Hormel Unloads Controlling Stake in Justin's, Shifts Portfolio to 'Nourishing Protein'
Consumer goods company Hormel Foods, which manufactures brands such as Planters, Skippy and Spam, has finalized its strategic partnership with private investment firm Forward Consumer Partners, selling off partial ownership of the Justin's brand.
Forward now owns 51% of the nut butter brand, while Hormel accounts for 49%. Justin's will operate as a standalone company, led by Peter Burns.
Hunt Killough will serve as the company's chief growth and strategy officer, Mark Doiron as chief sales officer, and Jeff Perkel returns to Justin's to serve as SVP of marketing and e-commerce. He had previously worked with the brand prior to its purchase by Hormel in 2016.
In addition, the brand brings on David Ziegert as COO and Randy Gilbride as VP of brand and commercial strategy.
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John Ghingo, president of Hormel Foods, said the new partnership provides the focus and resources to help the business grow and also reflects how Hormel Foods is thinking differently about unlocking growth for its brands.
In a recent earnings call conversation, Ghingo stated the transaction is part of efforts to focus on strategic categories and brands with long-term growth potential.
Justin's, he said, is a better fit in the hands of this partnership, given its overall size and opportunities for growth in confections — a nonstrategic category for Hormel.
"I would say, overall, our actions reflect a deliberate strategy around portfolio shaping, all intended to streamline and position our company for sustainable profitable growth and allowing us to really focus on that premise I mentioned, which is nourishing protein solutions," Ghingo added.
