NOSHscape: The Latest Food Brand News

Our Home Acquires ParmCrisps From Hain Celestial

Better-for-you snack platform Our Home is seeking to accelerate growth with the acquisition of ParmCrisps from Hain Celestial Group, which the companies announced on Sept. 3. The deal came just one week after the company acquired Pop Secret from Campbell Soup Company.

As part of the transaction, Our Home will add ParmCrisps to its family of brands – which includes Food Should Taste Good, Popchips, Real Food From the Ground Up, You Need This, RW Garcia and Sonoma Creamery– and take over its production facility in York, Pennsylvania. The deal adds complementary manufacturing, innovation and distribution to the platform following its acquisition of Sonoma Creamery earlier this year, according to the company.

“The combination of our Sonoma Creamery and ParmCrisps talent will drive tremendous IP and knowledge sharing, benefitting both brands, our retail partners and, most importantly, our consumers,” said Aaron Greenwald, founder and CEO of Our Home, in a statement.

Founded in 2017, ParmCrisps produces a portfolio of high-protein, low-carb cheese crisps and snack mixes. In 2021, Hain Celestial purchased That’s How We Roll, the producer and marketer of both ParmCrisps and bite-sized cookie brand Thinsters, from Clearlake Capital Group for approximately $259 million in cash. Hain sold Thinsters to Icee and Dippin’ Dots owner J&J Snack Foods Corp. earlier this year in an all-cash transaction.

According to market researcher Grand View Research, the global cheese snacks market size was valued at $64.6 billion in 2021 and is expected to grow at a CAGR of 6.3% between 2022 and 2030. Competitors in the cheese crisp space include Whisps, John Wm. Macy’s and private label products from retailers like Wegman’s and Albertson’s (Open Nature brand).

For Hain Celestial, the move further optimizes its product portfolio and streamlines its supply chain to drive greater optimal efficiency and margin expansion. According to a press release, the company will use proceeds from the sale to pay down its debt.

In fiscal 2024, Hain’s organic net sales growth was down 2% from the previous year. The decline was driven primarily by Terra and ParmCrisps and partially offset by growth in Garden Veggie Snacks.

ParmCrisps’ acquisition comes as part of Hain Reimagined, the company’s multi-year plan focused on accelerating growth in key brands across snack, baby and kids food, beverages, meal prep and personal care. With the sale of ParmCrisps, Hain will reduce its manufacturing footprint and co-manufacturer network while streamlining its vendor base.

“By divesting ParmCrisps, we can continue to prioritize driving market reach and category scale of our core better-for-you brands,” said Wendy Davidson, president and CEO of Hain Celestial Group, in a statement.

Daily Crunch Snags $4 Million in Series A

Daily Crunch has scooped up $4 million in a Series A funding round led by Launch Tennessee with participation from various strategic investors. The Nashville-based snack maker plans to use the capital to support expanded retail distribution, increased production capacity, innovation and marketing efforts.

COO Dan Stephenson described the fundraising as “a mix of an angel round and a venture round” including retail and food industry leaders and founders. Lead backer Launch Tennessee, a public-private partnership that supports entrepreneurship and economic development in the state, previously invested in the company’s seed round.

“As a consumer packaged goods company, we’re very aware of the climate right now and how it’s really difficult to get fundraising, and we had to really think outside the box,” co-founder Laurel Orley told Nosh.

Founded in 2020, Daily Crunch markets a line of snack mixes featuring sprouted nuts that are made using a patented process and are more nutritious and crunchier than raw or roasted nuts, according to the company. The products are available nationwide at Target, Meijer, Erewhon and CVS, in addition to airports, hotel snack bars and corporate pantries. Flavors include Nashville Hot, Dill Pickle, Cacao & Sea Salt and more.

