Blog: ConAgra, B&G touted as potential Skippy suitors
Katy Askew | 12 November 2012
ConAgra Foods and B&G Foods are reportedly among those in the running to acquire Unilever's US peanut butter brand, Skippy.
Unilever announced it was "considering options" for the brand last month and - as we reported in our analysis of the move - one likely potential suitor was US group ConAgra.
ConAgra recently snapped up Unilever's frozen brands in the US and has indicated that it is hoping to drive growth through M&A. According to a Bloomberg report, which cited people familiar with the matter, ConAgra has made a preliminary approach for the business, which could potentially augment its Peter Pan peanut butter unit.
Another potential buyer, the report suggested, is spreads-to-salsa manufacturer B&G Foods. As a US-focused manufacturer of shelf-stable products, Skippy would slot neatly into B&G's existing centre-store portfolio. And, like ConAgra, B&G has looked to build its portfolio through acquisitions of late: the company recently completed the purchase of New York Style and Old London brands from Chipita.
B&G has recently secured a batch of brands from Unilever. Last year, B&G acquired four brands from Unilever, so the two sides do have a relationship.
Add to this B&G's ship-shape balance sheet - which has been boosted by a stock offering the proceeds of which were used to paydown maturing debt and fund the New York Style, Old London purchase - and B&G certainly looks like a contender for Skippy.
Skippy generated full-year sales of around US$300m in 2011 and, according to analyst estimates, the disposal of Skippy is expected to generate proceeds of between US$300-400m.
The brand represents an attractive asset for those operating in the US food space. Skippy is the second-largest brand in the US nuts and seeds spreads category, with 17% value share. And, according to figures from Eurominitor International, the category itself is expected to report a compound annual growth rate of 2.6%, or in value terms US$200-230m, over the next five years.
With market talk rumbling on over whether Diamond Foods is up for sale, attention has now turned to if the company could be preparing to sell its snack food brands separately having failed to secure a...
Opposition to the use of genetically modified organisms (GMOs) in food continues to prove a controversial issue....
- Who could swoop for Diamond Foods?
- Why Lactalis could move for Dairy Crest
- Indonesia - Sweet and sour of confectionery sector
- The consistent inconsistency of European promos
- Indonesia – How ice cream makers can drive volumes
- Mondelez 'preparing to sell European cheese unit'
- Nestle, R&R Ice Cream in joint venture talks
- Unilever acquires Italian gelato group Grom
- BRF to buy certain Molinos Rio de la Plata brands
- Aldi reformulates US private-label lines
- Management briefing: just-food’s industry outlook for 2015
- Danone SA : Consumer Packaged Goods - Company Profile, SWOT & Financial Analysis
- E-Grocery Market in India - Market Research 2015-2019
- Food and Beverage Coding and Marking Equipment: Market Outlook 2015-2019
- Chilled Processed Food Packaging in the United Kingdom