Premier Foods has acquired FUEL10K, a breakfast brand with a portfolio of granola, oats and drinks products.
The completed deal has seen Premier Foods pay £29.6m upfront, with a minimum of a further £4m payable in the 2026/27 financial year and up to a maximum of £55m dependent on certain growth targets.
Premier Foods moved into the breakfast category last year with the launch of Ambrosia ready-to-eat porridge pots. It noted that acquiring FUEL10K will substantially increase its position in the category, with the brand’s “on-trend” proposition of protein-enriched products appealing to a younger consumer demographic.
FUEL10K has recorded double-digit growth over the last three years, with it on track to generate revenues of around £21m in its current financial year.
Alex Whitehouse, Chief Executive of Premier Foods, commented: “FUEL10K provides us with an ideal platform to accelerate our expansion into the Breakfast category, building on our recent successful launch of Ambrosia porridge pots. Possessing a differentiated category position, with its protein-enriched product range and appealing to a younger demographic, we expect to deliver significant further profitable growth of FUEL10K through the deployment of our successful branded growth model.”
Barney Mauleverer, co-founder of FUEL10K, added: “We are very excited to be passing the reigns on to the owner of such a great stable of UK brands. Having built the foundations from start-up, the FUEL10K brand is now primed to accelerate into the future and achieve even more great things. I could not think of a better custodian of our brand than Premier Foods to entrust what we have begun and make the most of such a great opportunity.”
Last year, Premier Foods, which also owns brands such as Bisto, Mr Kipling and Sharwoods, paid £44m to acquire The Spice Tailor, an Indian and South East Asian meal kits and accompaniments brand.
NAM Implications:
- When a company of this size takes over a smaller player, there will be impacts in the breakfast category.
- With incentives like 2x the initial price ‘dependent on certain growth targets’…
- …means there will be a considerable push by all stakeholders.
- Watch this space.
- And at least recheck relative competitive appeal in this category…
