Danone Acquires Majority Stake in Kate Farms, Expanding Specialized Nutrition Offerings
Yogurt giant Danone recently announced that it has reached an agreement to acquire a majority stake in Kate Farms, a leading maker of plant-based nutrition shakes. This acquisition marks a strategic move for Danone to expand its specialized nutrition offerings, particularly in the North American market.
Kate Farms is known for producing a variety of specialized shakes that cater to various medical needs, daily nutritional goals, and children’s health. The company was founded in 2012 by Richard and Michelle Laver, inspired by their daughter Kate who has cerebral palsy. Their mission was to create better-tasting alternatives to tube feeding formulas, and their products are now widely used in hospitals and by consumers.
The senior management team at Kate Farms will retain a minority stake in the combined business following the completion of the acquisition, pending regulatory approval. While financial details of the deal were not disclosed, both companies are optimistic about the opportunities that lie ahead.
Danone has a strong track record in the medical nutrition space, with a portfolio of products that have seen significant growth in global markets. By partnering with Kate Farms, Danone aims to leverage their expertise and expand their presence in North America. This move aligns with Danone’s strategy to diversify its offerings beyond traditional dairy products and capitalize on the growing demand for specialized nutritional products.
In a statement, Shane Grant, Danone Group Deputy CEO and CEO Americas, emphasized the synergies between the two companies. He noted that Kate Farms’ innovative products complement Danone’s existing portfolio and enable them to provide better solutions for individuals with diverse health needs. The acquisition will not only strengthen Danone’s position in the specialized nutrition market but also pave the way for international expansion.
The deal with Kate Farms comes at a time when Danone’s specialized nutrition segment is experiencing steady growth. Recent product additions, such as plant-based tube feeding nutritional offerings, have been well-received by consumers. With the majority of Danone’s specialty nutrition products focused on markets outside of North America, the acquisition of Kate Farms presents an opportunity for the company to expand its presence in the region.
Both Danone and Kate Farms are optimistic about the potential for collaboration and growth. By combining their resources and expertise, they aim to bring innovative nutritional products to a wider audience and drive expansion into new markets. As the demand for specialized nutrition products continues to rise, this partnership positions both companies for success in meeting the evolving needs of consumers.
