Snackers and nibblers with a taste for the South seek Golden Enterprises. Operating through subsidiary Golden Flake Snack Foods, the company makes and distributes a slew of barbecue and other Southern flavored-varieties of potato chips, fried pork skins, corn chips, onion rings, and baked and fried cheese curls, to name a few. It also markets peanut butter, canned dips, dried meat snacks, pretzels, and nuts packed by other manufacturers under the Golden Flake brand. The Golden Flake lineup is sold through the company's sales force to commercial enterprises that sell food products across the Southeastern US, as well as through independent distributors. The company was founded in 1946 as Magic City Food Products.
Golden Enterprises' operations consist of a main production plant located at its headquarters in Birmingham, Alabama, and a smaller production plant in Ocala, Florida. Products are distributed via the company's own fleet of trucks, as well as by independent distributors across 10 states in the Southeast.
Golden Enterprises divides its business between manufactured products, which account for more than three quarters of consolidated sales, and resale products, with generate remaining sales. No single product represents more than 50% of the company's sales.
In fiscal 2012 (ends May) Golden Enterprises marked a second year earnings' slide. Following a 28% year-over-year fall in earnings in 2011, the company reported more than a 26% decline in 2012 atop a 4% rise in sales, which have held a relatively flat trend, over the prior year. Results reflect slowed demand driven by changing consumer tastes and heath considerations coupled with volatile raw material costs, and higher selling, general, and administrative expenses related to a highly competitive market.
Golden Enterprises competes with industry snack-food giants Frito-Lay, General Mills, Kellogg, Snyder's-Lance, J & J Snack, and Pringle-maker Procter & Gamble. Nonetheless, Golden Enterprises aims to distinguish itself by highlighting its southern ties through college football team sponsorships (including the University of Alabama's Crimson Tide). Moreover, the company continues to expand its portfolio of regional offerings, adding Mrs. B's Southern Style Potato Chips, for example. Catering to the growing Hispanic population, the company has also introduced snacks such as Salsa Verde Tortilla Chips.
The family of the late Sloan Y. Bashinsky, former president, CEO, and chairman, controls about 55% of the company. – less