Forbidden Foods completes acquisition of Oat Milk Goodness, eyes global expansion

In a significant move for the non-dairy industry, Forbidden Foods Limited has successfully completed the acquisition of Oat Milk Goodness, marking a pivotal step in the company’s aggressive expansion strategy. The acquisition, confirmed on September 27, 2024, follows the approval at the company’s Extraordinary General Meeting on September 20, 2024, where shareholders overwhelmingly supported the transaction.

This acquisition positions Forbidden Foods, a health and wellness company specializing in plant-based beverages and snacks, as a serious player in the burgeoning oat milk market. Oat Milk Goodness, co-founded by Australian cricketer Steve Smith, has been making waves with its seed oil-free formula that sets it apart in a competitive sector. Since its launch, OMG has established strong partnerships with Australian retailers and is already eyeing international markets, including India, a region with increasing demand for plant-based and health-focused products.

The all-scrip deal, valued at AUD $3.42 million, will see 285 million new ordinary shares of Forbidden Foods issued to Oat Milk Goodness shareholders. According to Forbidden Foods’ CEO, Alex Aleksic, this deal is just the beginning of a broader strategy aimed at transforming Forbidden Foods into a global leader in the ‘Better for You’ fast-moving consumer goods sector.

Forbidden Foods’ strategic acquisition aligns with growing consumer trends toward healthier, more sustainable products. OMG’s innovative approach—leveraging Australia‘s vast supply of oats while avoiding inflammatory industrial seed oils—has resonated with health-conscious consumers. Already available in Woolworths and Ampol Foodery, OMG has quickly expanded its footprint, particularly in the café and barista industry.

Key Integrations to Accelerate Growth

The immediate focus post-acquisition is on streamlining logistics and supply chain management between the two companies to enhance operational efficiencies. Both parties have already begun integrating back-office processes, which include potential cost savings and a reduction in headcount. The goal is to drive margin growth and increase the combined entity’s profitability.

Forbidden Foods is also using this acquisition to extend its distribution channels, leveraging OMG’s current network to expand the availability of complementary products in its portfolio. Additionally, the company plans to capitalize on Steve Smith’s popularity in India to further OMG’s international expansion.

Between July and September of 2024, OMG generated approximately AUD $364,000 in sales, signaling positive momentum. This revenue will be absorbed into Forbidden Foods’ books, further strengthening its financial standing as it gears up for continued growth.

Expert Insight: Navigating the Future of Plant-Based Beverages

According to market analysts, this acquisition comes at an opportune time as the global market for plant-based beverages continues to grow. It will allow Forbidden Foods to rapidly scale its operations by leveraging the combined strengths of both brands.

Given the increasing consumer demand for healthier, plant-based alternatives, this acquisition strengthens Forbidden Foods’ competitive position in the market. Their focus on clean ingredients and health benefits could make them a leader not just domestically, but also in international markets like India, where demand for oat milk is only just beginning to take off.

The strategic rationale for the acquisition is clear: Forbidden Foods is seeking to transform itself from a niche player to a dominant force in the non-dairy sector. The integration of OMG into Forbidden Foods’ operations will likely yield long-term benefits as the company looks to optimize its supply chain and expand its market presence globally.

Building a Stronger Future Together

As the two companies continue to integrate, the market will be watching closely to see how Forbidden Foods capitalizes on this acquisition. The immediate priority is the seamless integration of operations, but the company is also keen to continue exploring further acquisition opportunities in the plant-based and health food sectors.