B&G Foods, Inc. (BGS): Business Model Canvas [Dec-2025 Updated]

You're digging into B\&G Foods, Inc.'s (BGS) current strategy, and honestly, it's all about triage right now: simplifying a sprawling portfolio while wrestling with net debt sitting north of $\mathbf{\$1.9 \text{ billion}}$. After two decades analyzing these shelf-stable giants, I can tell you the playbook for late 2025 centers on aggressive deleveraging and margin defense, especially with Q3 2025 gross profit only hitting $\mathbf{22.5\%}$ of net sales. We're looking at a company guiding for fiscal 2025 sales between $\mathbf{\$1.82 \text{ billion}}$ and $\mathbf{\$1.84 \text{ billion}}$ while actively shedding non-core assets like Don Pepino; so, understanding how their $\mathbf{50+}$ heritage brands still connect with value-conscious households and foodservice operators is key to seeing where the next dollar of cash flow comes from. Dive into the full Business Model Canvas below for the precise breakdown of their partnerships, costs, and channels as they execute this turnaround.

B&G Foods, Inc. (BGS) - Canvas Business Model: Key Partnerships

The Key Partnerships for B&G Foods, Inc. are centered on maintaining market access, ensuring supply chain reliability, and managing a significant debt load through financial relationships.

The company relies heavily on its relationships with major retail gatekeepers to secure shelf space for its diverse portfolio of over 50 brands across the United States, Canada, and Puerto Rico.

Efficient movement of goods requires robust logistics partners. B&G Foods, Inc. utilizes a network of third-party logistics (3PL) providers to support its multi-channel sales system.

The Spices & Flavor Solutions segment, for instance, saw its adjusted EBITDA decrease in Q1 2025 partly due to increases in raw material costs, specifically mentioning inputs like black pepper and garlic.

• Raw Material Cost Impact (Q1 2025): Increased costs for black pepper and garlic cited as a driver for segment adjusted EBITDA decrease of 8.4%.
• Supplier Risk: Risk exists from third-party suppliers and co-packers failing to comply with food safety or other laws, which could disrupt raw material supply.

Production flexibility is outsourced through co-packers/co-manufacturers, a critical element acknowledged in risk disclosures regarding supply chain continuity.

Managing the capital structure involves key relationships with financial institutions. As of the end of Q2 2025, B&G Foods, Inc.'s net debt stood at $1.957 billion, further reduced pro forma for the Le Sueur sale.

These financial partners enforce covenants that B&G Foods, Inc. must adhere to, such as maintaining consolidated leverage of 7x or less under its revolving credit facility agreement.

The company's operational performance, such as the Q3 2025 adjusted EBITDA margin of 16% of net sales, directly impacts the perceived risk by these lenders.

The company also engages in capital markets activities, exemplified by the July 2024 completion of a tack-on offering of an additional $250.0 million aggregate principal amount of 8.000% senior secured notes due 2028.

You need to track those covenant cushions closely.

B&G Foods, Inc. (BGS) - Canvas Business Model: Key Activities

Strategic portfolio reshaping via divestitures is a core activity, solidifying the stability and strength of the core B&G Foods portfolio of brands. B&G Foods completed the divestiture of Le Sueur U.S., recognizing a gain of $15.5 million in the third quarter of 2025. Furthermore, the company announced the sale of Green Giant Canada in late October 2025. Other mentioned divestitures include Back to Nature, Green Giant canned vegetables, and tomato businesses in New Jersey. The divestitures negatively impacted third quarter adjusted EBITDA by approximately $3.2 million.

Manufacturing and processing of diverse food products across multiple categories supports a portfolio of over 50 well-known brands operating in the United States, Canada, and Puerto Rico. The company reported third quarter of 2025 net sales of $439.3 million, with base business net sales (excluding divestitures) at $437.0 million. For the first three quarters of 2025, net sales were $1,289.1 million, and base business net sales were $1,266.5 million.

