Japan’s Kameda Seika is divesting its US subsidiary, Mary’s Gone Crackers, to Dare Foods, a Canadian food manufacturer. This strategic move forms part of Kameda’s broader approach to navigate food and beverage industry trends and refocus its efforts on more promising avenues.
The transaction involves a debt-to-equity swap prior to transferring shares to Rosseau Incorporated, Dare’s US arm. Although the exact value of the deal remains undisclosed, Kameda indicated it comprises less than 15% of its consolidated net assets.
Kameda recognizes the US as a vital market for overseas expansion, where it operates Kameda USA and its affiliate, TH Foods. In 2012, Kameda acquired Mary’s Gone Crackers to enter the “better for you” segment in the food and drink business, concentrating on organic and gluten-free offerings. However, the brand encountered significant challenges, notably escalating raw material costs.
Located in Nevada, Mary’s Gone Crackers recorded a net profit of $784,000 in 2021. This figure, however, sharply declined into a net loss of $20.3 million in 2022, worsening to $22.2 million in 2023. Despite net sales reaching $35.5 million in 2021 and increasing to $38 million in 2022, figures dropped to $36.3 million in 2023.
While Mary’s Gone Crackers aimed to enhance production efficiency and introduce innovative products, Kameda Seika ultimately decided to realign its resources. “After reviewing our US strategy, we determined that concentrating resources on the growth of TH Foods would generate more effective synergies,” stated Kameda Seika.
Kameda’s foray into the US market dates back to 1989, when it formed a partnership with Sesmark Foods, now TH Foods, to produce rice crackers and snacks. Recently, in March, Kameda announced it would acquire the remaining 50% stake in TH Foods from Mitsubishi in a deal valued at $221 million.
Through this inorganic growth strategy, Kameda Seika not only seeks to enhance its presence in the food and drink consumer trends but also aims to revitalize its rice cracker offerings in the US market.
