American consumer wellness brand CV Sciences has officially publicized the purchase of Cultured Foods, a European manufacturer and distributor of vegan food products. This strategic move allows CV Sciences to tap into the plant-based food market and aims to establish a foothold in the European market for its flagship brand, PlusCBD.
With a presence across 15 European countries, Cultured Foods produces a diverse range of plant-based offerings, including vEGGs egg alternatives, meat-free burger mixes, stew and gravy mixes, ground meat substitutes, and plant-based cheese mixes. With the acquisition, the company aims to introduce Cultured Foods vegan products to the United States while simultaneously creating a platform for the sale and distribution of PlusCBD products throughout Europe.
Strategic expansion and diversification
The purchase of Cultured Foods is part of CV Sciences’ broader strategy to diversify its portfolio and expand its global reach. Joseph Dowling, CEO of CV, cited the anticipated growth of the plant-based industry as a key motivator in the acquisition, commenting, “The global vegan food market is expected to grow five times by 2030 with millennials and flexitarians as the driving force behind soaring vegan food sales.” Structured as an equity purchase, the transaction includes a combination of cash payment, common stock shares, and potential earn-out payments, with a total consideration of up to $535,000.
Dowling expressed his excitement regarding the acquisition, stating, “We are thrilled that Cultured Foods and all of its employees are joining CV Sciences as a first key milestone to transition to a global health and wellness company. The acquisition synergies will allow us to leverage our key assets, including US distribution and B2B expertise, to drive long-term growth and shareholder value. “
Following the acquisition, Barbara McWhorter, the founder of Cultured Foods, will continue to lead the European manufacturing and distribution operations as general manager, and the company expects the partnership to contribute to financial growth.
Acquisitions for growth
Numerous plant-based enterprises have strategically utilized brand acquisitions to enhance their global presence and tap into international markets. Recently, Wide Open Agriculture, an Australian regenerative food and agriculture company, acquired Prolupin, a German producer of sweet lupin protein. Additionally, Oddlygood, a Finnish innovator in plant-based products, has taken over the Nordic brand Planti, a strategic acquisition that grants them access to the Swedish market.
Dowling spoke to initial objectives, concluding, “Our immediate plan is to leverage our B2B distribution network and bring convenient and sustainable plant-based foods into the US natural product channel while working with Cultured Foods to grow their business in the European market.”
