Hormel Nears Deal to Buy Planters Brand From Kraft Heinz -- Update
2021年2月3日 - 4:30AM
Dow Jones News
By Cara Lombardo and Annie Gasparro
Kraft Heinz Co. is nearing a deal to sell its Planters snack
business to Skippy peanut butter owner Hormel Foods Corp.,
according to people familiar with the matter.
A deal, valuing the century-old brand at around $3 billion,
could be announced as soon as next week, assuming the talks don't
fall apart, the people said.
Planters primarily sells nuts and snack mixes, with labels
featuring the tophat-wearing and monocled Mr. Peanut mascot.
In addition to its eponymous chili and deli meats, Austin,
Minn.-based Hormel sells other grocery items and protein-centric
foods including Skippy and Justin's nut butters. The company, which
has a market value of about $25 billion, has been an active
acquirer in recent years as it diversifies. A deal for Planters
would be by far its largest to date.
Kraft Heinz, the product of a 2015 merger of the two well-known
food companies, has been divesting brands after it struggled to
keep up with shifting consumer tastes. The maker of Heinz ketchup
and Oscar Mayer deli meats has said the moves will help the company
simplify its business and focus on its most promising brands.
Planters was founded in 1906 by two Italian immigrants in
Wilkes-Barre, Pa. Kraft Heinz in recent years had seen opportunity
for the brand, given that it fit the trend toward low-carb,
high-protein snacks. But efforts to expand it have been
hit-and-miss and it was one of six brands whose lowered outlook led
to a $290 million impairment loss last summer.
Kraft Heinz had net sales of just under $1 billion in its nuts
and salted-snacks segment in 2019, the last full year the company
has reported. It is set to report fourth-quarter results Feb.
11.
At the beginning of the pandemic, sales of pantry staples
surged, giving a jolt to classics that had fallen out of favor with
consumers. But as that demand wanes, deal making in the sector has
picked up, with companies back to retooling their portfolios to
meet changing tastes.
Kraft Heinz in September agreed to sell a chunk of its cheese
business to France's Groupe Lactalis SA for $3.2 billion. Like the
cheese business, its nut business is in a highly commoditized
sector that has struggled with competition from store brands.
McCormick & Co. agreed to buy hot-sauce maker Cholula in
November, while Mondelez International Inc. agreed to buy the rest
of paleo chocolate-bar maker Hu Master Holdings last month.
Mr. Peanut, introduced in 1916, appeared in Super Bowl ads in
recent years. In lieu of a regular ad during this Sunday's game,
Mr. Peanut is "shelling out" the $5 million normally spent on the
slot to reward acts of kindness, Kraft Heinz said Monday. That
follows similar actions by other companies including Anheuser-Busch
-- whose parent company, like Kraft Heinz, is backed by investment
firm 3G Capital -- emphasizing charity amid the pandemic.
Write to Cara Lombardo at cara.lombardo@wsj.com and Annie
Gasparro at annie.gasparro@wsj.com
(END) Dow Jones Newswires
February 02, 2021 14:15 ET (19:15 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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