Nestle buys Sweet Earth

LONDON: Nestle SA has agreed to buy Sweet Earth, a US-based maker of meatless frozen foods, as it looks to expand its portfolio of healthier products.

The Swiss company, Europe’s largest by market value, said yesterday that the purchase of Sweet Earth marks its first foray into the US market for plant-based foods, a global sector growing at a double-digit rate annually and expected to reach $5 billion by 2020.

Nestle and its processed food peers are battling slowing sales growth as consumer tastes and habits change, favouring smaller brands seen as healthier or more artisanal.

Separately yesterday, Unilever Plc also announced an acquisition of small organic herbal tea brand Pukka.

Unilever said it had acquired Pukka Herbs Ltd, which has annual sales of £30 million ($39 million) and growth of 30%. It did not disclose the price it paid.

It recently bought Sir Kensington’s mayonnaise and in recent years bought Grom and Talenti gelato brands.

Nestle, better known for KitKat bars, Nescafe coffee and Hot Pockets, did not disclose the price it paid for Sweet Earth, which makes frozen meals, burritos, breakfast sandwiches and burgers using meat alternatives like tofu and seitan.

The brand will remain independent from its US food business and continue to be led by its founders.