• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Exclusives
    • Nutraceuticals
    • Markets
    • Health
    • Jobs
    • Events
    • Buyers' Guide
    • Showcases
    • More
  • Magazine
  • News
  • Exclusives
  • Nutraceuticals
  • Markets
  • Health
  • Jobs
  • Events
  • Buyers' Guide
  • Showcases
  • Current & Past Issues
    Features
    Columns
    Editorials
    Digital Edition
    Subscribe Now
    Advertise Now
    eNewsletter
    Editorial Guidelines
    Top Features
    Health Products Association - China Executive Director Reflects on Market Dynamics, Challenges

    Blood Sugar Management: Personalized Testing Drives Home The Need for Early Intervention

    New and Evolving Formulation Options Must Be Mindful of Blood Sugar Maintenance

    Tapping Functional Beverages to Meet Modern Wellness Needs

    Adaptogens: Where Ancient Remedies Meet Modern Wellness Products
    Breaking News
    Certifications, Approvals and Patents
    Exclusives
    Industry & Market News
    People
    Products
    Regulatory
    Research
    Supplier News
    Supplier Insights
    Live From Shows
    Top News
    Florida Food Products Acquires Javo

    Roquette Launches Nutralys Rice Protein

    New IADSA Chair Lauds Explorations of Supplementation in Healthcare Policy

    CTRL Launches Meal On-The-Go Bars

    GNC and RealEats Meal Delivery Partnership Expands Nationally
    Exclusives
    Blogs & Guest Articles
    Health E-Insights
    Area Code 420
    eBook
    Antioxidants
    Dairy-Based Ingredients
    Enzymes
    Fatty Acids
    Fiber & Carbohydrates
    Green Foods
    Herbs & Botanicals
    Marine Nutraceuticals
    Minerals
    Omega 3s
    Probiotics & Prebiotics
    Proteins, Peptides, Amino Acids
    Sweeteners
    Vitamins

    Roquette Launches Nutralys Rice Protein

    Upcycled Coffeeberry® Cascara Offers Versatility in Functional Beverage Development

    Study Reveals Low Intake of Tocotrienols in Polish Population

    Combination of Collagen and Boswellia Serrata Shown to Reduce Joint Discomfort

    Nutralliance Adds Eggshell-Derived Ingredients for Beauty and Joint Health to Portfolio
    Consumer Trends
    Contract Manufacturing
    Cosmeceuticals / Nutricosmetics
    Delivery & Dosage Technologies
    Dietary Supplements
    Flavors & Colors
    Functional Foods & Beverages
    Healthcare Trends
    Medical Nutrition
    Mergers & Acquisitions
    Natural/Organic
    Nutrition Bars
    Packaging
    Pet Nutraceuticals
    Quality & Safety
    Regulations
    Research
    Testing
    World Markets

    Florida Food Products Acquires Javo

    Roquette Launches Nutralys Rice Protein

    New IADSA Chair Lauds Explorations of Supplementation in Healthcare Policy

    CTRL Launches Meal On-The-Go Bars

    Upcycled Coffeeberry® Cascara Offers Versatility in Functional Beverage Development
    Bone & Joint Health
    Cancer Risk
    Cardiovascular Health
    Cognitive Function
    Diabetes & Blood Sugar Management
    Digestive Health
    Energy
    Eye Health
    Healthy Aging
    Immune Function
    Infant & Children's Health
    Inflammation
    Men's Health
    Mood Health & Sleep
    Oral Health
    Sexual & Reproductive Health
    Skin Health
    Sports Nutrition
    Weight Management/Weight Loss
    Women's Health

    Upcycled Coffeeberry® Cascara Offers Versatility in Functional Beverage Development

    Botanical Gum for Kids Aims to Curb Sugar Cravings

    Combination of Collagen and Boswellia Serrata Shown to Reduce Joint Discomfort

    Childhood Fitness and Obesity Impact Cognition Later in Life, Study Finds

    Nutralliance Adds Eggshell-Derived Ingredients for Beauty and Joint Health to Portfolio
    Industry Events
    Live From Show Events
    Webinars
    All Companies
    Categories
    Trade Associations
    Company Capabilities
    International Buyers Guide Companies
    Aiya America, Inc. (Aiya Matcha)

    Sabinsa Corporation

    Nutrition21, LLC

    Ecuadorian Rainforest

    Gencor
    Companies
    Product Releases
    News Releases
    Literature / Brochures
    White Papers
    Jobs
    VIdeos
    Services
    Add New Company
    International Buyers Guide Companies
    Aiya America, Inc. (Aiya Matcha)

