Rich Products acquires GLP Free Manufacturing

by Alice E. Gerard
Grand Island Dispatch, February 9, 2007

Rich Products has acquired Grand Island firm GLP Free Manufacturing, said Bill Gisel, president and CEO of Rich Products, in a Feb. 2 press release.

Terms of the deal were not disclosed. Susan Daubney, president of GLP Free Manufacturing, has joined Rich Products as a product specialist for gluten-free products. GLP Free Manufacturing Vice President Joan Pedlow, who is a registered nurse and dietitian, will join the company on a consulting basis with the title of category growth leader. They will be joined by Don Gibson, currently the corporate director of New Ventures Group (part of Rich Products Corporation), who will act as the category general manager.

GLP Free Manufacturing currently offers a product line that includes individually packaged frozen brownies, cookies, crispy treats and an Italian sandwich roll. Customers include high-profile national food service accounts, such as Disney World, and a number of Buffalo-based stores.

“Being a part of Rich’s provides a distinct competitive advantage and the infrastructure we need for rapid growth,” Daubney said. “Rich’s expertise and reputation in the food industry and, most importantly, in Western New York make this the ideal opportunity for us to expand our business, with the help of another local company.”

Daubney said last month that the demand for gluten-free products is enormous, as she discovered when GLP Free Manufacturing started selling its products in Disney World. “People from all over the country go to Disney World, so they go home and they walk into their local grocery store, and they say, ‘We really like these products.’ I’ve had grocery stores from all over the country asking to carry our product.”

One person who had been looking for quality gluten-free products was Mindy Rich, vice chairperson of Rich Products Corp. Rich, who has celiac disease, expressed enthusiasm about the new partnership with GLP Free Manufacturing. “It will be a great partnership. They will work with us to make sure more people have a chance to try wonderful products. We can expand and make more gluten-free products for those of us who can’t enjoy the kind of meals that we used to enjoy.”

“As someone with celiac disease, I know first-hand what a struggle it can be to find gluten-free products, not to mention great tasting ones. GLP’s products are excellent, and I’m excited that we will be able to develop even more great-tasting gluten-free choices,” Rich said.

Celiac disease is a genetic autoimmune digestive condition that damages the small intestine and interferes with absorption of nutrients from food. According to Pedlow, one in 133 people has the condition.

Among foods that a person with celiac disease must avoid are wheat, oats, barley, and any other grain that contains gluten, a protein that their intestinal systems cannot absorb. Rich said that adjusting to a gluten-free diet was difficult, “While there are some gluten-free products, there are not many that really taste good.”

Rich said that she was introduced to the products that GLP Free Manufacturing offers when she went out for lunch one day with Daubney and Pedlow. “I ordered a cheeseburger without a bun,” Rich related. She said that she was surprised by Pedlow and Daubney, who came equipped with a gluten-free Italian sandwich roll. “That was the first quality bun that I’ve had in a long time.”

Rich Products also anticipates a large growth in the market for gluten-free products. It estimates that market growth will reach $1.7 billion by 2010. According to the press release, GLP Free Manufacturing “is considered by many as the leader in gluten-free taste and customer satisfaction, with its sandwich roll recently placing second in Stagnito’s ‘Best New Products’ for 2006.

Gluten-free foods have been getting attention from the government as well. The federal Food and Drug Administration is currently in the process of proposing a rule to define “gluten-free” foods to be used in “voluntary labeling” of these foods, according to a notice in the Jan. 23 issue of the Federal Register. The purpose is “to ensure that individuals with celiac disease are not misled and are provided with truthful and accurate information with respect to foods so labeled.” The proposal is now in a 90-day public comment period.

Daubney talked in January about ensuring that the food products that her company offers are safe for persons with food sensitivities to eat. She explained that she and Pedlow have worked hard to make sure that customers’ specific dietary needs are met and that there is no cross-contamination from contact with foods that contain gluten.

Rich Products considers the acquisition of GLP Free Manufacturing to be an opportunity for Rich Products to invest in Western New York, while, at the same time, continuing to produce more healthy products.

“This partnership provides Rich’s with access to high-quality, gluten, lactose, trans-fat, and peanut-free bakery items tailored for people with celiac disease,” said Gisel. “We are pleased to add such a dynamic, health-focused company to our family of businesses.”

Rich Products sells its products all over the United States and in approximately 80 other countries, including China, Russia, Thailand, Israel, Mexico, and Brazil. It produces a variety of non-dairy frozen foods, including whipped toppings, creamers, and specialty desserts. Annual sales exceed $2.4 billion for the company that employs more than 6,000 persons worldwide.