Hot dog! Hebrew National can be sold by Conagra Brands

Hebrew may soon respond to another authority. Conagra Brands Inc. is in talks to sell the famous hot dog brand to JBS SA in Brazil, people familiar with the matter said.

An agreement that people believe could also include the Egg Beaters and Odom’s Tennessee Pride brands could be valued at about $ 700 million. Any deal is probably weeks away and Conagra could eventually keep the business or sell it to someone else, people warn.

Conagra said in April 2019 that sales of Hebrew National in the previous year were $ 170 million, and Egg Beaters $ 78 million. But the popular hot dog’s popularity and cultural memory exceed the size of the brand, thanks in part to the long slogan ‘We respond to a higher authority’.

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Conagra, which has a market value of approximately $ 17.6 billion, has redesigned its portfolio to boost its frozen food and snack brands such as Healthy Choice and Slim Jim.

For JBS, the largest beef processor in the US, buying a business will expand its reach to meat shops in grocery stores at a time when consumers are shifting their food preferences to supermarkets and not seats.

JBS has a market value of more than $ 12 billion and earns most of its revenue from the US, where its businesses include Swift Meat and Pork Processing Company and Pilgrim’s Pride, the country’s second largest chicken supplier.

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If JBS were to abide by the agreement, it would expand its portfolio of consumer brands, which the company wants to build. Branded meat products tend to carry higher profits than bulk meats sold to restaurants, and supermarkets in wrapped trays. In February 2020, JBS announced a $ 238 million deal to buy Empire Packing Co., the parent of Ledbetter’s retail meat products.

Hebrew National’s kosher francs were first sold in New York City in 1905, and Conagra acquired the parent company of the brand in 1993. Over the decades, the flesh wounds have become an important part of baseball stadiums and cooking farms in the backyard.

In early 2019, the brand’s sales declined slightly under the overall hot dog category, and Conagra executives said they plan to update the marketing and take in additional beef cuts such as brisket.

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Sales of staple clothing rose about a year ago when home orders began in the early days of the pandemic, which gave a stir to classics that fell outside the consumer’s favor. Hebrew’s retail sales rose 39% in the quarter ended May 31, reports Conagra.

But demand for some packaged food has declined as people return to restaurants and offices, prompting companies to trade to keep up with the changing tastes of the consumer.

Kraft Heinz Co. agreed in February to sell its Planters nut business for $ 3.35 billion to Spam manufacturer Hormel Foods Corp. Like JBS, Hormel focuses its portfolio on brands with protein-heavy foods.

Kraft’s rival Mondelez International Inc. has signed two small deals so far this year: it has agreed to buy Gourmet Food Holdings, a cracker brand popular in Australia this week, and the rest of Paleo chocolate maker Hu Master Holdings in January.