P&G brew a major coffee deal
The number one ground coffee brand in the US has been involved in a merger deal worth approximately US$3.3 billion.
The J. M. Smucker Company and The Procter & Gamble Company yesterday announced the signing of a definitive agreement to merge the Folgers coffee business into The J. M. Smucker Company.
Folgers is currently owned by global giant Procter & Gamble, responsible for the Gillette and Pringles brands among many others, and is the leading producer of retail packaged coffee products in the United States.
Jams and jellies maker Smucker, responsible for a number of prominent US brands including Smucker’s Jams, Crisco cooking oil and Hungry Jack Pancake Mix, believes that the addition of the Folgers business will provide significant benefits to their ever expanding company.
“Folgers is a perfect strategic fit within our portfolio of leading and iconic North American food brands,” said Tim Smucker, Chairman and Co-Chief Executive Officer of Smucker. “Folgers will become our tenth number one brand in North America and will further enhance the high quality, great tasting, diverse product offerings that consumers expect from Smucker.”
“Coffee is the perfect complement to breakfast or dessert — two areas we know a lot about,” added Richard Smucker, President and Co-Chief Executive Officer of Smucker. “Like Smucker’s, Jif, Crisco, and Pillsbury, the Folgers brand has exceptional equity with consumers.”
Alan Lafley, Chairman of the Board and Chief Executive Officer of Procter & Gamble, claimed the sale of the Folgers brand was part of P&G’s streamlining policy. “Strategically, P&G has exited certain categories in order to focus on our core businesses and enhance the growth profile of the portfolio,” he said. “The structure and terms of this transaction deliver on the goals we stated for the separation of the coffee business from P&G.”