Crisco owner B&G Foods sells tomato brands amid efforts to reshape portfolio
Dive Brief:
- B&G Foods sold two of its tomato brands to a private equity company as the Crisco owner looks to offload some of its portfolio and reduce debt.
- Violet Foods, a newly formed portfolio company of Amphora Equity Partners, will acquire B&G's Don Pepino and Sclafani brands for an undisclosed amount. Don Pepino makes sauces used in pizza shops across the East Coast, while Sclafani is known for its tomatoes, tomato puree and whole peeled tomatoes.
- The sale included the manufacturing facility in Williamstown, New Jersey where the products are produced. Financial details of the transaction were not disclosed.
Dive Insight:
Built through a series of acquisitions, B&G Foods is taking a far different approach these days. The New Jersey company has been actively slimming down its portfolio to streamline its focus and reduce its overall debt load.
B&G sold Green Giant canned business to Seneca Foods in 2023 and snacks brand Back to Nature a year earlier to Barilla. The company is also looking to sell the Green Giant frozen business.
Don Pepino and Sclafani are smaller offerings within B&G’s portfolio of more than 50 brands that also include Ortega, Cream of Wheat and Crisco. Don Pepino and Sclafani make sauces and tomato products, categories that face significant competition from brand names and private-label offerings. This headwind is unlikely to abate as inflation-weary consumers cut back on spending and look to save money when they can.
During the company’s first-quarter earnings call, CEO Casey Keller said reshaping B&G’s portfolio “is a very high priority for the company and critical to our future strategic direction and risk profile.” The CEO said his goal includes creating “a more highly focused B&G” that can be a foundation for M&A growth in its core business lines, principally spices and seasonings, Mexican meal preparation and baking staples.
Source link
