Unilever continues to eye wellness with majority stake acquisition of Romanian food chain Good People
05 Jul 2019 --- Transnational consumer goods group Unilever is set to buy a 75 percent stake in the Romanian food chain Good People. The move needs approval by Romania’s competition authority before it can take effect, according to Good People, who is operating under the brand name FruFru. The move follows Unilever’s recent steps into the health and wellness sector, such as with its acquisition of OLLY Nutrition.
Good People Founder, Mihai Simiuc, will remain a shareholder and own a 25 percent stake if the deal is finalized. The transaction price will be set within 10 business days from the end of the month preceding the month in which all prior conditions in the contract have been met. However, considering the requirement to determine the final price after the signing the contract, there is no certainty that this contract will be implemented, Good People says.
Good people’s FruFru brand makes smoothies, salad bowls and soups with “healthful ingredients” and are available across the brand's store in Romania and it's retail partners.
Credit: FruFru instagram page @frufru.lovBack in March 2016, Good People raised 4.55 million lei (US$1.8 million) via the sale of five-year bonds on the Bucharest Stock Exchange. Shares of the company traded 0.24 percent lower at 103 lei on the AeRO market of the BVB as at 1222 CET on Thursday.
Also in March, Unilever stated that it had started to reduce its presence in kiosks in Romania as part of commitments it has taken to obtain clearance to buy local ice cream producer Betty Ice. The Romanian competition authority conditionally approved the takeover in November 2018. Unilever and Betty Ice signed the sale and purchase agreement at the end of January 2018.
Unilever’s expansive tactics into wellness
Unilever is increasingly strengthening its position into the health and wellness sector. The company recently acquired OLLY Nutrition, boosting both its Beauty & Personal Care and its Foods & Refreshment businesses.
The move indicates that the transnational company is banking on the health and wellness trend and the popularity of supplements and functional foods among an increasingly health-seeking society. The US-based brand offers gummy vitamins and supplements, but also sells protein powders and snack bars. From functional foods to supplements that boost wellness and beauty, the brand touts itself as making nutrition “delightfully easy.”
Last month, Unilever also announced it is set to acquire prestige skincare brand Tatcha for a reported US$500 million. Founded in 2009 in San Francisco by start-up entrepreneur Victoria Tsai, Tatcha is a modern skincare brand rooted in classical Kyoto beauty rituals. The brand is distributed through premium retailers predominantly in the US and has a strong social media and digital presence. Although further terms of the deal were not disclosed, the transaction is expected to close in Q3 2019 following the recent signing of an agreement.
Furthermore, in March, the company made a binding offer to acquire French derma-cosmetic brand Garancia, which is to be part of the Unilever Prestige personal care portfolio. Financial details of the offer remain confidential.
Edited by Kristiana Lalou
