- J.M. Smucker reached a deal to sell Sahale Snacks, a maker of fruit and snack mixes, to Second Nature Brands for about $34 million. Second Nature is a creator of premium, nutritional and better-for-you snacks and treats.
- The deal will include all trademarks and the company's leased manufacturing facility in Seattle, Washington. An estimated 100 employees will transition to Second Nature.
- The sale marks the latest transaction for Smucker in 2023 as the Ohio-company modifies its portfolio to sharpen its focus and support growth. So far this year, Smucker has sold portions of its pet food business to Post Holdings for $1.2 billion, and it recently announced plans to buy Twinkies manufacturer Hostess Brands for $5.6 billion.
While the divestiture of its Sahale Snacks business is small compared to the multi-billion dollar Hostess deal announced earlier this month, it's further evidence of a company that is prioritizing faster-growing businesses and divesting those that are small, not increasing sales rapidly enough, or no longer core to its operations.
Sahale generated net sales of approximately $48 million for Smucker in its fiscal year ended April 30 — a fraction of the $8.5 billion in net sales the CPG giant generated during the period.
For Smucker, a maker of Folgers, Jif, its namesake jams and Meow Mix, the divestiture removes a premium brand that had little overlap with the rest of its business. Smucker will have a lot on its plate integrating Hostess and innovating the rest of its offerings, including its popular Uncrustables line. It makes sense for the company to prioritize its resources.
“The divestiture of the Sahale Snacks brand will support continued growth in our Consumer Foods business with enhanced investment in our Smucker's Uncrustables brand and building on our leadership in spreads,” said CEO Mark Smucker.
Second Nature Brands already owns Kar's Nuts, the top branded trail mix on-the-go fueling snack; and Second Nature Snacks, a pioneer in natural, non-GMO-verified premium snacks and trail mixes created for a healthy, on-the-go lifestyle. Sahale’s existing presence in these areas will allow Second Nature to build additional scale.
Second Nature also owns Sanders, a manufacturer of premium small-batch cakes, chocolates, caramels and popcorn, as well as Brownie Brittle, which it purchased in 2022.
"Sahale Snacks adds a fantastic super-premium product to our range, considerably broadens our snack mix & nut portfolio and unlocks significant new opportunities for us to help grow the category,” Victor Mehren, CEO of Second Nature Brands, said in a statement.
The transaction is anticipated to close in the third quarter of Smucker’s current fiscal year, which ends April 30, 2024