B&G Foods has offloaded another Green Giant asset to Seneca Foods and entered into a supply agreement with its fellow US food group.
The deal, struck for an undisclosed sum, includes B&G Foods’ plant in Yuma, Arizona, while the company will also continue to produce the frozen vegetable products for Seneca.
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Nasdaq-listed Seneca Foods, a long-term manufacturing partner of B&G Foods, said in its own statement the transaction also includes inventory, as well as the Green Giant US frozen brand and the Yuma site.
It added the manufacturing agreement is centred on B&G Foods’ plant in Irapuato, Mexico. That facility will, however, be retained by B&G Foods.
Seneca Foods had also taken ownership of the Green Giant shelf-stable vegetables line in the US from B&G Foods in 2023, also for an undisclosed amount.
B&G Foods’ president and CEO Casey Keller had flagged the potential disposal of the remaining Green Giant assets in August, namely the US frozen vegetable line up and the frozen and shelf-stable range in Canada.
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By GlobalDataA pending deal then materialised for the Canadian business with Nortera Foods in October, another manufacturing partner for B&G Foods.
That transaction also featured the Le Sieur brand of frozen and shelf-stable vegetable products in Canada. While it is still subject to regulatory approval, the the transaction is expected to close in the current quarter, B&G Goods said.
Meanwhile, B&G Foods let go of the Le Sueur shelf-stable vegetable product line in the US to McCall Farms in August.
Commenting on the latest disposal, Keller said: “Today’s sale of Green Giant US frozen represents another milestone in our ongoing effort to divest brands and product lines that are non-core to B&G Foods’ long-term strategy, sharpen our focus and reduce long-term debt.”
He added: “We believe that reuniting the Green Giant US frozen product line with the Green Giant US shelf-stable product line under the ownership of Seneca Foods, one of the largest processors of fruits and vegetables in the United States, is an important next step for the future of the Green Giant brand and is in the best interests of the millions of consumers who know and love the iconic Green Giant brand.”
The Green Giant brand of frozen and shelf-stable products “continues to expand”, Paul Palmby, the president and CEO of Seneca Foods, said as he also welcomed the bringing together of the two components.
Later today (3 March), B&G Foods is due to announce its fourth-quarter and full-year results through to the end of December.
Those numbers will not yet reflect the broth and stocks business acquired from Del Monte Foods in January.
B&G Foods agreed to pay around $110m in cash for the College Inn and Kitchen Basics brands as part of a court overseen sales process following Del Monte Foods’ bankruptcy filing in July last year.
The year-to-date results issued at the third-quarter stage in November, showed B&G Foods delivered a net loss of $28.1m.
Group sales were down 6.6% at $1.28bn while adjusted EBITDA dropped 10.4% to $187.5m.
“B&G Foods’ third-quarter results demonstrated significant improvement in adjusted EBITDA delivery and sequential improvement in base business net sales as compared to the first two quarters of 2025,” Keller said at the time.
