Cerealto targets US snack market with investment in Fresca Foods
Key takeaways
- Cerealto expands into the US market by investing in Fresca Foods, tapping into the fast-growing organic snacking sector.
- Cerealto will hold a majority stake in the partnership, with Fresca Foods’ leadership retaining significant shareholding and operational control of US operations.
- The combination aims to leverage Cerealto’s scale and Fresca Foods’ innovation to drive growth across the US, Europe, and beyond.
Global food manufacturing firm Cerealto is expanding into the US market by investing in Fresca Foods, a multi-platform, snacks and baked goods co-manufacturer. The partnership marks Cerealto’s “first” manufacturing presence in the US and opens up opportunities for scaling the companies’ manufacturing and innovation platforms while supporting their shared customer base.
The companies will combine their “highly complementary” product portfolios, providing immediate entry into the fast-growing US natural and organic snacking market.
Cerealto will own the majority share in Fresca Foods, but the leadership team from Fresca Foods will retain a significant shareholding and maintain operational control of the day-to-day business in the US.
Fresca Foods will bring its innovation expertise and support for growing the US business, while Cerealto will provide its scale and experience across co-manufacturing and the private label sector.
Cerealto CEO, Bosco Fonts, says the collaboration gives the company a strong foothold in the “world’s largest snacking market,” shifting the business from predominantly European to international.
“With around 20% of our sales set to come from the US through this partnership, this is a transformative step for Cerealto. The US organic snacking category is already valued at around US$32 billion and projected to grow at more than 6% annually, so this is a huge opportunity to expand our footprint globally.”
Financial details of the deal have not been disclosed.
Expanding snack business
Cerealto is a third-party manufacturer of biscuits, cereals, and snacking bars, with ten production centers located across Spain, Portugal, the UK, and Mexico. With €100 million (US$115 million) invested (2022–2024) in capacity, efficiency, innovation, and acquisitions, the company reported €526 million in sales in 2024, up 6% from 2023.
Once the deal is finalized, 20% of Cerealto’s sales will come from the US, says CEO Bosco Fonts.Meanwhile, Fresca Foods specializes in natural, organic, and better-for-you bars, granolas, cookies, and crackers, and operates 350,000-square-foot manufacturing and warehouse space in Denver and Boulder County, Colorado.
The company’s Fresca Food Lab advances innovation by supporting CPG and emerging natural food brands in commercializing retail-ready concepts through outsourced ideation and product development.
Fresca Foods chairman Todd Dutkin says the collaboration brings “fresh investment and enhanced capabilities,” which will allow the company to accelerate innovation and deliver a complete range of snacking solutions to customers across the US, Europe, the UK, and beyond.
“Together with Cerealto, we have the platform, expertise, and shared ambition to accelerate growth as the leading co-manufacturing and private label snacking partner. We are truly excited for this next chapter in Fresca’s journey and the opportunities it will unlock for our team members, customers, and community,” adds Fresca Foods CEO Brandon Viar.
Innova Market Insights found that nearly one in two consumers interested in organic food trends agree they are willing to pay more for brands and products that are actively solving sustainability issues, even though organic food is not always the easiest or most affordable.
In other organic snack business updates, Hershey announced its intention to acquire US-based organic snacks firm LesserEvil earlier this year to expand its better-for-you portfolio.
