On Tuesday, Mars announced that it would acquire healthy snack bars-maker Kind in an attempt to enter the nutritious snacking business.
American multinational business Mars is setting to acquire New York City-based healthy snack bars firm Kind. The timing of the merging between the two companies came at a time that consumers have preferred healthier snack options.
Mars, the parent company of iconic snacks like M&M’s, will acquire the company behind Kind nut bars and granolas. Some years ago, Mars had already bought a small stake in Kind. However, Mars has kept the specifics of the deals. But the New York Times reported that people familiar with the matter said that the transaction amounted to about $5 billion.
Candy maker Mars just bought healthy snack company Kind in a deal reportedly worth $5 billion https://t.co/149iUOjH9s
— Business Insider (@businessinsider) November 17, 2020
In a press release, the acquisition will also allow for bringing together Kind in North America and Kind International. The two previously had been operating separately. Moreover, the founder and executive chairman of Kind, Daniel Lubetzsky, will still have his stake in the company. Also, he will help in advancing Kind while maintaining its “KIND” promise, which is to produce nutrient-dense snacks.
Kind + Mars
In 2017, Mars had already taken a minority stake in Kind. The latter remained an independent company by then. Mars helped Kind reach more customers worldwide. The healthy snacking brand managed to touch 35 countries and had expanded its lineup with newer products. And with the Tuesday announcement, the partnership will further strengthen between the two brands.
Lubetzky told The Times that the acquisition would help Kind to expand in more regions and even explore new products. In a press release, he said: “I am so proud of how well the Mars and Kind teams have complemented and strengthened each other over the past three years.”
Mars CEO Grant Reid stated that the partnership began based on mutual admiration and a shared vision for growth. “After three years, you can see the impact, as together we have grown the healthy snacking category.”
The Shift to Healthier Snacking
According to Lubetzky’s interview with The Times, sales for Kind actually boosted amid the COVID-19 pandemic, when households stock up on groceries, and Kind gained a reputation online. Particularly, the executive chairman noted that Kind’s sales jumped to almost $1.5 billion, compared to around $1 billion in 2017.
Now, with Kind’s official integration with Mars, which makes a plethora of products aside from candies, Lubetzsky said: “We are now well-positioned to further advance our efforts and continue building a foremost health and wellness platform.”