US-based snacks manufacturer Second Nature Brands is set to acquire JM Smucker’s Voortman cookies brand for an all-cash deal valued at $305 million. This strategic move highlights the ongoing trends in the food and beverage industry, particularly the demand for healthier snack options.
JM Smucker has been offering zero-sugar cookies and wafer cookies under the Voortman Bakery brand specifically for the North American market. This acquisition includes the Voortman brand itself, its manufacturing facility located in Ontario, and a workforce of approximately 300 employees.
The background of this transaction reveals that JM Smucker obtained Voortman as part of its acquisition of Hostess Brands last year for $5.6 billion. Hostess previously acquired Voortman in 2019 for $320 million. According to JM Smucker, the Voortman cookies brand generated approximately $65 million in net sales for the fiscal year ending April 30, 2024. For the fiscal year 2025, the company is projecting net sales to reach around $150 million.
Second Nature Brands’ acquisition of Voortman marks its second purchase from JM Smucker; last year, it acquired Sahale Snacks. This ongoing strategy emphasizes how the food and drink business is adapting to consumer demands for healthy snacks.
The transaction is part of JM Smucker’s efforts to optimize its portfolio, allowing the company to reallocate resources towards its core growth brands. Second Nature anticipates that acquiring Voortman will elevate its annual sales beyond the $500 million mark. The Michigan-based company’s brand portfolio already includes Kar’s Nuts, Second Nature Snacks, Sanders, and Brownie Brittle.
Victor Mehren, CEO of Second Nature Brands, expressed, “This strategic and transformative acquisition fits perfectly into our better snacking and treating portfolio of brands. The acquisition of Voortman broadens our scale within the cookie category and unlocks new opportunities and capabilities for future growth in the US and Canada.”
JM Smucker plans to utilize the proceeds from the sale to reduce its debt. The deal is expected to close in the third quarter of the fiscal year ending April 30, 2025. Mark Smucker, President and CEO of JM Smucker, stated, “This decision reflects our continued commitment to portfolio and resource optimization to focus on our largest growth opportunities as a company.”
Analyst Robert Moskow from TD Cowen commented on the deal, noting its disappointing aspects, particularly how the brand was sold for less than what Hostess had paid. He highlighted the peculiarity of Smucker divesting Voortman, which had proven synergies and commercial success, explaining, “It is particularly unnerving to see Smucker part with the business at a price $15 million below what Hostess paid for it, even though the sales are 56% higher.”
This acquisition showcases significant movement within the food and drink consumer trends, aligning with the industry’s shift towards healthier and more sustainable snack options. As these companies reshape their portfolios and strategies, the food and beverage landscape continues to evolve, presenting new opportunities for growth and innovation.
