ASX-listed plant-based snack brand Forbidden Foods announced it will acquire Australian non-dairy milk company Oat Milk Goodness (OMG) for $3.42 million.
Forbidden Foods said in a statement that it has executed a Share Purchase Agreement (SPA) to acquire 100 per cent of the issued capital of OMG.
OMG says its products take advantage of Australia’s abundant supply of natural oats and are also free of industrial seed oils such as canola, rapeseed, or sunflower oil, which can cause inflammation.
The company says its core oat milk product has already established strong traction among merchant customers in the café and barista industry.
Since launching, OMG has broadened its product range to include flavoured milks and ‘prOATein’ options and has expanded distribution through ranges in Woolworths and Ampol Foodary outlets.
“We are pleased to confirm this strategic acquisition with a company of OMG’s calibre,” said CEO of Forbidden Foods, Alex Aleksic. “The proposed transaction represents a unique opportunity to leverage the respective strengths of both companies and create an integrated multi-channel, health-focused products business serving domestic and international markets.
“Strategically, the Forbidden Foods Board and management team holds the view that OMG’s product suite specifically complements Forbidden Foods’ core range of Blue Dinosaur healthy snack foods, by adding a leading health-drink range in a fast-growing market.”
Aleksic added that both parties have identified synergy opportunities in the streamlining of sales and marketing departments and look forward to a shared growth strategy. He also said the transaction marked Forbidden Food’s first step in transitioning to a brand manager in the ‘better for you’ segment of the FMCG sector.
Oat Milk Goodness co-founder, Steve Smith, said that OMG had the potential to benefit from the agreement through access to capital markets and international expansion opportunities.
OMG says it is actively pursuing international expansion opportunities with an initial focus on India, where it hopes to take advantage of increased demand for health products among Indian consumers.
The OMG acquisition is the latest strategic initiative for Forbidden Foods, which earlier this year entered into a non-exclusive manufacturing alliance with Edenvale Foods to produce its Blue Dinosaur range of snack products. Edenvale Foods is a NSW-based contract manufacturer specialising in up-cycling farm seconds into nutrient dense ingredients for use in functional snack bars.
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