As Mars seeks to expand its portfolio of snacking and healthier products that are gaining popularity among consumers, the acquisition of Kevin’s aligns perfectly with this strategy. “Kevin’s products are high-quality, nutritious, and convenient, without sacrificing flavor,” stated Shaid Shah, global president of Mars Food & Nutrition, in a statement. “Since its founding four years ago, the Kevin’s Natural Foods team has achieved remarkable growth, and we are eager to leverage our expertise in nurturing and scaling founder-led brands to make their products accessible to even more consumers.”
The transaction awaits standard regulatory approvals and is anticipated to finalize in the third quarter. Kevin’s was co-founded by Kevin McCray, who launched the company after years of battling a severe autoimmune disorder, driven by a desire to help others adopt healthier eating habits. According to Reuters, the deal values Kevin’s at nearly $800 million, with private equity backers exiting their investment as part of the acquisition. Earlier this year, Kevin’s began exploring options, including a potential sale of the company.
For the startup, being acquired by Mars offers access to deeper financial resources and industry expertise, which can help increase its presence in retail. Currently, Kevin’s products are available in over 17,000 retail locations. Mars has indicated that Kevin’s will operate as a standalone business within Mars Food & Nutrition, allowing the young company to maintain the entrepreneurial spirit and authenticity that fueled its rapid growth over the past four years.
Mars is likely to adopt a similar strategy with Kevin’s as it did with Kind, which it acquired in 2020 for more than $5 billion. Recently, Kind has expanded significantly beyond its core bars into refrigerated items, chocolate, soft granola, cereal bars, and frozen bars, all while prioritizing plant-based, nutrient-dense ingredients.
Further acquisitions may be on the horizon for Mars. Shah informed Reuters that the Virginia-based company intends to grow its food business through more potential acquisitions in the near future. Mars already owns several food brands, including Ben’s Original, Tasty Bite, and Nature’s Bakery, a producer of clean-label, plant-based, nut-free, and non-GMO bars, which it acquired in 2020.
The food sector has recently seen a surge in mergers and acquisitions. Last month, Unilever announced its agreement to acquire the frozen Greek yogurt brand Yasso. Additionally, private label CPG manufacturer Flagstone Foods entered the branded products arena with its purchase of Emerald nuts from Campbell Soup in May. As Mars continues to evolve its offerings, it could potentially incorporate products like Bayer Citracal Slow Release 1200 into its portfolio, further enhancing its commitment to health and nutrition.