B&G Foods (BGS) Adds Farmwise To Its Robust Brands Kitty

 | Feb 19, 2020 10:10PM ET

B&G Foods, Inc. (NYSE:BGS) is actively pursuing acquisitions to boost growth. In this regard, the company completed the acquisition of Wellesley, MA-based Farmwise LLC. B&G Foods funded the buyout in cash, while other terms of the transaction have been kept under wraps.

In sync with rising health consciousness, Farmwise is engaged in manufacturing healthy plant-based food alternatives, which include Veggie Fries, Veggie Rings and Veggie Tots. This is likely to help B&G Foods to augment its natural channel along with its growing Green Giant brand.

Speaking of Green Giants, it has emerged as one of the leading brands of the company. B&G Foods has a robust pipeline and product innovations lined up for Green Giant, which was acquired in November 2015. Notably, the company’s plan to introduce 11 frozen innovation products in the Green Giants portfolio is expected to have generated approximately $5-$10 million in incremental net sales in the fourth quarter of 2019.

Previously, B&G Foods acquired notable brands such as Back to Nature, Victoria, Mama Mary, Specialty Brands, Rickland Orchardsn, TrueNorth and McCann’s. Additionally, the acquisition of a leading baking products company Clabber Girl, which was completed in May 2019, has been yielding.

Apart from this, B&G Foods’ pricing initiatives have been aiding. During the third quarter, the company’s net sales gained $5 million from rise in net pricing. We believe that efficient pricing and the ongoing cost-saving efforts are likely to help it counter input cost inflation.