Cerealto made a majority investment in Fresca Foods, a US co-manufacturer of natural and organic snacks – marking a major expansion into the US market and strengthening both companies’ capabilities in high-growth snacking segments.

Strategic highlights:

- Establishes a significant US manufacturing presence in the world’s leading snacking market, with North America expected to represent around 20% of future Group revenues.
- Enables immediate entry into the sizeable, fast-growing, US natural and organic snacking market, valued at $31.9 billion and projected to grow at 6.2% CAGR through 2033.
- Opens access to a broad US customer base, accelerating distribution and market penetration.
- Combines highly complementary product portfolios, strengthening category presence and expertise on both sides of the Atlantic.
- Accelerates the scaling of manufacturing and innovation platforms, providing even greater capability and support to a shared customer base.  - Partnership is led by Fresca Foods’ highly experienced US leadership team who remain shareholders and continue to manage day-to-day operations.
- Colorado-based Fresca Foods co-manufactures for a number of leading US and international brands, operating across five key categories: snack bars, granola, breakfast cereals, crackers and cookies. 

Fresca is renowned for its premium natural and organic products, rapid innovation, quality standards, and long-term customer partnerships. Fresca Foods now combines its best-in-class innovation expertise and proven ability to help US customers grow their businesses with Cerealto’s scale and experience across co-manufacturing and private label. With new investment and enhanced capabilities, the partnership is well-positioned to accelerate innovation and unlock significant opportunities across both regions.

Cerealto will have a controlling stake in the partnership, while the Fresca Foods leadership team retains a significant shareholding and continues to lead and manage day-to-day US operations.

Bosco Fonts, Cerealto CEO, said:

“Today’s announcement marks a defining step in our growth journey. Partnering with Fresca Foods’ leadership team gives us a strong foothold in the world’s largest snacking market, shifting our business from predominantly European to truly international. With around 20% of our sales set to come from the US through this partnership, this is a transformative step for Cerealto. The US organic snacking category is already valued at around $32 billion and is projected to grow at more than 6% annually, so this is a huge opportunity to expand our footprint globally.”

Todd Dutkin, Fresca Foods Chairman, said:

“We are thrilled to partner with Cerealto and continue leading our US business as both shareholders and management. This collaboration brings fresh investment and enhanced capabilities, enabling us to accelerate innovation and deliver a complete range of snacking solutions to customers across the US, Europe, the UK and beyond.”

Brandon Viar, Fresca Foods CEO, said:

“Together with Cerealto, we have the platform, expertise and shared ambition to accelerate growth as the leading co-manufacturing and private label snacking partner. We are truly excited for this next chapter in Fresca’s journey and the opportunities it will unlock for our team members, customers, and community.”

Following the transaction, North America will represent approximately c.20% of Cerealto’s total revenues.

1 – source: Grand View Research, US Snack Market Report 2024.