Litehouse to acquire condiments producer Sky Valley Foods
- Published | 03 June 2019
Acquisition of Sky Valley Foods by Litehouse will help in its business
expansion in the organic products industry is expected to drive the global
organic food market in the forecast period
Global: Refrigerated salad dressing (RSD) brand Litehouse Inc., has
agreed to acquire Sky Valley Foods, a producer of organic shelf-stable
dressings, condiments, marinades, and sauces under the Organicville and Sky
Valley brands. With the $46m acquisition of Sky Valley Foods, the company
intends to expand its portfolio in the natural and organic food channels, as
well as increase its production capacity to support continued growth. Through
it deals, Litehouse will acquire a 132,000ft² manufacturing facility located in
Danville. Through the acquisition, Litehouse plans to grow its portfolio with a
central store, clean, organic products. Litehouse currently has five U.S.
facilities based in Idaho, Michigan, and Utah, and offers its products through
general retail, e-commerce, foodservice, deli, member stores, and value-added
goods, where Litehouse products are featured in meal and salad kits.
According to BlueWeave Consulting,
the rising awareness towards health and food safety among the consumers across
the globe and upsurge in disposable income and access to credit is expected to
fuel the organic food market in upcoming years. Organic food products are safer
than the widely available ones because there is no utilization of fertilizers,
pesticides, fungicides, etc. when they are grown. Moreover, there are no traces
of chemicals on the cultivation land and the organic animals are also raised
without pushing antibiotics or hormones into their system.
Organic foods often have more
beneficial nutrients, such as antioxidants, than their conventionally-grown
counterparts. These organic foods contain fewer pesticides, often fresher, and
it has high levels of certain nutrients, including omega-3 fatty acids, were up
to 50 percent higher in organic meat and milk than in conventionally raised
versions. Also, organic food provides health benefits like boost Immune System
and fuel boost cardiovascular protection. Increasing per capita income, growing
awareness among consumers for health and food safety, emerging concerns for the
environmental issues, major lifestyle changes among the younger age-group will
trigger the organic food market in the future timeline.
According to
BlueWeave consulting’s report, Titled-“Global Organic Food Market by Type(Dairy, Bakery products, Fruits & Vegetables, Snacks, Meats/fish &poultry, Sauce & condiment, processed food, packaged food and other), by distribution channel (online channel, Offline channel, Supermarkets and Departmental stores) Size and Forecast by 2018- 2026”- Global
Organic Food Market is expected to grow at a CAGR over 15% during 2018-2026 in
terms of value. This growth is driven by a number of factors such as rise in
consumer awareness towards health and food, increasing disposable income, major
lifestyle changes among the younger crowd and emerging concerns for
environmentalists, etc.
Additionally, increasing
human diseases like allergies, obesity and nutritional deficiencies across the
world will push consumers to choose healthier food options which would drive
the organic food market.
According to
BlueWeave consulting’s report, Titled-“U.S. Organic Food Market by Type (Dairy,Bakery products, Fruits & Vegetables, Snacks, Meats/fish & poultry,Sauce & condiment, processed food, packaged food and other), by distribution channel (online channel, Offline channel, Supermarkets and Departmental stores); Size and Forecast by 2018- 2026”- U.S.
organic food market is expected to grow at a CAGR over 15% during 2018-2026 in
terms of value. This growth is driven by a number of factors, including growing
consumer awareness for health and well-being, coupled with stringent government
regulation to maintain safety and quality standards in food.
Furthermore, rising disposable incomes and increasing
awareness of health and wellness aspects, consumers are opting for healthier
alternatives, especially for children and in post, mid-age group would propel
the product growth.
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