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July 1, 2022

MamaMancini’s takes minority interest in fellow US firm Chef Inspirational Foods

MamaMancini’s has retained an option to purchase the remainder of the business.

By Andy Coyne

MamaMancini’s, a US-based supplier of Italian-style food, has taken a minority stake in Chef Inspirational Foods (CIF), a fresh and frozen prepared-foods business.

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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.
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It has paid US$1.2m for a 24% stake in CIF and retained an option to purchase the remainder of the company within 12 months for an additional $3.8m.

New Jersey’s MamaMancini’s, which manufactures pre-prepared, frozen and refrigerated lines, said last March it was looking for acquisition targets.

CIF, based in Florida and New York State, produces fresh and frozen prepared foods for the retail, club store and distributor channels across the US. Its portfolio includes salads, prepared entrées and olives.

It expects 2022 gross sales of $30m.

Carl Wolf, CEO of MamaMancini’s, said: “Our investment in a minority interest in CIF brings an experienced, dynamic team which complements our logistics, product development and innovation capabilities with a robust sales presence.”

He added: “We expect our investment into CIF to be immediately accretive to net income, while our option to purchase the remainder of the company at a set price provides significant optionality and upside potential. We are excited about the opportunity this acquisition provides to advance our capabilities with a national, innovative, fully-integrated food development company with exceptional marketing and sales teams driving incredible penetration across its retail channels.

“This acquisition marks another milestone in our growth through acquisition strategy, as we continue to advance promising candidates through our due diligence pipeline.”

Jeffrey Siegel, CEO of CIF, said: “This transaction will provide MamaMancini’s with extensive sales capabilities and reach into new geographies for its wide product portfolio.”

Just before Christmas, MamaMancini’s snapped up related local businesses T&L Creative Salads and Olive Branch for a combined US$14m.

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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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