Paleo Kitchen and Kraft Heinz
Paleo Kitchen has been announced to be bought by Kraft Heinz for around $200 Million in November 2018. This is a great example of a win-win for all parties involved.
Paleo Kitchen is a lifestyle/food condiment brand that revolves around Mark Sisson. Mark started a blog in 2006 that focuses on healthy eating and lifestyle with an emphasis on primal strategies. He was one of the first writers to taut paleo and is a very prolific writer.
He used to be an accomplished ultra-endurance athlete, but constantly found himself sick or injured. By changing his lifestyle through research and testing, he had been able to remedy his health issues.
He has a very large following of readers and writes daily on his blog. He has written two books. Recently, he has been blogging more about the ketogenic diet and has also just completed a book on the topic.
As far as complementary businesses, he did have a few franchised restaurants, but those quietly closed in early 2018. I believe that this is a smart move as there could be consistency and margin concerns for a new franchise. This negativity could also have bled into Mark’s other businesses and hurt his reputation.
Paleo Kitchen is a mayo and dressing company. Estimated annual sales are about $50 million in 2018. The products contain no processed or artificial ingredients, added sugars, soybean or canola oils.
I very much approve of this acquisition. It gives Paleo Kitchen a way to grow in distribution channels that it would be very difficult to get in without the long standing relationships Kraft Heinz already has.
The acquisition also gives Kraft Heinz a niche brand with a very strong following. They will be able to provide their vast customer base with a healthy brand. It’s a win-win all around!
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