B&G Foods owns familiar supermarket brands like Cream of Wheat, Emeril’s, Ortega, and Polaner. Now it’s picked up a few ingredients to spice up the rest of its pantry with the purchase of the spice brands of ACH Foods for $365 million. That’s another company whose name you probably don’t recognize, but you probably know the spice brands that have been sold: Durkee, Spice Islands, and Tone’s.
Green Giant, as you may remember, is one of the vegetable companies trying to make sure that we sneak more vegetables into our own diets, including being one of the brands leading the vanguard of turning cauliflower into everything else.
Buying a whole bunch of spice brands will help the company in the rest of its packaged foods business, especially as consumers are demanding packaged foods with more “natural” ingredients and flavors, and spices are a great place to get those.
B&G recently had its initial public offering of stock, and plans to use some of that money to purchase the spice brands from ACH Foods.
Of course, it also means more income: B&G estimates that its new acquisition will bring in $225 million more in sales every year.
Jolly Green Giant picks up Durkee, Spice Islands for $365 million [Chicago Tribune]
by Laura Northrup via Consumerist