Smucker Ditches the Doughboy

JM Smucker (SJM) announced today that it’s selling its Pillsbury baking division. This was hardly a surprise. We knew this move was coming for some time.

J.M. Smucker is selling its U.S. baking business to a private-equity firm for $375 million, including debt, mirroring moves by other food companies to divest decades-old brands whose sales are in decline because of changing consumer tastes.

Smucker said Monday that Greenwich, Conn.-based Brynwood Partners would buy Funfetti and Pillsbury baking mixes and Hungry Jack pancakes, among other brands. Smucker put the baking business, which generated 5% of its revenues, up for sale in April.

While the fluffy, white Pillsbury’s Doughboy wearing a chef’s hat charmed Americans into buying the brand for decades after his 1965 debut, his effectiveness has waned.

Mark Smucker, chief executive of the Orrville, Ohio company, said in February that he hadn’t invested much in Pillsbury over the prior year because it would have hurt profit. “We consciously chose not to go deep,” he said on an earnings call.

This was the right move for Smucker, and they’ll get some cash from the deal.

Posted by on July 9th, 2018 at 4:30 pm


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