Food & Beverage Business News for September 2023

Topping food and beverage industry news were major acquisitions by J.M. Smucker and Nestlé and plant investments by Campbell Soup and CJ Foodville.

Rick Lingle, Senior Technical Editor

October 2, 2023

3 Min Read
Smucker to buy Hostess Brands for $5.6 billion
J.M. Smucker is in agreement to purchase Hostess Brands to accelerate focus on convenient consumer occasions. The various sweet treats, such as Twinkies and Ho-Hos, will add to Smucker's snack portfolio.Hostess Brands LLC

The past month saw closures, expansions, and other notable developments among the big players in food and beverage manufacturing including J.M. Smucker, Campbell Soup Co., Nestlé, and TreeHouse Foods.

This compilation of industry news in food and beverage markets for September 2023 is drawn from the pages of Packaging Digest’s sister publication Powder & Bulk Solids. Click on the hot-linked headlines for more of the story.

J.M. Smucker to Purchase Hostess Brands for $5.6B

J.M. Smucker plans to accelerate focus on convenient consumer occasions with committing to buy Hostess Brands, maker of Twinkies, for $5.6 billion including debt. The agreement was worth about $4.6 billion excluding debt, with Smucker paying Hostess shareholders $34.25 per share.

The transaction includes the Hostess Brands sweet baked good brands Hostess Donettes, Twinkies, CupCakes, DingDongs, Zingers, CoffeeCakes, HoHos, Mini Muffins, and Fruit Pies and the Voortman cookie brand, along with manufacturing facilities in Emporia, KS; Burlington, On., CAN; Chicago, IL; Columbus, GA; Indianapolis, IN, and Arkadelphia, AR (which is currently under construction), as well as a distribution facility in Edgerton, KS.

Approximately 3,000 employees will join the company in conjunction with the transaction.


SK Food Group Breaks Ground on New $205M Plant

The custom food manufacturer will build a new 525,000-sq.-ft production facility in Cleveland, TN.


Food and Beverage Facility Projects for August Stay Flat from July

There were 77 new projects in August, compared to 78 in July. Among those, Campbell Soup Co. is planning to invest $160 million for the expansion and equipment upgrades on the company’s processing and warehouse facility in Richmond, UT. Completion is slated for late 2024.


Upside Foods Picks New Location for Cultivated Meat Processing

Upside Foods Picks Location for First Commercial Cultivated Meat Plant

Upside Foods, a cultivated meat, poultry, and seafood company, is building its first large-scale cultivated meat production plant. The 187,000-sq.-ft plant, based in Glenview, IL, will produce ground cultivated chicken products, with plans to expand to other species and whole-textured formats in the future.


CJ Foodville to Invest $47M to New Food Processing Facility

CJ Foodville Corp., a subsidiary of CJ Group, will invest more than $47 million in a new bakery and food processing facility in Gainesville, GA, creating an estimated 285 jobs.


Nestlé to Acquire Major Stake in Brazilian Chocolate Company

Nestlé will acquire a majority stake in Grupo CRM, a premium chocolate company in Brazil. The acquisition will further broaden and strengthen Nestlé's confectionery presence in the country.

Grupo CRM operates a direct-to-consumer model, with more than 1,000 chocolate boutiques under the Kopenhagen and Brasil Cacau brands and has a growing online presence.


TreeHouse Foods Selling Facility, Snack Bars Business

TreeHouse Foods Inc. has entered into a definitive agreement to sell its Lakeville, MN manufacturing facility and snack bars business to John B. Sanfilippo & Son Inc. for about $63 million in cash.


Dacon Completes 88 Acres’ Facility

New facility announcement in MA for 88 Acres increases production six-fold meet national consumer demand for their low allergen snacks.


Hillenbrand Completes Acquisition of Schenck Process Food and Performance Materials Business

Hillenbrand Inc. has completed the acquisition of the Schenck Process Food and Performance Materials (FPM) business, from Schenck Process Group, a portfolio company of Blackstone, for an enterprise value of approximately $730 million.

“The completion of the FPM acquisition further strengthens our leadership position across attractive, growing end markets of food, durable plastics, and chemicals,” says Kim Ryan, Hillenbrand president and CEO.


About the Author(s)

Rick Lingle

Senior Technical Editor, Packaging Digest and PlasticsToday

Rick Lingle is Senior Technical Editor, Packaging Digest and PlasticsToday. He’s been a packaging media journalist since 1985 specializing in food, beverage and plastic markets. He has a chemistry degree from Clarke College and has worked in food industry R&D for Standard Brands/Nabisco and the R.T. French Co. Reach him at [email protected] or 630-408-7184.[email protected]

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