REAL Cookies Merges with Creations Foods

On Apr 17, 2026, REAL Cookies co-founders Lauren Berger and Marla Felton confirmed a merger with Creations Foods in an interview on Bloomberg Businessweek Daily, signaling consolidation in the better-for-you (BFY) snack segment. The conversation — published by Bloomberg on Apr 17, 2026 — framed the transaction as a strategic move to scale distribution and combine product development capabilities in a market experiencing accelerated consumer preference for functional and ingredient-driven snacks (Bloomberg, Apr 17, 2026). While neither party disclosed deal value in the interview, the announcement underscores an escalation in M&A activity among specialty snack brands pursuing national shelf presence and manufacturing scale. For institutional investors tracking the consumer staples and branded food supply chain, the deal merits scrutiny on SKU rationalization, cost synergies, and potential shifts in channel mix from direct-to-consumer toward retail and foodservice. This piece provides a data-driven evaluation of the transaction context, the available market metrics, and implications for category competition and private-label pressure.

Context

The REAL Cookies–Creations Foods transaction comes at a point of structural change in the snacks market. According to market research firm Euromonitor (2024 estimate), the global packaged snacks market exceeded $370 billion in 2024, with the ‘better-for-you’ subsegment growing faster than legacy indulgent categories. Bloomberg's Apr 17, 2026 briefing with Berger and Felton highlighted that the merger is intended to address scale constraints — a frequent bottleneck for challenger brands — by leveraging Creations Foods' manufacturing and distribution footprint (Bloomberg, Apr 17, 2026). For investors, the crucial contextual question is whether the combined entity can convert brand equity into sustained retail velocity without eroding margin through promotional dependency.

The U.S. BFY snack category has reported above-average growth in recent years; industry trackers such as NielsenIQ reported an approximate mid-single-digit to high-single-digit YoY growth rate for healthier snack formats in 2024–25, outpacing the broader grocery sector (NielsenIQ, 2025 data). That relative growth has attracted private-equity interest and trade buyers looking to consolidate scaleable niche brands into platform investments. The merger mirrors a recurring private-label and platform consolidation trend observed across packaged foods in 2022–25, where acquiring manufacturing capability was as strategically valuable as acquiring brands themselves.

Operationally, mergers in this space typically intend to deliver three measurable benefits: expanded retail doors (distribution), lower per-unit COGS via higher run-rates, and accelerated NPD (new product development) cycles by combining R&D and ingredient sourcing. Berger and Felton emphasized distribution and product pipeline as drivers in the Bloomberg interview, which aligns with the common playbook. Investors should therefore evaluate post-close KPIs such as sales per distribution point, promo rate as a percent of sales, and gross margin trajectory over the first 12–18 months.

Data Deep Dive

Three discrete, verifiable data points anchor the current discussion: the interview date (Apr 17, 2026) and source (Bloomberg Businessweek Daily), the identity of the principals (co-founders Lauren Berger and Marla Felton), and broader market growth indicators cited by industry sources. The Bloomberg video (Apr 17, 2026) is the primary source for direct management commentary; any numerical claims made by founders in that interview should be treated as company statements requiring third-party corroboration. Euromonitor's 2024 estimate of the global packaged snacks market at approximately $370bn provides scale context for the opportunity set, while NielsenIQ's 2025 category tracking indicates BFY snacks growing at a mid-to-high single-digit pace year-over-year versus low-single-digit growth for total grocery.

Comparative metrics are instructive. For example, a challenger brand typically posts higher gross margins on DTC channels (often 60–70% gross margin on DTC before fulfillment costs) but sacrifices margin when migrating to retail due to slotting fees and trade promotions (margin compression can be 800–1,500 basis points vs. DTC). By contrast, established incumbents in the snack segment that operate national supply chains typically report gross margins in the mid-30% range but achieve scale and lower volatility in promotional cadence. The merger's success will therefore depend on whether combined margins converge toward incumbent levels while preserving brand-specific pricing power.

Another data lens is capital intensity. Manufacturing footprint expansion or integration can require capital expenditure and working capital increases; historical comparables in CPG platform roll-ups suggest integration capex in the first 12 months can range from low single-digit to double-digit millions depending on asset retooling needs. Management commentary in the Bloomberg segment suggested a focus on supply-chain consolidation rather than greenfield buildouts, which, if accurate, would lower near-term capex demands but may involve one-time integration costs.

Sector Implications

The deal has several implications for category dynamics and incumbent strategies. First, increased consolidation among BFY brands tends to compress product differentiation over time as supply constraints ease and formulation convergence occurs. If REAL Cookies and Creations Foods target broader retail penetration, they will enter direct competitive overlap with both national branded incumbents and private-label alternatives sold through major grocers. Private-label pressure remains material: retailers have expanded better-for-you private-brand assortments, often with price points 10–25% below branded alternatives, eroding shelf share for challenger brands.

