Butterkist Owner To Pass On The Popcorn

The private equity group which owns stakes in corporate giants such as Hilton Worldwide (NYSE: HLT - news) and Versace is to take advantage of soaring UK consumer demand for popcorn‎ by putting the Butterkist brand up for sale.

Sky News understands that Blackstone (NYSE: BX - news) is seeking a buyer for Butterkist, which is part of Tangerine Confectionery, a company it bought in 2011.

Tangerine is Britain's biggest independent manufacturer of ‎sugar confectionery, and is home to products such as Refreshers, Highland Toffee and Sherbet Fountain.

Stamford Partners, an advisory firm, has been hired by Blackstone to sell Butterkist as a separate asset because it is expected to command a premium valuation to the other brands in Tangerine's portfolio.

Once confined to trips to the cinema, popcorn has in recent years become a mainstream snack for many UK consu‎mers, with many brands being given an upmarket positioning to justify a more expensive sale price.

They now market themselves as healthier alternatives to potato crisps, reflecting consumers' growing appetite for foods containing lower quantities of sugar and salt.

Propercorn, another manufacturer, is understood to have been holding talks with ‎potential investors including JamJar, whose partners include founders of Innocent Drinks, the smoothies producer.

Earlier this year, the owner of Kettle Chips, Diamond Foods (NasdaqGS: DMND - news) , bought a 26% stake in Metcalfe's Skinny, a popcorn brand created by the co-founder of Itsu and Pret a Manger.

Blackstone declined to comment on its plans to sell Butterkist.