Ferrero sister company Ferrara Candy Co. has announced the acquisition of Brazilian snacks business Dori Alimentos.
US confectioner Ferrara described Dori Alimentos as “a great fit … with a complementary portfolio of candies”.
Chicago-based Ferrara is the company behind brands such as Brach’s, Nerds and and Trolli. Family-owned Ferrero describes Ferrara as a “Ferrero-related company”. Both have the same shareholder but Ferrara is not consolidated into the Ferrero group.
In a statement, Ferrara said the deal was made through CTH, which it called “the lead holding company of Ferrara”. CTH is also the entity used to acquire businesses such as UK biscuit maker Burton’s Biscuit Co. in 2021.
Dori Alimentos sells brands including Dori, Pettiz and Jubes. Without disclosing specific figures, Ferrara said the company, based in Marília in eastern Brazil, had “enjoyed double-digit revenue growth over the last several years”.
Neither were the financial terms of the transaction revealed.
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In 2022, Dori Alimentos generated net operating revenue of 1.19bn reais ($251.7m), up 22% on a year earlier. Gross profit grew 29% to 436.2m reais but net income was 8.3% lower at 65.4m reais amid a jump in financial expenses.
Dori Alimentos has three divisions: peanut snacks, sweet snacks and chocolate snacks. During 2022, Dori Alimentos said its “sweet snacks” was its biggest division by sales. The division saw its sales jump 31% to 588m reais.
According to forecasts from GlobalData, Just Food’s parent, Brazil’s sugar confectionery category, after a period of declining sales, is expected to be worth 1.9bn reais in 2027, when the industry’s five-year CAGR is estimated to be 4.6%.
“We have a deep admiration for Dori’s products and their extraordinary team,” Ferrara CEO Marco Capurso said. “We are excited to enter the rapidly growing Brazilian market and create opportunities for both Dori and Ferrara.”
In the statement, Ferrara said Dori Alimentos’ 3,100 staff would join its 4,600-strong workforce. The transaction is expected to close in the fourth quarter of 2023.
Dori Alimentos, founded in 1967, exports to more than 40 countries.
“We are thrilled to be teaming up with Ferrara and confident that it is the right partner for this next step in Dori's incredible story,” Dori Alimentos CEO Pedro Lobo said. “Like us, Ferrara places the consumer at the centre of everything it does, shares our spirit of innovation and believes in the emotional bond of sweets and snacks.”
Chairman Vitor Barion added: “For many years now, Ferrara has been a great inspiration for the construction of Dori's product portfolio and, perhaps because of this, they are similar and aligned.”