Discussion on the merger of Hostess Brands and J.M. Smucker, Instacart's valuation drop, Kroger's push for Albertsons deal, and interview with Jesse Singh of Azek on competition and future focus.
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Quick takeaways
J.M. Smucker's acquisition of Hostess Brands expands its brand portfolio and offers opportunities for synergies.
AZEK aims to replace wood with sustainable composite and PVC decking, focusing on professional and consumer markets.
Deep dives
Smucker acquires Hostess in $5.6 billion deal
J.M. Smucker is acquiring Hostess Brands for $5.6 billion in a cash and stock transaction, expanding its portfolio of brands and positioning itself for growth. While Hostess has a checkered past with two bankruptcies, its strong brands and steady growth potential make it an attractive acquisition. Smucker, a well-established company with slower growth, has the financial strength to make this deal, and the acquisition of Hostess brings a collection of strong brands and opportunities for synergies.
AZEK focuses on pros and plans consumer marketing
AZEK, a top competitor in the decking industry, has a strong presence in both the professional and consumer markets. With a network of 200 salespeople working with contractors and channel partners, AZEK's emphasis is on the professional segment. However, the company has been investing in consumer marketing, particularly with its TimberTech brand, and plans to continue elevating its consumer-focused initiatives. In addition to composite decking, AZEK is expanding in the exteriors category with railings, cladding, and siding, capitalizing on the trend of replacing wood with long-lasting alternatives.
AZEK aims to be a leader in sustainable building materials
AZEK's long-term vision is to be known as a company that utilizes recycled materials to create sustainable building products. Their goal is to replace wood with their composite and PVC decking, improving the aesthetics of exterior spaces while reducing the need for maintenance. In five years, AZEK aims to have a larger market presence in areas beyond their core products and continue driving wood conversion on the outside of homes. Their commitment to sustainability and customer satisfaction positions them for continued growth in the industry.
The acquisition of Hostess Brands by J.M. Smucker is the latest in a series of food mergers.
(00:21) Jason Moser and Deidre Woollard discuss: - The synergies between Hostess and Smucker. - Why Instacart’s valuation dropped. - Kroger’s push to make the Albertsons deal happen.
(16:09) Deidre Woollard interviews Jesse Singh of home exteriors company Azek on competition in the decking space and what’s next for the brand.