Dive Brief:
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Conagra Brands purchased Sweetwood Smoke & Co., the maker of Fatty Smoked Meat Sticks, for an undisclosed amount, the Chicago company said in a statement.
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The packaged food giant said Fatty is positioned as a premium, better-for-you product. It contains responsibly sourced grass-fed beef, antibiotic-free pork and does not have gluten, unnecessary sugars, nitrates and MSG.
- Since Sean Connolly took over as Conagra’s CEO in 2015, he has doubled down on the company’s strong presence in snacks and frozen foods while reconfiguring its portfolio to accelerate growth.
Dive Insight:
Few companies are as synonymous with on-the-go meat snacks as Conagra.
The CPG company’s portfolio already includes Slim Jim and Dukes, another premium meat snack brand with hatch green chile and hickory peach BBQ flavors. Fatty further builds out Conagra’s presence in meat snacks, enabling it to tap into high consumer demand for protein, portable offerings and healthier products.
“The acquisition of FATTY Smoked Meat Sticks is another step in reshaping our portfolio for faster growth,” Connolly said in a statement. “Adding a premium brand such as FATTY to our growing, better-for-you snack portfolio is consistent with our strategic focus on snacking and frozen categories.”
Conagra has largely shied away from acquisitions since its $10.9 billion purchase of Pinnacle Foods in 2018, a deal that added well-known brands such as Birds Eye, Duncan Hines and Vlasic to the mix. Instead, the company has focused on innovating its core business and paying down debt it took on as part of the purchase.
Still, Connolly told Food Dive in February that Conagra wouldn’t turn down the right deal if it came along in frozen and snacks. He noted Conagra would likely prioritize “smaller bolt-on-stuff,” a strategy evident in its addition of Fatty.
The acquisition comes as Conagra and other food companies grapple with a downturn in consumer spending. In its fourth quarter, Conagra said organic net sales for its grocery and snacks segment decreased 2.1%. The company also forecast that sales in its 2025 fiscal year will be flat to down 1.5%. As Conagra looks for opportunities to spur growth, trendy brands like Fatty could play a pivotal role.
