Iconic confectionery company adds meat snacks to product roster and
further expands into snacking
HERSHEY, Pa. -- (Business Wire)
The Hershey Company (NYSE: HSY) today announced it has entered into an
agreement to acquire KRAVE Pure Foods, Inc., manufacturer of KRAVE
jerky, a leading all-natural snack brand of premium jerky products. The
transaction will allow Hershey to tap into the rapidly growing meat
snacks category and further expand into the broader snacks space.
KRAVE Jerky (Photo: Business Wire)
“KRAVE jerky is a great fit to our portfolio and overall snacks and
adjacencies strategy,” said Michele G. Buck, President, North America,
The Hershey Company. “The KRAVE brand delivers on portable and protein
nutrition while also understanding consumers’ food preferences,
including the desire for simple ingredients and transparency, something
that is also a part of Hershey’s strategic vision. We are excited to add
KRAVE jerky’s unique, chef-inspired products and be a part of this
transformational category.”
KRAVE jerkyoffers consumers a nutritious and premium option when
looking for delicious high-protein snacks. Founded in 2009 by Jonathan
Sebastiani, who had a passion and desire to develop a sustaining snack
to satisfy his hunger, the company is now a leader in premium jerky, the
fastest-growing sub-segment of the estimated $2.5 billion U.S. meat
snacks category. KRAVE jerky has catapulted into the category with its
reverence to quality, all-natural ingredients and unique flavor
approach, including Black Cherry Barbeque Pork Jerky, Basil Citrus
Turkey Jerky and Chili Lime Beef Jerky. KRAVE jerky products are also
free of gluten and high fructose corn syrup and have no added nitrites
or MSG.
“An important focus of KRAVE jerky’s business strategy is to push the
boundaries within our category and to stay on top of ever-changing
consumer needs. Joining the Hershey family will extend our resources for
innovation and expand KRAVE jerky’s presence in the larger healthy
snacking category,” said Jonathan Sebastiani, KRAVE CEO and Founder.
“Our partnership with Hershey is a testament to our team’s dedication to
creating something unexpected and striving to be a cut above the rest.
We are confident in our future and look forward to further success with
Hershey.”
The overall meat snacks category is growing at a double-digit pace with
a compounded annual growth rate of about 10% from 2010-2014. The
better-for-you, premium subset of the category, where KRAVE
participates, increased at a rate of almost four times greater than
mainstream brands.
Hershey intends to leverage its best-in-class supply chain capabilities,
consumer insights and retail relationships to accelerate growth and
access to KRAVEproducts. Hershey will also partner with KRAVE’s
talented team to continue to drive excitement and awareness of KRAVE
jerky. KRAVE will remain headquartered in Sonoma, Calif., and Hershey
plans to operateKRAVE as a standalone business within its
Hershey North America division. Sebastiani will continue to lead the
business as President of KRAVE and will report to Buck. KRAVE Pure
Foods, Inc., has generated approximately $35 million in net sales over
the last twelve months and was named to Forbes 2015 America’s Most
Promising Companies list.
In 2012, KRAVE received a minority investment from Alliance Consumer
Growth. Financial terms of the transaction were not disclosed. KRAVE was
advised by Deutsche Bank. Hershey will fund the acquisition through cash
and available credit facilities. The closing of the transaction is
subject to regulatory approvals and customary closing conditions. See
the additional press release issued earlier today for information
related to Hershey’s financial guidance.
For more information about KRAVE jerky, please visit https://www.kravejerky.com/.
For more information about The Hershey Company, please visit https://www.thehersheycompany.com/.
About The Hershey Company
The Hershey Company (NYSE: HSY), headquartered in Hershey, Pa., is a
global confectionery leader known for bringing goodness to the world
through its chocolate, sweets, mints and other great-tasting snacks.
Hershey has approximately 13,000 employees around the world who work
every day to deliver delicious, quality products. The company, which has
more than 80 brands worldwide that drive over $7.4 billion in annual
revenues, includes such iconic brand names as Hershey’s, Reese’s,
Hershey’s Kisses, Jolly Rancher and Ice Breakers. Hershey is focused on
growing its presence in key international markets while continuing to
build its competitive advantage in North America. Additionally, Hershey
is poised to expand its portfolio into categories beyond confectionery,
finding new ways to bring goodness to people everywhere.
At Hershey, goodness has always been about more than delicious products.
For 120 years, Hershey has been committed to good business by operating
fairly, ethically and sustainably to make a positive impact on society.
This means contributing to a better life for employees, consumers,
communities, and, ultimately, creating a bright future for children in
need. This commitment is exemplified by Milton Hershey School,
established in 1909 by the company’s founder and administered by Hershey
Trust Company. The children who attend the school receive education,
housing, and medical care – thriving as direct beneficiaries of The
Hershey Company’s success.
About KRAVE Pure Foods, Inc.
From the celebrated vineyards, coveted micro-climates and renowned
gourmet outposts of California wine country comes, of all things, KRAVE.
Founded in 2009, KRAVE is a leading producer of artisanal jerky, located
in Sonoma. A cut above the old, leathery, chemically processed products,
KRAVE represents a jerky renaissance, providing an all-natural,
gluten-free snack that is both healthy and flavorful, made using only
all natural, high-quality ingredients. The meat is double marinated and
baked to lock in moisture. KRAVE’s meat is roasted, not dried or
dehydrated, and is braised first, utilizing the “low and slow” method to
produce the jerky’s signature moist and tender texture. Ranging from
sweet and tangy to savory and spicy, KRAVE’s innovative flavor profiles
will appeal to the everyday jerky lovers and to the discerning palates
of today’s food-savvy, health conscious gourmands. For more information
on KRAVE, please visit www.kravejerky.com.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20150129005242/en/
Contacts:
The Hershey Company
Financial Contact:
Mark Pogharian,
717-534-7555
or
Media Contacts:
Anna Lingeris,
717-534-4874
or
Daniele Natola, 213-225-4412
Source: The Hershey Company
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