Second, the merger could accelerate shelf rationalization within category adjacencies — retailers operate limited facings and will optimize SKUs by velocity. Institutional investors should expect SKU pruning and potential short-term dips in revenue-per-store as the combined company rationalizes SKUs to avoid internal competition. Over the medium term, successful integration could convert higher-cost DTC revenue into lower-cost, higher-volume retail revenue — a trade-off that changes revenue composition and margin profiles relative to pre-merger baselines.

Third, consolidation affects M&A comparables and exit valuations. Platform buyers often price deals by applying a revenue multiple adjusted for gross margin and distribution reach; enhanced distribution and manufacturing capability typically justify higher enterprise multiples in competitive M&A processes. For prospective acquirers or minority investors, the question will be whether the merger demonstrates tangible synergy realization (measured by combined EBITDA margin improvement and stable or rising top-line growth) within 12–24 months.

Risk Assessment

Key risks to the thesis include execution risk on integration, the danger of brand dilution, and channel conflict. Integration missteps — from IT systems to salesforce alignment — can materially delay expected synergies and elevate operating costs. The founders' public commentary on Apr 17, 2026 (Bloomberg) signaled intent but did not quantify integration timelines; without transparent, measurable integration targets, investors face higher uncertainty on value realization. Historical CPG roll-ups indicate that 30–50% of projected synergies are often delayed beyond the initial fiscal year if integration governance is weak.

Brand risk is also non-trivial. REAL Cookies built brand equity on product attributes and consumer trust; shifting production or ingredients to achieve scale can provoke consumer backlash if quality or messaging is perceived as compromised. Channel conflict poses a different operational risk: expanding into grocery can cannibalize higher-margin DTC sales if pricing and assortment are not managed carefully. Monitoring changes in customer acquisition costs, repeat purchase rates, and net promoter scores post-integration will provide early warning signals on brand health.

Macro and input-cost risks also apply. Commodity inflation for key ingredients (nuts, oats, plant proteins) and freight cost volatility can compress margins; given the timing of the deal, the combined company will face the 2026 purchasing environment that includes lingering logistics normalization post-pandemic and variable agricultural yields. Hedge strategies and longer-term supplier contracts can mitigate but not eliminate this exposure.

Outlook

Near-term, expect the market to view the merger as incremental for sector consolidation rather than a transformative macro event; trading reaction for listed peers in the branded snacks space is likely to be muted unless the deal reveals material financials. Over 12–24 months, performance indicators to watch include distribution gains measured in incremental retail doors, gross margin stabilization, and the evolution of promotional spend as a percentage of revenue. If the combined entity reports distribution expansion of several thousand doors and narrows promotional spend, that will support a constructive re-rating vs. pre-merger private benchmarks.

From a valuation lens, successful integration that converts DTC customers into recurring, repeat retail buyers could justify multiple expansion among strategic acquirers who prioritize distribution and manufacturing scalability. Conversely, failure to convert DTC-to-retail without margin preservation could necessitate cost-focused restructuring and reduce exit valuations. Institutional investors should therefore demand quarterly disclosure on distribution metrics and integration milestones, and use comparable transactions from 2022–25 as sensitivity cases when modeling potential outcomes.

Fazen Markets Perspective

Fazen Markets sees this merger as emblematic of a second wave of consolidation in branded healthy snacking, where acquirers prioritize manufacturing and distribution assets as much as brand loyalty. A contrarian insight is that scale alone will not guarantee premium multiples; the marginal value lies in preserving product trust while compressing COGS without triggering price sensitivity. In our view, the optimal outcome for the combined company is a calibrated two-track strategy: protect high-margin direct channels and selectively expand into retail with differentiated SKUs to avoid commoditization against private label.

We also highlight a less obvious risk-return asymmetry: smaller acquirers have historically overestimated the revenue pickup from retail placements in the first post-close year. Realistic modeling should assume a conservative 40–60% realization of projected incremental retail sales in year one, ramping toward full run-rate in 24–36 months depending on slotting and promotional dynamics. Investors who model that glidepath conservatively and stress-test margin assumptions will be better positioned to assess the deal's impact on enterprise value.

For further context on category consolidation and related transaction comparables, see Fazen Markets' broader coverage of CPG platform deals and shelf-space economics at topic. Our prior research on scale dynamics in branded food companies is available here: topic.

Bottom Line

The REAL Cookies–Creations Foods merger is a strategic consolidation aimed at solving distribution and manufacturing constraints in the BFY snacks segment; measurable integration milestones will determine whether the deal creates durable shareholder value. Investors should prioritize monitorable KPIs — distribution growth, promotional rate, and gross-margin trajectory — over headline brand narratives.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.