Campbells – best known for its range of soups – has invested a staggering $700 million to acquire Oregon-based Pacific Foods – a brand known for its almond, hemp and oat milks.
The purchase was apparently made to keep the brand up to date with food trends – the brand’s fifth purchase in as many years, as it strives to diversify its portfolio.
Greg Wank, from business consulting firm Anchin, said: “I think the bigger picture here is the continued trend toward organic and plant-based foods. This acquisition is consistent with our purpose, ‘real food that matters for life’s moments’.”
Campbell’s president and chief executive Denise Morrison added: “Pacific is an authentic brand with a loyal consumer following. The acquisition allows us to expand into faster-growing spaces such as organic and functional food.
“Moreover, Pacific Foods is an excellent fit with Campbell — strategically, culturally and philosophically. It advances our strategic imperatives around real food, transparency, sustainability and health and well-being.”
According to the companies, Chief Executive and Co-founder of Pacific Foods Chuck Eggert, will stay on ‘as a supplier of key ingredients through his family farms’.
Pacific – which is based in Oregon – will be folded into New Jersey-based Campbell’s simple meals and beverages division once the acquisition is complete, subject to regulatory approvals and other closing conditions, according to the companies.