Company buys Justin’s brand, extending focus on on-the-go products.

Hormel Foods Corp. took another step toward a goal of focusing on holistic, on-the-go products that appeal to younger consumers.

Hormel announced Tuesday morning that it’s reached a deal to acquire Justin’s LLC for $286 million, though its still subject to closing procedures.

“I am pleased to welcome Justin’s into the Hormel Foods family,” Hormel President and Chief Operating Officer James Snee said in a press release. “We are excited to work together with the Justin’s team to bring these great products to even more consumers, leveraging key Hormel Foods resources to drive continued innovation and growth to this on-trend category.”

Hormel CEO and chairman of the board Jeffrey Ettinger called Justin’s “a pioneer in the specialty nut butter category.”

Justin’s Specialty Nut Butter Brand specializes in nut butter-based snack items, and Hormel leaders expect the brand to compliment its developing Skippy peanut butter brand.

“Justin’s affords us that opportunity to really be more complimentary to the Skippy brand in a category that’s a rapidly growing category,” Snee said. “We know that it attracts a younger, more health-conscious, millennial consumer.”

A changing vision

The Justin’s purchase comes after the company has made several large acquisitions in recent years, including: Applegate Farms for $775, Wholly Guacamole for about $140 million, CytoSports Holdings for $450 million, and Skippy for $700 million. Those represent four of the largest five acquisitions in the company’s history, with the fifth being Jennie-O Turkey Store in 2001.

At Hormel’s annual shareholders meeting in January, company leaders outlined how those four acquisitions tie into the Hormel’s four main target areas for growth: healthy and holistic, multicultural, global and on-the-go.

Justin’s fits that bill.

Justin’s offerings expands Hormel’s reach in the peanut butter market after it acquired Skippy in 2013 and started developing new products like Skippy P.B. Bites.

“Justin’s enhances our scale in the nut butter category, complimenting our Skippy brand positioning very nicely,” Snee said. “The Justin’s brand gives us a great platform in natural and organic specialty nut butter spreads, the fastest growing portion of the nut butter category.”

Snee said the move also balances Hormel’s brand portfolio to appeal to younger, on-the-go consumers with Justin’s squeeze packs.

Like with Applegate Farms, Hormel will keep the Justin’s management team and vision, but Snee said Hormel will seek growth through the support of Hormel’s finances and supply chain and research and development capabilities.

That’s also been evident through new products like Skippy P.B. Bites and a line of Muscle Milk smoothies.

Another recent move reflected Hormel’s changing vision.

Last month, Hormel announced it was selling Diamond Crystal Brands Inc., which manufactures and distributes portion-control and single-serve products like sauces, dressings, condiments salt, pepper and sweeteners.

The brand represented about $260 million in annual sales, but Ettinger said the company doesn’t fit with Hormel’s long-term vision.

“While Diamond Crystal Brands performed acceptably, it did not fit our long-term strategic priorities,” Ettinger said.

Hormel will retain Hormel Health Labs, which produces products for people with special dietary needs.

Justin’s

Justin’s markets four nut butter-based snack lines: spreads, squeeze packs, peanut butter cups and snack packs.

“Justin’s naturally delicious, high-quality nut butters, nut butter snacks and organic peanut butter cups align perfectly with our goal of complementing our existing brands with new offerings that resonate with younger, on-the-go and more health-conscious consumers,” Ettinger said in a press release.

Hormel leadership the acquisition comes with a fast-growing natural and organic product line, access to new customers and a strong management team.

Snee praised Justin’s for strong growth since it formed in 2004, and he called the acquisition exciting since Hormel acquired Justin’s as its still growing.

Justin’s will continue operating out of its Boulder, Colorado, office as a subsidiary in the company’s Grocery Products segment.

Justin’s was started by Justin Gold. According to www.justins.com, the active Gold wanted varieties of great-tasting, protein-packed nut butter to fuel his long bike rides.

“I look forward to working with the Hormel Foods team, a company that shares our passion for innovation, quality and creating the best possible consumer experience,” Gold said in a press release. “My goal has always been to build something truly special and Hormel Foods is the right partner to make this an enduring and far-reaching brand.”

Justin’s products include a hazelnut butter spread, maple almond butter and Justin’s dark chocolate peanut butter cups.