Surya Foods is eyeing a bigger presence in snacks with the acquisition of a "major" stake in fellow UK business Karma Bites.
A supplier of world cuisine, Surya Foods' best-known branded products include Laila rice and Thai Dragon condiments.
The company's range also includes snack brands such as Kingston's. Surya Foods' snacks lines include prawn crackers and corn puffs. It sees the deal with Karma Bites as a way to tap into demand for healthier products.
London-based Karma Bites is a business centred on a range of popped lotus seeds.
The terms of the transaction were not disclosed and Surya Foods declined to comment on the size of the shareholding it owns in Karma Bites.
Surya Foods told Just Food it "co-owns" Karma Bites with its founder Ashwin Ahuja.
In a statement, Surya Foods group CEO Harry Dulai said the deal “aligns well” with the company’s plans to expand its snacking portfolio. The company has "several new launches" planned for next year, he added.
Karma Bites offers a range of vegan, gluten-free, non-GMO snacks available in five flavours: Himalayan pink salt, peri-peri, wasabi, caramel and coconut & vanilla.
Its products are available at retailers in the UK including Tesco, Ocado and Whole Foods Market. The company also has listings in the US and Australia.
Karma Bites founder Ashwin Ahuja said: “Working alongside Surya Foods, my aspiration is to take Karma Bites on the next big step of its journey – to scale up production, distribution, enter multiple markets and expand the range.
“The superfood credentials of lotus seeds have helped the product take off in health-conscious markets across Australia and the US. The UK market generally follows these trends and there is a definite shift here in people understanding how their food choices impact their health.
Surya Foods entered the snacking market in 2020 by investing £2m ($2.5m) in a “state of the art” snack factory at its Harwich location.
The company is further expanding its Harwich site, expecting to create 200 new jobs in Essex over the next three years.
A new 40-acre head office and distribution centre is set to open by 2026.
Surya Foods claims to supply nearly “half of the UK's branded dry rice” through brands such as Laila, Salaam and Mai Thai.
