Litehouse to acquire condiments producer Sky Valley Foods
Published Date | 2019 June 3
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.