Danone is spreading its reach in the plant-based sector as it announced a new acquisition deal. The leading global food and beverage company has recently announced it has entered into a share purchase agreement with Earth Island®, maker of Follow Your Heart brands and a pioneering leader in plant-based foods. Under the agreement, Danone will acquire 100 percent of the shares of Earth Island.
“We are delighted to welcome Follow Your Heart’s team to our amazing team at Danone,” said Shane Grant, EVP and CEO, Danone North America. “The Follow Your Heart family shares our commitment to producing high-quality products that delight consumers while contributing to the wellbeing of People and Planet. Consumers are increasingly eating flexitarian diets, and we look forward to working with the Follow Your Heart team to offer our consumers even more choices. This partnership will build on our success in plant-based beverages, yogurt alternatives, and creamers, further accelerating the growth of our North American plant-based business.”
With a proven track record of growth and innovation and a long-term commitment to nutrition, sustainability, and environmental stewardship, Earth Island represents a strong cultural fit with Danone and provides Danone with a unique opportunity to strengthen its plant-based business.
According to the release, Earth Island was founded in 1988 to meet the growing demand for Vegenaise at the Follow Your Heart Market & Café and is a pioneer in the U.S. plant-based marketplace with a leading dairy-free cheese brand. The company’s offerings include shredded and sliced plant-based cheese; grated and shredded plant-based parmesan; cream cheese alternatives; and the most iconic egg-free mayonnaise brand, Vegenaise.
Earth Island also produces delicious plant-based sour cream, salad dressings, and VeganEgg® within its Follow Your Heart portfolio. As part of the Danone family, Earth Island will be able to accelerate the growth of the Follow Your Heart brand nationally and internationally alongside some of Danone’s best-known plant-based brands, including Alpro, Silk, and So Delicious Dairy Free.
“Our mission has always been to produce the best plant-based food products and to make them available to as many people as possible,” said Bob Goldberg, Co-Founder and CEO of Earth Island. “We’re very pleased to be joining the Danone family of plant-based companies in a collective effort to bring positive change in the world through the creation of sustainably and responsibly-made foods.”
In the U.S., plant-based food and beverages are a $5 billion category, noted the release, and plant-based cheese is one of the fastest-growing segments within it. This partnership will enable Danone to enhance and expand its plant-based offerings to provide consumers with plant-based alternatives for even more occasions throughout their day, while also contributing to its goal of increasing plant-based sales worldwide from more than €2 billion (around $2.4 million) in 2020 to €5 billion (around $6.1 million) by 2025.
The transaction is subject to receipt of required regulatory approvals.
As global leaders like Danone USA continue to expand their might in growing sectors such as plant-based, Deli Market News will report on the latest.