Thu, Mar. 3, 9:14 AM
- JAB Holding completes its acquisition of Keurig Green Mountain (NASDAQ:GMCR).
- The transaction brings Keurig under the same corporate umbrella as Caribou Coffee, Peet's Coffee & Tea, Jacobs Douwe Egberts, Bach Espresso, Bravo, Einstein Noah Restaurant Group, and Espresso House.
- By swallowing up Keurig, JAB has raised the stakes in its battle with Starbucks (NASDAQ:SBUX), Mondelez International (NASDAQ:MDLZ), Nestle (OTCPK:NSRGY), and JM Smucker (NYSE:SJM) for coffee dominance. For now, Starbucks plans to stick with its Keurig partnership, although on the last SBUX earnings call Howard Schultz called the future of the relationship unresolved (earnings call transcript). The other companies will also have to shift strategy to the new coffee matrix.
- JAB is a privately-owned company with power divided up between the children of Albert Reimann.
Feb. 14, 2015, 10:13 AM
- Craft soda is starting to become a trend to watch closely, according to industry insiders.
- Though still accounting for only ~1% of the total U.S. soda market, major retail chains have increasingly been willing to bet on local craft brands in store aisles.
- The craft craze is old news for the beer industry where coming-of-age millennials buy craft/local beers at a 50% higher rate than brand-loyal older generations. Fading stars such as Budweiser and Bud Light are testament to the impact of the millennial paradigm.
- The craft influence in coffee hasn't been lost on Starbucks which has strategically deployed trucks on college campuses in an effort to win over students.
- Despite the progressive reputation of Starbucks, analysts think new upstarts such as Craft (subscription) and Cups (app) have a shot of gaining influence with the Indie-minded millennial crowd on "customization" and pricing.
- What to watch: An increase in M&A activity in the beverage sector is expected as major companies strategically pick off more local craft brands to incubate.
- Craft beer watch: BUD, OTCPK:SBMRY, TAP, OTCQX:HEINY, SAM, BREW, STZ, OTC:BIBLF, OTCPK:BRBMF.
- Craft coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
- Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA, FIZZ.
Feb. 3, 2015, 4:57 PM
- J.M. Smucker (NYSE:SJM) is acquiring Big Heart Pet Brands from its P-E owners for 17.9M shares, $1.3B in cash, and $2.6B in debt that will be refinanced (total consideration of $5.8B). For reference, Smucker closed today with a $10.7B market cap.
- Big Heart, known as Del Monte before unloading its consumer products ops, owns the Meow Mix, Kibbles 'n Bits, Milk-Bone, and Natural Balance pet food brands, among others.
- The deal is expected to close by the end of Big Heart's FY15 (ends on May 3). Following its closing Big Heart CEO Dave West will serve as the the president of Smucker's pet food ops.
- Smucker has risen to $110.75 in AH trading, making new 52-week highs along the way.
Aug. 7, 2014, 3:04 AM
- J.M. Smucker (NYSE:SJM) has agreed to purchase Sahale Snacks, a maker of nut and fruit snacks, and expects to close the deal by the middle of September.
- Seattle-based Sahale is expected to post sales of about $50M in 2014.
- Sahale's owners include P-E firm Palladium Equity Partners, which bought a minority stake in 2007 and announced a follow-on investment in 2012.
May 27, 2014, 7:28 AM
- A $6.4B offer by Pilgrim Pride's (PPC) to buy Hillshire Brands (HSH) could rattle the food sector.
- For starters, the deal could spoil Hillshire's offer on the table to buy Pinnacle Foods (PF).
- The quick analyst take on a PPC-HSH combination is favorable with the companies focused in different areas (chicken vs. packaged meat) which could lead to easy access to new distribution channels.
- Premarket: HSH +22.9% to $45.49, PF -5.3% to $31.50.
- Also on merger watch in the food sector: THS, SJM, GIS, KRFT, CPB, ADM, BGS, RAH, HAIN, K CAG
May 12, 2014, 7:13 AM
- A merger between Hillshire Brands and Pinnacle Foods could kickstart the consolidation frenzy in the food industry analysts have been forecasting.
- The sector has been tapped to see a high rate of mergers and buyouts due to the significant synergies that could be unleashed through combinations.
- On watch: THS, SJM, GIS, KRFT, CPB, ADM, BGS, RAH, HAIN, K, CAG
Mar. 23, 2014, 2:47 AM
- Unilever's (UL) Ragu brand is attracting interest from Hormel Foods (HRL) and J.M. Smucker (SJM), Bloomberg reports, with Pinnacle Foods (PF), Hillshire Brands (HSH), Post Holdings (POST) and Japanese grocery supplier Mizkan also eying the pasta sauce.
- First round bids for Ragu, which could bring in up to $2B, are due in at the end of this week.
- The auction adds to Unilever's sale of other famous food brands such as Skippy peanut butter last year. Ragu makes up 40% of the company's pasta-sauce sales of $1.2B and is the U.S. market leader, but revenue has fallen 18% since 2009.
Aug. 21, 2013, 7:40 AM
- J.M. Smucker (SJM) acquires privately-held Enray for an undisclosed amount.
- The company says the natural foods business will extend its position in key natural and organic categories.
- Enray racked up $45M in sales over the last 12 months.
Mar. 25, 2013, 9:04 AM
Will Warren Buffett snack on another company this year to go along with the mega-sized purchase of Heinz with partner 3G Capital? SA contributor John McCoy thinks J.M. Smucker (SJM), W.W. Grainger (GWW), and McCormick (MKC) all fit the Buffett profile with their wide moat and strong brands. A longer shot for a Berkshire Hathaway play could be Tiffany (TIF), right-sized for acquisition in a luxury sector Buffett has dabbled with in the past.| Mar. 25, 2013, 9:04 AM | 4 Comments
Dec. 12, 2011, 8:21 AM
Sara Lee (SLE) is acquiring CoffeeCompany, a Dutch owner of 60 cafés, for an undisclosed sum. The transaction comes a couple weeks after Sara Lee struck a deal to acquire House of Coffee, and 2 months after it agreed to sell a majority of its coffee and hot beverage business to J.M. Smucker (SJM).| Dec. 12, 2011, 8:21 AM
Oct. 24, 2011, 8:15 AM
J.M. Smucker (SJM), owner of the Folgers brand, is acquiring a majority of Sara Lee's (SLE) coffee and hot beverage business, for $400M in cash. The deal, which includes Sara Lee's Douwe Egberts liquid coffee concentrate business, will boost J.M. Smucker's annual net sales by roughly $285M. SLE +3.4% premarket.| Oct. 24, 2011, 8:15 AM