CHICAGO, United States — Kraft Heinz has acquired US paleo brand Primal Kitchen for approximately $200 million. The move comes amid a flurry of activity in the F&B sector, in which big brands are splashing out on disruptive startups to drive innovation.
Primal Kitchen will join Kraft Heinz under Springboard, the company’s dynamic platform created to partner with founders and brands that it believes will disrupt the food industry.
Founded by Mark Sisson and Morgan Buehler in 2015, Primal Kitchen is a better-for-you brand primarily focused on condiments, sauces and dressings including mayonnaise and avocado oil, with growing product lines in the healthy snacks category. The brand currently holds leading positions in both e-commerce and natural channels and is expected to generate approximately $50 million in net sales this year.
According to Co-Founder Mark Sisson, Primal Kitchen’s mission has always been to change the way the world eats — a vision he believes Kraft Heinz can help to accelerate.
“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,” he commented.
“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.”
As part of the deal, Primal Kitchen will leverage Kraft Heinz’s assets and infrastructure, while still operating as an autonomous company, led by its current leadership team. It joins South African biltong brand Ayoba-Yo, fermented food brand Cleveland Kraut and antioxidant lemonade brand Poppilu in the programme, which plans to develop brands within one of four pillars that are shaping the future of F&B: Natural & Organic, Specialty & Craft, Health & Performance and Experiential brands
“We are committed to supporting and partnering with teams that will impact the future of our industry,” commented Sergio Eleuterio, General Manager, Springboard Brands, earlier this year. “We are actively searching for emergent, authentic brands that can expand into new categories, and are looking to build a network of founders to help shape the future of foods and beverages.”
Kraft Heinz partnership with Primal Kitchen is consistent with its goal to position itself as a leading food company that’s growing a better world, added Paulo Basilio, US Zone President for the FMCG.
“The Primal Kitchen team has built an amazing portfolio of the world’s best-tasting, health-enhancing, real-food pantry staples, and we are excited to partner with the company’s strong existing team to drive growth across multiple categories going forward.”