Conagra in discussions about the Jewish national sale to JBS

Conagra, in April 2019, said that Hebrew National’s sales compared to the previous year were 170 million dollars, and those of eggs were 78 million dollars. But the popularity and cultural cache of the kosher hot dog transcends the size of the brand, due in part to its long-standing slogan: “We respond to a higher authority.”

Conagra, which has a market value of about $ 17.6 billion, has reorganized its portfolio to increase its brands of frozen foods and snacks such as Healthy Choice and Slim Jim.

For JBS, the largest beef processor in the United States, buying the business would expand its range of canned meat from grocery stores, at a time when consumers have shifted their food shopping preferences to supermarkets and away from the relaxing restaurants.

JBS has a market value of over $ 12 billion and earns most of its revenue in the U.S., where its businesses include beef and pork processing company Swift and Pilgrim’s Pride.,

the second largest supplier of chicken in the country.

Should JBS close the deal, it would expand its portfolio of consumer brands, which the company intends to build. Ordinary branded meat products tend to have higher profits than bulk meat sold to restaurants and supermarkets in packaged trays. In February 2020, JBS announced a $ 238 million deal to buy Empire Packing Co., the parent of Ledbetter’s retail meat products.

The French kosher Hebrew National was first sold in New York in 1905, and Conagra acquired the brand’s parent company in 1993. Over the decades, beef hot dogs have become a staple. at baseball stadiums and backyard cooking.

In early 2019, the brand’s sales were slightly behind the global hot dog category, and Conagra executives said they plan to update their marketing and incorporate additional pieces of beef, such as breast.

Sales of pantry staples increased about a year ago, when home orders began in the early days of the pandemic, shaking the classics that fell out of favor with consumers. Hebrew National’s retail sales rose 39 percent in the May 31 quarter, Conagra reported.

But demand for some packaged foods has fallen as people return to restaurants and offices, prompting companies to resort to agreements to keep up with changing consumer tastes.

Kraft Heinz Co.

in February agreed to sell its nut business to spam producer Hormel Foods Body.

for $ 3.35 billion. Like JBS, Hormel focused its portfolio on high-protein food brands.

Kraft Mondelez International’s rival Inc.

signed two small deals so far this year: it agreed to buy Gourmet Food Holdings, a popular cracker brand in Australia this week, and the rest of chocolate maker Paleo Hu Master Holdings in January.

—Annie Gasparro contributed to this article.

Write to Jacob Bunge at [email protected] and Cara Lombardo at [email protected]