Otis Spunkmeyer
Encyclopedia
Otis Spunkmeyer Inc. is a baked goods distribution company widely known for its name and flagship line of muffin
s and cookie
s. Although a relatively small company, Otis Spunkmeyer has enjoyed a large amount of success in the industry, with clients ranging from small family-owned businesses and restaurant
s to worldwide military organizations such as the United States Army
. In addition to its famous muffins and cookies, Otis Spunkmeyer also produces frozen cookie doughs and other pastries.
Despite common belief, the name Otis Spunkmeyer is not actually referring to any person. The name was a whimsical creation of the then 12-year-old daughter of the company's founder.
in 1977. For the name of his business, Rawlings took the suggestion of his 12-year-old daughter, Kimberly, who made it up. By 1983, Rawlings had built the company into a thriving, fast growing chain with nearly two dozen stores. However, due to high overhead costs and the desire to reach a larger market, the company shifted its focus from retail to wholesale, creating a fresh-baked cookie program for other food service operators. The program included pre-portioned frozen cookie dough, a pre-set convection oven, and marketing materials. This innovative program allowed both big and small food service operators to sell fresh baked cookies (within 18 minutes) in their facilities. Today, Otis Spunkmeyer ready-to-bake cookie dough is the number one brand in the food service industry.
In 1987, the company began flying a pair of DC-3 aircraft emblazened with the company logo as a promotional vehicle.
2002 saw a management buyout led by chief executive officer
John Schiavo in association with the private equity firm of Code Hennessy & Simmons
.
In September 2005, Otis Spunkmeyer acquired Levi Kunkel, Inc., a manufacturer and distributor of thaw-and-serve frozen cookie products for the food service market, doing business as Chippery. Chippery is based out of Austin, Texas
and has a 97000 square feet (9,011.6 m²) manufacturing facility located there.
In November 2006, the company was sold to IAWS Group plc
for $561 million. IAWS already own Cuisine de France and La Brea Bakery
. IAWS merged with Hiestand to form Aryzta in 2008.
Muffin
A muffin is an American English name for a type of quick bread that is baked in small portions. Many forms are somewhat like small cakes or cupcakes in shape, although they usually are not as sweet as cupcakes and generally lack frosting. Savory varieties, such as cornbread muffins, also exist...
s and cookie
Cookie
In the United States and Canada, a cookie is a small, flat, baked treat, usually containing fat, flour, eggs and sugar. In most English-speaking countries outside North America, the most common word for this is biscuit; in many regions both terms are used, while in others the two words have...
s. Although a relatively small company, Otis Spunkmeyer has enjoyed a large amount of success in the industry, with clients ranging from small family-owned businesses and restaurant
Restaurant
A restaurant is an establishment which prepares and serves food and drink to customers in return for money. Meals are generally served and eaten on premises, but many restaurants also offer take-out and food delivery services...
s to worldwide military organizations such as the United States Army
United States Army
The United States Army is the main branch of the United States Armed Forces responsible for land-based military operations. It is the largest and oldest established branch of the U.S. military, and is one of seven U.S. uniformed services...
. In addition to its famous muffins and cookies, Otis Spunkmeyer also produces frozen cookie doughs and other pastries.
Despite common belief, the name Otis Spunkmeyer is not actually referring to any person. The name was a whimsical creation of the then 12-year-old daughter of the company's founder.
Business
In the year to 31 December 2005, revenue was $336m, EBITDA $48m, and operating profit $29.10. Tangible assets were about $50m= liabilities+stockholders equity From 2001 to 2005 sales grew at over 9% pa.History
Kenneth B. Rawlings, the founder of Otis Spunkmeyer, Inc., opened his first fresh-baked cookie store in Oakland, CaliforniaOakland, California
Oakland is a major West Coast port city on San Francisco Bay in the U.S. state of California. It is the eighth-largest city in the state with a 2010 population of 390,724...
in 1977. For the name of his business, Rawlings took the suggestion of his 12-year-old daughter, Kimberly, who made it up. By 1983, Rawlings had built the company into a thriving, fast growing chain with nearly two dozen stores. However, due to high overhead costs and the desire to reach a larger market, the company shifted its focus from retail to wholesale, creating a fresh-baked cookie program for other food service operators. The program included pre-portioned frozen cookie dough, a pre-set convection oven, and marketing materials. This innovative program allowed both big and small food service operators to sell fresh baked cookies (within 18 minutes) in their facilities. Today, Otis Spunkmeyer ready-to-bake cookie dough is the number one brand in the food service industry.
In 1987, the company began flying a pair of DC-3 aircraft emblazened with the company logo as a promotional vehicle.
2002 saw a management buyout led by chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
John Schiavo in association with the private equity firm of Code Hennessy & Simmons
Code Hennessy & Simmons
Code Hennessy & Simmons is a private equity investment firm focusing on leveraged buyout and growth capital transactions. The firm focuses on investments in middle market companies in four basic industries:* Business services* Consumer* Distribution...
.
In September 2005, Otis Spunkmeyer acquired Levi Kunkel, Inc., a manufacturer and distributor of thaw-and-serve frozen cookie products for the food service market, doing business as Chippery. Chippery is based out of Austin, Texas
Austin, Texas
Austin is the capital city of the U.S. state of :Texas and the seat of Travis County. Located in Central Texas on the eastern edge of the American Southwest, it is the fourth-largest city in Texas and the 14th most populous city in the United States. It was the third-fastest-growing large city in...
and has a 97000 square feet (9,011.6 m²) manufacturing facility located there.
In November 2006, the company was sold to IAWS Group plc
IAWS Group
IAWS Group plc was an international food and agribusiness group. The Group had lifestyle food operations in Ireland, the UK, France, the USA, and Canada serving over 50,000 customers...
for $561 million. IAWS already own Cuisine de France and La Brea Bakery
La Brea Bakery
La Brea Bakery is a retail bakery, restaurant operator, and an industrial baking company started in Los Angeles, California. Since opening its flagship store on La Brea Avenue in 1989, La Brea has opened two much larger bakeries in Van Nuys, California, and Swedesboro, New Jersey, to serve...
. IAWS merged with Hiestand to form Aryzta in 2008.