Sector News

Hershey close to acquiring healthy snacks company Krave -sources

January 28, 2015
Consumer Packaged Goods
(Reuters) – Chocolate maker Hershey Co is in late-stage talks to acquire Krave, a maker of healthy beef, turkey and pork jerky snacks, according to people familiar with the matter.
 
The deal is expected to value Sonoma, California-based Krave at between $200 million and $300 million, the people said this week. An announcement could come as soon as this week, they added.
 
The sources requested anonymity because the talks are confidential. Hershey declined to comment, while a Krave representative did not immediately respond to a request for comment.
 
Hershey, which is set to announce its fourth-quarter earnings on Thursday, has been looking at ways to expand its products outside of its iconic confectionary brands into portable snacks, according to a source familiar with the company’s thinking.
 
Hershey’s most recent acquisition, a majority share of Chinese candy maker Shanghai Golden Monkey Food Co for $584 million in late 2013, was largely intended to build up the company’s international footprint.
 
Krave manufactures jerky snacks with flavors such as basil citrus, lemon garlic, chili lime and sweet chipotle. It sells to retailers that include Target Corp, Vitamin Shoppe Inc and Safeway Inc.
 
Krave was founded in 2010 by Jon Sebastiani, a fourth-generation winemaker looking for a healthy way to regain energy while training for the New York City Marathon.
 
The company received an investment from private equity firm Alliance Consumer Growth in 2013 for a minority stake.
 
Consolidation in the so-called better-for-you snacking category has picked up in the last year as consumers’ eating habits have begun to shift.
 
Recent deals have included JM Smucker Co’s acquisition of fruits and nuts manufacturer Sahale Snacks in August and TreeHouse Foods Inc’s purchase of trail mix maker Flagstone Foods in June.
 
The U.S. snack industry is a $35 billion market, according to market research firm IBISWorld, with annual growth of around 4 percent.
 
By Olivia Oran (Additional reporting by Mike Stone in New York)

comments closed

Related News

February 25, 2024

The Body Shop faces store closures, layoffs and ingredient surplus after Aurelius acquisition

Consumer Packaged Goods

Recent reports reveal The Body Shop will shut up to half of its 198 stores in the UK and cut the size of its head office, incurring hundreds of job losses. According to the firm overseeing the restructuring of the beauty retailer, closures will begin this Tuesday.

February 25, 2024

Kroger and Albertsons face lawsuits to block $24.6bn merger – Bloomberg

Consumer Packaged Goods

Amidst brewing tensions, the US Federal Trade Commission (FTC) and a coalition of states are poised to take legal action as early as next week, aiming to prevent grocery giant Kroger’s $24.6 billion acquisition bid for Albertsons, Bloomberg reported.

February 25, 2024

Diageo reportedly in talks to offload trio of brands, including Pimm’s

Consumer Packaged Goods

The owner of Guinness and Baileys has hired financial service group Rothschild to explore the sale, which includes Pimm’s, fruit liqueur brand Safari and Pampero rum. Each brand could be offloaded individually or as a three, according to Sky News.

How can we help you?

We're easy to reach