June 5, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Campbell Soup Company announced it has divested Emerald Nuts to Flagstone Foods, one of the top producers and distributors of private label healthy snacks in the U.S. for an undisclosed amount.  

Chris Foley, executive vice president and president, Campbell Snacks, explained the reasoning behind the move stating, “The sale of the Emerald business is part of our ongoing strategic process to create even greater focus on driving accelerated growth across our Snacks division and power brands.”

Campbell acquired Emerald Nuts as part of its acquisition of Snyder’s-Lance, Inc. for $4.87 billion in 2018 – the largest acquisition in its history, and a bid to diversify its business and strike out to gain a foothold in some of the most rapidly growing segments in the food industry. 

“This acquisition will dramatically transform Campbell, shifting our center of gravity and further diversifying our portfolio into the faster-growing snacking category,” said Denise Morrison, who was president and CEO, Campbell’s Soup, at the time of the acquisition. 

This deal brings one of the leading nut brands in the U.S. into Flagstone’s portfolio. In business for nearly two decades, Flagstone operates three plants in Robersonville, North Carolina; El Paso, Texas; and Dothan, Alabama, and sources, processes, packages, and distributes nuts, trail mixes, and good-for-you snacks on a national scale. 

In 2019, Flagstone Foods was acquired by Atlas Holdings. In late 2022, Harry Overly was appointed to the role of CEO with the goal of accelerating the company’s growth. 

“Flagstone Foods has long been trusted by the nation’s premier retailers to provide the highest quality snacks,” said Overly. “Emerald has been providing high-quality branded snack nuts since 2004 and is now the go-to option for consumers seeking better-for-you snacking on the go.”

“Adding Emerald Nuts to our portfolio establishes a new avenue for Flagstone to service our customers with innovative snack products and unites two industry leaders with a shared commitment to the highest levels of product quality and innovation.”

As Overly came onboard, Emerald Nuts generated net sales of $66 million in FY2022, and $46 million for the nine months period ending April 30, 2023.

Health consciousness, convenience, variety, natural appeal, and culinary versatility have all contributed to the increasing popularity of nuts as a go-to snack option for many consumers. As a result, the nut industry has experienced a sustained period of growth. 

As the snack food market continues to expand, nuts are expected to maintain their popularity and market share. Increasing awareness of the importance of mindful eating has played a significant role in the growth of the segment, as people actively seek snacks that provide nutritional value and align with their dietary preferences.

From its current 2022 value of $66.6 billion, the global nut market is expected to see a CAGR of 4.2 percent to reach a value of $92.4 billion by 2030, according to Indexbox, and the global snack market is expected to grow at a CAGR of 6.51 percent, or by $300.56 billion, between 2023-2027. 

“Our Flagstone team is excited to welcome Emerald as a transformative acquisition to our portfolio and we’re looking forward to continuing to drive growth for both Flagstone and our retail partners.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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