Europe Snacks, UK and France’s Kolak Food Snacks Ltd announced a US$276M merger to create one of the largest private label savoury snack companies in Europe.

“The newly formed group generates revenues of some €250M and produces over 1.4bn packs annually across 750 product types,” said Kolak on 10 October. “It partners with 200 retail and discount customers across Europe and beyond.”

Christophe Fenart, CEO of the new group said: ‘”By bringing together [the two companies], we are moving towards our goal to become the pan-European partner of choice for our customer’s brands, driving innovation across a full range of crisps and snacks.”

Kolak specialises in own label manufacturing, offering an extensive range of potato crisps, hand cooked crisps, extruded, fried and popped snacks, popcorn and stacked chips. It operates two production sites close to London and employs over 1,000 people.

Europe Snacks is a key player in the French own-brand savoury snacks market and the leading own-label stacked chips manufacturer. A specialist in extruded technologies, stacked chips, crackers and popped snacks, the company has four production sites in the west of France and employs over 400 people.

Both companies will continue to operate under their established brand names.

Global AgInvesting said the global savoury snack market was valued at US$94.5bn in 2015 and was forecast to reach a compounded annual growth rate (CAGR) of 7.9% between 2015 and 2020, according to the Global 2016 Savoury Snacks Market Report.

“The market is highly fragmented, with the top five brands holding less than a 16% share of the market, giving room to smaller players to gain a greater presence.”