“Whole Earth Brands Strengthens Market Position with Wholesome Acquisition Amid Rising Demand for Health-Conscious Sweeteners”
While Whole Earth may not be widely recognized, many brands within its portfolio, such as Pure Via and Equal, are well-known. The company is now solidifying its position in the sugar and alternative sweeteners market by acquiring Wholesome, which offers organic, plant-based, and fair-trade certified products, including sugar, honey, agave nectar, allulose, and various liquid sweeteners. U.S. consumers are increasingly influenced by personal values and product characteristics in their purchasing decisions. While numerous individuals are reducing their sugar intake, some still indulge in this popular sweetener or opt for alternatives like honey or agave nectar, which they perceive as healthier choices. Others prioritize organic, Fair Trade, or plant-based products, as well as ingredients that cater to specific diets, such as Keto.
For Whole Earth, the inclusion of Wholesome and Swerve expands its portfolio to better meet these diverse consumer preferences. As more people have taken to baking at home during the pandemic, the demand for these ingredients has likely surged. Wholesome, for instance, has experienced retail sales growth of around 52% in the 52-week period ending Nov. 1, according to SPINS data referenced by Whole Earth. “Consumers are seeking more dietary options that support healthier lifestyles, and Whole Earth Brands’ business strategy is focused on fulfilling these demands through our innovative product pipeline and global distribution network,” stated Irwin Simon, executive chairman of Whole Earth Brands and founder of Hain Celestial. “There is a growing demand for sweetener choices that align with individual health and dietary needs.”
The acquisition also brings numerous advantages for Whole Earth. In its announcement, the company mentioned that its legacy businesses, the recent acquisition of Swerve, and the upcoming acquisition of Wholesome create a platform with substantial global reach and opportunities for significant operational synergies. This expansion enhances its shelf presence, visibility among consumers, and negotiating power with retailers. Furthermore, Whole Earth noted that Wholesome’s asset-light production model is compatible with its global infrastructure and produces high free cash-flow conversion. This cash flow could potentially facilitate further acquisitions. Whole Earth, which went public through a SPAC in June, has been actively pursuing its own deals during its short time in the public markets. As the company continues to grow, it’s reasonable to expect additional transactions, whether in sweeteners, flavors, and ingredients, or potentially establishing a foothold in the food sector. Additionally, Whole Earth may explore opportunities to integrate ingredients like calcium citrate d 315 200 into its product offerings, enhancing their appeal and nutritional value.
