Information on the Target

On June 28, 2024, Onoré, an international group with revenue exceeding €200 million, announced its acquisition of So Mochi, a French specialist in mochi. Founded in 2017 in La Ciotat by entrepreneurs Julien Biondo and Jonathan Stioui, So Mochi has quickly established itself as a premium brand in the mochi market. The company uniquely blends French artisanal ice cream expertise with traditional Asian rice paste craftsmanship, positioning itself among the top five players in its segment across France and Europe.

So Mochi is dedicated to product excellence, ensuring all flavors are free from artificial colors. Most of its offerings are gluten-free, with a wide vegan selection, all while sourcing raw materials from local suppliers. The company boasts a remarkable production capacity of over 70,000 mochis daily, marketed under two brands: “Mochiri,” targeting HORECA (Hotels, Restaurants, and Cafés) customers, and “La Compagnie du Mochi,” catering to the retail market.

Industry Overview in France

The specialty food industry in France has been thriving, powered by a growing consumer preference for high-quality, artisanal products. As consumers seek more diverse and authentic flavor experiences, the market for exotic frozen products like mochi has been expanding rapidly. The French culinary landscape is characterized by a long-standing appreciation for gourmet food, making it an appealing arena for innovative products.

French consumers increasingly value authenticity and craftsmanship, steering demand towards brands that prioritize quality and traditional methods. The success of companies like So Mochi indicates a shift in consumer tastes towards unique and culturally rich products. The fusion of different culinary traditions, particularly French and Asian, is particularly well-received.

As the HORECA sector continues to recover post-pandemic, premium products are experiencing a resurgence. Chefs and restaurateurs are keen to incorporate innovative items like mochi into their offerings to attract discerning customers. This presents significant growth opportunities for brands that can deliver high-quality specialty foods.

The frozen desserts segment is also witnessing enhancements in distribution channels and growing popularity areas, expanding the reach of products like mochi beyond traditional settings into mainstream retail and international markets.

The Rationale Behind the Deal

This acquisition aligns strategically with Onoré’s mission to expand its high-end specialty food portfolio. By integrating So Mochi, Onoré significantly enhances its product offerings, appealing to discerning consumers looking for intense, exotic flavors. The mochi market is burgeoning, making this acquisition a timely venture into a rapidly growing category.

Furthermore, the partnership is poised to reinforce Onoré's existing distribution channels and international networks, leveraging So Mochi’s strong presence in the sector. Adding a brand recognized for its high-quality and innovative mochi products will diversify Onoré's portfolio and attract a larger customer base willing to embrace unique culinary experiences.

Information about the Investor

Onoré is an established market player specializing in high-end specialty foods with a focus on pastries and frozen snacks. The group has achieved significant financial success, recording over €200 million in revenue with production facilities in both France and the UK. Under the guidance of Waterland Private Equity, Onoré has been strategically acquiring brands that reflect its commitment to craftsmanship and quality.

With previous acquisitions, including those of Mag’M, Proper Cornish, and Cakesmiths, Onoré has demonstrated its ability to effectively integrate and grow its brands. The company's strategy is aimed at meeting the evolving preferences of consumers seeking authenticity in their food choices, further solidifying its position in the gourmet food sector.

View of Dealert

The acquisition of So Mochi by Onoré is likely to be a strong investment, considering the rising trend toward premium and exotic food products. By adding a solid brand like So Mochi to its repertoire, Onoré positions itself favorably to cater to an increasingly discerning clientele eager for unique flavor experiences.

The growing popularity of mochi as a culinary favorite among consumers speaks to the timely nature of this acquisition. As more consumers venture into international cuisines, So Mochi’s innovative flavors and quality align with this trend, providing Onoré with a competitive edge.

Moreover, the complementary nature of Onoré and So Mochi's operations will likely yield synergies in marketing and distribution, enhancing the overall effectiveness of both brands. The strategic integration supported by Waterland should allow for sustainable growth and elevate the profile of Onoré in the high-end specialty food market.

In summary, this acquisition not only strengthens Onoré’s product line but also reinforces its commitment to delivering authentic culinary experiences. Given these factors, this deal has strong potential for success and sustainability in an evolving market landscape.

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