    Sabinsa Corporation

    Nutrition21, LLC

    Ecuadorian Rainforest

    Gencor
    • Magazine
      • Current / Back Issue
      • Features
      • Editorial
      • Columns
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Buyers' Guide
      • All Companies
      • Categories
      • Trade Associations
      • Company Capabilities
    • Nutraceuticals
      • Antioxidants
      • Dairy-Based Ingredients
      • Enzymes
      • Fatty Acids
      • Fiber & Carbohydrates
      • Green Foods
      • Herbs & Botanicals
      • Marine Nutraceuticals
      • Minerals
      • Omega 3s
      • Probiotics & Prebiotics
      • Proteins, Peptides, Amino Acids
      • Sweeteners
      • Vitamins
    • Markets
      • Consumer Trends
      • Contract Manufacturing
      • Cosmeceuticals / Nutricosmetics
      • Delivery & Dosage Technologies
      • Dietary Supplements
      • Flavors & Colors
      • Functional Foods & Beverages
      • Healthcare Trends
      • Medical Nutrition
      • Mergers & Acquisitions
      • Natural/Organic
      • Nutrition Bars
      • Packaging
      • Pet Nutraceuticals
      • Quality & Safety
      • Regulations
      • Research
      • Testing
      • World Markets
    • Health
      • Bone & Joint Health
      • Cancer Risk
      • Cardiovascular Health
      • Cognitive Function
      • Diabetes & Blood Sugar Management
      • Digestive Health
      • Energy
      • Eye Health
      • Healthy Aging
      • Immune Function
      • Infant & Children's Health
      • Inflammation
      • Men's Health
      • Mood Health & Sleep
      • Oral Health
      • Sexual & Reproductive Health
      • Skin Health
      • Sports Nutrition
      • Weight Management/Weight Loss
      • Women's Health
    • Online Exclusives
    • Webinars
    • Slideshows
    • Blogs & Guest Articles
    • Health E-Insights
    • Videos
    • Podcasts
    • Infographics
    • eBook
    • Whitepapers
    • Research
      • TrendSense
      • Monograph Center
      • White Papers
      • Research News
    • Jobs
    • Events
      • Industry Events
      • Live From Show Events
      • Webinars
    • Supplier Showcases
      • Companies
      • Product Releases
      • News Releases
      • Literature / Brochures
      • White Papers
      • Jobs
      • VIdeos
      • Services
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Columns

    Word from Wall Street: Deal-Making Frenzy

    Reviewing three major deals sealed in the early part of this year to see where the market may be headed.

    Related CONTENT
    • Lang Pharma Nutrition Receives MSC’s 2021 U.S. Ocean Champion Award
    • Three Grams of Omega-3s May be Optimal Dose for Reducing Blood Pressure
    • Health Products Association - China Executive Director Reflects on Market Dynamics, Challenges
    • DSM and Firmenich to Merge to Create Nutrition, Beauty, and Wellness Brand
    • GC Rieber Foundations Expand Philanthropic Efforts
    Adam Ismail03.01.07

    Deal-Making Frenzy



    Reviewing three major deals sealed in the early part of this year to see where the market may be headed.



    ByAdam Ismail



    At least 11 deals in the nutrition industry were consummated in January—that’s nearly one for every other work day of the month! The deals ranged in scope from to buying into new niches, to buying out JV (joint venture) partners, to moving down the value chain. Three of them were notable because of their motivations and broader industry implications.

    Coca-Cola Acquires FUZE: This deal seems to continue the trend of small new-age beverage companies carving out new and unique positions in the beverage market, and then being bought by one of the giants like Coke or Pepsi when they hit a critical mass. The two companies already maintained a number of close ties—FUZE was already leveraging 20 different Coca-Cola bottlers—so cementing the deal seemed to make sense. In addition, Coke has publicly been trying to expand its presence in non-carbonated beverages for quite some time.

    The reason this deal is worth highlighting is because there are still many similar properties out there. What many of these smaller companies have been successful in doing is carving out their own unique niches. By segmenting the market really well, these companies are able to grow at a much faster rate. Visit any U.S. supermarket and you will still find a number of new-age brands in energy drinks, juice smoothies, tea fusion beverages, etc. Many of these use parts of the distribution networks of larger companies like Coke or Pepsi already, just like FUZE, and are potentially attractive buyout candidates.

    Danone Buys Out Calpis & Ajinomoto: This deal highlights the value in one of the highest growth areas in all of the food and nutrition market—functional dairy. Danone has long been a powerhouse in yogurts and other dairy products globally, but it formed the Calpis Ajinomoto Danone JV first with Ajinomoto, then adding Calpis to grow in the Japanese market. Ultimately this established the Danone brands in Japan. At the same time, healthy dairy has been growing at double-digit rates globally. For Danone, buying out its partners was essentially a means for them to buy a greater share of the rewards that the high growth in the dairy segment will bring. Asia is a key growth market for both Danone and dairy in general, so having this control will also help the company use its Japanese business to grow the rest of its Asian business.

