Unilever plc (LON:ULVR) and Swiss rival Nestle SA both increased their natural food offerings with acquisitions today as the big consumer firms look to boost slowing sales with products seen as ethical or healthy.
Anglo-Dutch firm Unilever announced it has bought small British organic tea brand Pukka Herbs Ltd for an undisclosed sum.
In a statement, the consumer products giant - whose brands include Marmite spreads, Hellmann's mayonnaise, Dove Soap, and PG Tips tea - said Pukka's strong values and clear purpose aligns with its own sustainable growth model.
Pukka, known for herbal teas with catchy names such as mint matcha green and turmeric gold, was founded in 2001 by Tim Westwell and Sebastian Pole.
The acquisition extends the FTSE 100-listed group - the world’s largest teamaker - into the market for organic tea, which is forecast to grow by 22% to reach US$1.2bn by 2021.
Harmless Ham, Benevolent Bacon
Meanwhile, Nestle - the world’s largest processed food company - agreed to buy Sweet Earth, a US maker of frozen meals, burritos and burgers that use plant-based meat substitutes.
The purchase of California-based Sweet Earth – which has brands like ‘harmless ham’ and ‘benevolent bacon’ – gives Nestle a foothold in the market for plant-based foods, which it expects will reach US$5.3bn worldwide by 2020.
The acquisition comes less than three months after KitKat maker Nestle bought a stake in subscription-meals company Freshly, which sells healthy, prepared meals to consumers across the US.
Natural, organic, artisanal or plant-based products have been a bright spot in an otherwise tepid food market, as changing consumer tastes and habits have hit the processed food sector.