- The WhiteWave Co. is acquiring organic yogurt maker Wallaby Yogurt Co. for about $125 million in cash.
- In the year ending June 2015, Wallaby saw more than 20% growth and net sales of more than $45 million.
- For WhiteWave, which owns other organic and natural food brands, the acquisition means strengthening its portfolio in the yogurt category, a fast-growing segment among consumers today.
To support this acquisition, WhiteWave committed to the expansion of its yogurt manufacturing capabilities by adding a West Coast production facility to complement the Pennsylvania yogurt plant the company opened last year.
This is the second acquisition for WhiteWave this summer, as the company spent $550 million in cash on Vega Foods, a maker of vegan, soy-free, and gluten-free powdered shakes and snack bars, in June. Earlier this year, WhiteWave also expanded its popular Horizon Organic brand, including "adding gluten-free and single-serve varieties to the mac and cheese products, as well as fruit snacks and a Horizon Super Squeeze, which is a children’s pouch product that is a combination of organic milk and real fruit," Food Business News reported.
As consumer demand continues to grow for natural and organic foods and beverages, companies like WhiteWave are responding by expanding their portfolios. This is particularly true for the markets that are growing the fastest, like yogurt and Greek yogurt, which has been stealing market share from the cereal industry and other breakfast foods.