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Diving Briefs:
- Yogurt giant Danone said it agreed to acquire a stake in Kate Farms, a vegetable nutritional shake manufacturer on Monday.
- This acquisition will expand Danone’s special nutritional products. Kate Farms produces a variety of professional shakes to support medical demands, daily nutrition goals and children’s health.
- Kate Farms’ senior executives will maintain a small number of shares in the combined business after the transaction, which is still regulated. The financial details are not disclosed.
Dive Insights:
Danone is best known as the United States, but has a wide range of medical nutritional product portfolios that have recently gained strong demand in other markets around the world. Danone now wants to build offs and replicate success in North America.
Kate Farms was founded in 2012 by Richard and Michelle Laver and wanted to create a better tasting alternative to the tube supply formula of the daughter Kate with cerebral palsy. This product is sold to hospitals and consumers, and the brand has entered the first retailer in March.
Shane Grant, Danone Group CEO and CEO, Shane Grant, said, “Kate Farms’ innovative medical nutrition products enhance our products and provide a better solution to those with a wide range of health demands and enhance the ability to support healthy lives in the United States and the world.
Danone’s professional nutrition sector increased 5.3% in 1Q compared to the same period last year. CFO Juergen Esser said in an import phone last month, “We are growing very fast.”
Most of Danone’s special nutritional products are in the North American market, and management pointed out that the company’s US business is greatly distorted by yogurt and traditional dairy products. But as the nutritional product grows rapidly, Esser said the company is actively trying to raise other legs in the North American business.
Kate Farms provides Danone with more North American medical nutritional footsteps, but dealing with Dairy Giant allows the US brand to reach a new market.
Brett Matthews, the CEO of Kate Farms, said in a statement, “We can bring more and more innovative scientifically developed nutrients to more people.” Danone’s expertise can expand internationally. “
