Mondelēz eyes potential in better-for-you chocolate, crackers and well-being snacks after snapping up Hu
06 Jan 2021 --- As consumer tastes increasingly shift toward healthier foods, Mondelēz International continues to add to its snacking portfolio by buying up the rest of Hu (as in “Human”) Master Holdings, the parent company of Hu Products. Alongside growth opportunities in chocolate, Mondelēz says it eyes potential in cross-category crackers and possibilities to expand distribution, including e-commerce and premium conventional retail.
The acquisition of the fast-growing US snacking company offering high-quality snacks made from simple ingredients comes after Mondelēz made a minority investment in Hu in April 2019.
This initial investment came through Mondelēz’s venture initiative SnackFutures, an innovation and venture hub which aims to uncover snacking growth opportunities within high-growth strategic priorities: well-being and premium.
The program is supported by a global ecosystem of internal experts and external partners. SnackFutures employs three core principles of growth to accelerate innovation, including the invention of new brands and businesses, the reinvention of small-scale brands with large-scale potential and venture investments with start-up entrepreneurs.
Mondelēz International’s 2019 minority investment in Hu granted a right of the first offer to acquire the company. Following a competitive bid for Hu, Mondelēz International successfully acquired 100 percent ownership of the brand. The acquisition closed on January 4.
The financial terms of the deal were not disclosed.
Hu fast became known as a US category leader in confectionery brands after picking up some accolades for its vegan and paleo-friendly chocolate bars.Category leading vegan chocolate
Hu, which comes from the phrase “Get Back to Human,” is marketed as a purpose-led lifestyle brand. It has gained popularity since it burst onto the scene in 2021, initially operating as Hu Kitchen, a high-end restaurant in New York City.
Hu gathered momentum and fast became known as a US category leader in confectionery brands after picking up some accolades for its vegan and paleo-friendly chocolate bars. It gained a strong following after developing a brand portfolio of wellness-focused, vegan and paleo-friendly snacks.
The company expanded its award-winning vegan and paleo-friendly chocolate bars, which follow a strict set of “Ultrasimple” ingredient guardrails and sourcing practices. Hu’s chocolate was inspired by the paleo movement and developed by the founding family, including Jason H. Karp and siblings Jordan Brown and Jessica (Brown) Karp.
Recently, Hu has broadened its offerings to include premium, grain-free crackers and begun scaling its distribution to US grocery stores.
Unlocking emerging snacking opportunities
Hu is a strong strategic complement to Mondelēz International’s snacking portfolio, stresses Glen Walter, EVP & President, Mondelēz International North America. “We’ve been very impressed with the Hu management team as a minority investor and look forward to working with Jordan Brown and Mark Ramadan and the rest of the Hu team to provide support and resources for the brand’s next chapter of growth.”
“Jordan, Jessica and I started Hu Kitchen because there was a need to trust and understand every ingredient in our food,” adds Jason H. Karp, Chairman and Co-Founder of Hu. “Eight years ago, we felt there was a need for delicious food that could change how you feel and compliment a healthier lifestyle.”
“Mondelēz International has been our minority partner for almost two years, and we are excited to fully join their family of brands because we believe their resources, strengths, and progressive vision can help us accelerate positive change within snacking and grow the Hu platform in a bigger and broader way.”
Ingredient and sourcing safeguards
Hu believes that Mondelēz – known for its iconic brands such as Oreo cookies and Ritz crackers – will bring its “Get Back To Human” concept to new audiences.
Joining other fast-growing premium and well-being snack brands, including Tate’s and Perfect Snacks, Hu will operate as part of the North American Ventures business model and remain focused on its key strategy of delivering high-quality chocolate and snacks – all with strict ingredient and sourcing safeguards.
As such, Mondelēz International will operate Hu as a separate business “to nurture its entrepreneurial spirit and maintain the authenticity of the brand and culture,” the company notes.
At the same time, Mondelēz will provide resources to help accelerate Hu’s growth. Hu will continue to produce all products at current manufacturing facilities. Hu senior leadership will receive a contingent payment based on the future performance of the company.
By Gaynor Selby
