J.M. Smucker Divests Brands to Focus on Sweet Baked Snacks
In an effort to optimize its sweet baked snacks portfolio, including the Hostess brand, The J.M. Smucker Co. has agreed to divest its Cloverhill and Big Texas value brands, along with certain private label products, to JTM Foods, LLC (JTM). The deal, worth approximately $40 million, includes relevant trademarks and licenses, as well as Smucker’s Chicago manufacturing facility.
The all-cash deal is expected to close during the company’s fourth quarter of fiscal year 2025, ending April 30. According to Smucker, the divested brands and private label products generated net sales of approximately $30 million in the company’s fiscal year ended April 30, 2024.
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"This divestiture reflects our continued commitment to portfolio optimization to prioritize resources to support the execution of our Sweet Baked Snacks strategy, focused on growing the Hostess brand, and advancing our leadership in the sweet baked goods category," said Dan O'Leary, SVP and general manager, sweet baked snacks and pet at Smucker. "This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity."
Orrville, Ohio-based Smucker’s owns brands across the coffee, peanut butter, fruit spreads, frozen handheld, sweet baked goods, dog snacks and cat food categories, including Folgers, Dunkin’, Café Bustelo, Jif, Smucker’s Uncrustables, Smucker’s, Hostess, Voortman, Milk-Bone and Meow Mix.
