Bloomberg said on Nov 9th that 3 sources have noted that Conagra & BGS
might be interested in Skippy. No chance that BGS is a sincere party in
this possible deal.
Estimates now say Skippy could bring $ 500 million...too big for Wenner
but the right size for Conagra who is on a buying spy of late & seems to
need the scale vs KFRT and/or GIS.
The real reason Wenner is not interested in the stiff competition & low margins
found in the mid level quality peanut butter market. the cost and effort from
an advertising and marketing standpoint also makes Skippy not worth the price
for BGS investors.
I think Wenner talked and looked closely at the Skippy deal, for no other reason
than to see what competitors are being offered. If Pinnicle Foods did not want
Skippy, this tells investors that there is no financial reason for BGS to buy.
Wenner has said many times before that acquisition is the only way to grow
a food company & the only way to grow a profitable food firm is by adding
high margin brands...not high volume brands. Big difference.