Smithfield Foods buys Kansas City Sausage Company
KC Sausage has operations in Des Moines, Iowa and Kansas City, Missouri. In Des Moines, the company produces premium raw materials for sausages, as well as value-added products, including boneless hams. The Kansas City plant is designed to service retail and foodservice customers.
In 2013, Smithfield formed a 50/50 joint venture with the company.
‘Harmonising’ production and processing
“This latest acquisition will build on the success of our growing packaged meats business and brands. It simultaneously enhances our vertically integrated supply chain, further harmonising our live production and processing capabilities,” said Kenneth M Sullivan, president and chief executive officer for Smithfield Foods. “With this transaction, we will strengthen our focus on branded pre-rigor pork products and leverage Smithfield’s expansive sales and distribution network to bring these premium offerings to more consumers.”
“This full acquisition further supports the growth of several key packaged meats categories, including breakfast and fresh dinner sausage, as well as Italian-style meal solutions like meatballs,” said Joseph B Sebring, president, packaged meats division of Smithfield Foods. “Kansas City Sausage produces some of Smithfield Foods’ fastest-growing products, including Smithfield Breakfast Sausage, Smithfield Craft Collection Seasonal Brats, and Carando Meatballs. In fact, Carando currently boasts the fastest-selling fresh meatball in the US.”
Earlier this month, Smithfield Foods entered into a $25 million strategic partnership with e-commerce meat marketplace Chef’d. Through this investment, the companies will leverage Smithfield’s portfolio of brands for meal kit solutions, while Chef’d will gain access to Smithfield’s product development and sourcing capabilities.
The two businesses will also share information about their varying distribution models: Smithfield will be able to learn about Chef’d’s direct-to-consumer model by tapping into real-time consumer insights and sales data; and Chef’d will be able to leverage Smithfield’s national distribution network and facilities to expand its ability to serve consumers with next-day delivery services.