Smithfield Foods buys out 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 sausage, as well as value-added products, including boneless hams. The Kansas City plant is the newest and most modern sausage processing facility in the U.S. and is designed for optimum efficiency to provide retail and foodservice customers with the highest quality products.
In Feb. 2013, Smithfield formed a 50/50 joint venture with Kansas City Sausage aimed at expanding into the fast-growing breakfast sausage and dinner sausage business.
According to Smithfield, packaged breakfast and dinner sausages generate $4 billion in sales annually to retailers and food service companies.
"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 harmonizing 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 U.S."
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