Meadow said the acquisition would allow it to expand its portfolio into new product areas while enabling customers to “benefit from the many synergies between the businesses”, including product knowledge and manufacturing expertise.
The purchase follows Meadow’s acquisition of decorations, topping and inclusions firm Nimbus Foods at the end of 2019 from ambient food group Valeo Foods.
Entering the sweet sauces category
Commenting on the purchase, Meadow chief executive Raj Tugnait said: “For some time our customers have been urging us to enter the sweet sauce category. It is an adjacent category and a natural extension to what we already do.
“There is a gap in the market for an agile player who can develop, scale-up and manufacture fruit preparations and Naked Foods has an enviable reputation for its quality and nimbleness.
“The team and culture felt right to be part of the Meadow family. Adding sweet sauces allows us to further diversify our portfolio and strengthen our position as a leading supplier of quality food ingredients.”
Three-pronged plan for growth
Tugnait described a three-pronged growth plan for Meadow following the acquisition: organic – growing with its existing customers and in existing categories; inorganic – building new capabilities in house; and finally acquiring quality businesses that will compliment Meadow and make it a better proposition for its customers.
Established in 2003, Naked Foods produces a wide range of fruit and confectionery sauces for UK and Irish food companies from its BRC A* grade factory in Kent.
The company provides more than 300 recipes and several thousand tonnes of sauces each year. The products include fruit preps for yogurts, dairy drinks, ice cream and plant-based products, as well as sweet and confectionery fillings for bakery and dessert products.
Meadow will support the Naked Foods team to accelerate their own growth plan.
Meanwhile, Sheffield-based brewer True North Brew Co has been bought out of administration by Cocktails and Craft Beers Ltd, safeguarding about 325 jobs.