Kale Foods has acquired Swedish plant-based brand Färsodlarna from investment company Novax.
Financial terms of the deal, which also includes the brand’s retail business, were not disclosed.
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In a statement today (29 May), Kale Foods described the acquisition as “a strategic step forward to consolidate the Nordic market for sustainable, plant-based food”.
Conny Swahn, the CEO of Kale Foods, said the transaction was “a direct continuation of our outlined M&A strategy”.
He added: “By adding Färsodlarna to the Kale Foods family, we not only broaden our retail offering but we also create clear synergies in distribution, marketing and sales.”
Färsodlarna sells into Sweden’s retailers with a range of frozen meat alternatives made from legumes and rapeseed.
Its range includes veggie meatballs, burgers and formable mince products, marketed as additive-free and clean-label.
Swahn said the company sees “enormous potential” in expanding the brand.
He also told Just Food: “Through the acquisition, our ambition is to continue developing the plant-based category, and by adding the brand to Kale Foods’ portfolio, we simultaneously create synergies in sales, marketing, and distribution.
“This is a strategically important deal to drive and develop the entire category of plant-based products within Swedish grocery retail. It is fully in line with our long-term strategy to build a leading platform for premium plant-based brands through targeted acquisitions.”
Kale Foods is part of Kale United, which was set up in 2018 and invests in companies focused on animal-free value chains.
Oddgeir Hole, the CEO of AB Svenska Färsodlarna, said: “We are incredibly proud of the journey we have made with Färsodlarna and how we have managed to put Swedish-grown proteins on the map.
“As it is now time for the next chapter, Kale Foods is the perfect buyer to manage and further develop Färsodlarna. They have the right infrastructure, passion, and ecosystem required to take the brand to the next level.”
Among Kale United’s largest alternative food holdings outside Kale Foods are US alt-meat company Livekindly and Spanish alt-meat company Heura Foods.
Heura Foods said this month it had achieved EBITDA profitability for the first time in the first quarter, marking a milestone for a plant-based sector that has faced slower growth and tougher investor scrutiny in recent years.
However, Heura Foods said it is still working towards net profitability, which it expects to reach next year.
