KP Snacks has expanded into the nut butter market through its acquisition of Whole Earth Foods, a leading brand in the category.
Intersnack, the parent company of KP Snacks, has announced its acquisition of Whole Earth Foods from Ecotone UK, a French-owned group that also produces brands like Kallo rice cakes and Clipper Teas.
Terms of the deal were undisclosed.
Whole Earth has grown significantly since its acquisition by Ecotone in 2003, expanding its product lines to include both nut butters and soft drinks. It now holds the position of the UK's best-selling peanut butter brand.
Whole Earth has also successfully expanded its presence across Europe, particularly in the organic peanut butter market, with strong sales in Germany, the Netherlands, France, Spain, and Italy.
KP Snacks' acquisition of Whole Earth Foods marks its first significant expansion since acquiring the premium crisps brand Tyrrells from The Hershey Company in 2018 and Butterkist popcorn from Tangerine Confectionery in 2017.
Mark Thorpe, CEO of KP snacks, said: “Whole Earth Foods is a fantastic addition to our business, expanding our selection of delicious, healthier products. Known for its commitment to high-quality, nutritious food, Whole Earth Foods complements our portfolio of iconic brands and aligns with our sustainable business practices.”
The nut butter category has faced challenges recently, despite seeing strong growth during the pandemic. Volume sales dropped by 2.7% over the past year, primarily due to rising commodity costs, with the price of peanuts significantly impacting production expenses.
Whole Earth has also felt competitive pressure from supermarket own-label products and challenger brand Pip & Nut, which has been expanding rapidly, reporting double-digit growth for the past two years.
Whole Earth’s UK retail sales showed modest growth of 0.4% to £28.6 million for the year ending September 2023, following a 2.2% decline the previous year.
Christophe Barnouin, CEO of Ecotone, commented: “This sale is an acknowledgement of Ecotone’s 22 years of sustainable growth with the Whole Earth brand, from a UK start-up to a leading European brand. The integration into KP Snacks will enable Whole Earth Foods to continue to invest and grow for the future.”
Ecotone UK's total group sales under Kallo Ltd reached £121.8 million in 2023, reflecting an 8% sales growth driven by core brands.
KP Snacks experienced a strong performance in 2023, with total sales growing by 14.8% to £626.7 million, while profit margins rebounded.
