Edward L. Kaplan, ’71, New Venture Challenge Winner Simple Mills Acquired by Flower Foods for $795 Million

Katlin Smith pitching at the 2014 Edward L. Kaplan, ’71, New Venture Challenge.

The $795 million acquisition represents one of the largest exits by a Polsky Center startup

Founded in 2012, Simple Mills offers nutrient-dense crackers, cookies, snack bars, and baking mixes made with simple, natural ingredients. Its founder, Katlin Smith, got the idea after traveling extensively as a consultant. With only unhealthy snacking options available, her food intake was having an impact on her health. She decided to clean up her diet and remove processed foods and sugars, and it made a huge difference.

Inspired by the impact it had, she started exploring how to bring people healthier snacking options. She went into her own kitchen and started working on different recipes – first landing on a baking mix. Over time she expanded the offerings to include crackers, and then cookies. Now, the company has more than 40 different products.

The company has seen rapid growth since its launch. It is now found in over 30,000 stores nationwide and generated an estimated $240 million in sales in 2024.

“She’s a force of nature,” said Steven Kaplan, Neubauer Family Distinguished Service Professor of Entrepreneurship and Finance at the University of Chicago Booth School of Business and Kessenich E.P. Faculty Director of the Polsky Center for Entrepreneurship and Innovation, in an interview with Crain’s Chicago. “She’s done an awesome job. She saw the wave toward health and gluten-free foods early and caught it.”

The acquisition highlights the remarkable success that Simple Mills has achieved since its founding, but for Smith, who will stay on and lead the company, it represents the start of something new.

“This transaction marks the beginning of a new phase of growth for Simple Mills,” said Smith in a press release. “I’m extremely proud of our talented team and the strong brand we’ve built. With Flowers’ resources, we’ll be well positioned to broaden distribution, accelerate innovation, and amplify brand awareness while advancing our mission.”

Before becoming the market leader that it is today, Simple Mills took part in the 2014 Edward L. Kaplan, ’71, New Venture Challenge (NVC). The experience proved to be invaluable, as it helped reshape Simple Mills and build a strong foundation for growth.

“The Polsky Center and the NVC were instrumental in shaping the trajectory of Simple Mills,” said Smith. “One of the most pivotal moments was when Waverly Deutsch, an advisor, helped me reframe the potential of the business. She encouraged me to think beyond becoming a small gluten-free baking mix brand and instead consider being the next Betty Crocker. That shift in perspective set my sights on bigger goals.”

The NVC also helped refine her approach to selling Simple Mills to investors.

“Through the program, I worked with seasoned advisors to develop my investor deck, present to investors in multiple rounds, iterate on my ‘why,’ and build a compelling story,” she said. “I vividly remember sitting with Bob Rosenberg for hours as we perfected my elevator pitch. Fun fact – I used that pitch for years!”

Beyond the direct support, Smith said the Polsky Center provided invaluable connections.

“The program introduced me to a network of incredible people,” she said. “Booth students like Jessie Yu, Arin Aghazarian, Hiral Arges, and Angie Dobrofsky were integral in helping Simple Mills get off the ground. Additionally, the Polsky Center connected me to potential investors, some of whom became early supporters of the business.”

The entire experience taught her some valuable lessons, which helped her turn into the leader she is today.

“One of the most important early lessons I learned was how to embrace and lean into fear,” she said. “Courage often feels like fear but with action behind it. I learned not to let fear overrule my decisions and to focus on progress over perfection.”

Another crucial takeaway for Smith was the importance of adaptability and continuous learning.

“One of the best pieces of advice I received was from Waverly Deutsch, who described entrepreneurship as one of the most ‘downwardly mobile professions,’” Smith said. “She explained that as your company grows, it will outpace your initial skillset, meaning continuous learning is critical.”

Just like Simple Mills, the NVC has grown since 2014. Smith’s first place prize was $30,000, while the 2024 first place winner FreshX took home $1M. For students and entrepreneurs looking to achieve similar success, Smith has a few pieces of advice.

“Be receptive to feedback and don’t shy away from areas where you feel inexperienced,” she said. “Just because you’re not naturally skilled at something today doesn’t mean you can’t learn and grow into it. Every stage of entrepreneurship brings unique challenges, and a willingness to adapt and evolve is key to long-term success.”

This mindset, Smith explained, helped her navigate the significant shifts required to grow from launching a small startup to managing a $240 million brand. “Building a $2 million brand demands a different approach than scaling to $240 million. Collaborating with a team of five is vastly different from managing a team of 110.”