Let’s Get Nuts: Campbell Sells Emerald Brand To Private Label Manufacturer
Campbell Soup Company has offloaded its nut and trail mix brand Emerald Nuts to private label snack maker Flagstone Foods for an undisclosed amount on Tuesday, counter to previous statements by Campbell on the strength of its snack portfolio.
Launched in 2004, Emerald Nuts was brought into the Campbell portfolio in 2018 as part of the $4 billion Snyder’s-Lance, Inc acquisition, which consolidated Emerald Nuts, Snyder’s Pretzels, Kettle Brand, Cape Cod, Snack Factory Pretzel Crisps, Pop Secret and Late July brands under a new Campbell Snacks division.
The company does not expect the divestiture to have a material impact to its fiscal 2023 financial results, said Chris Foley, Campbell Snacks Executive Vice President, in a company press release. Emerald generated $66 million in net sales for FY2022 and $46 million for the nine-month period ended April 30, 2023.
“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.”
In Campbell’s second quarter 2023 earning call, the company touted the performance of Goldfish, Kettle Chips and its cookie labels within its snacking division, which president and CEO Mark A. Clouse said “is demonstrating outstanding momentum.” Double digit growth in the last two quarters is “a validation of the strategy” to prioritize Campbell’s snack brands, he added.
Minneapolis-based Flagstone declined to comment on the deal but it does represent a part of the company’s broader mission to prioritize its own ambitions into the snack category.
The company was acquired in 2019 by private equity firm Atlas Holdings (who also own poultry business Foster Farms). Last year, Flagstone appointed Harry Overly as its new CEO to accelerate the company’s growth in snacking. Overly was previously CEO at Sun-Maid Growers of California and, before that, was a marketing executive at TreeHouse Foods.
Flagstone Foods currently operates as a private label snack nuts, culinary nuts, trail mix and dried fruit producer with three facilities located in North Carolina, Texas and Alabama. Emerald Nuts will be the company’s only branded product line.
Overly called the acquisition “transformative” for the company in a statement.
“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,” Overly added.
