Hormel Foods is selling a majority stake in Justin’s, the popular nut spreads and confectionery brand, to a private investment firm for an undisclosed amount.
The Spam and Planters manufacturer is selling 51% of Justin’s to Forward Consumer Partners, which owns whole grain pancake and waffle mix maker Kodiak. Hormel will retain 49% ownership in the brand, which it purchased in 2016 for $286 million.
Since Hormel's acquisition, Justin’s has expanded its product reach by adding new nut spreads, peanut butter cups and other offerings to the mix. Last year, it debuted Dark Chocolate Peanut and Dark Chocolate Peanut Butter candy pieces with a crunchy candy shell, the first major confectionery launch for Justin’s since it rolled out peanut butter cups in 2011.
“This new partnership with Forward will build on that strong foundation, providing even greater focus and resources to help the business grow — while we remain invested in its success,” John Ghingo, president of Hormel, said in a statement. “It also reflects a broader strategy at Hormel Foods of finding creative ways to unlock the potential of all of our brands."
As part of the transaction, Justin’s will welcome familiar faces, including its founder, Justin Gold, who started the brand in his kitchen in 2004. He will serve as a strategic advisor and board member. Peter Burns will also return as CEO. The former Hershey and Hain Celestial executive was Justin’s chief executive when it was sold to Hormel.
Matt Leeds, Forward's founder and managing partner, will become chairman of the board of the new partnership. He said Justin's is a “textbook Forward asset — a powerful brand that makes beloved products, with an enduring track record of success and significant untapped potential.”
Hormel has previously entered into partnerships to market and distribute brands. In 2009, it joined with Herdez Del Fuerte to create MegaMex Foods, a joint venture to market Mexican foods in the U.S. Today, MegaMex oversees brands including Wholly Guacamole and Chi-Chi’s.
