J.M. Smucker To Sell Cloverhill and Big Texas Brands
J.M. Smucker is dropping its Cloverhill and Big Texas brands.
The company plans to sell off the products, along with certain private-label SKUs, to JTM Foods for approximately $40 million.
The deal includes trademarks and licenses and a manufacturing facility in Chicago, Ill., with about 400 employees that will also transition over.
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Recent Portfolio Shifts
J.M. Smucker includes a portfolio of well-known brands such as Folgers, Milk-Bone, and Donettes across the pet food and snacks, away from home, coffee, sweet baked snacks, and frozen handheld categories.
Last year, J.M. Smucker finalized its $305 million sale of the Voortman brand to Second Nature Brands. The company has been optimizing its portfolio, with its acquisition of Hostess for $5.6 billion, announced in 2023, its largest purchase yet.
The company’s recent divestitures have resulted in approximately $30 million in net sales for the fiscal year ended April 30, 2024. For fiscal year 2025, the company expects the divested value and private label brands to total an estimated $60 million.
The Cloverhill and Big Texas deal will likely close in Q4 of J.M Smucker’s current fiscal year ending April 30, 2025.
Dan O'Leary, SVP and general manager, for the company's sweet baked snacks and pet businesses, said the divestiture is part of the company's ongoing portfolio optimization, which looks to prioritize resources to support the execution of its Sweet Baked Snacks strategy.
This plan is focused on growing the Hostess brand and advancing leadership in the sweet baked goods category.
"This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity," he added.
