Belgium’s Lotus Bakeries, recent acquirer of snack brands Bear, Nakd and Kiddylicious, has launched an incubator fund and made another investment in the UK healthy snacking sector.

Lotus’ new venture capital vehicle has taken a minority stake in healthy sourdough crispbread producer Peter’s Yard as its first investment.

It has acquired 20% of the Shrewsbury-based brand’s equity for an undisclosed sum. The deal could also lead to the possibility of a phased full takeover.

Peter’s Yard’s crispbreads are a “healthy alternative to bread” listed across the mainstream UK supermarkets, with around £3m of annual sales in 2018.

Companies House documents show Peter’s isued new equity worth 10% of the company as part of the deal, priced at just over £1m. Lotus CFO Isabelle Maes has also joined the Peter’s Yard board.

“Having established the Peter’s Yard brand with strong foundations, we are now investing in growing awareness and distribution in the UK and supporting focused innovation and selective export growth,” said Peter’s Yard co-founder Ian Tencor.

The deal is the first from Lotus’ new FF 2032 incubator fund, which, the name of which references the bakery’s forthcoming centenary year.

Lotus said the venture would “invest in innovative companies [in Europe or the US] focused on contemporary consumer demands in the areas of nutrition and convenience”.

The vehicle will invest up to €30m targeting minority interests in European and US brands “in the coming years”, targeting minority interests in brands to “provide expertise and a financial, strategic and supportive input”.

CEO Jan Boone commented: “This is a perfect fit for our long-term vision and philosophy. I believe very strongly in this collaborative model and the mutual cross-fertilization which can take place with promising young businesses and equally so business cultures.”

Lotus’ latest investment represents a continuation of its strong push into the UK savoury snacking category having acquired healthy snack brands Nakd, Trek, Kiddylicious, Bear and Urban Fruit in the past four years.

In the first half of 2019 Lotus’ group-wide sales rose 11.5% to €298.1m, boosted by “strong growth” in its Natural Foods business housing its recent UK acquisitions. Lotus said growth in Nakd was supported by its first TV commercial, while Bear grew strongly in the US and Kiddylicious continued to expand distribution in the UK.

In June, Lotus announced the acquisition and opening of a new Bear factory in South Africa following a March 2018 agreement to bring the manufacturing process for Bear in-house after the 2015 deal to acquire the brand.

Recurrent operating profit was up 7.1% to €51.2m in the first half of the year..

Topics