Hain Celestial Buys Thinster and ParmCrisps Maker

Adrianne DeLuca

Hain Celestial will acquire better-for-you food snack brand That’s How We Roll, the owner of Proven Brands, Inc. and KTB Foods, Inc., from private equity firm Clearlake Capital Group in a $259 million deal, Clearlake announced today. The deal is expected to close by the end of 2021.

What is That’s How We Roll?

That’s How we Roll was founded by Aldo Zuppichini and Jason Cohen in 2012. The company — then producing snack brands Thinsters and Dippin Chips — was first acquired by Clearlake in 2014  Two years later, the investment firm also bought ParmCrisps maker Kitchen Table Bakers and brought the cheese crisp brand under That’s How We Roll’s guidance.

Following these acquisitions, Clearlake focused streamlining operations for both brands which included scaling manufacturing. In March 2020, the company finished building out its own 70,000 sq. ft. facility in-house in York, Penn. to “optimize its proprietary manufacturing process,” according to a press release.

Clearlake also accelerated distribution for both brands and executed a successful, multi-channel go-to-market strategy in addition to modernizing the logos, branding and packaging of both Thinsters and ParmCrips. Under Clearlake’s leadership, both brands have ramped up innovation as well, adding a range of new flavors to their respective flagship lines in tandem with new product launches such as ParmCrisps Snack Mix.

In addition to portfolio expansion, That’s How We Roll said it was able to grow from a ten person operation pre-investment to over 250 employees with the help of Clearlake and that its two flagship brands are now positioned as leaders in their respective categories.

“This successful outcome would not have been possible without the value-added partnership of Clearlake, whose deep consumer and operating expertise accelerated our growth trajectory,” said Zuppichini in a press release. “Clearlake understood our goals, and, under their stewardship, we were able to successfully execute our growth plan. A great product along with the right people and an intense passion has been our recipe for success.”

What does this mean?

This acquisition marks Hain’s continued portfolio transition to better-for-you products, specifically in the snacking space, under the leadership of CEO Mark Schiller. According to That’s How We Roll CEO Samuel Kestenbaum, Hain has realigned its strategy under Schiller to focus on building better-for-you products with an emphasis on snack brands.

“​​I know Hain to be an entrepreneurial company with an entrepreneurial spirit, but with key disciplines that go to a traditional CPG company and I think that’s really what makes this the perfect marriage,” said Kestenbaum. “At our company, we’re all about accelerated top line growth. But we got to be scrappy about that as a small company. Getting into what they are calling Hanes 3.0, which is their accelerated growth strategy, really starts with the acquisition of our company.”

Hain’s snack portfolio also includes products such as Terra chips, Sensible Portions Garden Veggie Straws, Garden of Eatin’ chips and Health Valley multigrain cereal bars. The upcoming addition of Thinsters cookie thins and ParmCrisps will bring two new unique product lines into the mix. Thinsters are non-GMO, clean label cookie crisps that come in a variety of flavors including Toasted Coconut, Key Lime Pie and Brownie Batter. ParmCrisps are an oven-baked, 100% cheese snack that are keto-friendly, gluten-free and contain 13 grams of protein per serving.

“We are excited to welcome ParmCrisps and Thinsters to the Hain family and support the brands’ next chapter of growth,” Schiller said in the release. “ParmCrisps and Thinsters are attractive clean-label snacks that address the needs of a growing base of health conscious consumers.”

According to Hain, That’s How We Roll generated over $100 million in net sales over the past year for the period ending September 30, 2021 and is expected to see double digit growth in 2022. In a recent study by market research firm Packaged Facts, sales for snacks with attributes including low carb, high protein, low/no sugar, plant-based, clean label, among others, hit $39 billion in 2020 and sales are expected to continue accelerating.

What’s next?

When Clearlake initially invested in That’s How We Roll, Zuppichini and Kestenbaum remained in their leadership positions; however, with today’s announcement Kestenbaum said he will continue in his role as CEO under Hain, but after the onboarding process, Zuppichini will “be moving on” as a founder and board member.

“I would be remiss if I didn’t thank Aldo for his leadership, Jason Cohen, as a key board member and part of the founding team we have at That’s How We Roll, as well as our investment partner ClearLake Capital for sharing our vision and allowing us to make investments, with the key one being the creation of our of our plant in York, PA in March of 2020,” Kestenbaum emphasized.

He also noted that in terms of structure “everything will stay the same” for That’s How We Roll’s employees and those who work at its manufacturing facility. As for the company’s future under Hain’s guidance, Kestenbaum said he believes That’s How We Roll will continue to drive growth within the better for you snack space and hinted at the potential to bring new and emerging brands under its wing.

“We are extremely excited about the strategic acquisition of That’s How We Roll by Hain Celestial and the opportunities it brings to the brand,” said Kestenbaum. “With Hain’s background as a leading health and wellness food company, this alignment will allow That’s How We Roll to continue to change the landscape of the snack food category and innovate in spaces beyond traditional retail. Both ParmCrisps and Thinsters are snacking staples and dynamic brands that will continue to innovate and push category boundaries, with the consumer top-of-mind.”

Correction: An earlier version of this story misstated the brands under That’s How we Roll. The company’s portfolio includes Thinsters and ParmCrisps. The article has been corrected.