When is Instacart Going Public? + Smucker Acquires Hostess Brands

As PepsiCo, Inc. positions itself at the forefront of digital advancements, the company recently declared its intention to purchase $175 million of Instacart’s Series A preferred convertible stock. This pivotal move was revealed alongside Instacart’s Form S-1 filed on August 25 with the Securities and Exchange Commission (SEC), indicating plans for its much-anticipated initial public offering (IPO). In this episode of the Xtalks Food Podcast, Sydney talks about the long-awaited IPO, Instacart’s recent sales history and PepsiCo’s investment strategy. With the Instacart IPO date looming, the strategic moves by both PepsiCo and Instacart stand as a testament to their commitment to shaping the digital trajectory of the grocery sector. The team wonders whether Instacart will continue to grow post-pandemic and how it will continue to innovate in the online grocery sector.

Also in this episode, Sydney talks about the J.M. Smucker Company’s recent acquisition of Hostess Brands. The Hostess transaction is valued at roughly $4.6 billion when excluding the debt, with Jif peanut butter producer Smucker agreeing to pay Hostess shareholders a sum of $34.25 per share. Smucker’s investment in Hostess comes at a time when significant US packaged food companies are on the hunt to broaden their brand collections, especially as the financial windfalls from the pandemic era begin to ebb. The alliance with Smucker is a significant turning point for Hostess, which has previously faced bankruptcy (in 2004 and 2012). The reasons ranged from excessive debt incurred by private equity owners to a lack of innovative snacking options. While the value is high, the team agrees that the transaction is a positive move for both Smucker and Hostess Brands.