Large Food Corporations Look for Digital Commerce Strength in Acquisition Targets

The recent acquisition of RXBAR by Kellogg's was a strong signal that large food corporations are making a shift towards natural, better-for-you food lines and they're doing it by acquisition. RXBAR is a protein bar company based in Chicago marketed as a clean and wholesome snack. The bar also appeals to a younger demographic.

RXBAR is an excellent strategic fit for Kellogg as we pivot to growth,” he added. “With its strong Millennial consumption and diversified channel presence including e-commerce, RXBAR is perfectly positioned to perform well against future food trends.
— USA Today - October 6, 2017

Steve Cahillane, Kellogg's CEO, states in the quote above from USA Today that a digital commerce strategy, whether e-commerce or m-commerce, was an important factor in their decision to acquire RXBAR. An interest in a diversified channel presence indicates that being on a store shelf is not enough. Kellogg's sees a future in digital commerce for food and they want the natural brand companies they purchase to have developed a digital sales channel.

This is due in part to the increased usage by millennials of mobile phones for shopping and the need to create access to brands beyond the major retailers. Kellogg's mentions that as they "pivot" for growth, they want to bring on brands that have this strategic fit.

Many local food makers are seeing the demand for digital sales increase as well. Treatmo has been instrumental in building a digital presence for several local brands by providing a mobile commerce platform that allows them to set up a store in 10 minutes, sell by mobile phone, and increase the discovery of their products among millennial shoppers especially as  mainstream America's digital shopping habits shift from physical to digital retail. With the digital commerce strategy offered by Treatmo, many brands quickly increase their attractiveness in the eyes of the major food companies.

Learn more about selling on Treatmo.