Campbell Soup Co. has sold its Pop Secret popcorn business to US snacks manufacturer Our Home for an undisclosed sum.
In a statement, Campbell suggested the disposal will “drive greater focus” in its snacks division. Popchips brand owner Our Home, like Campbell based in New Jersey, said the deal “significantly scales its operation”.
The Pop Secret business generated net sales of approximately $120m in fiscal 2024, Campbell said.
Chris Foley, president of Campbell’s snacks arm said, "This marks another step in our journey to strategically focus our snacks portfolio. The sale of Pop Secret will drive greater focus and accelerated growth across our snacks division and portfolio of leading brands.”
Aaron Greenwald, founder and CEO of Our Home, said: "Acquiring Pop Secret marks Our Home's expansion into the microwave popcorn category, strengthening our status as a premier independent snacking platform.
"The brand's significant MULO [multi-outlet] consumption and widespread household recognition, combined with our extensive manufacturing capabilities, create a unique platform for growth and innovation in the market."
In January, Our Home, which is also behind the Food Should Taste Good and Sonoma Creamery brands, acquired the RW Garcia and Good Health brands from fellow US snacks business Utz Brands, along with two manufacturing plants in North Carolina and Pennsylvania for $182.5m
The deal also saw Our Home take on the lease for a manufacturing facility in Las Vegas.
In June, soup, sauces and snacks giant Campbell, which owns brands including Cape Cod, Goldfish and Pepperidge Farm, revealed the Noosa yogurt business, acquired through its recent purchase of Sovos Brands, will be divested
Campbell generated fiscal 2023 net sales of $9.4bn. Reporting its third-quarter results for the period to 28 April in June, the company upgraded its full-year guidance for reported sales to 3-4%, compared to the March outlook for sales to be down 0.5% to up 1.5%, reflecting the incorporation of Sovos Brands.
The company is set to publish its full-year financial results later this week.
In a note to clients, Matthew Smith, who covers Campbell for US investment bank Stifel, said Pop Secret accounted for 1% of Campbell’s overall sales and 3% of the revenue for its snacks division.
"Divesting the business is a circa 15 basis-point benefit to Campbell’s overall rate of consumption and 30 basis-point benefit to the snacks segment," Smith said. "Over the coming months, we expect packaged foods companies will continue to actively manage their portfolios to improve their growth outlooks, both through divestitures and M&A. We view the Pop Secret divestiture positively for Campbell, focusing the snacks portfolio with minimal financial impact."
