Investors take Matt's Cookies to new level, aim for new packaging and markets
For about 35 years, Matt's Cookies has been such a favorite on grocery store shelves that the Wheeling baker has been producing about 300,000 cookies daily with about a dozen varieties, from chocolate chip cookies to fig bars.
But the longtime family business has been acquired by investors who are looking to make some changes that could boost revenue and production and open new markets. Still, these investors say they're not looking to change the family recipe that has made it popular.
"We bought the company because we loved the cookie so much, quite honestly, it was as simple as that," said CEO Michael Halverson, 55, of Kildeer.
Halverson is part of the investment firm, Chicago-based City Capital Ventures LLC, that acquired Matt's Cookies' parent company called Cookie Specialties in May. City Capital also is a major investor in Diedrich Roasters, a coffee company in Ponderay, Idaho.
Now, Halverson is leading some changes at Matt's by giving its package a facelift, opening new markets, appealing to more consumers, and adding additional flavors by early next year.
Industry experts like what they see in the suburban cookie maker. The company already was rated among the premium cookies for its distinct taste and packaging, said Bill Bishop, chairman of Barrington-based Brick Meets Click, a consulting firm specializing in the grocery industry.
"From a retailer's point of view, they like it because it provides a real choice against the megabrands," Bishop said. "It has a real local flavor, so we hope they don't tamper too much with its legacy and make it look like every other cookie out there."
In 1980, Matt's Cookies was founded by Grant Pierce, who named the product after his son, Matt. Another son, Blake Pierce, is vice president of operations. The company was about to be acquired a couple of years ago, but the deal fell through. That's when Halverson and other investors of City Capital talked with Pierce.
"The family all works here," Halverson said. "There's a lot of knowledge and experience here."
While the new owners have been looking at some changes, they intend to keep the company at the Wheeling headquarters. They also intend to keep the family recipe with natural ingredients, said Halverson.
"We don't need to fix the cookie," Halverson said. "We love it the way it is."
Halverson also hired a new marketing manager, accounting support and a plant manager.
"Otherwise, I think we're adequately staffed for the next chapter," Halverson said. About 30 employees bake about 300,000 cookies a day.
That next chapter includes both internal and customer-focused changes.
So far, a public relations firm was hired to help create buzz around the brand. This also includes having the company become active on Twitter, Facebook and other social media to engage customers. A newly designed website is expected to debut later this year, he said.
In addition, the company has sent out so-called brand ambassadors, who traveled around the city and suburbs to hand out 11,000 samples to random people.
And while research has shown their typical customer is the male Millennial, the company aims to reach others.
Matt's can be found at a variety of grocery stores, such as Mariano's, Wal-Marts, Targets and others. It's also available in certain regions, including the Chicago and suburban area, Minneaplis, St. Louis, Detroit and parts of Iowa. Next, they aim to target natural food or health food stores, he said.
"It's not so much as a geograhical plan, but to distribute more in those marketplaces," said Halverson.
In addition, the company plans to debut its new package design early next year, spinning off the well-known gingham look.
"We want the cookie to make a statement on the shelf," Halverson said. "It's easy to see and really pops on the shelf."
That package also will be reduced from 16 ounces to 14 ounces with slightly smaller cookies.
"Most competitors have 7 ounces to 10 ounces of cookies in the package," said Halverson.
"And there's been very little margin in this business, so some changes were needed. We're still giving the customer more cookies than the others. We're still a heckuva value."
Matt’s Cookies
Business: Cookie bakers
Founded: 1980
Founder: Grant Pierce
Owner: City Capital Ventures LLC
Leadership: Michael Halverson, CEO
Headquarters: Wheeling
Products: 11 different cookies and fig bars, with 2 more coming soon
Production: about 300,000 cookies baked per day
Employees: 30
Website: www.mattscookies.info
Twitter: @Matts__Cookies