Giellepi hones raw material sector following sale of finished products to Biofarma
17 Jan 2022 --- Following Biofarma Group’s acquisition of Giellepi’s finished products division, Giellepi is focusing on developing its raw materials business. CEO Carlo Terruzzi speaks to NutritionInsight about what’s in store for the Italy-based supplier, including investment plans and the shifting prices of nutraceuticals.
Notably, Giellepi now aims to organize the distribution of its branded ingredients in a more effective and efficient way.
“We will invest resources in the enhancement of the company organizational structure, adding more people in sales and marketing departments,” explains Terruzzi.
“Moreover, we’ll adopt the same successful business model used for the finished products based on innovation and proprietary clinical studies for the demonstration of health benefits.”
The company is also investing in the development of branded natural ingredients supported by science.
According to Terruzzi, these investments will also promote a growth process for external lines. He elaborates that this could mean the acquisition of companies involved in the production of raw materials for the nutraceutical and functional food industries.
Giellepi aims to become a reference point for the nutraceutical market in terms of quality, innovation and science.
Embarking on customer-supplier relationship
The acquisition was through a business unit transfer operation. The financial terms have not been disclosed, but Terruzzi shares that the finished products division had contributed 60% to Giellepi’s total turnover.
Giellepi will maintain its current corporate structure and managerial company organization, while Terruzzi will maintain his position as CEOwithin the finished products division, which is now renamed International Health Science. He says this will give continuity to a business model that has proven successful over the years.
However, he characterizes the future connection between Giellepi and International Health Science as a standard customer-supplier relationship.
Biofarma consolidates its presence
International Health Science specializes in the development of food supplements and medical solutions that can then be licensed to prominent corporations.
Biofarma says the acquisition will allow it to consolidate its presence on the international scene with ready-to-market products, complete with clinical studies.
With International Health Science, Biofarma now plans to promote the critical relationship between the scientific world, research and industrial sector.
It will also strengthen its R&D, regulatory and commercial divisions with new specific skills related to medical devices for the European and Asian markets.
Maurizio Castorina, current CEO of Biofarma, together with the other managers of the group, will sit on the board of directors of International Health Science and will lead the division’s activities in coordination with the strategic management of the entire group.
Giellepi’s finished products division has been renamed International Health Science.
Navigating supply challenges
Reflecting on Giellepi’s 20-plus years of business, Terruzzi says the company has achieved “exceptional” results from an organizational and economic point of view.
“However, the time has come to make the two company’s activities independent so that even more extraordinary results can be achieved for both business units.”
Many nutrition players have seen a rocky few years as factors like the COVID-19 pandemic rock supply chains. However, Terruzzi says that Giellepi experienced only minor supply chain issues.
“This is because we have an extensive network of well-trusted suppliers and partners that supported us in the best way.”
Looking ahead at 2022, he highlights the impact of global inflation. “We expect that prices of nutraceuticals and supplements will rise at a fast rate, forcing consumers to be more selective in their purchases.”
By Katherine Durrell
