The J. M. Smucker Company (NYSE: SJM) and Basic American Foods today announced the sale of and a licensing agreement for Hungry Jack(R) brand potato products that will allow Basic American Foods to expand its retail presence in the potato business.
The transaction includes Hungry Jack brand potato products and Idaho(R) Spuds(TM) branded potatoes. Hungry Jack pancake mix and syrup products will both remain part of the Smucker family of brands.
"The Hungry Jack brand has been a part of family meals for many years and Hungry Jack pancake mixes and syrups will continue to be an important part of our leading role in the breakfast category. The divestiture of this potato business allows us to better align our Company's resources while at the same time provides Basic American Foods with a product line that is a perfect strategic fit in its portfolio," said Steve Oakland, president of U.S. retail for Smucker's(R), Jif(R) and Hungry Jack.
Basic American Foods has been a longstanding manufacturer and co-packer of the Hungry Jack and Idaho Spuds brands and is the leading producer of dehydrated potatoes in North America. The licensing agreement allows Basic American Foods to build on its already successful foodservice business by extending into the retail channel.
"We are very excited to welcome the Hungry Jack and Idaho Spuds potato product brands into our family at Basic American Foods," said Loren Kimura, president and CEO of Basic American Foods. "We have an established history of excellence both with these products and within the potato products category. Basic American Foods is committed to a smooth transition of the business from The J. M. Smucker Company, and we look forward to expanding our retail business well into the future."