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HERSHEY, Pa. — The Hershey Co. plans to acquire KRAVE Pure Foods Inc., the maker of the KRAVE jerky brand natural jerky snacks.
The Hershey Co. plans to acquire KRAVE Pure Foods Inc., the maker of the KRAVE jerky brand natural jerky snacks.
Financial terms of the deal weren’t disclosed. Hershey said that the addition of the KRAVE jerky gourmet snacks brand will enable the company to tap into the fast-growing meat snacks category and further expand into the overall snacks market.
Hershey noted that KRAVE jerky offers a nutritious and premium option for consumers seeking high-protein snacks. KRAVE is a leader in premium jerky, a rapidly growing subsegment of the estimated $2.5 billion U.S. meat snacks category.
The overall meat snacks category is growing at a double-digit pace, with a compounded annual growth rate of about 10% from 2010 to 2014, Hershey reported, adding that the "better-for-you" premium segment of the category, which includes KRAVE, grew at a rate of almost four times greater than mainstream brands.
The brand has differentiated itself in the space with its all-natural ingredients and unique flavors, including Black Cherry Barbeque Pork Jerky, Basil Citrus Turkey Jerky and Chili Lime Beef Jerky, according to Hershey. KRAVE jerky products are also free of gluten and high-fructose corn syrup and have no added nitrites or MSG.
"KRAVE jerky is a great fit to our portfolio and overall snacks and adjacencies strategy," stated Michele Buck, North America president at Hershey. "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."
Plans call for KRAVE to remain based in Sonoma, Calif., and to operate as a stand-alone business in the Hershey North America division. Jonathan Sebastiani, the founder of KRAVE, will continue to lead the business as president and will report to Buck.
KRAVE Pure Foods generated approximately $35 million in net sales over the last 12 months and was named to Forbes 2015 America’s Most Promising Companies list.
