Kraft to Beat Nestle to 'Energy Bar' Acquisition Finish Line
BB Acquisition, Inc., a wholly-owned subsidiary of Kraft Foods Inc., announced Monday the successful completion of the cash tender offer made last month. (See related article).
Kraft already owns approximately 97% of Balance Bar's shares and will purchase the rest when the due diligence is complete, after which Balance Bar will become a wholly owned subsidiary of Kraft Foods. Kraft Foods and Balance Bar expect to consummate the merger as soon as practicable.
The announcement follows last week's announcement that Nestle USA Inc., would acquire PowerBar Inc., a nutrition bar business in the U.S., including its Canadian and European subsidiaries. (See related article).
For these "energy bars" to succeed as repositioned "nutrition bars" in the consumer market, they will need wider appeal beyond those athletes that believe they offer a better and more convenient "energy buzz" than conventional candy, fruits or other sweet goods. The marketers will also have to convince consumers the bars taste good.
Edited by Bob Sperber