British organic babyfood business Plum Baby has been acquired by an American organic food supplier also called Plum.
California-based Plum Organics said the deal would create a joint operation worth $120m in retail sales, and would allow both businesses to benefit from supply chains and distribution networks that would span the UK and US.
Until now there had been no connection between the two businesses, and the similarity of their names was a coincidence – although both operations were founded in 2006 by parents.
Plum Organics produces organic baby food, toddler and kids’ snacks, and introduced the pouch format to the US babyfood market.
“Plum Organics is known in the US as a game-changing innovation hothouse,” said Plum Baby CEO Scott Wotherspoon. “We can’t wait to capture some of that momentum by bringing their products to little ones in the UK and beyond.”
Sales of Plum Baby wet babyfood products have fallen 19.5% year-on-year to £5.9m [Nielsen 52w/e 13 October 2012]. The company expanded its range last year with the Taste Adventures line-up of globally inspired foods.