Smucker to acquire Rachael Ray dog food brand, may sell Pillsbury
The maker of Smucker’s jams is picking off a celebrity chef ’s dog food brand even as it considers disposing of some of its top human-food brands.
J.M. Smucker, which also has Folgers coffee and other products, has fetched a deal to acquire the maker of celebrity chef Rachael Ray-branded dog food. But it also said it is looking to sell its $370 million U.S. baking business, including the Pillsbury, Hungry Jack and Martha White brands.
The $1.9 billion acquisition comes as the upscale pet-food segment looks increasingly delectable to human-chow manufacturers. It reflects a trend in which major food companies are trying to diversify their businesses and distance themselves from packaged and processed foods as American consumers choose items perceived as more natural.
General Mills, maker of Cheerios cereal and Yoplait yogurt, reached a deal in February to acquire Blue Buffalo Pet Products for about $8 billion.
For Smucker and General Mills, premium pet food holds promise. “Wholesome” products make up 10% of the pet food market and are gaining market share.
J.M. Smucker will acquire Meadville, Pa.-based Ainsworth Pet Nutrition, maker of Rachael Ray Nutrish.
Nutrish’s premium dry dog food will add to J.M. Smucker’s existing lineup of pet food products, including its Nature’s Recipe brand.
“Ainsworth Pet Nutrition is an excellent strategic fit for our Company, as the Rachael Ray Nutrish brand adds another high-growth, on-trend brand to our pet food portfolio,” J.M. Smucker CEO Mark Smucker said in a statement. “Their team has done a tremendous job growing this business, building Nutrish into one of the most recognizable premium pet food brands in the United States.”