Mondelēz acquisition of Grenade provides “differentiated offer” as snacking giant delves deeper into sports nutrition

23 Mar 2021 --- Mondelēz International is expanding its footprint in the high-growth well-being segments with the acquisition of a significant majority interest in Grenade, a UK performance nutrition company in the fast-growing high protein bar segment. 

Speaking to NutritionInsight, a Mondelēz spokesperson details the key drivers behind this acquisition. 

“The move complements our existing portfolio of Cadbury Brunch and Cadbury Nuttier, and provides a differentiated consumer offer through high-protein bars and performance nutrition products,” says the spokesperson.

While the companies have not confirmed the value of the deal, it is speculated to be worth around £200 million (US$275.2 million). The transaction is expected to close by the end of March. 

Mondelēz is known for its chocolate, confectionery and cookie portfolio, with brands such as Cadbury, Milka, Toblerone and Oreo, but the Grenade acquisition builds upon the multinational’s move toward the healthy snacking segment.

Protein bars’ potential
Grenade’s best-known brand is Carb Killa, which Mondelēz calls “the UK’s best-selling protein bar since 2016 and one of the leading [businesses] in the segment.”

“Protein bars are the fastest-growing segment within the UK snacking category, where four in ten UK adults eat them on a weekly basis,” adds the spokesperson. 

Carb Killa’s salted caramel variant contains 20 g protein and 1.4 g sugar.The spokesperson identifies the purchase of Perfect Snacks in 2019, a top-ranking player in refrigerated nutrition bars in North America, as an “important” move to solidify the company’s stance in the health snacking scene.

“Also, our biscuit brands, like belVita, and chocolate brands, like Cadbury, each have plans to grow in the Snack Bars category in Europe and Asia with new offerings to meet functional and better-for-you needs,” they explain.

Previous Mondelēz moves into health segments
The Grenade acquisition is the latest in Mondelēz’s strides to expand its position in the healthy snacking sector. “Grenade’s great-tasting, low sugar, high protein products provide a differentiated addition to Mondelēz International’s existing well-being portfolio,” says the spokesperson.

Dirk Van de Put, Mondelēz’s chairman and CEO, called the Grenade acquisition “another exciting opportunity” to deliver on Mondelēz’s strategy to become a global leader in broader snacking, including “in the important area of well-being.”

Alongside growth opportunities in chocolate, Mondelēz says it eyes potential in cross-category crackers and possibilities to expand distribution, including e-commerce and premium conventional retail.

Earlier this year, Mondelēz bought up the rest of US snacking company Hu Master Holdings, the parent company of Hu Products. The acquisition came after a minority investment in Hu in April 2019.

By the end of 2021, Mondelēz will have brought all its Cadbury chocolate bars sold as part of a multipack under 200 calories, as part of a voluntary portion-control strategy for consumers to tackle obesity.

From rags to riches
Grenade was founded by Alan and Juliet Barratt in 2010 with a mission to become the number one brand in sports nutrition products. 

“When [Juliet Barratt] and I founded Grenade from our spare bedroom with a budget of US$700, we dreamt of building an iconic brand available globally,” says Alan Barratt, co-founder and CEO of Grenade.

“This partnership with Mondelēz International gives us access to enormous resources and capability to help make those aspirations a reality and I couldn’t be more excited about our future growth and continued innovation,” he adds.

Made with all-natural nut butters and wholegrain oats, the Reload high-protein energy bar is also high in fiber and low in sugar.Entrepreneurial spirit abound
Over the years, Grenade has broadened its consumer base and launched new products, including high-protein, low-sugar bars and has innovated into new adjacencies including shakes, spreads and cookies.

Grenade has a strong e-commerce presence with approximately 24 percent of its sales from online channels.

Mondelēz plans to operate Grenade separately to “nurture its entrepreneurial spirit” while providing resources, support and international scale to help accelerate growth. 

The current senior leadership, including Alan Barratt, will continue to run the business from its headquarters in the UK and will retain a minority equity interest in the company. 

Promising protein
Innova Market Insights data reveals the use of protein sources in food & beverage launches is increasing globally, featuring a +6 percent year-over-year growth when comparing 2019 and 2020 launches. 

High/Source of Protein is the second most popular positioning in the Sports Nutrition Bars category specifically, with a 14 percent CAGR 2016-2020. This is second only to Convenience positionings, which have grown 21 percent (Global, 2016-2020). 

NutritionInsight covered the latest snack bar trends featured in North American nutrition bar and functional powder specialist Nellson’s recently published white paper. 

By Anni Schleicher