Key Takeaways:
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Conagra Brands has acquired Sweetwood Smoke & Co., the producer of Fatty Smoked Meat Sticks, in a deal whose terms were not disclosed, as announced by the Chicago-based company.
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The renowned packaged food company highlights Fatty as a premium, health-conscious product made with responsibly sourced grass-fed beef and antibiotic-free pork, free of gluten, unnecessary sugars, nitrates, and MSG.
- Under the leadership of CEO Sean Connolly since 2015, Conagra has focused on strengthening its presence in the snack and frozen food categories while strategically realigning its product portfolio to drive growth.
Insightful Analysis:
When it comes to convenient meat snacks, few brands are as synonymous as Conagra.
The consumer packaged goods (CPG) giant’s existing lineup already includes popular names like Slim Jim and Dukes, with Fatty adding another dimension to Conagra’s meat snack offerings, catering to the growing consumer demand for protein-rich, on-the-go, and healthier snack choices.
“The acquisition of FATTY Smoked Meat Sticks is another strategic move in reshaping our portfolio for accelerated growth,” stated Connolly. “Incorporating a premium brand like FATTY into our expanding range of better-for-you snacks aligns with our strategic focus on snacking and frozen categories.”
While Conagra has refrained from major acquisitions since its significant purchase of Pinnacle Foods in 2018, which brought iconic brands like Birds Eye and Duncan Hines under its umbrella, the company has concentrated on enhancing its core operations and reducing debt incurred from the acquisition.
In a recent interview, Connolly indicated that Conagra remains open to potential deals in the frozen and snacks segments, particularly favoring smaller strategic acquisitions, as seen with the addition of Fatty to their portfolio.
As the industry faces challenges stemming from a decline in consumer spending, Conagra reported a 2.1% decrease in organic net sales for its grocery and snacks division in the fourth quarter. Looking ahead, the company anticipates sales for the 2025 fiscal year to remain flat or decrease by up to 1.5%. In this landscape, innovative brands like Fatty could play a crucial role in driving growth for Conagra.