Sweets from the Earth (SFTE) has snapped up the production and distribution rights in Canada for US dairy-free brand Tofutti.
SFTE, the Canadian plant-based and allergen-friendly bakery, did not reveal the financial terms of the deal, which is expected to close on 27 June.
The Ontario-based baker will takeover the rights for the Tofutti brand in nine Canadian provinces and three territories from Tofutti's Canadian branch, Tofutti-Cholac Foods.
Distribution of Tofutti in Quebec will still be managed by a local company because of "legacy arrangements", Sweets from the Earth told Just Food.
All of Tofutti's Canadian operations formerly managed by Tofutti-Cholac Foods at a facility in Barrie, Ontario, "will be merged into SFTE operations", the dairy-free baker said.
It added: "There are no plans to change the current manufacturing relationships."
Commenting on the news in a statement, Ian Hawes, president of Tofutti-Cholac Foods, said the upcoming transaction would “be seamless, ensuring continuous availability of products at retail locations and through online platforms".
Set up in 1981 in Manhattan, Tofutti (now headquartered in New Jersey), produces a range of plant-based cream cheese, dips, sour creams and desserts for retail and foodservice.
As well as Canada, the company's markets include the US, Australia, Israel, Mexico and Panama, among others.
Distribution and production of Tofutti products in the US will not be affected by the transaction, SFTE confirmed.
In the statement, SFTE said the move would help it "expand Sweets from the Earth's product portfolio and enhance its presence" in the Canadian plant-based market.
The group also told Just Food: "In addition to expanding distribution, we are excited to introduce new products under the Tofutti brand in the future.
"With a deep understanding of the Canadian market, we aim to introduce innovative offerings that resonate with local tastes and preferences. This includes exploring new flavours, products and formats."
Though SFTE currently focuses on sweet plant-based foods, it told Just Food that it planned to keep producing Tofutti's dairy-free sweet and savoury range "like the Cuties ice cream sandwiches and dairy-free sour cream".
Founded in 2002, Toronto-headquartered Sweets from the Earth manufactures allergen-friendly and sugar-free sweet bakery items, such as muffins, loaves, bars, cookies and cakes. These are sold across Canada, the US and Middle East to the retail and foodservice channels.
Its portfolio includes First Food Organics, Kool for School and Shockingly Healthy.
Last year, the group also snapped up gluten-free biscotti brand Tutti Gourmet for an unknown sum. That company operates two manufacturing facilities, one for nut-free products and the other for gluten- and wheat-free goods in northern Toronto.
Commenting on the news, vice president and co-CEO of Sweets from the Earth, Marc Kadonoff, said the company was "excited to expand Tofutti’s exceptional products within the Canadian market by leveraging the Sweets from the Earth distribution network".
