J.M. Smucker has sold its Red River Cereal brand in Canada, the latest asset to go under a strategy to focus on “high-growth” areas of the portfolio.
The US-based food and beverage business confirmed it had disposed of the breakfast cereal line to Ontario-based Arva Flour Mills.
Late in 2020, Smucker revealed plans to dispose of assets not aligned with its “long-term strategic focus”. At the time, CEO Mark Smucker outlined the plan would entail “reshaping our portfolio, streamlining our organisation, and updating our commercial model to transform how we deliver for our customers and consumers”.
That same year, Smucker sold its Crisco cooking oil business and Natural Balance pet foods. Its private label, dry pet-food assets followed in 2021, along with TruRoots, a line of packaged rice, lentils and quinoa.
“The sale of the Red River Cereal brand reflects our continued commitment to devote greater resources to brands across our portfolio that drive growth,” Smucker said in a statement provided to Just Food. “While the brand no longer fits our long-term strategy, we believe it will have a better opportunity to thrive with Arva Flour Mills.”
Financial terms were not disclosed by either party in a deal Arva Flour Mills said was completed on 1 June.
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The Canadian company operates a water-powered commercial flour mill in Arva, Ontario, incorporating non-GMO wheat. The company supplies artisan flours, beer bread, corn bread and Red Fife pancake mixes to retailers in the state and online.
“We have expanded the Arva Flour Mills brand to over 150 grocery and specialty stores in Ontario. With our established retail relationships we hope to have Red River Cereal alongside our other products in the near future,” business owner Mark Rinker said.
Smucker does not break down sales numbers for Canada. In its year to 30 April, the business generated revenue of US$8bn, flat on the previous year. Operating income dropped 26% to $1.02bn, while net income was down 28% at $631.7m.
In its latest annual report, Smucker noted: “In Canada, we are the branded market leader in the pickles, flour, fruit spreads, canned milk, and ice cream toppings categories. Our business is highly competitive as all of our brands compete for retail shelf space with other branded products, as well as private-label products.”