Shearer's sells Barrel O' Fun brand to Old Dutch affiliate
Shearer's Snacks has sold the Barrel O' Fun and Rachel's brands to UR Brands — an affiliate of Old Dutch Foods.
The moves were recently announced by Shearer's corporate office in Massillon, Ohio.
Effective June 22, Shearer's will no longer ship Barrel O' Fun and Rachel's items to its distributors.
Shearer's is not a branded business. It is the leading contract manufacturer and private label supplier in North, Central and South America, Australia and Asia.
Shearer's acknowledged the possibility of short-term challenges in the transition.
Shearer's employs approximately 675 office and plant employees at its Perham facility.
The corporate plan is to move some key strategic customers into the Perham facility in place of the branded items. The move is expected to increase production volumes along with utilizing capacity more effectively.
The purpose behind the moves is that Shearer's wants to remain focused on its core business — which is private label and contract manufacturing.
"We are looking to move away from behind a brand business with branded products," Shearer's Communications Manager Tana Pflaum said.
Private label, also known as "white label" and "private brand" is considered a unique product produced by one company but packaged and sold under the label of another. It gives retailers an opportunity to produce products based on specific requirements without investing much capital.
Contract manufacturing is the outsourcing of a product to a third party.
"In contract manufacturing, we just manufacture the product," Pflaum said.
Shearer's acquired Barrel O' Fun, a private label company, in 2015. The firm began expanding outside the borders of Ohio in 2007.
Bill Nicktakis took over as chairman and CEO of Shearer's Snacks in February. Nicktakis has 33 years of business experience with a variety of firms including Frito-Lay. He lives in Phoenix, Ariz.