Conagra mulling to divest hot dog business Hebrew National for $800m

US-based packaged foods company Conagra Brands is reportedly in talks to offload its hot dog business Hebrew National to beef producer JBS or another bidder.

People familiar with the matter told Bloomberg that Conagra is likely to sell its hot dog business for $800m.

Hebrew National’s franks and lunch meats are produced using kosher beef and aim to conform with Jewish dietary rules.

The report added that the transaction may also include brands such as Egg Beaters, which makes liquid egg-white products; and Odom’s Tennessee Pride, which retails fresh sausage and breakfast sandwiches.

If the deal materialises, it would further strengthen JBS’ position in the higher-margin packaged-foods segment.

Last month reports emerged that JBS is planning to establish a new global manufacturer of plant-based food products.

In an interview, JBS CEO Gilberto Tomazoni told Bloomberg that meat from animals will become expensive and people need to turn to cheaper, vegetable-derived alternatives.

Tomazoni was quoted by the news agency as saying: “Plant-based will help us to reduce this protein gap with more affordable products compared with animal protein, which will be more premium. We see plant-based as an independent business in the future.”

Conagra, which owns brands such as Healthy Choice, Duncan Hines and Marie Callender’s, is said to have been focusing on frozen foods and snacks.

In September 2019, Conagra Brands signed an agreement to sell its Direct Store Delivery (DSD) snacks business to Utz Quality Foods.

Utz Quality Foods will acquire various Conagra brands, including Tim’s Cascade Snacks, Hawaiian Snacks, Erin’s, Snyder of Berlin and Husman’s.