TopGum lands multi-million investment to expand its gummy supplement reach
10 Nov 2020 --- TopGum Industries, a functional gummy supplement manufacturer for nutraceutical marketers, has secured a multi-million dollar investment from Israel-based AP Partners Fund.
“AP Partners is an Israeli private equity fund, which invests US$10 to US$50 million in small and medium sized companies to become a major shareholder,” Amichai Bar-Nir, CEO of TopGum, tells NutritionInsight.
However, the company has not disclosed the exact amount of the investment.
US and EU focus
This injection will accelerate growth and expand production capacity, R&D and marketing activities to North America and Europe in 2021 for the supplements company.
In the last 12 months, TopGum started preliminary sales in the US and EU. “The investment allows us to increase capacity significantly,” highlights Bar-Nir.
“As part of the Israeli FoodTech ecosystem, TopGum is looking to innovate this popular delivery form, supporting our customers assiduously to stand up in the crowd with differentiated, high-quality products.”
The US and EU are the leading dietary supplements markets, he explains. TopGum’s line of products is mainly designed to meet consumers’ desire for great taste and aroma together with extended shelf life.
“At the same time, we are building partnerships with leading brands in APAC too, in order to meet their specific demands,” Bar-Nir adds.
TopGum Industries has secured a multi-million dollar investment from AP Partners Fund. TopGum has different versions of its line of products to fit different geographic requirements, including regional flavor trends. They are also varied to be in compliance with region-specific regulations.
Pleasant delivery formats for supplements
According to Bar-Nir, gummies are changing supplement consumption, making it a more enjoyable and fun experience. Therefore he expects further growth for the segment.
“The gummy supplements market is enjoying two digit growth and is expected to continue in coming years, extending to new geographical locations and market segments,” he notes.
Gummies have become a mainstay of nutritional delivery formats in recent years and the sector is also embracing other confectionery-adjacent forms, with chocolate coming to the fore. In this space, Mybite Vitamins offers multivitamins with an indulgent chocolatey coating, caramel, nuts and a fluffy center.
Gummy supplements rise in popularity
TopGum entered the Israeli confectionery market in 2004 and rose to become a leading gummy confectionery producer within a few years. In 2019, TopGum launched its functional gummy supplements portfolio.
While the advantages of gummy supplements, such as improved taste and avoiding pill fatigue, in comparison to other delivery forms drive the category’s growth, manufacturing high-quality gummies with extended shelf life and attractive flavor is a significant challenge.
Using proprietary technology, TopGum has overcome those challenges, while implementing high food-tech capabilities to further improve functional gummies.
AP Partners involvement in the company
AP Partners Fund, a private equity fund, focuses on product-oriented enterprises with high growth prospective. Hagai Stadler, founding partner of AP Partners and the former CEO of Algatech (a producer of active ingredients delivered from microalgae) will act as Chairman of the Board for TopGum.
“As a major partner at TopGum, we will take part in its journey to become one of the leading gummy-based supplement producers,” states Stadler.
”We were impressed by the company’s vision to provide clean-label, innovative gummy supplements with superior flavor, which will advance gummy formulations. AP Partners will work closely with TopGum management to unlock the vast potential of its innovative product line and stimulate growth,” he adds.
By Kristiana Lalou, with additional reporting by Katherine Durrell
