Mondelēz International wants to grow in the $20 billion U.S refrigerated snacks segment and announced an agreement to acquire a majority interest in Perfect Snacks, a pioneer in the fast-growing refrigerated nutrition bars business.
In 2018, Perfect Snacks generated approximately $70 million in net revenue, with strong double-digit growth year-on-year.
According to “The Future of Fresh” Report published by Mintel on July 2018, the U.S. refrigerated snacks segment represents one third of the total U.S. snacking market. Within that space, well-being snacks, which includes nutrition bars, packs with nuts and fruits, yogurts as well as hummus, represent around $7 billion and is growing faster than other refrigerated snacks at around 8 percent a year over the past three years.
“We have a mission to lead the future of snacking by offering the right product, for the right moment, made the right way,” said Glen Walter, Executive Vice President and President, North America, for Mondelēz International. “Perfect Snacks is an amazing brand, growing fast and a great complement to our existing portfolio that expands our leadership across broader snacking. Well-being snacks in general, and refrigerated well-being snacks in particular, are a fast-growing segment and we look forward to working with and supporting the Keith family to help accelerate this brand’s great momentum.”
Inspired by their father, Bud Keith, and his early innovations in delivering whole food nutrition, the eldest of his 13 children came together in 2005 to turn his original nutrient-dense recipe into a brand that consumers have grown to love. With a loyal consumer base and increased distribution in U.S. retailers, the Perfect Snacks product range has recently expanded from the original Perfect Bar, to include exciting innovations like Perfect Kids Refrigerated Snack Bars and Perfect Bites Refrigerated Protein Snacks.
“We are so excited to be joining the Mondelēz International family,” said Bill Keith, Co-founder and CEO of Perfect Snacks. “We believe Mondelēz International’s purpose, to ‘empower people to snack right’, aligns very well with why we started this brand and this business. We look forward to the great opportunity for Perfect Snacks to continue to grow and innovate as part of Mondelēz International.”
Mondelēz International plans to operate Perfect Snacks as a separate business in order to nurture its entrepreneurial spirit and maintain the authenticity of the brand, while providing resources to help accelerate growth, according to a press release.
The current senior leadership, including Bill, Leigh and Charisse Keith, will continue to run the business from its headquarters in San Diego, California and they will retain a significant minority equity interest in the company. All Perfect Snacks products will continue to be made at their current manufacturing locations.
The transaction is expected to create growth opportunities by using the scale and resources of Mondelēz International to expand consumer penetration and U.S. distribution of Perfect Snacks’ products and future innovation. Mondelēz International’s portfolio of global and local brands includes Oreo, Cadbury, Milka and belVita, as well as Tate’s.