“We’re growing rapidly. We’re going to double again in 2025, and so there’s definitely going to be a need for working capital,” Stephenson told Nosh. “We’re also going to increase the size of the team. So we’ve been lean and mean for a while, with three, four full-time people, and we’ve hired some awesome people to fill key roles in the organization” across operations, sales and marketing.

In addition to the funding, Daily Crunch formed a board of directors that includes Nancy Pak, former CEO of Tate’s Bake Shop and president of North America Ventures at Mondelez International; Steven Barr, who previously led PwC’s Global and U.S. Consumer Markets practice; and Matt Jonna, co-founder and CEO of Plum Market.

Daily Crunch is one of the nation’s fastest-growing private food companies, notching 1,547% growth over a three-year period, according to the Inc. 5000 annual ranking. The company had $2.6 million in sales last year, and sales were projected to reach $5.5 million in 2024, according to Paperboy Ventures.

“[This was] a year of building and getting into these retailers that we’ve for so long wanted to get into… and next year is also going to be about building velocity, continuing to build that relationship with the consumer by telling our story so they know who we are and why they want to purchase us,” Orley said.

Stuffed Puffs Acquired; Pa. Facility to Close

Contract and private label manufacturer Mount Franklin Foods’ confectionary portfolio is growing with the announcement that it has acquired the assets of filled marshmallow maker Stuffed Puffs for an undisclosed sum. The deal is effective immediately.

“As we continue to evolve our business, the acquisition of Stuffed Puffs represents a significant step in broadening our confectionary portfolio. We are excited to wed our strengths with those of Stuffed Puffs and deliver even more value and innovation to our customers,” said Enrique Grajeda, CEO of Mount Franklin Foods, in a press release.

Per terms of the deal, Stuffed Puffs will shutter its Bethlehem, Penn. facility, according to a WARN notice submitted by the brand to the Department of Labor & Industry. The closure will affect 106 employees and is set to begin in October.

Founded in 2012 by Michael Tierney, Stuffed Puffs is best known for its proprietary technology for producing marshmallow products filled with milk chocolate and other ingredients. The brand’s current lineup includes The OGs (Classic Milk Chocolate Puffs and Salted Caramel Puffs) and Bites (S’Mores, Cookies ‘n Creme, Birthday Cake and Cinnamon Toast Crunch).

The company has benefited from celebrity investors like Grammy-nominated artist Marshmello and his manager, Moe Shalizi. According to today’s announcement, their reach was “pivotal” in connecting the brand with a broad audience.

Earlier this year, Stuffed Puffs reinvented its bestselling Classic Milk Chocolate Puffs, now featuring a ganache-style chocolate-base center. The brand also extended its soft center technology to the Salted Caramel Stuffed Puffs. Venturing beyond its classic offerings, Stuffed Puffs made its first foray into sour candy in March via a limited edition Easter launch with the Hershey-owned Jolly Ranchers brand.

“We are thrilled to join the Mount Franklin Foods Family. With a shared vision for the future of Stuffed Puffs, our strategic alignment with Mount Franklin Foods, together with its scale and resources, will be a major unlock for us to accelerate our growth trajectory and innovation pipeline,” said Tierney in a statement.

The North America marshmallow market size is projected to reach $535 million by 2028, growing at a CAGR of 6.61%, according to market researcher Fortune Business Insights. Growth in the sector is attributed to an increase in consumer demand for non-chocolate candies, as well as the permissible indulgence trend.

Mount Franklin Foods, founded in 1907, serves the retail and foodservice industries, manufacturing a variety of candy, mint and nut products, including gummies, jellies, mints, fruit snacks, and snack mixes under brands like Azar Nut, Sunrise Confections and Hospitality Mints. The acquisition aligns with the company’s strategic goal of diversifying and expanding its product offerings.

Peter Rahal’s New Protein Bar Startup Raises $10 Million

Ahead of its slated debut for mid-September, David, the new protein bar brand from RXBAR founder and former CEO Peter Rahal, has raised $10 million in seed funding to support new product development and hires in a round led by Rahal, with additional participation from Valor Siren Ventures, Peter Attia, M.D., and Andrew Huberman, Ph.D, neuroscientist and host of the popular wellness-focused “Huberman Lab” podcast.

