Battle for Oscar Mayer: Major Meatpackers Make Their Move

Brazilian meatpacker JBS and Mexico's Sigma Alimentos are vying to purchase Oscar Mayer from Kraft Heinz. The brand, valued at $3 billion, is being sold as Kraft Heinz pivots to healthier products due to declining demand for processed foods. Final decisions are weeks away.

Brazilian meat giant JBS and Mexico's food company Sigma Alimentos are both competing to acquire Oscar Mayer, the hot dogs and cold cuts business owned by Kraft Heinz, insiders revealed.

The iconic Oscar Mayer brand, valued at nearly $3 billion, is up for sale as Kraft Heinz seeks to adjust its brand portfolio, focusing on healthier food options amid reduced demand for processed foods. Several potential buyers have already submitted initial offers.

While a final deal is still several weeks away, Kraft Heinz aims to achieve a valuation for Oscar Mayer worth ten times its EBITDA of about $290 million. The landscape of the packaged food industry is shifting, with large deals like Mars' acquisition of Kellanova illustrating the sector's dynamic nature.

(With inputs from agencies.)