Well-being snacks: Mondelēz International to acquire majority interest in Perfect Snacks
21 Jun 2019 --- Mondelēz International is strengthening its snack portfolio with the acquisition of Perfect Snacks, a supplier of refrigerated nutrition bars. With a range of refrigerated offerings including the Original Refrigerated Protein Bar, Perfect Snacks’ organic, non-GMO, nut-butter based protein bars and bites are a solid addition to Mondelēz International’s portfolio of global and local brands which includes Oreo, Cadbury, Milka and belVita, as well as Tate’s.
The transaction is expected to create growth opportunities by using the scale and resources of Mondelēz International to expand consumer penetration and US distribution of Perfect Snacks’ products and future innovation. The acquisition is subject to customary closing conditions and is expected to close later this summer following regulatory review. The financial terms of the transaction were not disclosed.
The move follows Mondelēz’s April investment in Hu – as in “Human” – Master Holdings, the parent company of both Hu Products and Hu Kitchen, a US-based snacking company offering minimally processed snacks.
In 2018, Perfect Snacks generated approximately US$70 million in net revenue, with strong double-digit growth year-on-year. Following increased distribution the US, the company’s range expanded from the original Perfect Bar, to include offerings like Perfect Kids Refrigerated Snack Bars and Perfect Bites Refrigerated Protein Snacks.
The US refrigerated snacks segment generates US$20 billion in annual sales and reportedly represents one-third of the total US snacking market. Within that space, well-being snacks, which includes nutrition bars, packs with nuts and fruits, yogurts, as well as hummus, represent around US$7 billion and is growing faster than other refrigerated snacks at around 8 percent a year over the past three years.
“We have a mission to lead the future of snacking by offering the right product, for the right moment, made the right way,” says Glen Walter, Executive Vice President and President, North America, for Mondelēz International. “Perfect Snacks is an amazing brand, growing fast and a great complement to our existing portfolio that expands our leadership across broader snacking. Well-being snacks in general, and refrigerated well-being snacks in particular are a fast-growing segment and we look forward to working with and supporting the Keith family to help accelerate this brand’s great momentum.”
Innova Market Insights pegged Snacking: Definitive Occasions as its number 5 trend for 2019, denoting a consumer landscape where snacking has become more than just an optional extra, and become a definitive occasion. Snacking is a central focus of innovation across all food & beverage categories, with a 10 percent average annual growth of global launches with a snacking claim over the past five years (CAGR, 2013-2017).
“We believe Mondelēz International’s purpose, to ‘empower people to snack right,’ aligns very well with why we started this brand and this business. We look forward to the great opportunity for Perfect Snacks to continue to grow and innovate as part of Mondelēz International,” says Bill Keith, Co-Founder and CEO of Perfect Snacks.
Mondelēz International plans to operate Perfect Snacks as a separate business to “nurture its entrepreneurial spirit and maintain the authenticity of the brand,” while providing resources to help accelerate growth. The current senior leadership, including Bill, Leigh and Charisse Keith, will continue to run the business from its headquarters in San Diego, California and they will retain a significant minority equity interest in the company. All Perfect Snacks products will continue to be made at their current manufacturing locations.
