Sector News

Meat Producer Applegate Farms Is Pursuing a Sale

February 9, 2015
Food & Drink
Bacon and chicken-nugget maker Applegate Farms is on the auction block, in what would be the latest in a recent string of meat-company sales.
The closely held company is working with investment bank Goldman Sachs Group Inc. to contact potential buyers, people familiar with the matter said. Applegate, which specializes in organic and frozen food, could fetch around $500 million in a sale, they said, adding that the auction has attracted other industry players.
A sale of the company would come on the heels of a year in which there was a number of sales of protein companies. Last year, Tyson Foods Inc. paid $7.7 billion for Hillshire Brands Co., which makes Jimmy Dean sausages. Post Holdings Inc. bought egg and dairy-goods company Michael Foods Group Inc. and Hormel Foods Corp. purchased Muscle Milk maker CytoSport Holdings Inc.
U.S. sales of packaged foods with protein-related claims on their labels rose to $7.5 billion in the year ended Feb. 15, up more than 50% from the same period four years earlier, according to research firm Nielsen.
A change in consumer eating habits is underpinning consolidation in the sector. Americans are moving to more protein-heavy diets and eschewing carbohydrates, while seeking more organic products.
By Dana Mattioli 

Related News

September 21, 2020

Alpro announces 30m euro investment and new sustainability goals

Food & Drink

Alpro has unveiled a new five-year health and sustainability action plan, as well as plans to invest €30m in two of its production sites. The objectives laid out by the company, […]

September 18, 2020

Cargill to advance regenerative agriculture practices across 10m acres of farmland

Food & Drink

Cargill has announced that it is supporting farmer-led efforts to adopt regenerative agriculture practices on 10 million acres of crop land in North America by 2030. The initiative will focus primarily […]

September 17, 2020

PepsiCo pilots invisible digital watermark technology to boost recycling

Food & Drink

PepsiCo is trialling products encoded with invisible digital watermarks for more effective recycling. The technology is pegged as the “holy grail” that will make mechanical sorting more efficient. The beverage […]