KP Snacks has moved into the nut butter category with the acquisition of branded leader Whole Earth Foods.
The Intersnack-owned crisps and snacks brands has announced the acquisition of Whole Earth from French-owned group Ecotone UK, which also supplies rice cake brand Kallo and Clipper Teas.
Terms of the deal were undisclosed.
The Whole Earth brand, which includes nut butters and soft drinks ranges, has expanded substantially since it was acquired by Ecotone in 2003 and is now the UK’s best selling peanut butter brand.
It has also grown the brand across organic peanut butter in other key European markets including Germany, the Netherlands, France, Spain and Italy.
The deal marks KP Snack’s first major acquisition since it bought Tyrrells from The Hershey Company in 2018 and popcorn brand Butterkist from Tangerine confectionery a year earlier.
Mark Thorpe, CEO of KP snacks, said: “Whole Earth Foods is a fantastic addition to our business, expanding our selection of delicious, healthier products. Known for its commitment to high-quality, nutritious food, Whole Earth Foods complements our portfolio of iconic brands and aligns with our sustainable business practices.”
However, the nut butter category has come under pressure in recent times after booming during Covid, with brands shedding 2.7% of their volumes amid commodity driven price increases as the cost of peanuts soared [NIQ 52 weeks to 9 September 2023].
Whole Earth itself has come under pressure from own label taking share from brands and fast-growing challenger Pip & Nut, which has posted double-digit growth for the past two years.
Whole Earth UK retail sales were up 0.4% to 28.6 in the year to September 2023 and down 2.2% the year earlier [NIQ].
Christophe Barnouin, CEO of Ecotone, commented: “This sale is an acknowledgement of Ecotone’s 22 years of sustainable growth with the Whole Earth brand, from a UK start-up to a leading European brand. The integration into KP Snacks will enable Whole Earth Foods to continue to invest and grow for the future.”
Ecotone UK does not split out Whole Earth sales, but total group sales under the wider Kallo Ltd were £121.8m in 2023, with sales growth of 8% driven by core brands.
KP Snacks saw total sales growth 14.8% to £626.7m in 2023 while profit margins rebounded.
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