Conagra Brands Acquires Meat and Seed Snack Producer

March 22, 2017

Conagra Brands announced it has agreed to acquire Thanasi Foods, a protein-based snack manufacturer, and maker of Duke’s® meat snacks and BIGS Seeds, for an undisclosed amount.

Duke’s® product line includes Duke’s Smoked Shorty® Sausages and Duke’s Steak & Brisket Strips – all made in small-batch hardwood smoked pairings of high quality ingredients – while BIGS seed snack product line includes jumbo in-shell sunflower seeds, sunflower seed kernels, and roasted pumpkin seeds.

This deal will add Duke’s® and BIGS to Conagra’s portfolio that already includes Slim Jim snacks, David Seeds, and Chef Boyardee, strengthening Conagra’s presence in the protein snack segment.

Over the past year, Conagra has undertaken a strategic plan to reinvigorate its portfolio to better align with consumer demands and reflect a more modern lineup. Toward this end, Conagra divested its Ralcorp private label business to TreeHouse Foods in the fourth quarter of 2015, sold ingredient sourcing and distribution company, JM Swank, to private equity firm Platinum Equity in June 2016, and sold flavors and seasoning business Spicetec to Givaudan in May 2016. Meanwhile, the company acquired salsa and sauce manufacturer Frontera Foods in September of last year.

The Protein Parade

Protein is increasingly becoming the name of the game for consumers. Meat consumption in the U.S. jumped by 5 percent in 2015 – the largest increase in 40 years, according to a report by Rabobank Food & Agribusiness Research and Advisory Group. Consequently, consumers are more often opting for snack foods as health plays a greater role in food choices, and younger consumers blur the lines between snacking and formal meals, reports Food Dive. Today, 24 percent of all snack foods are eaten during meal times, according to a report issued by The NPD Group, compared to 21 percent five years ago – a trend that is expected to continue, with expectations that the trend will increase by another 12 percent.

These shifts in consumer sentiment and in the market are driving larger companies to reconfigure their portfolios to include smaller CPG companies and startups that closely identify with these trends.

Just last year, General Mills agreed to acquire premium meat snack company EPIC Provisions, a Texas-based producer of meat-based protein bars from ingredients sourced from antibiotic and hormone-free chicken, turkey, pork, bison, lamb, and grass-fed beef; and Hershey acquired Krave Pure Foods – another premium jerky maker that Hershey told Bloomberg could become a brand worth $500 million. Private equity firm Wind Point Partners announced it had agreed in partnership with PepsiCo executive Jose Luis Prado to acquire Chicago-based Evans Food Group, a maker of branded and private label pork rinds and salty snacks. Also, Jack Link’s Protein Snacks announced it had agreed to acquire the meat snack division of Grass Run Farms, a collective of American family farms that produce 100% grass-fed beef and beef snacks.

Another Step Toward its Goal

The decision of acquire Duke’s® and BIGS Seeds will bring Conagra one step closer to achieving a level of premiumization in association with its food offerings, according to Fortune.

“This is another exciting step in our ongoing efforts to reshape our portfolio to be more premium and modern,” said Sean Connolly, president and CEO of Conagra Brands. “These on-trend brands extend our meat snacks and seeds businesses into faster-growing, more premium segments. We are looking forward to working with the Thanasi team to grow the brands further and create value for our shareholders.”

-Lynda Kiernan

Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration please contact Ms. Kiernan at lkiernan@globalaginvesting.com.

Join the Global AgInvesting Community

Share your email to be notified about upcoming events, receive leading industry news and more.