Daily Newsletter

08 January 2024

Daily Newsletter

08 January 2024

US sausage maker Johnsonville buys co-manufacturing partner

The Wisconsin-based business will gain two production plants in the deal.

Henry Mathieu

US-based meat products group Johnsonville has acquired its co-packer Salm Partners from Entrepreneurial Equity Partners (E2P).

Financial details were not disclosed.

Johnsonville, one of the largest sausage producers in the country, has acquired Salm’s two production plants in Denmark, Wisconsin through the deal.

Founded in 2004, Salm is a manufacturer of fully cooked sausage and hot dogs and received investment from E2P in 2020. The Salm family maintained a "significant" stake in the business, the investor said in a statement.

E2P stated that Salm had an “advantageous position in the market because of its unique technology and scarce capacity” and that the sausage maker “nearly doubled” its manufacturing capacity since 2020.

Salm co-founder Chris Salm said: “Since 2004, creating an environment where our partners can grow and develop within the organisation has been a key priority and differentiator, and we believe Johnsonville has a compatible vision for the future of the business.

“We are grateful to all our partners and look forward to seeing Salm expand its great tradition of manufacturing great-tasting, high-quality food products.”

Just Food has contacted Johnsonville for comment on the deal.

According to local reports, the sausage company is set to shutter its Meadowside facility, located on the company’s headquarters campus in Sheboygan County, Milwaukee, later this year following the acquisition.

The group reportedly stated that it expects “some workforce adjustments” to its 390 staff at the facility.

Johnsonville sells its sausages in 45 countries, producing more than 70 different varieties, including brats, grillers, Italian sausage, smoked-cooked links and breakfast sausage.

Last October, Johnsonville announced former Kraft Heinz executive Don Fussner as its new chief executive. The previous CEO Nick Meriggioli retired this month.

Europe Food and Grocery Sector Overview

In 2022, the soft drinks sector held the largest non-alcoholic beverages packaging market share, while the hot drinks sector is forecasted to register the fastest growth during 2022–27. Rigid plastics are usually a preferred choice in the non-alcoholic beverages industry because of their portability, convenience, and lightweight nature that facilitate on-the-go consumption.

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