ConAgra Sells Beef Jerky Brand
Marfrig Group, producers of beef and beef by-products in Latin America, acquires the Pemmican beef jerky brand and related production equipment from ConAgra Foods Inc. through its subsidiary Mirab USA Inc. for $25 million in cash.
"As one of the world's largest producers of beef, Marfrig can leverage its capabilities to produce Pemmican more efficiently, while also investing more heavily in innovation and marketing," says Paul Lapadat, president, Consumer Foods Snacks, ConAgra Foods. "We remain committed to our snacks business, and will be focusing our energies moving forward on our core snacks portfolio, which includes Slim Jim and our popcorn and seeds products."
ConAgra and Marfrig Foods also enter into a sales and distribution agreement for the five years up to July 20, 2013, under which ConAgra Foods will sell and distribute the Pemmican brand beef jerky for Marfrig within its existing Consumer Products Division. Marfrig will also co-pack "Slim Jim" beef jerky for ConAgra Foods pursuant to a co-pack agreement between ConAgra Foods and Mirab USA. This agreement does not include the "Slim Jim" beef stick business. Marfrig has diversified sources to produce beef jerky from its units in Brazil, Argentina and Uruguay with a combined capacity of 27 tons per day and a packaging facility in Mirab USA.
"As one of the world's largest producers of beef, Marfrig can leverage its capabilities to produce Pemmican more efficiently, while also investing more heavily in innovation and marketing," says Paul Lapadat, president, Consumer Foods Snacks, ConAgra Foods. "We remain committed to our snacks business, and will be focusing our energies moving forward on our core snacks portfolio, which includes Slim Jim and our popcorn and seeds products."
ConAgra and Marfrig Foods also enter into a sales and distribution agreement for the five years up to July 20, 2013, under which ConAgra Foods will sell and distribute the Pemmican brand beef jerky for Marfrig within its existing Consumer Products Division. Marfrig will also co-pack "Slim Jim" beef jerky for ConAgra Foods pursuant to a co-pack agreement between ConAgra Foods and Mirab USA. This agreement does not include the "Slim Jim" beef stick business. Marfrig has diversified sources to produce beef jerky from its units in Brazil, Argentina and Uruguay with a combined capacity of 27 tons per day and a packaging facility in Mirab USA.