Dutch-British transnational Unilever is acquire to Brazilian heritage organic brand Mãe Terra in a move that signals a deepening interest in organic (last month the company announced it had bought Pukka Herbs, and earlier in the year it acquired US organic condiments brand Sir Kensington’s).
Mãe Terra is a fast-growing and well-loved brand in Brazil, providing health-conscious consumers with organic and nutritious food products since it was set up in 1979. The company’s vision is “to democratise natural and organic food by taking care of people and planet”.
Mãe Terra operates in several categories with a portfolio that includes organic cereals, cookies, snacks and culinary products. The main Mãe Terra categories represent a Brazilian market worth more than €8 billion (Euromonitor).
Growing at over 30% per year, Mãe Terra has a strong brand equity and a clear purpose of making nutritious food accessible to all. Unilever says this makes it a good fit with its own sustainable development strategy.
Globally, the healthy foods trend is gaining relevance fast. Brazil is the fifth largest market in the world for healthy food and beverages, with 79% of consumers regarding health and nutrition as priorities.
“Unilever understands how preserving our purpose-driven culture is critical to the growth of our business and the popularity of our foods”
Fernando Fernandez, president of Unilever Brazil, said: “We are excited about this acquisition. Mãe Terra has a great following in Brazil and strengthens our food portfolio, allowing us to accelerate our expansion in the high-growth naturals and organic segment. With Unilever’s expertise and distribution channels, we can both grow and scale Mãe Terra, helping to realise its mission of bringing healthy and nutritious food to even more people. This is perfectly aligned to Unilever’s commitment to sustainable nutrition and to provide consumers with food that tastes good, does good and doesn’t cost the Earth.”
Alexandre Borges, CEO of Mãe Terra, said: “Unilever understands how preserving our purpose-driven culture is critical to the growth of our business and the popularity of our foods. It is uniquely placed to help us accelerate our mission to bring natural and organic food to more people in Brazil.”
Unilever says it will manage Mãe Terra “to ensure its unique culture and vision is preserved while ensuring its ongoing success.” Alexandre Borges will stay on as General Manager.
Terms of the deal were not disclosed. The transaction is subject to customary regulatory approvals.