Smithfield Foods to Purchase Dry Sausage Facility in Nashville

Boosting Market Dominance in High-Quality Meat Products

NASHVILLE, TENNESSEE — Leading American food company, Smithfield Foods, renowned for its meat and fresh pork products, has inked a decisive agreement to purchase a premium dry sausage production facility in Nashville, Tennessee. The facility, currently owned by Cargill, is set to bolster Smithfield’s push for continued growth in the value-added packaged meats segment, further cementing its robust position in the market.

The company’s strategic expansion move aims to meet soaring demand for top-tier pepperoni, deli, charcuterie, and other dry sausage products. Nevertheless, both firms agreed to keep the details of the agreement undisclosed. The deal is anticipated to be finalized by the end of July 2024, subject to routine closing protocols.

Scaling Competition in Dry Sausage Market

“This transaction serves as a testament to our unceasing focus on growing our packaged meats business. We remain committed to keeping up with, and satisfying our customers’ preferences,” said Steve France, president of packaged meats for Smithfield Foods. He added, “Dry sausage remains one of our fastest-expanding categories. Acquiring this facility from Cargill better positions us to boost sales, ramp up volume, and enhance our capacity to deliver high-quality dry sausage products to various sectors— foodservice, industrial, and retail.”

With this acquisition, Smithfield eyes not just to cater to the facility’s existing clientele but also to incorporate a new team of members into its workforce. France looks forward to this new phase, claiming that it would reinforce Smithfield Foods in the sector.

Enhanced Dry Sausage Production Capacity

The Nashville facility output is seen to bolster Smithfield’s existing portfolio of dry sausage brands like Margherita, Carando, and Armour. The new addition will most certainly augment the company’s dry sausage production capacity by 50 million pounds annually. The U.S. retail/deli dry sausage segment growth is projected from $4.7 billion in 2023 to reach $6.9 billion by 2030.

An impressive 65% of pizzeria operators in the foodservice segment predict an increase in gross annual sales over the next 12 months. Furthermore, 44% of them anticipate sales to surge by 5% or more.

Continued Employment for existing workers

Adding to its strategic acquisition, Smithfield will extend official employment offers to approximately 160 active Cargill Nashville employees. The offers would be for the same positions they currently hold, without any alterations to their existing base pay. The company also intends to provide a comprehensive benefits package. This includes complete medical coverage and a free-tuition program, among other benefits.