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B&G Foods Inc. Message Board

  • rutgers_88 rutgers_88 Jun 20, 2013 11:12 AM Flag

    is wish bone salad dressing next?

    A couple of articles hit this morning saying that Unilever has wishbone on the selling block with B&G a possible buyer. This does not seem like a good fit given the new focus on the snack business. Wishbone strikes me as a slow grower in a competitive segment. There would be some synergy perhaps with Emeril dressings and an opportunity to get expand wishbone into marinades.

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    • Pinnacle Foods, which sells Vlasic Pickles, Duncan Hines, Mrs. Butterworth’s and Swanson TV dinners, is now looking to expand by acquiring two more key brands - Unilever’s (NYSE: UL) Wish-Bone salad dressing and Del Monte Foods’ canned food business.

    • R88 & Captain:

      What's the unit margin for Wishbone Salad Dressings ?

      I do agree that Wishbone could blend well with Emeril and Mrs Dash products......
      however......there is a lot of branded and in house offerings in salad dressings.
      Also big competitors like Kraft and others.

      Dash, Emeril's, Pirate's Booty, Cream of Wheat are brands that do not stand
      "toe-to-toe" again major grocery firms. Strong competition usually means
      small margins.

      Is the price tag for Wishbone over $ 100 million? Yes, by a lot. A large
      price for a thin margin line hurts the balance sheet and shrinks margins.

      I think Wenner passes on Wishbone for these reasons. Sounds like a
      better deal for Conagra or Pennicle Foods, firms that need large brands
      to impact their portfolio of brands.

      This story sounds a lot like the Pringles idea from a few years back.

      I think Wenner will look seriously at brands that he can manufacture
      at the new NC facility, that he bought with Old London NYC Bagel...maybe.
      Look for more snack brand possibly.

    • It would fit their modus operandi for acquisitions.

    • The way they joked about it a bit when Wenner appeared on Cramer last night makes it seem pretty likely that it is under some consideration. Wenner said they are still well positioned to do another acquisition. Your thoughts on expanding wishbone into marinades is a plausible one, and Wenner doesn't like to buy any brand that he doesn't think has good possibilities for growth, either through better marketing, or through product line expansion by adding new varieties and flavors. They bought Mrs. Dash from Unilever, so they have done business with them before, and Wenner said that was a mutually beneficial deal.

      • 1 Reply to captainwho2
      • Captain:

        Goldman is shopping the Wishbone brands for Unilever and is asking $ 400-500 million.
        Way too much for BGS, for a brand with lots of US competition.

        Wishbone did grow 8 % last year...nice.....but the growth came from "Latin America,
        North America and Europe" BGS operates in only one of the three.

        Wenner is not really interested in this brand...cost too much. POST passed on it.

        Watch for another snack brand later in the $ 100 to $ 200 million range, maybe.

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