December 4, 2023

Planter peanuts

Daniel Acker | Bloomberg | Getty Images

Kraft Heinz is about to sell its Planters brand to spam owner Hormel for around $ 3 billion, the Wall Street Journal reported Tuesday.

Hormel stock rose more than 6% on the report before closing 3.9% at $ 48.75. Kraft Heinz shares closed less than 1% at $ 33.16.

Citing people familiar with the matter, the newspaper said the deal could be announced as early as next week if talks don’t fall apart.

As part of Kraft Heinz’s multi-year turnaround effort, executives told investors in September that they had switched from looking at the portfolio as a line of products to how to meet diverse consumer needs. The company has also removed less popular products from its range and sold part of its cheese business to Lactalis for $ 3.2 billion.

Planters is known for its nuts and snack mixes and its mascot, Mr. Peanut. In recent years, the brand’s biggest hit came from an ad campaign last year that killed Mr. Peanut and was resurrected as a baby in his Super Bowl commercial. The campaign sparked a New York cartoon and a “Saturday Night Live” cold open. This year, the brand is giving away the $ 5 million it would have spent on an ad during the big game.

Kraft Heinz came to Planters through a series of mergers. Kraft’s acquisition of Nabisco Brands in 2000 brought the nut brand to its portfolio, then Kraft merged with Heinz in a mega-deal in 2015.

Kraft Heinz and Hormel declined to comment.

Kraft Heinz stock is up 13.6% over the past year, increasing its market value to $ 40.5 billion. Hormel’s stock is valued at $ 26.3 billion after rising 3% over the past 12 months.

Read more about the Planters sale here.