You probably wouldn't put peanut butter on your pepperoni, but the brand's apparently worth $700 million to its new owner.
The Associate Press reports…
Skippy, which was introduced in 1932 and is a staple in American pantries, is intended to increase Hormel’s presence in the center of the supermarket where nonperishable foods are sold. It also gives the Austin, Minn.-based company a stronger footing in international markets. Skippy is sold in about 30 countries and is the leading peanut butter brand in China, where Hormel has been trying to build up its Spam business for the past several years.
This is Hormel’s biggest-ever acquisition, and the reason is it wants to sell Spam to China and be in a different part of grocery stores? Well, I guess when you’re a huge food brand (worth $8 billion, according to CEO Jeffrey Ettinger) you can do what you want. Unless you’re Hostess.