Business portfolios are apt to change as companies assess operations, and the J.M. Smucker Co. is no stranger to this phenomenon. The CPG giant recently announced its decision to sell the Crisco® business to B&G Foods for $550 million.
In its entirety, the transaction between the two companies encompasses oils and shortening products sold under the Crisco brand primarily in the U.S. and Canada, certain trademarks and licensing agreements, dedicated manufacturing and warehouse facilities located in Cincinnati, Ohio, and approximately 160 employees who support the Crisco business.
According to a press release, the business generated net sales of approximately $270 million for J&M Smucker Co.’s 2019 fiscal year.
The divestiture of the Crisco business aligns further with J&M Smucker Co.’s previously stated intent to exit the U.S. baking category and focus more of its resources on its core growth platforms of coffee and snacking.
How will this strategy work in favor of one of the United State’s biggest brand conglomerates? Stick around to find out.