Princes acquires Kraft Heinz’s baby food brand Plasmon
Key takeaways
- Princes Group acquired Plasmon from Kraft Heinz for €124.3 million (US$145 million), using a lease-back structure starting in 2026.
- The deal strengthens Princes’ position in European baby food, integrating Plasmon with its existing Italian manufacturing base.
- Plasmon brings €170 (US$198 million) in revenues, a major biscuit facility, and strong exposure to fast-growing premium and organic infant nutrition.
NewPrinces has completed its acquisition of Italian baby food specialist Plasmon from Kraft Heinz for €124.3 million (US$128 million), finalizing a deal first announced in July 2025 as part of the US giant’s broader portfolio rationalization.
The transaction includes a lease-back structure, which took effect from January 1, 2026, under which Princes Italia will pay €3 million (US$3.5 million) annually plus 1.5% of revenues to operate Plasmon’s business. All manufacturing, marketing, and distribution operations now transfer to Princes Italia, though the parties may later assess a full asset transfer.
The deal reunites Plasmon’s current operations with Princes’ Ozzano Taro facility, which the group acquired from Kraft Heinz in 2015 and historically functioned as a Plasmon factory producing infant formula until recently.
Kraft Heinz’s sale of Plasmon forms part of a wider restructuring that will see the company split into two independent entities by mid-2026. The separation will create a Global Taste Elevation business focused on brands including Heinz and Philadelphia, and a North American Grocery company housing Oscar Mayer and Kraft Singles.
Angelo Mastrolia, chairman of Princes Group, says: “The integration of the Plasmon Business represents a strategically important step for Princes Group. It reinforces our leadership in baby food and specialized nutrition, builds on long-standing industrial expertise, and reunites highly complementary assets within the group.”
European market dynamics
The acquisition positions Princes to capitalize on shifting consumer preferences in European infant nutrition markets. Data from Innova Market Insights shows Europe accounts for 42% of global infant and toddler product launches, with clean label claims widely deployed across the category.
Market research indicates baby snacks represent the fastest-growing subcategory in infant nutrition, expanding from 10% of launches in 2019 to 15% in 2023, while demand for premium and organic formulations continues to accelerate across developed European markets.
Founded in Milan in 1902, Plasmon ranks among Italy’s leading early childhood nutrition brands with fiscal 2024 revenues of €170 million (US$198 million). Its Latina facility produces approximately 1.8 billion biscuits annually for the domestic market while employing around 300 staff.
The plant will continue manufacturing Heinz Baby Food for the UK market under a co-packing agreement, with all employees remaining in their current roles.
Manufacturing integration
Plasmon’s Latina site specializes in biscuits, jars, and pouches, complementing Ozzano Taro’s focus on liquid milk and powdered infant formula. The integrated manufacturing footprint enables Princes to accelerate new product development and expand offerings in premium and organic segments, Mastrolia says.
The portfolio includes flagship brand Plasmon alongside Nipiol, BiAglut, Aproten, and Dieterba, covering biscuits, purées, cereals, and snacks for early childhood nutrition and specialized dietary requirements.
Princes Group’s established presence across 60-plus countries and distribution networks in key European markets provides infrastructure for international expansion of the Plasmon brand, according to the company.
“This transaction strengthens our European industrial platform and supports the continued development of our core categories over the long term,” says Mastrolia.
The lease arrangement runs for an initial three years with renewal rights held solely by Princes Italia, requiring six months’ notice to Plasmon.
