The acquisition more than doubles the business under Quinoa Corporation’s management and combines the gluten-free formulation expertise and supplier networks of both brands.
However, according to Quinoa Corporation, the two complementary brands have ‘virtually no overlap’.
Ancient Harvest produces quinoa, pasta, hot cereal, polenta and other plant-based, gluten-free protein products, while Pamela’s produces gluten-free baking mixes and baking ingredients, such as pancake mix and paleo flours, as well as snack bars, cookies and graham crackers.
More critical mass
“The saying that there’s strength in numbers applies directly to this transaction,” said John Becker, CEO of Ancient Harvest.
“Marrying two established gluten-free brands will give us more traction with retailers, more critical mass with suppliers, more operational and marketing efficiencies, and more knowhow in working with gluten-free ingredients for product innovation.
“All of these factors will benefit the growing number of consumers who need or prefer gluten-free options.”
Gluten-free – once considered a fad – has now moved into mainstream. Globally, around 20% of consumers in a Datamonitor survey said they avoid certain foods due to an allergy or intolerance, while a further 22% do this occasionally.
Survey results also found that those influenced by gluten-free claims are healthier eaters, more ethical, experimental and more influenced by natural and organic ingredients than the average global consumer.
“The gluten-free space has exploded over the years and the company has grown accordingly,” said Pamela Giusto-Sorrells, president of Pamela’s, who founded the brand in 1988 to provide tasty products for people with special dietary needs.
“Joining forces with Ancient Harvest ensures that our commitment to delivering the best tasting gluten-free foods will continue with a company that has the same values and dedication to quality that have put us on the map.”
The brands will continue to be marketed under their own labels, in order to maintain name recognition and reputation, but Giusto-Sorrells will step away from day-to-day operations.
Financial details of the transaction were not disclosed.