In another move toward becoming a “snacking powerhouse,” The Hershey Co. has agreed to purchase Pirate brands, including the Pirate’s Booty; Smart Puffs; and Original Tings brands from B&G Foods, Inc. for $420 million.
“Pirate’s Booty is a leading cheese puffs brand loved by moms and kids as a better-for-you treat,” said Chief Growth Officer Mary Beth West. “We expect the full Pirate brands portfolio to be a great fit for Hershey’s growing Amplify business, which is targeted toward consumers who are looking for great-tasting snacks without compromise.”
This acquisition comes roughly nine months after Hershey purchased Skinny Pop maker Amplify Snack Brands for $1.6 billion. When CEO Michele Buck announced the Amplify acquisition in December, she said the company’s goal, in the face of changing consumer preferences, is to become an “innovative snacking powerhouse.”
“Hershey's snack mix and meat snacks products, combined with Amplify's Skinny Pop, Tyrrells, Oatmega, Paqui and other international brands, will allow us to capture more consumer snacking occasions by creating a broader portfolio of brands,” she said.
Pirate’s Booty is a fast-growing brand in the more than $2.5-billion cheese puffs category, with retail sales up over 8 percent on a year-over-year basis. It’s also a market leader for consumers seeking snacks with clean labels and no artificial flavors, colors or preservatives.
“Pirate Brands is a terrific business and we believe that it will thrive under the ownership of The Hershey Co.,” said Bob Cantwell, president and ceo, B&G Foods.
Pirate Brands will operate within Amplify, Hershey’s better-for-you snacking hub in Austin, Texas, which is focused on driving growth in the warehouse snacking aisle. The purchase, subject to customary regulatory approvals, is set to close later this year.