Kraft Heinz is acquiring better-for-you sauces and dressings manufacturer Primal Kitchen in a $200 million deal.
Founded by Mark Sisson and Morgan Buehler, Primal Kitchen makes products including mayonnaise, salad dressings and avocado oil.
It also has a growing product line in healthy snacks, which is advantageous for Kraft Heinz looking to diversify its pipeline and move into deeper into the better-for-you market.
Primal Kitchen will join Kraft Heinz under Springboard, which is Kraft Heinz’s dynamic platform created to partner with founders and brands that will disrupt the food industry.
Mr Sisson said that the combining with Springboard will allow him to realise his vision of changing “the way the world eats”.
Primal Kitchen will leverage Kraft Heinz’s assets and infrastructure, while still operating as an autonomous company. It will continue to be led by its current leadership team at its Oxnard, California HQ.
“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, US 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 & Sauces categories, and we are excited to partner with the Company’s strong existing team to drive growth across multiple categories going forward.”
Mr Sisson 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 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.”
The deal is expected to complete in early 2019.
