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.
Four campaign groups in the US have urged the country's Food and Drug Administration to close a "loophole" in regulations on food additives and bring the rules - due to be finalised by August next yea...
The Cargill meat processing facility in Hazleton, Pa., has become the company's first certified landfill-free production site. ...
PepsiCo has honed in on a sponsorship deal with the National Basketball Association, replacing current sponsor and chief soft drinks rival The Coca Cola Co. ...
The UK Labour Party today (13 April) issued its manifesto for the country's upcoming general election - and has pledged to take aim at sugar....
- Comment: Nestle reacts to world of 3G and Buffett
- Why it is too early to call Unilever food revival
- France takes big step to uniform FOP labels
- What the analysts say: Nestle's Q1
- How will Flowers Foods grow in speciality bread?
- Unilever food, refreshment sales rise
- Nestle CFO Martello to move to head Asia unit
- Nestle sales rise on emerging markets, pricing
- Organic food sales in US up 11% in 2014
- Mondelez launches whipped Philadelphia in UK