Nextfoods announces merger of GoodBelly and Cheribundi to create synergies in functional F&B

06 Apr 2023 --- Aiming to capture category and product synergies and focus on whole-foods based nutrition to seize functional and beverage trends, NextFoods, the parent company of gut health brand GoodBelly is merging with all-natural sports nutrition company Cheribundi.

“The goal of the merger is to deliver natural performance, specifically gut health and recovery, through exceptional products and brands that resonate with consumers looking for natural solutions to manage their health at a larger scale than before,” Marcel Bens, CEO of NextFoods, tells NutritionInsight.

“The companies also hope to achieve further growth in critical channels like e-commerce and sports, where Cheribundi, in particular, has seen significant growth – over 400 collegiate and professional teams have partnerships with the company.”

He adds that the merger will “leverage each team’s existing areas of strength to deliver on our combined mission of bringing natural performance solutions to as many consumers as possible.”

With the merger, the companies hope to achieve further growth in e-commerce and sports.Creating new synergies
As a combined entity with Cheribundi and GoodBelly, NextFoods will focus on growing its strategic channels, such as e-commerce. In this area, Cheribundi has seen a 120% annual growth.

“Brands are better off together – there is a significant trend of consolidation within consumer packaged foods and NextFoods is capitalizing on that trend with two strong brands with built-in audiences,” explains Bens.

“Working together helps brands reach scale faster, realize new synergies in toplines and costs and even make more attractive targets for exits.”

Bens explains that the merger will expand GoodBelly’s online presence and make its products available through Cheribundi’s professional and collegiate sports sales channels.

He continues, “As the functional food and beverage market continues to grow, the merger offers GoodBelly and Cheribundi the opportunity to achieve the scale that can support 20,000+ retail locations and grow e-commerce revenue while unlocking synergies.”

Strategic goals
Bens notes that the merger will build on the success of new Cheribundi concentrate products and expand the retail presence of this new line. Moreover, the consolidation will streamline the cost base and achieve the necessary scale to raise capital.

He adds that by unifying Cheribundi and GoodBelly sales efforts, the companies can “deliver more options for retailers looking to deliver on health and wellness for today’s shoppers across the juice, shots and supplements categories.”

“This merger comes when consumers are looking to move beyond lab-based, synthetic products to something that offers the same benefits naturally, thus positioning NextFoods as a leader in this movement.”

Unifying Cheribundi and GoodBelly sales efforts will help the companies deliver more options in juice, shots and supplements categories.He continues, “Cheribundi and GoodBelly are dedicated to providing natural products that offer scientifically-proven health benefits.”

“Adding Cheribundi to the NextFoods family is a significant step in both brands’ futures to foster the continuous improvement of functional food and beverages. We look forward to fueling the next evolution of innovation,” agrees Juan Gluth, CCO of NextFoods.

Meeting consumer demand
According to Andreas Guldin, managing partner and CEO of Emil Capital Partners (ECP), the largest investor in the combined entity, consumers continuously seek to support their health through the foods and beverages they consume.

“We are excited to bring together two talented, driven companies to execute on the vision of better-for-you and better-for-the-planet products that meet growing consumer demand.”

GoodBelly recently introduced a probiotic beverage and immune support line for children to promote wellness through gut health for all ages. The company also expanded its on-the-go offering with GoodBelly To Go Fast Melts, shelf-stable probiotic powders.

Cheribundi expanded its line of tart cherry products with its Concentrates line, which includes a pure tart concentrate with an immunity blend and a sleep blend so that consumers can use tart cherry juice’s benefits.

Innova Market Insights reported that from 2017-2021, sports nutrition launches grew by 10% annually in the US and 24% in Europe. Formulators are increasingly addressing a broader consumer base in personalized performance nutraceuticals, including mental health.

By Jolanda van Hal

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