Unilever has agreed to acquire Brazilian natural and organic food business Mae Terra for an undisclosed price to boost its food portfolio.
The consumer goods giant expects the acquisition of the Brazilian food manufacturer to accelerate its expansion in the high-growth naturals and organic sector.
Established in 1979, Mãe Terra offers organic and nutritious food products to health-conscious consumers. The Brazilian food firm’s product portfolio includes organic cereals, snacks, cookies and culinary products.
According to Unilever, the key categories of Mãe Terra represent a Brazilian market worth over €8bn (Euromonitor).
It further adds that with an annual growth rate of more than 30%, Mãe Terra has a strong brand equity and a clear objective of making nutritious food accessible to everyone. Unilever says that this aligns clearly with its own sustainable nutrition strategy and also with its commitment to sustainable growth.
Unilever Brazil president Fernando Fernandez said: “With Unilever’s expertise and distribution channels, we can both grow and scale Mãe Terra, helping to realise its mission of bringing healthy and nutritious food to even more people.
“This is perfectly aligned to Unilever’s commitment to sustainable nutrition and to provide consumers with food that tastes good, does good and doesn't cost the Earth.”
Post acquisition, which will depend on receipt of customary regulatory approvals, Unilever plans to retain the unique culture and vision of Mãe Terra while ensuring its ongoing success.
Mãe Terra CEO Alexandre Borges, who will stay on as general manager after the acquisition, said: “Unilever understands how preserving our purpose-driven culture is critical to the growth of our business and the popularity of our foods.
“It is uniquely placed to help us accelerate our mission to bring natural and organic food to more people in Brazil.”
Last month, Unilever entered into an agreement to sell its spreads business in South Africa to investment firm Remgro as part of a $900m worth deal.
