Dive Brief:
- Preferred Popcorn has announced its acquisition of organic popcorn maker K&W Popcorn. Neither company disclosed financial terms of the deal.
- With this acquisition, Preferred Popcorn is solidifying its position as a global leader in popcorn manufacturing while expanding its portfolio to meet the changing needs of today's consumers, including heightened demand for organic, non-GMO, and allergen-free snacks.
- K&W Popcorn is Preferred Popcorn’s third acquisition following Widman Popcorn in 1998 and Preston Farms in 2010 and will be its only organic operation.
Dive Insight:
Popcorn products were one of two categories of salty snacks to see a reduction in household penetration from 2010 to 2015 at 1% fewer households (pork rinds was the other), according to a recent Packaged Facts report. In the 52-week period ending Nov. 2, 2014, microwave popcorn sales fell 4%, according to IRI.
Ready-to-eat popcorn, on the other hand, has seen the opposite. IRI found that RTE and caramel corn sales soared by 25% in that same time frame. But competition is rising fast — 80 new brands debuted within the category in MULO-tracked sales last year, according to Packaged Facts.
Popcorn has the benefit of being deemed a better-for-you snack, especially households with new parents, Packaged Facts reported. RTE popcorn has also capitalized on consumers' demand for convenience and exotic flavors, which have contributed to the category's growth.
Microwave popcorn still leads the overall popcorn market with more than 54% of market share in 2015, according to a recent Technavio report. But the sub-segment could take cues from RTE popcorn's successes. Between innovation and an expansion of organic and non-GMO varieties, microwave popcorn could see sales rise again.