Worthington, OH - Worthington Foods, Inc. announced a definitive agreement has been signed to acquire the Harvest Burger trademark and line of products from Archer Daniels Midland. Worthington Foods ("Worthington") will issue approximately $9.3 million of common stock in this transaction, which represents slightly more than four% of the outstanding common shares. Annual sales of Harvest Burger products to supermarkets are approximately $15 million.
Worthington will assume the marketing, sales and distribution of all Harvest Burger products beginning January 1, 1999, at which time the Green Giant name will be removed from the packaging and replaced with the Morningstar Farms logo. Morningstar Farms is the nation's number one brand of meat alternative products. All marketing, sales and distribution functions related to the Harvest Burger line of products will be assumed by current Worthington Foods staff with no additional personnel required. The Harvest Burger branded products include:
* Harvest Burger Original - one of the leading meatless patties in supermarkets
* Harvest Burger for Recipes - a leading hamburger replacement product * Harvest Burger Italian Style * Harvest Burger Southwestern Style * Harvest Burger dry Patty Mixes. * Harvest Burger Foodservice Products
Archer Daniels Midland ("ADM") has agreed to provide to the Morningstar Farms product line, including Harvest Burgers, TV air-time which will be a part of an expanded advertising and promotional program for Morningstar Farms. With the addition of Harvest Burgers to the Morningstar Farms line of over 20 meat- free items, Morningstar Farms will continue to offer consumers the widest range of convenient, good tasting vegetarian products -- all under one brand. In addition, ADM's international affiliate will assist Worthington to expand its opportunities for international production and sales. This transaction includes a five-year manufacturing agreement with renewal options under which ADM will continue to produce Harvest Burger products in its facilities.
Larry Cunningham, President of ADM's Protein Division and Group Vice President, said "This transaction strengthens a long-term supplier/manufacturer relationship that ADM and Worthington have enjoyed for many years. We believe this Agreement results in a 'win-win' for both our companies and allows us both to focus on what we do best."
Dale Twomley, President and Chief Executive Officer of Worthington Foods, Inc. stated "We are very pleased with this Agreement with ADM and look forward to adding the Harvest Burger line of products to Morningstar Farms' growing family of meatless products. We will now leverage the strong brand recognition of Harvest Burgers into other segments of the rapidly growing meat alternative category. We believe our Number 1 position in the 'Veggie Burger' business is strengthened by this acquisition and our expanded business relationship with ADM. We intend to use these strengths to grow our Number 1 position in this high-growth meatless category that is projected to reach $1 billion in sales by the year 2001."
Meat Industry Insights News Service
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