Ferrero’s purchase of Eat Natural expands its presence in the healthy snack market

With the recent purchase of British cereal bar manufacturer, Eat Natural, a change in the company’s product line is likely to appear on the horizon. Credit: Dhananjay Bhagat / Shutterstock.

Ferrero, which acquired Fox’s biscuits in October, is looking to expand its ‘overall footprint and product offerings into the healthier snacking market segment’, according to Ferrero’s Executive Chairman Giovanni Ferrero. With the recent purchase of British cereal bar manufacturer, Eat Natural, a change in the company’s product line is likely to appear on the horizon.

A key part of Eat Natural’s brand is represented by the unprocessed ingredients it uses to stand out from the likes of Alpen and NutriGrain, which are far more likely to be found in children’s lunch boxes due to their sweet flavours. Eat Natural said that its bars are made in small batches by hand and use common household ingredients. Themes around building authenticity and trust with consumers have helped the broader bakery and cereals market to remain resilient in the UK. Eat Natural similarly aligns with premiumisation, natural indulgence, and connoisseurship as the company is essentially highlighting its care and quality-assurance of each bar.

GlobalData’s Week 11 survey shows that 69% of consumers are buying the same quantities of bakery and cereals as they had before the pandemic struck. This is largely thanks to the ongoing purchases of snacks on occasions where Brits are taking their dog for a walk, for example. Furthermore, these buying habits haven’t changed much up until the end of 2020 as shown by GlobalData’s UK COVID-19 recovery survey. Compared to before the pandemic, respondents are still buying as many foods and drinks on-the-go, with a similar number of consumers buying more or less than before, and 69% buying the same quantities as before, while a further 15% are buying more. In terms of buying to consume outside the home, respondents who answered they were eating significantly less small snacks between meals outside outnumbered those eating significantly more by ten to one.

With the lack of commuters playing a substantial part in this sharp decline for on-the-go consumption, manufacturers will need to fish out consumers who are passing by convenience stores and pharmacies. Since much of Eat Natural’s products are sensibly located during the pandemic, generally found near shopping counters, a new strategy is needed to help reel in consumers who are enjoying niche snacks to maintain a healthy lifestyle. By promising customers that these snacks are perfectly suitable to enjoy at home or the gym with a more defined strategy that appeals to opportunist passers-by, Ferrero will certainly be able to compete with brands who have had lasting success this year with products targeted at gym-goers and recipe box subscribers.

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