Information on the target
Sweetmore Bakeries, a Chicago-based manufacturer of sweet baked goods, has successfully acquired Fantasy Baking, a California-based contract baker specializing in cookies and baked bars. This acquisition marks Sweetmore's sixth bakery and its inaugural presence on the West Coast. Fantasy Baking is renowned for producing a diverse range of cookies and bars that are sold under various private labels by grocers, foodservice operators, and food brands, alongside some branded offerings.
Founded in 1979 in San Fernando, California, Fantasy Baking initially operated as Fantasy Cookie Co., focusing on hand-decorated novelty cookies and gingerbread houses. Over the years, the company has evolved, acquiring Meyers Cookie Co. in 1985 and Adrian’s Fine Cookies in 1989, which allowed it to expand its production capabilities and shift towards healthier cookie options, nutrition bars, and snacks. Today, under the leadership of CEO Russ Case, Fantasy Baking operates four production lines at a plant certified under the SQF food safety program, producing a variety of products including organic, high-protein, non-GMO, gluten-free, and kosher items.
Industry overview in the target’s specific country
The Cookie, Cracker & Pasta Manufacturing industry in the United States has shown resilience and adaptability in recent years, driven by evolving consumer preferences and a growing demand for healthier snack options. In 2025, U.S. cookie sales reached approximately $4.4 billion, with projections indicating a steady growth rate of about 1.9% annually, expected to reach $5.0 billion by 2031. This growth is largely attributed to the increasing popularity of gluten-free, organic, and high-protein products, as well as the trend towards smaller, individually wrapped portions that cater to on-the-go consumers.
Moreover, the market for protein bars is expanding at an even faster pace, with Grand View Research estimating the U.S. market at $5.3 billion in 2025 and forecasting it to reach $8.2 billion by 2033, reflecting a robust annual growth rate of 5.6%. This surge in demand is indicative of a broader shift in consumer behavior towards healthier snacking alternatives, which has prompted manufacturers to innovate and diversify their product offerings.
Supermarket in-store bakeries have also experienced growth, with sales reaching $21 billion in the year ending August 2025, marking a 2.6% increase. This growth is driven by a shift in purchasing patterns, as grocers increasingly opt for frozen, thaw-and-serve, and pre-portioned products from external bakeries rather than producing everything in-house. This trend presents significant opportunities for companies like Sweetmore Bakeries and Fantasy Baking, which are well-positioned to meet the evolving needs of retailers and consumers alike.
Competitive dynamics in the industry are characterized by a mix of established players and emerging companies. Sweetmore Bakeries faces competition from notable firms such as Give & Go Prepared Foods, Rise Baking Company, McKee Foods, an…