Dive Brief:
- Splenda owner Heartland Food Products has entered an agreement to buy the Americas business of sweetener maker Whole Earth Brands, which owns rival sugar substitute brand Equal. Financial terms were not disclosed.
- The deal is expected to significantly expand Heartland's scale and capabilities and grow its portfolio across tabletop sugar packets, natural sweeteners, foodservice, beverage, retail and ingredient solutions.
- The transaction positions Heartland as a leader in sugar reduction and low-calorie sweeteners by combining several of the most recognized brands in the space under one roof, the company said in a statement.
Dive Insight:
Heartland is taking over the dining table, with the purchase of rival brand Equal giving it a significant share of sweetener packets found at diners and restaurants across the country.
The transaction also expands the company's presence in natural sweetener solutions as more consumers look to reduce sugar intake, yet remain skeptical around artificial substitutes.
In addition to Equal, Whole Earth owns its namesake brand of zero-calorie sweeteners and sugar replacements plus the keto-focused Swerve. Chuker, a popular sweetener in Argentina, is expected to grow Heartland's presence in international markets.
Heartland CEO Ted Gelov said the combination creates "an unparalleled platform to lead the future of sugar reduction and wellness-focused innovation."
"Heartland has consistently demonstrated its ability to innovate, manufacture, and grow leading consumer brands," Gelov said. "We believe this combination creates exciting opportunities for customers, retail partners, consumers, and employees while strengthening domestic manufacturing and innovation leadership in the sweetener category."
The Splenda owner has looked to grow its position in better-for-you with recognizable brands. Last year, Heartland purchased SlimFast diet shakes for an undisclosed amount.
More food companies are removing sugar or using natural replacements as they look to position their products as better-for-you options. Research from ingredients supplier Ingredion found 64% of consumers are actively trying to reduce sugar intake and "no added sugar" launches grew 4.2% from 2020 from 2023.
Heartland has invested in sweetener technologies and looked to grow the U.S. supply chain for stevia. The acquisition also expands Heartland's presence in monkfruit, which is the fastest-growing sweetener ingredient for food and beverage market launches, according to Ingredion.
Whole Earth has received takeover bids before. In 2023, the company received a buyout offer from a charcoal maker owned by its largest shareholder and the father of Whole Earth's interim CEO at the time. The offer valued the company at about $169 million, or roughly $593 million including debt.
