Advertise with fastmoving.co.za
 
 

Food giants Unilever and Nestlé stepped up their push into healthier food and drink.
Food giants Unilever and Nestlé stepped up their push into healthier food and drink.

Unilever, Nestlé snap up Pukka and Sweet Earth

INTERNATIONAL NEWS

ESM.com - Sep 8th 2017, 09:42

Food giants Unilever and Nestlé stepped up their push into healthier food and drink, with the Anglo-Dutch company snapping up a UK maker of organic tea and its Swiss rival announcing a deal for a US seller of vegetarian burritos. 

Unilever said it has acquired Pukka Herbs, a rapidly expanding organic tea company with flavors such as turmeric gold and mint matcha. Nestlé agreed to buy California-based Sweet Earth, which makes frozen meals and chilled, plant-based burgers.

The acquisitions show how Big Food, spurred on by Amazon’s acquisition of Whole Foods, is accelerating efforts to expand beyond mainstream brands into healthier or ethically sourced fare. Acquisitions have ranged from mom-and-pop outfits to Danone’s $10 billion purchase of WhiteWave Foods Co. last year that gave it access to the best-selling US soy milk brand, Silk, and organic food.

Pukka, with more than £30 million ($39 million) in sales, is growing rapidly in the US and Europe, Unilever said in a statement Thursday. The herbal, fruit and green tea market is worth €1.6 billion ($1.9 billion), research firm Euromonitor said.

Tea, Mayo

Earlier this year, the Anglo-Dutch food and personal-care giant acquired Sir Kensington’s, a maker of condiments including vegan mayonnaise. The Lipton maker also owns T2, a high-end tea business with retail outlets.

“Pukka has strong values and a clear purpose that aligns fully with our own sustainable growth model,” said Kevin Havelock, president of Unilever’s refreshment business.

At Nestlé, Chief Executive Officer Mark Schneider has jump-started efforts to meet changing consumer demands for healthier products since taking over in January. The maker of Nespresso coffee has put its US confectionery business up for sale and acquired a stake in US startup Freshly, which makes natural prepared meals.

“Plant-based food is a significant trend for consumers, and getting exposure to it is clearly important to Nestle as it’s something they’re lacking,” said Robert Waldschmidt, an analyst at Liberum. The sector is growing by double digits and expected to become a $5 billion market in the US by 2020, Nestle said.

Neither Unilever nor Nestle disclosed terms of their purchases.

In February, Unilever rebuffed a $143 billion takeover approach from US food giant Kraft Heinz, arguing there was no financial or strategic merit. It has since reiterated its ambition to spend between €1 billion and €3 billion annually on acquisitions.

Sweet Earth, founded in 2011, will continue to operate independently, with support from Nestlé USA’s food division, the Swiss company said. Its meals are sold in more than 10,000 stores, including grocers like Whole Foods and Walmart.
Content ©2017 European Supermarket Magazine 

Read more about: unilever | sweet earth | pukka tea | nestle

Related News

Nestlé opens door to L'Oreal stake sale as growth slumps
16/02/2018 - 11:17
Nestlé SA opened the door to a possible sale of its L’Oreal SA stake in a move that would help CEO Mark Schneider sharpen the Swiss giant’s portfolio after the weakest sales growth in more than 20 years.

Nestlé accused of selling 'substandard' baby formula in SA
02/02/2018 - 13:47
Nestlé‚ the world’s largest packaged food firm‚ has been accused by the UK-based Changing Markets Foundation of selling "substandard" products in SA.

Nestle to cut 400 more jobs in France in a bid to cut costs
30/01/2018 - 15:30
Nestlé SA plans to cut as many as 400 jobs in France as the Swiss maker of Perrier water and Herta lunch meats cuts costs.

Nestlé moves chocolate research site from Switzerland to the UK
26/01/2018 - 09:09
Nestlé has announced it will transfer its Chocolate Centre of Excellence in Switzerland to the UK as the company aims to “improve the speed and agility of global innovation”.

Nestle to launch natural ruby chocolate KitKats
18/01/2018 - 14:01
Nestle will sweeten Japan’s Valentine’s Day with ruby-chocolate KitKats, choosing one of the world’s most candy-obsessed markets for the debut of the first new type of natural chocolate in more than 80 years.