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Dive Briefing:
Chicago-based Conagra Brands has acquired Sweetwood Smoke & Co., a maker of smoked meat sticks, for an undisclosed amount, the company said in a statement.
The packaged food giant said Fatty positions itself as a premium, better-for-you product. It contains responsibly sourced grass-fed beef, antibiotic-free pork, and is free of gluten, unnecessary sugars, nitrates, and MSG.
- Since Sean Connolly took over as CEO of Conagra in 2015, he has restructured the portfolio to accelerate growth while strengthening the company’s position in the snack and frozen food sectors.
Dive Insight:
When it comes to on-the-go meat snacks, no company is more famous than Conagra.
The CPG company’s portfolio already includes Slim Jim and Dukes, two premium meat snack brands with Hatch Green Chili and Hickory Peach BBQ flavors. Fatty further strengthens Conagra’s position in meat snacks, allowing it to capitalize on strong consumer demand for protein, portable products and healthier options.
“The acquisition of FATTY Smoked Meat Sticks is another step in repositioning our portfolio for faster growth,” Connolly said in a statement. “Adding a premium brand like FATTY to our growing portfolio of healthy snacks aligns with our strategic focus on snacks and frozen foods.”
Conagra has largely avoided acquisitions since its $10.9 billion acquisition of Pinnacle Foods in 2018, a deal that brought in popular brands like Birds Eye, Duncan Hines, and Vlasic. Instead, the company has focused on transforming its core businesses and paying down the debt it took on as part of the acquisition.
Still, Connolly told Food Dive in February that he wouldn’t turn down a good deal if Conagra was available in frozen and snack form. He noted that Conagra would likely prioritize “small bolt-on products,” a strategy that was evident in the addition of the patties.
The acquisition comes as Conagra and other food companies struggle with declining consumer spending. Conagra reported a 2.1% decline in organic net sales for its grocery and snacks segment in the fourth quarter. The company also forecasted flat or 1.5% decline in sales for fiscal 2025. As Conagra looks for growth opportunities, trendy brands like Fatty could play a key role.
