Reuters: JBS S.A., Sigma Alimentos Among Potential Oscar Mayer Buyers

According to a Reuters report, the chase to acquire the iconic Oscar Mayer business from Kraft Heinz includes international meatpackers JBS S.A. and Sigma Alimentos. The hot dog, bacon and lunchmeat brand was rumored to be on the sales block back in May, though those rumors were never officially confirmed by Kraft Heinz.

In May, the belief was that the sale of Oscar Mayer could bring in anywhere from $3 billion to $5 billion, and sources cited in the most current Reuters report speculate the price could be nearly $3 billion. Sources told Reuters that “several potential buyers” had submitted initial bids in recent weeks, but that any potential deal would still be several weeks away.

None of the three companies mentioned in the Reuters report (Kraft Heinz, JBS, Sigma) had responded to any requests for comment from Reuters.

Brazil-based JBS has an ongoing history of snapping up U.S. meat companies over the past decade-plus, dating back to its initial acquisition of pork behemoth Swift & Co. in 2007, the foundational company for what is now JBS USA, which also includes the former Smithfield Foods beef operations (acquired in 2008) and the pork processing operations of Cargill Meat Solutions (2015). JBS has also acquired smaller businesses and integrated them into the JBS USA division, and it also has pushed into poultry, buying Pilgrim’s Pride and Gold’n Plump (through Pilgrim’s, which has remained separate from JBS USA, which operates out of Greeley, Colo.).

In recent years, JBS USA has shifted some of its focus and product development efforts toward value-added, branded meat products, having developed the La Herencia and Adaptable Meals brands in-house and acquiring other branded meat companies.

For Mexican company Sigma Alimentos, the Oscar Mayer business would be the equivalent of eliminating a competitor by acquisition. In 2010, Sigma acquired Bar-S Foods, a packaged-meats company whose products (under the Bar-S brand) still compete directly with Oscar Mayer in numerous categories (hot dogs, bacon, lunchmeat, etc.).

Sigma hasn’t been as hyperactive in the U.S. acquisition market as JBS S.A. has in the last 20 years, but it did acquire the former West Liberty Foods Mt. Pleasant, Iowa, processing plant last year looking to expand production capacity for products under the Bar-S and Fud brands, according to reports at that time.

Oscar Mayer was founded in 1883 and has been one of those legendary U.S. food brands driven by marketing mastery (Wienermobiles, jingles, iconic logo, etc.) and beloved, convenient products. But as consumers have slowly shifted to look for healthier food options in the last several decades, the business has lost a little of the shine it once had.

Oscar Mayer’s ownership has been a maze of mergers since 1981, when it was sold to General Foods. In 1989, General Foods was merged with Kraft Foods — and then Kraft merged with the H.J. Heinz Co. in 2015 to form what is now Kraft Heinz.