Nestlé USA acquires plant-based food company Sweet Earth

With the plant-based foods market expected to reach US$5 billion by 2020, Nestlé USA has entered into this segment by agreeing to acquire plant-based food manufacturer Sweet Earth.

Founded in 2011 by Kelly and Brian Swette, Sweet Earth has provided its frozen meals, burritos, breakfast sandwiches and plant-based burgers to over 10,000 stores, including Whole Foods, Target, Kroger and Walmart.

Its plant-based substitutes not only address the fundamental shift towards healthier foods, they are also more sustainable and produce a significantly smaller carbon footprint than animal-based products.

“In the United States, we’re experiencing a consumer shift toward plant-based proteins. In fact, as many as 50% of consumers now are seeking more plant-based foods in their diet and 40% are open to reducing their traditional meat consumption,” said Paul Grimwood, Nestlé USA chairman and CEO.

Currently manufactured in a 3700 m² facility in Moss Landing, some of Sweet Earth’s products include proteins such as tofu, legumes like lentils, chickpeas and beans. Its meals span a range of cuisines, with examples including General Tso’s Tofu and the Curry Tiger Burrito.

“One of Nestlé’s strategic priorities is to build out our portfolio of vegetarian and flexitarian choices in line with modern health trends. With unique and nutritious food for all times of the day, Sweet Earth gives Nestlé a leading position in this emerging space,” explained Grimwood.

This acquisition allows Nestlé to build on its vegetarian choices and healthy products — and with the backing of the multinational corporation, Sweet Earth can expand its portfolio using the former’s increased manufacturing and distribution capabilities. Its founders will continue to run the company with support from Nestlé USA’s Food Division.

“Our products meet the demands of flavour-forward consumers who want more plant-based foods, especially millennials who want convenient, real food and flexitarians who are looking to include more vegetables and plant-based proteins in their diet,” said Kelly Swette, Sweet Earth CEO. “Nestlé’s acquisition validates what forward-thinking consumers and retailers have been demanding for a while — more wholesome and sustainable choices.”

The deal comes shortly after Nestlé took an equity stake in Freshly, a direct-to-consumer delivery service — another example that indicates the company is evolving to suit customer demands.