CHICAGO -- The Kraft Heinz Co. has agreed to acquire Primal Nutrition LLC, the maker of Primal Kitchen-branded snack bars and other paleo-focused food products, for $200 million. The companies expect the deal to close in early 2019.
The acquisition continues a busy year for Kraft Heinz. In September, the company partnered with the Hershey Co. to launch Hershey’s Milk Chocolate and Reese’s Peanut Butter Cup Dairy Whipped Toppings. Six months earlier, Kraft Heinz introduced Mayochup, a combination of ketchup and mayonnaise, as well as Ssam, a specialty sauce from New York-based restaurant Momofuku.
Primal Kitchen will join Springboard, Kraft Heinz’s platform dedicated to growing disruptive brands in the food and beverage sector through market capabilities, research and development, and consumer insights. The paleo food brand will continue autonomous operations from its Oxnard, Calif., headquarters.
“The proposed partnership with Primal Kitchen is consistent with Kraft Heinz’s vision to be the best food company, growing a better world,” said Paulo Basilio, U.S. zone president for Kraft Heinz. “The Primal Kitchen team has built an amazing portfolio of the world’s best-tasting, health-enhancing, real-food pantry staples. Primal Kitchen is an authentic, premium and growing brand that fits perfectly with our core condiments and sauces categories, and we are excited to partner with the company’s strong existing team to drive growth across multiple categories going forward.”
Primal Kitchen manufactures paleo-friendly foods that focus on beneficial fats and clean protein. Besides its line of protein and collagen nut and seed bars, the company also produces various condiments and avocado oils, all of which are free of dairy, gluten, grains and soy. The company is expected to generate roughly $50 million in net sales by the end of 2018, according to Kraft Heinz.
“Primal Kitchen launched in 2015 to offer health-conscious consumers the best possible choices in condiments, sauces, dressings and healthy snacks,” said Mark Sisson, co-founder of Primal Kitchen. “While our growth to date has exceeded all industry standards and expectations, our partnership with an industry leader like Kraft Heinz now offers an unrivaled opportunity to reach millions more of the consumers who have been seeking products like ours for years. Based on the significant time I've spent with the Kraft Heinz team, we share a common vision regarding the future of food and the importance of consumer choices. I look forward to working with them to grow this amazing brand."
Chicago-based Kraft Heinz is a leading food and beverage company. Its brands include ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Maxwell House, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Smart Ones and Velveeta. The company had more than $26 billion in sales in 2017.