Announced on 2/8/23, the J.M. Smucker Co sells most of its pet food businesses to cereal maker Post Holdings. In the $1.2 billion deal ($700 million in cash and approximately 5.39 million shares of Post Holdings, Inc. stock), Smucker is selling the brands Rachael Ray Nutrish, 9Lives, Kibbles ‘n Bits, Nature’s Recipe, and Gravy Train. Smucker’s will continue to own Milk-Bone and Meow Mix.
Selling these brands for $1.2 billion, but what did Smucker’s buy them for?
Smucker’s entered the pet food market in 2015 with the purchase of Big Heart Pet Brands (formerly Del Monte Foods). The Smucker’s purchase included the brands Meow Mix, Milk-Bone, Kibbles ‘n Bits, 9Lives, Natural Balance, Pup-Peroni, Gravy Train, Nature’s Recipe, Canine Carry Outs, and Milo’s Kitchen – and the 2015 price tag for these brands was $6 billion.
And then in 2018 Smucker’s purchased Ainsworth Pet Nutrition, manufacturer of Rachael Ray Nutrish pet food for $1.7 billion.
In three years, the J.M. Smucker Company spent $7.7 billion for multiple pet food brands.
And then the sales…
Smucker’s sold Natural Balance pet food in January 2021 to Nexus Capital for only $50 million. And this sale of Smucker’s pet food brands Rachael Ray Nutrish, 9Lives, Kibbles ‘n Bits, Nature’s Recipe and Gravy Train to Post at $1.2 billion (selling all of these brands for less than what they paid for Nutrish alone just 5 years ago).
Which means…
Original investment: $7.7 billion.
Sales prices: $50 million + $1.2 billion.
Smucker’s is left owning Meow Mix and Milk-Bone costing them $6.45 billion for these two brands.
We wondered how many times the brands in this sale (or still owned by Smucker’s) have changed ownership. And we found…
Milk-Bone has been owned by 6 different corporations.
Meow Mix has been owned by 5 different corporations.
Natural Balance has been owned by 5 different corporations.
9Lives has been owned by 6 different corporations.
Kibbles ‘n Bits has been owned by 6 different corporations.
And Rachael Ray Nutrish has been owned by 3 different corporations.
Who will own them next?
Wishing you and your pet(s) the best,
Susan Thixton
Pet Food Safety Advocate
Author Buyer Beware, Co-Author Dinner PAWsible
TruthaboutPetFood.com
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Linda Saslow
February 15, 2023 at 9:50 am
Yikes!
Sarah
February 15, 2023 at 10:58 am
Maybe selling and re-selling is actually good because of this: as MORE people become aware of just what is going into their beloved pets’ bellies, MORE people are further educating themselves and pivoting toward MORE nutritious and LESS TOXIC foods. MORE people are reading Truth About Pet Food and MORE are reading Dog Food Advisor. MORE people are reading Petsumer Report. MORE people are reading Whole Dog Journal — plus an increasing number of nonprofit reviewing organizations that care MORE about our pets than about earning advertising dollars. Which means this: some of those grocery store pet food brands are losing MORE money all the time so corporations get traded like losing sports players and sometimes entire teams. Me? I SUPPORT PET FOOD BRANDS THAT ARE WINNING PLAYERS AND WINNING TEAMS THAT TRULY CARE ABOUT OUR DOGS AND CATS (and small furries and chickens and exotics!) Like Susan the hardest working person on this topic!!!
T Allen
February 15, 2023 at 2:35 pm
This is great! It can only mean one thing… Selling toxic garbage masquerading as pet food has become a money loosing proposition! YEAH! Eventually the companies that are producing decent feeds out of clean waste will be the mainstay of the industry. Thanks Susan! This is only happening because of your dedication!
Cannoliamo
February 15, 2023 at 4:27 pm
Corporations are in it for the profit …. not for the pets. I bought EVO cat food for my 7 cats for 10 years until Mars bought the brand and discontinued it, with the explanation that
“It wasn’t an easy decision to make, but we ultimately decided to discontinue EVO™ because the food simply became too expensive to produce at the level of quality we demand at Mars Petcare.” May 28, 2019
Turbota
February 17, 2023 at 10:10 am
It doesn’t matter who the ultimate owner of the brand is, as long as the quality is good. If the composition of the feed is good, it’s great. If it’s not, you shouldn’t buy it, no matter who owns the brand.
Kenneth Chaffin
September 20, 2023 at 5:30 pm
Thank you, Susan. You are doing God’s Work.