FoodBev Media’s Gwen Jones rounds up this week’s food and beverage news, including:
Campbell Soup to acquire Sovos Brands for $2.7bn
Campbell Soup Company has entered into an agreement to acquire Sovos Brands for $23 per share in cash, representing a total enterprise value of approximately $2.7 billion.
Sovos Brands’s portfolio includes products such as pasta sauces, dry pasta, soups, frozen entrées, frozen pizza and yogurts under the brand names Rao’s, Michael Angelo’s and Noosa.
The acquisition will add a “high-growth, market-leading premium portfolio” of brands to Campbell’s meals and beverages division.
Campbell’s president and CEO, Mark Clouse, said: “We’re thrilled to add the most compelling growth story in the food industry and welcome the talented employees who have built a nearly $1 billion portfolio”.
He added: “This acquisition fits perfectly with and accelerates our strategy of focusing on one geography, two divisions and select key categories that we know well. Our focused strategy has enabled us to deliver strong results over the last five years, enhance our brands and capabilities, and generate strong cash flow to lower debt.
Tyson to shutter four more chicken plants
Tyson Foods has announced plans to close four chicken processing facilities, located in Corydon, Indiana, Dexter, Missouri, Noel, Missouri and North Little Rock, Arkansas in the US.
Through the closures, the meat giant aims to “optimise network asset utilisation,” as it adjusts to a decline and slowing demand for certain products.
Donnie King, president and CEO of Tyson Foods, said: “The difficult decision to close four chicken facilities in North Little Rock, Arkansas, Corydon, Indiana, Dexter, Missouri and Noel, Missouri, demonstrates our commitment to bold action and operational excellence as we drive performance, including lower costs and improving capacity utilisation, and build on our strategy of making Tyson Foods stronger in the long-term.”
The company expects to shift production to other facilities, with operations at the four plants slated to cease in late 2023 or by the first half of 2024.
Chief financial officer John Tyson told analysts that the four facilities account for about 10% of Tyson’s chicken-slaughter capacity.
Adani Enterprise considers exit from $6bn Wilmar venture – Bloomberg News
India’s Adani Enterprises is looking at selling its stake in its joint venture with Wilmar International, Bloomberg News reported on Tuesday (8 August), citing people familiar with the matter.
According to the Bloomberg report, the conglomerate has been considering a potential sale of its 44% stake in Adani Wilmar for a few months. The India-based consumer goods maker is currently valued at $6.17 billion. Adani partnered with Singapore’s Wilmar International to set up the snacks, pulses and edible oils JV in 1999.
In a Bombay Stock Exchange filing, Adani Wilmar said: “The company is not in a position to comment…As a policy, the company does not comment on media speculation.”
AB InBev offloads eight beverage brands to Tilray in $85m deal
Cannabis-lifestyle and CPG company Tilray has entered into an agreement to acquire eight beer and beverage brands from Anheuser-Busch for $85 million.
Upon satisfaction of customary closing conditions, Tilray will acquire Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company and HiBall Energy from AB InBev. The transaction includes current employees, brewpubs and breweries associated with the brands.
The sale adds four production facilities across the US – in Portland and Bend (Oregon), Littleton (Colorado), and Patchogue (New York) – to the Tilray portfolio. It also includes the sale of eight brewpub locations – in Seattle (Washington), two in Bend (Oregon), Portland (Oregon), Boise (Idaho), Littleton and Breckenridge (Colorado), and Patchogue (New York).
Nestlé UK and Ireland has announced that its Quality Street chocolate brand is launching a new sharing bar, combining two of its classic offerings. The Collisions Hazelnut and Caramel chocolate sharing bar brings together two of the brand’s chocolate tin favourites: The Green Triangle and The Purple One.
The Glenlivet spay-side single malt Scotch whisky – part of the Chivas Brothers portfolio – has introduced Twist & Mix Cocktails, a new line of premium, ready-to-serve cocktails.
PepsiCo has announced that its Walkers Max crisp brand has teamed up with Pizza Hut to launch two new non-HFFS, pizza-inspired flavours in the UK. The two new permanent flavours, Pepperoni Feast and Texan BBQ, are available now in grocery and convenience stores across the UK
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