Another day, another trendy organic food brand gobbled up by a large food conglomerate. This time it’s nut butter company Justin’s out of Boulder, CO, which was just bought by Hormel Foods– maker of Skippy peanut butter — for $286 million.
Justin’s will continue to operate out of Boulder as a subsidiary of Hormel, Justin Gold, the namesake and founder of the company that makes nut butter spreads, squeeze packs, and chocolate peanut butter cups, said.
“It’s a great family business, wonderful people,” Peter Burns, president and chief executive officer of Justin’s tells The Denver Post of Hormel. “We’ve gotten to know them, their core competencies. They own a great brand and are proficient in the natural and organic space.”
In discussing the deal with analysts this morning, Hormel executives said they expect Justin’s to have net sales of $100 million in fiscal 2017, and grow from there. And in case there was any doubt about why Hormel wants Justin’s, well, it’s all about the big “O” and those in-demand cool kids of the consumer world, millennials.
“The Justin’s brand gives us a great platform in natural and organic special peanut butter spreads, the fastest growing portion of the nut butter category,” James P. Snee, president and chief operating officer, said during the call. “Justin’s also further balances our portfolio of brands toward younger, more health conscious and on-the-go consumers with (the company’s) pioneering squeeze packs, affordable snack that comes in all seven of Justin’s nut butter flavors.”
This isn’t Hormel’s first run down the organic aisle: last year the company bought Applegate Farms LLC, owner of the Applegate natural and organic meats brand.
Boulder nut-butter company Justin’s bought for $286M by Skippy maker [The Denver Post]
by Mary Beth Quirk via Consumerist
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