PITTSBURGH & CHICAGO--(BUSINESS WIRE)--Nov. 29, 2018--
The Kraft Heinz Company (NASDAQ: KHC) (“Kraft Heinz”) announced today
that it has entered into a definitive agreement to acquire Primal
Nutrition, LLC, makers of Primal Kitchen branded products for
approximately $200 million.
This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20181129005543/en/
Primal Kitchen Products
Founded by Mark Sisson and Morgan Buehler, Primal Kitchen is a young,
vibrant, better-for-you brand primarily focused on Condiments, Sauces
and Dressings including Mayonnaise, Salad Dressings and Avocado Oil,
with growing product lines in Healthy Snacks and other categories. The
brand holds leading positions in both e-commerce and natural channels,
and is expected to generate approximately $50 million in net sales this
year.
Primal Kitchen will join Kraft Heinz under Springboard, which is Kraft
Heinz’s dynamic platform created to partner with founders and brands
that will disrupt the food industry. The combination of Primal Kitchen
and Springboard will help to realize Mark Sisson’s vision to change the
way the world eats.
Primal Kitchen will leverage Kraft Heinz’s assets and infrastructure,
while still operating as an autonomous company. Primal Kitchen will
continue to be led by its current leadership team. Its headquarters will
remain in Oxnard, California.
“The proposed partnership with Primal Kitchen is consistent with Kraft
Heinz’s vision to be the best food company, growing a better world. The
Primal Kitchen team has built an amazing portfolio of the world’s
best-tasting, health-enhancing, real-food pantry staples,” said Paulo
Basilio, U.S. Zone President for Kraft Heinz. “Primal Kitchen is an
authentic, premium and growing brand that fits perfectly with our core
Condiments & Sauces categories, and we are excited to partner with the
Company’s strong existing team to drive growth across multiple
categories going forward.”
Mark Sisson, Co-Founder of Primal Kitchen said, “My mission has always
been to change the way the world eats. With that goal in mind, Primal
Kitchen launched in 2015 to offer health-conscious consumers the best
possible choices in Condiments, Sauces, Dressings and Healthy Snacks.
While our growth to date has exceeded all industry standards and
expectations, our partnership with an industry leader like Kraft Heinz
now offers an unrivaled opportunity to reach millions more of the
consumers who have been seeking products like ours for years. Based on
the significant time I've spent with the Kraft Heinz team, we share a
common vision regarding the future of food and the importance of
consumer choices. I look forward to working with them to grow this
amazing brand."
The transaction is subject to customary closing conditions and is
expected to be completed in early 2019. Terms of the agreement were not
disclosed.
ABOUT THE KRAFT HEINZ COMPANY
The Kraft Heinz Company (NASDAQ: KHC) is the fifth-largest food and
beverage company in the world. A globally trusted producer of delicious
foods, The Kraft Heinz Company provides high quality, great taste and
nutrition for all eating occasions, whether at home, in restaurants or
on the go. The Company’s iconic brands include Kraft, Heinz,
ABC, Capri Sun, Classico, Jell-O, Kool-Aid,
Lunchables, MaxwellHouse, Ore-Ida, OscarMayer, Philadelphia, Planters, Plasmon, Quero,Smart Ones and Velveeta. The Kraft Heinz Company is
dedicated to the sustainable health of our people, our planet and our
Company. For more information, visit www.kraftheinzcompany.com.
About Mark Sisson & Primal Kitchen®
Mark Sisson, New York Timesbestselling author, media
personality, ex-endurance athlete (5th place USA Marathon Championship,
4th place Hawaii Ironman finish) founded Primal Kitchen in 2015. He has
been educating the world on nutrition and the benefits of high-quality
fats and protein for the last decade via his blog, MarksDailyApple.com.
Mark set out to create the world’s best-tasting, real-food pantry
staples. Primal Kitchen delivers on its promise to create
uncompromisingly delicious products that are free of dairy, gluten,
grains, and soy, and emphasize beneficial fats and high-quality
proteins. Primal Kitchen is the maker of the number one selling
Condiment, Mayo made with Avocado Oil, and number one selling Salad
Dressing, Ranch Dressing, in natural grocery. As Mark would say, Eat
Like Your Life Depends on It, because it does. Learn more at primalkitchen.com.
Forward-Looking Statements
This press release contains a number of forward-looking statements.
Words such as “expect,” “invest,” “grow,” “fit,” “continue,” "commit,"
“expand,” “advance,” “focus,” “will,” and variations of such words and
similar future or conditional expressions are intended to identify
forward-looking statements. Examples of forward-looking statements
include, but are not limited to, statements regarding Kraft Heinz’s
plans, expected timing and benefits of the transaction, investment and
growth plans, and impact of the sale. These forward-looking statements
are not guarantees of future performance and are subject to a number of
risks and uncertainties, many of which are difficult to predict and
beyond Kraft Heinz’s control.
Important factors that may affect Kraft Heinz’s business and operations
and that may cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to, operating in
a highly competitive industry; changes in the retail landscape or the
loss of key retail customers; Kraft Heinz’s ability to maintain, extend
and expand its reputation and brand image; the impacts of Kraft Heinz’s
international operations; Kraft Heinz’s ability to leverage its brand
value to compete against retailer brands and other economy brands; Kraft
Heinz’s ability to predict, identify and interpret changes in consumer
preferences and demand; Kraft Heinz’s ability to drive revenue growth in
its key product categories, increase its market share or add products;
an impairment of the carrying value of goodwill or other
indefinite-lived intangible assets; volatility in commodity, energy and
other input costs; changes in the Kraft Heinz’s management team or other
key personnel; Kraft Heinz’s ability to realize the anticipated benefits
from its cost savings initiatives; changes in relationships with
significant customers and suppliers; the execution of Kraft Heinz’s
international expansion strategy; tax law changes or interpretations;
legal claims or other regulatory enforcement actions; product recalls or
product liability claims; unanticipated business disruptions; Kraft
Heinz’s ability to complete or realize the benefits from potential and
completed acquisitions, alliances, divestitures or joint ventures;
economic and political conditions in the United States and in various
other nations in which we operate; volatility of capital markets and
other macroeconomic factors; increased pension, labor and people-related
expenses; volatility in the market value of all or a portion of the
derivatives we use; exchange rate fluctuations; risks associated with
information technology and systems, including service interruptions,
misappropriation of data or breaches of security; Kraft Heinz’s ability
to protect intellectual property rights; impacts of natural events in
the locations in which we or our customers, suppliers or regulators
operate; Kraft Heinz’s indebtedness and ability to pay such
indebtedness; Kraft Heinz’s ownership structure; the impact of future
sales of Kraft Heinz’s common stock in the public markets; Kraft Heinz’s
ability to continue to pay a regular dividend; restatements of Kraft
Heinz’s consolidated financial statements; review of the transaction by
the Federal Trade Commission, Department of Justice, or other agencies;
and other factors. For additional information on these and other factors
that could affect Kraft Heinz’s forward-looking statements, see Kraft
Heinz’s risk factors, as they may be amended from time to time, set
forth in its filings with the Securities and Exchange Commission. Kraft
Heinz disclaims and does not undertake any obligation to update or
revise any forward-looking statement in this press release, except as
required by applicable law or regulation.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181129005543/en/
Source: The Kraft Heinz Company
Lynne Galia
The Kraft Heinz Company
lynne.galia@kraftheinz.com
Ana Goettsch
Primal Kitchen
ana@primalkitchen.com