Hershey Completes Acquisition of Fulfil Nutrition‘s North American Division
Table of Contents
- Hershey Completes Acquisition of Fulfil Nutrition’s North American Division
- Details of the Acquisition
- Fulfil’s Performance and Market Growth
- Hershey’s Strategy and Future Outlook
- Key Figures in the Fulfil Nutrition Deal
- The Rise of Protein Bars
- Evergreen Insights: Background, Context, historical Trends
- FAQ About Hershey’s Acquisition of Fulfil Nutrition
- Why did Hershey acquire Fulfil Nutrition’s North American business?
- who is Barry Connolly and what was his role with Fulfil Nutrition?
- How large is the North American protein bar market?
- What was the initial investment of Hershey in Fulfil Nutrition?
- What other brands does Hershey own in the protein bar market?
- What is the expected financial impact of the Fulfil Nutrition acquisition on Hershey?
Hershey, the US confectionery giant, has fully acquired Fulfil Nutrition’s North American business from its Irish co-founder, Barry Connolly. The deal finalizes Hershey’s control over the protein bar brand in the region, building upon their existing joint venture as 2020.
Details of the Acquisition
the acquisition marks another significant financial gain for Connolly, who co-founded Fulfil Nutrition in 2016. In April 2022, Swiss confectionery giant Ferrero acquired the larger Fulfil Nutrition business for a reported €160 million [[3]]. However, Connolly and Hershey retained control of the North American division through a joint venture.Hershey had the option to increase its stake over time, contingent on specific growth targets.
Did You Know? Barry Connolly previously brought Red Bull to Ireland through his Richmond Marketing group.
Fulfil’s Performance and Market Growth
Hershey CEO Michele Buck stated that Fulfil is the “largest and fastest-growing brand in the protein and energy bar segment in Europe” and possesses “tremendous upside, both in the US and internationally.” The North American protein bar market, encompassing the United States, Canada, and Mexico, has experienced ample growth. Market analysis indicates an annual growth rate exceeding 5%, with a total valuation of approximately $5.6 billion (€4.8 billion) last year. The United States accounts for roughly 70% of this market.
Industry analysts suggest that deals in this sector typically achieve valuations of around four times current sales. While Connolly projected the North American business could match the wider group’s €40 million revenue at the time of the Ferrero deal, some sources suggest a more conservative valuation, potentially resulting in a payout closer to €55 million for Connolly.
Pro Tip: When evaluating potential acquisitions, companies frequently enough consider factors such as brand recognition, market share, and growth potential.
Hershey’s Strategy and Future Outlook
Hershey initially invested in Fulfil in 2019, viewing it as a “strategic role in our expanding North American snacking strategy.” The company distributes Fulfil products in North America through One Brands, a protein bar group acquired for nearly $400 million shortly after the initial Fulfil investment. Despite the acquisition, Hershey CFO Steve voskuil stated that the impact on the group’s full-year outlook would be immaterial.
Key Figures in the Fulfil Nutrition Deal
| Entity | Role | Details |
|---|---|---|
| Hershey | Acquirer | Acquired Fulfil Nutrition’s North American business. |
| Barry Connolly | Co-founder of Fulfil Nutrition | Sold his stake in the North american business to Hershey. |
| Ferrero | Previous Acquirer | Acquired the larger Fulfil Nutrition business in 2022. |
The Rise of Protein Bars
The protein bar market has seen significant growth in recent years, driven by increasing consumer awareness of health and wellness. According to Statista, the global protein bar market is projected to reach $7.05 billion in 2025 [Statista]. This growth is fueled by factors such as busy lifestyles, the desire for convenient and nutritious snacks, and the increasing popularity of fitness and exercise.
What factors do you believe contribute to the continued growth of the protein bar market? How do you think Hershey will leverage the Fulfil Nutrition acquisition to further strengthen its position in the snacking industry?
Evergreen Insights: Background, Context, historical Trends
The acquisition of Fulfil Nutrition’s North American division by Hershey reflects a broader trend of consolidation and strategic acquisitions within the global snack food industry.Companies are increasingly seeking to expand their portfolios and market reach through acquisitions of innovative and high-growth brands. This trend is driven by factors such as changing consumer preferences, increasing competition, and the desire to capitalize on emerging market opportunities.
FAQ About Hershey’s Acquisition of Fulfil Nutrition
Why did Hershey acquire Fulfil Nutrition’s North American business?
Hershey acquired Fulfil Nutrition’s North American operations to strategically expand its snacking portfolio in the region. Hershey viewed Fulfil as playing a strategic role in its North American snacking strategy.
who is Barry Connolly and what was his role with Fulfil Nutrition?
Barry Connolly is the Irish co-founder of Fulfil Nutrition. He retained control of the North American business through a joint venture with Hershey after the sale of the wider Fulfil Nutrition group to Ferrero in 2022.
How large is the North American protein bar market?
The North American protein bar market, encompassing the United States, Canada, and Mexico, has been growing at over 5% annually. It was valued at approximately $5.6 billion (€4.8 billion) in the previous year.
What was the initial investment of Hershey in Fulfil Nutrition?
Hershey initially invested in Fulfil Nutrition in 2019, prior to Ferrero’s acquisition of the larger business in 2022.The specific amount of Hershey’s initial investment was not disclosed.
What other brands does Hershey own in the protein bar market?
Hershey distributes Fulfil Nutrition products in North America through One Brands,a protein bar group that Hershey acquired for nearly $400 million shortly after its initial investment in Fulfil Nutrition.
What is the expected financial impact of the Fulfil Nutrition acquisition on Hershey?
According to Hershey’s chief financial officer, Steve Voskuil, the acquisition of the Fulfil brand is not expected to have a material impact on the group’s full-year financial outlook.
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