Hormel Foods has agreed to acquire natural and organic nut butter snack company, Justin’s LLC for $286 million. Justin’s, which will remain in Boulder, Colorado following completion of the deal, produces natural and organic nut butter-based products including spreads, squeeze packs, peanut butter cups, and snack packs.

“I am pleased to welcome Justin’s into the Hormel Foods family,” said James P. Snee, Hormell president and chief operating officer, in a company statement. “We are excited to work together with the Justin’s team to bring these great products to even more consumers, leveraging key Hormel Foods resources to drive continued innovation and growth to this on-trend category.”

The acquisition of Justin’s comes one year after Hormel acquired natural and organic meat company, Applegate Farms for $775 million. This marked the largest deal on record for Hormel, and together with the deal for Justin’s, speaks to the continuing efforts of the group’s chief executive, Jeffrey M. Ettinger, to further diversify the company after buying Skippy in 2013, and CytoSport, the maker of Muscle Milk last year.

As mainstream consumers are increasingly seeking out products with minimal ingredient lists, that have been humanely raised without antibiotics, are gluten-free and grass-fed, among other criteria, Hormel is answering the call with a growing portfolio of better-for-you brands. The Justin’s acquisition satisfies this strategic growth objective and the goals of  increasing its presence in the on-the-go segment.

In addition, last month the group announced it was working to streamline and improve the ingredients in a number of its products including Hormel chili, Dinty Moore stew, and SPAM products under a new company-wide clean label initiative.

“This initiative is in alignment with our company’s continuous improvement process and better positions our products with current consumer preferences,” said Kevin L. Myers, senior vice president of R&D in a press release announcing the endeavor.

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by GAI News Staff