Boulder Brands, which is best known for its heart-healthy Smart Balance brand, its plant-based Earth Balance brand and its Udis and Glutino gluten-free brands, recently signaled that it was looking for acquisition opportunities that address new ‘need states’ from meeting the needs of diabetics and pre-diabetics, to people looking for more appealing meat alternatives.
And Colorado-based Level Life Foods - a small company with sales approaching $1m - perfectly fits the bill, said Boulder Brands CEO Steve Hughes.
“We are very impressed with the experience and passion of the Level management team, led by Peter Noverr. Peter has more than 15 years of success in business start-ups and turnarounds such as EAS and Atkins Nutrition.
“His co-founder, Ethan Lewis, is a passionate and highly respected advocate in the diabetes community. Peter will become Vice President of Level and will immediately leverage the Boulder Brands` sales, marketing and supply chain teams to fast track the launch into bars and shakes."
An underserved market
Level Life Foods launched its first products, Level Life Glucose Gels, in September of 2012 for use primarily by emergency medical technicians and type 1 diabetics to help correct low blood sugar level events.
Following the acquisition, Boulder Brands will launch Level`s next line of products: bars and shakes designed to help control carbohydrates, support healthy blood sugar levels and help satisfy hunger for those managing carbohydrate and sugar intake, including consumers who may be pre-diabetic or who already have type 2 diabetes.
Diabetes is one of the largest and fastest growing need states in consumer foods today.
While there are 26 million diabetics and 80 million pre-diabetics in the US today, and products helping to manage this problem would appear to have huge commercial potential, the US market for foods and supplements that keep our blood glucose levels healthy has yet to set the world on fire.
However all this is about to change, claimed Hughes: “Diabetes is one of the largest and fastest growing need states in consumer foods today. However, it is an under-served market with few brands offering great tasting products with the optimal balance of sugar and carbohydrates.
“Level is market-ready and is currently launching four bars and four shakes. As with our other brands, category expansion opportunities are extensive, and we look forward to growing Level to a much larger brand in the future."
The rise and rise of Boulder Brands
Boulder Brands - which became the company’s official name in January - now has a dominant position in the fast-growing gluten-free market with the Udi’s and Glutino brands and a rapidly growing slice of the natural, plant-based foods pie with the Earth Balance brand.
2013 net sales are predicted to be in the region of $450 to $460m, with EBITDA in the $64 to $6m range.
Click here to read our recent interview with Steve Hughes.