Portfolio Overhauls Gain Momentum: Divesting to Simplify and Deleverage

研报英文原文证据摘录

Portfolio Overhauls Gain Momentum: Divesting to Simplify and Deleverage

AL ZAPP'S REDHOTFRANK'S TASTYKAKE FARMPEPPERIDGE PILLSBURY MARZETTI ORTEGA LUNCHABLES TOTINO'S TONE'S POST KRAFT HOSTESS MILLSGENERAL CAMPBELL'S MAYER

BGS, CAG, KHC, POST, and GIS screen as highest probability divestors. Against pressured topline CAG BGS POST UTZ MKC FLO CPB GIS LANC BGS KHC GIS BGS POST KHC SJM GIS CPB KHC BGS

.

growth, elevated debt raises dividend sustainability questions and scrutiny on complex portfolios. Source: Jefferies Research, NielsenIQ xAOC +C

We analyzed ~240 big brands across 13 covered food companies, finding CAG, BGS, and KHC

The acquisition-to-divestiture mix has shifted

screen as most in need of trimming, with POST and GIS also flagged, driven by brand counts meaningfully, with divestitures exceeding 50%

and brand-specific drags. Concentration is notably low at CAG, BGS, and KHC, where the biggest of deal activity since 2024

brands (>2% of tracked sales) account for just 68%, 75%, and 79% of tracked US sales, the three 100% Coverage M&A Transactions

lowest rates in our coverage. At POST and GIS, performance is more so the issue: 7 of POST's 8 90%80% 30%

53% 47% 55% 70% 48% 68% 45% 41%biggest brands (led by Nutrish (13%) and Peter Pan (8%)) and 7 of GIS's 11 (General Mills cereal 60% 67% 63%

(4%) and Totino's (7%)) have declined over L3Y. 3Y sales trends reinforce the screen: BGS (4%), 50%40% 70%

52% 55% 59% 47% 53% 45%

20% 33% 38% 32%POST (4%), KHC (3%), GIS (3%), and CAG (2%) have seen the most pressured tracked channel 30%

10%

0%sales. With organic deleveraging across the group slow, brand divestitures offer the most actionable 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026