“The Kraft Heinz Company (NASDAQ: KHC) (“Kraft Heinz”) announced today that it has entered into a definitive agreement to acquire Primal Nutrition, LLC, makers of Primal Kitchen branded products for approximately $200 million.
Founded by Mark Sisson and Morgan Buehler, Primal Kitchen is a young, vibrant, better-for-you brand primarily focused on Condiments, Sauces and Dressings including Mayonnaise, Salad Dressings and Avocado Oil, with growing product lines in Healthy Snacks and other categories. The brand holds leading positions in both e-commerce and natural channels, and is expected to generate approximately $50 million in net sales this year.”
Mark Sisson is also well known for Mark’s Daily Apple, a famous blog about fitness, nutrition and weight loss. Mark is quite famously pro low-carb and while being in his 60s is in better shape than most 20 year olds.
So, what does this acquisition mean? It’s clear products that cater to the new paradigm of healthy food choices is marketable, Kraft Heinz doesn’t buy into small-time fads. The big question is, will the new owners reshape the products to use the old crappy materials that Mark and Morgan originally tried to disrupt? That’s my personal fear anyway. In essence, it’s all boils down to making money and good business decisions but I cannot help think about that there’s possibly a long-term goal to disrupt the disruptor. While I am not a Primal Kitchen customer, I support the original blueprint for the company and would have to wonder if it’s all a big conspiracy if a big food company acquires the smaller brands to get them in line.
Link to the press release: