Danone Buys U.S. Organic Formula Maker Kate Farms

Danone has announced that it has agreed to acquire a majority stake in Kate Farms, a U.S.-based maker of plant-based organic nutritional drinks.

French food giant Danone has three main fast-growing categories: Essential Dairy and Plant-based products, Waters, and Specialized Nutrition. I Photo: Danome Facebook

The French food giant plans to integrate the acquisition into its specialized nutrition portfolio, Reuters' Abigail Summerville reported.

Founded in 2012 by Richard and Michelle Laver in Santa Barbara, California, Kate Farms produces medical nutrition shakes and tube-feeding formulas designed for people with serious health conditions.

The company was inspired by their daughter Kate, who has cerebral palsy and had difficulty eating.

“Our view is that Kate Farms is highly complementary to our specialized nutrition offerings,” said Shane Grant, Danone Group Deputy CEO.

“We believe this will help us reach more consumers and patients, and bring a new high-quality standard of care to people with a broader range of health needs. It’s a really important build for us in the U.S.”

Kate Farms products are sold nationwide in hospitals and directly to consumers.