Conagra Brands has offloaded snacks assets the US manufacturer took on through its acquisition of local peer Pinnacle Foods last year.
The Hunt’s ketchup and Banquet meals owner has sold its direct-store-delivery snacks business to US snacks supplier Utz Quality Foods for an undisclosed sum. Direct-store-delivery, or DSD, sees manufacturers ship products directly to retail stores.
The sale includes the Tim’s Cascade Snacks, Hawaiian Snacks, Erin’s, Snyder of Berlin and Husman’s brands.
Sean Connolly, Conagra’s president and CEO, said the company was focusing resources on “priorities that support Conagra’s business strategy and create value for shareholders”.
He added: “While Conagra has a large and growing snacks business, we do not currently operate with a DSD model. We believe this business will have more opportunity for growth under Utz, an established DSD operator.”
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Privately-owned salty-snack business Utz has a portfolio including brands such as Golden Flake, Zapp’s and Utz. The Pennsylvania-based business operates eleven manufacturing facilities and more than 1,500 DSD routes.
Utz CEO Dylan Lissette described the assets the company is to acquire as “important brands and capabilities”. He added: “These brands bring a strong consumer following and unique craft heritage. Their distribution and manufacturing capabilities, along with their customer relationships, enhance our ability to further grow our brand portfolio further west.”
