Hormel Buys Nut Butter Specialist Justin LLC for US$286 Million as Reports Bumper Sales of Refrigerated Foods

But shares in the maker of brands including Skippy and Spam fell over 8 percent to $35.62 amid weakening volume sales.

James P Snee, president and chief operating officer, said: “Our strong earnings performance in the first quarter, led by Refrigerated Foods, Grocery Products, and Specialty Foods, along with the positive momentum at Jennie-O Turkey Store, has given us confidence to raise our fiscal 2016 earnings guidance range from $1.43 to $1.48 per share to $1.50 to $1.56 per share."

 

Separately, Hormel announced the purchase of the organic nut butter specialist Justin LLC for $286m.

 

The new business will fit into Hormel's organic and natural food offering.

 

Snee added: “I am pleased to welcome Justin’s into the Hormel Foods family. We are excited to work together with the Justin’s team to bring these great products to even more consumers, leveraging key Hormel Foods resources to drive continued innovation and growth to this on-trend category.”

 

“I look forward to working with the Hormel Foods team, a company that shares our passion for innovation, quality and creating the best possible consumer experience,” said Justin Gold, founder of Justin’s. “My goal has always been to build something truly special and Hormel Foods is the right partner to make this an enduring and far-reaching brand.”