Nestlé Health Science cites “opportunities for growth” as US$5.75B acquisition of The Bountiful Company closes
10 Aug 2021 --- Nestlé Health Science (NHSc) has completed its acquisition of The Bountiful Company’s core brands, which include Nature’s Bounty, Solgar, Osteo Bi-Flex, Puritan’s Pride, Ester-C and Sundown.
“The brands that we have acquired are strong performers and complement our existing portfolio,” Jacquelyn Campo, NHSc’s senior director of global corporate communications, tells NutritionInsight.
The health care giant says the deal, which was first announced in April, positions it as an industry leader in vitamins, minerals, herbals and supplements (VMHS) in mass retail, specialty retail, e-commerce and direct-to-consumer in the US. It is expected to facilitate new product launches while opening sales channels around the world.
“In terms of sales channels, with the acquisition, we now have access to a fast-growing channel in VMHS, namely Food, Drug, Mass and Club, where we have a limited presence today, as well as direct-to-consumer,” explains Campo.
She also sees “significant” opportunities for geographic growth. “NHSc has had great success in helping our other acquired businesses gain a global audience, such as Garden of Life, Vital Proteins, Pure Encapsulations and Persona, and we’re excited about doing the same for our newly acquired brands.”
Filling key gaps
Greg Behar, NHSc’s CEO, also says that the acquisition gives it a broader range of trusted products and more ways to enhance the health of global customers.
“More people around the world are taking charge of their health, looking to VMHS to fill gaps or provide extra support,” he adds.
Innova Market Insights reports that Immune Health is the most popular positioning for supplements launched globally between 2016 and 2020. This is followed by Brain/Mood Health and Digestive/Liver Health.
However, Energy & Stamina is the fastest growing positioning, with a CAGR of 15 percent. This is closely followed by Skin Health and Joint Health, which both have 14 percent average annual growth.
The deal includes The Bountiful Company’s core brands.
A business as usual approach
The acquisition is bringing four thousand new employees into NHSc’s fold. Additionally, Don Kerrigan, president of North America for The Bountiful Company, will be joining NHSc as the company’s new CEO of VMHS Health US, reporting to Greg Behar.
NHSc is taking a “measured approach” to integrating The Bountiful Company brands. “We now have leadership teams in place and are moving toward one unified organization,” notes Campo.
NHSc’s goal is integration with minimal disruption so it’s generally “business as usual.” For now, The Bountiful Company branding will still appear on products.
Business booms
The US$5.75 billion acquisition does not include The Bountiful Company’s brands that do not complete the NHSc portfolio, such as Pure Protein. Last month, the brand rolled out chilled protein bars.
The acquisition price is especially hefty in comparison to NHSc’s 2018 acquisition of Atrium Innovations and its brands, including Garden of Life and Pure Encapsulations, for US$2.3 billion.
Last August, it acquired Aimmune Therapeutics, a biopharmaceutical company developing treatments for life-threatening food allergies, for US$2.6 billion.
Nestlé’s 2020 full-year results revealed that the COVID-19 pandemic did not slow down business, with NHSc growing at a double-digit rate specifically. This reflected higher demand for products that support health and the immune system.
By Katherine Durrell
