Procter & Gamble to merge coffee operations with Smuckers

AFP, June, 2008

NEW YORK (AFP) — Consumer products giant Procter & Gamble said Wednesday it was spinning off its Folgers coffee business into JM Smucker Co. in a 3.3 billion dollar deal.

P&G shareholders will own 53 percent of the new business, which includes a range of Folgers products including coffee and food and Smucker's line of jams and related food items.

"The proposed transaction creates a powerful portfolio of brands and an even stronger Smucker Company with annual sales approaching five billion dollars, and greater scale that will benefit all of its businesses," the companies said in a joint statement.

"Folgers is a perfect strategic fit within our portfolio of leading and iconic North American food brands," said Tim Smucker, chairman and co-chief executive of...