J.M. Smucker is making a $4.6 billion play for a bigger slice of the American snack business with an agreement to buy Hostess Brands TWNK 19.14%increase; green up pointing triangle.
Acquiring the Twinkies maker would push Smucker, known for its jams and jellies, further into fast-growing grocery-store aisles, similar to the company’s move into pet food eight years ago. It comes as U.S. consumers binge on snacks, benefiting cookie and candy giants while other food companies vie for bigger shares of the snack market, where sales climbed to $181 billion last year, according to research firm Circana Group.
Chief Executive Mark Smucker said in an interview that the Hostess brands bring a way to reach consumers during new parts of the day, beyond when they might reach for Smucker’s Uncrustables sandwiches or Jif squeeze peanut butter.
Read the full story on The Wall Street Journal here.