Dive Brief:
- Ferrero Group will acquire better-for-you oatmeal and granola brand Purely Elizabeth for an undisclosed amount, the company said Friday. The move broadens Ferrero’s presence in the U.S. and in breakfast foods following its $3.1 billion purchase of WK Kellogg.
- The deal is expected to close “in the coming months,” the company said. Purely Elizabeth’s founder and CEO Elizabeth Stein will continue in her role as the brand continues to operate as a standalone entity in the Ferrero portfolio.
- Nutella maker Ferrero plans to support Purely Elizabth’s next phase of growth with product innovation, expanded distribution and boosted operational capacity.
Dive Insight:
For Ferrero, the addition of Purely Elizabeth gives more weight to the Luxembourg-based company’s ambitions in North America. The brand will join Ferrero's better-for-you foods portfolio, which includes Eat Natural and Fulfil in Europe and Bold Snacks in Brazil. The portfolio also includes Power Crunch in North America, though the brand has struggled recently.
“This acquisition reflects our long-term strategy to invest in high-growth categories and further enhance our presence in the better-for-you offerings across breakfast occasions and beyond,” Lapo Civiletti, president of Ferrero Ice Cream and WK Kellogg Co, said in a statement. “Purely Elizabeth has built a distinctive brand by being in tune with evolving consumer preferences through premium, innovative and delicious products, making it a highly complementary addition to our portfolio.”
Recent functional ingredient trends that favor protein and fiber have given Purely Elizabeth a boost. The company sells granola with added protein, prebiotic fiber, collagen and other functional elements.
Founded in 2009, Purely Elizabeth has doubled its sales within the past two years, according to Ferrero. Last year, it netted $200 million in total brand sales, and the company previously noted it was targeting $300 million in 2026.
While Ferrero didn’t disclose the sale price, Axios reported earlier this year that Purely Elizabeth put itself up for sale for more than $600 million.
Ferrero has been on a recent deal-making streak that started even before the WK Kellogg deal. The company has spent $8 billion on acquisitions in the last decade to expand its presence in North America, buying Nestlé’s U.S. chocolate business in 2018 and Kellogg’s cookies and fruit snacks business.
