Smucker’s Completes Grains, Drinks Divestment; Ex-Ocean Spray CEO Chacko To Run New Business

The J.M. Smucker Co. completed the process of divesting from its natural and organic and grains businesses today.

Under the terms of the $110 million transaction, which was announced in December 2021, private equity group Nexus Capital Management has acquired all assets and trademarks for brands R.W. Knudsen and TruRoots, together generating net sales of around $140 million in fiscal year 2021. The deal also includes licensing rights to produce Santa Cruz Organic beverages and manufacturing and distribution facilities in Chico, Calif. and Havre de Grace, Maryland. Santa Cruz Organic nut butters, fruits, syrups and applesauce are excluded from the deal.

“With the close of this transaction, we are now able to increase our focus and resources on supporting our core brands to deliver continued growth,” said Tina Floyd, Senior Vice President and General Manager, Consumer Foods. “We are confident in the continued momentum of our consumer foods strategy and excited about the opportunities to build on our leadership position.”

Nexus announced that CPG industry veteran Bobby Chacko will be running the acquired businesses under a single independent company as its chairman and CEO. In 2020, Chacko was dismissed as president and CEO at Ocean Spray Cranberries Inc. after violating the company’s anti-harassment policy. His previous experience includes time at the Coca-Cola Company, AB InBev, Mars Drinks and GE Capital.

“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 press release. “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 Bobby Chacko as Chairman and CEO.”

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