UPDATE: US: General Mills points to natural snacks potential
General Mills has pointed to the growth of natural and organic salty snack sales in the US after announcing its acquisition of tortilla maker Food Should Taste Good.
The US food manufacturer has acquired Food Should Taste Good, a company founded six years ago, for an undisclosed sum.
Food Should Taste Good, which is based in Massachussetts, makes tortilla and kettle chips on sale in retailers across the US.
A spokesperson for General Mills told just-food that the firm's brands were in a category that was growing faster than the salty snacks market as a whole in the US.
"Food Should Taste Good products compete in the natural and organic salty snacks category - a segment that has experienced double-digit sales growth for the past two years and that has outpaced the growth of the broader salty snacks category," she said.
The company was enjoying "rapidly-growing sales and distribution" and had seen sales increase at a "double-digit pace over the past several years", she added.
Food Should Taste Good will become part of General Mills' natural and organic arm Small Planet Foods, which sells brands including Cascadian Farm snacks, Muir Glen, and Lärabar fruit bars and Muir Glen pasta sauce.
Net sales from Small Planet Foods increased 17% in General Mills' second quarter, which ran until 27 November. "In total, Small Planet Foods has grown at a double-digit compound annual growth rate since its inception in 2000," the spokesperson said.
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