Private equity company KKR is exploring the sale of Flora Food Group.
The US private capital group is working with investment bankers on a potential sale of the spreads business, according to reports from the Financial Times.
Flora, which also owns brands including I Can’t Believe It’s Not Butter and Bertolli, was bought by KKR in 2018 for €6.8bn from Unilever as part of a wider sales strategy from the multinational food business.
The FT reported that the business now hopes to strike a deal at a valuation of up to $10bn (£7.4bn).
According to its latest Companies House accounts, in the year to 31 December 2024, revenues at the UK business fell by 8.7% to £22.7m as a result of increased promotions and reduced prices, as well as a dip in volumes.
Despite this, gross profit margins remained steady at 12.8% thanks to falling commodity prices and other cost savings. But operating profits slumped by 37% to £7.4m on the back of the slowdown to the top line.
Under KKR’s leadership the parent company changed its name from Upfield to Flora Food Group in September 2024.
It also committed to making the entire portfolio plant-based by 2025 but later had to renege on this after the dairy alternatives market slowed. It has since reintroduced dairy into some of its core product lines.
It comes against an increasingly challenging backdrop for dairy alternative and spread brands with consumers shifting away from more processed options in favour of block and dairy formats.
According to data from NIQ, four out of the five Flora brands in the top 10 butter brands were in both value and volume decline in the year to 21 February. Only Flora was in value growth, up 4.3%, but this was paired with a decline in volumes of 4.1%.
Flora Food Group was contacted for comment.
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