Brand management and targeted marketing drive core brand sales, though consumer marketing expenses decreased by $1.8 million in the third quarter of 2025. Selling, general, and administrative expenses decreased by 3.0% to $44.6 million in the third quarter of 2025, while SG&A margin was 10.2% versus 10.0% previously.

Supply chain management focuses on mitigating input cost inflation and tariffs, which have been key pressures. The decrease in Spices & Flavor Solutions segment adjusted EBITDA for the first three quarters of 2025 was due in part to increases in raw material costs, specifically for garlic and black pepper, and the impact of tariffs. Tariffs could further constrain earnings because B&G Foods has a production footprint for Green Giant products in Mexico that are imported into the U.S., and a portion of spices and seasonings ingredients are sourced from China. Promotional trade spend, captured on the net sales line, increased by approximately 110 basis points in the third quarter of 2025 versus the third quarter of 2024.

Executing cost savings initiatives is a priority, with management committed to accelerating these efforts. The company is implementing a cost-saving initiative targeting $10 million in savings for the third and fourth quarters of fiscal 2025. Annualized savings from these initiatives are projected to be in the range of $15 million to $20 million. The third quarter benefited from the implementation of this back half $10 million cost savings initiative.

• The company's consolidated leverage ratio stood at 6.88x at the end of Q3 2025.
• Fiscal 2025 net sales guidance was narrowed to a range of $1.82 billion to $1.84 billion.
• Fiscal 2025 adjusted EBITDA guidance was narrowed to a range of $273.0 million to $280.0 million.
• Adjusted diluted earnings per share guidance for fiscal 2025 was narrowed to a range of $0.50 to $0.58.

B&G Foods, Inc. (BGS) - Canvas Business Model: Key Resources

You're looking at the core assets B&G Foods, Inc. (BGS) relies on to execute its strategy. These aren't just line items on a balance sheet; they are the engines driving the business.

The most tangible resource is the brand portfolio itself. B&G Foods, Inc. maintains a portfolio of over 50 established, heritage food brands. These brands carry deep consumer recognition, which is a significant barrier to entry for competitors.

This portfolio is underpinned by essential Intellectual Property (IP). This includes the legally protected trademarks and the proprietary recipes that define the products under brands like Crisco, Cream of Wheat, and Ortega. While the value of this IP is subject to review, for instance, B&G Foods recorded significant impairment charges in fiscal 2024 related to intangible trademark assets for brands including Green Giant, Victoria, Static Guard, and McCann's.

The physical assets are the manufacturing and distribution infrastructure spread across the US, Canada, and Puerto Rico. However, B&G Foods, Inc. is actively reshaping this, evidenced by recent divestitures, such as the Don Pepino and Sclafani brands in Q2 2025, and the Le Sueur brand in Q3 2025, with the Canadian Green Giant business also announced for divestiture.

Financial strength, or the ability to generate cash, is a critical resource, especially given the focus on debt reduction. For the first two quarters of 2025, B&G Foods, Inc. generated $70.6 million in net cash from operations (GAAP). This compares favorably to the $46.4 million generated in the first two quarters of 2024. At the end of Q2 2025, net debt stood at $1.957 billion.

The management team is a key, non-physical resource. Their experience is currently directed toward specific financial goals, namely deleveraging and margin expansion. The stated long-term target for adjusted EBITDA as a percentage of net sales is approaching 20%, with a goal for the leverage ratio to be closer to 5x.

Here's a quick look at some of the key financial metrics that illustrate the current resource generation and financial position as of late 2025:

The operational execution relies on the capabilities within these resources, which you can see reflected in segment performance and ongoing strategic actions:

• Divestiture of Don Pepino and Sclafani brands completed in Q2 2025.
• Divestiture of Le Sueur U.S. shelf-stable vegetable brand completed in Q3 2025.
• Announced divestiture of Canadian Green Giant business, expected to close late Q4 2025 or Q1 2026.
• Expected cost savings initiatives targeting $10 million in the second half of 2025.
• Q3 2025 Adjusted EBITDA margin was 16.0%.

