Hormel To Spin Off Justin’s Nut Butters Into Joint Venture
Hormel Foods Corp. on Oct. 28 created a joint venture with a private investment firm that will make Hormel’s Justin’s business of nut butters and chocolates a standalone company, with Hormel retaining 49% ownership.
The partner is Forward Consumer Partners, an investment firm focused on branded consumer products. The Hormel announcement did not say what Forward is paying for its 51% ownership of Justin’s. Part of the deal has founder Justin Gold returning to the business as a strategic advisor and member of the new partnership's board of directors. Peter Burns will return as chief executive officer.
The transaction is expected to close by the end of the calendar year. The brand was created in 2004 by Gold in his Colorado kitchen and found early success being sold at the Boulder Farmers Market. Hormel acquired it in 2016.
“This new partnership with Forward will build on that strong foundation, providing even greater focus and resources to help the business grow – while we remain invested in its success,” said John Ghingo, Hormel president. “It also reflects a broader strategy at Hormel Foods of finding creative ways to unlock the potential of all of our brands."
Burns, Justin’s CEO at the time of the sale to Hormel, also held senior leadership positions at Hershey Co., Mauna Loa Macadamia Nut Corp., Izze Beverage Co. and Hain Celestial Group.
Matt Leeds, Forward's founder and managing partner, will become chairman of the new partnership. Forward's portfolio includes Kodiak, Firehook, Xochitl, Bar Keeper's Friend, Via Carota Craft Cocktails and more brands.
About the Author
Dave Fusaro
Editor in Chief
Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.