Second Nature Brands: a blend of size, creativity, and quickness
With the launch of Second Nature Brands, a merger of Sanders Chocolates, Second Nature Snacks, and Kar’s Nuts—all of which were operating under the same name—three brands are merging into a single platform company. Using the Second Nature Brand platform, management intends to strengthen the company’s position in the expanding snack market and spur innovation.
Chief executive officer Victor Mehren stated, “These businesses have grown significantly over the last several years, and we see many opportunities for expanding our new platform through brand innovation, strategic investments, and acquisitions.” “Our market-leading brands are poised for accelerated growth under the Second Nature Brands umbrella.”
In October 2019, Mr. Mehren became the company’s leader. He had spent seventeen years working at Mars Wrigley Confectionery before coming to work at Kar’s.
As he walked in the door, he stated that although he wasn’t sure how it would be constructed, he believed that such a platform was necessary.
“With the new platform, we can communicate with our partners, stakeholders, and team members more effectively and better express who we are,” Mr. Mehren stated. “Anytime something becomes more accessible, it gains momentum. The moniker Second Nature more accurately sums up our current activities.
The Kar’s Nuts company was established in 1933, while Sanders Chocolates was established in 1875. According to Mr. Mehren, Second Nature Brands should strike a balance between its size, tradition, and the requirement to remain flexible in terms of innovation and acquisitions.
“We’re leveraging the advantages of a high-scale business with deep supply chain and operations excellence and balancing it with a front-end that is more like an emerging brand,” he said, referring to companies that have been in business for a century. “We believe that sets us apart in the industry.”
Strong positions in retail, vending, and, more recently, direct-to-consumer (DTC) e-commerce are all part of that front end.
Mr. Mehren declared, “We intend to double-down on the shift to DTC consumption.” As Second Nature only debuted this past Friday, February 19, Sanders already had a DTC company, so it’s relatively new. We believe that this will grow to be a crucial aspect of our company.
The majority of Second Nature Brands’ product line is focused on snacks; it includes nut mixes, single-nut packs, and confections like cakes, caramels, and chocolate toppings. The company runs two production facilities in the Detroit area and employs about 350 people.
According to Mr. Mehren, innovation is a top priority for the reorganized company.
“In the upcoming years, we will greatly increase our capacity as we allocate more than 50% of our resources to innovation, new product development, and production infrastructure,” he stated. “We are investing heavily in exciting new products and formulations, which we expect to account for a significant amount of revenues in the coming years, even as we expect our core product lines to continue growing.”
The company plans to launch over 25 new products in 2021, both through retail and direct consumer e-commerce channels. Sanders sea salt caramel thins, Sanders organic dairy-free sea salt caramels, and Second Nature Smart Mixes are among the new products. According to the company, Kar’s Nuts will also launch Kar’s Snack Max line, a savory, flavor-forward better snack mix.
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Additionally, Second Nature has started building an innovation center at the Clinton Township, Michigan, location of Sanders Chocolates. Functions for consumer testing and recipe development will be housed in the new facility.
Acquisitions is another thing that Mr. Mehren thinks about a lot.
He declared, “We very much will stay focused on treats and snacks.” We’re considering new companies that have subcategories, formats, or capabilities that we don’t currently have. However, they must be compatible with our platforms.
The company has expanded its experience in the snack industry and developing brands by appointing Edmond Sanctis as its new chairman of the board. 2014 saw the sale of Sahale Snacks, Inc., a manufacturer of nut and fruit mixes, to The J.M. Smucker Co. Mr. Sanctis served as co-founder, CEO, and chairman of the company.
Mr. Sanctis stated, “We see tremendous opportunity to accelerate the growth of our brands and expand the Second Nature Brand’s platform.” This business is ideally situated in the rapidly expanding snack and treat market, which increasingly mirrors the dietary and lifestyle preferences of modern consumers. We see a big window of opportunity to enter this expanding market with cutting-edge products.