Lance invests in organic snacks
stake in Late July Snacks, as part of a bid to move into the
organic and healthy market.
The Lance company, which typically manufactures and sell "unhealthy" snack products such as biscuits and cookies, has realised that food companies must cater to consumers, many of whom are increasingly buying organic, feeling it is better for both human health and the environment. Indeed, according to a new report from Global Business Insights, sales of healthy and organic snack bars are set to far outstrip those of chocolates and sweets. "Entry into the organic food sector with our investment in Late July is consistent with our strategy to increase our presence in the better-for-you products category, and will allow us to capitalize on growing consumer trends in the organic food space," said company chief executive officer and president Dave Singer. According to Global Business Insights, the European market for snack bars will be worth $4bn (€2.7bn) over the next three years, while sales of chocolate, gum and sugar candies will experience slow annual compound growth of 1.7 per cent, 2.5 per cent and 2.1 per cent respectively. Lance did not reveal the price of the acquisition, but said that it had "purchased a non-controlling minority equity interest" in the privately held Late July firm. According to Organic Monitor, exceptionally high market growth rates are pushing global organic food and drink sales towards a massive $40bn this year. Fresh produce is the biggest organic product category, comprising a third of global revenues, followed by dairy products and then beverages, the consultancy warned. However, the increasing demand for organic products is now outpacing supply, and a number of regions currently experiencing shortages.
