Cracker Maker Firehook Bakery Bought By PE Fund Forward Consumer Partners

Newly launched CPG Private Equity firm Forward Consumer Partners has made its first acquisition, taking a majority stake in Virginia based artisanal cracker maker and baking company Firehook Bakery.

The company’s cracker line had revenues of $56 million, according to AC Nielsen XAOC data for the trailing 52 weeks. It’s the top artisanal cracker in the country, according to a release announcing the acquisition.

The company was started as a neighborhood bread bakery by Pierre Abushacra, a Lebanese immigrant in Alexandria, Va. in 1992; it still has bake shops in Alexandria and in Washington, D.C.’s DuPont Circle neighborhood.

Maura Mottolese, an experienced CPG leader who has been the CEO of brands like Cholula Hot Sauce and Tate’s Bake Shop, will become CEO of Firehook. Forward Consumer Partners Managing Partner Matt Leeds will be Chairman, while Abushacra will remain a board member.

“In identifying a partner to shepherd Firehook’s next phase of growth, it was essential to find a team who could support our mission of continuing to build an exceptional business rooted in quality and transparency,” said Mr. Abushacra, in a release. “Forward shares our vision and, most importantly, our values. Their track record of helping grow iconic consumer brands makes the Firm an ideal partner as we continue to propel our business forward.”

The acquisition once again puts Mottolese and Leeds in the familiar position of CEO and lead investor; in that configuration the pair were able to acquire and sell the Cholula business to McCormick for $800 million in 2020, while they were both affiliated with investment group L Catterton.

In December, Leeds announced the closing of Forward’s first, $425 million fund. He said he had been looking for another opportunity to work with Mottolese.

“We’ve been looking for a project to collaborate on for years,” Leeds said. “It’s a testament to the partnership we have.”

But Leeds had other long-term plans involved in the acquisition. He said his interest in Firehook dates back seven years, to when he met Abushacra at a Fancy Food show in San Francisco. He said the investment reflects his desire to invest in “brands that make beloved products.”

Firehook, named for the hook-shaped tool used by bakers to grab pots from firepits, also provides a corporate setup similar to the Tate’s business, according to Mottolese. As with the Tate’s bakery and store in Southampton, NY, Firehook’s brick-and-mortar locations provide both a touchpoint for consumers and testing ground for products.

“These are beautiful equity builders for the brand,” Mottolese said. “They’re a fabulous way to connect with our most loyal consumers – and to test and learn.”

Right now, Firehook’s crackers sit primarily in the store perimeter, near premium deli, cheeses, and dips like hummus. Packaged in a hard, clear, resealable plastic container, they are organic, non-GMO and manufactured in facilities owned by the bakery.

“The current package is very premium,” Leeds said. “It enables us to show the product in that perimeter set, really helps to tell that ingredient story.”

Still, expansion is the game. Right now the brand, sold in about 10,000 doors, has an ACV of 12 – largely concentrated in the grocery channel.

“As we innovate, we see an opportunity for the brand to penetrate the far corners of the store,” Mottolese said.

Firehook has about 200 employees and expects to hire more, Mottolese said. The company is bringing on two early key hires in veterans Terry Bigham (formerly of Cholula, Tate’s Bake Shop, and Carbone) as Chief Growth Officer and Ellen Howse (formerly of Godiva, Hello Products, and Dewey’s Bakery) as Chief Marketing Officer.

Firehook was advised by Novelty Hill Capital and Stein Sperling. Forward was advised by Houlihan Lokey and Kirkland & Ellis.