a nickel.
In the '30s, as Americans looked toward economy, Tasty Baking Company came up with a revolution - individually packaged lunchbox-sized pies. A modern concept today with the "grab 'n go" culture. And at a nickel apiece, they became immediate hits. The apple led to peach and lemon and blueberry, and the rest, as they say, is history.