Key Points:
- B&G Foods has sold its Le Sueur brand of premium sweet peas, green beans, and carrots to McCall Farms for an undisclosed amount. The proceeds from the sale will be used for general corporate purposes such as paying debt, purchasing assets beneficial to the company’s business, and covering taxes, fees, and expenses related to the sale.
- This marks B&G’s latest vegetable brand divestiture, following previous sales of tomato lines and the Green Giant U.S. canned vegetable business. The company continues to reshape its portfolio and focus on core brands while reducing long-term debt.
Insights:
Following the sale of Green Giant in late 2023, it is clear that B&G is prioritizing brands with lower margins and cash flow, higher working capital needs, or those that do not align with its core capabilities and business structure.
Casey Keller, president and CEO of B&G Foods, mentioned that the sale of Le Sueur is part of the company’s ongoing efforts to refine its portfolio and concentrate on core brands. The decision to divest from Le Sueur reflects the company’s strategy to reduce debt and focus on sustainable growth.
B&G’s strategic focus on divestiture of non-core brands highlights its commitment to driving long-term value for shareholders and strengthening its position in the competitive food industry.