Kraft Heinz (NASDAQ: KHC) is in negotiations to sell its Planters brand to Hormel for about $3 Billion U.S., according to the Wall Street Journal. Hormel’s stock was up 6% following the news, meanwhile Kraft rose less than 1%.
The journal noted that an agreement could be announced as soon as next week if it were to go through. The novelty would be Hormel’s biggest venture yet.
Planters, which has a focus on nut products, surged at the start of the pandemic as customers stocked up before lockdowns. However, with less restrictions, sales began to diminish and the company was forced to restructure its business.
In September, Kraft Heinz sold its natural cheese business to France’s Groupe Lactalis for a total of $3.2 Billion U.S.. Furthermore, Mondelez International Inc, acquired chocolate-bar maker Hu Master Holdings just last month.
The company has fought to stay afloat after Kraft and Heinz joined forces five years ago.
Analysts find it is slow to update older brands and is not committed to providing adequate marketing resources.
As part of Kraft Heinz’s multiyear turnaround effort, executives told investors in September that they have changed from looking at its portfolio as a series of products to how it can fulfill different consumer needs. The company has also been trimming less popular products from its lineup and sold part of its cheese business to Lactalis for $3.2 billion.
KHC shares dipped three cents to begin Wednesday at $33.13
