Danone to boost nutrition portfolio with majority stake in plant-based organic formula firm Kate Farms
Danone has agreed to acquire a majority stake in Kate Farms, a fast-growing US business offering a wide array of plant-based, organic nutrition products for medical and everyday needs. The French multinational food company says Kate Farms’ “highly complementary products” will enhance Danone’s specialized nutrition offerings.
Danone, whose international brands include Activia, Actimel, Alpro, water brands Evian and Volvic, as well as plant-based milk brand Silk, has been eyeing the California-based Kate Farms, which makes formulas and shakes for everyday needs as well as for tube feeding for people with health conditions, for some time.
Danone initially signaled its interest in acquisitions after reporting strong 2024 earnings in February.
The size of the majority stake and the financial terms were not disclosed.
Strengthening nutrition
The deal represents an important milestone in Danone’s specialized nutrition strategy and the partnership aligns with Danone’s science-based and patient-centered approach to specialized nutrition.
“Kate Farms’ innovative medical nutrition products expand our offerings, enhance our ability to provide better solutions for people with wide-ranging health needs, and support healthier lives, both in the US and globally,” says Shane Grant, Danone group deputy CEO.
“With a deep 80-year heritage and over 5,000 team members in the US, Danone has built a thriving local presence across the country. This new partnership further builds on that footprint and enhances our commitment to the growth of our communities.”
Brett Matthews, Kate Farms’ chairman and CEO, says the company is focused on helping deliver quality nutrition.
“We are both focused on going above and beyond to help people with health needs and the medical professionals supporting those needs in the US. Together, we can bring our innovative scientifically-developed nutritional products to more and more people. Building on Danone’s expertise, we can also expand internationally.”
Kate Farms CEO, Brett Matthews, will serve as chairman and CEO of Danone's North American Medical Nutrition business.
“It is rare that two companies come together by virtue of the same values and a philosophy of building a growth company that helps people live their best lives. As a business founded on and guided by deeply held values, it was important for us to partner with an organization that is aligned with our mission in this way, and we believe Danone is the perfect fit to continue to make nutrition the foundation of health.”
Danone’s developments
The deal will see Kate Farms’ nutrition products reach more consumers and patients, bringing high-quality nutrition to more people with a wide range of health needs.
Richard and Michelle Laver founded the company in 2012 after their daughter Kate, who has cerebral palsy, had difficulties with eating. Their products are sold to hospitals and consumers across the country.
Today’s acquisition announcement is the latest in Danone sharpening focus on plant-based products and solutions as well as other brands in the business portfolio.
In March, Danone-owned plant-based brand Alpro announced a multi-million-pound investment in the UK to make its oat drink from 100% British oats for the first time. The company will source the oats directly from British farmers, with the aim of strengthening local farming and supporting its plant-based range.
In September, Ajinomoto and Danone joined forces to reduce greenhouse gas emissions from the milk supply chain using AjiPro-L, a lysine supplement for cow feed.
A few months earlier, Danone started a collaboration with the US-based precision fermentation start-up DMC Biotechnologies, tire manufacturer Michelin, and French bank Crédit Agricole Centre to create the “Biotech Open Platform” that bolsters the development of precision fermentation on a larger scale.
