CHICAGO -- The Kraft Heinz Co. has completed its acquisition of Primal Nutrition LLC, the maker of Primal Kitchen-branded snack bars and other paleo-focused food products, for $200 million. The two companies agreed on the deal in December 2018.
“Primal Kitchen is an authentic, premium and growing brand that complements our core condiments and sauces categories,” said Paulo Basilio, U.S. zone president for Kraft Heinz, Chicago. “We are excited to partner with the company’s strong team to drive growth across multiple categories and reach more consumers looking for these amazing products.”
This continues the flurry of acquisitions in the consumer packaged goods industry over the past year and a half—one of the key trends that defined the sector in 2018. The M&A feeding frenzy by large corporations is being driven in part by a surge in small CPG companies, Steve Rosenstock, consumer products practice lead for Clarkston Consulting, a Durham, N.C.-based consumer products consulting firm, told CSP.
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. Other Springboard brands include South African meat producer Ayoba-Yo; sauerkraut manufacturer Cleveland Kraut; avocado sauce supplier Kumana Foods; low-sugar lemonade maker Poppilu; and Quevos, a producer of egg-white chips.
“Kraft Heinz recognizes the value of our Primal Kitchen mission and the consumer demand for it,” said Mark Sisson, co-founder of Primal Kitchen. “This philosophy will stay with us as we leverage the resources of this new partnership to reach millions more of the consumers who have been seeking products like ours for years.”