Deliciously Ella Acquisition: Key Details, Impact, and What Comes Next

Hero Group's acquisition of Deliciously Ella marks a significant move in the plant-based food industry. This strategic partnership not only allows Hero Group to enter the UK snacking market but also provides Deliciously Ella with the resources to expand globally. Founders Ella and Matthew Mills will continue to lead the brand, ensuring continuity and growth.

What Is Deliciously Ella?

Founded in 2015, Deliciously Ella specializes in plant-based and vegan food products, including snacks, chocolate, savory items, and breakfast essentials. The brand also offers a membership service providing access to over 2,000 recipes, workouts, and wellness resources. Unique in its comprehensive approach to wellness, Deliciously Ella integrates movement, mindfulness, and sleep resources. The brand emphasizes community engagement through social media and newsletters, fostering a strong, supportive network.

Who Acquired Deliciously Ella?

Hero Group is a prominent player in the food industry, dedicated to providing natural and healthy food products. The company offers a diverse range of items, including Baby & Toddler Food, Baby & Toddler Milk, Healthy Snacks, and Natural Spreads. With operations spanning Europe, the Americas, Africa, and Asia, Hero Group is recognized for its commitment to preserving the goodness of nature. The company’s influence is further underscored by accolades such as Hero Spain being named a Top Employer in 2023 and 2024.

When Was Deliciously Ella Acquired?

Hero Group acquired Deliciously Ella on September 16, 2024. This acquisition aligns with the growing consumer demand for healthy, plant-based food options. The timing is significant as it follows a broader industry trend of major food companies acquiring successful niche brands to diversify their portfolios and meet evolving consumer preferences. This strategic move allows Hero Group to robustly enter the UK healthy snacks market and leverage Deliciously Ella's established reputation and customer base.

Why Was Deliciously Ella Acquired?

• Market Expansion: The acquisition will help Hero Group supercharge sales both in the UK and abroad. By entering the UK’s healthy snacks market, Hero Group can leverage Deliciously Ella's established reputation to reach millions more customers globally. Notably, Deliciously Ella is set to launch its best-selling Oat Bar range into national distribution in Whole Foods US.
• Technology Integration: Deliciously Ella's acquisition of its first food factory in 2023 allows Hero Group to benefit from in-house manufacturing capabilities. This integration supports efficient production and scalability, aligning with Hero Group's broader operational strategies.
• Competitive Advantage: The acquisition strengthens Hero Group's position against competitors by adding a rapidly growing, well-known plant-based brand to its portfolio. Deliciously Ella's strong social media presence, with over 4 million followers and a #1 recipe app with 1.4 million downloads, enhances Hero Group's market reach and brand visibility. Additionally, Hero Group's proven track record in scaling brands, such as the growth of the Organix brand, further solidifies its competitive edge.

Acquisition Terms

• Acquisition Price: The acquisition price has not been publicly disclosed.
• Payment Method: The payment method used in the transaction has not been specified.
• Key Conditions or Agreements:
  • The acquisition does not include the Plants brand or business, which will remain under the ownership of Ella and Matthew Mills.
  • Ella Mills and Matthew Mills will continue to lead the brand, with Matthew staying on as chief executive and Ella as "founder/brand ambassador."
  • Several team members from Deliciously Ella will join Hero Group to drive the brand's growth.
  • The deal includes the Deliciously Ella recipe app, its branded products, and its factory near Milton Keynes.
  • Seven Deliciously Ella employees will move to work for the Plants brand, while the remaining 70 will join Hero Group.

Impact on Deliciously Ella

The acquisition of Deliciously Ella by Hero Group brings notable changes to its operations and management. Founders Ella and Matthew Mills will continue to lead the brand, with Matthew remaining as chief executive and Ella as "founder/brand ambassador." This continuity ensures that the brand's vision and values remain intact. Additionally, 70 employees from Deliciously Ella will join Hero Group, while seven will transition to the Plants brand, which remains under the Millses' ownership. This strategic alignment aims to leverage Hero Group's resources to drive Deliciously Ella's growth, particularly in the US market.

Product offerings and services are set to expand significantly under Hero Group's ownership. Deliciously Ella will continue to innovate and introduce new products, including the national distribution of their popular Oat Bar range in Whole Foods US. The acquisition also includes the Deliciously Ella recipe app and its factory near Milton Keynes, ensuring seamless production and scalability. While specific employee and customer reactions are not detailed, the overall outlook is positive, with the potential to reach millions more customers globally. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.