Nabisco selling College Inn Broths
PARSIPPANY, N.J. (AP) _ Nabisco Inc. is selling its College Inn line of canned broths to H.J. Heinz Co. Terms of the deal were not disclosed.
The agreement, announced Tuesday and subject to regulatory approval, would give Heinz a new line of broths with market strength throughout the east and midwest. Annual sales are approximately $50 million.
The sale was announced just over one week after Parsippany-based Nabisco announced a 6 percent cut in its work force. The company plans to eliminate 3,100 jobs, close plants and spend more to market cookies like SnackWell’s in a restructuring to boost profits.
The company plans to increase marketing spending by 30 percent from a year ago to reignite sluggish sales of its cookies and crackers, which also include brands such as Ritz crackers and Oreos.
James M. Kilts, president and chief executive officer, said that while College Inn makes a profit it doesn’t fit with the company’s new focus.
William R. Johnson, president and chief executive officer of H.J. Heinz, said the acquisition makes sense for his company.
``We continue to upgrade our portfolio with an emphasis on higher-margin, good-fit, synergistic, branded business,″ Johnson said in a statement.
The Pittsburgh-based Heinz has businesses including ketchup, seafood, soup, pet food and Weight Watchers.