Bob's Red Mill CEO on achieving employee ownership

October is Employee Stock Ownership Program (ESOP) Month, and Snack Food & Wholesale Bakery Senior Editor Liz Parker Kuhn was able to touch base with Bob's Red Mill CEO Trey Winthrop on the subject.

Bob’s Red Mill was an early adopter of ESOP in 2010 when the late Bob Moore, the company founder, transferred ownership to his employees. The company has been 100% employee-owned for the past four years and is one of only 8,000 U.S. businesses to do so. This decision has ensured that even after Moore's passing, the company remains unchanged and committed to the values he instilled—wholesome foods, quality, community, and sustainability—without missing a beat.

Winthrop was at the helm of Bob's Red Mill during Moore's passing and was able to leverage ESOP as a tool to ensure the heart of the company remained steady even during transition.

Liz Parker Kuhn: How did Bob’s Red Mill’s ESOP get started?

Trey Winthrop: Our founders, Bob and Charlee Moore believed that sharing the success of the company with the people who helped build it was just the right thing to do. They also wanted to ensure Bob’s Red Mill continued in perpetuity and remained an independent company. On February 15, 2010, Bob’s 81^st birthday, Bob and Charlee established the Employee Stock Ownership Plan (ESOP) and set that plan in motion.

LPK: How did the company become 100% employee-owned?

TW: Achieving 100% employee ownership in 2020 was the culmination of a long-term vision. Through a series of complex financial transactions over 10 years, I had the privilege of helping Bob realize his and Charlee’s dream to become 100% employee-owned. It is my proudest professional moment. I know you will understand why this moment is even more profound with Bob’s passing earlier this year.

LPK: Has Bob’s Red Mill experienced any labor challenges either before or after the company transitioned to being 100% employee-owned?

TW: Like other manufacturing companies, we are experiencing a labor shortage. There is an absence of programs at the high school level that encourage a career in manufacturing or the trades. Considering how many high school students are taking a gap period after graduation, this is a wasted opportunity. In discussion with leadership at a local community college, we agree that educational institutions and businesses need to do a better job attracting rising graduates to the manufacturing industry. The ESOP does help us navigate this challenge. That spirit of employee ownership supercharges our team, empowering them to share their ideas and inspiring them to continue growing with Bob’s Red Mill.

LPK: Can you speak about the ESOP both as the CEO of Bob’s, plus the former CFO?

TW: I have been at Bob’s Red Mill for nearly 20 years, and I had the good fortune to work alongside both Bob and Charlee for 15 of those 20 years. Moving up through the ranks from staff accountant to CFO to CEO, I got a bird’s eye view of what our founders were trying to accomplish. As the CFO, I was heavily involved in structuring the plan to ensure future financial stability for the Company and for the employee owners and their families who were counting on it. Through a financial lens, I could clearly see the benefits of the ESOP. But in my heart, I could feel the power of employee ownership igniting a fire within our employee owners to do more, to be better, and to take pride in their daily work.

Now I have the honor of being Bob’s Red Mill’s CEO. Our employee owners are the subject-matter experts, and leadership relies on their expertise for innovation, ingenuity and ideation. As employee owners, we own our jobs rather than rent them. From driving operational improvements to launching new product lines, their involvement and commitment are unparalleled. Shared ownership means a shared reward. The ESOP has been one of the most powerful drivers of our growth and innovation.

LPK: How did you leverage ESOP as a tool to ensure that the heart of the company remained steady after Bob Moore’s passing?

TW: At Bob’s Red Mill, kindness matters. It always has, and it always will. With our core values of respect, teamwork, accountability and determination to guide us, we will remain true to the essence of who we are. We inspire joy with wholesome foods, and it shows in everything we do. The root of our independence is grounded in employee ownership, and we are fiercely protective of that. I am honored to carry the legacy of Bob and Charlee forward as we continue operating with the same mission and integrity that Bob instilled in the company. Employee owners are proud to uphold that legacy as well and will keep the heart of Bob’s Red Mill beating strong into the future.

LPK: How might programs such as the ESOP increase morale, loyalty, and/or retention among employees?

TW: An ESOP fundamentally changes how employee owners view their roles within a company. Employee owners feel a deeper connection to the company’s success and are more motivated to contribute to its growth. This sense of ownership fosters pride and accountability, which naturally boosts morale. Employee owners know that their daily work directly impacts their financial future, creating a greater sense of loyalty and commitment. Employee-owned companies have 10% higher profit margins, 10% higher job satisfaction rates, and retirement accounts that are 10 times higher than their peers working in non-employee-owned companies. Plus, employee-owned companies strengthen the fabric of the economy within the communities where they live, work and play. ESOPs are a win-win-win for the company, its employee owners and the community.