Jan 31 (Reuters) - JM Smucker said on Friday it

would sell its packaged pastries brand Cloverhill and cinnamon

rolls label Big Texas to packaged food maker JTM Foods for about

$40 million, as the company looks to cut costs in its sweet

baked snacks segment.

The divestiture, which also includes some of the Jif peanut

butter maker's private-label products, would help it focus on

growing Twinkies-maker Hostess Brands, which the company

acquired in 2023.

"This decision continues the ongoing work to ensure our

manufacturing network is optimized to mitigate costs and reduce

complexity," said Dan O'Leary, senior vice president and general

manager, of the company's sweet baked snacks and pet products

unit.

Like other packaged food firms, JM Smucker has been

countering choppy demand from consumers as they temper spending

on snacks and sweets and switch to healthier snacking options.

The sweet baked snacks segment formed 13.9% of the company's

total net sales in the second quarter of fiscal 2025, reported

in November.

JM Smucker expects its full-year net sales from the divested

brands to be about $60 million. The transaction is likely to

close in the fourth quarter ending April 30.