- Maple Leaf Foods (TSX:MFI) will spin off its pork business in 2025 under the Canada Packers brand
- Canada Packers is expected to generate C$1.7 billion in its first year post separation
- Maple Leaf Foods is a carbon-neutral protein company producing under numerous leading brands
- The consumer staples stock has given back 14.42 per cent year-over-year and 21.90 per cent since 2019
Maple Leaf Foods (TSX:MFI) will spin off its pork business in 2025 under the Canada Packers brand.
Canada Packers has been a global leader in the pork industry for nearly a century and is among North America’s largest producers of pork raised without antibiotics. Maple Leaf Foods estimates that the business generated C$180 million in pro-forma adjusted EBITDA during the year ended March 31, 2024, and expects it to generate C$1.7 billion in revenue in its first year post separation.
According to the initial announcement in July, Canada Packers is “well-positioned to unlock the significant growth potential of its business by investing in both organic and inorganic opportunities, including increasing volumes, optimizing operations and efficiencies, and building on its industry-leading sales mix and margins.” Maple Leaf Foods will back up this optimism with skin in the game, retaining a 19.9 per cent stake in Canada Packers with the parties set to sign a long-term pork supply agreement.
The new Canada Packers logo incorporates elements from Maple Leaf Foods’ almost century-old logo, including a refreshed Canadian flag, while venturing into a new color palette “to reflect its focus on sustainability,” according to Thursday’s news release, “shifting from blue and red to the natural green and blue tones that connect so much of Canada’s landscape.”
Leadership insights
“We are thrilled to launch Canada Packers as the new name for our future independent pork company,” Dennis Organ, president of Maple Leaf Foods’ Pork Complex and incoming chief executive officer of Canada Packers, said in a statement. “This choice reflects our deep respect for the history and legacy of this iconic brand, while affording us the opportunity to bring it forward and blend it with our ambitious vision for the future as a world-leading pork producer.”
“Leveraging the historic past was key, but not at the expense of the future and progress this brand represents,” Organ added. “The new branding honours these roots while propelling Canada Packers towards a dynamic and innovative future. We expect the new Canada Packers logo and branding to be a beacon for leadership in the fresh food space globally for another hundred years.”
“Canada Packers is a distinctive, memorable and authentic name for the new pork company,” added Curtis Frank, president and CEO of Maple Leaf Foods. “While grounded in solid roots that have been an important part of Maple Leaf Foods’ history, Canada Packers also provides a platform for the forward-thinking vision that Dennis and his team have embraced as they chart their next steps as an independent company. We are excited for what the future holds for Canada Packers as we advance plans to complete the separation of the businesses in 2025.”
About Maple Leaf Foods
Maple Leaf Foods is a carbon-neutral protein company producing under numerous leading brands including Maple Leaf, Schneiders, Mina, Greenfield Natural Meat Co., LightLife and Field Roast. The company’s 13,500 employees are primarily active in Canada, Asia and the United States.
The consumer staples stock (TSX:MFI) is up by 0.63 per cent trading at C$22.50 per share as of 10:11 am ET. The stock has given back 14.42 per cent year-over-year and 21.90 per cent since 2019.
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(Top image of the Canada Packers logo: Maple Leaf Foods)
