Smucker mulls sale of Pillsbury, baking brands

Bloomberg

JM Smucker Co is considering a sale of its baking brands, including Pillsbury, according to people with knowledge of the situation.
The food manufacturer is working with an adviser as it weighs options for the unit, which also includes the Robin Hood flour and cereal brand and Martha White baking mixes, said the people, who asked not to be identified because the details aren’t public. The business could fetch as much as $700 million, one of the people said.
A final decision to pursue a sale hasn’t been made and Smucker may keep the unit, they said.
“We do not comment on rumour or speculation,” Smucker spokeswoman Maribeth Burns said. “We are always evaluating opportunities that support our strategic priorities, grow our business and drive shareholder value.”
Smucker bought Pillsbury, the well-recognised baking mix brand represented in ads by the giggling Doughboy, as part of its 2004 acquisition of International Multifoods Corp. The deal added an array of so-called centre-of-the-store brands, including muffin mixes and frostings, to its portfolio.
More recently, healthy-eating initiatives have increasingly drawn consumers to the perimeter of stores in search of fresh produce and less processed foods.
This shift in taste and habits have challenged US consumer-packaged food companies and cut into growth for many large, well-known brands.