1 Consumer Goods Giant's Smart Sale

The following video is from Thursday's MarketFoolery podcast in which host Chris Hill, as well as analysts Jason Moser and Joe Magyer, discuss the top business and investing stories.

In this segment, Hormel Foods (NYSE: HRL  ) has hit an all-time high today after announcing it will be purchasing Skippy brand peanut butter. The guys discuss some of the other well-known foods that Hormel makes, and whether peanut butter fits with its roster. They also discuss whether this could be a threat to the number one top dog in the peanut butter market, and how Hormel could be looking for growth in China with this move.

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  • Report this Comment On January 04, 2013, at 11:29 AM, TMFPennyWise wrote:

    Saw the CEO of Hormel on Cramer last night. Just to clarify some of your points:

    He said Skippy's 'natural' peanut butter is the fastest growing of all 'natural' brands, Also, Hormel is acquiring Skippy because Skippy is already the most popular peanut butter in China and Hormel hopes to piggy back its packaged meats distribution with the already widely distributed Skippy products. Hormel has 2 facilities in China already to jump start this plan.

    Hormel also wants Skippy for its 'center of the grocery store' presence in domestic stores. The company hopes that the Skippy acquisition will enable it to increase products offered in the peanut butter aisle.

    Hormel paid cash for the acquisition and has more in the bank and no debt. They look forward to the synergy the Skippy buy will result.

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