Now he has a new home: Kraft is selling Planters to Hormel, maker of Spam and Skippy, in a $ 3.35 billion deal.
The sale, due to close this year, will give Hormel ownership of most of the products included in the Planters brand, including mixed nuts, trail mix, corn nuts, Cheez Balls and Cheez Curls. The planters generated about $ 1 billion in sales in 2020.
For Kraft, abandoning Planters will offer a chance to focus on its most successful brands, such as Lunchables, the company said in a press release on Thursday. The deal also helps Hormel expand its snack offerings at a time when people are eating more at home.
Before the pandemic, Kraft was struggling. Many on Wall Street said that has failed to adapt to changes in consumer tastes, who are avoiding processed foods.
In 2019, the company announced a $ 15 billion write-off of its brands Kraft and Oscar Mayer. Later, it announced a nearly $ 500 million decline in value for several other low-performing brands, including Velveeta, Maxwell House and Miracle Whip.
But the pandemic, which prompted people to stock up on basic and nostalgic foods, helped boost Kraft’s sales.
In the fourth quarter of 2020, net sales grew 6% to $ 6.9 billion, exceeding Wall Street expectations. The company’s stock jumped nearly 2% before the market opened on Thursday.
– Paul R. La Monica, from CNN, contributed to this report.