    Austevoll Seafood Acquires EPAX: The EPAX transaction is notable because it is not the type of transaction typically seen in the nutraceuticals industry. Austevoll is a fish meal and crude fish oil manufacturer with facilities Norway, Chile and Peru—three of the major fish oil locales of the world. Its decision to buy EPAX, a refiner and manufacturer of fish oil concentrates, essentially allows it to capture greater value by moving further down the value chain. While most fish oil is used for aquaculture feeds, areas like human nutrition are more valuable on a per kilo basis. In buying EPAX, Austevoll is essentially paying to capture that extra margin. However, that is not the only source of value in this deal. Through the acquisition EPAX could actually gain greater supply chain security by aligning with a crude fish oil supplier. In those terms, the deal creates a win-win situation for both parties.


    Summary



    Usually this column focuses more on the financial aspects of deals, but given the pace of these deals in the early part of the year it is important to examine the strategies behind some of these transactions. These strategies may be indicative of larger trends in the market or continuation of existing trends. The FUZE deal indicates that there will likely be more acquisitions of a similar nature because there are still several companies with very similar properties out there. The Danone transaction shows one of the largest dairy companies in the world making an even bigger bet in areas like healthy yogurts and seeing strong growth in Asia. The EPAX deal shows the advantages that companies can gain from integration into new parts of the value chain and creating win-win scenarios in commodity markets.NW
    Related Searches
    • Healthcare Trends
    Related Knowledge Center
    • Healthcare Trends
    Suggested For You
    Lang Pharma Nutrition Receives MSC’s 2021 U.S. Ocean Champion Award Lang Pharma Nutrition Receives MSC’s 2021 U.S. Ocean Champion Award
    Three Grams of Omega-3s May be Optimal Dose for Reducing Blood Pressure Three Grams of Omega-3s May be Optimal Dose for Reducing Blood Pressure
    Health Products Association - China Executive Director Reflects on Market Dynamics, Challenges Health Products Association - China Executive Director Reflects on Market Dynamics, Challenges
    DSM and Firmenich to Merge to Create Nutrition, Beauty, and Wellness Brand DSM and Firmenich to Merge to Create Nutrition, Beauty, and Wellness Brand
    GC Rieber Foundations Expand Philanthropic Efforts  GC Rieber Foundations Expand Philanthropic Efforts
    GC Rieber VivoMega Announces Construction of New Facility GC Rieber VivoMega Announces Construction of New Facility
    Natural Products Expo West Returns: Product Spotlight Natural Products Expo West Returns: Product Spotlight
    Heeding the Call for a Sustainable Omega-3 Supply Heeding the Call for a Sustainable Omega-3 Supply
    Experts Discuss Emerging Omega-3s Research at GOED Exchange Experts Discuss Emerging Omega-3s Research at GOED Exchange
    Vitamin D and Omega-3s May Reduce Risk of Several Autoimmune Diseases, Study Finds Vitamin D and Omega-3s May Reduce Risk of Several Autoimmune Diseases, Study Finds
    Nutrasource Expands Facility to Meet Growing Demand for Certifications Nutrasource Expands Facility to Meet Growing Demand for Certifications
    Research Suggests Omega-3s from Plant Sources Convert Efficiently to DHA Research Suggests Omega-3s from Plant Sources Convert Efficiently to DHA
    Average Consumer Stops Buying Product When Price Hike Reaches 40%, New Survey Finds Average Consumer Stops Buying Product When Price Hike Reaches 40%, New Survey Finds
    GC Rieber VivoMega Plans to Continue Expansion of Omega-3 Capacity GC Rieber VivoMega Plans to Continue Expansion of Omega-3 Capacity
    AlgiSys Raising $45 Million to Address Demand for Microalgae-Based EPA AlgiSys Raising $45 Million to Address Demand for Microalgae-Based EPA

    Related Breaking News

    • Breaking News | Dietary Supplements | Omega-3s | Supplier News | World Markets
      Lang Pharma Nutrition Receives MSC’s 2021 U.S. Ocean Champion Award

      Lang Pharma Nutrition Receives MSC’s 2021 U.S. Ocean Champion Award

      The daughter company of Aker BioMarine provides over 70 Marine Stewardship Council-certified items.
      06.16.22

    • Cardiovascular Health | Dietary Supplements | Medical Nutrition | Omega-3s | Research
      Three Grams of Omega-3s May be Optimal Dose for Reducing Blood Pressure

      Three Grams of Omega-3s May be Optimal Dose for Reducing Blood Pressure

      A review of 71 studies found a dose-dependent relationship between omega-3s and blood pressure reductions, most significant for those with hypertension.
      06.13.22

    • Consumer Trends | Dietary Supplements | Healthcare Trends | Regulations | World Markets
      Health Products Association - China Executive Director Reflects on Market Dynamics, Challenges

