Mars to expand into healthy food segment with acquisition of Kevin’s Natural Foods
USA – Mars, Incorporated, one of the largest food companies in the world, has announced its intention to acquire Kevin’s Natural Foods, a leading producer of healthy and premium frozen food products.
The acquisition deal, subject to regulatory approvals, is set to expand Mars’ portfolio into the thriving market of health-conscious consumers seeking nutritious and convenient meal options.
It also values private equity-backed Kevin’s at nearly $800 million, according to people familiar with the matter. Kevin’s started exploring options, which included a sale of the company, earlier this year.
Founded in 2017 by Kevin McCray, Kevin’s Natural Foods quickly gained popularity for its range of chef-crafted, clean-label frozen meals. The brand’s offerings include a variety of gluten-free, keto-friendly, and paleo-certified dishes, appealing to consumers with dietary preferences and wellness goals.
While the financial details of the deal have not been disclosed, the acquisition is subject to customary closing conditions and regulatory approvals.
Once finalized, Kevin’s Natural Foods will become a part of Mars Food, the subsidiary responsible for the company’s food-related businesses, and will operate as a standalone brand under the food and nutrition unit.
Virginia-based Mars, which generates about $48 billion in annual sales, has three major businesses – Mars Petcare, Mars Snacking, and Mars Food & Nutrition.
The acquisition marks a strategic move by Mars to strengthen its foothold in the fast-growing healthy food segment.
As consumers become increasingly health-conscious, the demand for nutritious and convenient meal solutions has surged, and Mars aims to capitalize on this trend by adding Kevin’s Natural Foods to its diverse portfolio of brands.
Research and Markets projects the global health & wellness food market size estimated at US$113.80 billion in 2022 to grow at a Compound Annual Growth Rate (CAGR) of 9.33% to reach US$232.46 billion by 2030.
As part of the acquisition, Mars intends to support and scale Kevin’s Natural Foods while preserving its commitment to high-quality ingredients and sustainable sourcing.
The combined expertise and resources of both companies are expected to drive further innovation and product development within the healthy food sector.
Mars plans to grow its food business through more potential acquisitions in the near term, said Shaid Shah, global president at Mars Food & Nutrition.
“We are trying to deliver on a mission we have to enable healthier and more flavorful diets for consumers worldwide, while Kevin’s is trying to empower the busiest people to eat clean without sacrificing flavors,” Shah underlined. “What really inspired us about Kevin’s was their purpose and their passion for food.”
Kevin McCray, the founder of the healthy food maker, launched Kevin’s after he was diagnosed with an autoimmune disorder, as he wanted to build a food brand that focused on healthy diets.
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