The management team is actively using these resources to simplify the structure, which they believe will unlock better cash flow and a more efficient cost structure.

Finance: draft 13-week cash view by Friday.

B&G Foods, Inc. (BGS) - Canvas Business Model: Value Propositions

You're looking at the core reasons why consumers still reach for B&G Foods, Inc. (BGS) products, even as the company navigates significant portfolio reshaping. The value proposition centers on reliability, familiarity, and accessibility in the pantry.

Convenience and speed for consumers via shelf-stable and frozen products

B&G Foods, Inc. continues to serve consumers with a broad range of shelf-stable and frozen foods distributed across the United States, Canada, and Puerto Rico. This format inherently offers convenience, requiring minimal preparation time for everyday meals. While the company has been actively divesting certain businesses, like the U.S. Green Giant shelf-stable line and Green Giant Canada, the remaining core portfolio is built on these convenient formats. The full-year fiscal 2025 net sales guidance is narrowed to a range of $1.82 billion to $1.84 billion, reflecting the impact of these divestitures but maintaining a focus on the core convenience offering.

Trusted, recognizable heritage brands with long-standing consumer loyalty

The strength of B&G Foods, Inc. lies heavily in the deep consumer trust built over decades by its established brands. These are the names people look for when they want consistency. The portfolio includes many well-known staples that anchor consumer purchasing decisions. For instance, the Meals segment features brands like Ortega, a market leader in Mexican-style foods, and Cream of Wheat. The Specialty segment includes Crisco cooking oils and Polaner fruit spreads. This familiarity is a significant moat against newer entrants, even when facing volume challenges, as seen in the Q3 2025 base business net sales decline of only 2.7% excluding divestitures.

Diverse product portfolio offering one-stop-shop for multiple meal occasions

The company's portfolio spans several key food categories, allowing it to capture consumer spending across various meal times and needs. This diversity, even post-divestiture, is a key proposition. For example, in fiscal 2024, the portfolio was spread across four main segments, indicating a broad reach into the center store. The company's long-term strategic goal, following divestitures, is to achieve an adjusted EBITDA as a percentage of net sales approaching 20%, suggesting a focus on higher-margin, core lines that still cover multiple occasions.

Here's a look at the segment revenue distribution from fiscal 2024, which illustrates the breadth of the portfolio prior to recent sales:

Value-oriented pricing in a high-inflation environment for core staples

In an environment where consumers are sensitive to inflation, B&G Foods, Inc. offers core staples that provide perceived value. Management noted that consumption trends decelerated due to continued inflation sensitivity among consumers. The company has been managing this by using targeted pricing where appropriate and working to lap prior year's promotional activity. For example, in Q2 2025, the overall gross profit percentage was 20.5% of net sales, with adjusted gross profit at 21% of net sales. The company expects the second half of fiscal 2025 to show year-over-year growth in adjusted EBITDA, supported by cost savings initiatives, which helps maintain competitive shelf prices.

Quality and flavor solutions through the Spices & Flavor Solutions segment

The Spices & Flavor Solutions segment delivers quality and flavor enhancement, a critical component for at-home cooking. This segment saw material increases in commodity costs in 2025, particularly for black pepper and garlic, but management is addressing this through productivity initiatives in the factory and targeted pricing. In Q1 2025, this segment generated net sales of $91.7 million, a 4% decrease from the prior year, primarily due to softer volumes. This segment represented 21% of total revenue in fiscal 2024, highlighting its importance to the overall portfolio mix.

The segment's performance in Q3 2025 saw adjusted EBITDA of $70.41 million for the entire company, with an adjusted EBITDA margin of 16%, showing management's focus on profitability even amid volume softness.

