- Wells Enterprises, which owns Blue Bunny ice cream and different frozen treats, is buying the Halo Prime model from Eden Creamery for an undisclosed quantity. The deal is anticipated to be accomplished this month.
- Halo Prime Founder and CEO Justin Woolverton stated in a launch that Wells’ long-time operational and managerial experience “will help Halo Top become an even better product and stronger brand.” Wells, based in 1913, stated it’s the No. 2 ice cream producer within the U.S.
- Mike Wells, CEO of Wells Enterprises, referred to as Halo Prime a very good match for the corporate’s portfolio. As a part of the acquisition, Wells will even license the Halo Prime model exterior the U.S. and Canada to a brand new firm that will likely be operated by Halo Prime President and COO Doug Bouton.
Whereas Eden Creamery was reportedly trying to promote Halo Prime for the previous couple of years — probably for as a lot as $2 billion — Halo Prime’s CEO confirmed little curiosity within the model getting acquired by a multinational CPG firm like Unilever, Basic Mills or Nestlé. However Woolverton indicated within the launch that Wells had succeeded the place others might have failed by the way in which the privately held, family-owned firm does enterprise.
“We really feel that it is essential that we keep genuine to our followers, and rolling up beneath a multinational company would stifle our voice. It will change who we’re,” Woolverton informed Meals Dive in late 2017.
Halo Prime’s affect within the ice cream market has compelled huge manufacturers to alter their technique. Unilever’s Breyers model responded to Halo Prime’s reputation by launching a low-calorie, high-protein line referred to as “Breyers delights” in 2017 that includes labeling and packaging just like Halo Prime. However Breyers nonetheless misplaced 1.5 share factors to Halo Prime that yr. Unilever adopted up in 2018 with low-fat, low-calorie merchandise from its Ben & Jerry’s model and, extra just lately, with its Tradition Republick line of probiotic ice cream.
This acquisition is not Wells Enterprises’ first foray into the sunshine ice cream house. Final yr, the corporate launched Chilly Cow, which has 55% much less energy, 70% much less fats and 60% much less sugar than common ice cream. However Wells will now have a bonus within the class with Halo Prime in its portfolio. The model appeared to come back out of nowhere in 2012 and have become the nation’s top-selling pint by 2017, touting its low sugar content material, excessive protein stage and easy packaging strategy of displaying the energy on the entrance of the container.
It’s unclear how a lot Wells is paying for Halo Prime, however the Iowa firm appears to be on an acquisition spree with a purpose to turn into the nation’s main ice cream maker. Wells additionally acquired Fieldbrook Meals in April, which gave the corporate ice cream vegetation in New York and New Jersey and hiked its manufacturing capability by 25%. Wells informed the Sioux Metropolis Journal the deal allowed the corporate to knock Nestlé out of the No. 2 spot for manufacturing, and that changing Unilever as No. 1 was doable in the event that they had been to develop one other 20%.
Halo Prime often is the ticket that delivers for Wells, so long as gross sales for each firms proceed apace. Wells informed the Sioux Metropolis Journal that 2018 was a banner yr, with the corporate posting the biggest gross sales development in its 106-year historical past. Moreover Blue Bunny, Wells makes Bomb Pop, Blue Ribbon Classics and Chilly Cow and has a private-label and co-pack enterprise with 5 manufacturing amenities.
After a number of years of more and more spectacular efficiency, competitors dropped Halo Prime’s U.S. retail gross sales by 6.4% to $329 million from 2017 to 2018, in response to IRI figures cited by the Monetary Occasions. Nonetheless, items bought elevated 4% throughout that very same interval to $77.5 million.
With Wells’ increasing manufacturing capability, advertising and marketing experience and enough curiosity in seeing the Halo Prime model develop, this acquisition may probably assist Wells to get nearer to beating out Unilever for the No. 1 spot as the highest ice cream producer within the U.S.