J.M. Smucker Sheds Natural Beverage and Grains Businesses

American food manufacturer The J.M. Smucker Co. said Monday that the divestiture of its natural and organic beverage and grains businesses to Nexus Capital Management LP has closed.

Included in the agreement are R.W. Knudsen and TruRoots assets and trademarks, and a licensing agreement for Santa Cruz Organic beverages. The transaction also includes The J.M. Smucker Co.’s manufacturing and distribution facilities in Chico, CA, and Havre de Grace, MD.

“With the close of this transaction, we are now able to increase our focus on supporting our core brands to deliver continued growth,” Tina Floyd, senior vice president and general manager, Consumer Foods for J.M. Smucker, said in a release. “We are confident in the continued momentum of our consumer foods strategy and excited about the opportunities to build on our leadership position.”

The natural beverages and grains businesses brought in combined net sales of about $140 million during J.M. Smucker’s fiscal year that ended on April 30, 2021.

“We are extremely excited by the opportunity to acquire the Smucker’s Natural Beverage and Grains businesses,” said Damian Giangiacomo, partner at Nexus, in a statement. “We believe in each of the brand’s strong legacy and the ability to grow the business as an independent company in partnership with a strong management team, led by Bobby Chacko as chairman and CEO.”

Chacko formerly served in leadership positions at The Coca-Cola Co., Ocean Spray, and Mars Inc.

“Bobby is a dynamic CPG executive with a successful track record of generating strong innovation and growth,” stated Daniel Flesh, partner at Nexus. “His leadership and expertise will be critical as we develop this new plant-based consumer platform.”

Plans for the divestiture of the businesses were first revealed in December.