While Marson Foods has made its name so far producing waffles, the company sees its greatest potential in another product: waffle sandwiches.

“The sandwich carrier is probably the biggest opportunity we have right now,” said Dave Marson, co-founder of the Carson City, Nev.-based company. “The waffles were the original theme, but as we got into it, pretty quickly there was such a demand for waffle sandwiches that we see that as probably the bigger market. You’re talking a couple hundred million dollars.”

The company is set to launch its Gigi’s Kitchen brand of sausage and chicken waffle sandwiches into retail and club stores in September. 

“We can hit and compete with all the main players,” he emphasized. “We can meet the cost requirements because of our automation.”

There’s no big US player in the waffle sandwich market, said Tyler Wallace, chief operating officer, leaving white space for Marson Foods to fill. 

“There’s no capacity for it; it’s all a co-manufactured product,” he explained. “So by us controlling the brand, controlling our own manufacturing, we have pricing power. We can pass the savings off to the consumer.”

This is especially valuable at a time when the cost of food is a top concern for consumers, Marson said. Still, as a value-added product, Wallace noted that Marson Foods can sell the waffle sandwich at an affordable price.

“We have a premium product at the status quo price,” he said. “I think people are going to say, ‘This is something new. This is something better.’ ”

Sandwiches may be Marson Foods’ biggest growth opportunity, but it’s still focusing plenty of attention on its traditional waffles, looking to capitalize on the burgeoning better-for-you (BFY) market. The company is in the process of reformulating its Wow Wow! Classic Waffles — available in Sweet Vanilla, Strawberry Delight and Maple Syrup flavors — to hit on a variety of BFY attributes, with plans to launch the revamped waffle in early 2025.

“Being that first snack to market that meets some of those dietary needs, that [consumers] don’t mind eating, is important to us,” Marson said.

Reduced sugar, for example, is a top concern for many health-conscious shoppers, he noted. 

“It’s really the war on sugar,” he said. “The guy who can make a zero-added-sugar waffle that tastes good and that the kids will eat is going to do really well.”

Marson Foods is also considering incorporating more whole and ancient grains, adding more protein and opting for oils viewed more favorably by consumers. 

“It’s establishing that criteria that we want to go after, and then keeping those criteria general enough that it meets more than one need,” Marson explained. 

At their core, however, waffles are still an indulgent product, and Marson Foods is staying true to that. The company plans to eventually have dual lines: one for indulgent waffles and the other for BFY ones. 

“It’s all about having those two product lines,” Wallace said. “The indulgent, liege waffle is true to the culture. In Belgium, those waffle shops are everywhere. To have a truly authentic product, you need to have that line, while the BFY offerings allow us to be present in a category that we know very well, and remain able to adapt to rapidly changing customer nutritional demands.”

On the indulgent side, Dave Marson sees lots of potential in filled waffles. 

“We’re going to have the ability to do a filled waffle where you put in some sort of filling like a berry filling, or you can go with a savory one that potentially has cheese,” he said. “There’s just a lot of opportunity there.”

Whether it’s a filled waffle, BFY waffle or breakfast sandwich, Marson Foods is able to quickly develop new products and respond to the category’s latest trends thanks to the speed of its R&D team. 

“We’ve had products where today we’re talking about it, and tomorrow we’re prototyping it,” Wallace said.

This agility is a big advantage over larger companies, where it often takes a long time for a product to go through development before finally hitting the shelf.

“That time period could be two years [for large companies], whereas we could do it in a couple months,” he said. “With how dynamic this industry is, in some cases, you may miss the boat unless you’re quick and reactive.”

Marson Foods’ R&D is done both in-house and in collaboration with customers’ R&D teams.

“Especially with traditional waffle products, because they’re imported, most of these companies don’t own the recipes,” Wallace explained. “So, we will work backwards and reverse-engineer the product that they currently have and build the recipe.”

Marson said he’s made just about everything over the years, and he wants versatility to be the backbone of Marson Foods. While waffles and waffle sandwiches are the focus today, nothing is out of the question tomorrow. 

“This plant was really designed to look at food as a category,” he said. “We could have two waffle lines, two French toast lines — it’s what the market wants.”

This article is an excerpt from the August 2024 issue of Baking & Snack. To read the entire feature on Marson Foods, click here.