Conagra Brands Acquires FATTY Smoked Meat Sticks

Rhea-AI Summary

Conagra Brands, Inc. (NYSE: CAG) has acquired Sweetwood Smoke & Co., the maker of FATTY Smoked Meat Sticks. The financial terms of the acquisition were not disclosed. FATTY products are described as protein-packed, better-for-you snacks made with high-quality pork and beef, smoked with real hickory wood. This acquisition aligns with Conagra's strategic focus on the snacking and frozen categories.

Sean Connolly, Conagra's CEO, stated that this move is part of reshaping their portfolio for faster growth. Ryan Wood, founder of Sweetwood Smoke & Co., expressed excitement about working with Conagra to expand FATTY's reach. Importantly, Conagra confirmed that this transaction would not affect its FY25 guidance issued on July 11, 2024.

Positive

• Acquisition of FATTY Smoked Meat Sticks aligns with Conagra's strategic focus on snacking category
• Expansion into premium, better-for-you snack market
• Potential for faster growth through portfolio reshaping
• No impact on FY25 guidance, suggesting a manageable integration

Negative

• None.

News Market Reaction

-0.50%

1 alert

-0.50% News Effect

On the day this news was published, CAG declined 0.50%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

CHICAGO, Aug. 9, 2024 /PRNewswire/ -- Today Conagra Brands, Inc. (NYSE: CAG) announced that it has acquired Sweetwood Smoke & Co., maker of FATTY Smoked Meat Sticks. Financial terms were not disclosed.

FATTY Smoked Meat Sticks are protein-packed, better-for-you snacks for people on the go, made with high-quality pork and beef smoked with real hickory wood.

"The acquisition of FATTY Smoked Meat Sticks is another step in reshaping our portfolio for faster growth," said Sean Connolly, president and chief executive officer of Conagra Brands. "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."

"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," said Ryan Wood, founder and chief executive officer of Sweetwood Smoke & Co. "I'm looking forward to working with Conagra to make FATTY products available to more people with big appetites for meat sticks."

The Company separately confirmed that its FY25 guidance issued on July 11, 2024, would not have been affected by this transaction.

About Conagra Brands

Conagra Brands, Inc. (NYSE: CAG), is one of North America's leading branded food companies. We combine a 100-year history of making quality food with agility and a relentless focus on collaboration and innovation. The company's portfolio is continuously evolving to satisfy consumers' ever-changing food preferences. Conagra's brands include Birds Eye^®, Duncan Hines^®, Healthy Choice^®, Marie Callender's^®, Reddi-wip^®, Slim Jim^®, Angie's^® BOOMCHICKAPOP^®, and many more. As a corporate citizen, we aim to do what's right for our business, our employees, our communities and the world. Headquartered in Chicago, Conagra Brands generated fiscal 2024 net sales of more than $12 billion. For more information, visit www.conagrabrands.com.

Sweetwood Smoke & Co. and FATTY

Founded by Ryan Wood, co-founder of Under Armour, Sweetwood Smoke & Co. introduced FATTY Smoked Meat Sticks in 2010 to address the challenge of finding high-quality protein snacks. FATTY is an authentic, provocative, attention-grabbing, lifestyle brand that drives trial on shelf, conversion and loyal, highly-valuable users with high purchase frequency. FATTY products are craveable with mainstream appeal and are known for their fantastic taste because Sweetwood only uses real hickory-smoke while also delivering better-for-you attributes and high-quality protein. In 2024, FATTY was named to the Bain & Company Insurgent Brand list, recognizing it as one of the fastest growing meat stick brands in the country.  

MEDIA:
Daniel Hare
daniel.hare@conagra.com

INVESTORS:
Melissa Napier
melissa.napier@conagra.com

 

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SOURCE Conagra Brands, Inc.

FAQ

What company did Conagra Brands (CAG) acquire on August 9, 2024?

Conagra Brands acquired Sweetwood Smoke & Co., the maker of FATTY Smoked Meat Sticks, on August 9, 2024.

How does the FATTY acquisition align with Conagra's (CAG) strategy?

The acquisition aligns with Conagra's strategic focus on the snacking and frozen categories, aiming to reshape its portfolio for faster growth.

Will the FATTY acquisition affect Conagra's (CAG) FY25 guidance?

No, Conagra confirmed that the acquisition would not affect its FY25 guidance issued on July 11, 2024.

What are the main features of FATTY Smoked Meat Sticks acquired by Conagra (CAG)?

FATTY Smoked Meat Sticks are protein-packed, better-for-you snacks made with high-quality pork and beef, smoked with real hickory wood.