Conagra Brands Inc. is selling its Peter Pan peanut butter line to Post Holdings Inc., the company that helps produce spreads sold under that brand name.
The food makers didn’t disclose financial terms of the deal, but said Monday that an affiliate of St. Louis-based Post currently co-manufactures all Peter Pan products. Those items include various creamy and crunchy peanut-butter spreads.
Conagra , the company behind Birds Eye frozen vegetables, Slim Jim meat snacks, Orville Redenbacher’s popcorn and other products, has been shifting away from peanut butter.
Last year, the Post affiliate that makes Peter Pan products said it agreed to buy a Conagra peanut-butter facility in Illinois. Conagra said in a filing this year that the sale was tied to its move to stop making and selling peanut-butter spreads sold under private brand names.
Conagra has been able to drive up sales this year as consumers have opted to buy more food to prepare at home during the Covid-19 pandemic. The company reported a 15% increase in comparable sales for its quarter ended Aug. 30 and told investors it believed demand for its items sold at retail locations would remain elevated for its new fiscal year compared with historical levels.
