Cadbury owner Mondelēz International is continuing its drive towards healthier snacking products with the acquisition of Grenade, a fast-growing British sports nutrition brand best known for its protein bars.
Grenade was launched in 2010 and now offers products across a range of categories, including the UK’s bestselling protein bar called Carb Killa. In 2017, private equity firm Lion Capital paid £72m to acquire a majority stake in the company from co-founders Alan and Juliet Barratt and Grovepoint Capital.
Mondelēz revealed this morning that it was buying a “significant majority interest” in the company. Terms of the transaction were not disclosed but reports suggested that the deal values Grenade at around £200m.
“Grenade’s great-tasting, on-trend products are a great platform for Mondelēz International in the UK market and beyond,” said Dirk Van de Put, Chairman & Chief Executive Officer of Mondelēz International. “This is another exciting opportunity to deliver on our strategy to be a global leader in broader snacking, including in the important area of well-being.”
Mondelēz is best known for its brands such as Cadbury chocolate, Oreo cookies, and Ritz crackers. However, with governments cracking down on sugary snacks and consumer tastes shifting away from processed foods and towards healthier fare, the firm has been prioritizing brands with simpler and more nutritious ingredients to add to its range. This included its acquisition earlier this year of paleo chocolate-bar maker Hu Master Holdings.
Solihull-based Grenade now exports its products to more than 50 countries. As well as low sugar protein bars, it makes shakes, spreads, energy drinks, and biscuits with distinctive military-style branding. Around a quarter of its products are currently sold online but it also has listings in the major supermarket and convenience chains.
Mondelēz stated that Grenade would be operated separately from its main business with Alan Barratt remaining as Chief Executive and retaining a minority equity interest in the company.
The US firm will support Grenade in expanding its product range with Barratt saying: “When Jules and I founded Grenade from our spare bedroom with a budget of $700, we dreamt of building an iconic brand available globally. This partnership with Mondelēz International gives us access to enormous resource and capability to help make those aspirations a reality and I couldn’t be more excited about our future growth and continued innovation.”
