Another Major Food Brand Is Changing Its Business Practices

It has been a big couple of weeks for the food brand world. Kellogg's recently made a huge announcement that involves splitting the company into three sectors; one focused on snacking, another on cereal, and the remaining concerning itself with plant-based products. Hot on the heels of Kellogg's news, another food brand giant has just announced some major changes.

B&G Foods will also be restructuring. According to its website, the company has deep roots in America, going all the way back to 1889 when the Bloch family and Guggenheimer family were selling pickles in Manhattan. However, if "B&G" doesn't automatically ring a bell today, more than one of the 50+ brands in the company's portfolio will likely sound familiar. Currently, the company offers an impressive variety of well-known product lines, including Clabber Girl, Ortega, Green Giant, and Skinnygirl. Later this year, the way those brands are divided up will look a bit different.

Following years of acquiring food brands and adding them to its eclectic portfolio (via Seeking Alpha), B&G Foods is ready to restructure its holdings. The business may have good reason to consider its current structure since the change comes after Simply Wallst reported last month on the five-year losses the company's investors had been hit with. In a press release, B&G Foods explained the company is looking "to establish clear focus and expectations and drive organic and acquisition growth," with the restructuring. According to Food Dive, the company will be dividing into four separate business units later this year, each with its own president.

Per the press release, those business units will fall into the following categories: Frozen and shelf-stable vegetables, which will be Green Giant's new home; meals, where Ortega and Cream of Wheat will land; spices and seasonings, which will oversee brands like Dash; and specialty, the new division for Crisco, Clabber Girl, and Emeril's. As Food Dive explains, one potential consequence of a reorganization is the business eventually unloading some of the less profitable brands. Or, as Casey Keller, President and Chief Executive Officer of B&G Foods, put it in the press release, "These units will define the categories and brands that we will resource and grow, the platforms for future acquisitions, the brands that will run for efficiency and cash flow, and the businesses we may exit over time."