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 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.
The custom food manufacturer will build a new 525,000-sq.-ft production facility in Cleveland, TN.
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, 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 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 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 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.
New facility announcement in MA for 88 Acres increases production six-fold meet national consumer demand for their low allergen snacks.
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.