The Hamburg founders of Ankerkraut founded their spice company ten years ago. Now the Nestlé group has acquired a majority stake.
(Photo: Ankerkraut)
Dusseldorf, Zurich Two years ago, Stefan Lemcke, founder of the Hamburg spice start-up Ankerkraut, was still dreaming of going public. That is now unnecessary. With Nestlé, the world’s largest consumer goods manufacturer now has a majority stake in Ankerkraut, as both companies announced on Wednesday.
Details of the purchase price and shares were not given. According to media reports, the Swiss group will hold around 85 percent of Ankerkraut in the future – after approval by the antitrust authorities.
“For us, this step is a great opportunity because we want to continue to drive our growth and professionalization,” said Stefan and Anne Lemcke in a statement. Most recently, the founding couple held 51 percent of Ankerkraut. The Lemckes and the management will remain shareholders, the existing management team will continue to run the business independently. The founders, in their early 40s, remain on board as brand ambassadors.
The spice company, which was founded ten years ago, became known through its participation in the start-up TV show “Die Höhle der Löwen”. In 2016, juror Frank Thelen invested 300,000 euros and received 20 percent of the shares. For Thelen, whose investment company Freigeist Capital is now selling all its shares in Nestlé, it was probably one of his most lucrative deals.
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In any case, co-investor EMZ Partners, who had already paid several million euros for a similar share in 2020, was very satisfied with his exit. The investment has more than doubled, EMZ Partners announced – less than two years after investing in September 2020. Investor Knälmann Ventures has also sold its shares in Nestlé.
“We are both convinced that we can learn a lot from each other and bring the best of both worlds together. For example, how brands are built, trends are picked up on and innovations are created,” said Marc Boersch, head of Nestlé Germany.
Premium spices to complement Maggi
Ankerkraut complements Nestlé’s brand portfolio with a line of higher-priced spices. So far, the Swiss have been represented with their traditional Maggi brand mainly in spice mixtures and liquid spices in the lower price segment as well as in ready meals. However, the acquisition fits into CEO Mark Schneider’s strategy of buying premium brands that promise higher margins.
Also typical of Nestlé’s acquisitions is keeping the management team of young brands on board. Sanjay Bahadur, who is responsible for the strategy for takeovers at the group, recently told the Handelsblatt: “We don’t want to lose any talent when we make acquisitions.”
This is crucial for successful integration. The founding couple Lemcke, on the other hand, expect not only Nestlé’s market and sales knowledge but also support with culinary expertise.
>> Read also: “Think bigger!” Nestlé boss Mark Schneider is turning the food giant upside down in a hurry
Start-ups have shaken up the outdated market for spices. The industry leader is by far the family company Fuchs from Dissen, to which the Ostmann brand also belongs. The group had a turnover of around 557 million euros in 2020. “Only the newcomers Ankerkraut and Just Spices succeeded in revitalizing this market and reaching a young target group,” said Werner Motyka, partner at the Munich Strategy consultancy, in December.
In December 2021, the US group Kraft Heinz acquired 85 percent of the Düsseldorf spice start-up.
(Photo: obs)
At that time, Kraft Heinz held a majority stake in Just Spices. The US food company took over 85 percent of the Düsseldorf start-up, which now has 180 employees, from previous investors. In 2021, sales should double to around 60 million euros compared to the previous year. Just Spices was not yet profitable, at least in 2019.
Ankerkraut is different – according to their own statements, the Hamburgers have been in the black since 2014. According to the “Lebensmittelzeitung”, the spice specialist with more than 230 employees recently had annual sales of around 40 million euros. In Germany, this should increase to 100 million euros in five years.
Stefan Lemcke has always had a soft spot for exotic spices from Africa and Asia. Since its inception, Ankerkraut spices have been sold in glass bottles with cork stoppers. There are also sauces and teas. The Lemckes put the first spice advent calendars in their living room in 2013. “They were exhausting years,” said Stefan Lemcke once.
Ankerkraut makes half of its sales online and half in brick-and-mortar retail in Germany and Austria. In this country there are five own shops. Nestlé also wants to benefit from Ankerkraut’s expertise in direct sales: the group wants to expand this sales channel.
But the management teams of acquired brands also have to deliver. Nestlé’s clear statement is: “The companies must create added value for shareholders over a period of five to seven years.”
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