Hormel Pays $700 Million to Acquire Skippy Brand Peanut Butter Business
By Jean-Paul McDonald, Farms.com
Austin, Minnesota-based Hormel Foods Corporation has announced the acquisition of Skippy Brand Peanut Butter from British-Dutch consumer products giant Unilever. The sale of America’s number two brand of peanut butter (Jiff, produced by J.M Smucker’s is the number one selling peanut butter in the U.S.A) is the largest acquisition ever made by Hormel, known primarily for cured and smoked meats, frozen foods and of course their most famous product – Spam.
The sale will include production facilities located in Little Rock, Arkansas and Weifang, China. According to a statement made by Hormel’s chief executive Jeffery M. Ettinger “The acquisition of the Skippy peanut butter business represents a significant opportunity for Hormel Foods. It allows us to grow our branded presence in the center of the store with a nonmeat protein product and it reinforces our balanced portfolio.”