Conagra Brands (NYSE: CAG), which has Orville Redenbacher brands under its umbrella, is reportedly nearing a deal to buy Angie's Artisan treats, maker of Angie's Boomchickapop popcorn. The potential deal comes as sales of big food companies have slowed, with their staples replaced by upstart — often healthier or fresher — brands.
The people privy to this information cautioned the deal is not yet final.
For Chicago-based Conagra, the acquisition would be another step in its efforts to bolster and modernize its portfolio of brands, which also includes Hebrew National franks and Reddi-wip whipped cream. Conagra has been focused on growing and honing its branded business since shedding its private label segment for $2.7 billion in 2016.
It acquired Frontera Foods in 2016 and Duke's meat snacks' parent company earlier this year. It also sold its Wesson oil business.
The potential deal comes in the wake of other Big Food acquisitions of smaller brands, including Hershey's purchase of Krave meat jerky in 2015 and Mondelez's acquisition of Enjoy Life Foods the same year.
Snacks have been a pocket of growth for the food industry, as consumers increasingly prefer their food on-the-go. Among snacks, salty bites such as popcorn and chips reign supreme.
Salty snacks generated $27 billion in sales across U.S. retail stores in the 12 months ended April 1, 2017, according to data service Nielsen. That is more than the $21 billion spent on candy, $17 billion on cheese and $7 billion on cookies.
Shares in Conagra advanced 16 cents, or 0.5%, to $33.58 early Friday afternoon.
