ConAgra Sells Meat Brands to Smithfield

Posted on by Chief Marketer Staff

ConAgra Foods will sell its refrigerated meats business to Smithfield Foods for $575 million.

The business, with a combined $1.8 billion in annual sales (retail and foodservice), includes the Butterball, Eckrich, Armour, LunchMakers, Margherita, and Longmont brands.

ConAgra keeps its Hebrew National, Brown ‘N Serve sausage, Slim Jim and Pemmican meat snacks brands, citing their strong equity, growth potential, and fit within its brand portfolio.

The deal is expected to close by Oct. 30. ConAgra put the meats business on the block in February, part of a restructuring plan that sheds peripheral brands and ratchets up marketing support for core brands (PROMO Xtra, March 21, 2006). Omaha, NE-based ConAgra sold its Cooks ham brand to Smithfield, VA-based Smithfield Foods in April for $260 million, and sold its Louis Kemp seafood business to Trident Seafoods Corp. in March. ConAgra’s domestic and imported cheese business is still on the block.

President-CEO Gary Rodkin called the refrigerated meats sale “a significant milestone, … part of an ongoing process to simplify our operations and to focus our efforts on areas of our portfolio where we have the greatest opportunities. … I am delighted we were able to reach an agreement well in advance of our estimated timetable and for a fair value.”

Rodkin took charge at ConAgra in September 2005, with a hands-on approach to boost marketing spending and results. He brought in Jacqueline McCook as chief growth officer and executive VP-International in April.

Smithfield Foods, meanwhile, has been on a buying spree, acquiring Sara Lee Corp.’s European meats business in June, also for $575 million; that deal is expected to close by Sept. 30. Buying established brands gives Smithfield entry into the higher-margin packaged meats arena, rather than selling commodity meat to other processors.

The purchase from ConAgra “furthers our strategy of growing the packaged meats side of our business with higher-value, further-processed and pre-cooked products,” said Smithfield President-COO Larry Pope in a statement. “These brands will allow us to capture sales and marketing opportunities and more fully serve the needs of our retail and foodservice customers.”

More

Get Content Like This Delivered to Your Inbox

Related Posts

Chief Marketer Videos

by admin

Chief Marketer Awards

Fusion Marketing - Gold Velcro Industries - Gold Pringles - Gold Bud Light - Gold Bud Light - Gold Target - Gold Coca-Cola - Gold Coca-Cola - Gold HISTORY - Gold Denny’s - Gold Ford Motor Co. - Gold Cottonelle - Gold Intel Corp. - Gold Intel Corp. - Gold Miller High Life - Gold McDonald’s Corp. - Gold Poland Spring - Gold REI - Gold Game of Thrones - Gold Kingsford Charcoal - Gold Pernod Ricard USA - Gold Breathe Right Nasal Strips - Gold Lincoln Motor Co. - Gold Coca-Cola - Gold Mike’s Hard Lemonade - Gold National Football League - Gold Google Asia Pacific - Gold Piper-Heidsieck - Gold 2014 Show Your Joe Campaign - Gold Nike - Gold Cîroc Ultra Premium Vodka - Gold Kmart - Gold Kmart - Gold Coca-Cola - Gold Cotton Inc. - Gold Nike - Gold Malibu Rum - Gold Hostess Brands LLC - Gold HBO - Gold Prevacid 24HR - Gold Samsung Mobile USA - Gold Cîroc Ultra Premium Vodka - Gold Frito-Lay and PepsiCo - Gold Hewlett Packard Co. - Gold FX Television Network - Gold Captain Morgan - Gold American Express OPEN - Gold HBO - Gold Corona Extra - Gold AT&T - Gold World Vision - Gold Gillette - Gold Pantene - Gold Porsche - Gold Duracell - Gold Corona Extra - Gold Microsoft - Gold Cottonelle - Gold Chicago Shakespeare Theater - Gold HBO - Gold Crown Imports - Gold Samsung Mobile USA - Gold The Clorox Co.
 - Gold Pepsi Co. - Gold Oreck - Gold Jockey International - Gold The Art Institutes - Gold Monster Worldwide, Inc.
 - Gold Pepsi Co.
 - Gold HISTORY - Gold MillerCoors - Gold Time Warner Cable - Gold Frito-Lay - Gold American Express OPEN - Gold AT&T - Gold MillerCoors Foster’s - Gold Microsoft Windows - Gold ConAgra Foods, Inc.
 - Gold Coca-Cola - Gold Nestlé - Gold Ford Motor Co.
 - Gold

Chief Marketer Top Shops

TRCO MARKETING WUNDERMAN VERTICAL MARKETING NETWORK UPSHOT TWO/TEN TRACK MARKETING GROUP TPN TIPTON & MAGLIONE TIC TOC TEAM EPIC TEAM ENTERPRISES TEAM DIGITAL PROMOTIONS THE STRATEGIC AGENCY SWITCH SOURCE MARKETING SOHO EXPERIENTIAL SLANT SCOUT SPORTS & ENTERTAINMENT RYAN PARTNERSHIP RUBIK MARKETING REVOLUTION RE:FUEL AGENCY REDPEG MARKETING RED MOON MARKETING PSE-PACKAGED SPORTS AND ENTERTAINMENT PRO MOTION PRIZELOGIC POWERPACT PGW EXPERIENCE NEXT MARKETING NATURAL SELECTION PROMOTIONS MOMENTUM WORLDWIDE MKTG MIRRORBALL MICHAEL ALAN GROUP MASTERMIND MARKETING MATCH MARKETING GROUP THE MARS AGENCY MARKETVISION MARKETING WERKS THE MARKETING STORE MARKETING RESOURCES MARKETING LAB THE MARKETING ARM MARKETING ACTIVATIONS GROUP MARDEN-KANE LIVE NATION MEDIA & SPONSORSHIP LIKEABLE MEDIA LEGACY MARKETING PARTNERS LEADDOG MARKETING GROUP LAUNCHFIRE LAGARD´ERE UNLIMITED KICKING COW PROMOTIONS JACK MORTON WORLDWIDE INTERACTIONS THE INTEGER GROUP INSPIRA MARKETING IN MARKETING SERVICES IC GROUP HMT ASSOCIATES, INC. HELLOWORLD GROW MARKETING GOOD SOLUTIONS GROUP GOLDNFISH MARKETING GROUP LLC GMR MARKETING GEORGE P. JOHNSON GEOMETRY GLOBAL GENERATION Z MARKETING GAGE MARKETING GROUP FUSE, LLC FORMULA STREET INC. FLUENT FCBX FCB/RED FAME ESCALATE THE ELEVATION GROUP EASTWEST MARKETING GROUP DON JAGODA ASSOCIATES DEPARTMENT ZERO CONCEPT ONE COMMUNICATIONS COLLABORATIVE MARKETING GROUP COLANGELO CATAPULT CARDENAS MARKETING NETWORK BRANDFORCE BRAND CONNECTIONS BLUE CHIP MARKETING WORLDWIDE BFG COMMUNICATIONS BECORE BDA ATTACK! MARKETING A2G ARC ALL TERRAIN ALLIED INTEGRATED MARKETING ALLIED EXPERIENTIAL ALCONE ACTIVENT MARKETING, LLC THE A TEAM