Diamond Foods Inc. said Thursday it has agreed to acquire Kettle Foods from Lion Capital LLP for $615 million, a move that gives the snack-nuts producer a much bigger bite of the premium potato-chip market.
*Sold for approximately 2.5 times sales.
![[Spiceherd-cht]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_sT2hdxxtKewt-YCqSUu88JfOUGLwZuUWD8mXFfIwxdDsYWCc5n3Za7FlfuK6zoH44koc7u1cX4UMkbpV1kv4H69OqYDbThi3KdN5vCD9vaZoOKTTgorCfghEwbU5_ueS9jE26HfvHwrBX57Tl7tZrKbOk=s0-d)
Private label is growing in dollar sales in the United States. When consumers need to do some belt tightening they look to store brands (Typically lower priced, there are some premium PL brands that sell at higher price points).
A strong brand differentiation is a solid strategy to neutralize consumer private label substitution.
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