B&G Foods has successfully divested another Green Giant asset to Seneca Foods and established a supply agreement with the US food manufacturer.
This transaction, the financial details of which remain undisclosed, involves B&G Foods’ manufacturing plant located in Yuma, Arizona. Importantly, B&G will continue to produce frozen vegetable products for Seneca, reinforcing their ongoing partnership.
Seneca Foods, publicly traded on Nasdaq and a long-term collaborator with B&G Foods, confirmed in its statement that the acquisition encompasses not only the Yuma facility but also inventory and the Green Giant US frozen brand. Furthermore, the manufacturing agreement will be centered on B&G Foods’ existing plant in Irapuato, Mexico, which B&G will retain.
In 2023, Seneca Foods also secured ownership of the Green Giant shelf-stable vegetables line in the US from B&G Foods, further solidifying this partnership.
B&G Foods’ president and CEO, Casey Keller, had previously indicated the potential divestiture of remaining Green Giant assets in August. This includes both the US frozen vegetable line and the frozen and shelf-stable products in Canada. A pending deal for the Canadian arm with Nortera Foods emerged in October; Nortera is another established manufacturing partner of B&G Foods. This deal also incorporates the Le Sieur brand of vegetable products. While subject to regulatory approval, B&G anticipates this transaction will close within the current quarter.
Moreover, B&G Foods offloaded the Le Sueur shelf-stable vegetable line in the US to McCall Farms in August.
Regarding the recent divestiture, Keller stated: “Today’s sale of Green Giant US frozen represents another milestone in our ongoing effort to divest brands and product lines that are non-core to B&G Foods’ long-term strategy, sharpen our focus and reduce long-term debt.” He emphasized the advantage of reuniting the Green Giant US frozen product line with its shelf-stable counterpart under Seneca Foods’ ownership, positioning it for better growth in the food and beverage industry.
Seneca Foods’ CEO, Paul Palmby, echoed this sentiment, noting that the Green Giant brand “continues to expand” and welcomed the consolidation of its product offerings.
Later today, B&G Foods will announce its fourth-quarter and full-year financial results through December. However, these figures will not include the impact of the recent acquisition of the broth and stocks business from Del Monte Foods. B&G Foods finalized the $110 million cash deal for the College Inn and Kitchen Basics brands as part of a court-supervised sales process following Del Monte’s bankruptcy last year.
In an earlier report, B&G Foods noted a net loss of $28.1 million for the year to date as of their third-quarter results in November. Group sales reflected a 6.6% decrease, totaling $1.28 billion, while adjusted EBITDA fell by 10.4% to $187.5 million.
Keller stated at the time that “B&G Foods’ third-quarter results demonstrated significant improvement in adjusted EBITDA delivery and sequential improvement in base business net sales compared to the first two quarters of 2025.”
This focus on strategic divestitures and partnerships underscores the evolving dynamics in the food and drink business landscape, highlighting the trends and consumer preferences within the food and drink consumer trends.