Nestlé Health Science snaps up collagen player Vital Proteins
11 Jun 2020 --- Nestlé Health Science (NHSc) is acquiring the majority stake in Vital Proteins, a key US collagen player featuring a lifestyle and wellness platform offering supplements, beverages and food products. The move seeks to scale up Vital Proteins’ reach and innovation by employing “a variety of resources” provided by NHSc. The two companies signed the respective agreements on June 10 for the partial acquisition, which is subject to customary regulatory approval. Financial details of the sale have not been disclosed.
Vital Proteins will continue to operate as a standalone business – remaining committed to its founding mission of helping people live healthier lives through high quality, sustainably-sourced collagen nutrition.
“This is an opportunity for Nestlé Health Science to enter a growing area of nutrition,” says Greg Behar, CEO of NHSc. “Our companies share the belief that nothing is more important than health, and everything we do is focused on it. In combining our efforts to optimize health through nutrition, we can achieve even more to help our consumers live fuller, more vibrant lives.”
“This is an opportunity for Nestlé Health Science to enter a growing area of nutrition,” says Greg Behar, CEO of NHSc. “Vital Proteins, alongside Nestlé, is committed to expanding our wellness platform to the world. We are partnering together to continue the evolution of the functional nutrition space through premium products and innovation that meet customers where they are in their wellness journey.” notes Kurt Seidensticker, Founder and CEO of Vital Proteins.
“Joining NHSc allows us to take Vital Proteins to the next level by leveraging resources, scale and capabilities, and moving toward a future with an expanded offering of science-backed products,” he adds.
Seidensticker will continue to lead Vital Proteins from its headquarters in Chicago, US. Vital Proteins complements NHSc’s other vitamin, mineral, supplement and wellness brands, Garden of Life, Pure Encapsulations and Persona, each with a unique area of specialty and focus.
NHSc notes that collagen is the most abundant protein found in the body, representing nearly 30 percent of all human protein content and 70 percent of the protein content found in the skin. It is a key component of connective tissues, supporting the health of skin, hair, nails, bones and joints. Collagen production in the body starts to decline at about age 25, thus making collagen supplementation fundamental to wellness and longevity. Hence, investing in this space may be grounds for a flurry of innovation.
Vital Proteins has 150 SKUs across 35,000 retail doors in North America and Europe, including Whole Foods, Costco, Target, Walgreens and Kroger. This will be the first acquisition of a collagen-based wellness company to date, proving that consumer mindsets are shifting toward bettering one’s personal well-being.
NHSc constant expansive strategy
After last year’s acquisition of personalized nutrition service Persona, NHSc continues to include more players in its portfolio, broadening its capabilities. Persona recently added Tru Niagen to its portfolio. The supplement is a nicotinamide riboside supplement and US supplier ChromaDex Corp’s flagship ingredient.
NHSc has been ramping up its investments in recent months. The company also made yet another partnership with biotechnology company Valbiotis for the development and global commercialization of Totum-63. The patented combination of five plant extracts specifically designed to reduce the risk of developing type 2 diabetes in prediabetics. Moreover, NHSc is poised to make an additional equity investment of US$200 million in food allergy solutions specialist Aimmune following US Food and Drug Administration (FDA) approval for its peanut therapy.
Atrium Innovations, another NHSc company, recently acquired technology-based functional medicine platform LivingMatrix in a bid to further bolster its position in the personalized nutrition space. LivingMatrix is data and algorithm-driven and was designed by clinicians to help practitioners effectively evaluate and engage patients, create personalized, actionable care plans and track patient health outcomes. NHSc also invested in Before Brands, specialists in early childhood food allergy prevention, to forward initiatives to prevent rising allergy rates.
In 2018, NHSc opened a new US$70 million R&D facility in New Jersey, US, in an effort to establish a global hotspot to reinforce the company’s nutritional expertise.
By Kristiana Lalou
