The Checkout: Post Acquires Ronzoni; Brands Celebrate April Fools’ Day
Welcome to The Checkout: an express lane for weekly news you need to know, always 10 items or less.
Ronzoni Acquired by Post Holdings’ 8th Avenue Food & Provisions
8th Avenue Food & Provisions, the holding company largely owned by Post Holdings, announced this week it has agreed to acquire dry pasta maker Ronzoni and its Winchester, Virginia manufacturing facility from Riviana Foods, a U.S. subsidiary of Spanish food company Ebro Group. The deal, expected to be completed in the second quarter of 2021, valued the business at $95 million.
The 100-year-old pasta brand is the second pasta maker in 8th Avenue’s portfolio of private label companies, joining Dakota Growers Pasta Co., which produces over 150 pasta shapes for foodservice and private label. In addition to traditional Italian pasta products, Ronzoni offers whole grain, added fiber, vegetable-based and gluten-free options. The company saw sales gains in 2020, generating $102 million in sales in 2019 and $115.8 million in 2020.
“With its highly on-trend, versatile product offering, state-of-the art facility, and impressive customer base, Ronzoni has a strong foundation from which to build on its leading market presence,” 8th Avenue CEO Scott McNair said in a press release. “Together with the Ronzoni team, we look forward to driving further growth and scale by delivering innovative products to all our loyal customers.”
The deal is part of a wave of acquisitions and funding deals for Post Holdings. In December, the company acquired peanut butter brand Peter Pan from Conagra as well as packaged hard-cooked and deviled egg maker Almark Foods. Post also announced a distribution partnership with plant-based meat maker Hungry Planet in January and led a $12.5 million funding round for snack brand Peatos in February.
Ebro Group began divesting brands in its pasta portfolio last year, selling regional pasta brands including San Giorgio and Prince to TreeHouse foods in December.
Bon AppéSweet Named Winner of The Empower Project
Sugar-free gelato and chocolate bar maker Bon AppéSweet was chosen as the winner of The Empower Project, a pitch competition with the goal of supporting Black-owned CPG businesses. As winner of the competition, the brand will receive $700,000 in professional services including branding, marketing, manufacturing, financial strategy and legal assistance.
Virginia-based Bon Appéweet, launched in 2019, offers eight dairy-based gelato varieties from Banana Pudding to Honey Butter Pecan and four oat milk-based vegan flavors including Peach Cobbler, all sweetened with fruit-based sweeteners. The brand also launched a line of dark chocolate bars with organic dates, cocoa butter and cocoa powder. Its products are currently sold online and in local retailers.
Founder and CEO Thereasa Black said in a press release that the “support and expertise” of the companies involved in The Empower Project help her to “breathe easier and move my business forward.”
“There are so many potential pitfalls when launching a business and it’s very hard for someone like me — a Black woman and single mother — to attract traditional financing,” she said. “Participating in the Empower Project and then being chosen as the winner is truly a blessing.”
Finalists in the competition included fish fry brand Joe’s Gourmet, condiment brand Food + People, pet treat maker Ava’s Pet Palace and vegan cookie brand Jimmy’s Vegan.
Launched last year, The Empower Project was created by 11 firms including SPINS, Whole Brain Consulting and C.A. Branding, aiming to amplify Black voices in the industry. Eligible businesses must have had $150,000 to $10 million in annual revenue and the ability to cover external expenses such as packaging and distribution.
Synthetic Honey Maker MeliBio Raises $850K
MeliBio, a California-based startup which makes honey without the use of bees, raised $850,000, the company announced this week. The company, founded last year, produces vegan honey through synthetic biology, plant science and fermentation in order to reduce the honey industry’s impact on bee biodiversity.
Participants in the round included Big Idea Ventures, Joyance Partners, 18.ventures, Sparklabs Cultiv8, Sustainable Food Ventures, Capital V and angel investor Courtney Reum as well as two family offices. Andrew D. Ive, founder and general managing partner of Big Idea Ventures, said in a press release that MeliBio “has the real potential to change not just the honey category but the whole sweetener and skincare industries with a new and sustainable way to create real honey without the bees.”
By the end of the year the company plans to have soft launched its products in food service, fulfilling the orders it received while participating in Big Idea Venture’s startup accelerator program. A commercial product launch of its plant-based honey is planned for the first half of 2022, according to the company.
Anheuser-Busch Breaks Ground on $100M EverGrain Facility
Anheuser-Busch (A-B) this week announced it had broken ground and begun renovation on a $100 million production facility for sustainable ingredient supplier EverGrain in St. Louis, Missouri. The new facility will be EverGrain’s first major production site, which has previously operated out of a smaller $15 million facility located in A-B’s Newark, New Jersey brewery.
Launched earlier this year, the A-B backed company uses spent grain left over from the beer brewing process to create grain-based ingredients for use in food and beverage products from protein bars to pizza crusts. The company currently supplies one of its ingredients to barley milk brand Take Two, and has several brand partnerships in development including a protein powder from Garden of Life launching later this year.
Founder and CEO Greg Belt said the announcement is a “key milestone in EverGrain’s journey to realize the full potential of barley.”
“As we grow our operations in St. Louis, we will be able to deliver new options to consumers who seek a healthier and more sustainable future,” Belt said. “With Anheuser-Busch’s support, we are uniquely positioned to deliver high-quality plant-based ingredients that don’t require additional land, save water, and lower the overall carbon footprint of our products – making them better for people and for the planet.”
Gallery: Brands Celebrate April Fools’ Day With Creative Product Launches
Yesterday the food industry celebrated April Fools’ Day by taking to social media to “trick” consumers. This year saw announcements of questionable new products ranging from unusual hard seltzer flavors to fruit-flavored pasta and savory toothpaste.
Tia Lupita
Tia Lupita added a spicy twist on a sweet treat with Salsa Verde, Hot Sauce, Habanero and Chipotle ice cream flavors.
Sunday Scaries
Sunday Scaries’ CBD candle offered top notes of “dirty laundry, stale beer, burnt pizza crust, 3am texts to your ex, and overall existential dread.”
Hendrick's
Hendrick’s offered a boozy take on a salty snack with Gin-Infused Pickled Cucumbers.
Banza x Magic Spoon
Chickpea pasta maker Banza and keto-friendly cereal brand Magic Spoon teamed up on Cereal Flavored Mac to offer consumers breakfast for dinner.
Chosen Foods
For consumers tired of the classic mint flavor of typical toothpaste, Chosen Foods’ Guacamole Toothpaste provided a more savory option.
Green Giant x PEEPS
With Easter around the corner, Green Giant teamed up with PEEPS for a plant-based take on the marshmallow treat.
The Good Crisp Company
The Good Crisp Company paid homage to its Australian roots with a Shrimps on the Barbie flavor of chips.
Bobo's
With many people working from home over the past year, Bobo’s provided some whole grain home comfort with “Ahhs Slippers.”
Ithaca Hummus
To capitalize on the continuing hard seltzer trend, hummus maker Ithaca announced a Lemon Beet Spiked Seltzer.
IWON Organics
IWON Organics also hopped on the hard seltzer bandwagon with a variety pack of flavors including Spicy Sweet Peppers and Korean BBQ.
Little Spoon
Little Spoon took inspiration from last year’s major TikTok trends for a baby food lineup that included Pancake Cereal and Dalgona Coffee.
Yasso
Yasso entered the freezer business to offer consumers more freezer space for their frozen novelty products.
