The most important meal of the day continues to be a market worth vying for, and Sovos Brands, backed by global private equity firm Advent International, has just made a key move to strengthen its position on the board. The company announced it has signed on to acquire Birch Benders, LLC, which produces pancake and waffle mixes, toaster waffles, and pancake and baking cups for the better-for-you market.
"With its absolutely delicious products that deliver against healthy consumer lifestyles such as paleo and keto diets, Birch Benders is the perfect next addition to our growing portfolio of one-of-a-kind brands. Birch Benders shares Sovos' commitment to making simple and delicious foods that use only the highest quality ingredients," said Todd Lachman, President and Chief Executive Officer of Sovos Brands. "With our proven ability to transform brands by unleashing growth and deepening consumer affinity, we are thrilled to take Birch Benders to a new chapter of growth while diversifying Sovos Brands into new categories."
The transaction is expected to be completed by the end of October and will add a fourth brand to the Sovos portfolio, which also includes Rao's, a line of pasta sauces, soups, frozen entrées, and dry pasta; noosa yoghurt; and Michael Angelo's frozen entrées.
Since Sovos' acquisition of these brands, Sovos has consistently delivered double-digit sales growth while expanding profit margins since making its brand acquisitions. Now with the addition of Birch Benders, Sovos' annual retail sales will be above $750 million, according to a press release, while also diversifying the company's consumer base and furthering its ambitions to participate in more food occasions.
"We are absolutely thrilled to be joining the Sovos Brands family," said Matt LaCasse, Birch Benders' Founder and Chief Executive Officer. "We believe the wealth of experience and resources of the team at Sovos will allow us to reach even more consumers with our delicious, innovative, easy-to-make offerings made with nutrient-rich, quality ingredients."
To read the complete backgrounds of both companies and what this union could bring, click here.
While the financial terms of the acquisition were not included in the release, both companies made it clear that there was a lot of success to be seen in this latest move. For all news and updates within the deli sphere, keep a lookout for Deli Market News.