Shearer's Snacks has sold the Barrel O' Fun and Rachel's brands to UR Brands — an affiliate of Old Dutch Foods. The Perham production facility is not included in the transaction.
Perham Focus reports this move was 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.
Tana Pflaum, Shearer's Communications Manager:
“We are looking to move away from behind a brand business with branded products.”
“In contract manufacturing, we just manufacture the product.”
Shearer's acquired Barrel O' Fun, a private label company, in 2015.