B&G Foods Inc. reported disappointing fiscal 2024 performance and announced it is concluding a strategic review that could lead to the divestiture of its frozen and canned vegetables business, including the Green Giant and Le Sueur brands.
According to Food Business News, the Parsippany-based packaged food company initiated the review in May as part of an ongoing reassessment of its product portfolio, indicating that selling its vegetable assets might involve multiple transactions.
B&G originally acquired the Green Giant and Le Sueur frozen and canned vegetables brands from General Mills Inc. in late 2015 for USD765m in cash. The company has already made several divestments, selling the Green Giant US canned vegetable business to Seneca Foods Corp. in November 2023 and the Back to Nature plant-based snacks brand in December 2022.
The company recorded significant impairment charges in fiscal 2024, including a USD320m charge in the fourth quarter related to intangible trademark assets for the Green Giant, Victoria, Static Guard and McCann’s brands. This followed a $70.6 million goodwill impairment charge for the Frozen & Vegetables unit in the first quarter.
The Frozen & Vegetables segment experienced substantial declines, with net sales dropping 14% to USD110.1m in the fourth quarter and 16% to USD395.79m for the full year. B&G attributed the decrease primarily to the Green Giant US canned vegetables business divestiture and reductions in net pricing and volume.
The company also noted that results were negatively impacted by foreign currency effects on the cost of goods sold for products manufactured at the Green Giant facility in Mexico.
Find out more at: https://bgfoods.com/