Sovos Brands, a food company backed by global private equity firm Advent International, announced that it has signed an agreement to acquire the business of Birch Benders, LLC, a fast-growing producer of delicious, better-for-you Pancake and Waffle Mixes, Toaster Waffles, and Pancake and Baking Cups. The acquisition deepens Sovos Brands' role in the breakfast and snacking categories and represents a significant step in the company's mission to acquire and build one-of-a-kind brands that bring consumers food for joyful living. The transaction is expected to be completed by the end of October.
The acquisition will add a fourth brand to the Sovos portfolio, which also includes Rao's, a line of pasta sauces, soups, frozen entrées and dry pasta; noosa yoghurt; and Michael Angelo's frozen entrées. Since Sovos' acquisition of these brands, Sovos has consistently delivered double-digit sales growth while expanding profit margins. With the Birch Benders acquisition, Sovos' annual retail sales will be above $750 million.
Upon the addition of the Birch Benders brand to the Sovos portfolio, Sovos will now play in seven large food categories – sauces, yogurt, frozen entrées, pancake & waffle mixes, frozen waffles, soups and dry pasta. The acquisition diversifies the company's consumer base by strengthening its presence in the breakfast and snacking categories, and bolsters the company's ambitions to participate in more food occasions.
Based in Denver, Birch Benders was founded in 2011 by Matt LaCasse and Lizzi Ackerman, who set out to fill a gap in the center store by creating an easy-to-make, restaurant-quality pancake mix that was delicious and nutritious. Known for high-quality ingredients and bringing food freedom to guilt-inducing categories, Birch Benders has since expanded its portfolio beyond pancake and waffle mix to toaster waffles, as well as pancake and baking cups, and is now one of the largest independent brands in its categories. Their clean, simple ingredient profile resonates with consumers and is aligned with key market trends. Birch Benders prides itself in providing products that taste delicious and are for all to enjoy, including organic, plant-based, non-GMO, protein, paleo, and keto alternatives.