CEO Sean Connolly stated the deal “is another step in reshaping our portfolio for faster growth.”
Conagra Brands has broadened its portfolio of meat snacks with the acquisition of Sweetwood Smoke & Co.
Founded in 2010 by athlete Ryan Wood in Colorado, Sweetwood Smoke produces a range of meat sticks smoked with hickory wood under the Fatty brand, offering flavours such as pepperoni, teriyaki, and buffalo chicken.
The ‘Fatty 2oz’ and ‘Fatty 3oz’ sticks are made with grass-fed beef and antibiotic-free pork and are also free from gluten, sugars, nitrates, and MSG. They are available in US retailers and online through Amazon.
Conagra, the Chicago, Illinois-based supplier of snacks, frozen foods, and alternative proteins, already includes the Duke’s smoked meats brand in its portfolio, a business it acquired in 2017.
Sean Connolly, Conagra’s president and CEO, commented: “The acquisition of Fatty Smoked Meat Sticks is another step in reshaping our portfolio for faster growth. Adding a premium brand such as Fatty to our growing better-for-you snack portfolio is consistent with our strategic focus on the snacking and frozen categories.”
Financial terms of the deal were not disclosed.
Wood, who is the CEO of Sweetwood Smoke, will remain with the company.
“I’m looking forward to working with Conagra to make Fatty products available to more people with big appetites for meat sticks,” Wood said.
“As a lifelong athlete and adventure enthusiast, I have always valued convenient, high-protein snacks, made with quality ingredients, which is why we created Fatty.”
New York-listed Conagra announced today (9 August) that its financial guidance for the year will remain unchanged following the Sweetwood Smoke acquisition.
The outlook for fiscal 2025, presented in July, projects Conagra to generate organic sales that are flat to down by 1.5%. The maker of Healthy Choice meals reported a 2.1% decline in the metric in the previous year up to 26 May.
Conagra also stated that the adjusted operating margin for the new year is expected to be in the range of 15.6% to 15.8%, slightly below the 2024 result of 16%, which represented a 34 basis-point improvement on the previous 12 months.