Mars Bites Into KIND Bars
November 29 2017 - 2:22PM
Dow Jones News
By Annie Gasparro
Mars Inc. is buying a piece of snack-bar maker KIND LLC, the
latest move by an established food company to strengthen its
standing in the fast-growing market for healthier treats and
meals.
The fruit-and-nut bars KIND began selling in 2004 helped
establish a growing market for lower-sugar food with relatively
simple recipes. Grocers began stocking the bars at check-out aisles
in place of candy such as Mars's M&M's. Stalwarts Kellogg Co.
and General Mills Inc. raced to create similar products. Mars, too,
is working to reduce sugar content and removing artificial
ingredients in its foods and candy.
KIND now has products in about 190,000 stores and logs more than
$700 million in annual sales. KIND founder and Chief Executive
Daniel Lubetzky said the partnership with Mars could help his
company grow outside the U.S.
"The primary objective is to grow our core business globally,"
he said in an interview. "We need to move fast."
Mars didn't disclose the size of the stake it gained in KIND but
the investment is estimated to be more than $1 billion.
Mars is working on reducing the sugar and removing artificial
ingredients in its food and candy. With about $35 billion in annual
revenue and vast overseas reach including placement in 2.3 million
locations in China alone, Mars also sells Pedigree pet food and
other pet care brands, in addition to snacks and candy.
KIND began discussions with potential investors over the summer,
but Mr. Lubetzky said he was adamant that he wouldn't sell the
company outright. He said the deal with Mars doesn't preclude KIND
from partnering with other food makers in the future, particularly
if a new partnership helped KIND expand beyond snack bars and
granola.
"In 2018," Mr. Lubetzky said. "we're going to be acquiring
companies and entering new markets."
Write to Annie Gasparro at annie.gasparro@wsj.com
(END) Dow Jones Newswires
November 29, 2017 14:07 ET (19:07 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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