J.M. Smucker Unloads Sweet Brands for $40MJ.M. Smucker Unloads Sweet Brands for $40M

J.M. Smucker is divesting a couple of its brands as well as private-label brands due to focus on portfolio optimization of its Sweet Baked Snacks and growing the Hostess brand.

Its Cloverhill and Big Texas brands, as well as certain private label products, to JTM Foods LLC. The $40 million transaction includes relevant trademarks and licenses and the company's manufacturing facility in Chicago, IL. Approximately 400 employees will transition to JTM Foods.

"This divestiture reflects our continued commitment to portfolio optimization to prioritize resources to support the execution of our Sweet Baked Snacks strategy, focused on growing the Hostess brand, and advancing our leadership in the sweet baked goods category," said Dan O'Leary, senior vice president and general manager, Sweet Baked Snacks and Pet. "This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity."

The divested value of the two brands and private label products generated net sales of approximately $30 million for fiscal year ended April 30, 2024, which represents a partial year of net sales reported in its Sweet Baked Snacks segment results following its acquisition on November 7, 2023. For fiscal year 2025, the Company anticipates full-year net sales from the divested value brands and private label products to be approximately $60 million.

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Smucker sold its Voortman cookie brand in October 2024 for $305 million to Second Nature Brands. The company stated the same reason as this divestiture, to focus on its Hostess brands.

Smucker acquired Hostess Brands, which included Voortman Bakery products, in November 2023 for approximately $5.6 billion. With the sale also came other popular sweet treat brands like Twinkies, Donettes, HoHos, Ding Dongs, Snoballs, Zingers, and more.