Conagra in talks to sell Hebrew National to JBS

Conagra said in April 2019 that Hebrew National’s prior year sales were $ 170 million and Egg Beaters was $ 78 million. But the kosher hot dog’s popularity and cultural cache transcend the brand’s size, thanks in part to its long-running slogan, “We Answer to a Higher Authority.”

Conagra, with a market value of approximately $ 17.6 billion, has adapted its portfolio to boost its frozen foods and snack brands such as Healthy Choice and Slim Jim.

For JBS, the largest beef processor in the US, buying the company would expand its reach into grocery store meat crates at a time when consumers have shifted their food buying preferences to grocery stores and away from sit-down restaurants.

JBS has a market value of more than $ 12 billion and derives most of its revenues from the US, where it includes the Swift beef and pork processing business and Pilgrim’s Pride.

the second largest chicken supplier in the country.

Should JBS close the deal, it would expand its portfolio of consumer brands that the company wants to build. Brand-name meat products typically yield higher profits than bulk meat sold to restaurants and supermarkets in shrink-wrapped trays. In February 2020, JBS announced a $ 238 million deal to purchase Empire Packing Co. to buy, the parent company of the Ledbetter branded retail products.

The Hebrew National kosher franc was first sold in New York City in 1905, and Conagra acquired the brand’s parent company in 1993. Over the decades, all-beef hot dogs have become a staple in baseball stadiums and backyard .

In early 2019, sales of the brand were slightly behind the overall hot dog category and Conagra executives said they planned to update the marketing and include additional cuts of beef such as brisket.

Sales of stock supplies soared about a year ago when home orders began in the early days of the pandemic, shocking classics that had fallen out of favor with consumers. Hebrew National’s retail sales were up 39% in the quarter ended May 31, Conagra reported.

But demand for some packaged foods has declined as people return to restaurants and offices, prompting companies to strike deals to keep up with changing consumer tastes.

Kraft Heinz Co.

agreed in February to sell its Planters nut business to Spam maker Hormel Foods Corp.

for $ 3.35 billion. Like JBS, Hormel focuses its portfolio on brands with a high protein content.

Kraft rival Mondelez International Inc.

has signed two small deals so far this year: It agreed to buy Gourmet Food Holdings, a cracker brand popular in Australia this week, and the rest from Paleo chocolate bar maker Hu Master Holdings in January.

—Annie Gasparro contributed to this article.

Write to Jacob Bunge at [email protected] and Cara Lombardo at [email protected]