Acquisition Talks

The owner of Candy Kittens, a vegetarian confectionery brand, is in talks to buy Graze, a snack range from Unilever, at a significantly discounted price.

Background

Graze, founded in 2008, was acquired by Unilever in 2019 for around £150 million. The brand offers a variety of healthy snack products, including espresso-flavored almonds and honeycomb oat bars, which are sold directly to consumers in major supermarkets and through subscriptions.

Current Developments

Katjes Group, the Germany-headquartered owner of Candy Kittens, is in advanced talks to acquire Graze for approximately £35 million. This price represents a substantial discount on the original purchase price, indicating the brand’s poor performance under Unilever’s leadership.

Performance Under Unilever

Despite being acquired by Unilever in 2019, Graze has struggled to perform well. As a result, Unilever’s new chief executive has put the brand up for sale as part of a broader strategy to prioritize investment in higher-growth areas, such as consumer health and beauty.

Unilever’s Strategy

Unilever’s new leadership is focusing on investing in areas with higher growth potential. This includes the recent acquisition of personal care brand Wild. Additionally, the company has initiated a sale process for other well-known British food brands, including Colman’s, Bovril, and Marmite.

Conclusion

The potential sale of Graze to Katjes Group at a significantly discounted price reflects the brand’s challenges under Unilever’s ownership. As Unilever shifts its focus towards higher-growth areas, the future of Graze and other brands within its portfolio remains uncertain.