A nod to the Michaelangelo masterpiece, David was first revealed back in March by Rahal and co-founder Zach Ranen – founder of online bakery startup RAIZE – as a line of “high-protein, low-calorie, blood-sugar-friendly foods” allowing “customers [to] be strong and not overfat.” With 28 grams of protein in each bar, the brand promises “the most protein per calorie of any currently available protein bar,” with 150 calories and no sugar, gluten, artificial sweeteners or flavors.

“My involvement with David stems from a shared commitment to science-driven nutrition that prioritizes muscle growth and effective fat management,” said Dr. Attia, who also serves as David’s Chief Science Officer, in a statement Tuesday. “Protein is essential for longevity, and our products are designed with that in mind. With Peter Rahal’s proven leadership and the strategic backing of our investors, I believe we are set to lead the industry in creating meaningful change.”

Rahal has remained busy in the years following the sale of RXBAR to Kellogg Company (now Kellanova) for $600 million in 2017. He continued to lead operations as CEO for 18 months after the transaction, prior to stepping into a founder’s role to focus on innovation and strategy. Around that time, he also launched Litani Ventures to invest in early-stage consumer products brands. His portfolio included Mush, Haven’s Kitchen, Banza, Three Wishes, Olipop and A Dozen Cousins, among others.

Additionally, according to his LinkedIn profile, Rahal is the co-founder and CEO of Linus Technology, which is described as a “food technology company built to help consumers achieve their protein consumption and weight management goals.”

David isn’t his only new CPG project, though. In late July, Rahal shared on LinkedIn that he is joining his RXBAR co-founder Jared Smith and Tom Melcher – most recently chief operating officer at MrBeast’s Feastables brand who earlier held operations and supply chain roles at RXBAR – to launch a confectionery company in Chicago, describing it as “an opportunity to disrupt the boring candy category full of faux health.”

Saco Foods Acquires Pamela’s, Ancient Harvest

Saco Foods is upping its gluten-free intake.

The Wisconsin-based food company has acquired Quinoa Corporation, the parent company of legacy gluten-free food brands Ancient Harvest and Pamela’s, from Encore Consumer Capital. Former Quinoa Corporation CEO John Becker will now serve as president of the two brands. Terms of the deal were not disclosed

“I am excited to be joining the Saco platform, as it is a natural fit for our brands,” Becker said in a press release. “With the support of Saco, we have a great opportunity to reinvigorate these brands and expand our distribution while maintaining the high quality standards our customers and end consumers expect.”

The deal comes after a busy year for Saco, which owns a variety of gluten-free, shelf-stable dairy, baking and confectionery businesses. In January it acquired Solo Foods, the maker of cake and pastry fruit fillings, almond paste and marzipan, from Chicago-based Sokol & Company. At the end of that same month, Saco’s then-owner Benford Capital Partners exited, selling Saco off to Fengate Private Equity and Weathervane Investment Corp.

During Benford’s investment period, Saco Foods grew “over seven fold” via both organic initiatives as well as acquisitions which included sun-dried tomato producer California Sun Dry in 2018 and baking ingredients and snack products maker Hoosier Hill Farm in 2021. Saco’s portfolio also includes confectionery chocolate dips and coatings brand Dolci Frutta and instant dry milk, buttermilk and baking ingredients platform Saco Pantry.

The addition of Ancient Harvest and Pamela’s, which have both been around for over 30 years, brings a more distinct focus on gluten-free diets to the company’s portfolio of conventional confectionery and baking products. Both brands will be in good company in Saco’s portfolio: After all, the company originated as a pantry staple pioneer post-World War II as the first producer of instant dry milk and later, the first instant hot cocoa mix, Swiss Miss.

