57th Street General Acquisition Corp., owner of Crumbs Holdings LLC, announced a partnership with Dawn Food Products Inc. to be the exclusive consolidated supplier of raw materials for its contract bakery manufacturers throughout the country.
Dawn Food Products is a full-service bakery supplier with an expansive distribution network consisting of 26 company-owned facilities across North America as well as internationally.
“Partnering with Dawn Foods is a natural fit for our business model, said Jason Bauer, co-founder of Crumbs and CEO and president of 57th Street, in a press release. “It gives our contract manufacturers the supplier consistency we need to support our aggressive growth plan and affords us greater control over cost of goods sold through the increased transparency of the price of goods entering our bakery partners. In addition, this relationship will result in improved product quality through tighter inventory control while providing a sound foundation for our supply chain by ensuring a reliable stream of required ingredients.”
57th Street also recently released financial results for the second quarter and year-to-date periods ended June 30, 2011. As compared to the year-ago period, net sales increased 30.1 percent to $10.3 million, with gross profits growing 27.5 percent to $5.9 million. Comparable-store sales decreased 6 percent. Year to date, net sales increased 33.1% to $20.0 million, and gross profits increased 30.4 percent to $11.6 million. Comparable store sales decreased 2.1 percent.
During the second quarter of 2011, the company opened one store in New York City. As of June 30, 2011, there were a total of 35 stores opened across six states and the District of Columbia. The company aims to have 200 stores in operation by the end of 2014.
“The decline in comparable store sales was largely a function of our small store base and our intent to cannibalize several of our highest performing locations,” Bauer said in a press release. “For that reason, we continue to believe that total revenue growth, store operating week expansion, and store-level returns are a more accurate measure of our progress.”