In a bid to counter cost inflation, Kraft Heinz Company (NASDAQ:KHC) has been driving growth through strategic acquisitions. The company's recent purchases have been focused on enhancing its International Taste Elevation platform and expanding its presence in emerging markets.
Earlier this week, KHC announced the acquisition of Hemmer, a move that builds upon its previous purchase of Just Spices GmbH. The latter acquisition was aimed at boosting the company's direct-to-consumer operations and furthering market expansion.
This acquisition-led growth strategy is not unique to KHC. Other companies in the sector have also been fortifying their product offerings and revenues through similar tactics. Hershey Co . (NYSE:NYSE:HSY) has expanded its portfolio through acquisitions like Weaver Popcorn Manufacturing facilities and Dot's Pretzels LLC.
Hormel Foods Corporation (NYSE:NYSE:HRL) has also strengthened its business by buying into PT Garudafood Putra Putri Jaya Tbk and acquiring KHC's Planters snacking portfolio. McCormick & Company, Incorporated (NYSE:NYSE:MKC) has grown through acquisitions such as FONA International, LLC and the parent company of Cholula Hot Sauce.
These acquisitions highlight the current trend within the food industry of companies seeking to expand their product portfolios and market presence. This strategy appears to be a response to rising costs, with companies looking to bolster their operations and revenues in order to mitigate the impact of inflation.
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