Company name to revert back to “Love’s Bakery” later this year

Written on July 22, 2008

Honolulu  — Hawaii’s last large commercial supplier of freshly baked bread has once again become locally owned. Local management of Daiichiya-Love’s Bakery, Inc. today purchased the iconic 157-year-old bakery from its parent company, the Japan-based First Baking Company, Ltd.

“I would like to personally thank Mr. Takashi Hosokai, Senior Vice President of First Baking Company, Ltd. and Chairman of the Board of Daiichiya-Love’s Bakery, Inc., for this opportunity to return our bakery to local ownership,” said bakery president Mike Walters, who has managed statewide operations since June 2002. “This agreement will preserve the jobs of our 349 employees and our ability to produce freshly baked bread right here in Hawaii, reducing our state’s reliance on imported goods.”

Walters also acknowledged Warren Luke, CEO and Chairman of the Board of Hawaii National Bank, for his encouragement and support of efforts to purchase the bakery. Luke said: “Hawaii National Bank is happy that we are able to help a kamaaina company like Love’s Bakery return to local ownership, preserving hundreds of local jobs, a valuable contributor to our state’s economy and a local tradition.”

Other individuals who were key to the successful purchase include U.S. Senator Daniel K. Inouye, ILWU Local 142 Secretary Treasurer Guy Fujimura, and local attorneys Steve Okano, Greg Sato and Eric Yamagata.

First Baking Company, Ltd., which purchased the bakery in 1968, approached Walters last May with an opportunity to buy the business. In June, the bakery’s employees were informed of the pending purchase during an all-staff meeting that temporarily shut down operations so that all team members, including those based on Neighbor Islands, could simultaneously hear the news.

“Our employees are our greatest asset,” Walters said. “We strongly felt that our employees deserved to be the first to know our intentions to bring ownership back home to Hawaii. We wanted to assure our team members and their families that their jobs are secure. Our plans have been positively received by our employees, customers, franchise partners and union management. We maintain a strong and mutually respected relationship with the ILWU.

“The bakery’s unbroken 157-year legacy of producing fresh, quality bread in Hawaii is worth preserving. We enjoy tremendous brand loyalty in the Islands, demonstrated by the dominant market share of the Love’s, Roman Meal, and Milton’s brands. By buying Love’s Bakery products, local residents know that they are supporting a friend. We are committed to revitalizing our operations and continuing that tradition for another 150 years.”

Under a new limited liability company (LLC) created by local management, Walters will become the President & CEO of the new Love’s Bakery. Executive officers will include Byron Chong, Vice President & Director of Sales and Marketing; Alan Yamada, Director of Administration, and Jean Hagi, Director of Human Resources.

A “Revitalization Team” consisting of these and other local management members, will implement efficiency measures. Many capital investments are planned, including but not limited to the addition of new boilers and air compressors, and upgrades to its fleet on Oahu and the Neighbor Islands. A long-term strategic distribution plan is aimed at substantially reducing distribution expenses to the Neighbor Islands. Recent utilization of the Hawaii Superferry to Maui has contributed to the improved sales efficiencies as well reducing distribution expenses. A focus of the plan is also to elevate public awareness about the amount of frozen bread now being shipped from the Mainland and distributed in the state.

Celebrating 157 years in operation, the bakery has become part of the very fabric of Hawaii’s way of life and local heritage. The bakery produces more than half a million pounds of baked products each week for distribution to grocery stores, military bases, restaurants, schools, and hospitals across the state. With the exception of a few smaller “niche” bakeries, Daiichiya-Love’s Bakery remains the only large commercial, “high speed” bakery producing freshly baked bread in Hawaii. Without it, most bread would consist of frozen bread.

Established in 1851, Love’s Bakery is the largest wholesale baker of freshly baked bread in Hawaii. Today, the bakery is an active member of the community and the Hawaii Food Industry Association. It remains the only “high speed” bread bakery in Hawaii and provides daily production of fresh bread, roll and cake varieties under the Love’s, Roman Meal, and Milton’s brands. Additionally, the bakery produces and distributes the majority of all major grocery stores’ private label brands. The company’s bakery facility is located on Oahu and has branch operations on the islands of Kauai, Maui, the Big Island (Hilo and Kona), and Molokai. It also maintains nine thrift store outlets throughout the state.