What the Nathan’s Famous Deal Says About Brand Power

The Nathan's Famous, Inc. acquisition is an amazing case study in the power of brand.

While 110 year old Nathan’s was already iconic, Smithfield Foods has been manufacturing and distributing Nathan’s hot dogs since 2014. They ran the operations. They handled the distribution. They marketed the brand.

But they didn’t own it.

Their license was set to expire in 2032, which meant eventually renegotiating from a position of dependency or… watching a competitor take over a brand they’d spent a decade building.

So they bought it.

$450M to own it forever instead of effectively “renting” it until 2032.

For CPG founders, this is a good reminder: your brand is an asset. Manufacturing can be contracted. Distribution can be partnered. But the brand - the name consumers trust, the shelf space you’ve earned, the identity you’ve built - that’s what gets acquired.

That doesn’t mean the quality of your product isn’t important, but your brand can be what makes a customer say yes to you, and no to competitors.

Nathan’s posted ~$150M revenue and $24M profit last year. They’re not being bought for their hot dog recipe. They’re being bought because “Nathan’s Famous” means something to consumers that Smithfield can’t replicate.

And… special kudos to ChatGPT for bringing my hot dog vision to life.