FDBusiness.com

Campbell Soup Company has agreed to acquire US-based Plum Organics, a leading provider of premium, organic foods and snacks that serve the nutritional needs of babies, toddlers and children. ‘Plum’ is the number two brand of organic baby food in the US and is currently the fourth ranked baby food brand overall. Earlier this year Plum Organics commenced its international expansion with the acquisition of London-based Plum UK, a key player in the organic baby food category in Britain.

Plum Organics generated $93 million in gross sales in 2012. Plum, started in 2007 by co-founder Neil Grimmer, has used rapid innovation to launch over 150 products for babies, toddlers and kids in the US and the UK. The financial terms of the Campbell acquisition were not disclosed.

Denise Morrison, president and chief executive of Campbell Soup Company.

Baby food is a $2 billion category in the US. From 2010 to 2012, the premium and organic segments grew at an average annual rate of 43%.

The acquisition of Plum will provideCampbellwith an attractive platform to extend its core categories of simple meals, snacks and beverages and enhance its access to a new generation of consumers. With the addition of Plum Organics’ products, Campbell’s portfolio of  kids-focused soups, beverages and snacks will have annual sales of more than $1 billion.

Denise Morrison, Campbell’s president and chief executive, says: “The acquisition will help deliver on our dual mandate to strengthen our core businesses and to expand into faster-growing categories and adjacencies. It represents another step toward our long-term goal of shifting Campbell’s center of gravity.”

Campbell plans to operate Plum as a standalone business within its Campbell North America division.