“Broadening our offering with their quality products complements our existing portfolio and leverages our shared service platform to improve service and reinvest in innovation to drive the organic growth of these great legacy brands,” said Tom Walzer, CEO of Saco Foods, in a press release.

Ancient Harvest, which helped introduce quinoa to the U.S. in the late 1980s currently sells a lineup of quinoa, protein pastas, hot cereal and polenta.

Pamela’s, which was acquired by Quinoa Corporation in 2020, produces gluten-free baking mixes, snack bars, cookies, graham crackers and flours. Following its 2020 acquisition, Becker and his team worked to bring the bakery brand into the modern era, discontinued low-performing SKUs and cut its 150-count product lineup in half.

Under Becker’s direction, Pamela’s business also shifted to an asset-light structure, leaving behind the majority of its team and production facility and moving into a network of co-manufacturers and distribution partners as well as tapping the expertise of Ancient Harvest’s existing team.

As of 2022, Ancient Harvest and Pamela’s managed over 80 products across seven center-store categories and had distribution in over 20,000 stores nationwide; Becker said at the time Pamela’s alone was a $30 million brand.

It’s Official: Mars Agrees to $36B Deal to Acquire Kellanova

After days of swirling speculation, Mars, Inc. entered into a definitive agreement to acquire Kellanova for $83.50 per share in cash, representing a total enterprise value of $35.9 billion.

The transaction includes all of Kellanova’s brands, assets and operations across snacking (Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain and RXBAR), international cereal and noodles, North American plant-based foods (MorningStar Farms) and frozen breakfast (Eggo).

In 2023, Kellanova generated net sales of more than $13 billion. It has a presence in 180 markets and employs approximately 23,000 people.

Kellanova’s portfolio expands Mars’ suite of billion-dollar snacking and confectionery brands including Snickers, M&M’s, Twix, Dove, Extra, KIND and Nature’s Bakery. Privately-held Mars had 2023 sales of more than $50 billion and employs more than 150,000 people across its petcare, snacking and food businesses.

The purchase price represents an acquisition multiple of 16.4x LTM adjusted EBITDA as of June 29, 2024.

Mars intends to finance the acquisition through a combination of cash-on-hand and new debt. The transaction remains subject to Kellanova shareholder approval and other customary closing conditions, and is expected to close within the first half of 2025.

Following the close, Kellanova will become part of Mars Snacking division, led by global president Andrew Clarke and headquartered in Chicago. Battle Creek, Mich., will be a “core location” for the combined organization.

In a statement, Clarke credited the companies’ complementary portfolios, routes-to-market and research and development capabilities in unlocking growth and unleashing “consumer-centric innovation to shape the future of responsible snacking.”

Kellanova was spun off from Battle Creek-based Kellogg Company’s North American cereal business last October and accounted for approximately 82% of the company’s portfolio. Steve Cahillane, chairman, president and CEO of Kellanova, called the combination with Mars “historic” and a “compelling cultural and strategic fit.”

“Kellanova has been on a transformation journey to become the world’s best snacking company, and this opportunity to join Mars enables us to accelerate the realization of our full potential and our vision. The transaction maximizes shareholder value through an all-cash transaction at an attractive purchase price and creates new and exciting opportunities for our employees, customers, and suppliers,” Cahillane said in a press release.

The addition of Kellanova marks a swerve from Mars’ recent acquisition history. Last year, the McLean, Va.-based company bought better-for-you meal maker Kevin’s Natural Foods for an undisclosed sum, months after it agreed to buy whole-fruit snack maker Trü Frü.

“In welcoming Kellanova’s portfolio of growing global brands, we have a substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future. We will honor the heritage and innovation behind Kellanova’s incredible snacking and food brands while combining our respective strengths to deliver more choice and innovation to consumers and customers,” said Poul Weihrauch, CEO and office of the president of Mars, in a statement.