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.
Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.
Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.
The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.