B&G Foods, Inc. (BGS) CEO David Wenner joined the show and how they are handling the strategy that smaller companies buy brands from larger companies to build them into bigger brands with higher growth rates was discussed. BGS specializes in buying cast off brands and turning them around. They have great brand equity and great margin structures. BGS is handling the task of passing on higher costs according to Wenner, they had problems in 2005 but in 2006 they held their own and are improving margins with pricing against the cost. Jim called BGS an archetypical stock that does well in any environment.
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