Global healthcare and wellness group Otsuka Pharmaceuticals has agreed to acquire Canadian plant-based food innovator and producer, Daiya Foods, for an impressive C$405M (US$325.5 million.)

Otsuka Group operates on a global scale and in the U.S. and Canadian markets where it produces “…new products for better health worldwide,” including the popular Nature Made vitamin line. The acquisition of Daiya will greatly broaden the group’s product offerings to include a new category of plant based foods and products.

“We are excited to welcome Daiya to Otsuka group,” said Tatsuo Higuchi, president and representative director of Otsuka. “Driven by a highly talented management team, Daiya has developed a portfolio of high-quality, unique plant-based nutrition products and built a strong brand with loyal customers. We believe this will be an important pillar for our nutraceutical business. With our shared values, vision and mission, together we will commit to the better wellness of people worldwide.”

Since launching in 2008, Daiya has rapidly built a reputation as a leader in the plant-based. gluten-free, soy-free food space beginning with cheese alternatives. Today the company’s product portfolio includes Greek yogurt alternatives, pizzas using alternative cheeses, cheesecake alternatives, mac and cheese alternatives, dairy-free dressings, and alternative cheese sauces that are being sold in more than 25,000 U.S. grocery and natural food stores including Whole Foods, Kroger, Safeway, and Publix, and in Australia, Sweden, Mexico, Hong Kong and elsewhere.

Rising consumer adoption has prompted this rapid growth, which has generated sales of C$80 million (US$64 million) last year, while the company is projecting sales in excess of C$100 million (US$80 million) this year.

“It’s become clear from the recent growth of the company – that’s been nothing short of extraordinary – that we now have a much much bigger opportunity to play a leadership role in the plant-based food movement,” Terry Tierney, CEO Daiya Foods, told Dairy Reporter.

Tierney also told Dairy Reporter that for Daiya to reach its full potential, it needed more than capital, but also a partner that had the resources to facilitate a truly global expansion of the brand. With consolidated sales of US$10.3 billion last year, and numerous worldwide manufacturing and distribution sites with 45,000 employees, not to mention pharmaceutical-grade equipment in place for better product development, Otsuka is a perfect partner to help Daiya realize this potential.

“Joining the Otsuka family is an honor for all of us at Daiya. With aligned values and vision, Daiya and Otsuka have a tremendous opportunity to bring the incredible benefits of a plant-forward lifestyle to people around the world,” explained Tierney.

“Our footprint is small compared to what it could be in the next few years with Otsuka,” Tierney told Dairy Reporter. “This is the perfect combination of opportunity and resources, a beautiful marriage between these two companies.”

The deal, which is expected to close by September 30, 2017, has already received approval from the Daiya board, however the transaction is to be put into effect through a “plan of arrangement” – a system by which under the British Columbia Business Corporations Act, a company acquisition comes into effect upon the approval of the Daiya shareholders and the British Columbia court.

 

-Lynda Kiernan

Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.