• Q3 2025 Adjusted EBITDA: $70.4 million
• Q1 2025 Spices & Flavor Solutions Net Sales: $91.7 million
• FY 2025 Adjusted EBITDA Guidance Midpoint: $276.5 million

Finance: draft 13-week cash view by Friday.

B&G Foods, Inc. (BGS) - Canvas Business Model: Customer Relationships

B&G Foods, Inc. interacts with a broad base of customers across the United States, Canada, and Puerto Rico, serving retail grocery chains, mass merchandisers, club stores, and e-commerce platforms. The company also supplies foodservice outlets.

The relationship with major retail buyers is fundamentally transactional and high-volume, underpinning the company's top line. For the third quarter of 2025, net sales reached $439.3 million. The full-year fiscal 2025 net sales guidance was narrowed to a range of $1.82 billion to $1.84 billion.

For larger, more strategic customers, particularly within foodservice and private label agreements, B&G Foods deploys dedicated sales and account management resources. The company competes across several channels, including retail grocery, food service, specialty store, private label, club, and mass merchandiser distribution.

Interaction with the end consumer is largely indirect, relying on self-service purchasing through traditional retail shelf placement and increasingly, via e-commerce platforms. The foundation of this indirect relationship is brand-specific loyalty, which B&G Foods builds upon its diverse portfolio of over 50+ brands.

Investor relations communication centers on clear, actionable financial priorities, which directly impact the long-term health of the customer-facing business. Key themes include reshaping the portfolio to achieve higher margins and cash flows, and aggressively reducing leverage. The company has a stated long-term objective for base business net sales trends of plus 1%.

The focus on portfolio reshaping is evident in recent divestitures, such as Don Pepino, Sclafani, and Le Sueur U.S., and the announced sale of Green Giant Canada. The endgame of these actions is to create a more focused B&G Foods where Adjusted EBITDA as a percentage of net sales approaches 20%, and leverage moves closer to 5x. Progress on debt reduction is tangible; net debt was reduced to $1.957 billion at the end of the second quarter of 2025, down from $2.022 billion at the end of the second quarter of 2024.

Here's a quick look at the scale of operations and performance driving these customer-facing strategies for the 2025 fiscal year:

The company also emphasizes returning a meaningful portion of its excess cash to stockholders, having returned $1.50 billion since 2004.

The customer relationship strategy is supported by the breadth of the brand portfolio, which includes:

• Brands in the Specialty unit like Crisco and Clabber Girl.
• Brands in the Meals unit such as Ortega and Maple Grove Farms.
• The Frozen & Vegetables unit, which is currently being reshaped.

The Q3 2025 Adjusted EBITDA margin was 16.0% of net sales, showing sequential improvement from Q2 2025's 13.7%.

Finance: draft 13-week cash view by Friday.

B&G Foods, Inc. (BGS) - Canvas Business Model: Channels

You're looking at how B&G Foods, Inc. gets its products-from Ortega taco kits to Crisco oil-into the hands of the consumer as of late 2025. The distribution network is broad, relying heavily on established retail partnerships, though the company is actively reshaping its portfolio, which impacts channel focus.

B&G Foods, Inc. sells, markets, and distributes its portfolio of over 50 brands across the United States, Canada, and Puerto Rico using a multi-channel system. The sales organization is structured around these distribution channels, utilizing regional sales managers and key account managers.

Here's a breakdown of the key channels B&G Foods, Inc. utilizes to move product:

• Supermarket chains and grocery stores (primary route to market)
• Mass merchants and warehouse clubs (high-volume retail)
• Foodservice outlets (catering to institutional and restaurant demand)
• E-commerce platforms and direct-to-consumer (DTC) channels
• Independent brokers and specialty distributors for niche markets

The company sells its products primarily through broker sales networks to reach these various retail and foodservice partners. For instance, the broker sales network manages the actual sales execution at the retail level nationwide.

