US confectionery giant Hershey has bought the Irish founder of Fulfil Nutrition out of their joint venture selling the protein bars in North America.
Updating investors recently on its quarterly figures, Hershey said that it had taken the opportunity to acquire the Fulfil brand in North America where it has operated a joint venture with Barry Connolly since 2020.
The acquisition triggers a second substantial pay-day for the Irish businessman from the Fulfil Nutrition business he cofounded less than a decade ago.
“Fulfil is now the largest and fastest growing brand in the protein and energy bar segment in Europe. The brand performs better than most competitors in terms of overall product liking, and has tremendous upside, both in the US and internationally,” Hershey chief executive Michele Buck said.
Mr Connolly cofounded Fulfil Nutrition in 2016 and was the majority shareholder when it was sold in April 2022 to Swiss confectionery giant Ferrero for a reported €160 million in cash.
Hershey, which had bought into Fulfil in 2019, and Mr Connolly retained control of the brand in North America through a joint venture after the Ferrero deal. Mr Connolly has retained majority control of that unit although there was provision for Hershey to grow its share over time subject to hitting certain growth targets
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Speaking in 2023 when he was named The Irish Times Business Person of the Year, Mr Connolly said he expected that, within 12 to 18 months, the brand in North America could match the €40 million in revenue the wider group had at the time of the Ferrero deal “and could have the potential to grow an awful lot higher”.
“I’m not in any hurry to sell,” he said at that time.
Industry sources say that the market for protein bars across North America – covering the United States, Canada and Mexico – has been growing at over 5 per cent since the joint venture started targeting the market, to around $5.6 billion (€4.8 billion) last year. Of that, the United States accounts for around 70 per cent.
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Deals in the sector could expect to achieve roughly four times current sales, according to industry analysts.
At Mr Connolly’s projections, that would put a €160 million value on the joint venture and a pay-day for him in excess of €80 million – on top of his €80-€100 million share of the Ferrero deal for the rest of the business.
People familiar with the US snacks market say that, though Fulfil has been successful in North America, sales might be more modest than those 2023 projections with Mr Connolly receiving a figure closer to €55 million.
At the time of its initial investment in the Irish business, Hershey said Fulfil “plays a strategic role in our expanding North American snacking strategy”.
Hershey has not given any update on the specific performance of the Fulfil brand, which has been distributed since 2020 in North America by the One Brands, the protein bars group it paid almost $400 million for a month after the Fulfil investment.
Hershey chief financial officer Steve Voskuil said the impact to the group’s full-year outlook from its acquisition of the Fulfil brand would be immaterial.
[ Barry Connolly wins Irish Times Business Person of the YearOpens in new window ]
Mr Connolly has a long and impressive CV. He brought Red Bull to Ireland, among a range of high-profile drinks and snacks brands, through his Richmond Marketing group, as well as Heelys children’s roller-shoes.
Fulfil was originally developed as a “better-for-you” snack for the general retail market after Mr Connolly noticed that most products in the category were focused on the gym market.
Mr Connolly and Hershey were both contacted for comment on this story.
