Conagra Brands has opted to offload its direct-store-delivery (DSD) snacks business to Utz Quality Foods for an undisclosed sum, as the company aims to prioritise its core business operations.
Conagra Brands acquired the DSD snacks business in 2018 as part of its $10.9 billion acquisition of Pinnacle Foods, and the business includes brands such Tim’s Cascade Snacks, Hawaiian Snacks, Erin’s, Snyder of Berlin and Husman’s.
Sean Connolly, president and chief executive officer of Conagra Brands said: “We continue to reshape our portfolio and focus our resources on priorities that support Conagra’s business strategy and create value for shareholders.
“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.”
Dylan Lissette, chief executive officer of Utz added: “We are excited about the opportunity to add these important brands and capabilities to our portfolio.
“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.”
Last week, Conagra unveiled plans for a new US innovation site to enable the “rapid development” of contemporary, on-trend products, with a particular focus on snack products.
By Martin White
This month, the second S3FOOD voucher call selected 14 innovative SME-driven projects all across Europe. These projects will receive funding to develop and adopt innovative digital solutions.
The Global Taste Trends report maps out the key taste linked to trends across the US and Canada, Mexico, Latin America, Europe and the Asia Pacific Middle East and Africa highlighting how they vary and travel across these regions.
The acquisition significantly broadens Cargill’s offerings in the decorations space, enabling the company’s cocoa and chocolate business to better serve gourmet customers in Europe and worldwide.