The global organic food industry is undergoing fortification.
In April 2019. Three leading offers have concerned established organic food companies in Europe and North America.
Ecovia Intelligence (previously often called Organic Monitor) expects more such offers as rationalization continues.
Royal Wessanen, one of many largest and oldest organic food enterprises in Europe, has been acquired by a funding consortium.
With headquarters in Amsterdam, the corporate owns a portfolio of European organic and free-from food manufacturers, together with Bjorg, Kallo, Allos, Whole Earth, Clipper, Alter Eco, Tartex and Isola Bio.
The investors have paid $1 billion for the corporate to strengthen its position within the sustainable & organic food market.
Earthbound Farm, a natural salads company in North America, has been bought by Taylor Farms for US$400 million.
Established in 1984 – the Californian company has grown into a world provider of organic fruits, vegetables, and salads.
Purchased by Whitewave Foods in 2013, it got here under the ownership of Danone USA in 2016.
The French multinational has divested the corporate as it plans to concentrate on plant-based, mostly dairy alternatives.
Another sale involves Bolthouse Farm, a supplier of organic and natural beverages in North America.
Campbell Soup bought the company in 2012 and has now offered it to the private equity firm Butterfly for US$510 million.
Bolthouse Farm organic carrots, beverages, smoothies, and dressings are a function in natural food outlets throughout the US.
Ecovia Intelligence sees extra such ‘sell-offs’ on the horizon because the organic food industry undergoes consolidation.
The industry has customarily been fragmented with many operators concerned in production and distribution.
Rationalization is going on with large companies trying to take significant positions.
Apart from large food firms and retailers, the latest years have seen the entry of unconventional operators; The net retail giant Amazon purchased Whole Foods Market for US$13.7 billion in June 2017.
Regardless of attaining US$1.1 billion in gross sales in 2018, it reported a loss of US$6.9 million.
Organic brands don’t at all times match effectively into conventional portfolios, as many large food companies have found.