Kraft Heinz has entered into an agreement to acquire US condiments and sauces brand Primal Kitchen for approximately $200 million.
Founded by Mark Sisson and Morgan Buehler, the brand also sells protein bars, avocado oil and paleo snack bars. It is expected to generate approximately $50 million in net sales this year.
Primal Kitchen will join Kraft Heinz under Springboard, the company’s platform created to partner with founders and brands that are seeking to disrupt the food industry.
Primal Kitchen will leverage Kraft Heinz’s assets and infrastructure, while still operating as an autonomous company. The brand’s headquarters will remain in Oxnard, California, and it will still be led by its current leadership team.
Paulo Basilio, US zone president for Kraft Heinz, said: “The proposed partnership with Primal Kitchen is consistent with Kraft Heinz’s vision to be the best food company, growing a better world. 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.”
Mark Sisson, co-founder of Primal Kitchen, added: “My mission has always been to change the way the world eats. With that goal in mind, Primal Kitchen launched in 2015 to offer health-conscious consumers the best possible choices in condiments, sauces, dressings and healthy snacks.
“While our growth to date has exceeded all industry standards and expectations, our partnership with an industry leader like Kraft Heinz now offers an unrivalled 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.”
Kraft Heinz said it expects the transaction to be closed in early 2019.
© FoodBev Media Ltd 2020
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