Del Monte Foods Inc. completed the acquisition of the assets of Sager Creek Vegetable Company for $75 million. Sager Creek acquired Allens Inc. after it went bankrupt in 2014, and manufactures brands such as Veg-all, Freshlike, Popeye, Princella Trappey's and Allens, among others. The Sager Creek business generates annual revenue of approximately $250 million. In the fruit and vegetable processing industry overall, there were 14 M&A transactions in 2014, a 16.6% increase from the year prior, according to Food Institute data.
That upward trend may continue in 2015 as another sale is on the horizon in the category. Sources say General Mills Inc. is looking to sell its Green Giant frozen and canned vegetable business, reported Reuters. The company is working with investment bank Rothschild on the potential sale, which is expected to take place this summer. General Mills is in the midst of a cost cutting push, which includes improving supply chain efficiency and shaving advertising costs, to save more than $400 million in fiscal 2015. It also announced in January that it is closing down plants in Canada and Indiana as part of the effort.
In the 52 weeks ending Jan. 25, 2015, supermarket sales of canned/bottled vegetables reached $3.3 billion, a 1.2% decrease from a year earlier, according to data from IRI.
There were 688 facilities in the U.S. canning fruits and vegetables in 2012, 2.4% more than five years earlier, but 11% fewer than in 2002, according to Food Institute analysis of the most recent Census Bureau data. These plants shipped $23.5 billion worth of product in 2012, 4.3% more than in 2007 and averaged $34.2 million in sales each.
The Kroger Co. and UK-based Ocado signed an exclusive partnership agreement, bringing the Ocado Smart Platform to the U.S. for the first time. As part of the agreement, Kroger will increase its existing investment in Ocado by 5%. Ocado will partner exclusively with Kroger in the U.S., enhancing Kroger's digital and robotics capabilities and helping expand its coverage area.read more
Business is never easy, and those undertaking the rigors of bankruptcy proceedings know this struggle all too well. Here at the Food Institute, we currently have our eyes trained on four food industry bankruptcies.read more
Jennette has been with The Food Institute since 2013. As Marketing Director, she is responsible for promoting all Food Institute books, seminars and webinars, as well as writing and editing the Food Institute’s annual publications, such as Food Business Mergers & Acquisitions, The Food Industry Review and The Almanac of the Canning, Freezing, Preserving Industries. Additionally, she writes for and edits the daily news update, Today in Food, and contributes to the weekly Food Institute Report. She has a background in non-profit and environmental marketing, programming and writing, and graduated from Rowan University in 2012 with a degree in Communication Studies.
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