B&G Foods Inc wants the small, orphan brands that no one else loves. 

"We have a laundry list and any number companies that we talk to on a regular basis," said B&G Chief Executive David Wenner. "We're buying all these things people don't want to run."

B&G pointed to the success of its acquisition of Cream of Wheat, saying "no one was paying any attention to it. So that's where we come in."

"We're looking for things are aren't commodities. Higher margin products, ethnic foods are great. Las Palmas and Ortega -- they've grown steadily over the years and we love that," Wenner said.

B&G aims to stick to its tried-and-true practice of buying dry grocery products that immediately add to earnings or revenues.

B&G wants to carve out orphan products from larger food companies. When it approaches potential sellers, B&G says "We're able to come in and take these five things  you don't want.  We're able to come in and take these things over very very quickly," Wenner said. 

The company targets smaller brands or private companies. "We're not buying Kraft tomorrow." 

Still, some acquisitions may have to wait. Sellers are still looking for premiums that reflect higher stock prices from a year ago, rather than the current depressed prices, Wenner said.

"The brands that may be available are on hold -- I see some more consolidation in the food industry at some point," Wenner said. "But we still have sellers that are looking for double-digit EBITDA (earnings before interest, taxes, depreciation and amortization), and that's not where the world is today."

(Reuters photo)

H.J. Heinz makes no secret of the fact that acquisitions are part of its strategy, especially in areas like emerging markets and health and wellness.
 
Most recently, the company said earlier this month that it would buy Australian canned fruit and juice maker Golden Circle Ltd for about $220 million.
 
The company is still looking at “strategic acquisitions,” CFO Art Winkleblack told an investor conference. And the buffet of brands that Heinz can search from may never be larger.
 
“In the past few months, the pipeline of potential acquisitions has risen to unprecedented levels,” Winkleblack said.
 
“It would appear that the pipeline of potential acquisitions has risen because there are less private equity buyers in the market due to the current financial situation,” he said later through a spokesman.
 
The acquisitions Heinz cited were smaller ones that mostly added to existing categories. No reference was made to anything larger, like the comment Heinz CEO William Johnson made in August that Campbell Soup Co would be a “nice fit.”

Will Heinz launch a bid for Campbell Soup in 2008?