J.M. Smucker Co., famous for its jams, jellies and related products, is about to become the proud owner of the beloved Hostess Brands. In a $5.6 billion deal, the Ohio-based company will acquire the maker of Twinkies, Ding Dongs and other goodies. This acquisition will add numerous iconic products to Smucker’s growing portfolio of sugary treats. Critics of the merger are raised questions, as Hostess Brands are known for their unhealthy food products, while Smucker’s has long been in the “clean label” category of food. But with this deal, it seems unlikely that the Twinkie-maker will be getting a health-food makeover anytime soon.
1. “J.M. Smucker: Investing Big in Sweets
J.M. Smucker, the maker of iconic popular brands like Smuckers, Folgers and Jif, recently announced a $285 million investment in sweet snacks. The company is betting big on the participation of consumers in snack foods, with a goal of increasing the segment of their portfolio devoted to sweet treats.
- Further Expansion of Folgers: As part of the new investment, J.M. Smucker has committed to expanding its iconic Folgers brand. This will include a number of new products that seek to capitalize on the growing trend of health-conscious snacking.
- Additional Acquisition: The investment is also supporting an acquisition that brings J.M. Smucker new businesses and capabilities. The company purchased Sahale Snacks, adding the organic snack maker to its roster. This move provides the company with a foothold in the ever-growing organic snacks market.
The investment, which is a bet on the ongoing popularity of snack foods, is expected to pay dividends for the company in the years ahead. With the increased presence in both traditional and organic snacks, J.M. Smucker hopes to gain a significant portion of the snack market for itself.
2. Hostess Brands in the Hands of ProminentFood Giant
It is undeniable that Hostess brands have become popular household favourites in many countries worldwide. Offering everyone delectable snacks, there is no wonder why these brands have been embracing in such an enthusiastic manner. The food giant Grupo Bimbo recently acquired the famous Hostess brands to further expand their portfolio.
The business opportunities are plenty with Hostess. From Twinkies, Ding Dongs and Ho Ho’s, the possibilities are seemingly endless. The expanding potential of Grupo Bimbo is most certainly not going unnoticed. After all, Hostess offers a variety of delicious treats, such as:
- Fudge covered Devil Dogs
- Cinnabon inspired Cinnamon Buns
- Merriwether’s Strawberry Shortcakes
- Donettes
- Kathy’s Famous Cupcakes
One can certainly conclude that Hostess is offering something that most people can appreciate. Offering a delightful selection of snacks on a global scale, Hostess alongside its new parent company Grupo Bimbo is already making an impact in the food industry.
3. J.M. Smucker’s 5.6 Billion Dollar Hostess Binge
An Unprecedented Move
J.M. Smucker & Co. stunned the food and beverage world when they announced in June 2018 that they were paying $5.6 billion to acquire the iconic brand Hostess Brands. The move was unprecedented on two fronts: first, it was by far the largest acquisition made by the company in its more than one-hundred and twenty-five year history; second, it was one of the biggest mergers and acquisitions ever in the food industry. The purchase meant that Smucker instantly gained control of iconic brands such as Twinkies, Ho Hos, Ding Dongs and Donettes.
Why The Binge?
The acquisition is seen as part of a larger strategic move on the part of Smucker to diversify away from their traditional core business of jams and jellies. By gaining control of the plethora of well-known and beloved snack brands, the company can tap into new markets and ensure a steady flow of revenues for years to come. In addition to the direct benefits to Smucker’s portfolio, Hostess’s operations are also a complement to the company’s existing foodservice business.
- Growth in new markets
- A complementary portfolio
- Increased revenues
4. Munchies Market Reenergized by Big BusinessMoves
The Munchies Market is a hive of activity, reenergized by an influx of big business moves and new supplier selections. Long-established restaurants are shaking up their menus, while modern eateries are replacing takeaways for an inventive cultural experience. Here’s a glimpse of some of the trendiest and tastiest changes coming to the market.
Authentic Cuisine: Taste buds have been tantalized over recent months, with fresh faces introducing food scenes from around the world. Ever popular Thai, Mexican, and Italian dishes have been joined by Greek, Brazilian, and Asian eateries for an international twist on comfort favorites.
- Soi Thai Street Kitchen – bringing authentic Thai street food to the city
- Taco marvelouso – guac, tacos, and margaritas made with love
- Ligurian masterclass – found family recipes and Ligurian culture served up straight.
Food Delivery Revolution: The times are changing; traditional takeouts are no longer the only option when you’re feeling too lazy to cook. Modern tech now allows restaurants to contact customers directly, creating a unique eating experience without having to leave your home.
- Hyperactive hump day care package – fast delivery of comfort foods, desserts, and beverages
- Delivery King – Timely and convenient online food ordering solutions
- eats@myplace – Instant restaurant-style meals delivered straight to your door
The Munchies Market is no longer just the place to grab a quick bite; it’s a vibrant hub of culture, flavor, and convenience. What’s next – mobile dining? Who knows, the possibilities are limitless!
The acquisition of Hostess Brands by J.M. Smucker is the latest move in a larger movement of big-name brands joining forces to expand and thrive in a disruptive market. With the resources and confidence of a well-established company now part of the Hostess Brands family, the future sure looks sweet for both.
