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November 2, 2021

Amara Organic Foods offloads majority stake to Canadian investor

Eat Well Investment Group has an option to increase its interest from 51%.

Amara Organic Foods has sold a majority stake in the US plant-based baby-food business to the Eat Well Investment Group in Canada.

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The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
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Eat Well in Vancouver said it has taken a 51% interest in PataFoods, which trades as Amara Organic Foods based in San Francisco, with an option to increase the holding to 80%. The initial deal amounts to US$11.6m, with $1m to be paid in cash on closing and the remainder to be spread in quarterly instalments over two years.

Amara is headed up by CEO and founder Jessica Sturzenegger as a “food technology company that uses science and proprietary IP that locks in taste and texture to make healthy, organic, non-GMO and plant-based” baby and children’s foods. First launched on the market in 2017, the Amara branded range is stocked in North American retailers such as Whole Foods Market, Costco, Walmart in Canada and online at Amazon.

Marc Aneed, the president of Eat Well, said: “Amara’s focus on improving infant nutrition through innovative organic products will help establish Eat Well Group as a leader in plant-based CPG products and offerings. Amara has proven an impressive ability to scale through retail distribution and e-commerce excellence, and the funding and industry expertise provided by the Eat Well Group will help accelerate Amara’s growth as we head into calendar 2022.”

Sturzenegger added: “We are incredibly excited to be working with Eat Well Group to deliver more healthy and nutritious meals to families across the globe. We look forward to utilising Eat Well Group’s capital, strategic experience, and operating ecosystem to bring parents healthy, nutrient-dense options that fit into their daily lives.”

Amara has suffered a setback, with a recall of its ‘Organic Smoothie Melts – Carrot Raspberry’ following tests results from the Canadian Food Inspection Agency, which is conducting a food-safety investigation.

PataFoods said in a separate statement the recall is due to the “potential presence of pieces of plastic”, adding the smoothies have been sold in Alberta and Ontario, and also “may have been distributed in other provinces and territories”.

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Free Report
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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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