Minnesota-based food giant Hormel Foods has announced a strategic spin-off of its premium nut butter brand Justin's, partnering with New York private equity firm Forward Consumer Partners in a deal expected to close by year-end.
Under the agreement, Forward Consumer Partners will acquire a 51% controlling stake in Justin's, transforming the brand into an independent company while Hormel Foods retains a 49% ownership interest. The transaction represents a strategic move by Hormel to unlock value within its diverse portfolio while maintaining significant involvement in the brand's future growth.
Leadership Changes and Strategic Vision
The newly independent Justin's will be led by returning CEO Peter Burns, who previously held the position in 2016. Burns brings extensive experience from leadership roles at major food companies including Hershey, Mauna Loa Macadamia Nut Corp., Izze Beverage, and Hain Celestial.
Justin Gold, the brand's founder who established the company in 2004, will return as a strategic adviser and board member. Matt Leeds, Forward Consumer Partners' founder and managing partner, will serve as chairman of the standalone company.
"The Justin's brand is a textbook Forward asset – a powerful brand that makes beloved products, with an enduring track record of success and significant untapped potential," commented Leeds on the partnership.
Brand Evolution and Market Position
Since Hormel's acquisition of Justin's in 2016, the brand has expanded significantly beyond its original offerings. John Ghingo, president of Hormel Foods, noted that the company has broadened the portfolio to include both almond and peanut butters, while also introducing innovative peanut and almond butter cups.
"Justin's has always had incredible equity, and there is even more opportunity ahead," Ghingo stated. "This new partnership with Forward will build on that strong foundation, providing even greater focus and resources to help the business grow – while we remain invested in its success."
Strategic Portfolio Management
The Justin's spin-off reflects Hormel Foods' broader strategic approach to portfolio optimization. Ghingo emphasized that the move "reflects a broader strategy at Hormel Foods of finding creative ways to unlock the potential of all of our brands."
This transaction occurs during a period of leadership transition at Hormel Foods, with CEO Jeff Ettinger currently serving in an interim capacity following Jim Snee's retirement announcement in June. The company has also appointed Paul Kuehneman as interim CFO.
Financial Performance Context
While Hormel Foods has not yet released its fourth-quarter results ending October 26, the company provided positive guidance, expecting strong top-line performance driven by sustained demand across retail, foodservice, and international segments. Turkey products and the Planters snacks brand are leading growth drivers.
Net sales for the quarter are projected at the upper end of previous guidance, though adjusted earnings per share are forecast slightly below earlier expectations by approximately $0.08 to $0.09.
Industry Implications
The Justin's spin-off represents a growing trend in the food and beverage industry where established companies are partnering with private equity to unlock value in specialty brands while maintaining strategic involvement. This approach allows brands to benefit from focused management attention and specialized resources while leveraging the parent company's operational expertise and market relationships.
For the premium nut butter segment, this transaction positions Justin's for accelerated growth in the competitive natural and organic foods market, where consumer demand continues to drive innovation and expansion opportunities.
Hormel Foods Spins Off Justin's Brand in Strategic Partnership with Forward Consumer Partners