The overall financial context for these channels in fiscal year 2025 shows a company navigating a challenging environment. The revised full-year net sales guidance for fiscal year 2025 is between $1.83 billion and $1.88 billion. For the third quarter of 2025 alone, net sales were $439.3 million.

The performance across channels in late 2025 was mixed. For example, in the third quarter of 2025, management noted continued strength in specific channels like club and foodservice, even as overall base business net sales were down 2.7% excluding divestitures.

Here is a table summarizing the channel structure and related financial context, using the most granular data available:

The company is actively streamlining its portfolio, which directly impacts the revenue contribution of these channels. For instance, the divestiture of the Le Sueur U.S. brand in August 2025 removed approximately $36 million in trailing twelve-month net sales through the channels it served. Also, the Spices and Flavor Solutions segment, which flows through these channels, represented 20% of fiscal 2024 revenues, showing a key area of focus.

The strategy involves creating a more focused B&G Foods, Inc. that management believes will lead to adjusted EBITDA as a percentage of net sales approaching 20%, which is a key metric reflecting the efficiency of these channel operations.

You should track the Q4 2025 results to see the full impact of the 53rd week, which is expected to contribute 2-3% growth in that quarter, flowing through these established routes to market.

B&G Foods, Inc. (BGS) - Canvas Business Model: Customer Segments

You're looking at the core buyers for B&G Foods, Inc. as they navigate portfolio streamlining and focus on core brands through late 2025. The customer base is broad, spanning from the typical grocery shopper to large commercial operations.

The primary market for B&G Foods, Inc. remains the everyday consumer across North America. This group relies on the company for their pantry staples, seeking convenience and reliability in shelf-stable and frozen food options.

A significant portion of the customer base is defined by their price sensitivity. These are value-conscious consumers who prefer established, non-premium brands that offer consistent quality without a high price tag. This focus is critical as the company works to stabilize volume trends following periods of high inflation.

The commercial side of the business is substantial, involving foodservice operators and institutional buyers. Collectively, these customers represent a required segment of 21%-22% of B&G Foods, Inc.'s total sales. For fiscal year 2025, with net sales guidance narrowed to a range of $1.82 billion to $1.84 billion, this segment contributes roughly $382 million to $405 million in revenue.

The distribution network itself is a key customer group, consisting of retailers and distributors. B&G Foods, Inc. services these partners across the United States, Canada, and Puerto Rico. Management has noted that retailer inventory reduction has been a factor impacting sales, suggesting these partners are actively managing their stock levels.

Finally, specialized commercial and home users drive demand for specific ingredient brands. Bakers and home cooks depend on iconic ingredients like Crisco and Clabber Girl for their recipes. Crisco, for example, saw sales impacted by pricing adjustments reflecting lower soybean oil input costs in recent quarters.

Here's a quick look at the main customer categories and their context:

You can see the company is actively managing its customer relationships, especially with retailers, while continuing to serve its core household base. The focus on portfolio reshaping, including the announced sale of Green Giant Canada, is defintely aimed at creating a more stable platform for these customer segments going forward.

• Value-conscious buyers drive volume in center-store packaged foods.
• Institutional sales are a material part of the revenue base.
• The company markets products under brands like Ortega and Cream of Wheat.
• Portfolio streamlining aims for an Adjusted EBITDA margin approaching 20%.

Finance: draft 13-week cash view by Friday.

B&G Foods, Inc. (BGS) - Canvas Business Model: Cost Structure

The Cost Structure for B&G Foods, Inc. is heavily influenced by the inherent costs of food manufacturing and distribution, though recent portfolio streamlining efforts aim to improve efficiency. You see the pressure points clearly in the recent quarterly reports.

