Shares of Kraft Foods Group Inc. soared after 3G Capital decided to acquire the consumer food and beverage company and merge it with recently acquired H.J. Heinz Co. with the help of Berkshire Hathaway Inc. But it’s not the only name within the space that could benefit.
RBC Capital Markets highlighted several potential winners as result of the Kraft deal including: Mondelez International Inc., the treats giant that was spun off from Kraft in 2012; Pinnacle Foods Inc., whose brands include Duncan Hines, Aunt Jemima and Hungry Man; and B&G Foods Inc., maker of Mrs Dash, Ny Flatbreads and Sugar Twin.
Analyst David Palmer thinks B&G may be interested in buying any non-core centre-store brands that Kraft Heinz Co. decides to market. Similarly, he believes Pinnacle would likely want the newly merged company’s frozen portfolio, including brands like Smart Ones and Ore Ida.
And while an acquisition of Kraft probably pushes back another major deal for at least a couple of years, Mr. Palmer expects Mondelez is clearly the next target.