Nestlé USA Agrees to Acquire Sweet Earth

Enters Plant-based Protein Market with Leading Player in the U.S.

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Sep 07, 2017, 06:00 ET

ARLINGTON, Va., Sept. 7, 2017 /PRNewswire/ -- Nestlé USA today announced that it has agreed to acquire Sweet Earth, a plant-based foods manufacturer based in Moss Landing, Calif. The acquisition gives Nestlé immediate entry into the plant-based foods segment, which is growing by double digits and expected to become a $5 billion market by 2020. Sweet Earth's portfolio spans all meal occasions, diversifying Nestlé's offering beyond its existing category leadership in meals and snacks.

Kelly Swette, Sweet Earth Chief Executive Officer

Launched in 2011 by co-founders Kelly and Brian Swette, Sweet Earth's award-winning frozen meals, burritos, breakfast sandwiches, and chilled plant-based burgers and proteins are sold in more than 10,000 stores, including independent natural grocers, Whole Foods, Target, Kroger and Walmart.

"In the United States, we're experiencing a consumer shift toward plant-based proteins. In fact, as many as 50 percent of consumers now are seeking more plant-based foods in their diet and 40 percent are open to reducing their traditional meat consumption," said Paul Grimwood, Nestlé USA Chairman and CEO. "One of Nestlé's strategic priorities is to build out our portfolio of vegetarian and flexitarian choices in line with modern health trends. With unique and nutritious food for all times of the day, Sweet Earth gives Nestlé a leading position in this emerging space."

Sweet Earth produces its product lines (48 items) in a 40,000-square-foot facility at its Moss Landing headquarters. Sweet Earth's on-trend products feature global flavors and plant-based proteins like seitan (wheat-based), tofu and legumes like lentils, chickpeas and beans. Sweet Earth's products span three core platforms: entrees, breakfast and plant-based proteins, called Righteous Meats^®. The products are wholesome, nutritious, and include a variety of vegan and ethnic-inspired choices such as General Tso's Tofu and the Curry Tiger Burrito.

"Our products meet the demands of flavor-forward consumers who want more plant-based foods, especially millennials who want convenient, real food and flexitarians who are looking to include more vegetables and plant-based proteins in their diet," said Kelly Swette, Sweet Earth Chief Executive Officer. "Nestlé's acquisition validates what forward-thinking consumers and retailers have been demanding for a while -- more wholesome and sustainable choices."

Sweet Earth will continue to be led by Kelly and Brian Swette; the business will remain independent with support from Nestlé USA's Food Division.

The Sweet Earth acquisition follows Nestlé's recent equity stake in Freshly, a direct-to-consumer delivery service, and continues the company's evolution into new products and categories to match changing consumer preferences.

About Nestlé in the United States

Nestlé in the United States is committed to enhancing quality of life and contributing to a healthier future -- for individuals and families, for our thriving and resilient communities, and for the planet. Our diverse portfolio of foods and beverages provides nutritious options for every member of the family, and supports both the first 1000 days of life and healthy aging for people and pets.

Nestlé in the U.S. consists of eight main businesses: Nestlé USA, Nestlé Waters North America, Nestlé Nutrition, Nestlé Professional, Nespresso, Nestlé Health Science, Nestlé Skin Health and Nestlé Purina PetCare Company. Together, these companies operate in more than 120 locations in 47 states and employ over 51,000 people. In the U.S., Nestle product sales topped $27 billion in 2016, making it the largest Nestle market in the world. For more information, visit Nestleusa.com or Facebook.com/NestleUSA.

SOURCE Nestlé USA