Sector News

Campbell Soup to buy salsa maker Garden Fresh for $231 million

June 10, 2015
Food & Drink
Campbell Soup Co (CPB.N) said on Tuesday that it would buy salsa maker Garden Fresh Gourmet for $231 million to expand in the fresh and organic packaged foods business.
 
The acquisition by the world’s largest soup maker is the latest among food companies, which have been buying up smaller organic counterparts as U.S. consumers increasingly prefer less-processed fare.
 
Hormel Foods Corp (HRL.N) paid $775 million for natural and organic meat processor Applegate Farms LLC last month, while General Mills Inc (GIS.N) bought organic food maker Annie’s Inc for $820 million in October.
 
Campbell, whose shares rose 1 percent to $46.73, said in January it would reorganize its business to shift its “center of gravity,” a reference to its troubled soup business.
 
Garden Fresh, which makes Jack’s Special salsa as well as hummus and tortilla chips, will become a part of the Campbell Fresh business, which includes Bolthouse Farms.
 
Campbell first noticed Garden Fresh when its executives were walking the aisles of its retailers, looking for opportunities to build its portfolio of healthy snacks, Campbell Fresh President Jeff Dunn said in an interview.
 
In the hummus category, “Garden Fresh was the only significant brand in that space that hadn’t been acquired,” Dunn said. “We knew eventually the family was going to sell the business.”
 
Ferndale, Michigan-based Garden Fresh, which Campbell said generated $100 million in net sales in 2014, was founded by Jack and Annette Aronson in 1998. Jack Aronson will be an adviser to the business after the purchase by Campbell.
 
Campbell bought Bolthouse Farms, which sells fresh carrots, beverages and salad dressings, for $1.55 billion in 2012.
 
Including Garden Fresh, the Campbell Fresh business will account for more than $1 billion in annual net sales, Campbell said on Tuesday. The company reported net sales of $6.39 billion for the nine months ended on May 3.
 
Morgan Lewis & Bockius LLP was Campbell’s legal adviser. Garden Fresh Gourmet was advised by UHY LLP. Maddin, Hauser, Roth & Heller P.C. were its legal advisers.
 
(Reporting by Yashaswini Swamynathan in Bengaluru and Anjali Athavaley in New York; Editing by Lisa Von Ahn)
 

comments closed

Related News

December 5, 2021

Tetra Pak dairy manager identifies environmental health as key industry driver in COVID-19 age

Food & Drink

Environmental sustainability and net-zero emissions targets are the key change drivers in dairy packaging and processing right now, according to Bengt Eliasson, category manager for dairy ambient at Tetra Pak. In this wide-ranging interview with PackagingInsights, Eliasson discusses the Swedish-Swiss food packaging and processing giant’s latest low-carbon circular packaging and processing equipment technologies.

December 5, 2021

Chr. Hansen’s fermentation-enabled bioprotective FreshQ solution scores innovation award

Food & Drink

A panel of industry experts selected Chr. Hansen’s FreshQ concept at this year’s Fi Europe Innovation Awards in Frankfurt, Germany. The Food Tech Innovation Award was presented to the company’s range of next-generation food cultures, which are pegged as a “game-changer in terms of low impact on post-acidification” in fermented dairy.

December 5, 2021

China sets formal standard for businesses to use cage-free eggs

Food & Drink

In a move to scale cage-free egg regulations to market behest, the China Chain Store and Franchise Association (CCFA) and the China Animal Health and Food Safety Alliance (CAFA) have set a formal standard to define which eggs and egg products are to be marketed as cage-free.

Send this to a friend