      Health Products Association - China Executive Director Reflects on Market Dynamics, Challenges

      China’s supplement market is growing at double digit levels. Jeff Crowther has the market intel to assist companies in capitalizing on emerging opportunities.
      By Sean Moloughney, Editor 06.02.22


    • Breaking News | Dietary Supplements | Functional Foods & Beverages | Industry & Market News | Mergers & Acquisitions | World Markets
      DSM and Firmenich to Merge to Create Nutrition, Beauty, and Wellness Brand

      DSM and Firmenich to Merge to Create Nutrition, Beauty, and Wellness Brand

      The combined company’s global footprint will provide customers with both of the partners’ network of R&D, creation, and application capabilities.
      05.31.22

    • Breaking News | Omega-3s | Supplier News | World Markets
      GC Rieber Foundations Expand Philanthropic Efforts

      GC Rieber Foundations Expand Philanthropic Efforts

      The Foundations have increased ownership of the GC Rieber Group to almost 50%.
      05.24.22

    Loading, Please Wait..
    Trending
    • Three Grams Of Omega-3s May Be Optimal Dose For Reducing Blood Pressure
    • 3 grams of Omega-3s May be Optimal Dose for Reducing Blood Pressu
    • Olive/Pomegranate Extract May Improve Dyslipidemia
    Breaking News
    • Florida Food Products Acquires Javo
    • Roquette Launches Nutralys Rice Protein
    • New IADSA Chair Lauds Explorations of Supplementation in Healthcare Policy
    • CTRL Launches Meal On-The-Go Bars
    • GNC and RealEats Meal Delivery Partnership Expands Nationally
    View Breaking News >
    CURRENT ISSUE

    June 2022

    • Tapping Functional Beverages to Meet Modern Wellness Needs
    • Adaptogens: Where Ancient Remedies Meet Modern Wellness Products
    • New and Evolving Formulation Options Must Be Mindful of Blood Sugar Maintenance
    • Health Products Association - China Executive Director Reflects on Market Dynamics, Challenges
    • Blood Sugar Management: Personalized Testing Drives Home The Need for Early Intervention
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Florida Food Products Acquires Javo
    Roquette Launches Nutralys Rice Protein
    New IADSA Chair Lauds Explorations of Supplementation in Healthcare Policy
    Coatings World

    Latest Breaking News From Coatings World

    The Southern Society for Coatings Technology's 84th Annual Technical Conference A Success
    PPG to Showcase Specialty Automotive, Aerospace Adhesives, Sealants at Adhesives & Bonding Expo
    PPG’s New Paint for a New Start Initiative to Transform 25-plus Schools Worldwide
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    MPO's Most Read Stories This Week—June 25
    Magnetic Insight Announces $17 Million in Series B Funding
    BreatheSuite Adds Brad Fluegel to its Board
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Pierre Fabre and Lonza Enter Manufacturing Agreement
    MasterControl and Elemental Machines Form Biomanufacturing Partnership
    Qosina Strengthens Aseptic Capabilities
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Benefit Exec Joins Madison Reed's Board
    Peroni & Ellis Brooklyn Launch Fragrance Collection Inspired by Italian Spritz Cocktails
    Rhode Is Trending for June, Trendalytics Says
    Happi

    Latest Breaking News From Happi

    Spate’s Says The Skunk Stripe, Collagen Serum and Waterproof Eyeshadow Lead Summer Beauty Trends
    A Suitor Emerges for Revlon, SK Capital’s New Dealmaker & P&G’s Indoor Air Quality Efforts
    Wonder Curl Wins GlossWire's GlossPitch Competition
    Ink World

    Latest Breaking News From Ink World

    Weekly Recap: INX’s VC Fund, Screen Industry and Ball Top This Week’s News
    British Coatings Federation Posts Online History
    Orion Announces Price Increases, Reduced Payment Terms
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    PCMC teams with IGT, Fujifilm makes big announcement and more
    Loftware recognized as 'AIDC Company of the Year'
    Schreiner MediPharm highlights sustainability of Needle-Trap technology
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Weekly Recap: SWM and Neenah Introduce Mativ Inc., Avgol honored for Biotransformation Technology & More
    Tranzonic Names VP of Supply Chain
    Ontex Climate Action Targets Approved by Science-Based Targets Initiative
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    ODT's Most-Read Stories This Week—June 25
    3Spine Inc. Receives IDE Approval for U.S. Pivotal Clinical Trial
    Volume-Based Procurement to Reduce Chinese Orthopedic Market Value
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Weekly Recap: eMagin, Applied Materials, and Schott Top This Week’s Stories
    NREL Names Jennifer Logan to Leadership Team as CFO
    National Grid Renewables Orders 2 GW of First Solar Modules

    Copyright © 2022 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login