Weary consumers’ quest for comfort foods helps growth of Sonoma County’s SmashMallow
Sales growth for SmashMallow, a Sonoma-based maker of marshmallows, gummy and crispy snacks from natural ingredients, is attributed to retailers’ trimming their selection during the pandemic and consumers’ wanting comfort foods reminiscient of better times.
The company, also known as just Smash, debuted on the Inc. 5000 national list of fast-growing companies at No. 3,954 with 79% revenue growth over 2017–2020, the magazine’s ranking metric. In March, SmashMallow debuted at No. 193 of the 250 companies on the publication’s second annual Inc. 5000 Regionals: California list, with 78% revenue growth in 2017–2019, that list’s qualifying period.
Stephanie McGregor, general manager, said the coronavirus pandemic forced many brick-and-mortar retailers to rethink their in-store strategy and assortment. That, she said, has impacted many brands’ ability to gain new store distribution and store expansion and resulted in a lot of retailers “rationalizing” what’s on their shelves to focus on execution and optimizing resources internally.
“Being a nostalgic brand, SMASH is perfectly positioned to be a product that people have reached for in times like the pandemic as they’ve looked for ways to get creative at home and connect with their families,” McGregor told the Business Journal by e-mail. “We certainly have seen a rise in the baking usage and expect a very large summer s’more season as people return to travel and enjoying the outdoors (whether away from home or in their own backyard).”
The company expects consumers will be eager to return to pre-pandemic “norms,” but some current behaviors such as preparing meals at home are anticipated to become permanent.
SmashMallow is a 4-year-old venture by Sonoma Brands, a food and beverage investment firm started by Jon Sebastiani soon after the sale of the Krave jerky brand in 2015 for $232 million. Sebastiani bought back the brand last year from Hershey for an undisclosed amount.
Jeff Quackenbush covers wine, construction and real estate. Before the Business Journal, he wrote for Bay City News Service in San Francisco. He has a degree from Walla Walla University. Reach him at jquackenbush@busjrnl.com or 707-521-4256.
