In a dramatic discount deal, the German confectioner behind Candy Kittens is poised to take Graze off the hands of consumer goods behemoth Unilever.
A Steep Discount for a Healthy Snack Brand
Sky News has learned that Katjes Group, headquartered in Germany, is in advanced negotiations to pay approximately £35 million to acquire the Graze snack business. This price tag stands in stark contrast to the £150 million that Unilever paid for the healthy snacks brand back in 2019.
The potential sale underscores a significant strategic shift for Unilever and represents a major bargain for Katjes, the owner of the popular vegetarian sweet brand, Candy Kittens.
Graze's Journey Under Unilever's Ownership
Graze, which was founded in 2008, built its reputation on selling healthy snacks like espresso-flavoured almonds and honeycomb oat bars. These products are available in major supermarkets and were also pioneered through a direct-to-consumer subscription model.
When Unilever acquired the brand six years ago, it successfully outmanoeuvred rival bidders, including industry giants Kellogg and Pepsico, the owner of Walker's Crisps. However, the brand has reportedly underperformed during its time under Unilever's ownership.
This poor performance prompted Unilever's new chief executive, Fernando Fernandez, to initiate a sale process for Graze earlier this year. The agreed-upon sale price of around £35 million is notably lower than what market estimates had suggested the brand would fetch.
Unilever's Broader Strategic Reshuffle
The move to sell Graze is part of a wider strategic overhaul being led by Mr. Fernandez. The new Unilever boss is prioritising investments in faster-growing sectors, particularly consumer healthcare and beauty.
This refocusing has already seen the company snap up the personal care brand Wild earlier this year. Furthermore, reports from last week indicated that Mr. Fernandez has also kicked off a sale process for other prominent British food brands in Unilever's portfolio, including Colman's, Bovril, and Marmite.
A spokesman for Unilever has declined to comment on the advanced negotiations with Katjes Group.
