Dive Brief:
- AFT Holdings' subsidiary Atlantic Natural Foods has signed a letter of intent to purchase neat foods, which manufactures a pecan-based meat substitute, for an undisclosed amount.
- The product is already being sold in more than 2,000 stores across the country, including Wegmans, Target, Whole Foods, and Kroger, as well as overseas. The company also introduced in September 2014 a meatless egg substitute, made from garbanzo beans and chia seeds.
- While exact sales were undisclosed, an Atlantic executive estimated sales to be less than $1 million annually.
Dive Insight:
Acquisitions by larger companies offer opportunities, particularly more money and resources to spur growth, for smaller companies, which are taking on a larger market share but still may struggle with transitioning to being a national or international brand.
"You either get to a point where you level off and stay there, or somebody comes along that’s able to apply the resources necessary to make neat a true national brand," neat foods co-founder Phil Lapp told LancasterOnline. "And that was the opportunity we were presented with. ... This deal is the best chance for neat to grow and flourish, which we care about."
"It will be a relief to have more time to focus on the creative aspect," neat foods co-founder Laura Lapp told LancasterOnline.
"[Atlantic CEO Kelly] Krause said the neat lineup of nut-based foods will fit well with Atlantic’s plant-based, canned proteins sold under the Caroline’s and Meatless Select brands," according to LancasterOnline.
Plant-based foods and ingredients, particularly proteins like meat and egg substitutes and alternative dairy sources, are surging in popularity. WhiteWave Foods, which manufacturers many plant-based foods and beverages, reported a 17% jump in revenue to $1 billion last quarter.