Love’s Bakery returns to local ownership

The new owners will be the president and other officers of the 157-year-old company

STORY SUMMARY »

Daiichiya-Love's Bakery is reverting back to local ownership after 40 years.

Managers of the 157-year-old bakery agreed Tuesday to purchase the largest commercial supplier of fresh-baked bread from its Japan-based owner, First Baking Co. Ltd.

Terms of the sale, expected to close in 60 days, weren't disclosed.

The managers have created a new limited liability company with Mike Walters, the majority stakeholder, continuing as president and chief executive of the company, whose name will revert back to Love's Bakery Inc.

Also retaining a minority stake in the bakery is Byron Chong, vice president & director of sales and marketing; Alan Yamada, director of administration; and Jean Hagi, director of human resources.

The company will retain its 349 employees and implement cost-savings measures to improve operational efficiencies.

---

FULL STORY »

The Japan-based owner of Daiichiya-Love's Bakery has agreed to sell Hawaii's largest commercial supplier of fresh-baked bread to its local managers.

The managers signed a stock purchase agreement Tuesday with First Baking Co. Ltd. of Japan to purchase the 157-year-old company and preserve the jobs of its 349 employees.

Terms of the sale, expected to close in 60 days, weren't disclosed.

"Our employees are our greatest asset," said Mike Walters, who has been Love's president since June 2002. "The bakery's unbroken 157-year legacy of producing fresh, quality bread in Hawaii is worth preserving."

The managers have created a new limited liability company with Walters, the majority stakeholder, continuing as president and chief executive of the company, whose name will revert back to Love's Bakery Inc.

Other 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.

The acquisition plan was led by Warren Luke, CEO and chairman of the board of Hawaii National Bank.

Other key individuals in the deal include U.S. Sen. Daniel Inouye, ILWU Local 142 Secretary Treasurer Guy Fujimura, and Hawaii Food Industry Association President Richard Botti.

First Baking Co., which bought the bakery in 1981 from Continental Baking Co., offered Walters the option of sole ownership last May, but he decided to offer his managers a minority stake in the business. The company informed the bakery's employees of the acquisition in June and is considering implementing an employee-stock ownership program in the long term.

"It's actually pride in ownership -- it's back in the hands of Hawaii," Walters said.

The new ownership has created a revitalization plan to streamline the business and create a long-term strategic distribution plan intended to reduce shipping costs to the neighbor islands. The plan calls for capital investments, including in new boilers and air compressors and upgrades to its Oahu and neighbor island delivery fleet.

The company is planning to invest about $10 million over the next five years in distribution bakery operations, Walters said. The primary objective is to control the cost of ingredients and energy.

Love's has 77 distribution routes, including 27 routes on the neighbor islands.

The bakery was established in July 1851 by Robert Love and locally owned and operated until 1968. It produces more than half a million pounds of baked products weekly for grocery stores, military bases, restaurants, schools, and hospitals statewide under the Love's, Roman Meal and Milton's brands.