Campbell Soup Co. has entered into an agreement to acquire Plum Organics, a provider of premium, organic foods and snacks that serve the nutritional needs of babies, toddlers, and children. Based in Emeryville, Calif., Plum is the No. 2 brand of organic baby food in the United States and is currently the No. 4 baby food brand overall.
The acquisition of Plum will provide Campbell with a platform to extend its core categories of simple meals, snacks, and beverages and enhance its access to a new generation of consumers. Plum’s products have strong distribution in key customer channels, including online, natural, and baby specialty outlets. With the addition of Plum Organics’ products, Campbell’s portfolio of kids-focused soups, beverages, and snacks will have annual sales of more than $1 billion.
“Plum Organics’ nutritious, on-trend products are a great addition to our North American portfolio of leading brands. The acquisition will help deliver on our dual mandate to strengthen our core businesses and to expand into faster-growing categories and adjacencies. It represents another step toward our long-term goal of shifting Campbell’s center of gravity,” said Denise Morrison, Campbell’s President and CEO.
Founded in 2007, Plum has used rapid innovation to launch over 150 products for babies, toddlers, and kids in the United States and the United Kingdom. Top Plum products include organic baby food in convenient squeezable pouches; Super Puffs, a line of bite-sized nutritious puffed snacks; Plum Mighty Four, a new line of nutritious toddler snack pouches; and Plum Kids Mashups, a line of squeezable fruit, veggies, and Greek yogurt.
Campbell plans to operate Plum as a standalone business within its Campbell North America division. Senior members of Plum Organics’ management team, including co-Founder Neil Grimmer, will join Campbell, and continue to lead Plum and its mission-driven culture from Emeryville. As President of Plum, Grimmer will report to Mark Alexander, President-Campbell North America.
The closing of the transaction is subject to regulatory approvals and customary closing conditions and is expected to occur in the fourth quarter of fiscal 2013.