Campbell Soup Company has announced the sale of the Emerald Nuts business to Dothan, AL-based Flagstone Foods, one of the largest manufacturers and distributors of private label healthy snacks in North America. Terms of the transaction were not disclosed.
For nearly 20 years, Emerald Nuts has built a reputation for quality and innovation, known for items such as grab-and-go 100 calorie packs and assorted glazed nut products.
“The sale of the Emerald business is part of our ongoing strategic process to create even greater focus on driving accelerated growth across our Snacks division and power brands,” said Chris Foley, executive vice president and president, Campbell Snacks.
Campbell acquired the Emerald nuts business as part of the 2018 Snyder’s-Lance, Inc. acquisition. The Emerald business generated net sales of $66 million in fiscal 2022 and $46 million for the nine-month period ended April 30, 2023. The company does not expect the divestiture to have a material impact to its fiscal 2023 financial results. The transaction is expected to be dilutive to earnings per share by approximately $0.01 in fiscal 2024, reflecting the timing of a transition service agreement and cost actions.
"Flagstone Foods has long been trusted by the nation's premier retailers to provide the highest quality snacks. Emerald has been providing high-quality branded snack nuts since 2004 and is now the go-to option for consumers seeking better-for-you snacking on the go. Adding Emerald Nuts to our portfolio establishes a new avenue for Flagstone to service our customers with innovative snack products and unites two industry leaders with a shared commitment to the highest levels of product quality and innovation. Our Flagstone team is excited to welcome Emerald as a transformative acquisition to our portfolio, and we're looking forward to continuing to drive growth for both Flagstone and our retail partners," said Harry Overly, chief executive officer of Flagstone Foods.
In its 2Q earnings report, Campbell reported that its Snack Division net sales, both reported and organic, increased 15% driven by sales of power brands, which were up 20%. Sales growth was driven by increases in cookies and crackers, primarily Goldfish crackers and Pepperidge Farm cookies, and in salty snacks, primarily Snyder's of Hanover pretzels, Snack Factory pretzel crisps, and Kettle Brand potato chips.
All of the salty snack brands listed were part of the Snyders-Lance acquisition.