Paramaus, NJ-based Smart Balance, Inc.’s quest to create heart healthy products that taste great began with its eponymous butter alternative and has since evolved to include enhanced milks, peanut butter, microwave popcorn, cooking oil, mayonnaise dressing, non-stick cooking spray and cheese—all formulated with the same idea of avoiding trans fats naturally, balancing fats and/or reducing saturated fats, total fat and cholesterol, using ingredients that consumers may be missing in their diets. The company’s recent acquisition of Laval, Quebec-based Glutino Food Group could help Smart Balance extend message of heart health to a new consumer group: the gluten intolerant.  

The acquisition entailed Smart Balance, Inc. acquiring 100% of the equity interest of Importations DE-RO-MA which owns Glutino Food Group from Claridge, a Montreal-based investment firm. Smart Balance spent a reported $66 million to bring Glutino into its stable of brands, which currently includes Smart Balance, Earth Balance and Bestlife, all of which market to healthy foods and/or lifestyle products.
 
Formed in 1983, Glutino is the number one selling brand in the gluten-free foods segment. It currently markets a wide range of premium priced gluten free foods including shelf-stable and frozen gluten-free products, including snack foods, frozen baked goods, frozen entrees and baking mixes sold under the Glutino and Gluten Free Pantry brand names. The products are not only sold in natural and organic retail venues, but also nationwide in local supermarkets. Glutino had annual sales of $54 million during its fiscal year which ended March 31, 2011.
 
“We are truly excited about adding the Glutino Food Group to our portfolio of health and wellness brands,” commented Stephen Hughes, chairman and CEO of Smart Balance. “Glutino has increased its sales approximately 30% annually over the past three years, and we are confident about its growth prospects and contribution to Smart Balance.”
 
In comments provided to Nutraceuticals World, Mr. Hughes that he looked forward to the way the Glutino brand addition would broaden and enrich Smart Balance’s existing category presence. “We think our four brands give us plenty to build on—but Glutino is in a number of product categories that could make sense for Smart Balance, Earth Balance [and] BestLife,” he said, noting that Glutino adds a “gluten free need state” to the company’s existing health and wellness solution model, which will continue to focus on heart health, weight management and the promotion of a plant based diet.

“The demand for gluten-free products is significant, and is now a category of over $2 billion in retail sales,” said Mr. Hughes. “We are bullish on the continuation of the category’s 10% compound annual growth rate due to increased awareness and diagnosis of gluten-induced ailments, including celiac disease, gluten intolerance and wheat allergies.”

Furthermore, Mr. Hughes stated, “The gluten-free segment is complementary with our corporate vision of creating a health and wellness innovation platform that builds brands targeted at highly motivated consumer need states. Just as our Smart Balance, Earth Balance and Bestlife brands address the health and wellness needs of consumers; Glutino addresses a specific dietary need by eliminating gluten in foods that consumers have to avoid for health reasons. Dedication to providing high-quality and great tasting products has enabled the company to pioneer and shape the gluten-free category. This has created a strong consumer following and established Glutino as the preeminent gluten-free brand.”

Mr. Hughes went on to express his admiration for the Glutino management team, led by Terence Dalton, general manager, and said he believed the complementary skill sets of both the Glutino and Smart Balance teams would contribute to improving the performance of both companies. “Both companies have similar missions and values,” he said. “Through this combination, we believe Smart Balance’s core competencies in sales, marketing and product development will help Glutino realize its growth potential, ultimately creating long-term value for our shareholders, and exciting opportunities for our new and existing employees.”