Hershey has snapped up Ripple Brand Collective, the US firm behind the BarkThins snack brand.

Ripple Brand Collective, based in Congers in New York state, was set up in 2013. The company’s annual net sales are expected to be between US$65m in US$75m in 2016, Hershey said. The BarkThins brand is “largely sold in the US in take-home resealable packages and is available in the club channel as well as select natural and conventional grocers”, the confectionery giant added in a statement. No financial details on the deal were disclosed.

The deal sees Hershey again turn to M&A to broaden its portfolio in the US by acquiring a smaller, faster-growing company that has tapped into evolving consumer trends in the country. Last year, Hershey bought US jerky firm Krave Pure Foods.

Hershey also announced first-quarter results today (26 April) that included a 4.4% year-on-year fall in net sales on a constant-currency basis. The company pointed to “a shorter Easter season” and lower sales in China. Hershey also cut its 2016 forecasts for underlying sales and earnings per share.

Michele Buck, the president of Hershey’s business in North America, claimed the BarkThins brand had “essentially created a new form of chocolate snacking”.

Buck said: “This acquisition is a great addition to our Hershey chocolate portfolio and enables us to expand our mass premium offerings into this growing and on-trend category. BarkThins has quickly become a favourite snack brand due to its commitment to using simple ingredients, fair trade cocoa, non-GMO certification, and no artificial flavours or preservatives. BarkThins addresses key consumer trends, such as premium, high-quality ingredients and snacking.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Scott Semel, founder and CEO of Ripple Brand Collective, said the sale to Hershey would herald “the next phase of accelerated growth” for the business. He added: “Our unique proposition, brand equity, and outstanding team give us confidence that there is tremendous upside for BarkThins with a confectionery leader like Hershey.”

The sale of smaller companies can often attract concern from consumers anxious about the prospects for the brands under the ownership of major consumer packaged goods companies. A statement announcing the deal on the BarkThins Facebook page read: “We’re honoured and excited to be a part of the Hershey family. The commitment to our core brand values will never waiver, and with this partnership, will only strengthen. ?#‎snackingelevated?.”