Tasty Baking

Source: Food and Drink Digital

Date :07/01/2008 09:45:02

Tasty Baking is constructing new facilities and looking to expand geographically, as well as with product innovation, bringing more delightful treats to more consumers

Written by Ian Armitage and Produced by Pat Harlow

Established in 1914, Philadelphia based Tasty Baking Company manufactures and markets the notoriously tasty Tastykake snack foods brand. Originally selling and marketing its products in just the Philadelphia area, the company, which has a unique tradition and heritage, now distributes its products in several states on America’s East Coast and through some national stores.

“We bake our products with wholesome ingredients, and embody delicious taste, quality, and freshness,” explains Autumn Bayles, SVP of Strategic Operations. “We have a rich heritage and take tremendous pride in carrying on the company’s historic dedication to quality.”

Over the years, Tastykake has become a true Philadelphia success story, with net annual sales in excess of $171 million. But, as Autumn says, after executing a turnaround recently, the company has its “sights set on growing the company, and we have a strategic plan in place on how to achieve this and overcome challenges that lie ahead.”

Tasty’s snack sized, prepackaged cakes, pies, and cookie bars are diverse in type and taste and are perfect for at home or on the go. Many varieties have been available for at least 50 years and have expanded into current flavors.

Tasty Baking Company’s name says it all; in addition to its popular Butterscotch Krimpet, the company is known for its Tastykake Buttercream and Chocolate Crème Filled Cupcakes, Peanut Butter Kandy Kakes, and Lemon Pies, among many other flavors and varieties. The Tastykake brand is sold through approximately 15,500 convenience stores and supermarkets as well as some national chains such as Wal*Mart. The company also sells direct to consumers through its toll-free telephone number or on its website at www.tastykake.com.

In the Navy

Tasty Baking owns its major production facility in the Nicetown neighborhood of Philadelphia on Hunting Park Avenue, which has been operating since 1922. A second smaller and newer facility is located just north of Oxford, Pennsylvania in Chester County. However, the company is now focusing on improving its operations and replacing the aged Philadelphia bakery. As a result, in May 2007, Tasty Baking Company announced a decision to move its offices and production site to the former Philadelphia Navy Yard in South Philadelphia.

“Our Hunting Park Bakery has served us very well over many decades. But it is now time to update our operations to a single story, efficient process flow bakery, which just isn’t possible to achieve in the current six story building. We can improve our operating efficiency, financial results, and consumer offerings as part of this transition,” says Autumn. “We want to be a strong competitor in the industry and need to have the technological and process advantages that this new facility brings to the table. Once completed, the newly constructed, state-of-the art bakery will represent a significant milestone in our development.”

The new bakery will be a 345,500 square foot building on 25 acres, which will include the production facility and a distribution center. When complete, it will house advanced production and packaging lines, as well as the warehouse component. The new ‘green’ office building will be located less than a mile away in the office park of the Navy Yard.

The plan to relocate the Philadelphia operations is the result of a comprehensive operational review of strategic manufacturing options, which was announced in May 2006.

High-Tech baking

As part of the move, Tasty Baking plans to purchase new high-tech, modern baking equipment. This equipment is designed to increase product development flexibility and production efficiency, while enabling the company to provide the same delicious, wholesome taste that consumers have enjoyed and trusted for almost a century.

Tasty Baking Company expects the new baking facility to be fully operational in 2009.

“This new facility is part of the company’s strategy to overcome challenging industry conditions, becoming a competitor that always looks for continuous improvement,” says Autumn. “Continuous improvement is how we live, and everyday we look at how we can be doing things better. It is relentless!”

The new bakery is a significant step in the right direction as Tasty Baking looks to position itself for the future. The new building will enable the company to become significantly more efficient, while also adding flexibility to make products that are not feasible to produce within the existing facilities. New product innovation, according to Autumn, is the only way Tasty Baking will continue to grow in existing markets, and so the new facility is vital. “We will be able to make products we can’t currently produce, which will allow us to further pursue product innovation aligned with consumer lifestyle trends.”

As a Brownfield opportunity, Tasty Baking is also helping to rejuvenate the city. “It was an area that the city was very interested in developing so that was definitely an incentive to build a factory there,” says Autumn.

Bitter sweet symphony

Although the industry is a challenging one, Tasty Baking can become a formidable player if it makes the right strategic business decisions now, focusing on innovation, continuous improvement, and the customer. In doing so, the company will create superior products that are indulgent treats, as well as healthy snacks for those seeking that type of product.

“We hope to become increasingly more profitable,” says Autumn. “The new bakery puts us into a great position and we plan to drive a lot of economic value from it. We would like to grow into new markets and launch new products that appeal to consumer’s trends.”

The Tasty Baking Company was founded on the principle of a wholesome delicious snack. A commitment to this has seen the company grow over the decades, enjoying increased popularity. “The power of the brand has been strong. We are committed to the concept of a wholesome delicious snack and our loyal customers expect that from us. We have a dedicated management team that is currently navigating the company through this transition, and we are optimistic of enjoying success in the future.”