The cost of goods sold (COGS) remains a dominant factor, as evidenced by the gross profit margin. For the third quarter of 2025, B&G Foods, Inc. reported a gross profit of $99.0 million on net sales of $439.3 million, resulting in a gross profit margin of 22.5% of net sales. This margin, while slightly up from 22.2% in Q3 2024, still reflects the significant portion of revenue consumed by production costs.

Financing costs are also a material component of the structure due to the company's debt load. For the second quarter of 2025, the net interest expense was reported at $35.8 million. The company has been actively using proceeds from divestitures to reduce this debt, which helped lower Q3 2025 net interest expense to $37.3 million from $42.2 million in Q3 2024.

Input costs for raw materials and packaging present a persistent challenge, though the impact varies by segment. For instance, the Spices & Flavor Solutions business unit saw adjusted EBITDA decline due to higher raw material costs, specifically mentioning increases for garlic and black pepper. Conversely, in Q2 2025, the Specialty segment benefited from lower raw material costs for certain brands, including soybean oil for Crisco, and phosphates, and cornstarch for Clabberg Girl.

The Selling, General, and Administrative (SG&A) expenses are being actively managed through cost-saving initiatives. In the third quarter of 2025, SG&A expenses totaled $44.6 million, representing a 3.0% decrease year-over-year from $46 million in Q3 2024. As a percentage of net sales, this was 10.2% in Q3 2025, a slight increase from 10.0% in the prior year period.

External factors like trade policy and currency fluctuations add volatility to the cost base. The impact of tariffs and foreign exchange volatility negatively impacted Q3 2025 EBITDA by nearly $3.5 million, as per the required outline point. Year-to-date tariff impact for the first three quarters of 2025 totaled a negative $5.1 million. Foreign currency negatively impacted base business net sales by $2.8 million for the first three quarters of 2025.

Here's a breakdown of key cost-related metrics from the recent quarters:

B&G Foods, Inc. is pursuing several actions to mitigate these costs and improve the structure:

• Implementing a back-half $10 million cost savings initiative for Q3 and Q4 2025.
• Targeting an annual run rate of $15 million to $20 million in savings from productivity in COGS and accelerated SG&A savings.
• Portfolio simplification through divestitures, aiming for adjusted EBITDA as a percentage of net sales approaching 20%.
• Targeted pricing actions to recover incremental tariff costs, with full mitigation expected in Q4 2025.

B&G Foods, Inc. (BGS) - Canvas Business Model: Revenue Streams

You're looking at how B&G Foods, Inc. brings in its money, which is primarily through selling its portfolio of branded shelf-stable and frozen food products. This is the core of their operation, covering everything from Green Giant vegetables to spices and baking aids.

For the full year fiscal 2025, B&G Foods, Inc. has narrowed its net sales guidance to be between $1.82 billion and $1.84 billion. This guidance reflects the ongoing strategic reshaping of the portfolio, which includes recent sales of non-core assets.

The company evaluates its operating performance across four main segments. Here's a look at some of the reported figures from earlier in the year to give you a sense of the revenue flow:

The company's revenue generation isn't just from the main retail shelf. A meaningful portion comes from other channels, specifically foodservice and private label operations. These channels collectively account for about 21%-22% of total sales, and management noted that these areas performed reasonably well during the first quarter of 2025.

A key part of B&G Foods, Inc.'s current financial strategy involves generating proceeds from strategic divestitures of non-core brands to sharpen focus and reduce long-term debt. You can see this activity in the recent past:

• Completed sale of the Don Pepino and Sclafani brands in May 2025.
• Divested the Le Sueur U.S. shelf-stable vegetable product line in August 2025.
• Announced an agreement to sell the Green Giant and Le Sieur frozen and shelf-stable vegetable product lines in Canada in October 2025.

These divestitures had a measurable impact on reported numbers; for instance, the removal of Don Pepino, Sclafani, and Le Sueur accounted for approximately $10.3 million of net sales removed from the third quarter results. The company is definitely streamlining its brand lineup. Finance: draft 13-week cash view by Friday.