Feb 3, 2021 - Economy

Kraft Heinz in talks to sell Planters to maker of Skippy peanut butter

a peanut with cash inside its shell

Illustration: Aïda Amer/Axios

Kraft Heinz (Nasdaq: KHC) is in talks to sell its Planters snack unit to Hormel Foods (NYSE: HRL) for around $3 billion, per the Wall Street Journal.

Why it matters: This would merge the salted peanuts purveyor with the maker of Skippy peanut butters, creating a conglomerate to torment school lunch proctors everywhere.

The bottom line: "At the beginning of the pandemic, sales of pantry staples surged, giving a jolt to classics that had fallen out of favor with consumers. But as that demand wanes, deal making in the sector has picked up, with companies back to retooling their portfolios to meet changing tastes," the Journal writes.

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