Sector News

Kellogg to buy Rxbar maker Chicago Bar Company for $600m

October 9, 2017
Food & Drink

Kellogg has announced it will acquire Chicago Bar Company, maker of clean-label protein bars Rxbar, in a deal worth $600 million.

It is predicted the Rxbar’s net sales will be around $120 million in 2017. With a base of egg whites, fruit and nuts, each Rxbar provides 12 grams of protein and between 210 and 220 calories.

As part of the deal, Rxbar will continue to operate independently as a standalone business, and will be able to leverage the cereal company’s scale and resources to drive growth.

Rxbars are available in 11 flavours, as well as additional seasonal and limited-time varieties, and are distributed in the US. Variants include: coconut chocolate, pumpkin spice, chocolate sea salt, and coffee chocolate. Rxbar-mint-chocolate

The company also recently launched Rxbar Kids, which contain the same core ingredients as the original bars, but in ‘kid-friendly flavours and portions’.

Newly-appointed Kellogg Company CEO Steve Cahillane said: “Rxbar is a unique and innovative company. Its values, people and cutting-edge approach represent an exciting opportunity for our business.

“Adding a pioneer in clean-label, high-protein snacking to our portfolio bolsters our already strong wholesome snacks offering. Rxbar is an excellent strategic fit for Kellogg as we pivot to growth.”

“With its strong millennial consumption and diversified channel presence including ecommerce, Rxbar is perfectly positioned to perform well against future food trends

Rxbar CEO and co-founder Peter Rahal said the brand took its time to decide who to partner with.

Joining Kellogg is not only a great cultural fit, but it provides us with the tools and resources to accelerate our growth

“We have always been committed to delivering the highest quality products that taste great, and being radically candid and transparent with our consumers, and these priorities remain,” he said.

“Joining Kellogg is not only a great cultural fit, but it provides us with the tools and resources to accelerate our growth so the brand can scale even faster than it is today.”

Kellogg North America president Paul Norman added: “The Rxbar team has built an incredible business, with impressive growth and profitability. Our focus will be on helping to drive the brand’s continued growth. We’re excited to welcome the Rxbar team to Kellogg.”

In its second-quarter results published in August, Kellogg posted a net sales decrease of 2.5% to $3.19 billion. Income was up 0.7% to $282 million.


comments closed

Related News

January 15, 2022

DSM forges F&B business group integrating taste, texture and health know-how

Food & Drink

Health and nutrition giant DSM is showcasing a new integrated F&B operating structure that unifies food specialties, hydrocolloids and nutritional products. Positioned as a business group, it will harness the gamut of taste, texture and health solutions to manufacturers in the F&B sector.

January 15, 2022

Keeping food transparent: F&B suppliers talk eliminating bias and the pitfalls of eco-labeling

Food & Drink

FoodIngredientsFirst speaks to key suppliers Corbion, Agrana Fruit and Kerry to discuss what core strategies are helping keep food businesses up-to-speed with their environmental reporting while remaining bias-free.

January 15, 2022

Titanium dioxide EU ban comes into force, companies have six months to adjust

Food & Drink

France banned the use of the additive in 2020, leading companies such as Lonza to launch Vcaps Plus White Opal, its first commercially-available titanium dioxide-free semi-opaque capsule for food supplements. The move followed several lobby groups urging the European Commission to prohibit TiO2.

Send this to a friend