Hormel Foods is selling its majority stake in Justin’s.a popular nut spread and confectionery brand, has been supplied to a private investment firm for an undisclosed amount.
The maker of Spam and Planters is selling a 51% stake in Justin’s to Forward Consumer Partners, which owns Kodiak, a maker of whole-grain pancake and waffle mixes. Hormel will retain 49% ownership of the brand. It was purchased for $286 million in 2016.
Since acquiring Hormel, Justin’s has expanded its product range, adding new nut spreads, peanut butter cups and other products to the mix. Last year it debuted The Dark Chocolate Peanut and Dark Chocolate Peanut Butter Candy Pieces have a crunchy candy shell and are the first major confectionery launch for Justin’s since launching Peanut Butter Cups in 2011.
“This new partnership with Forward builds on our strong foundation and provides greater focus and resources to grow our business, while we continue to invest in our success,” Hormel President John Ghingo said in a statement. “It also reflects Hormel Foods’ broader strategy of finding creative ways to unleash the potential of every brand.”
As part of the deal, Justin’s will welcome familiar faces, including founder Justin Gold, who started the brand in his kitchen in 2004. He will serve as a strategic advisor and board member. Peter Burns will also return as CEO. The former Hershey and Hain Celestial executive was CEO at the time of Justin’s sale to Hormel.
Matt Leeds, Forward’s founder and managing partner, will serve as chairman of the board of the new partnership. He said Justin’s is “a textbook example of a property moving forward, a strong brand creating beloved products with a track record of continued success and significant untapped potential.”
Hormel previously partnered to market and distribute the brand. In 2009, it merged with Herdez Del Fuerte. Making MegaMex FoodsMegaMex, a joint venture to sell Mexican foods on U.S. Today, oversees brands including Wholely Guacamole and Chi-Chi’s.
