Dive Brief:
- B&G Foods sold its Green Giant U.S. frozen vegetable line to Seneca Foods for an undisclosed amount. The company intends to use the proceeds to reduce its debt or make acquisitions.
- The deal, effective Monday, includes B&G’s vegetable manufacturing operations in Yuma, Arizona. B&G will continue to produce certain Green Giant frozen products through a co-packing agreement with Seneca.
- B&G previously sold the Green Giant U.S. shelf-stable vegetable business to Seneca in November 2023.
Dive Insight:
Just over three years after splitting up Green Giant, the acquisition by Seneca brings the frozen and canned businesses back together.
The combination likely enables Seneca to enhance its purchasing power over green beans, peas and other produce, maximize its marketing dollars to promote Green Giant and boost innovation efforts. In addition, the deal allows the New York-based company to expand its presence in frozen, a popular category with consumers looking for convenience and healthier offerings.
Paul Palmby, Seneca’s CEO, said in a statement the company looks "forward to growing the frozen franchise in a category that continues to expand and building on the positive momentum we’ve experienced in Green Giant shelf-stable business.”
Once a serial acquirer, B&G has slimmed down its business to shed noncore assets, sharpen its focus and reduce its debt. Casey Keller, B&G’s CEO, said the divestiture of its Green Giant frozen business “represents another milestone” in that strategy.
B&G, which also sells Crisco, Ortega and Cream of Wheat, has been exploring a sale of the Green Giant for more than two years.
Last year, B&G sold two of its tomato lines and its Le Sueur brand of premium sweet peas, green beans and carrots. Still, it has also remained open to acquisitions when the right opportunity comes along. It recently purchased Del Monte Foods’ broth and stock business for approximately $110 million.
