Kraft focuses on health food - purchasing Balance Bar - Brief Article

Eurofood, Feb 3, 2000

Kraft, the North American food division of US tobacco company Philip Morris, has announced two deals which will increase its standing in the health food division. The group has paid US$268m (??260.2m) to acquire Balance Bar Co., a producer of nutrition/energy snacks which reported 1999 revenue worth US$100m. Balance Bar's product line includes energy/nutrition snacks, powdered and ready-to-drink beverages, and bars under the Jenny Craig brand.

Announcing the acquisition, Kraft president and chief executive Robert Eckert said that the energy/nutrition category has doubled since 1997. Previously Kraft said it would acquire Boca Burger, a marketer of soy-based meat alternatives such as veggie burgers, for an undisclosed sum. Last year the group paid US$307m to acquire Worthington Foods, a producer of meatless sausages, which will be complemented by the acquisition of Boca Burger.

Kraft is not the only large US food group keen to tap the potential of the functional foods and health food market. In the last few months Kellogg and Heinz have both devoted considerable sums to acquisitions in that dynamic sector.