Smucker CEO on merger with Hostess: ‘We compliment each other so properly’

Mark Smucker, CEO of meals and beverage producer J.M. Smucker, mentioned his firm’s acquisition of Twinkie-maker Hostess Brands on Monday with CNBC’s Jim Cramer. Smucker stated this transfer will assist the corporate develop its snack choices, noting how the 2 manufacturers compliment each other.

Smucker highlighted his firm’s Uncrustable snack, a crust-less peanut butter and jelly sandwich, as a product that dovetails properly with Hostess’s shelf-stable candy treats.

“We compliment each other so properly. I imply, they’re doing a wonderful job within the comfort channels,” he stated. “We’re simply now launching an Uncrustable that has a five-day shelf life and might dwell in that area. And we now have nice power in our core grocery channels in addition to our experience in advertising and marketing, so there’s loads of complimentary capabilities which can be actually going to permit each companies to proceed to develop right here.”

The firm is about to purchase Hostess for $5.6 billion, with the deal anticipated to shut by Smucker’s third fiscal quarter, which ends in January, CNBC reported. Smucker has additionally agreed to take on Hostess’s roughly $900 million in debt.

Smucker stated he is not nervous customers will lose their style for candy snacks, at the same time as weight problems medication and emphasis on wholesome consuming permeate the U.S. zeitgeist.

“We view that persons are at all times going to need to snack. And there are completely different occasions of day when someone may need a protein-based snack like peanut butter with celery, however other occasions, individuals need one thing a little bit extra indulgent,” he stated. “Hostess has accomplished such a pleasant job creating single-serve small parts that enable individuals to have snacking, candy snacks, carefully.”