General Mills to acquire TNT Crust to expand away-from-home presence

USA—American packaged food company, General Mills has announced plans to acquire TNT Crust, a manufacturer of frozen pizza crusts.

TNT Crust manufactures frozen pizza crusts for regional and national pizza chains, foodservice distributors and retail outlets. Its net sales totaled approximately US$100m in 2021.

The purchase by General Mills is the latest in a series of deals being made by food and beverage consumer packaged goods companies to grow sales and increase their presence in popular categories.

TNT’s products, which include partially baked and self-rising pizza crusts, “are highly complementary to General Mills’ existing frozen baked goods portfolio,” according to a company statement.

In the nine months to 27 February, General Mills’ North American foodservice business generated net sales of $1.32bn, up 24% on a year earlier, helped by increased mobility and a re-opening of the sector compared to the early months of the Covid-19 pandemic.

Segment operating profit increased 27% to $175 million. TNT could help if sales for General Mills’ home-focused brands drop as people continue to venture out.

“This acquisition advances our Accelerate strategy and builds on our strong position in the fast-growing away-from-home frozen baked goods category,” said Shawn O’Grady, General Mills’ group president of North America foodservice.

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According to Statista, more than 200 million Americans eat frozen pizza, more than half the total U.S. population.

Adding that the global frozen pizza market is expected to grow from about $16.2 billion in 2020 to more than $23 billion dollars by 2027.

TNT also gives General Mills a deeper presence in frozen pizza, already having a presence in pizza and frozen offerings with Totino’s pizza rolls and Pillsbury Pizza Crusts.

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It also offers items like Pillsbury frozen mini pancakes to schools and flour to pizzerias as part of its foodservice business.

As part of the acquisition, General Mills will acquire two manufacturing facilities in Wisconsin, and one in Missouri.

The purchase of TNT Crust is expected to be finalized in the first quarter of General Mills’ fiscal 2023 year.

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