Intrepid Investment Bankers, a leading middle-market investment bank and the advisory arm of global financial group, MUFG, announced today that it acted as the exclusive financial advisor to Heartisan Foods on its sale to an affiliate of The Gellert Global Group, a leading importer, producer, and distributor of specialty foods.
A Leading Producer of Branded and Private Label Specialty Cheese
Heartisan Foods was formed in 2021 with the merging of cheese conversion company Barron County Cheese, the Red Apple Cheese brand, and direct-to-consumer brand Cheese Brothers. The platform was sponsored by Ronin Equity Partners and Landon Capital Partners.
Heartisan produces and markets branded and private label premium specialty cheese sold through leading U.S. grocery, mass and club retailers. The company combines best-in-class cheese conversion, smoking, flavoring and packaging capabilities with one of the fastest growing specialty cheese brands in the grocery and mass channels, Red Apple. The brand uniquely appeals to the masses while maintaining a premium positioning – bringing “masstige” to the specialty cheese subcategory. Inside its customers’ stores, Heartisan’s products are merchandised in the specialty cheese “island” in the deli section, where private label presence is limited. Specialty cheese, a subcategory of the $21B cheese category, is supported by consumer demand tailwinds including healthy snacking, high protein diets, in-home ‘eatertaining’ and interest in innovative flavors.
The Next Chapter
The combination of Heartisan Foods and The Gellert Global Group represents a significant transaction in the industry and further enhances the Company’s sales, marketing, procurement, and production capabilities. The Gellert Global Group currently imports specialty cheese from Europe, including the Mt Vikos brand, among others, and operates a cheese conversion facility in the U.S. The combined entity is an enviable specialty cheese platform poised for significant growth in various retail, private label / co-pack, and foodservice channels.
Why this Deal Matters
- Cheese is an increasingly attractive segment of the U.S. dairy industry, as consumers seek healthier snacking and ‘eatertainment’ options amidst a continued decline in liquid milk consumption
- Cheese producers with a combination of branded sales and private label / co-pack sales are sought after assets, given the growth of private label in several subcategories
- The ~$2.4 billion specialty cheese category is experiencing strong growth, particularly from brands embracing innovative, bold flavors